Exhibit 99.2
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Summary of Transaction
On December 19, 2025, Playverse Co. Ltd. (“Playverse”), an indirect wholly owned subsidiary of K Wave Media Ltd. (the “Company”), entered into a Share Purchase Agreement (the “Purchase Agreement”) with Hansol Holdings Co., Ltd., Lee Mi-sung and Cho Hyun-seung (collectively, the “Sellers”), pursuant to which Playverse agreed to purchase from the Sellers and the Sellers agreed to sell to Playverse an aggregate of 5,864,088 shares common stock (the “Purchased Shares”) of Hansol Inticube Co., an AI language and software development company with core capabilities in AI contact center solutions, voice recognition, chatbots, smart solutions and platform technologies (“Hansol”).
The Shares represent approximately 42.25% of the outstanding shares of common stock of Hansol. While the Company acquired a 42.25% equity interest in Hansol Inticube, it concluded that it obtained control of the target as of the acquisition date. The Company obtained the power to govern the financial and operating policies of the target through contractual arrangements granting it the right to appoint a majority of the board and senior management of the target, including the sellers’ commitment to vote in favor of the Company’s nominated directors and the resignation of the incumbent registered officers at closing. Pursuant to the Purchase Agreement, the aggregate purchase price for the Shares pursuant to was KRW15,000,337,104 (the “Hansol Acquisition”). The Purchase Agreement contains customary representations, warranties and covenants by the parties and customary indemnification obligations of the parties.
On May 4, 2026, the Company announced that its Board of Directors had approved the disposition of Play Co., Ltd. (“Play”) to its previous owner. The proposed disposition is subject to shareholder approval at the Company’s 2026 annual general meeting of its stockholders, scheduled to occur on July 10, 2026. If the disposition of Play is approved by the Company’s shareholders and consummated, the acquisition of Play will be unwound and treated as if the original transaction had not occurred. As part of the recission, the parties will mutually release each other from obligations arising under the original share purchase agreement, including the Company’s remaining obligation to pay approximately $25.0 million of unpaid purchase consideration. Hansol is an indirect subsidiary of the Company through Play. As such, if the disposition of Play is approved by the Company’s shareholders and the transaction is consummated, then Hansol will no longer be a subsidiary of the Company.
On May 29, 2026, the Company entered into a recission and termination agreement (the “Solaire Recission Agreement”) with former owners of Solaire Partners, pursuant to which the parties agreed to terminate and rescind the original share purchase agreement dated 2023. Under the terms of the Solaire Recission Agreement, the acquisition of Solaire is to be unwound and treated as if the original transaction had not occurred.
Pro Forma Information
The unaudited pro forma condensed combined financial statements have been prepared in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended by the final rule, Release No.33-10786 “Amendments to Financial Disclosures about Acquired and Disposed Businesses,” and have been adjusted to include estimated transaction accounting adjustments which give effect to the Hansol Acquisition and the application of the acquisition method of accounting under IFRS. Under the acquisition method of accounting, the preliminary purchase price is allocated to the underlying tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with any excess purchase price allocated to goodwill. The pro forma adjustments are based on preliminary estimates and currently available information and assumptions that the Company’s management believes are reasonable. The notes to the unaudited pro forma condensed combined financial statements provide a discussion of how such adjustments were derived and presented in the unaudited pro forma condensed combined financial statements (“Acquisition Adjustments”). Changes in facts and circumstances or discovery of new information may result in revised estimates. Actual results and valuations may differ materially from the assumptions within the accompanying unaudited pro forma condensed combined financial information.
The accompanying unaudited pro forma condensed combined statements of operations for the year ended December 31, 2025 combine the historical consolidated statements of operations for K Wave and the historical statements of operations for Hansol for the same period.
The unaudited pro forma condensed combined statement of financial position as of December 31, 2025 gives effect to the Hansol Acquisition as if it occurred on December 31, 2025. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2025 give effect to the Acquisition as if it occurred on January 1, 2025.
The unaudited pro forma condensed combined financial statements are for illustrative and informational purposes only and are not intended to represent what the Company’s results of operations or financial position would have been had the Acquisition occurred on the dates indicated, or what they will be for any future periods. The unaudited pro forma condensed combined financial statements do not reflect the realization of any expected cost savings, other synergies as a result of the acquisition, or integration costs.
The unaudited pro forma condensed combined financial statements and related notes have been derived from, and should be read in conjunction with:
| (i) | the historical audited consolidated financial statements of K Wave and accompanying notes included in K Wave’s Annual Report on Form 20-F for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (“SEC”) on May 15, 2026; | |
| (ii) | the historical audited financial statements of Hansol and accompanying notes for the years ended December 31, 2025, appearing within this Current Report on Form 6-K as Exhibit 99.1. |
2
K WAVE MEDIA LTD.
Unaudited Pro Forma Condensed Combined Statement of Financial Position
As of December 31, 2025
| In thousands of KRW K Wave December 31, 2025 |
In thousands of KRW Hansol December 31, 2025 |
In thousands of KRW Transaction Adjustments (Note 5) |
Note Ref | In thousands of KRW Bank Loan Transaction Adjustment (Note 5) |
Note Ref | In thousands of KRW Playverse Capital Contribution Transaction Adjustment (Note 5) |
Note Ref | In thousands of KRW Convertible Notes Transaction Adjustment (Note 5) |
Note Ref | In thousands of KRW Play Co. Ltd. Recission Transaction Adjustment (Note 5) |
Note Ref | In thousands of KRW Solaire Partners Recission Transaction Adjustment (Note 5) |
Note Ref | In thousands of KRW Pro Forma Combined |
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| Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | ₩ | ₩ | ₩ | ( |
) | 5C | ₩ | 5F | ₩ | 5G | ₩ | 5H | ₩ | ( |
) | 5J | ₩ | ( |
) | 5K | ₩ | |||||||||||||||||||||||||||||||||||
| Short-term financial assets | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts receivable - trade, net | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term loans, net | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts receivable - other, net | ( |
) | 5J | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value added tax receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other current asset | ( |
) | 5C | ( |
) | 5J | ( |
) | 5K | |||||||||||||||||||||||||||||||||||||||||||||||
| Contract assets | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current tax assets | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories, net | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other current financial assets | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total current assets | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term financial instruments | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term loans, net | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term other receivables | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial assets at fair value through profit or loss | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term investment securities | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments in associates | 5C | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (15,000,337 | ) | 5D | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||
| Property and equipment including right-of-use assets | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible assets other than goodwill | 5A | ( |
) | 5H | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 5B | ( |
) | 5J | ( |
) | 5K | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investment properties | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other non-current assets | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other non-current financial assets | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other non-current non-financial assets | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferred tax assets | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | ₩ | ₩ | ₩ | ₩ | ₩ | ₩ | ( |
) | ₩ | ( |
) | ₩ | ( |
) | ₩ | |||||||||||||||||||||||||||||||||||||||||
| Liabilities and stockholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current liabilities | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trade and other payables | ₩ | ₩ | ₩ | 5E | ( |
) | 5J | ( |
) | 5K | ₩ | |||||||||||||||||||||||||||||||||||||||||||||
| - | - | - | - | (36,232,018 | ) | 5J | - | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other current financial liabilities | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warrants | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other current non-financial liabilities | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract liabilities | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 5F | ( |
) | 5J | ( |
) | 5K | |||||||||||||||||||||||||||||||||||||||||||||||||
| Current portion of long-term borrowings, net | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible notes | ( |
) | 5H | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| - | - | - | - | (4,141,332 | ) | 5I | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Current lease liabilities | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other current provisions | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current tax liabilities | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total current liabilities | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Trade and other non-current payables | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term borrowings, excluding current portion, net | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other non-current financial liabilities | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other non-current non-financial liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-current Contract liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Defined benefit liabilities | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for long-term employee benefits | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract liabilities | ( |
) | 5J | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other non-current provisions | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-current lease liabilities | ( |
) | 5J | ( |
) | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferred tax liabilities | 5B | ( |
) | 5J | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share capital | ( |
) | 5D | 5I | 5K | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Share premium | 5I | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive loss | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other reserves | ( |
) | ( |
) | 5D | 5G | ( |
) | 5K | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||
| Accumulated deficit | ( |
) | ( |
) | 5D | ( |
) | 5F | ( |
) | 5H | 5J | 5K | ( |
) | |||||||||||||||||||||||||||||||||||||||||
| - | (45,000 | ) | 5E | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity (deficit) attributable to owners of the Parent Company | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-controlling interest | ( |
) | 5C | 5G | ( |
) | 5J | 5K | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total stockholders’ equity (deficit) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity (deficit) | ₩ | ₩ | ₩ | ₩ | ₩ | ₩ | ( |
) | ₩ | ( |
) | ₩ | ( |
) | ₩ | |||||||||||||||||||||||||||||||||||||||||
See accompanying notes to the unaudited condensed combined pro forma financial information.
3
K WAVE MEDIA LTD.
Unaudited Pro Forma Condensed Combined Statement of Operations
Year Ended December 31, 2025
| In thousands of KRW, except for per share data K Wave December 31, 2025 |
In thousands of KRW, except for per share data Hansol December 31, 2025 |
In thousands of KRW, except for per share data Transaction Adjustments (Note 6) |
Note Ref | In thousands of KRW Bank Loan Transaction Adjustment (Note 6) |
Note Ref | In thousands of KRW, except for per share data Convertible Notes Transaction Adjustments (Note 6) |
Note Ref | In thousands of KRW Play Co. Ltd. Recission Transaction Adjustment |
Note Ref | In thousands of KRW Solaire Partners Recission Transaction Adjustment |
Note Ref | In thousands of KRW Pro Forma Combined |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Content Merchandising Revenue | ₩ | ₩ | ₩ | ₩ | ₩ | ₩ | ( |
) | 6H | ₩ | ₩ | |||||||||||||||||||||||||||||||||||||||
| F&B Revenue | ( |
) | 6H | |||||||||||||||||||||||||||||||||||||||||||||||
| Content production revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Content investment revenue | ( |
) | 6I | |||||||||||||||||||||||||||||||||||||||||||||||
| AI-based digital contact center revenue | ( |
) | 6H | |||||||||||||||||||||||||||||||||||||||||||||||
| Pet healthcare revenue | ( |
) | 6H | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
| Cost of revenue | ( |
) | ( |
) | 6I | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
| Gross profit | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative | ( |
) | ( |
) | ( |
) | 6A | 6H | 6I | ( |
) | |||||||||||||||||||||||||||||||||||||||
| Other income | 6H | 6I | ||||||||||||||||||||||||||||||||||||||||||||||||
| Other expense | ( |
) | ( |
) | ( |
) | 6B | 6H | ( |
) | ||||||||||||||||||||||||||||||||||||||||
| Operating (loss) income | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Loss on disposal of Bitcoin | ( |
) | 6F | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
| Finance income | ( |
) | 6H | ( |
) | 6I | ||||||||||||||||||||||||||||||||||||||||||||
| Finance costs | ( |
) | ( |
) | ( |
) | 6E | 6G | 6H | 6I | ( |
) | ||||||||||||||||||||||||||||||||||||||
| Income (loss) before income tax | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
| Tax benefit (expense) | ( |
) | ( |
) | 6D | 6H | ( |
) | 6I | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | ₩ | ( |
) | ₩ | ₩ | ( |
) | ₩ | ( |
) | ₩ | ( |
) | ₩ | ₩ | ₩ | ( |
) | ||||||||||||||||||||||||||||||||
| Non-controlling interest | ( |
) | ( |
) | 6C | 6H | ( |
) | 6I | ( |
) | |||||||||||||||||||||||||||||||||||||||
| Owners of the parent company | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
| Net income (loss) per common share, basic and diluted | ₩ | ) | ₩ | ₩ | ) | |||||||||||||||||||||||||||||||||||||||||||||
| Weighted-average shares outstanding, basic and diluted | ||||||||||||||||||||||||||||||||||||||||||||||||||
See accompanying notes to the unaudited condensed combined pro forma financial information.
4
K WAVE MEDIA LTD.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Note 1 – Description of Hansol Acquisition
On December 19, 2025, Playverse Co. Ltd. (“Playverse”), an indirect wholly owned subsidiary of K Wave Media Ltd. (the “Company” or “K Wave”), entered into a Share Purchase Agreement (the “Purchase Agreement”) with Hansol Holdings Co., Ltd., Lee Mi-sung and Cho Hyun-seung (collectively, the “Sellers”), pursuant to which Playverse agreed to purchase from the Sellers and the Sellers agreed to sell to Playverse an aggregate of shares common stock (the “Purchased Shares”) of Hansol Inticube Co., an AI language and software development company with core capabilities in AI contact center solutions, voice recognition, chatbots, smart solutions and platform technologies (“Hansol”).
The Shares represent approximately % of the outstanding shares of common stock of Hansol. Pursuant to the Purchase Agreement, the aggregate purchase price for the Shares pursuant to was KRW
Note 2 – Basis of Presentation
The Hansol Acquisition is being accounted for as a business combination using the acquisition method of accounting under IFRS 3, Business Combinations, which requires assets acquired and liabilities assumed to be recorded at their acquisition date fair value in accordance with IFRS 13, Fair Value Measurement. Under IFRS 13, fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements can be highly subjective, and it is possible the application of reasonable judgement could develop different assumptions resulting in a range of alternative estimates using the same facts and circumstances. Identifiable intangible assets—such as customer relationships, technology assets, and trademarks—are recognized separately from goodwill when they meet the separability or contractual-legal criteria in IFRS 3. Goodwill is recognized as the excess of the consideration transferred and the amount of any non-controlling interest over the fair value of the identifiable net assets acquired.
K Wave and Hansol’s historical financial statements were prepared in accordance with IFRS. Based on an analysis of K Wave and Hansol’s significant accounting policies, the Company has not identified any material differences in accounting policies that would have an impact on the unaudited pro forma condensed combined financial statements. K Wave and Hansol have not had any historical relationship prior to the Acquisition. Accordingly, no pro forma adjustments were required to eliminate activities between the companies. As a result, the unaudited pro forma condensed combined financial statements do not assume any differences in accounting policies.
The pro forma adjustments presented in this unaudited pro forma condensed combined financial information represent management’s estimates based on information available as of the date of this Form 6-K and such estimates are subject to revision as further information is obtained. Accordingly, the pro forma adjustments for the Hansol Acquisition are preliminary and subject to further adjustment as additional information becomes available and the various analyses and other valuations are performed. Any adjustments may have a significant effect on total assets, total liabilities, total equity, operating expenses, and depreciation and amortization expenses, and such results may be significant.
The assumptions underlying the pro forma adjustments are described in the accompanying notes to this unaudited pro forma condensed combined financial information.
The unaudited pro forma condensed combined financial information may not be indicative of K Wave’s future performance and does not necessarily reflect what K Wave’s financial position and results of operations would have been had these transactions occurred at the beginning of the period presented.
Further, the unaudited pro forma condensed combined financial information does not purport to project the future operating results or financial position of K Wave following the completion of the Hansol Acquisition. Additionally, the unaudited pro forma condensed combined financial information does not reflect any revenue enhancements, anticipated synergies, operating efficiencies, or cost savings that may be achieved related to the Hansol Acquisition, nor does it reflect any costs or expenditures that may be required to achieve any possible synergies.
K Wave will finalize the accounting for the acquisition as soon as practicable within the measurement period, but in no event later than one year from the acquisition date, in accordance with IFRS 3.
5
Note 3 – Preliminary Purchase Price Allocation
Preliminary Purchase Consideration
The estimated fair value of the consideration transferred is ₩15.0 billion.
Preliminary Estimates of Fair Value
The following table summarizes the tangible and identifiable intangible assets acquired, and liabilities assumed used to prepare pro forma adjustments in the unaudited pro forma condensed combined balance sheet and statements of operations (in thousands).
| Consideration: | ||||||
| Cash | ₩ | |||||
| Identifiable assets acquired and liabilities assumed: | ||||||
| Current assets | ₩ | |||||
| Non-current assets | ||||||
| Intangible assets | ||||||
| Deferred tax liability | ( |
) | ||||
| Total liabilities | ( |
) | ||||
| Non-controlling interest | ( |
) | ||||
| Net identifiable assets acquired | ₩ | |||||
| Goodwill | ||||||
| Net assets acquired | ₩ |
The final estimates of fair value will be determined when the Company has completed the detailed valuations and necessary calculations. The final allocation could differ materially from the preliminary calculation used in the pro forma adjustments. The final estimates of fair value may include (i) changes in allocations to intangible assets including goodwill, (ii) other changes to assets and liabilities, and (iii) changes to the assessment of tax positions and tax rates.
Intangible Assets
Preliminary identifiable intangible assets in the unaudited pro forma condensed combined financial information consist of the following (in thousands):
| Approximate Fair Value |
Estimated Useful Lives |
Valuation Methodology |
|||||||||
| Customer relationships | ₩ | years | |||||||||
| Backlog | years | ||||||||||
| Technology | years | ||||||||||
| Brand | Indefinite | ||||||||||
| Other intangible assets | years | ||||||||||
| Total intangible assets | ₩ | ||||||||||
The amortization related to the identifiable intangible assets is reflected as an Acquisition Adjustment in the unaudited pro forma condensed combined statements of operations based on the estimated useful lives above as further described in Note 5. The fair values of the identifiable intangible assets are preliminary and are based on Management’s estimates as of the Closing Date. The Company applied judgement in estimating the fair value of these intangibles which involved the use of significant assumptions with respect to revenue forecasts, revenue growth, attrition rates, royalty rates, discount rates, and economic lives.
6
Note 4 – Other Pro Forma Transactions
Playverse Capital Contribution
In March 2026, Playverse received a capital contribution of ₩2.5 billion from Arania, representing % ownership in Playverse.
Conversion and Settlement of Convertible Notes
In January 2026, K Wave received notices of conversion from Anson Investments Master Fund LP and Anson East Master Fund LP in connection with the convertible notes.
Accordingly, K Wave issued an aggregate of common shares upon conversion, including shares to Anson Investments Master Fund LP and shares to Anson East Master Fund LP.
In March 2026, K Wave received notices of conversion from Loeb & Loeb LLP in connection with the convertible notes. Accordingly, the Company issued an aggregate of common shares upon conversion and the note was cancelled in its entirety.
On April 29, 2026, the Company entered into the amendment to Security Purchase Agreement. Pursuant to the agreement, the Company liquidated 88 Bitcoins and repaid part of Convertible notes issued to Anson Investments Master Fund LP and Anson East Master Fund LP. As a result of the liquidation, $
Borrowings of Play Company
On March 25, 2026, Play Company entered into the loan agreement with Hana Bank in the amount of ₩
Recission of Play Company Acquisition
At the Company’s 2026 annual general meeting which is scheduled to occur on July 10, 2026, the Company’s shareholders will vote to approve, among other things, the termination of the Share Purchase Agreement (as amended, the “Share Purchase Agreement”), dated March 31, 2023 and effective January 3, 2025, pursuant to which the Company, through its wholly owned subsidiary, K Enter Holdings, Inc., purchased all of the issued and outstanding shares of common stock of Play Company Co., Ltd. (“Play”). If this proposal is approved, the Company will enter into a recission and termination agreement (the “Play Recission Agreement”) with the former owner of Play, pursuant to which the parties will agree to rescind and terminate the Share Purchase Agreement. Under the terms of the Play Recission Agreement, the acquisition of Play would be unwound and treated as if the original transaction had not occurred. As part of the recission, the parties will also agree to mutually release each other from obligations arising under the Share Purchase Agreement, including the Company’s remaining obligation to pay approximately $
Recission of Solaire Partners Acquisition
On May 29, 2026, the Company entered into a recission and termination agreement (the “Solaire Recission Agreement”) with former owners of Solaire Partners, pursuant to which the parties agreed to terminate and rescind the original share purchase agreement dated 2023. Under the terms of the Solaire Recission Agreement, the acquisition of Solaire is to be unwound and treated as if the original transaction had not occurred.
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Note 5 – Acquisition Adjustments to Unaudited Pro Forma Condensed Combined Statement of Financial Position
Acquisition Adjustments include the following adjustments, which are based on the Company’s preliminary estimates and assumptions, related to the unaudited pro forma condensed combined statement of financial position as of December 31, 2025.
| (a) | Represents the recognition of the fair value of intangible assets in accordance with purchase accounting as described in Note 3. |
| (b) | Represents the purchase accounting adjustment to goodwill based on the acquisition method. |
| (c) | Represents the purchase of approximately % of the shares of Hansol for a value of ₩15.0 billion of which a prepayment of ₩3.0 billion is recorded as other current asset as of December 31, 2025. Non-controlling interests are measured at the non-controlling interest’s proportionate share of the identifiable net assets. |
| (d) | Adjustment eliminates Hansol’s historical shareholders’ equity. |
| (e) | Reflects ₩45.0 million of transaction costs incurred by the Company that are not included in the historical financial statements of K Wave or Hansol. |
| (f) | Reflects the bank loan in the amount of ₩5.0 billion entered by K Wave subsequent to December 31, 2025. The loan has a one year term and an interest rate of the Korea 3-month CD rate+ |
| (g) | Reflects the sale of % of Play Company’s ownership in Playverse for ₩2.5 billion. |
| (h) | Reflects the liquidation of 88 Bitcoin and the partial repayment of the convertible notes issued to Anson Investments Master Funs LP and Anson East Master Fund LP. |
| (i) | Reflects the conversion of the Anson Investments Master Fund LP and Anson East Master Fund LP for the issuance of and common shares, respectively. Reflects the conversion of the Loeb and Loeb LLP convertible notes and the issuance of common shares. |
| (j) | Reflects the adjustment to record the recission of the Play Co. Ltd. securities purchase agreement. The pro forma adjustment reflects (i) the removal of Play Co. Ltd.’s assets and liabilities, including goodwill, (ii) the elimination of the unpaid acquisition consideration liability, and (iii) the assumed cancellation of ordinary shares originally issued as consideration in connection with the acquisition. |
| (k) | Reflects the adjustment to record the recission of the Solaire Partners securities purchase agreement. The pro forma adjustment reflects (i) the removal of Solaire Partners’ assets and liabilities together with the elimination of the related non-controlling interest and (ii) the assumed cancellation of ordinary shares originally issued as consideration in connection with the acquisition. |
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Note 6 – Acquisition Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations
| (a) | Reflects an adjustment to reflect ₩45.0 million of transaction costs incurred by K Wave that are not included in the historical financial statements of K Wave and Hansol. |
| (b) | The following table summarizes the estimated fair values of Hansol’s identifiable intangible assets acquired through business combination and determined through purchase price allocation and their estimated useful lives including the amortization for the periods presented calculated on a straight-line basis (in thousands). |
| Estimated Fair Value |
Estimated Useful Life (years) |
Amortization Expense - Year Ended December 31, 2025 |
||||||||||||
| Customer relationships | ₩ | ₩ | ||||||||||||
| Backlog | ||||||||||||||
| Technology | ||||||||||||||
| Brand | Indefinite | |||||||||||||
| Other intangible assets | ||||||||||||||
| Total | ₩ | |||||||||||||
| Historical amortization | ||||||||||||||
| Incremental amortization | ₩ | |||||||||||||
| (c) | Reflects the non-controlling interest related to the historical financial statements of Hansol and the pro forma amortization expense of intangible assets. |
| (d) | Reflects the pro forma tax expense on the amortization of the intangible assets in (B) above, the interest expense recognized on the bank loan in (C) below, the loss on the disposal of Bitcoin in (F) below and the reversal of interest expense on the convertible notes in (G) below, based on the 22% corporate income tax rate. |
| (e) | Reflects the interest expense recognized on the bank loan as described in (F) above, giving effect to the business combination as if it had occurred on January 1, 2025. |
| (f) |
Reflects the loss on the disposal of Bitcoin. |
| (g) | Reflects the reversal of the interest expense on the convertible notes, giving effect to the business combination as if it had occurred on January 1, 2025. |
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| (h) | Reflects the adjustment to record the recission of the Play Co. Ltd. Securities purchase agreement. The pro forma reflects the removal of Play Co. Ltd.’s revenue and expenses, including non-controlling interest. The Company recognized a gain on deconsolidation equal to the excess of (i) the fair value of the consideration received—consisting of the forgiven liabilities of K Enter Holdings, Inc.—over the sum of (ii) the carrying amounts of the subsidiary's assets (including any goodwill) and liabilities at the date control was lost and (iii) the carrying amount of any non-controlling interests. |
| Derecognized net asset (liabilities) at their carrying amounts | Derecognized non-controlling interests at their carrying amounts | Fair value of considerations received | Gain on deconsolidation | |||||||||||||
| Play Company and its subsidiaries | ( | ) | ||||||||||||||
| (i) | Reflects the adjustment to record the recission of the Solaire Partners’ securities purchase agreement. The pro forma adjustment reflects the removal of Solaire Partners’ revenue and expenses together with the elimination of the related non-controlling interest. The Company recognized a gain on deconsolidation equal to the excess of (i) the fair value of the consideration received—consisting of K Wave Media shares measured at their closing price on June 30, 2026—over the sum of (ii) the carrying amounts of the subsidiary's assets (including any goodwill) and liabilities at the date control was lost. |
| Derecognized net asset (liabilities) at their carrying amounts | Derecognized non-controlling interests at their carrying amounts | Fair value of considerations received | Gain on deconsolidation | |||||||||||||
| Solaire Partners | ( | ) | ||||||||||||||
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