[Edaily Reporter KIM JI-WAN ] Psomagen, Inc.(950200) announced on the 30th that its board of directors had resolved to reduce capital surplus (share premium) and offset it against accumulated losses.

The amount of capital surplus to be used for this offset of accumulated losses is $75 million (113.5 billion won) as of March 31, 2026, according to the separate financial statements. After fully offsetting the accumulated deficit of $61.33 million (92.8 billion won), the remaining amount will be transferred to retained earnings, and the legal effect of this accounting treatment will take effect immediately as of June 30, 2026, the date of the board resolution.

Through this measure, Psomagen, Inc. has fully resolved its accumulated deficit, thereby establishing a sounder and more stable financial structure.

In particular, Psomagen, Inc. had already succeeded in achieving operating profit based on its separate financial statements for the previous year, laying the groundwork for a clear trend toward profitability. Through this loss offset process, the company has completely shed its past financial burdens and established a solid foundation to steadily accumulate retained earnings based on future profits.

This reduction in capital surplus and coverage of accumulated losses is an internal adjustment (a transfer between accounts on the books) within the equity section of the company’s separate financial statements; it does not result in any changes to the company’s actual paid-in capital, total number of issued shares, or total equity (shareholders’ equity).

Hong Soo, CEO of Psomagen, Inc., emphasized, “Following the achievement of operating profit based on last year’s separate financial statements, we have dramatically improved our financial structure through this offset of accumulated losses.” He added, “This is a strategic decision aimed at enhancing market confidence and increasing long-term shareholder value. At the same time, we will continue to accumulate retained earnings based on future business performance, maximize corporate value through sustainable growth, and repay our shareholders for their support.”