Pollex, Inc.

CIK:0001178377|SEC Filings

Consolidated Statements of Operations and Comprehensive Loss - KRW (₩) ₩ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue
Total revenue	₩ 5,848,443	₩ 4,589,203
Cost of revenue
Total cost of revenue	3,600,606	3,069,644
Gross margin	2,247,837	1,519,559
Selling, general and administrative expenses	2,204,582	2,108,221
Research and development	164,743	374,944
Loss from operations	(121,488)	(963,606)
Other expense:
Interest expense, net	(157,974)	(161,072)
Other income (expense), net	(13,130)	2,868
Total other expense	(171,104)	(158,204)
Loss before income tax provision (benefit)	(292,592)	(1,121,810)
Income tax provision (benefit)	7,787	16,850
Net loss	₩ (300,379)	₩ (1,138,660)
Basic loss per share	₩ (13)	₩ (50)
Basic weighted average shares outstanding	23,065,136	22,728,538
Net loss	₩ (300,379)	₩ (1,138,660)
Other comprehensive loss:
Foreign exchange translation loss	(23,485)	(114,215)
Remeasurement of pension liabilities	(29,215)	(44,806)
Other comprehensive loss, net of tax:	(52,700)	(159,021)
Comprehensive loss	(353,079)	(1,297,681)
Product [Member]
Revenue
Total revenue	3,332,236	2,445,340
Cost of revenue
Total cost of revenue	2,304,208	1,736,532
Service [Member]
Revenue
Total revenue	2,516,207	2,143,863
Cost of revenue
Total cost of revenue	₩ 1,296,398	₩ 1,333,112

Condensed Consolidated Statements of Cash Flows - KRW (₩) ₩ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	₩ (300,379)	₩ (1,138,660)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	232,705	116,482
Pension plan expenses	229,137	216,916
Deferred income taxes	(7,888)	16,850
Warrants issued for professional service	373,826
Foreign currency loss	(2,207)	6,825
Changes in operating assets and liabilities:
Accounts receivable	119,830	(65,998)
Inventories	(16,100)	(1,017)
Other current assets	4,973	16,478
Deposits	16,148	17,300
Accounts payable	(121,437)	256,997
Nontrade payables	383,311	175,562
Other current liabilities	244,130	45,027
Pension benefits payments	(153,364)	(42,877)
Payment of lease liabilities	(116,039)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	886,646	(380,115)
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in loans to related parties	4,846	164,000
Purchase of short-term financial instruments	(36,000)	(76,000)
Proceeds from disposals of short-term financial instruments	36,000	300,251
Purchase of property and equipment	(12,227)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(7,381)	388,251
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from private placement, net		559,931
Warrants exercised	20,945
Drawdown of short-term borrowings	468,000	42,281
Repayment of short-term borrowings	(758,545)	(480,873)
Repayment of current portion of long-term debt	(192,560)	(225,240)
Borrowings of long-term debt	224,000	100,000
Repayment of long-term debt	(24,889)
Increase in loans from related parties	525,796	188,016
Repayment of loans from related parties	(614,913)	(210,655)
NET CASH USED IN FINANCING ACTIVITIES	(352,166)	(26,540)
Effect of exchange rate on cash and cash equivalents	(61,178)	35,494
NET INCREASE IN CASH AND CASH EQUIVALENTS	465,921	17,090
CASH AND CASH EQUIVALENTS- beginning of year	126,406	109,316
CASH AND CASH EQUIVALENTS- end of year	592,327	126,406
Cash paid for:
Interest	158,478	162,401
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Recognition of right-of-use assets and lease liabilities	318,835
Increase in loans from related parties due to payment of general expenses by related parties	61,272
Offsetting long-term debts and deposits		95,749
Offset of loans from related parties against loans to related parties	₩ 17,136

Consolidated Balance Sheets - KRW (₩) ₩ in Thousands	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	₩ 592,327	₩ 126,406
Short-term financial instruments	18,000	18,000
Accounts receivable, net of allowance for doubtful accounts of ?11,227	426,840	546,671
Inventories	23,317	7,217
Other current assets	43,636	48,608
Total Current Assets	1,104,120	746,902
Property and equipment, net	243,406	44,224
Goodwill	1,430,625	1,430,625
Intangible assets, net	201,331	302,155
Deposits	87,051	103,199
Total Assets	3,066,533	2,627,105
CURRENT LIABILITIES:
Accounts payable	1,270,032	1,393,676
Nontrade payables	1,690,390	1,307,079
Other current liabilities	420,931	238,073
Short-term borrowings	2,095,000	2,385,545
Loans from related parties	1,000	45,980
Current portion of long-term debt	342,947	222,260
Total Current Liabilities	5,820,300	5,592,613
Long-term debt	338,364	452,500
Lease liabilities	202,796
Accrued benefit pension liability	1,220,648	1,180,730
Total Liabilities	7,582,108	7,225,843
STOCKHOLDERS' DEFICIT :
Common stock, $0.001 par value, 300,000,000 shares authorized, 23,159,105 and 22,927,992 shares issued and outstanding as of December 31, 2019 and 2018, respectively	26,460	26,198
Additional paid-in capital	7,657,856	7,221,876
Accumulated other comprehensive loss	(268,314)	(215,614)
Accumulated deficit	(11,931,577)	(11,631,198)
Total Stockholders' Deficit	(4,515,575)	(4,598,738)
Total Liabilities and Stockholders' Deficit	₩ 3,066,533	₩ 2,627,105