Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 15, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | EMARINE GLOBAL INC. | |
Entity Central Index Key | 1,178,377 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 22,927,992 | |
Trading Symbol | EMRN | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | ₩ 575,811 | ₩ 109,316 |
Short-term financial instruments | 57,000 | 338,000 |
Accounts receivable, net of allowance for doubtful accounts of ?11,227 and ?11,227, as of March 31, 2018 and December 31, 2017, respectively | 485,823 | 480,673 |
Inventories | 38,096 | 6,200 |
Loans to related parties | 164,000 | |
Other current assets | 66,846 | 65,087 |
Total Current Assets | 1,223,576 | 1,163,276 |
Property and equipment, net | 55,777 | 59,808 |
Goodwill | 1,430,625 | 1,430,625 |
Intangible assets, net | 377,828 | 403,053 |
Deposits | 100,199 | 120,499 |
Total Assets | 3,188,005 | 3,177,261 |
CURRENT LIABILITIES: | ||
Accounts payable | 746,571 | 1,129,854 |
Nontrade payables | 1,166,023 | 1,131,517 |
Other current liabilities | 192,034 | 193,048 |
Short-term borrowings | 2,492,820 | 2,789,886 |
Loans from related parties | 14,289 | 18,895 |
Current portion of long-term debt | 372,630 | 245,240 |
Total Current Liabilities | 4,984,367 | 5,508,440 |
Long-term debt | 527,370 | 684,760 |
Loans from related parties | 111,826 | |
Accrued benefit pension liability | 948,928 | 930,098 |
Total Liabilities | 6,572,491 | 7,123,298 |
STOCKHOLDERS’ DEFICIT : | ||
Common stock, $0.001 par value, 100,000,000 shares authorized, 22,927,992 and 22,061,317 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively | 26,198 | 25,265 |
Additional paid-in capital | 7,136,826 | 6,577,829 |
Accumulated other comprehensive loss | (44,421) | (56,593) |
Accumulated deficit | (10,503,089) | (10,492,538) |
Total Stockholders’ Deficit | (3,384,486) | (3,946,037) |
Total Liabilities and Stockholders’ Deficit | ₩ 3,188,005 | ₩ 3,177,261 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) ₩ in Thousands | Mar. 31, 2018KRW (₩)shares | Dec. 31, 2017KRW (₩)shares |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | ₩ | ₩ 11,227 | ₩ 11,227 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 22,927,992 | 22,061,317 |
Common stock, shares, outstanding | 22,927,992 | 22,061,317 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) ₩ in Thousands | 3 Months Ended | |||
Mar. 31, 2018$ / shares | Mar. 31, 2018KRW (₩)shares | Mar. 31, 2017$ / shares | Mar. 31, 2017KRW (₩)shares | |
Revenue | ||||
Product | ₩ 249,001 | ₩ 430,959 | ||
Service | 1,060,482 | 535,692 | ||
Total revenue | 1,309,483 | 966,651 | ||
Cost of revenue | ||||
Product | 182,387 | 666,367 | ||
Service | 672,628 | 652,356 | ||
Total cost of revenue | 855,015 | 1,318,723 | ||
Gross margin (loss) | 454,468 | (352,072) | ||
Selling, general and administrative expenses | 424,091 | 511,553 | ||
Income (Loss) from operations | 30,377 | (863,625) | ||
Other expense: | ||||
Interest expense, net | (39,817) | (38,130) | ||
Other income (expense), net | (4,039) | (5,486) | ||
Total other expense | (43,856) | (43,616) | ||
Loss before provision for income taxes | (13,479) | (907,241) | ||
Income tax benefit | (2,930) | |||
Net loss | ₩ (10,551) | ₩ (907,241) | ||
Net loss per common share | $ / shares | $ (0.48) | $ (3,696) | ||
Weighted average common shares outstanding | shares | 22,119,095 | 245,486 | ||
Net loss | ₩ (10,551) | ₩ (907,241) | ||
Other comprehensive income: | ||||
Foreign exchange translation gain | 1,783 | |||
Remeasurement of pension liabilities | 10,388 | |||
Other comprehensive income, net of tax: | 12,171 | |||
Comprehensive income (loss) | ₩ 1,620 | ₩ (907,241) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - KRW (₩) ₩ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | ₩ (10,551) | ₩ (907,241) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 29,256 | 30,179 |
Pension plan expenses | 54,229 | 11,502 |
Bad debt | 11,227 | |
Deferred income taxes | (2,930) | |
Foreign currency loss (gain) | (1,534) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,154) | 137,104 |
Inventories | (31,896) | 229,201 |
Other current assets | (1,758) | 9,097 |
Deposits | 20,300 | (12,350) |
Accounts payable | (381,746) | (179,353) |
Nontrade payables | 34,506 | 41,649 |
Other current liabilities | 13,434 | 412,323 |
Pension benefits payments | (22,080) | (107,497) |
NET CASH USED IN OPERATING ACTIVITIES | (305,924) | (324,159) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Decrease (Increase) in loans to related parties | (114,451) | |
Decrease in loans to related parties | 278,413 | 890 |
Proceeds from disposals of short-term financial instruments | 281,000 | 31,000 |
Purchase of property and equipment | (24,004) | |
Purchase of intangible assets | (2,395) | |
NET CASH USED IN INVESTING ACTIVITIES | 444,962 | 5,491 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from private placement, net | 557,336 | |
Drawdown of short-term borrowings | 12,669 | 148,596 |
Repayment of short-term borrowings | (309,736) | |
Repayment of current portion of long-term debt | (30,000) | (30,000) |
Borrowings of long-term debt | 80,695 | |
Repayment of long-term debt | 53,695 | |
Increase in loans from related parties | 111,826 | 10,673 |
Repayment of loans from related parties | (4,607) | (53,695) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 337,488 | 209,964 |
Effect of exchange rate on cash and cash equivalents | (10,031) | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 466,495 | (108,704) |
CASH AND CASH EQUIVALENTS- beginning of year | 109,316 | 157,971 |
CASH AND CASH EQUIVALENTS- end of period | 575,811 | 49,267 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest | 40 | 46 |
Income taxes |
Description of Business and Org
Description of Business and Organization | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | NOTE 1 – DESCRIPTION OF BUSINESS AND ORGANIZATION eMarine Global Inc. is a Nevada corporation (the “Company”) formed under the name of Web Views Corporation on November 2, 2001. On October 20, 2008, the Company changed its name to Pollex, Inc. (“Pollex”) On July 25, 2017, the Company entered into a share exchange agreement (the “Exchange Agreement”) with e-Marine Co., Ltd., a corporation organized under the laws of the Republic of Korea (“e-Marine”), and the shareholders of e-Marine (the “e-Marine Shareholders”), pursuant to which the e-Marine Shareholders assigned, transferred and delivered, free and clear of all liens, 100% of the issued and outstanding shares of common stock of e-Marine, representing 100% of the equity interest in e-Marine (the “e-Marine Shares”) in exchange for 14,975,000 restricted shares of its common stock (the “Share Exchange”). As a result of the Share Exchange, e-Marine became the Company’s wholly-owned subsidiary, and the e-Marine Shareholders acquired a controlling interest in the Company. For accounting purposes, the Share Exchange was treated as an acquisition of Pollex and a recapitalization of the Company. The Company is the accounting acquirer, and the results of its operations carryover. Accordingly, the operations of Pollex are not carried over and have been adjusted to ₩ 0. The assets and liabilities of the Company have been brought forward at its book value and no goodwill has been recognized as a result of the transaction. At the time of the Share Exchange, the Company was engaged in the online games business by acquiring gaming licenses in order to make them commercially available abroad. As a result of the Share Exchange, the Company assumed e-Marine’s business operations as its own. The acquisition of e-Marine is treated as a reverse acquisition, and the business of e-Marine became the business of the Company. As part of the recapitalization, the Pollex Shareholders assigned, transferred and delivered, free and clear of all liens, 1,012,233 of the issued and outstanding shares of common stock of Pollex, in exchange for 1,026,317 restricted shares of its common stock. e-Marine Co., Ltd. was organized under the laws of the Republic of Korea on January 2, 2001, and is a maritime information and communications technology provider based in South Korea. e-Marine seeks to achieve safety of life at sea through the use of various technologies, such as e-Navigation, Maritime Internet-of-Things (otherwise known as “I.o.T.”) and marine big data technology (collectively, “Maritime ICT Convergence”). e-Marine’s main products and services are divided into four categories: (1) Electronic Chart Display& Information System (“ECDIS”); (2) Smart Ship; (3) Overseas Solutions Distributions; and (4) Aids to Navigation. On August 15, 2017, the Company entered into an agreement and plan of (the “Merger Agreement”), pursuant to which it merged with and into a newly formed wholly-owned subsidiary (the “Merger Sub” and, the transaction, the “Merger”). As permitted by Chapter 92A.180 of Nevada Revised Statutes, the purpose of the Merger was to effect a change of the Company’s name from Pollex, Inc. to eMARINE Global Inc. Upon the filing of articles of merger with the Secretary of State of Nevada on August 15, 2017 in order to effect the Merger, the Company’s articles of incorporation were deemed amended to reflect the change in the Company’s corporate name. Upon consummation of the Merger, the separate existence of Merger Sub ceased. |
Liquidity Financial Condition a
Liquidity Financial Condition and Management Plans | 3 Months Ended |
Mar. 31, 2018 | |
Liquidity Financial Condition And Management Plans | |
Liquidity Financial Condition and Management Plans | NOTE 2 – LIQUIDITY FINANCIAL CONDITION AND MANAGEMENT PLANS These consolidated financial statements have been prepared on the basis of a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of March 31, 2018, the Company had cash of ₩ 575,811 thousand. Historically, the Company had net losses and negative cash flows from operations. The Company continues to experience liquidity constraints due to the continuing losses. These factors contributed to the Company’s substantial doubt of its ability to continue as a going concern. During the three months ended March 31, 2018 and the year ended December 31, 2017, management has addressed going concern remediation through funding through the private placement and is continuing initiatives to raise capital to meet future working capital requirements. However, additional capital is required to reduce the risk of going concern uncertainties for the Company beyond the next twelve months as of the reporting date. There is no certainty that the Company will be able to arrange sufficient funding to continue its operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and on the same basis as the Company prepares its annual audited consolidated financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of such interim results. The Company recorded gross margin (loss) of 35% and (36%) for the 3 month period ended March 31, 2018 and 2017, respectively. The loss in the first three months of 2017 was due to the significant amount of outsourcing costs and significant initial investment costs to the new contracts as well as the less government subsidy earned compared to that of the first three months of 2018. The results for the condensed consolidated statement of operations are not necessarily indicative of results to be expected for the year ending December 31, 2018 or for any future interim period. The condensed consolidated balance sheet at March 31, 2018 has been derived from unaudited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2017, and notes thereto included in the Company’s annual report on Form 10-K filed on April 17, 2018. There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s annual report on Form 10-K, which was filed with the Securities and Exchange Commission on April 17, 2018. Earnings (Loss) Per Share Earnings (loss) per share are calculated in accordance with Accounting Standards Codification (“ASC”) 260 “Earnings Per Share,” which provides for the calculation of “basic” and “diluted” earnings (loss) per share. Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of common shares issuable upon exercise of stock options. The following securities were not included in the diluted net loss per share calculation because their effect was anti-dilutive for the years presented. March 31, 2018 March 31, 2017 Redeemable convertible preferred stock - 12,800 Common stock warrants 12,916,688 - Potential dilutive shares 12,916,688 12,800 These shares were excluded due to their antidilutive effect. Recent Accounting Pronouncements In February 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). This ASU will increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Certain qualitative and quantitative disclosures are required, as well as a retrospective recognition and measurement of impacted leases. This ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating this ASU to determine its impact on the Company’s operations, financial position, cash flows and disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to reporting periods beginning after December 15, 2017, with early adoption permitted for reporting periods beginning after December 15, 2016. Subsequently, FASB issued ASUs in 2016 containing implementation guidance related to ASU 2014-09, including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which is intended to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance; and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which contains certain provision and practical expedients in response to identified implementation issues. The Company has adopted ASU 2014-09 and related ASUs on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt these ASUs. On January 1, 2018, the Company adopted ASU 2014-09, using the full retrospective method, which requires reporting entities to apply the standard as of the earliest period presented in their financial statements. The Company completed its review of its material revenue streams and determined that the adoption of Topic 606 did not have a material impact on the Company’s condensed consolidated statements of operations and condensed consolidated balance sheets. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 along with amending other parts of the goodwill impairment test. Under ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value with the loss not exceeding the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. At adoption, this update will require a prospective approach. The Company is currently evaluating this ASU to determine its impact on the Company’s operations, financial position, cash flows and disclosures. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 — INVENTORIES The components of inventories are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Finished goods ₩ - ₩ - Raw materials 38,096 6,200 38,096 6,200 Less: Inventory reserve - - Total, net ₩ 38,096 ₩ 6,200 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 5 — PROPERTY AND EQUIPMENT The components of property and equipment are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Office equipment ₩ 219,980 ₩ 219,980 Fixtures and furniture 48,520 48,520 Other 285,113 285,113 Total, at cost 553,613 553,613 Less: Accumulated depreciation (497,836 ) (493,805 ) Total, net ₩ 55,777 ₩ 59,808 Depreciation expense amounted to ₩ 4,031 thousand and ₩ 3,469 thousand for the periods ended March 31, 2018 and 2017, respectively. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 6 – GOODWILL In 2011, the Company acquired Intra-Ship Integrated Gateway business from Hyundai BS&C Co., Ltd. and recognized the goodwill of ₩ 1,430,625 thousand along with the other identifiable assets and liabilities. The Company assessed relevant events and circumstances in evaluating whether it was more likely than not that its fair value of the reporting unit was less than reporting unit’s carrying amount. The Company concluded that it is more likely than not that the fair value of a reporting unit is not less than its carrying amount and did not perform the two–step impairment test. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 7 – INTANGIBLE ASSETS The components of intangible assets that are carried at cost less accumulated amortization are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Description Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Industrial Property Rights ₩ 5,960 ₩ (4,947) ₩ 1,013 ₩ 5,960 ₩ (4,841) ₩ 1,119 Software 62,782 (62,782 ) - 62,782 (62,782 ) - Customers relationship 500,000 (125,000 ) 375,000 500,000 (100,000 ) 400,000 Other 22,021 (20,206 ) 1,815 22,020 (20,086 ) 1,934 Total ₩ 590,763 ₩ (212,935) ₩ 377,828 ₩ 590,762 ₩ (187,709) ₩ 403,053 Amortization expense for intangible assets was ₩ 25,225 thousand and ₩ 26,711 thousand for the periods ended March 31, 2017 and 2016, respectively. The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2018 (in thousands of Korean Won): Year Ending December 31, 2018 ₩ 75,674 2019 100,873 2020 100,733 2021 100,454 2022 94 Total ₩ 377,828 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 8 — DEBT Short-term Borrowings The Company borrowed ₩ 260,000 thousand from Kookmin Bank at October 8, 2015 with the maturity of October 2, 2018. The borrowings bear an interest at 4.70% per annum for 2018 and 2017. The Company paid ₩ 26,000 thousand and entered into a refinancing agreement at September 29. 2017. At March 31, 2018 and December 31, 2017, the balance for the borrowings was ₩ 234,000 thousand and ₩ 234,000 thousand, respectively. The borrowings are guaranteed by Korea Technology Finance Corporation, a government-funded institution. The Company borrowed ₩ 260,000 thousand from Kookmin Bank at November 4, 2015 with the maturity of November 2, 2018. The borrowings bear an interest at 5.05% per annum for 2018 and 2017. The Company paid ₩ 26,000 thousand and entered into a refinancing agreement at November 3. 2017. At March 31, 2018 and December 31, 2017, the balance for the borrowings was ₩ 234,000 thousand and ₩ 234,000 thousand, respectively. The borrowings are guaranteed by Korea Technology Finance Corporation, a government-funded institution. The Company borrowed ₩ 1,000,000 thousand from Woori Bank at June 2, 2015 with the maturity of June 1, 2018. The borrowings bear an interest at 4.27% per annum for 2018 and 2017. At March 31, 2018 and December 31, 2017, the balance for the borrowings was ₩ 1,000,000 thousand and ₩ 1,000,000 thousand, respectively. The borrowings are guaranteed by Korea Technology Finance Corporation, a government-funded institution. The Company had a bank overdraft from Woori Bank. The overdraft bears an interest at 14.00% per annum for 2018 and 2017. At March 31, 2018 and December 31, 2017, the balance for the bank overdraft was ₩ 60,820 thousand and ₩ 57,886 thousand, respectively. The overdraft is collateralized by the savings account of ₩ 5,000 thousand and guaranteed by Ung Gyu Kim, President. The Company borrowed ₩ 500,000 thousand from Suhyup Bank at July 18, 2016 with the maturity of July 18, 2018. The borrowings bear an interest at 2.50 % per annum for 2018 and 2017. At March 31, 2018 and December 31, 2017, the balance for the borrowings was ₩ 464,000 and ₩ 464,000 thousand, respectively. The borrowings are collateralized by the savings account of ₩ 3,000 thousand and guaranteed by Hyundai BS&C Co., Ltd., a nonaffiliated company. The Company borrowed ₩ 300,000 thousand from Hana Bank at August 4, 2017 with the maturity of August 1, 2018. The borrowings bear an interest at 2.56% per annum for 2018 and 2017. At March 31, 2018 and December 31, 2017, the balance for the borrowings was nil and ₩ 300,000 thousand, respectively. The borrowings are collateralized by the savings account of ₩ 300,000 thousand. The Company borrowed ₩ 550,000 thousand from GMT Co., Ltd. at April 19, 2017 with the maturity of November 30, 2017. The borrowings bear an interest at 6.00 % per annum for 2017. At March 31, 2018 and December 31, 2017, the balance for the borrowings was ₩ 200,000 thousand. The Company is in negotiation with the lender to extend the maturity. The Company borrowed ₩ 300,000 thousand from GNC Co., Ltd. at April 18, 2017 with the maturity of November 30, 2017. The borrowings bear an interest at 6.00 % per annum for 2017. At March 31, 2018 and December 31, 2017, the balance for the borrowings was ₩ 300,000 thousand. The Company is in negotiation with the lender to extend the maturity. As of March 31, 2018 and December 31, 2017, the estimated fair value of the short-term borrowings approximate their carrying values. Long-term Debt The components of the long-term debt, including the current portion, are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Loans from Small & medium Business Corporation borrowed at March 23, 2016 with the maturity of March 22, 2021 and at an interest of 4.22% and 4.39% per annum for 2018 and 2017, respectively, guaranteed by Ung Gyu Kim, President ₩ 500,000 ₩ 500,000 Loans from Small & medium Business Corporation borrowed at February 28, 2017 with the maturity of February 28, 2022 and at an interest of 2.65% per annum, guaranteed by Ung Gyu Kim, President 200,000 200,000 Loans from Kwangju Bank borrowed at September 24, 2015 with the maturity of September 24, 2018 and at an interest of 6.08% per annum for 2018 and 2017, respectively, guaranteed by Ung Gyu Kim, President. The borrowings are secured by the personal property owned by Ung Gyu Kim, President 200,000 230,000 Total 900,000 930,000 Less: current portion (372,630 ) (245,240 ) Total long-term debt less current portion ₩ 527,370 ₩ 684,760 As of March 31, 2018 and December 31, 2017, the estimated fair value of the long-term debt, including the current portion, were ₩ 900,000 and ₩ 930,000, respectively. Maturities of the long-term debt for each of the next five years and thereafter are as follows (in thousands of Korean Won): Year Ending March 31, 2019 ₩ 372,630 2020 233,160 2021 233,160 2022 61,050 Total ₩ 900,000 As of March 31, 2018 and December 31, 2017, respectively, the Company was in compliance with the financial covenant in credit agreements as defined in the credit agreements. |
Pension Plans
Pension Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans | NOTE 9 – PENSION PLANS The Company has a defined contribution plans covering all full time employees who met certain requirements of age, length of service and hours worked per year. Benefits paid to retirees are based upon age at retirement and years of credited service. Information with respect to changes in benefit obligation and the funded status of the plans is as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Change in projected benefit liability Liability at beginning of year ₩ 930,098 ₩ 880,656 Service cost 51,436 226,787 Interest cost 2,793 10,991 Benefit payments (22,081 ) (146,892 ) Prior service cost - - Remeasurement of defined benefit liabilities (13,318 ) (41,444 ) Liability at end of year 948,928 930,098 Plan assets at end of year - - Funded status and net liability recognized ₩ (948,928) ₩ (930,098) The components of benefit expense are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Service cost ₩ 51,436 ₩ 226,787 Interest cost 2,793 10,991 Prior service cost - - Total ₩ 54,229 ₩ 237,778 The weighted-average assumptions used to determine projected benefit liability and benefit expense for pension plans are as follows: March 31, 2018 December 31, 2017 Discount rate 3.35 % 3.21 % Expected long-term rate of return on plan assets N/A N/A Rate of compensation increase 2.00 % 2.00 % The estimated future benefit payments are as follows (in thousands of Korean Won): Year Ending December 31, 2018 ₩ 42,950 2019 54,404 2020 49,232 2021 52,988 2022 56,138 Thereafter ₩ 2,100,323 Total 2,356,035 |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 3 Months Ended |
Mar. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | NOTE 10 – REDEEMABLE CONVERTIBLE PREFERRED STOCK On May 17, 2016, the Company entered into a securities purchase agreement with an accredited investor to place 12,800 redeemable convertible preferred shares (the “Preferred Stock”), par value ₩ 10,000 per share, in the aggregate principal amount of ₩ 640,000 thousand (the “Transaction”). The proceeds from sales of the Preferred Stock, net of issuance cost of ₩ 3,993 thousand were fully received at June 8, 2016. On May 30, 2017, all redeemable convertible preferred shares were converted into 12,800 shares of common stock of e-Marine Co. Ltd. On July 25, 2017, as a result of the Share Exchange, the Company acquired all of the issued and outstanding equity interests of e-Marine Co. Ltd., and e-Marine Co., Ltd. became the Company’s wholly-owned subsidiary. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE 11 – STOCKHOLDERS’ DEFICIT Authorized and Outstanding Capital Stock The Company authorized 300,000,000 shares of common stock, par value $0.001, of which 22,927,992 are currently issued and outstanding. The Company also has 10,000,000 shares of “blank check” preferred stock, par value $0.001 per share. There are currently no shares of preferred stock outstanding. Common Stock The shareholders of common stock (the “Shareholders”) have equal ratable rights to dividends from funds legally available therefore, when, as and if declared by the Board of Directors and are entitled to share ratably in all of the Company’s assets available for distribution to the Shareholders upon the liquidation, dissolution or winding up of business. The Shareholders do not have preemptive, subscription or conversion rights. The Shareholders are entitled to one vote per share on all matters which they are entitled to vote upon at all meetings of the Shareholders. The Shareholders do not have cumulative voting rights, which would allow the Shareholders of more than 50% of outstanding voting securities to elect all of directors. The payment of dividends, if any, in the future rests within the sole discretion of the Board of Directors and will depend, among other things, upon earnings, capital requirements and financial condition, as well as other relevant factors. The Company has not paid any dividends since its inception and do not intend to pay any cash dividends in the foreseeable future, but intend to retain all earnings, if any, for use in its business. Blank Check Preferred Stock The Board of Directors will be authorized, subject to any limitations prescribed by law, without further vote or action by the Shareholders, to issue from time to time preferred stock in one or more series. Each series of preferred stock will have the number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the Board of Directors, which may include, among other things, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights. Warrants As of March 31, 2018, the Company has outstanding warrants to purchase up to an aggregate of 11,816,688 shares of common stock, par value $0.001 per share, for a period of three years from the date of issuance, July 25, 2017, at an exercise price of $0.60 per share, subject to adjustments as set forth in the warrant. The Company also has outstanding warrants to purchase up to an aggregate of 1,100,000 shares of common stock, par value $0.001 per share, for a period of three years from the date of issuance, July 25, 2017, at an exercise price of $0.08 per share, subject to adjustments as set forth in the warrant. The Company may issue warrants to non-employees in capital raising transactions or for services. In accordance with ASC 718, “Compensation—Stock Compensation”, the cost of warrants issued to non-employees is measured on the grant date based on the fair value. The fair value is determined using the Black-Scholes option pricing model. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period. For the year ended December 31, 2017, ₩ Private Placement Offering On July 25, 2017, the Company entered into a subscription agreement with selected accredited investors. Pursuant to the terms of the subscription agreement, the Company offered in a private placement $2,250,000 of units. Each unit has a purchase price of $0.50 and consisted of (i) one (1) share of the Company’s common stock, par value $0.001 per share; and (ii) warrants to purchase two and one-half (2.5) shares of the Company’s common stock. The warrants are exercisable for a period of three (3) years from the date of issuance at an exercise price of $0.60 per share, subject to adjustment as provided in the agreement evidencing the warrants. The offering closed on July 25, 2017. At the closing, the Company received subscriptions for the full offering of $2,250,000, with gross proceeds of $1,765,000 (approximately ₩ Since the closing, the Company received gross proceeds in the amount of $165,000 (approximately ₩ On March 23, 2018, the Company entered into a subscription agreement with selected accredited investors. Pursuant to the terms of the Subscription Agreement, the Company sold in a private placement an aggregate of 866,675 units at a purchase price of $0.60 per unit. Each unit consists of (i) one (1) share of the Company’s common stock, par value $0.001 per share; and (ii) warrants to purchase two and one-half (2.5) shares of the Company’s common stock. The warrants are exercisable for a period of three (3) years from the date of issuance at an exercise price of $0.70 per share, subject to adjustment as provided in the agreement evidencing the warrants. At closing, the Company issued an aggregate of 866,675 shares and 2,166,688 warrants for total gross proceeds of $520,005. Consulting Agreement On July 25, 2017, the Company entered into a consulting agreement (the “Consulting Agreement”) with Peach Management LLC, a limited liability company organized under the laws of the Commonwealth of Puerto Rico (“Consultant”), for a term of twenty four months, effective as of July 25, 2017 (the “Term”). Pursuant to the terms of the Consulting Agreement, Consultant will assist the Company with introductions to investor relation firms located within and outside the United States to develop and implement capital markets messaging reflected in press releases, shareholder letters, PowerPoint presentations, social media and traditional media (the “Services”) during the Term. In consideration of the Services to be rendered by Consultant, the Company shall issue to Consultant warrants to purchase up to 1,100,000 shares of the Company’s common stock, par value $0.001 per share (the “Consultant Warrants”). The Consultant Warrants shall have a term of three years and have an exercise price equal to $0.08 per share. In connection with the issuance of these warrants, the Company charged approximately ₩ The fair value of stock warrants was determined at the date of grant using the Black-Scholes option pricing model (the “Black-Scholes model”) The Black-Scholes model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. The expected term represents the period of time that stock-based compensation awards granted are expected to be outstanding and is estimated based on considerations including the vesting period, contractual term and anticipated employee exercise patterns. Expected volatility is based on the historical volatility of the Company’s stock. The risk-free rate is based on the U.S. Treasury yield curve in relation to the contractual life of stock-based compensation instrument. The dividend yield assumption is based on historical patterns and future expectations for the Company dividends. The following table includes the estimates and assumptions used in the Black-Scholes model: Stock price $ 0.57 Exercise price $ 0.08 Contractual term (Years) 3 Volatility 70.22 % Risk-free rate 1.53 % Expected dividend rate 0.00 % Other Issuances In connection with the Exchange Agreement and Subscription Agreement, the Company issued to RedChip Companies, Inc. and Sichenzia Ross Ference Kesner LLP an aggregate of 2,200,000 shares of the Company’s common stock, par value $0.001 per share. The fair value of such shares issued is approximately ₩ |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 – INCOME TAXES The provision for income taxes consisted of the following (in thousands of Korean Won): March 31, 2018 March 31, 2017 Current ₩ - ₩ - Deferred (2,930 ) - Total ₩ (2,930) ₩ - The table below summarizes the differences between the Company’s effective tax rate and the statutory federal rate as follows for the three months ended March 31, 2018 and 2017: March 31, 2018 March 31, 2017 Income taxes at Federal statutory rate 21.00 % 34.00 % Foreign tax rate differential 1.00 % (12.00 )% Change in valuation allowance (22.00 )% (22.00 )% Other (3.24 )% - % Effective tax rate (3.24 )% - % |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13 – RELATED PARTY TRANSACTIONS As of March 31, 2018 and December 31, 2017, the Company loaned ₩ nil and ₩ 125,646 thousand, respectively to the Company’s officers and employees. The loans receivable bear an interest of 6.9% and are redeemable on demand. The Company borrowed ₩ 53,000 thousand from Min Sik Park, Senior Vice President, at December 31, 2015 with the maturity of December 30, 2018. The borrowings bear an interest at 9.50 % per annum. At March 31, 2018 and December 31, 2017, the balance for the borrowings was ₩ 14,289 thousand and ₩ 18,895 thousand, respectively. The Company borrowed ₩ 141,216 thousand from Ung Gyu Kim, President, at February 26, 2018 with the maturity of February 25, 2019. The borrowings bear an interest at 4.60 % per annum. At March 31, 2018 and December 31, 2017, the balance for the borrowings was ₩ 111,826 thousand and nil, respectively |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14 – COMMITMENTS AND CONTINGENCIES Maintenance Bond In connection with service agreements with certain customers, the Company is required to provide a maintenance bond to guarantee the maintenance for a specified period of time following completion of service. The Company purchases maintenance bonds from third-party guarantors and is not exposed to contingent liabilities. Legal Proceedings From time to time the Company may be named in claims arising in the ordinary course of business. Currently, no legal proceedings, government actions, administrative actions, investigations or claims are pending against the Company or involve the Company that, in the opinion of management, could reasonably be expected to have a material adverse effect on its business and financial condition except for the lawsuit against Shinwoo E&D Co., Ltd. (“Shinwoo”). There was an unpaid amount due ₩ 84,095,000 from Shinwoo in dispute as of December 31, 2017. The Company filed a lawsuit and the ruling by the district court at January 18, 2018 was in favor of the Company. Shinwoo appealed against the court decision at February 1, 2018. The Company believes it is probable that it will not suffer from an adverse outcome related to the case. The Company has not recorded any reserve related to this dispute as of March 31, 2018. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | NOTE 15 — CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of accounts receivable. Credit risk with respect to trade accounts receivable was concentrated with five and three of the Company’s customers in March 31, 2018 and December 31, 2017, respectively. At March 31, 2018, Research Institute of Medium& small Shipbuilding, Shinwoo E&D Co., Ltd., Hyundai Heavy Industries Co., Ltd., Hyundai Electric & Energy System Co., Ltd. and Force Maker Co., LTD. represented 20%, 17%, 15%, 12% and 10% of accounts receivable outstanding. At December 31, 2017, Naval Logistics Command, Hyundai Heavy Industries Co., Ltd. and Shinwoo E&D Co., Ltd. represented 38%, 22% and 17% of accounts receivable outstanding. The Company performs ongoing credit evaluations of its customers’ financial condition to mitigate its credit risk. The deterioration of the financial condition of its major customers could adversely impact the Company’s operations. From time to time where the Company determines that circumstances warrant, the Company extends payment terms beyond its standard payment terms. During the period ended March 31, 2018, Naval Logistics Command and National Information Society Agency represented 37% and 17% of the Company’s net sales. During the period ended March 31, 2017, Hyundai Heavy Industries, Gaon IT Co., Ltd. and Donghae Regional Fisheries Management Office represented 24%, 14% and 12% of the Company’s net sales. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 — SUBSEQUENT EVENTS The Company has evaluated events that have occurred after the balance sheet date but before the consolidated financial statements are issued and determined that there were no subsequent events or transactions that required recognition or disclosure in the consolidated financial statements. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share are calculated in accordance with Accounting Standards Codification (“ASC”) 260 “Earnings Per Share,” which provides for the calculation of “basic” and “diluted” earnings (loss) per share. Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of common shares issuable upon exercise of stock options. The following securities were not included in the diluted net loss per share calculation because their effect was anti-dilutive for the years presented. March 31, 2018 March 31, 2017 Redeemable convertible preferred stock - 12,800 Common stock warrants 12,916,688 - Potential dilutive shares 12,916,688 12,800 These shares were excluded due to their antidilutive effect. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). This ASU will increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Certain qualitative and quantitative disclosures are required, as well as a retrospective recognition and measurement of impacted leases. This ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating this ASU to determine its impact on the Company’s operations, financial position, cash flows and disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to reporting periods beginning after December 15, 2017, with early adoption permitted for reporting periods beginning after December 15, 2016. Subsequently, FASB issued ASUs in 2016 containing implementation guidance related to ASU 2014-09, including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which is intended to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance; and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which contains certain provision and practical expedients in response to identified implementation issues. The Company has adopted ASU 2014-09 and related ASUs on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt these ASUs. On January 1, 2018, the Company adopted ASU 2014-09, using the full retrospective method, which requires reporting entities to apply the standard as of the earliest period presented in their financial statements. The Company completed its review of its material revenue streams and determined that the adoption of Topic 606 did not have a material impact on the Company’s condensed consolidated statements of operations and condensed consolidated balance sheets. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 along with amending other parts of the goodwill impairment test. Under ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value with the loss not exceeding the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. At adoption, this update will require a prospective approach. The Company is currently evaluating this ASU to determine its impact on the Company’s operations, financial position, cash flows and disclosures. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were not included in the diluted net loss per share calculation because their effect was anti-dilutive for the years presented. March 31, 2018 March 31, 2017 Redeemable convertible preferred stock - 12,800 Common stock warrants 12,916,688 - Potential dilutive shares 12,916,688 12,800 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The components of inventories are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Finished goods ₩ - ₩ - Raw materials 38,096 6,200 38,096 6,200 Less: Inventory reserve - - Total, net ₩ 38,096 ₩ 6,200 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The components of property and equipment are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Office equipment ₩ 219,980 ₩ 219,980 Fixtures and furniture 48,520 48,520 Other 285,113 285,113 Total, at cost 553,613 553,613 Less: Accumulated depreciation (497,836 ) (493,805 ) Total, net ₩ 55,777 ₩ 59,808 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The components of intangible assets that are carried at cost less accumulated amortization are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Description Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Industrial Property Rights ₩ 5,960 ₩ (4,947) ₩ 1,013 ₩ 5,960 ₩ (4,841) ₩ 1,119 Software 62,782 (62,782 ) - 62,782 (62,782 ) - Customers relationship 500,000 (125,000 ) 375,000 500,000 (100,000 ) 400,000 Other 22,021 (20,206 ) 1,815 22,020 (20,086 ) 1,934 Total ₩ 590,763 ₩ (212,935) ₩ 377,828 ₩ 590,762 ₩ (187,709) ₩ 403,053 |
Schedule of Estimated Future Amortization Expense Related to Intangible Assets | The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2018 (in thousands of Korean Won): Year Ending December 31, 2018 ₩ 75,674 2019 100,873 2020 100,733 2021 100,454 2022 94 Total ₩ 377,828 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The components of the long-term debt, including the current portion, are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Loans from Small & medium Business Corporation borrowed at March 23, 2016 with the maturity of March 22, 2021 and at an interest of 4.22% and 4.39% per annum for 2018 and 2017, respectively, guaranteed by Ung Gyu Kim, President ₩ 500,000 ₩ 500,000 Loans from Small & medium Business Corporation borrowed at February 28, 2017 with the maturity of February 28, 2022 and at an interest of 2.65% per annum, guaranteed by Ung Gyu Kim, President 200,000 200,000 Loans from Kwangju Bank borrowed at September 24, 2015 with the maturity of September 24, 2018 and at an interest of 6.08% per annum for 2018 and 2017, respectively, guaranteed by Ung Gyu Kim, President. The borrowings are secured by the personal property owned by Ung Gyu Kim, President 200,000 230,000 Total 900,000 930,000 Less: current portion (372,630 ) (245,240 ) Total long-term debt less current portion ₩ 527,370 ₩ 684,760 |
Schedule of Future Principal Payments of Long Term Debt | Maturities of the long-term debt for each of the next five years and thereafter are as follows (in thousands of Korean Won): Year Ending March 31, 2019 ₩ 372,630 2020 233,160 2021 233,160 2022 61,050 Total ₩ 900,000 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligation | Information with respect to changes in benefit obligation and the funded status of the plans is as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Change in projected benefit liability Liability at beginning of year ₩ 930,098 ₩ 880,656 Service cost 51,436 226,787 Interest cost 2,793 10,991 Benefit payments (22,081 ) (146,892 ) Prior service cost - - Remeasurement of defined benefit liabilities (13,318 ) (41,444 ) Liability at end of year 948,928 930,098 Plan assets at end of year - - Funded status and net liability recognized ₩ (948,928) ₩ (930,098) |
Schedule of Components of Benefit Expense | The components of benefit expense are as follows (in thousands of Korean Won): March 31, 2018 December 31, 2017 Service cost ₩ 51,436 ₩ 226,787 Interest cost 2,793 10,991 Prior service cost - - Total ₩ 54,229 ₩ 237,778 |
Schedule of Weighted Average Assumption Used | The weighted-average assumptions used to determine projected benefit liability and benefit expense for pension plans are as follows: March 31, 2018 December 31, 2017 Discount rate 3.35 % 3.21 % Expected long-term rate of return on plan assets N/A N/A Rate of compensation increase 2.00 % 2.00 % |
Schedule of Estimated Future Benefit Payments | The estimated future benefit payments are as follows (in thousands of Korean Won): Year Ending December 31, 2018 ₩ 42,950 2019 54,404 2020 49,232 2021 52,988 2022 56,138 Thereafter ₩ 2,100,323 Total 2,356,035 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Estimates and Assumptions Used | The following table includes the estimates and assumptions used in the Black-Scholes model: Stock price $ 0.57 Exercise price $ 0.08 Contractual term (Years) 3 Volatility 70.22 % Risk-free rate 1.53 % Expected dividend rate 0.00 % |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The provision for income taxes consisted of the following (in thousands of Korean Won): March 31, 2018 March 31, 2017 Current ₩ - ₩ - Deferred (2,930 ) - Total ₩ (2,930) ₩ - |
Schedule of Effective Tax Rate | The table below summarizes the differences between the Company’s effective tax rate and the statutory federal rate as follows for the three months ended March 31, 2018 and 2017: March 31, 2018 March 31, 2017 Income taxes at Federal statutory rate 21.00 % 34.00 % Foreign tax rate differential 1.00 % (12.00 )% Change in valuation allowance (22.00 )% (22.00 )% Other (3.24 )% - % Effective tax rate (3.24 )% - % |
Description of Business and O31
Description of Business and Organization (Details Narrative) - KRW (₩) ₩ in Thousands | Jul. 25, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Common stock, shares issued | 22,927,992 | 22,061,317 | |
Common stock, shares outstanding | 22,927,992 | 22,061,317 | |
Pollex, Inc. [Member] | |||
Adjustment of operation | ₩ 0 | ||
Common stock, shares issued | 1,012,233 | ||
Common stock, shares outstanding | 1,012,233 | ||
Number of restricted shares exchange of common stock | 1,026,317 | ||
Share Exchange Agreement [Member] | e-Marine Co., Ltd [Member] | |||
Equity interest, percentage | 100.00% | ||
Share Exchange Agreement [Member] | e-Marine Co., Ltd [Member] | Restricted Stock [Member] | |||
Equity interest shares exchange during the period | 14,975,000 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Gross margin (loss) percentage | 0.35 | 0.36 |
Liquidity Financial Condition33
Liquidity Financial Condition and Management Plans (Details Narrative) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Liquidity Financial Condition And Management Plans | ||||
Cash | ₩ 575,811 | ₩ 109,316 | ₩ 49,267 | ₩ 157,971 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Potential dilutive shares | 12,916,688 | 12,800 |
Redeemable Convertible Preferred Stock [Member] | ||
Potential dilutive shares | 12,800 | |
Common Stock Warrants [Member] | ||
Potential dilutive shares | 12,916,688 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | ||
Raw materials | 38,096 | 6,200 |
Inventory, gross | 38,096 | 6,200 |
Less: Inventory reserve | ||
Total, net | ₩ 38,096 | ₩ 6,200 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - KRW (₩) ₩ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | ₩ 4,031 | ₩ 3,469 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Office equipment | ₩ 219,980 | ₩ 219,980 |
Fixtures and furniture | 48,520 | 48,520 |
Other | 285,113 | 285,113 |
Property and equipment at cost | 553,613 | 553,613 |
Less: Accumulated depreciation | (497,836) | (493,805) |
Property and equipment, net | ₩ 55,777 | ₩ 59,808 |
Goodwill (Details Narrative)
Goodwill (Details Narrative) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | ₩ 1,430,625 | ₩ 1,430,625 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - KRW (₩) ₩ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense for intangible assets | ₩ 25,225 | ₩ 26,711 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Gross Carrying Amount | ₩ 590,763 | ₩ 590,762 |
Accumulated Amortization | (212,935) | (187,709) |
Net Carrying Amount | 377,828 | 403,053 |
Industrial Property Rights [Member] | ||
Gross Carrying Amount | 5,960 | 5,960 |
Accumulated Amortization | (4,947) | (4,841) |
Net Carrying Amount | 1,013 | 1,119 |
Software [Member] | ||
Gross Carrying Amount | 62,782 | 62,782 |
Accumulated Amortization | (62,782) | (62,782) |
Net Carrying Amount | ||
Customers Relationship [Member] | ||
Gross Carrying Amount | 500,000 | 500,000 |
Accumulated Amortization | (125,000) | (100,000) |
Net Carrying Amount | 375,000 | 400,000 |
Other [Member] | ||
Gross Carrying Amount | 22,021 | 22,020 |
Accumulated Amortization | (20,206) | (20,086) |
Net Carrying Amount | ₩ 1,815 | ₩ 1,934 |
Intangible Assets - Schedule 41
Intangible Assets - Schedule of Estimated Future Amortization Expense Related to Intangible Assets (Details) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | ₩ 75,674 | |
2,019 | 100,873 | |
2,020 | 100,733 | |
2,021 | 100,454 | |
2,022 | 94 | |
Total | ₩ 377,828 | ₩ 403,053 |
Debt (Details Narrative)
Debt (Details Narrative) - KRW (₩) ₩ in Thousands | Nov. 03, 2017 | Sep. 29, 2017 | Aug. 04, 2017 | Apr. 19, 2017 | Apr. 18, 2017 | Jul. 18, 2016 | Nov. 04, 2015 | Oct. 08, 2015 | Jun. 02, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Short-term borrowings | ₩ 12,669 | ₩ 148,596 | ||||||||||
Repayments of short term borrowings | 309,736 | |||||||||||
Long term debt | 900,000 | ₩ 930,000 | ||||||||||
Short Term Borrowings One [Member] | Refinancing Agreement [Member] | ||||||||||||
Repayments of short term borrowings | ₩ 26,000 | |||||||||||
Short Term Borrowings One [Member] | Kookmin Bank [Member] | ||||||||||||
Short-term borrowings | ₩ 260,000 | ₩ 234,000 | ₩ 234,000 | |||||||||
Debt instrument maturity date | Oct. 2, 2018 | |||||||||||
Debt instrument, rate of interest | 4.70% | 4.70% | ||||||||||
Short Term Borrowings Two [Member] | Refinancing Agreement [Member] | ||||||||||||
Repayments of short term borrowings | ₩ 26,000 | |||||||||||
Short Term Borrowings Two [Member] | Kookmin Bank [Member] | ||||||||||||
Short-term borrowings | ₩ 260,000 | ₩ 234,000 | ₩ 234,000 | |||||||||
Debt instrument maturity date | Nov. 2, 2018 | |||||||||||
Debt instrument, rate of interest | 5.05% | 5.05% | ||||||||||
Short Term Borrowings Three [Member] | Woori Bank [Member] | ||||||||||||
Short-term borrowings | ₩ 1,000,000 | ₩ 1,000,000 | ₩ 1,000,000 | |||||||||
Debt instrument maturity date | Jun. 1, 2018 | |||||||||||
Debt instrument, rate of interest | 4.27% | 4.27% | ||||||||||
Short Term Borrowings Four [Member] | Woori Bank [Member] | ||||||||||||
Debt instrument, rate of interest | 14.00% | 14.00% | ||||||||||
Bank overdraft | ₩ 60,820 | ₩ 60,820 | ||||||||||
Debt collateralized in savings account | 5,000 | |||||||||||
Short Term Borrowings Five [Member] | Suhyup Bank [Member] | ||||||||||||
Short-term borrowings | ₩ 500,000 | ₩ 464,000 | ₩ 464,000 | |||||||||
Debt instrument maturity date | Jul. 18, 2018 | |||||||||||
Debt instrument, rate of interest | 2.50% | 2.50% | ||||||||||
Debt collateralized in savings account | ₩ 3,000 | |||||||||||
Short Term Borrowings Six [Member] | Hana Bank [Member] | ||||||||||||
Short-term borrowings | ₩ 300,000 | ₩ 300,000 | ₩ 300,000 | |||||||||
Debt instrument maturity date | Aug. 1, 2018 | |||||||||||
Debt instrument, rate of interest | 2.56% | 2.56% | ||||||||||
Debt collateralized in savings account | ₩ 300,000 | |||||||||||
Short Term Borrowings Seven [Member] | GMT Co., Ltd. [Member] | ||||||||||||
Short-term borrowings | ₩ 550,000 | 200,000 | ₩ 200,000 | |||||||||
Debt instrument maturity date | Nov. 30, 2017 | |||||||||||
Debt instrument, rate of interest | 600.00% | |||||||||||
Short Term Borrowings Eight [Member] | GNC Co., Ltd. [Member] | ||||||||||||
Short-term borrowings | ₩ 300,000 | ₩ 300,000 | ₩ 300,000 | |||||||||
Debt instrument maturity date | Nov. 30, 2017 | |||||||||||
Debt instrument, rate of interest | 600.00% |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Total | ₩ 900,000 | ₩ 930,000 |
Less: current portion | (372,630) | (245,240) |
Total long-term debt less current portion | 527,370 | 684,760 |
Long Term Debt One [Member] | ||
Total | 500,000 | 500,000 |
Long Term Debt Two [Member] | ||
Total | 200,000 | 200,000 |
Long Term Debt Three [Member] | ||
Total | ₩ 200,000 | ₩ 230,000 |
Debt - Schedule of Long-term 44
Debt - Schedule of Long-term Debt (Details) (Parenthetical) | Feb. 28, 2017 | Mar. 23, 2016 | Sep. 24, 2015 | Mar. 31, 2018 | Dec. 31, 2017 |
Long Term Debt One [Member] | |||||
Debt instrument maturity date | Mar. 22, 2021 | ||||
Debt instrument interest rate | 4.22% | 4.39% | |||
Long Term Debt Two [Member] | |||||
Debt instrument maturity date | Feb. 28, 2022 | ||||
Debt instrument interest rate | 2.65% | ||||
Long Term Debt Three [Member] | |||||
Debt instrument maturity date | Sep. 24, 2018 | ||||
Debt instrument interest rate | 6.08% | 6.08% | |||
Long Term Debt Three [Member] | 2018 [Member] | |||||
Debt instrument interest rate | 6.06% |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments of Long Term Debt (Details) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | ₩ 372,630 | |
2,020 | 233,160 | |
2,021 | 233,160 | |
2,022 | 61,050 | |
Total | ₩ 900,000 | ₩ 930,000 |
Pension Plans - Schedule of Cha
Pension Plans - Schedule of Changes in Benefit Obligation (Details) - KRW (₩) ₩ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Liability at beginning of year | ₩ 930,098 | ₩ 880,656 |
Service cost | 51,436 | 226,787 |
Interest cost | 2,793 | 10,991 |
Benefit payments | (22,081) | (146,892) |
Prior service cost | ||
Remeasurement of defined benefit liabilities | (13,318) | (41,444) |
Liability at end of year | 948,928 | 930,098 |
Plan assets at end of year | ||
Funded status and net liability recognized | ₩ (948,928) | ₩ (930,098) |
Pension Plans - Schedule of Com
Pension Plans - Schedule of Components of Benefit Expense (Details) - KRW (₩) ₩ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | ₩ 51,436 | ₩ 226,787 | |
Interest cost | 2,793 | 10,991 | |
Prior service cost | |||
Total | ₩ 54,229 | ₩ 11,502 | ₩ 237,778 |
Pension Plans - Schedule of Wei
Pension Plans - Schedule of Weighted Average Assumption Used (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Discount rate | 3.35% | 3.21% |
Expected long-term rate of return on plan assets | 0.00% | 0.00% |
Rate of compensation increase | 2.00% | 2.00% |
Pension Plans - Schedule of Est
Pension Plans - Schedule of Estimated Future Benefit Payments (Details) ₩ in Thousands | Mar. 31, 2018KRW (₩) |
Retirement Benefits [Abstract] | |
2,018 | ₩ 42,950 |
2,019 | 54,404 |
2,020 | 49,232 |
2,021 | 52,988 |
2,022 | 56,138 |
Thereafter | 2,100,323 |
Total | ₩ 2,356,035 |
Redeemable Convertible Prefer50
Redeemable Convertible Preferred Stock (Details Narrative) - Redeemable Convertible Preferred Stock [Member] - KRW (₩) ₩ / shares in Units, ₩ in Thousands | Jun. 08, 2016 | May 30, 2017 | May 17, 2016 |
Number of preferred shares converted into common shares | 12,800 | ||
Securities Purchase Agreement [Member] | Accredited Investor [Member] | |||
Number of preferred stock shares sold | 12,800 | ||
Preferred stock par value per share | ₩ 10,000 | ||
Preferred stock principal amount | ₩ 640,000 | ||
Proceeds from sale of preferred stock | ₩ 3,993 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) $ / shares in Units, ₩ in Thousands, $ in Thousands | Mar. 23, 2018KRW (₩)shares | Jul. 25, 2017KRW (₩)shares | Jul. 25, 2017USD ($)$ / sharesshares | Mar. 31, 2018KRW (₩)shares | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017KRW (₩) | Dec. 31, 2017KRW (₩) | Mar. 23, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||||||
Common stock, shares issued | 22,927,992 | 22,061,317 | |||||||
Common stock, shares outstanding | 22,927,992 | 22,061,317 | |||||||
Common stock voting rights | The Shareholders are entitled to one vote per share on all matters which they are entitled to vote upon at all meetings of the Shareholders. The Shareholders do not have cumulative voting rights, which would allow the Shareholders of more than 50% of outstanding voting securities to elect all of directors. | The Shareholders are entitled to one vote per share on all matters which they are entitled to vote upon at all meetings of the Shareholders. The Shareholders do not have cumulative voting rights, which would allow the Shareholders of more than 50% of outstanding voting securities to elect all of directors. | |||||||
Number of outstanding warrants to purchase common stock | 8,825,000 | ||||||||
Warrant expenses | ₩ | ₩ 620,994 | ||||||||
Proceeds from private placement | ₩ | ₩ 557,336 | ||||||||
Gross proceeds from subscriptions | ₩ | ₩ 2,009,844 | 184,190 | |||||||
Number of common stock shares issued | 3,530,000 | 3,530,000 | |||||||
Warrants issued for professional service | ₩ | |||||||||
Number of common stock shares issued for services | ₩ | |||||||||
USD [Member] | |||||||||
Proceeds from subscriptions | $ | $ 2,250 | ||||||||
Gross proceeds from subscriptions | $ | $ 1,765 | $ 165 | |||||||
Investor [Member] | |||||||||
Number of outstanding warrants to purchase common stock | 825,000 | ||||||||
Number of common stock shares issued | 330,000 | 330,000 | |||||||
Consultants [Member] | |||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||
Number of common stock shares issued for services, shares | 2,200,000 | 2,200,000 | |||||||
Number of common stock shares issued for services | ₩ | ₩ 1,417,159 | ||||||||
Subscription Agreement [Member] | Investor [Member] | |||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||
Number of outstanding warrants to purchase common stock | 2.5 | ||||||||
Warrant exercise price | $ / shares | $ 0.60 | ||||||||
Proceeds from private placement | ₩ | ₩ 2,250 | ||||||||
Purchase price of each unit | $ / shares | $ 0.50 | ||||||||
Warrants exercisable, term | 3 years | 3 years | |||||||
Subscription Agreement [Member] | Accredited Investors [Member] | |||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||
Number of outstanding warrants to purchase common stock | 2.5 | ||||||||
Warrants, term | 3 years | ||||||||
Warrant exercise price | $ / shares | $ 0.70 | ||||||||
Purchase price of each unit | $ / shares | $ 0.60 | ||||||||
Number of common stock shares issued | 866,675 | ||||||||
Number of warrants issued during the period | 2,166,688 | ||||||||
Gross proceed from warrants | ₩ | ₩ 520,005 | ||||||||
Consulting Agreement [Member] | Peach Management LLC [Member] | |||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||
Number of outstanding warrants to purchase common stock | 1,100,000 | ||||||||
Warrants, term | 3 years | 3 years | |||||||
Warrant exercise price | $ / shares | $ 0.08 | ||||||||
Warrants issued for professional service | ₩ | ₩ 620,994 | ||||||||
Capital Stock [Member] | |||||||||
Common stock, shares authorized | 300,000,000 | ||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||
Common stock, shares issued | 22,927,992 | ||||||||
Common stock, shares outstanding | 22,927,992 | ||||||||
Blank Check Preferred Stock [Member] | |||||||||
Preferred stock, shares authorized | 10,000,000 | ||||||||
Preferred stock, par value | $ / shares | $ 0.001 | ||||||||
Preferred stock, shares outstanding | |||||||||
Warrants [Member] | |||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||
Number of outstanding warrants to purchase common stock | 11,816,688 | ||||||||
Warrants, term | 3 years | 3 years | |||||||
Warrant exercise price | $ / shares | $ 0.60 | ||||||||
Warrants One [Member] | |||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||
Number of outstanding warrants to purchase common stock | 1,100,000 | ||||||||
Warrants, term | 3 years | 3 years | |||||||
Warrant exercise price | $ / shares | $ 0.08 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Estimates and Assumptions Used (Details) | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Equity [Abstract] | |
Stock price | $ 0.57 |
Exercise price | $ 0.08 |
Contractual term (Years) | 3 years |
Volatility | 70.22% |
Risk-free rate | 1.53% |
Expected dividend rate | 0.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - KRW (₩) ₩ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Current | ||
Deferred | (2,930) | |
Total | ₩ (2,930) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income taxes at Federal statutory rate | 21.00% | 34.00% |
Foreign tax rate differential | 1.00% | (12.00%) |
Change in valuation allowance | (22.00%) | (22.00%) |
Other | (3.24%) | 0.00% |
Effective tax rate | (3.24%) | 0.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - KRW (₩) ₩ in Thousands | Feb. 26, 2018 | Dec. 31, 2015 | Mar. 31, 2018 | Dec. 31, 2017 |
Due from related parties | ₩ 164,000 | |||
Due to related party | 14,289 | 18,895 | ||
Officers and Employees [Member] | ||||
Due from related parties | 125,646 | |||
Debt instrument, interest rate | 6.90% | |||
Min Sik Park [Member] | ||||
Debt instrument, interest rate | 9.50% | |||
Due to related party | ₩ 53,000 | ₩ 14,289 | 18,895 | |
Debt instrument maturity date | Dec. 30, 2018 | |||
Ung Gyu Kim [Member] | ||||
Due to related party | ₩ 141,216 | ₩ 111,826 | ||
Debt instrument maturity date | Feb. 25, 2019 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - KRW (₩) ₩ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Due from related parties | ₩ 164,000 | |
Shinwoo E&D Co., Ltd. [Member] | ||
Due from related parties | ₩ 84,095 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Research Institute of Medium & Small Shipbuilding [Member] | Accounts Receivable [Member] | |||
Concentration risk percentage | 20.00% | ||
Shinwoo E&D Co., Ltd. [Member] | Accounts Receivable [Member] | |||
Concentration risk percentage | 17.00% | 17.00% | |
Hyundai Heavy Industries Co., Ltd., [Member] | Accounts Receivable [Member] | |||
Concentration risk percentage | 15.00% | ||
Hyundai Heavy Industries Co., Ltd., [Member] | Sales Revenue, Net [Member] | |||
Concentration risk percentage | 24.00% | ||
Hyundai Electric & Energy System Co., Ltd [Member] | Accounts Receivable [Member] | |||
Concentration risk percentage | 12.00% | ||
Force Maker Co., LTD. [Member] | Accounts Receivable [Member] | |||
Concentration risk percentage | 10.00% | ||
Naval Logistics Command [Member] | Accounts Receivable [Member] | |||
Concentration risk percentage | 38.00% | ||
Naval Logistics Command [Member] | Sales Revenue, Net [Member] | |||
Concentration risk percentage | 37.00% | ||
National Information Society Agency [Member] | Accounts Receivable [Member] | |||
Concentration risk percentage | 22.00% | ||
National Information Society Agency [Member] | Sales Revenue, Net [Member] | |||
Concentration risk percentage | 17.00% | ||
Gaon IT Co., Ltd. [Member] | Sales Revenue, Net [Member] | |||
Concentration risk percentage | 14.00% | ||
Donghae Regional Fisheries Management Office [Member] | Sales Revenue, Net [Member] | |||
Concentration risk percentage | 12.00% |