Emarine Global (EMRN) 10-Q 20 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 17, 2019
Document And Entity Information
Entity Registrant Name	EMARINE GLOBAL INC.
Entity Central Index Key	0001178377
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		23,159,105
Trading Symbol	EMRN
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

Consolidated Balance Sheets

Consolidated Balance Sheets - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	₩ 181,470	₩ 126,406
Short-term financial instruments	27,000	18,000
Accounts receivable, net of allowance for doubtful accounts of ?11,227 as of March 31, 2019 and December 31, 2018	581,610	546,671
Inventories	61,934	7,217
Other current assets	42,026	48,608
Total Current Assets	894,041	746,902
Property and equipment, net	307,155	44,224
Goodwill	1,430,625	1,430,625
Intangible assets, net	277,005	302,155
Deposits	103,199	103,199
Total Assets	3,012,025	2,627,105
CURRENT LIABILITIES:
Accounts payable	1,203,100	1,393,676
Nontrade payables	1,502,310	1,307,079
Other current liabilities	256,768	238,073
Short-term borrowings	2,350,091	2,385,545
Loans from related parties	71,279	45,980
Current portion of long-term debt	233,160	222,260
Total Current Liabilities	5,616,708	5,592,613
Long-term debt	394,210	452,500
Lease liabilities	266,781
Accrued benefit pension liability	1,220,105	1,180,730
Total Liabilities	7,497,804	7,225,843
STOCKHOLDERS' DEFICIT :
Common stock, $0.001 par value, 300,000,000 shares authorized, 22,927,992 shares issued and outstanding as of March 31, 2019 and December 31, 2018	26,198	26,198
Additional paid-in capital	7,229,971	7,221,875
Accumulated other comprehensive loss	(219,159)	(215,614)
Accumulated deficit	(11,522,789)	(11,631,198)
Total Stockholders' Deficit	(4,485,779)	(4,598,739)
Total Liabilities and Stockholders' Deficit	₩ 3,012,025	₩ 2,627,104

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) ₩ in Thousands	Mar. 31, 2019KRW (₩)shares	Dec. 31, 2018KRW (₩)shares
Statement of Financial Position [Abstract]
Allowance for doubtful accounts, accounts receivable | ₩	₩ 11,227	₩ 11,227
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	22,927,992	22,927,992
Common stock, shares outstanding	22,927,992	22,927,992

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) ₩ in Thousands	3 Months Ended
	Mar. 31, 2019$ / shares	Mar. 31, 2019KRW (₩)shares	Mar. 31, 2018$ / shares	Mar. 31, 2018KRW (₩)shares
Revenue
Total revenue		₩ 1,280,331		₩ 1,309,483
Cost of revenue
Total cost of revenue		733,464		855,015
Gross margin		546,867		454,468
Selling, general and administrative expenses		324,334		394,281
Research and development		71,860		29,810
Income from operations		150,673		30,377
Other expense:
Interest expense, net		(39,698)		(39,817)
Other expense, net		(4,186)		(4,040)
Total other expense		(43,884)		(43,857)
Income (Loss) before provision for income taxes		106,789		(13,480)
Income tax benefit		(1,621)		(2,930)
Net income (loss)		₩ 108,409		₩ (10,550)
Basic net income (loss) per share | $ / shares	$ 4.73		$ (0.48)
Diluted net income (loss) per share | $ / shares	$ 3.92		$ (0.48)
Basic weighted average shares outstanding | shares		22,927,992		22,119,095
Diluted weighted average shares outstanding | shares		27,680,416		22,119,095
Net income (loss)		₩ 108,409		₩ (10,550)
Other comprehensive income (loss):
Foreign exchange translation gain (loss)		(7,855)		1,783
Remeasurement of pension liabilities		4,309		10,388
Other comprehensive income (loss), net of tax:		(3,546)		12,171
Comprehensive income		104,864		1,621
Product [Member]
Revenue
Total revenue		558,665		249,001
Cost of revenue
Total cost of revenue		251,520		182,387
Service [Member]
Revenue
Total revenue		721,666		1,060,482
Cost of revenue
Total cost of revenue		₩ 481,944		₩ 672,628

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - KRW (₩) ₩ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	₩ 108,409	₩ (10,550)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	29,001	29,256
Pension plan expenses	55,668	54,229
Deferred income taxes	(1,621)	(2,930)
Foreign currency loss	1,568	(1,534)
Changes in operating assets and liabilities:
Accounts receivable	(34,939)	(5,154)
Inventories	(54,718)	(31,896)
Other current assets	6,582	(1,758)
Deposits		20,300
Accounts payable	(192,144)	(381,746)
Nontrade payables	209,477	34,506
Other current liabilities	18,695	13,434
Pension benefits payments	(8,926)	(22,081)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	137,052	(305,925)
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in loans to related parties		163,962
Purchase of short-term financial instruments	(9,000)
Proceeds from disposals of short-term financial instruments		281,000
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(9,000)	445,965
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from private placement, net		557,336
Drawdown of short-term borrowings		12,669
Repayment of short-term borrowings	(35,455)	(309,736)
Repayment of current portion of long-term debt	(47,390)	(30,000)
Increase in loans from related parties	200,100	111,826
Repayment of loans from related parties	(189,047)	(4,607)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(71,792)	337,488
Effect of exchange rate on cash and cash equivalents	(1,195)	(11,034)
NET INCREASE IN CASH AND CASH EQUIVALENTS	55,064	466,494
CASH AND CASH EQUIVALENTS- beginning of year	126,406	109,316
CASH AND CASH EQUIVALENTS- end of year	181,470	575,810
Cash paid for:
Interest	39,723	40
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Recognition of right-of-use assets and lease liabilities	107,387
Increase in loans from related parties due to payment of general expenses by related parties	₩ 14,246

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Deficit - KRW (₩) ₩ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	₩ 25,265	₩ 6,577,829	₩ (56,592)	₩ (10,492,539)	₩ (3,946,037)
Balance, shares at Dec. 31, 2017	22,061,317
Private placement	₩ 933	558,997			559,930
Private placement, shares	866,675
Foreign exchange translation gain			1,783		1,783
Remeasurement of pension liabilities			10,389		10,388
Net loss				(10,551)	(10,550)
Balance at Mar. 31, 2018	₩ 26,198	7,136,826	(44,421)	(10,503,089)	(3,384,486)
Balance, shares at Mar. 31, 2018	22,927,992
Balance at Dec. 31, 2018	₩ 26,198	7,221,875	(215,614)	(11,631,198)	(4,598,739)
Balance, shares at Dec. 31, 2018	22,927,992
Foreign exchange translation gain		8,097	(7,855)		242
Remeasurement of pension liabilities			4,309		4,309
Net loss				108,409	108,409
Balance at Mar. 31, 2019	₩ 26,198	₩ 7,229,972	₩ (219,160)	₩ (11,522,789)	₩ (4,485,779)
Balance, shares at Mar. 31, 2019	22,927,992

Description of Business and Org

Description of Business and Organization	3 Months Ended
	Mar. 31, 2019
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 ￦ 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, 2019
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, 2019, the Company had cash of ￦ During the three months ended March 31, 2019 and the year ended December 31, 2018, 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, 2019
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 results for the condensed consolidated statement of operations are not necessarily indicative of results to be expected for the year ending December 31, 2019 or for any future interim period. The condensed consolidated balance sheet at March 31, 2019 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, 2018, and notes thereto included in the Company’s annual report on Form 10-K filed on April 15, 2019. 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 15, 2019. 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 table shows the calculation of diluted shares using the treasury stock method: March 31, 2019 March 31, 2018 Shares used in computation of basic income per shares 22,927,992 - Total dilutive effect of stock options 4,991,642 - Shares used in computation of diluted income per share 27,919,634 - The diluted share base excludes the following incremental shares due to their antidilutive effect: March 31, 2019 March 31, 2018 Common stock warrants - 12,916,688 Potential dilutive shares - 12,916,688 Recent Accounting Pronouncements In February 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. These ASUs are effective for fiscal years and interim periods within those years beginning after December 15, 2018, with early adoption permitted. On January 1, 2019, the Company adopted these ASUs, using modified retrospective transition approach. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The adopted the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. On adoption, the Company recognized additional operating liabilities of $ ￦ 107,387 thousand, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. 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, 2019
Inventory Disclosure [Abstract]
Inventories	NOTE 4 — INVENTORIES The components of inventories are as follows (in thousands of Korean Won): March 31, 2019 December 31, 2018 Finished goods ￦ 861 ￦ - Raw materials 61,073 7,217 61,934 7,217 Less: Inventory reserve - - Total, net ￦ 61,934 ￦ 7,217

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2019
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, 2019 December 31, 2018 Office equipment ￦ 219,980 ￦ 219,980 Fixtures and furniture 48,520 48,520 Other 285,113 285,112 Total, at cost 553,613 553,612 Less: Accumulated depreciation (513,239 ) (509,388 ) Total, net ￦ 40,374 ￦ 44,224 Depreciation expense amounted to ￦ ￦ The components of lease property are as follows (in thousands of Korean Won): March 31, 2019 December 31, 2018 Right-of-use lease assets - operating ￦ 450,933 ￦ - Less: Accumulated depreciation (184,152 ) - Right-of-use lease assets - operating, net ￦ 266,781 ￦ - Amortization expense amounted to ￦

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2019
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 ￦ 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, 2019
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, 2019 December 31, 2018 Description Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Industrial Property Rights ￦ 5,960 ￦ (5,331 ) ￦ 629 ￦ 5,960 ￦ (5,260 ) ￦ 700 Software 62,782 (62,782 ) - 62,782 (62,782 ) - Customers relationship 500,000 (225,000 ) 275,000 500,000 (200,000 ) 300,000 Other 22,021 (20,645 ) 1,376 22,020 (20,565 ) 1,455 Total ￦ 590,763 ￦ (313,758 ) ￦ 277,005 ￦ 590,762 ￦ (288,607 ) ￦ 302,155 Amortization expense for intangible assets was ￦ ￦ The following table outlines the estimated future amortization expense related to intangible assets held as of March 31, 2019 (in thousands of Korean Won): Year Ending December 31, 2019 ￦ 75,674 2020 100,794 2021 100,479 2022 58 Total ￦ 277,005

Debt

Debt	3 Months Ended
	Mar. 31, 2019
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, 2019. The borrowings bear an interest at 6.09% and 4.70% per annum for 2018 and 2017, respectively. The Company paid ￦ 26,000 thousand and entered into a refinancing agreement at October 2, 2018. At March 31, 2019 and December 31, 2018, 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 6.13% and 5.05% per annum for 2018 and 2017, respectively. The Company paid ￦ 26,000 thousand and entered into a refinancing agreement at November 2, 2018. At March 31, 2019 and December 31, 2018, 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 4.79% and 4.27% per annum for 2018 and 2017. The Company paid ￦ 1,000,000 thousand and entered into an extension agreement at May 1, 2019 through which the maturity was extended one more year. At March 31, 2019 and December 31, 2018, the balance for the borrowings was ￦ 900,000 thousand and ￦ 900,000 thousand, respectively. The borrowings are guaranteed by Korea Technology Finance Corporation, a government-funded institution. The Company borrowed ￦ 500,000 thousand from Suhyup Bank at July 18, 2016 with the original maturity of July 18, 2018. The maturity was extended 1 year, which is July 18, 2019. The borrowings bear an interest at 2.50 % per annum for 2018 and 2017. At March 31, 2019 and December 31, 2018, the balance for the borrowings was ￦ 428,000 thousand and ￦ 428,000 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 ￦ 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, 2019 and December 31, 2018, the balance for the borrowings was ￦ 195,000 thousand. The Company is in negotiation with the lender to extend the maturity. The balance is currently in default. 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, 2019 and December 31, 2018, the balance for the borrowings was ￦ 300,000 thousand. The Company is in negotiation with the lender to extend the maturity. The balance is currently in default. The Company borrowed ￦ 130,000 thousand from Kwangju Bank at September 27, 2018 with the maturity of August 24, 2019. The borrowings bear an interest at 5.65 % per annum for 2018 and 2019. At March 31, 2019 and December 31, 2018, the balance for the borrowings was ￦ 59,091 thousand and ￦ 94,545 thousand, respectively. The borrowings are guaranteed by Ung Gyu Kim, President. As of March 31, 2019 and December 31, 2018, 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, 2019 December 31, 2018 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 4.22% per annum for 2019 and 2018, respectively, guaranteed by Ung Gyu Kim, President ￦ 333,120 ￦ 374,760 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 194,250 200,000 Loans from Small & medium Business Corporation borrowed at August 13, 2018 with the maturity of August 14, 2023 and at an interest of 2.43% per annum, guaranteed by Ung Gyu Kim, President 100,000 100,000 Total 627,370 674,760 Less: current portion (233,160 ) (222,260 ) Total long-term debt less current portion ￦ 394,210 ￦ 452,500 As of March 31, 2019 and December 31, 2018, the estimated fair value of the long-term debt, including the current portion, were ￦ 627,370 and ￦ 674,760, 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, 2020 ￦ 174,870 2021 244,520 2022 141,480 2023 44,340 2024 22,160 Total ￦ 627,370 As of March 31, 2019 and December 31, 2018, 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, 2019
Retirement Benefits [Abstract]
Pension Plans	NOTE 9 – PENSION PLANS The Company has a defined benefit plan 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. The components of benefit expense are as follows (in thousands of Korean Won): March 31, 2019 March 31, 2018 Service cost ￦ 52,083 ￦ 51,436 Interest cost 3,585 2,793 Prior service cost - - Total ￦ 55,668 ￦ 54,229

Stockholders' Deficit

Stockholders' Deficit	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Stockholders' Deficit	NOTE 10 – 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, 2019, the Company has outstanding warrants to purchase up to an aggregate of 12,916,688 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. 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 ￦ 2,009,844 thousand) being received by the Company as of such date. The Company issued a total of 3,530,000 shares and 8,825,000 warrants to purchase up to 8,825,000 shares of the Company’s common stock. Since the closing, the Company received gross proceeds in the amount of $165,000 (approximately ￦ 184,190 thousand), and issued to the relevant investors an aggregate of 330,000 shares and warrants to purchase 825,000 shares. 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 ￦ 620,994 thousand of professional fees to expense. 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 ￦ 1,417,159 thousand and is recorded as additional paid in capital as these shares were issued as the consideration for the capital raising.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 11 – RELATED PARTY TRANSACTIONS The Company borrowed ￦ 141,216 thousand from Ung Gyu Kim, President, at February 25, 2018 with the maturity of June 25, 2019. The borrowings bear an interest at 4.60 % per annum. At March 31, 2019 and December 31, 2018, the balance for the borrowings was ￦ 71,279 thousand and ￦ 45,980, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 12 – COMMITMENTS AND CONTINGENCIES Operating leases The Company entered into noncancelable operating leases for office facilities and vehicles. The leases do not include renewal options and, in the normal course of business, it is expected that these leases will be renewed. Rent expense under the operating leases totaled ￦ 47,921 thousand for the three month period ended March 31, 2019. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of March 31, 2019 (in thousands of Korean Won): Year Ending March 31, 2020 ￦ 115,657 2021 92,590 2022 56,516 2023 15,895 Total ￦ 280,658 March 31, 2019 Lease cost: Operating lease cost ￦ 46,721 Short-term lease cost 1,200 Total lease cost ￦ 47,921 Other information Cash paid for amounts included in the measurement of lease liabilities ￦ 47,921 Operating cash flows from operating leases ￦ 47,921 Weighted-average remaining lease term - operating leases 2.8 years Weighted-average discount rate - operating leases 5.74 % 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 March 31, 2019. 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, 2019.

Concentration of Credit Risk

Concentration of Credit Risk	3 Months Ended
	Mar. 31, 2019
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	NOTE 13 — 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 three and three of the Company’s customers in March 31, 2019 and December 31, 2018, respectively. At March 31, 2019, G2 ICT Co., Ltd., Shinwoo E&D Co., Ltd. and Hanjin Heavy Industries & Construction Co., Ltd represented 20%, 17%, 15%, 12% and 10% of accounts receivable outstanding. At December 31, 2018, G2 ICT Co., Ltd., Shinwoo E&D Co., Ltd., Hyundai Heavy Industries Co., Ltd. and Hanjin Heavy Industries& Construction Co., Ltd. represented 44%, 15%, 13% and 11% 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 three month period ended March 31, 2019, Naval Logistics Command represented 56% of the Company’s net sales. During the three month period ended March 31, 2018, Naval Logistics Command and National Information Society Agency represented 37% and 17% of the Company’s net sales.

Revenue Classes

Revenue Classes	3 Months Ended
	Mar. 31, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Revenue Classes	NOTE 14 — REVENUE CLASSES Revenue from the sale of products and services is recorded when the performance obligation is fulfilled, usually at the time of shipment or when the service is provided, at the net sales price (transaction price). The Company elected to present revenue net of value added tax and other similar taxes and account for shipping and handling activities as fulfillment costs rather than separate performance obligations. The Company recognizes revenue in accordance with the following five-step model: ● identify arrangements with customers; ● identify performance obligations; ● determine transaction price; ● allocate transaction price to the separate performance obligations in the arrangement, if more than one exists; and ● recognize revenue as performance obligations are satisfied. Accounting Policy Revenue for sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of the goods can be estimated reliably, there is no continuing involvement with goods, and the amount of revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognized as a reduction of revenue as the sales are recognized. Revenue from services is recognized by reference to the stage of performance of the services when the Company can reliably measure the amount of revenue and the recovery of the consideration is considered probable Disaggregation of Revenue Selected financial information for the Company’s operating revenue for disaggregated revenue purposes by revenue source are as follows (in thousands of Korean Won): For the Three months Ended March 31, 2019 March 31, 2018 Products e-Navigation ￦ 321,898 ￦ 173,092 Smart Ship 236,767 75,909 Projects e-Navigation 721,665 931,992 Smart Ship - 128,489 Total ￦ 1,280,331 ￦ 1,309,482

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 15 — SUBSEQUENT EVENTS On April 17, 2019, the Company issued 231,133 shares of warrants to purchase up to an aggregate of 231,133 shares of common stock, par value $0.001 per share, for a period of three years from the date of issuance, April 17, 2022, at an exercise price of $0.08 per share, subject to adjustments as set forth in the warrant

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
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 table shows the calculation of diluted shares using the treasury stock method: March 31, 2019 March 31, 2018 Shares used in computation of basic income per shares 22,927,992 - Total dilutive effect of stock options 4,991,642 - Shares used in computation of diluted income per share 27,919,634 - The diluted share base excludes the following incremental shares due to their antidilutive effect: March 31, 2019 March 31, 2018 Common stock warrants - 12,916,688 Potential dilutive shares - 12,916,688
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. These ASUs are effective for fiscal years and interim periods within those years beginning after December 15, 2018, with early adoption permitted. On January 1, 2019, the Company adopted these ASUs, using modified retrospective transition approach. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The adopted the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. On adoption, the Company recognized additional operating liabilities of $ ￦ 107,387 thousand, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. 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 Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of Diluted Shares Using the Treasury Stock Method	The following table shows the calculation of diluted shares using the treasury stock method: March 31, 2019 March 31, 2018 Shares used in computation of basic income per shares 22,927,992 - Total dilutive effect of stock options 4,991,642 - Shares used in computation of diluted income per share 27,919,634 -
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The diluted share base excludes the following incremental shares due to their antidilutive effect: March 31, 2019 March 31, 2018 Common stock warrants - 12,916,688 Potential dilutive shares - 12,916,688

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	The components of inventories are as follows (in thousands of Korean Won): March 31, 2019 December 31, 2018 Finished goods ￦ 861 ￦ - Raw materials 61,073 7,217 61,934 7,217 Less: Inventory reserve - - Total, net ￦ 61,934 ￦ 7,217

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 December 31, 2018 Office equipment ￦ 219,980 ￦ 219,980 Fixtures and furniture 48,520 48,520 Other 285,113 285,112 Total, at cost 553,613 553,612 Less: Accumulated depreciation (513,239 ) (509,388 ) Total, net ￦ 40,374 ￦ 44,224
Schedule of Components of Lease Property	The components of lease property are as follows (in thousands of Korean Won): March 31, 2019 December 31, 2018 Right-of-use lease assets - operating ￦ 450,933 ￦ - Less: Accumulated depreciation (184,152 ) - Right-of-use lease assets - operating, net ￦ 266,781 ￦ -

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 December 31, 2018 Description Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Industrial Property Rights ￦ 5,960 ￦ (5,331 ) ￦ 629 ￦ 5,960 ￦ (5,260 ) ￦ 700 Software 62,782 (62,782 ) - 62,782 (62,782 ) - Customers relationship 500,000 (225,000 ) 275,000 500,000 (200,000 ) 300,000 Other 22,021 (20,645 ) 1,376 22,020 (20,565 ) 1,455 Total ￦ 590,763 ￦ (313,758 ) ￦ 277,005 ￦ 590,762 ￦ (288,607 ) ￦ 302,155
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, 2019 (in thousands of Korean Won): Year Ending December 31, 2019 ￦ 75,674 2020 100,794 2021 100,479 2022 58 Total ￦ 277,005

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 December 31, 2018 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 4.22% per annum for 2019 and 2018, respectively, guaranteed by Ung Gyu Kim, President ￦ 333,120 ￦ 374,760 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 194,250 200,000 Loans from Small & medium Business Corporation borrowed at August 13, 2018 with the maturity of August 14, 2023 and at an interest of 2.43% per annum, guaranteed by Ung Gyu Kim, President 100,000 100,000 Total 627,370 674,760 Less: current portion (233,160 ) (222,260 ) Total long-term debt less current portion ￦ 394,210 ￦ 452,500
Schedule of Maturities 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, 2020 ￦ 174,870 2021 244,520 2022 141,480 2023 44,340 2024 22,160 Total ￦ 627,370

Pension Plans (Tables)

Pension Plans (Tables)	3 Months Ended
	Mar. 31, 2019
Retirement Benefits [Abstract]
Schedule of Components of Benefit Expense	The components of benefit expense are as follows (in thousands of Korean Won): March 31, 2019 March 31, 2018 Service cost ￦ 52,083 ￦ 51,436 Interest cost 3,585 2,793 Prior service cost - - Total ￦ 55,668 ￦ 54,229

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	3 Months Ended
	Mar. 31, 2019
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 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of Maturity Operating Lease Liabilities	The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of March 31, 2019 (in thousands of Korean Won): Year Ending March 31, 2020 ￦ 115,657 2021 92,590 2022 56,516 2023 15,895 Total ￦ 280,658
Schedule of Lease Cost and Other Information	March 31, 2019 Lease cost: Operating lease cost ￦ 46,721 Short-term lease cost 1,200 Total lease cost ￦ 47,921 Other information Cash paid for amounts included in the measurement of lease liabilities ￦ 47,921 Operating cash flows from operating leases ￦ 47,921 Weighted-average remaining lease term - operating leases 2.8 years Weighted-average discount rate - operating leases 5.74 %

Revenue Classes (Tables)

Revenue Classes (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Schedule of Disaggregation of Revenue	Selected financial information for the Company’s operating revenue for disaggregated revenue purposes by revenue source are as follows (in thousands of Korean Won): For the Three months Ended March 31, 2019 March 31, 2018 Products e-Navigation ￦ 321,898 ￦ 173,092 Smart Ship 236,767 75,909 Projects e-Navigation 721,665 931,992 Smart Ship - 128,489 Total ￦ 1,280,331 ￦ 1,309,482

Description of Business and O_2

Description of Business and Organization (Details Narrative) - KRW (₩)	Jul. 25, 2017	Mar. 31, 2019	Dec. 31, 2018
Common stock, shares issued		22,927,992	22,927,992
Common stock, shares outstanding		22,927,992	22,927,992
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

Liquidity Financial Condition_2

Liquidity Financial Condition and Management Plans (Details Narrative) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Liquidity Financial Condition And Management Plans
Cash	₩ 181,470	₩ 126,406	₩ 575,810	₩ 109,316

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) ₩ in Thousands	Mar. 31, 2019KRW (₩)
ASU Leases (Topic 842) [Member]
Operating liability	₩ 107,387

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Diluted Shares Using the Treasury Stock Method (Details) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Shares used in computation of basic income per shares	22,927,992	22,119,095
Shares used in computation of diluted income per share	27,680,416	22,119,095
Treasury Stock [Member]
Shares used in computation of basic income per shares	22,927,992
Total dilutive effect of stock options	4,991,642
Shares used in computation of diluted income per share	27,919,634

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Potential dilutive shares		12,916,688
Common Stock Warrants [Member]
Potential dilutive shares		12,916,688

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	₩ 861
Raw materials	61,073	7,217
Inventory, gross	61,934	7,217
Less: Inventory reserve
Total, net	₩ 61,934	₩ 7,217

Property and Equipment (Details

Property and Equipment (Details Narrative) - KRW (₩) ₩ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	₩ 3,851	₩ 4,032
Amortization expense	₩ 31,512

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Office equipment	₩ 219,980	₩ 219,980
Fixtures and furniture	48,520	48,520
Other	285,113	285,112
Total, at cost	553,613	553,612
Less: Accumulated depreciation	(513,239)	(509,388)
Total, net	₩ 307,155	₩ 44,224

Property and Equipment - Sche_2

Property and Equipment - Schedule of Components of Lease Property (Details) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Right-of-use lease assets - operating	₩ 450,933
Less: Accumulated depreciation	(184,152)
Right-of-use lease assets - operating, net	₩ 266,781

Goodwill (Details Narrative)

Goodwill (Details Narrative) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
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, 2019	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	₩ 25,149	₩ 25,225

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Gross Carrying Amount	₩ 590,763	₩ 590,762
Accumulated Amortization	(313,758)	(288,607)
Net Carrying Amount	277,005	302,155
Industrial Property Rights [Member]
Gross Carrying Amount	5,960	5,960
Accumulated Amortization	(5,331)	(5,260)
Net Carrying Amount	629	700
Software [Member]
Gross Carrying Amount	62,782	62,782
Accumulated Amortization	(62,782)	(62,782)
Net Carrying Amount		0
Customers Relationship [Member]
Gross Carrying Amount	500,000	500,000
Accumulated Amortization	(225,000)	(200,000)
Net Carrying Amount	275,000	300,000
Other [Member]
Gross Carrying Amount	22,021	22,020
Accumulated Amortization	(20,645)	(20,565)
Net Carrying Amount	₩ 1,376	₩ 1,455

Intangible Assets - Schedule _2

Intangible Assets - Schedule of Estimated Future Amortization Expense Related to Intangible Assets (Details) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2019	₩ 75,674
2020	100,794
2021	100,479
2022	58
Total	₩ 277,005	₩ 302,155

Debt (Details Narrative)

Debt (Details Narrative) - KRW (₩) ₩ in Thousands

Oct. 02, 2018

Sep. 27, 2018

May 25, 2018

Nov. 02, 2017

Apr. 19, 2017

Apr. 18, 2017

Jul. 18, 2016

Nov. 04, 2015

Oct. 08, 2015

Jun. 02, 2015

Mar. 31, 2019

Mar. 31, 2018

Dec. 31, 2018

Dec. 31, 2017

Short-term borrowings

₩ 12,669

Repayments of short term borrowings

35,455

₩ 309,736

Long term debt

627,370

₩ 674,760

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, 2019

Debt instrument, rate of interest

6.09%

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

6.13%

5.05%

Short Term Borrowings Three [Member] | Extension Agreement [Member] | May 1, 2019 [Member]

Repayments of short term borrowings

₩ 1,000,000

Short Term Borrowings Three [Member] | Woori Bank [Member]

Short-term borrowings

₩ 1,000,000

900,000

₩ 900,000

Debt instrument maturity date

Jun. 1, 2019

Debt instrument, rate of interest

4.79%

4.27%

Short Term Borrowings Three [Member] | Woori Bank [Member] | Extension Agreement [Member]

Debt instrument extended maturity date

May 1, 2019

Short Term Borrowings Five [Member] | Suhyup Bank [Member]

Short-term borrowings

₩ 500,000

428,000

₩ 428,000

Debt instrument maturity date

Jul. 18, 2018

Debt instrument, rate of interest

2.50%

2.50%

Debt instrument extended maturity date

Jul. 18, 2019

Debt collateralized in savings account

₩ 3,000

Short Term Borrowings Seven [Member] | GMT Co., Ltd. [Member]

Short-term borrowings

₩ 550,000

195,000

195,000

Debt instrument maturity date

Nov. 30, 2017

Debt instrument, rate of interest

6.00%

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

6.00%

Short Term Borrowings Nine [Member] | Kwangju Bank [Member]

Short-term borrowings

₩ 130,000

₩ 59,091

₩ 94,545

Debt instrument maturity date

Aug. 24, 2019

Debt instrument, rate of interest

5.65%

Short Term Borrowings Nine [Member] | Kwangju Bank [Member] | 2019 [Member]

Debt instrument, rate of interest

5.65%

Debt - Schedule of Long-Term De

Debt - Schedule of Long-Term Debt (Details) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Total	₩ 627,370	₩ 674,760
Less: current portion	(233,160)	(222,260)
Total long-term debt less current portion	394,210	452,500
Long Term Debt One [Member]
Total	333,120	374,760
Long Term Debt Two [Member]
Total	194,250	200,000
Long Term Debt Three [Member]
Total	₩ 100,000	₩ 100,000

Debt - Schedule of Long-Term _2

Debt - Schedule of Long-Term Debt (Details) (Parenthetical)	Aug. 13, 2018	Feb. 28, 2017	Mar. 23, 2016	Mar. 31, 2019	Dec. 31, 2018
Long Term Debt One [Member]
Debt instrument maturity date			Mar. 22, 2021
Debt instrument interest rate				4.22%	4.22%
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	Aug. 14, 2023
Debt instrument interest rate	2.43%

Debt - Schedule of Maturities o

Debt - Schedule of Maturities of Long-term Debt (Details) - KRW (₩) ₩ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
2020	₩ 174,870
2021	244,520
2022	141,480
2023	44,340
2024	22,160
Total	₩ 627,370	₩ 674,760

Pension Plans - Schedule of Com

Pension Plans - Schedule of Components of Benefit Expense (Details) - KRW (₩) ₩ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Retirement Benefits [Abstract]
Service cost	₩ 52,083	₩ 51,436
Interest cost	3,585	2,793
Prior service cost
Total	₩ 55,668	₩ 54,229

Stockholders' Deficit (Details

Stockholders' Deficit (Details Narrative)	Mar. 23, 2018USD ($)$ / sharesshares	Jul. 25, 2017KRW (₩)shares	Jul. 25, 2017USD ($)$ / sharesshares	Mar. 31, 2019KRW (₩)shares	Mar. 31, 2019USD ($)$ / sharesshares	Mar. 31, 2018KRW (₩)	Dec. 31, 2018$ / sharesshares
Common stock, shares authorized					300,000,000		300,000,000
Common stock, par value | $ / shares					$ 0.001		$ 0.001
Common stock, shares issued					22,927,992		22,927,992
Common stock, shares outstanding					22,927,992		22,927,992
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
Proceeds from private placement | ₩						₩ 557,336,000
Gross proceeds from subscriptions | ₩		₩ 2,009,844,000		₩ 184,190,000
Number of common stock shares issued		3,530,000	3,530,000
USD Currency [Member]
Proceeds from subscriptions | $			$ 2,250,000
Gross proceeds from subscriptions | $			$ 1,765,000		$ 165,000
Accredited Investors [Member]
Number of outstanding warrants to purchase common stock					825,000
Number of common stock shares issued				330,000	330,000
Subscription Agreement [Member] | Private Placement [Member]
Purchase price of each unit | $ / shares	$ 0.60
Number of common stock shares issued	866,675
Subscription Agreement [Member] | Accredited Investors [Member]
Common stock, par value | $ / shares	$ 0.001		$ 0.001
Number of outstanding warrants to purchase common stock	2.5		2.5
Warrant exercise price | $ / shares	$ 0.70		$ 0.60
Purchase price of each unit | $ / shares			$ 0.50
Warrants exercisable, term	3 years	3 years	3 years
Number of common stock shares issued	866,675
Number of warrants issued during the period	2,166,688
Subscription Agreement [Member] | Accredited Investors [Member] | USD Currency [Member]
Proceeds from private placement | $			$ 2,250,000
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
Professional fees charged to expense | ₩		₩ 620,994,000
Exchange Agreement and Subscription Agreement [Member] | Consultants [Member]
Number of common stock shares issued for services, shares				2,200,000	2,200,000
Number of common stock shares issued for services | ₩				₩ 1,417,159,000
Exchange and Subscription Agreement [Member] | Consultants [Member]
Common stock, par value | $ / shares					$ 0.001
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					12,916,688
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
Common Stock [Member]
Number of outstanding warrants to purchase common stock			8,825,000

Stockholders' Deficit - Schedul

Stockholders' Deficit - Schedule of Estimates and Assumptions Used (Details)	3 Months Ended
	Mar. 31, 2019$ / 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%

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - KRW (₩) ₩ in Thousands	Feb. 25, 2018	Mar. 31, 2019	Dec. 31, 2018
Due to related party		₩ 71,279	₩ 45,980
Ung Gyu Kim [Member]
Due to related party	₩ 141,216	₩ 71,279	₩ 45,980
Debt instrument maturity date	Feb. 25, 2019
Debt instrument, interest rate	4.60%

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative) ₩ in Thousands	3 Months Ended
	Mar. 31, 2019KRW (₩)
Operating leases, rent expense	₩ 47,921
Shinwoo E&D Co., Ltd [Member]
Due from related parties	₩ 84,095

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Maturity Operating Lease Liabilities (Details)	Mar. 31, 2019KRW (₩)
Commitments and Contingencies Disclosure [Abstract]
2020	₩ 115,657
2021	92,590
2022	56,516
2023	15,895
Total	₩ 280,658

Commitments and Contingencies_3

Commitments and Contingencies - Schedule of Lease Cost and Other Information (Details)	3 Months Ended
	Mar. 31, 2019KRW (₩)
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	₩ 46,721
Short-term lease cost	1,200
Total lease cost	47,921
Cash paid for amounts included in the measurement of lease liabilities	47,921
Operating cash flows from operating leases	₩ 47,921
Weighted-average remaining lease term - operating leases	2 years 9 months 18 days
Weighted-average discount rate - operating leases	5.74%

Concentration of Credit Risk (D

Concentration of Credit Risk (Details Narrative) - Accounts Receivable [Member]	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Concentration risk percentage	12.00%
Concentration risk percentage	10.00%
G2 ICT Co., Ltd [Member]
Concentration risk percentage	20.00%		44.00%
Shinwoo E&D Co., Ltd [Member]
Concentration risk percentage	17.00%		15.00%
Hanjin Heavy Industries & Construction Co., Ltd [Member]
Concentration risk percentage	15.00%		11.00%
Hyundai Heavy Industries Co., Ltd., [Member]
Concentration risk percentage			13.00%
Naval Logistics Command [Member]
Concentration risk percentage	56.00%	37.00%
National Information Society Agency [Member]
Concentration risk percentage		17.00%

Revenue Classes - Schedule of D

Revenue Classes - Schedule of Disaggregation of Revenue (Details) - KRW (₩) ₩ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Total	₩ 1,280,331	₩ 1,309,483
Products [Member] | E- Navigation [Member]
Total	321,898	173,092
Products [Member] | Smart Ship [Member]
Total	236,767	75,909
Projects [Member] | E- Navigation [Member]
Total	721,665	931,992
Projects [Member] | Smart Ship [Member]
Total		₩ 128,489

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - $ / shares	Apr. 17, 2019	Mar. 31, 2019	Dec. 31, 2018
Common stock, par value		$ 0.001	$ 0.001
Subsequent Event [Member]
Warrants to purchase shares of common stock	231,133
Common stock, par value	$ 0.001
Warrant exercise price per share	$ 0.08