Announcement • Jun 12
HiDeep Inc. announced that it expects to receive KRW 6.500009154 billion in funding HiDeep Inc. announced a private placement to issue 5,808,766 common shares at an issue price of KRW 1,119 for the proceeds of KRW 6,500,009,154 on June 10, 2026. Transaction involves participation of Ko Beom-gyu for 3,753,351 shares, Choi So-yeon for 625,559 shares, Tiger 5 Combo General Private Equity Fund No. 1 for 178,732 shares and other investors. Transaction is approved by board of directors and is expected to close by June 18, 2026. Shares are restricted for 1 year from closing. New Risk • May 31
New major risk - Negative shareholders equity The company has negative equity. Total equity: -₩749m This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₩8.9b free cash flow). Negative equity (-₩749m). Earnings have declined by 28% per year over the past 5 years. Revenue is less than US$1m (₩770m revenue, or US$510k). Minor Risk Market cap is less than US$100m (₩36.2b market cap, or US$24.0m).