Board Change • May 21
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • May 20
Aroot Co., Ltd. announced that it expects to receive KRW 10 billion in funding Aroot Co., Ltd announced a private placement to issue series 18 bearer-type interest-bearing unsecured private placement convertible bonds for gross proceeds of KRW 10,000,000,000 on may 19, 2026. The transaction includes participation from new investors, Cryptogrowth No. 1 for KRW 7,000,000,000, Christian Pick Co., Ltd for KRW 1,000,000,000 and Curious Holdings Co., Ltd. for KRW 2,000,000,000. The bonds have coupon rate of 3% and yield to maturity of 4%. The bonds will mature on June 18, 2029. The bonds will be 100% converted into 1,281,722 common shares at a fixed conversion price of KRW 7,802 per share. The conversion period is from June 18, 2027 to may 17, 2029. The payment date of the transaction is June 18, 2026. The transaction has been approved by the board of directors of the company. The security is subject to prohibition of conversion and splitting of principal for one year from the bond issuance date. Announcement • Mar 14
Aroot Co., Ltd., Annual General Meeting, Mar 27, 2026 Aroot Co., Ltd., Annual General Meeting, Mar 27, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 28-6, gajangsaneopdong-ro, gyeonggi-do, osan South Korea New Risk • Nov 29
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₩17b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-₩17b free cash flow). Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Market cap is less than US$100m (₩44.4b market cap, or US$30.3m). New Risk • Oct 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (9.5% average weekly change). Market cap is less than US$100m (₩42.0b market cap, or US$29.2m). Board Change • Jul 10
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • Jun 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.9% average weekly change). Market cap is less than US$100m (₩50.7b market cap, or US$37.3m). Reported Earnings • Mar 26
Full year 2024 earnings released: ₩1,344 loss per share (vs ₩399 loss in FY 2023) Full year 2024 results: ₩1,344 loss per share (further deteriorated from ₩399 loss in FY 2023). Revenue: ₩68.6b (up 10% from FY 2023). Net loss: ₩45.0b (loss widened 249% from FY 2023). Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Mar 14
Aroot Co., Ltd., Annual General Meeting, Mar 28, 2025 Aroot Co., Ltd., Annual General Meeting, Mar 28, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 28-6, gajangsaneopdong-ro, gyeonggi-do, osan South Korea New Risk • Dec 09
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₩32b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. 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 (-₩32b free cash flow). Earnings have declined by 3.8% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (4.0% increase in shares outstanding). Market cap is less than US$100m (₩48.2b market cap, or US$33.6m). Board Change • Dec 09
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • Dec 07
New minor risk - Financial data availability Less than 3 years of financial data is available. This is considered a minor risk. If the company has been trading for less than 3 years, then it has not had the opportunity to establish a long-term track record. This makes it difficult for investors to assess the true growth potential, sustainability and resilience of the business under different economic conditions. Currently, the following risks have been identified for the company: Minor Risks Less than 3 years of financial data is available. Shareholders have been diluted in the past year (4.0% increase in shares outstanding). Market cap is less than US$100m (₩48.2b market cap, or US$33.9m). New Risk • Dec 03
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₩32b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. 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 (-₩32b free cash flow). Earnings have declined by 3.8% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (4.0% increase in shares outstanding). Market cap is less than US$100m (₩39.2b market cap, or US$28.0m). Board Change • May 03
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • Mar 27
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₩19b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. 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 (-₩19b free cash flow). Earnings have declined by 12% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (4.0% increase in shares outstanding). Market cap is less than US$100m (₩70.0b market cap, or US$51.8m). Reported Earnings • Mar 27
Full year 2023 earnings released: ₩80.00 loss per share (vs ₩91.00 profit in FY 2022) Full year 2023 results: ₩80.00 loss per share (down from ₩91.00 profit in FY 2022). Revenue: ₩62.2b (down 4.1% from FY 2022). Net loss: ₩12.9b (down 189% from profit in FY 2022). Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. New Risk • Dec 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 17% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.0% average weekly change). Shareholders have been diluted in the past year (4.0% increase in shares outstanding). Market cap is less than US$100m (₩81.3b market cap, or US$62.4m). New Risk • Nov 30
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₩47b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. 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 (-₩47b free cash flow). Earnings have declined by 17% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩78.1b market cap, or US$60.1m). Valuation Update With 7 Day Price Move • Oct 25
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩490, the stock trades at a trailing P/E ratio of 32.5x. Average trailing P/E is 12x in the Tech industry in South Korea. Total loss to shareholders of 41% over the past three years. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩484, the stock trades at a trailing P/E ratio of 26.5x. Average trailing P/E is 7x in the Tech industry in South Korea. Total loss to shareholders of 46% over the past three years. Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩593, the stock trades at a trailing P/E ratio of 15.3x. Average trailing P/E is 11x in the Tech industry in South Korea. Total loss to shareholders of 22% over the past three years. Reported Earnings • Mar 22
Full year 2022 earnings released: EPS: ₩39.00 (vs ₩921 loss in FY 2021) Full year 2022 results: EPS: ₩39.00 (up from ₩921 loss in FY 2021). Revenue: ₩64.9b (up 41% from FY 2021). Net income: ₩6.24b (up ₩108.4b from FY 2021). Profit margin: 9.6% (up from net loss in FY 2021). Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Apr 30
First quarter 2022 earnings released: EPS: ₩8.00 (vs ₩49.00 loss in 1Q 2021) First quarter 2022 results: EPS: ₩8.00 (up from ₩49.00 loss in 1Q 2021). Revenue: ₩13.8b (up 72% from 1Q 2021). Net income: ₩1.29b (up ₩5.12b from 1Q 2021). Profit margin: 9.4% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Is New 90 Day High Low • Nov 13
New 90-day high: ₩7,700 The company is up 11% from its price of ₩6,940 on 14 August 2020. The South Korean market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Tech industry, which is up 5.0% over the same period. Is New 90 Day High Low • Oct 23
New 90-day high: ₩6,950 The company is up 56% from its price of ₩4,455 on 24 July 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Tech industry, which is up 11% over the same period. Announcement • Sep 18
Ecorim Shop Co., Ltd. acquired 5.13% stake in Aroot Co., Ltd. (KOSDAQ:A096690) from Jeongim Choi for KRW 2.5 billion. Ecorim Shop Co., Ltd. acquired 5.13% stake in Aroot Co., Ltd. (KOSDAQ:A096690) from Jeongim Choi for KRW 2.5 billion on September 11, 2020. As per terms, Ecorim Shop Co., Ltd. acquired 0.51 million shares at KRW 4,855 per share.
Ecorim Shop Co., Ltd. completed the acquisition of 5.13% stake in Aroot Co., Ltd. (KOSDAQ:A096690) from Jeongim Choi on September 11, 2020. Announcement • Aug 19
P&G Planning Co., Ltd., Trias Partners Co., Ltd. and Ujin C&W Co., Ltd cancelled the acquisition of 6.8% stake in A root Co., Ltd. (KOSDAQ:A096690) from J Stephen Investment Fund 1. P&G Planning Co., Ltd., Trias Partners Co., Ltd. and Ujin C&W Co., Ltd agreed to acquire 6.8% stake in J. Stephen Lab., Ltd. (KOSDAQ:A096690) from J Stephen Investment Fund 1 for KRW 12 billion on May 16, 2019. P&G Planning Co., Ltd., Trias Partners Co., Ltd. will acquire 0.75 million shares for KRW 1.8 billion each and Ujin C&W Co., Ltd, will acquire 0.5 million shares for KRW 8.4 billion. 10% of the total acquisition/sales amount will be paid on the contract signing date and Balance will be paid 1 day before the extraordinary shareholders' meeting of J. Stephen Lab., Ltd. As of July 1, 2019, 10% of the consideration was paid on contract signing date as deposit, on June 28, 2019, consideration was paid for 0.5 million shares, on July 1, 2019, consideration was paid for 0.75 million shares, and on July 2, 2019, consideration will be paid for 0.75 million shares.
P&G Planning Co., Ltd., Trias Partners Co., Ltd. and Ujin C&W Co., Ltd cancelled the acquisition of 6.8% stake in A root Co., Ltd. (KOSDAQ:A096690) from J Stephen Investment Fund 1 on May 16, 2020.