New Risk • May 26
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: -₩7.3b 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 (-₩7.3b free cash flow). Earnings have declined by 10% per year over the past 5 years. Revenue is less than US$1m (₩647m revenue, or US$428k). Minor Risks Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (₩36.9b market cap, or US$24.4m). New Risk • May 11
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% 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 Risks Revenue has declined by 68% over the past year. Revenue is less than US$1m (₩381m revenue, or US$259k). Minor Risks Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (₩42.5b market cap, or US$28.8m). Duyuru • Mar 10
Genesystem Co., Ltd., Annual General Meeting, Mar 31, 2026 Genesystem Co., Ltd., Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 200-9, techno 2-ro, yuseong-gu, daejeon South Korea Duyuru • Feb 10
Genesystem Co., Ltd. announced that it expects to receive KRW 6.00000782 billion in funding Genesystem Co., Ltd. announced a private placement to issue 1,430,276 common shares at an issue price of KRW 4,195 for gross proceeds of KRW 6,000,007,820 on February 9, 2026. The transaction includes participation from new investor, H Fund. The transaction has been approved by the board of directors of the company. The payment date of 715,138 shares is March 31, 2026 and the payment date of 715,138 shares is February 27, 2026. The transaction will happen through third party allocation. The transaction is subject to 1 year lock-up. New Risk • Nov 27
New major risk - Revenue and earnings growth Revenue has declined by 70% over the past year. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. 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 (-₩7.8b free cash flow). Revenue has declined by 70% over the past year. Revenue is less than US$1m (₩345m revenue, or US$236k). Minor Risks Share price has been volatile over the past 3 months (8.2% average weekly change). Market cap is less than US$100m (₩34.7b market cap, or US$23.7m). New Risk • Aug 16
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 7.9% 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: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₩7.6b free cash flow). Revenue is less than US$1m (₩1.1b revenue, or US$818k). Minor Risks Share price has been volatile over the past 3 months (7.9% average weekly change). Market cap is less than US$100m (₩36.4b market cap, or US$26.2m). New Risk • May 23
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: -₩7.6b 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 (-₩7.6b free cash flow). Revenue is less than US$1m (₩1.1b revenue, or US$827k). Minor Risk Market cap is less than US$100m (₩67.2b market cap, or US$48.9m). New Risk • Mar 30
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Market cap is less than US$100m (₩73.6b market cap, or US$50.0m). Duyuru • Mar 13
Genesystem Co., Ltd., Annual General Meeting, Mar 31, 2025 Genesystem Co., Ltd., Annual General Meeting, Mar 31, 2025, at 09:01 Tokyo Standard Time. Location: conference room, 200-9, techno 2-ro, yuseong-gu, daejeon South Korea New Risk • Mar 02
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Revenue has declined by 78% over the past year. Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Share price has been volatile over the past 3 months (10% average weekly change). Revenue is less than US$5m (₩1.6b revenue, or US$1.1m). Market cap is less than US$100m (₩69.6b market cap, or US$47.7m). New Risk • Jan 02
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 11% 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: Major Risk Revenue has declined by 78% over the past year. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Revenue is less than US$5m (₩1.6b revenue, or US$1.1m). Market cap is less than US$100m (₩76.8b market cap, or US$52.3m). New Risk • Jun 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Revenue has declined by 78% over the past year. Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Revenue is less than US$5m (₩1.6b revenue, or US$1.1m). Market cap is less than US$100m (₩45.0b market cap, or US$32.6m). New Risk • Mar 20
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 13% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Revenue has declined by 78% over the past year. Minor Risks Revenue is less than US$5m (₩1.6b revenue, or US$1.2m). Market cap is less than US$100m (₩51.3b market cap, or US$38.3m). New Risk • Oct 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 13% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Revenue has declined by 80% over the past year. Minor Risks Revenue is less than US$5m (₩1.9b revenue, or US$1.4m). Market cap is less than US$100m (₩86.7b market cap, or US$64.1m). New Risk • Oct 13
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩133.6b (US$99.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Revenue has declined by 80% over the past year. Minor Risks Share price has been volatile over the past 3 months (9.9% average weekly change). Revenue is less than US$5m (₩1.9b revenue, or US$1.4m). Market cap is less than US$100m (₩133.6b market cap, or US$99.0m). Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improved over the past week After last week's 18% share price gain to ₩10,700, the stock trades at a trailing P/E ratio of 35.7x. Average trailing P/E is 24x in the Biotechs industry in South Korea. Total loss to shareholders of 46% over the past year. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improved over the past week After last week's 18% share price gain to ₩11,700, the stock trades at a trailing P/E ratio of 22.7x. Average trailing P/E is 28x in the Biotechs industry in South Korea.