Delaware
|
001-35520
|
26-2439072
|
||
(State or other jurisdiction of
incorporation or organization)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification Number)
|
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(a) | Financial Statements of Businesses Acquired. |
(b) | Pro Forma Financial Information. |
(d) | Exhibits |
23.1 |
Consent of Yeil Accounting Corporation independent auditors.
|
99.1 |
Audited consolidated financial statements of Terasquare Co., Ltd. as of December 31, 2014 and 2013 and for each of the two years in the period ended December 31, 2014 and Independent Auditor’s Report, therein.
|
99.2 |
Unaudited condensed interim consolidated financial statements of Terasquare Co., Ltd. as of June 30, 2015 and for the six months ended June 30, 2015 and 2014.
|
99.3 |
Unaudited pro forma condensed combined balance sheet of the Company and Terasquare as of June 28, 2015 and unaudited pro forma condensed combined statements of operations of the Company and Terasquare for the year ended December 31, 2014 and for six months ended June 28, 2015, all giving pro forma effect to the Company’s acquisition of Terasquare.
|
GIGOPTIX, INC.
|
|||
By:
|
/s/ Dr. Avi Katz
|
||
Name:
|
Dr. Avi Katz
|
||
Title:
|
Chief Executive Officer
|
||
Date: December 7, 2015
|
Exhibit No.
|
Description
|
|
Consent of Yeil Accounting Corporation independent auditors.
|
||
Audited consolidated financial statements of Terasquare Co., Ltd. as of December 31, 2014 and 2013 and for each of the two years in the period ended December 31, 2014 and Independent Auditor’s Report, therein.
|
||
Unaudited condensed interim consolidated financial statements of Terasquare Co., Ltd. as of June 30, 2015 and for the six months ended June 30, 2015 and 2014
|
||
Unaudited pro forma condensed combined balance sheet of the Company and Terasquare as of June 28, 2015 and unaudited pro forma condensed combined statements of operations of the Company and Terasquare for the year ended December 31, 2014 and for six months ended June 28, 2015, all giving pro forma effect to the Company’s acquisition of Terasquare.
|
/s/ Yeil Accounting Corporation.
|
Seoul, Korea
|
December 7, 2015
|
Page
Number
|
|
Report of Independent Auditors
|
1
|
Balance Sheets
|
2
|
Statements of Operations
|
3
|
Statements of Stockholders’ Equity
|
4
|
Statements of Cash Flows
|
5
|
Notes to Financial Statements
|
6
|
(in Korean Won)
|
December 31
|
|||||||
2014
|
2013
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents (Note 3)
|
153,552,629
|
321,451,039
|
||||||
Restricted Cash (Note 3)
|
311,803,037
|
74,130,334
|
||||||
Short-term financial instruments (Note 4)
|
156,479,966
|
551,809,428
|
||||||
Account receivable
|
28,732,330
|
33,901,612
|
||||||
Advance payments
|
28,704,837
|
16,896,000
|
||||||
Prepaid expenses
|
999,186
|
911,100
|
||||||
Prepaid income taxes
|
1,352,720
|
5,344,474
|
||||||
Total current assets
|
681,624,705
|
1,004,443,987
|
||||||
Property and equipment, net (Note 5)
|
42,211,845 |
68,281,368
|
||||||
Intangible assets, net
|
3,199,810 |
-
|
||||||
Other non-current assets (Note 6)
|
144,879,000
|
144,879,000
|
||||||
Total assets
|
871,915,360
|
1,217,604,355
|
||||||
LIABILTIES AND STOCKHOLDERS’ DEFICIT
|
||||||||
Current liabilities:
|
||||||||
Account payables
|
294,061,877
|
72,457,703
|
||||||
Withholdings
|
20,270,880
|
14,106,400
|
||||||
Unearned government grant
|
311,803,037
|
74,130,334
|
||||||
Accrued expenses
|
16,790,875
|
17,552,235
|
||||||
Total current liabilities
|
642,926,669
|
178,246,672
|
||||||
Redeemable convertible preferred stock (Note 7)
|
5,483,661,960
|
4,493,829,050
|
||||||
Total liabilities
|
6,126,588,629
|
4,672,075,722
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' deficit
|
||||||||
Capital stock (Note 8)
|
399,997,500
|
399,997,500
|
||||||
Accumulated deficit (Note 9)
|
(5,654,670,769
|
)
|
(3,854,468,867
|
)
|
||||
Total stockholders’ deficit
|
(5,254,673,269
|
)
|
(3,454,471,367
|
)
|
||||
Total liabilities and stockholders’ deficit
|
871,915,360
|
1,217,604,355
|
(in Korean Won)
|
Years Ended December 31
|
|||||||
2014
|
2013
|
|||||||
Revenues
|
135,288,487
|
64,500,000
|
||||||
Cost of sales
|
-
|
-
|
||||||
Gross profit
|
135,288,487
|
64,500,000
|
||||||
Operating expenses
|
||||||||
Research and development expense (Note 10)
|
678,357,367
|
1,405,378,459
|
||||||
Selling, general and administrative expense (Note 11)
|
1,269,800,381
|
951,561,398
|
||||||
Total operating expenses
|
1,948,157,748
|
2,356,939,857
|
||||||
Loss from operations
|
(1,812,869,261
|
)
|
(2,292,439,857
|
)
|
||||
Interest income, net
|
9,504,061
|
37,171,969
|
||||||
Other income (expense), net
|
3,163,298
|
(4,734,155
|
)
|
|||||
Net and comprehensive loss
|
(1,800,201,902
|
)
|
(2,260,002,043
|
)
|
(in Korean Won)
|
Common Stock
|
Accumulated
|
||||||||||||||
Shares
|
Amount
|
Deficit
|
Total
|
|||||||||||||
January 1, 2013
|
2,666,650
|
266,665,000
|
(1,594,266,824
|
)
|
(1,327,801,824
|
)
|
||||||||||
Increase of capital stock without consideration
|
1,333,325
|
133,332,500
|
-
|
133,332,500
|
||||||||||||
Net loss
|
-
|
-
|
(2,260,002,043
|
)
|
(2,260,002,043
|
)
|
||||||||||
December 31, 2013
|
3,999,975
|
399,997,500
|
(3,854,468,867
|
)
|
(3,454,471,367
|
)
|
||||||||||
Net loss
|
-
|
-
|
(1,800,201,902
|
)
|
(1,800,201,902
|
)
|
||||||||||
December 31, 2014
|
3,999,975
|
399,997,500
|
(5,654,670,769
|
)
|
(5,254,673,269
|
)
|
(in Korean Won)
|
Years Ended December 31
|
|||||||
2014
|
2013
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
(1,800,201,902
|
)
|
(2,260,002,043
|
)
|
||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation
|
32,564,433
|
50,866,142
|
||||||
Provision for severance and retirement benefits
|
44,053,517
|
52,078,225
|
||||||
Research and development cost
|
-
|
556,756,165
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Account receivable
|
5,169,282
|
(2,849,286
|
)
|
|||||
Advance payments
|
(11,808,837
|
)
|
(14,190,000
|
)
|
||||
Prepaid expenses
|
(88,086
|
)
|
(449,031
|
)
|
||||
Prepaid income tax
|
3,991,754
|
(5,344,474
|
)
|
|||||
Account payable
|
177,550,657
|
(36,291,086
|
)
|
|||||
Accrued expenses
|
(761,360
|
)
|
(3,046,976
|
)
|
||||
Advance from customers
|
-
|
(289,000
|
)
|
|||||
Withholdings
|
6,164,480
|
(93,160
|
)
|
|||||
Net cash used in operating activities
|
(1,543,366,062
|
)
|
(1,662,854,524
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Proceeds from sale of short-term financial instruments
|
395,329,462
|
538,190,572
|
||||||
Proceeds from termination of leasehold agreement
|
-
|
27,288,450
|
||||||
Purchase of property and equipment
|
(6,494,910
|
)
|
(14,544,773
|
)
|
||||
Purchase of intangible assets
|
(3,199,810
|
)
|
-
|
|||||
Net cash provided by investing activities
|
385,634,742
|
550,934,249
|
||||||
Cash flows from financing activities:
|
||||||||
Proceeds from issuance of redeemable convertible preferred stock
|
989,832,910
|
-
|
||||||
Net cash provided by financing activities
|
989,832,910
|
-
|
||||||
Net decrease in cash and cash equivalents
|
(167,898,410
|
)
|
(1,111,902,275
|
)
|
||||
Cash and cash equivalents at beginning of year
|
321,451,039
|
1,433,371,314
|
||||||
Cash and cash equivalents at end of year
|
153,552,629
|
321,451,039
|
1.
|
General information
|
Name of stockholders
|
Shares of common
stock
|
Percentage of
Ownership
|
||||||
Hyunmin Bae
|
2,846,250
|
71
|
%
|
|||||
Hyungsuk Yoon
|
846,225
|
21
|
%
|
|||||
Jinho Park
|
307,500
|
8
|
%
|
|||||
3,999,975
|
100
|
%
|
2.
|
Summary of significant accounting policies
|
3.
|
Cash and cash equivalents
|
(In thousands of Korean Won)
|
2014
|
2013
|
||||||
Bank deposits
|
153,553
|
321,451
|
||||||
Restricted bank deposits
|
311,803
|
74,130
|
||||||
465,356
|
395,581
|
4. | Short-term financial instruments |
(In thousands of Korean Won)
|
2014
|
2013
|
||||||
Bank deposits
|
156,480
|
551,809
|
||||||
156,480
|
551,809
|
5. | Property and equipment, net |
(In thousands of Korean Won)
|
2014
|
2013
|
||||||
Vehicles
|
33,150
|
33,150
|
||||||
Equipment
|
104,594
|
98,099
|
||||||
Facilities
|
63,440
|
63,440
|
||||||
201,184
|
194,689
|
|||||||
Accumulated depreciation
|
(158,972
|
)
|
(126,408
|
)
|
||||
Property and equipment, net
|
42,212
|
68,281
|
6. | Other non-current assets |
(In thousands of Korean Won)
|
2014
|
2013
|
||||||
Leasehold deposits
|
144,749
|
144,749
|
||||||
Other guarantee deposits
|
130
|
130
|
||||||
144,879
|
144,879
|
7. | Redeemable convertible preferred stock |
(In thousands of Korean Won)
|
2014
|
2013
|
||||||
Redeemable convertible preferred stock
|
5,483,662
|
4,493,829
|
||||||
5,483,662
|
4,493,829
|
Series A
|
Series B
|
Series B-1
|
|||
Par value
|
100 per share
|
100 per share
|
100 per share
|
||
Issue price
|
875 per share
|
3,467 per share
|
161 per share
|
||
Date of issue
|
December 16, 2010
|
December 5, 2012
|
July 17, 2014
|
||
Issued stocks
|
1,714,125 shares
|
865,350 shares
|
6,211,180 shares
|
||
Conversion ratio
|
One common stock per preferred stock
|
One common stock per preferred stock
|
One common stock per preferred stock
|
||
Voting right
|
Same as common stock
|
Same as common stock
|
Same as common stock
|
||
Dividend rate
|
One percent
|
One percent
|
One percent
|
||
Redemption amount
|
Issuing price per share plus 15 % (compound interest) per annum
|
Issuing price per share plus 15 % (compound interest) per annum
|
Issuing price per share plus 15 % (compound interest) per annum
|
||
Exercise period
|
Within 10 years from the date of issue
|
Within 10 years from the date of issue
|
Within 10 years from the date of issue
|
8. | Capital stock |
2014
|
2013
|
|||||||
Authorized stocks
|
10,000,000 shares
|
10,000,000 shares
|
||||||
Par value (Per value)
|
100
|
100
|
||||||
Issued stocks
|
|
3,999,975 shares |
|
3,999,975 shares | ||||
Common stock
|
399,997,500
|
399,997,500
|
9. | Statements of appropriations of accumulated deficit |
2014
|
2013
|
|||||||
Unappropriated accumulated deficit before Appropriations
|
||||||||
Unappropriated accumulated deficit carried forward from the prior year
|
(3,854,468,867
|
)
|
(1,594,466,824
|
)
|
||||
Net loss
|
(1,800,201,902
|
)
|
(2,260,002,043
|
)
|
||||
(5,654,670,769
|
)
|
(3,854,468,867
|
)
|
|||||
Appropriations
|
-
|
-
|
||||||
Unappropriated accumulated deficit carried over to the subsequent year
|
(5,654,670,769
|
)
|
(3,854,468,867
|
)
|
10. | Research and development expenses |
(In thousands of Korean Won)
|
2014
|
2013
|
||||||
Salaries
|
409,557
|
292,140
|
||||||
Bonuses
|
36,137
|
41,519
|
||||||
Others
|
232,663
|
1,071,719
|
||||||
678,357
|
1,405,378
|
11. | Selling, general and administrative expenses |
(In thousands of Korean Won)
|
2014
|
2013
|
||||||
Salaries
|
186,359
|
217,278
|
||||||
Bonuses
|
20,398
|
41,025
|
||||||
Retirement benefits
|
44,054
|
52,078
|
||||||
Employee benefits
|
85,306
|
84,863
|
||||||
Travel
|
107,441
|
78,720
|
||||||
Meals & Entertainment
|
97,439
|
99,793
|
||||||
Communication
|
5,327
|
7,074
|
||||||
Utilities
|
-
|
36
|
||||||
Tax and dues
|
23,413
|
19,458
|
||||||
Depreciation
|
32,564
|
50,866
|
||||||
Rent
|
39,550
|
26,009
|
||||||
Repairs
|
-
|
800
|
||||||
Insurance
|
26,236
|
18,577
|
||||||
Vehicle maintenance
|
16,597
|
12,336
|
||||||
Transportation
|
1,868
|
830
|
||||||
Education
|
417
|
935
|
||||||
Printing
|
1,020
|
1,969
|
||||||
Office supplies
|
2,150
|
2,218
|
||||||
Supplies
|
233,705
|
48,885
|
||||||
Service fees
|
268,638
|
108,072
|
||||||
Advertising
|
2,200
|
2,200
|
||||||
Outsourcing
|
75,118
|
77,539
|
||||||
1,269,800
|
951,561
|
12. | Approval of financial statements |
13. | Subsequent events |
|
Page
Number |
Balance Sheets
|
1
|
Statements of Operations
|
2
|
Statements of Stockholders’ Equity
|
3
|
Statements of Cash Flows
|
4
|
Notes to Financial Statements
|
5
|
(In Korean Won)
|
June 30
|
December 31
|
||||||
2015
|
2014
|
|||||||
(audited)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents (Note 3)
|
393,112,855
|
153,552,629
|
||||||
Restricted Cash (Note 3)
|
265,979,411
|
311,803,037
|
||||||
Short-term financial instruments (Note 4)
|
54,600,000
|
156,479,966
|
||||||
Account receivable
|
-
|
28,732,330
|
||||||
Advance payments
|
19,036,519
|
28,704,837
|
||||||
Prepaid expenses
|
931,242
|
999,186
|
||||||
Prepaid income taxes
|
65,570
|
1,352,720
|
||||||
Prepaid value added tax
|
92,000
|
-
|
||||||
Total current assets
|
733,817,597
|
681,624,705
|
||||||
Property and equipment, net (Note 5)
|
33,420,528
|
42,211,845
|
||||||
Intangible assets, net
|
4,654,356
|
3,199,810
|
||||||
Other non-current assets (Note 6)
|
174,879,000
|
144,879,000
|
||||||
Total assets
|
946,771,481
|
871,915,360
|
||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
||||||||
Current liabilities:
|
||||||||
Account payables
|
182,399,751
|
294,061,877
|
||||||
Withholdings
|
13,188,480
|
20,270,880
|
||||||
Accrued expenses
|
11,730,158
|
16,790,875
|
||||||
Unearned government grant
|
265,979,411
|
311,803,037
|
||||||
Value added tax withheld
|
6,183,264
|
-
|
||||||
Short-term borrowing (Note 7)
|
194,000,000
|
-
|
||||||
Convertible bonds (Note 8)
|
500,000,000
|
-
|
||||||
Total current liabilities
|
1,173,481,064
|
642,926,669
|
||||||
Long-term borrowings (Note 7)
|
50,000,000
|
-
|
||||||
Redeemable convertible preferred stock (Note 9)
|
5,483,661,960
|
5,483,661,960
|
||||||
Total liabilities:
|
6,707,143,024
|
6,126,588,629
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' deficit
|
||||||||
Common stock (Note 10)
|
399,997,500
|
399,997,500
|
||||||
Accumulated deficit
|
(6,160,369,043
|
)
|
(5,654,670,769
|
)
|
||||
Total stockholders’ deficit
|
(5,760,371,543
|
)
|
(5,254,673,269
|
)
|
||||
Total liabilities and stockholders’ deficit
|
946,771,481
|
871,915,360
|
(In Korean Won)
|
2015
|
2014
|
||||||
Revenues
|
310,227,273
|
5,515,760
|
||||||
Cost of sales
|
-
|
-
|
||||||
Gross profit
|
310,227,273
|
5,515,760
|
||||||
Operating expenses
|
||||||||
Research and development expense (Note 11)
|
329,189,947
|
289,019,853
|
||||||
Selling, general and administrative expense (Note 12)
|
480,817,769
|
723,980,653
|
||||||
Total operating expenses
|
810,007,716
|
1,013,000,506
|
||||||
Loss from operations
|
(499,780,443
|
)
|
(1,007,484,746
|
)
|
||||
Interest income (expense), net
|
(4,366,170
|
)
|
6,063,764
|
|||||
Other income (expense), net
|
(1,551,661
|
)
|
21,129
|
|||||
Net and comprehensive loss
|
(505,698,274
|
)
|
(1,001,399,853
|
)
|
(In Korean Won)
|
Common stock
|
Accumulated
|
||||||||||||||
Shares
|
Amount
|
Deficit
|
Total
|
|||||||||||||
January 1, 2014
|
3,999,975
|
399,997,500
|
(3,854,468,867
|
)
|
(3,454,471,367
|
)
|
||||||||||
Net loss
|
-
|
-
|
(1,001,399,853
|
)
|
(1,001,399,853
|
)
|
||||||||||
June 30, 2014
|
3,999,975
|
399,997,500
|
(4,855,868,720
|
)
|
(4,455,871,220
|
)
|
||||||||||
January 1, 2015
|
3,999,975
|
399,997,500
|
(5,654,670,769
|
)
|
(5,254,673,269
|
)
|
||||||||||
Net loss
|
-
|
-
|
(505,698,274
|
)
|
(505,698,274
|
)
|
||||||||||
June 30, 2015
|
3,999,975
|
399,997,500
|
(6,160,369,043
|
)
|
(5,760,371,543
|
)
|
(In Korean Won)
|
2015
|
2014
|
||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
(505,698,274
|
)
|
(1,001,399,853
|
)
|
||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation
|
9,762,117
|
15,702,400
|
||||||
Provision for severance and retirement benefits
|
25,889,353
|
14,760,253
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Account receivable
|
28,732,330
|
31,966,692
|
||||||
Advance payments
|
9,668,318
|
(18,301,990
|
)
|
|||||
Prepaid expenses
|
67,944
|
(88,086
|
)
|
|||||
Prepaid income tax
|
1,287,150
|
4,483,214
|
||||||
Prepaid value added tax
|
(92,000
|
)
|
(48,765,737
|
)
|
||||
Account payable
|
(137,551,479
|
)
|
341,760,676
|
|||||
Accrued expenses
|
(5,060,717
|
)
|
8,567,295
|
|||||
Withholdings
|
(7,082,400
|
)
|
770,098
|
|||||
Value added tax withheld
|
6,183,264
|
-
|
||||||
Net cash used in operating activities
|
(573,894,394
|
)
|
(650,545,038
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Proceeds from sale of short-term financial instruments
|
101,879,966
|
551,809,428
|
||||||
Payment of additional leasehold deposits
|
(30,000,000
|
)
|
-
|
|||||
Purchase of property and equipment
|
(970,800
|
)
|
(2,638,000
|
)
|
||||
Purchase of intangible assets
|
(1,454,546
|
)
|
(700,000
|
)
|
||||
Net cash provided by investing activities
|
69,454,620
|
548,471,428
|
||||||
Cash flows from financing activities:
|
||||||||
Increase in short-term borrowings
|
194,000,000
|
-
|
||||||
Increase in long-term borrowings
|
50,000,000
|
-
|
||||||
Proceeds from issuance of convertible bonds
|
500,000,000
|
-
|
||||||
Net cash provided by financing activities
|
744,000,000
|
-
|
||||||
Net increase (decrease) in cash and cash equivalents
|
239,560,226
|
(102,073,610
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
153,552,629
|
321,451,039
|
||||||
Cash and cash equivalents at end of year
|
393,112,855
|
219,377,429
|
1. | General information |
Name of stockholders
|
Shares of common
stock
|
Percentage of
Ownership
|
||||||
Hyunmin Bae
|
2,846,250
|
71
|
%
|
|||||
Hyungsuk Yoon
|
846,225
|
21
|
%
|
|||||
Jinho Park
|
307,500
|
8
|
%
|
|||||
3,999,975
|
100
|
%
|
2. | Summary of significant accounting policies |
3. | Cash and cash equivalents |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Bank deposits
|
393,113
|
153,553
|
||||||
Restricted bank deposits
|
265,979
|
311,803
|
||||||
659,092
|
465,356
|
4. | Short-term financial instruments |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Bank deposits
|
54,600
|
156,480
|
||||||
54,600
|
156,480
|
5. | Property and equipment, net |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Vehicles
|
33,150
|
33,150
|
||||||
Equipment
|
105,565
|
104,594
|
||||||
Facilities
|
63,440
|
63,440
|
||||||
202,155
|
201,184
|
|||||||
Accumulated depreciation
|
(168,734
|
)
|
(158,972
|
)
|
||||
Property and equipment, net
|
33,421
|
42,212
|
6. | Other non-current assets |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Leasehold deposits
|
174,749
|
144,749
|
||||||
Other guarantee deposits
|
130
|
130
|
||||||
174,879
|
144,879
|
7. | Borrowings |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Short-term borrowings
|
||||||||
Hyunmin Bae (Major shareholder)
|
87,000
|
-
|
||||||
Jinho Park (CEO)
|
107,000
|
-
|
||||||
194,000
|
-
|
|||||||
Long-term borrowings
|
||||||||
Gwangsuk Han
|
50,000
|
-
|
||||||
Total
|
50,000
|
-
|
8. | Convertible bonds |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Convertible bonds
|
500,000
|
-
|
||||||
500,000
|
-
|
Conversion feature
|
||
Amount issued
|
500,000,000
|
|
Coupon rate
|
0% per annum
|
|
Guaranteed rate of convertible bonds
|
8% per annum
|
|
Date of issue
|
June 19, 2015
|
|
Maturity date
|
June 18, 2016
|
|
Conversion period
|
1 month after date issued until the day before maturity date
|
|
Conversion price
|
1,861
|
9. | Redeemable convertible preferred stock |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Redeemable convertible preferred stock
|
5,483,662
|
5,483,662
|
||||||
5,483,662
|
5,483,662
|
Series A
|
Series B
|
Series B-1
|
|||
Par value
|
100 per share
|
100 per share
|
100 per share
|
||
Issue price
|
875 per share
|
3,467 per share
|
161 per share
|
||
Date of issue
|
December 16, 2010
|
December 5, 2012
|
July 17, 2014
|
||
Issued stocks
|
1,714,125 shares
|
865,350 shares
|
6,211,180 shares
|
||
Conversion ratio
|
One common stock per preferred stock
|
One common stock per preferred stock
|
One common stock per preferred stock
|
||
Voting right
|
Same as common stock
|
Same as common stock
|
Same as common stock
|
||
Dividend rate
|
One percent
|
One percent
|
One percent
|
||
Redemption amount
|
Issuing price per share plus 15 % (compound interest) per annum
|
Issuing price per share plus 15 % (compound interest) per annum
|
Issuing price per share plus 15 % (compound interest) per annum
|
||
Exercise period
|
Within 10 years from the date of issue
|
Within 10 years from the date of issue
|
Within 10 years from the date of issue
|
10. | Capital Stock |
2015
|
2014
|
|||||||
Authorized stocks
|
10,000,000 shares
|
10,000,000 shares
|
||||||
Par value
|
100
|
100
|
||||||
Issued stocks
|
3,999,975 shares
|
3,999,975 shares
|
||||||
Common stock
|
399,997,500
|
399,997,500
|
11. | Research and development expenses |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Salaries
|
266,709
|
184,930
|
||||||
Bonuses
|
32,421
|
13,724
|
||||||
Others
|
30,059
|
90,366
|
||||||
329,189
|
289,020
|
12. | Selling, general and administrative expenses |
(In thousands of Korean Won)
|
2015
|
2014
|
||||||
Salaries
|
54,780
|
61,974
|
||||||
Bonuses
|
10,904
|
10,529
|
||||||
Retirement benefits
|
25,889
|
14,760
|
||||||
Employee benefits
|
46,499
|
41,012
|
||||||
Travel
|
36,460
|
52,088
|
||||||
Meals & Entertainment
|
11,262
|
49,027
|
||||||
Communication
|
2,760
|
2,829
|
||||||
Tax and dues
|
13,279
|
11,180
|
||||||
Depreciation
|
9,762
|
15,702
|
||||||
Rent
|
16,150
|
20,530
|
||||||
Insurance
|
23,664
|
15,058
|
||||||
Vehicle maintenance
|
3,549
|
7,152
|
||||||
Transportation
|
917
|
1,446
|
||||||
Education
|
420
|
230
|
||||||
Printing
|
1,129
|
784
|
||||||
Office supplies
|
2,032
|
684
|
||||||
Supplies
|
88,851
|
9,442
|
||||||
Service fees
|
42,994
|
369,188
|
||||||
Advertising
|
-
|
2,200
|
||||||
Outsourcing
|
89,517
|
38,165
|
||||||
480,818
|
723,980
|
13. | Subsequent events |
GigOptix
|
Terasquare
|
Pro Forma
Combined Adjustments |
Pro Forma
Combined
|
|||||||||||||||||||
ASSETS
|
(in USD)
|
(in KRW)
|
(in USD)
|
(in USD)
|
(in USD)
|
|||||||||||||||||
Current assets:
|
||||||||||||||||||||||
Cash and cash equivalents
|
$
|
18,382
|
KRW
|
393,113 |
$
|
351
|
$
|
(4,447
|
)
|
A
|
$
|
14,286
|
||||||||||
Short-term investments
|
-
|
54,600
|
49
|
49
|
||||||||||||||||||
Accounts receivable, net
|
7,843
|
-
|
-
|
7,843
|
||||||||||||||||||
Restricted cash
|
-
|
265,979
|
238
|
238
|
||||||||||||||||||
Inventories
|
6,824
|
-
|
-
|
6,824
|
||||||||||||||||||
Prepaid and other current assets
|
789
|
20,125
|
18
|
807
|
||||||||||||||||||
Total current assets
|
33,838
|
733,817
|
656
|
(4,447
|
)
|
30,047
|
||||||||||||||||
Property and equipment, net
|
2,309
|
33,421
|
30
|
2,339
|
||||||||||||||||||
Goodwill and intangible assets, net
|
12,342
|
4,654
|
4
|
4,792
|
B
|
17,138
|
||||||||||||||||
Restricted cash
|
56
|
-
|
-
|
56
|
||||||||||||||||||
Other assets
|
133
|
174,879
|
156
|
289
|
||||||||||||||||||
Total assets
|
$
|
48,678
|
KRW
|
946,771 |
$
|
846
|
$
|
345
|
$
|
49,869
|
||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY / (DEFICIT)
|
||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||
Accounts payable
|
$
|
2,702
|
KRW
|
182,400 |
$
|
163
|
$
|
2,865
|
||||||||||||||
Accrued and other current liabilities
|
3,858
|
297,080
|
266
|
4,124
|
||||||||||||||||||
Convertible bonds
|
-
|
500,000
|
447
|
(447
|
)
|
D
|
-
|
|||||||||||||||
Long-term debt, current portion
|
-
|
194,000
|
173
|
173
|
||||||||||||||||||
Total current liabilities
|
6,560
|
1,173,480
|
1,049
|
(447
|
)
|
7,162
|
||||||||||||||||
Pension liabilities
|
346
|
346
|
||||||||||||||||||||
Redeemable convertible preferred stock
|
-
|
5,483,662
|
4,898
|
(4,898
|
)
|
D
|
-
|
|||||||||||||||
Other long term liabilities
|
658
|
50,000
|
45
|
703
|
||||||||||||||||||
Total liabilities
|
7,564
|
6,707,142
|
5,992
|
(5,345
|
)
|
8,211
|
||||||||||||||||
Stockholders’ Equity / (Deficit)
|
||||||||||||||||||||||
Common stock
|
33
|
-
|
-
|
33
|
||||||||||||||||||
Additional paid-in capital
|
145,380
|
399,998
|
378
|
(378
|
)
|
C
|
145,380
|
|||||||||||||||
Treasury stock
|
(2,209
|
)
|
-
|
-
|
(2,209
|
)
|
||||||||||||||||
Accumulated deficit
|
(102,378
|
)
|
(6,160,369
|
)
|
(5,712
|
)
|
6,256
|
C
|
(101,834
|
)
|
||||||||||||
Accumulated other comprehensive income
|
288
|
-
|
188
|
(188
|
)
|
C
|
288
|
|||||||||||||||
Total stockholders’ equity / (deficit)
|
41,114
|
(5,760,371
|
)
|
(5,146
|
)
|
5,690
|
41,658
|
|||||||||||||||
Total liabilities and stockholders’ equity / (deficit)
|
$
|
48,678
|
KRW
|
946,771 |
$
|
846
|
$
|
345
|
$
|
49,869
|
GigOptix
|
Terasquare
|
Pro Forma
Combined Adjustments |
Pro Forma
Combined
|
|||||||||||||||||||
(in USD)
|
(in KRW)
|
(in USD)
|
(in USD)
|
(in USD)
|
||||||||||||||||||
Revenue
|
$
|
32,947
|
KRW | 135,288 |
$
|
128
|
$
|
-
|
$
|
33,075
|
||||||||||||
Cost of revenue
|
13,711
|
-
|
-
|
324
|
E
|
14,035
|
||||||||||||||||
Gross profit
|
19,236
|
135,288
|
128
|
(324
|
)
|
19,040
|
||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||
Research and development expense
|
13,732
|
678,357
|
642
|
-
|
14,374
|
|||||||||||||||||
Selling, general and administrative expense
|
10,503
|
1,269,800
|
1,203
|
141
|
E
|
11,847
|
||||||||||||||||
Restructuring expense
|
343
|
-
|
-
|
-
|
343
|
|||||||||||||||||
Total operating expenses
|
24,578
|
1,948,157
|
1,845
|
141
|
26,564
|
|||||||||||||||||
Loss from operations
|
(5,342
|
)
|
(1,812,869
|
)
|
(1,717
|
)
|
(466
|
)
|
(7,525
|
)
|
||||||||||||
Interest and other expense, net
|
(39
|
)
|
-
|
-
|
-
|
(39
|
)
|
|||||||||||||||
Other income, net
|
70
|
12,667
|
12
|
82 | ||||||||||||||||||
Net loss before income taxes
|
(5,311
|
)
|
(1,800,202
|
)
|
(1,705
|
)
|
(466
|
)
|
(7,482
|
)
|
||||||||||||
Provision for income taxes
|
54
|
-
|
54
|
|||||||||||||||||||
Loss from consolidated companies
|
(5,365
|
)
|
(1,800,202
|
)
|
(1,705
|
)
|
(466
|
)
|
(7,536
|
)
|
||||||||||||
Loss on equity investment
|
456
|
-
|
-
|
456 | ||||||||||||||||||
Net loss
|
$
|
(5,821
|
)
|
KRW | (1,800,202) |
$
|
(1,705
|
)
|
$
|
(466
|
)
|
$
|
(7,992
|
)
|
||||||||
Net loss per share - basic and diluted
|
$
|
(0.18
|
)
|
$
|
(0.25
|
)
|
||||||||||||||||
Shares used in computing basic and diluted net loss per shares
|
31,851
|
31,851
|
GigOptix
|
Terasquare
|
Pro Forma
Combined Adjustments |
Pro Forma
Combined
|
|||||||||||||||||||
(in USD)
|
(in KRW)
|
(in USD)
|
(in USD)
|
(in USD)
|
||||||||||||||||||
Revenue
|
$
|
18,900
|
KRW | 310,228 |
$
|
282
|
$
|
-
|
$
|
19,182
|
||||||||||||
Cost of revenue
|
7,278
|
-
|
-
|
162
|
E
|
7,440
|
||||||||||||||||
Gross profit
|
11,622
|
310,228
|
282
|
(162
|
)
|
11,742
|
||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||
Research and development expense
|
6,472
|
329,190
|
299
|
-
|
6,771
|
|||||||||||||||||
Selling, general and administrative expense
|
5,212
|
480,818
|
437
|
71
|
E
|
5,720
|
||||||||||||||||
Total operating expenses
|
11,684
|
810,008
|
736
|
71
|
12,491
|
|||||||||||||||||
Loss from operations
|
(62
|
)
|
(499,780
|
)
|
(454
|
)
|
(233
|
)
|
(749
|
)
|
||||||||||||
Interest and other expense, net
|
(6
|
)
|
(5,918
|
)
|
(5
|
)
|
-
|
(11
|
)
|
|||||||||||||
Other income, net
|
(18
|
)
|
(18 | ) | ||||||||||||||||||
Net loss before income taxes
|
(86
|
)
|
(505,698
|
)
|
(459
|
)
|
(233
|
)
|
(778
|
)
|
||||||||||||
Provision for income taxes
|
25
|
-
|
-
|
-
|
25
|
|||||||||||||||||
Loss from consolidated companies
|
(111
|
)
|
(505,698
|
)
|
(459
|
)
|
(233
|
)
|
(803
|
)
|
||||||||||||
Loss on equity investment
|
3
|
-
|
-
|
3 | ||||||||||||||||||
Net loss
|
$
|
(114
|
)
|
KRW |
(505,698)
|
$
|
(459
|
)
|
$
|
(233
|
)
|
$
|
(806
|
)
|
||||||||
Net loss per share - basic and diluted
|
$
|
(0.00
|
)
|
$
|
(0.02
|
)
|
||||||||||||||||
Shares used in computing basic and diluted net loss per shares
|
32,705
|
32,705
|
(1)
|
Basis of Purchase Price Allocation
|
Tangible assets acquired:
|
||||
Cash and cash equivalents
|
$ |
22
|
||
Other current assets
|
17
|
|||
Property, plant and equipment
|
22
|
|||
Other assets
|
121
|
|||
Liabilities assumed:
|
||||
Accounts payable
|
(501
|
)
|
||
Accrued compensation
|
(28
|
)
|
||
Other current liabilities
|
(2
|
)
|
||
Identifiable intangible assets acquired:
|
||||
Trade name
|
990
|
|||
Developed technology
|
2,270
|
|||
IPR&D
|
380
|
|||
Goodwill
|
1,156 | |||
Total purchase price
|
4,447
|
(2)
|
Pro Forma Combined Adjustments
|