News

Chips&Media "Completely Eliminates RCPS Accounting Loss"

Seoul, South Korea - Mar 14, 2024

Chips&Media announced on the 14th that it has completely addressed concerns related to the loss on the valuation of redeemable convertible preferred stock (RCPS).

“The loss on valuation of derivatives (38.5 billion won) incurred last year is an accounting valuation loss reflecting the RCPS issued, with no actual losses or cash outflows,” clarified a company official. The RCPS conversion to full common stock in December eliminated further valuation losses this year.

Amidst on-device AI growth, Chips&Media continues to experience sales growth. It anticipates new global orders through active sales centered on Neural Processing Unit (NPU) IP.

With over 55 billion won in cash equivalents, the company maintains a stable financial structure, laying the foundation for continued growth.

Kim Sang-hyun, CEO of Chips&Media, affirmed, “We will actively meet the demand for high-capacity and high-performance semiconductors, particularly in on-device AI, and actively seek to invest in overseas companies leveraging our cash reserve to expand our market presence.”

(https://www.newsis.com/view/?id=NISX20240314_0002660732&cID=10403&pID=15000)