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GRAVITY CO., LTD. and Subsidiaries
For the Years Ended December 31, 2021 and 2020
(With Independent Auditors' Report Thereon)
Independent Auditors' Report 1
Consolidated Statements of Financial Position 3
Consolidated Statements of Comprehensive Income 5
Consolidated Statements of Changes in Equity 6
Consolidated Statements of Cash Flows 7
Notes to the Consolidated Financial Statements 8
Independent Auditors' Report
Based on a report originally issued in Korean
To the Shareholders and Board of Directors of
Gravity Co., Ltd.:
We have audited the accompanying consolidated financial statements of Gravity Co., Ltd. and its subsidiaries (the "Group"), which comprise the consolidated statements of financial position as of December 31, 2021 and 2020, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements comprising significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards ("K-IFRS").
We conducted our audits in accordance with Korean Standards on Auditing (KSAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The procedures and practices utilized in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with KSAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
•Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
•Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
•Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
This report is effective as of March 23, 2022, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
Consolidated Statements of Financial Position
As of December 31, 2021 and 2020
(In thousands of won) Notes December 31, 2021 December 31, 2020
Cash and cash equivalents 5,6,22 W
Short-term financial instruments
6,22 148,000,000 71,000,000
Accounts receivable, net 6,7,13,22 52,614,595 59,761,256
Other receivables, net 6,7,22 1,080,516 8,333
Prepaid expenses 13 3,164,075 2,237,708
Other current financial assets 6,22 598,099
Other current assets 1,572,692 2,128,113
306,134,920 246,585,717
Non-current assets
Property and equipment, net 8,21 11,337,999 7,695,046
Intangible assets, net 9 3,342,028 3,362,879
Other non-current assets 1,973,064 2,814,792
Other non-current financial assets 6,22 3,018,823 1,323,865
Deferred tax assets 18 1,719,489 3,590,069
21,391,403 18,786,651
W 327,526,323 265,372,368
See accompanying notes to the consolidated financial statements.
Consolidated Statements of Financial Position, Continued
(In thousands of won)
Notes December 31, 2021 December 31, 2020
Account payables
6,22 W 41,199,401 52,687,616
13 13,480,518 13,692,283
Withholdings 3,596,403 2,851,636
Accrued expenses 6,22 1,484,019 1,364,753
Income tax payable 18 10,628,981 9,469,833
Other current liabilities 6,21,22 3,608,153 2,654,101
Long-term account payables 6,22 729,173 1,402,466
Long-term deferred revenue 13 98,226 101,015
Other non-current liabilities 6,21,22 5,860,591 3,800,649
W 80,685,465 88,024,352
Equity attributable to owners of the Parent Company
12 3,474,450 3,474,450
Other components of equity
12 2,180,388 (1,044,533)
Non-controlling interest
Total liabilities and equity
(In thousands of won, except per share amounts) Notes 2021 2020
Revenues 13,23,24
Mobile games 320,163,555 298,323,908
Other revenue
Cost of revenues 14 224,172,902 239,044,923
Gross profit 189,765,072 166,908,098
14,15 92,201,177 77,433,905
Operating profit 23 97,563,895 89,474,193
Non-operating income and expenses
6,16 5,268,535 3,475,764
Finance costs
6,16 (2,686,170) (3,832,610)
Other non-operating income
17 606,731 657,898
Other non-operating expenses
17 (1,452,459) (1,764,135)
Profit before income tax expense 99,300,532 88,011,110
Income tax expense 18 33,420,741 25,455,435
Profit for the year W 65,879,791 62,555,675
Items that are or may be reclassified subsequently to profit or loss
3,273,897 (1,319,071)
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit liabilities
(2,761) -
Total comprehensive income for the year
Profit (loss) attributable to:
Owners of the Parent Company
Total comprehensive income (loss) attributable to:
(20,644) (147,413)
Earnings per share attributable to the equity holders of the Parent Company
Basic earnings per share (in won)
19 W 9,490 9,023
Diluted earnings per share (in won)
Consolidated Statements of Changes in Equity
Other components of equity Retained earnings Sub total Non-controlling interests
Balance at January 1, 2020 W 3,474,450 27,127,684 274,538 84,668,067 115,544,739 221,351 115,766,090
Total comprehensive income for the period:
Profit for the year
- - - 62,703,088 62,703,088 (147,413) 62,555,675
12 - - (1,319,071) - (1,319,071) - (1,319,071)
Transactions with owners:
Equity transaction
- (17,881) - - (17,881) 1,227 (16,654)
Changes in interests in subsidiaries
- - - - - 361,976 361,976
Balance at December 31, 2020 W 3,474,450 27,109,803 (1,044,533) 147,371,155 176,910,875 437,141 177,348,016
Balance at January 1, 2021 W 3,474,450 27,109,803 (1,044,533)
176,910,875 437,141 177,348,016
12 - - 3,226,854 -
Remeasurements of defined benefit liabilities
- (1,933) (828) (2,761)
Balance at December 31, 2021 W 3,474,450
Consolidated Statements of Cash Flow
(In thousands of won) Notes 2021 2020
20 (2,883,876) (12,952,425)
995,149 1,122,471
(111,416) (185,742)
Income taxes paid
(30,272,469) (12,815,314)
Net cash provided by operating activities 74,182,958 69,856,903
Proceeds from disposal of property and equipment
8 13,850 3,039
Proceeds from disposal of other intangible assets
9 14,861 -
Decrease in other non-current financial assets
Increase in short-term financial instruments
8 (1,747,427) (1,071,379)
Increase in other non-current financial assets (1,883,900) (879,063)
Net cash used in investing activities (82,471,756) (36,049,464)
Proceeds from capital contribution from non-controlling interests
Payment of share issuance costs
(11,539) (16,654)
Repayment of lease liabilities
(3,647,934) (2,892,567)
Net cash used in financing activities (3,306,019) (2,547,245)
Effects of exchange rate changes on cash and cash equivalents
(11,527,539) 31,204,503
Cash and cash equivalents at beginning of the year
110,632,482 79,427,979
Cash and cash equivalents at end of the year
99,104,943 110,632,482
(1) The Parent Company
GRAVITY CO., LTD. ("the Parent Company") was incorporated on April 4, 2000, to engage in developing and publishing online and mobile games, and other related business. The Parent Company's headquarter is located at 15F, 396 World Cup buk-ro, Mapo-gu, Seoul, Korea. The Parent Company's principal game product, "Ragnarok", a massive multi-player online role-playing game, was commercially launched in August 2002, and currently operated internationally in 91 markets. The Parent Company also operates many other games.
On February 8, 2005, the Parent Company listed its shares on the Nasdaq Stock Market in the United States, and issued 1,400,000 shares of common stocks in the form of American Depositary shares ("ADSs") under the symbol "GRVY".
As of December 31, 2021, the Parent Company's total paid-in capital amounts to W3,474,450 thousand. The Parent Company's major shareholders and their respective percentage of ownership as of December 31, 2021 are as follows:
Ownership (%)
GungHo Online Entertainment, Inc.
(2) Consolidated subsidiaries
Details of the consolidated subsidiaries as of December 31, 2021 and 2020 are as follows:
Percentage of ownership (%)
Gravity Interactive, Inc.
Online and mobile game services
Gravity NeoCyon, Inc.
Mobile Game Development and Service
Gravity Communications Co., Ltd.
PT. Gravity Game Link
Gravity Game Tech Co., Ltd.
Gravity Game Arise Co., Ltd.
Gravity Game Hub PTE., Ltd.(*)
(*) Gravity Game Hub PTE., Ltd. was established during 2021 and has been included in subsidiary since then.
1. General Information, Continued
(3) Condensed financial information of subsidiaries as of and for the years ended December 31, 2021 and 2020 are as follows:
(In thousands of won) 2021
assets(*)
liabilities(*)
Revenues(*)
Profit (loss)
for the period(*)
Gravity Interactive, Inc. W 26,385,056
Gravity Game Hub PTE., Ltd.
(*) Amounts before eliminating related party transactions.
assets(*1)
liabilities(*1)
Revenues(*1)
for the period(*1)
Gravity Entertainment Corp.(*2)
(*1) Amounts before eliminating related party transactions.
(*2) Gravity Entertainment Corp. was liquidated during 2020 and has been excluded from subsidiary since then.
2. Basis of Presentation
These consolidated financial statements have been prepared in accordance with Korean International Financial Reporting Standards ("K-IFRS"), as prescribed in the Act on External Audits of Stock Companies, Etc. in the Republic of Korea.
These consolidated financial statements were authorized for issuance by the Board of Directors on March 8, 2022, and are expected to be submitted for approval at the shareholders' meeting to be held on March 31, 2022.
2. Basis of Presentation, Continued
(1) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis.
(2) Use of judgments and estimates
The preparation of the consolidated financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
(a) Deferred revenue
As discussed in Note 4 (13), the Group sells virtual currency and items that can be used in online and mobile games to game users. For each game in each country, the Group estimates and applies the game user's life cycle in order to recognize revenue generated by micro-transactions. The game user's life cycle is estimated based on the average period from the game user's first payment date to the last access date for active paying game users. The Group considers a game user as an active user if the period between the time of the user's most recent access of the game and the end of reporting period equals or is shorter than the estimated game users' life cycle. For remaining amounts of virtual currency and items that active users own at period-end, the related revenue is deferred considering whether the virtual currency is refundable and items' attributes. The Group estimates the user's life cycle by analyzing game users' activity patterns such as payment and access and it periodically reviews if there is any change of these estimates.
(b) Deferred tax assets
When the Group assesses the realizability of deferred tax assets, the Group considers its performance, general economic environment, projected future taxable income, and periods available to utilize tax loss carryforwards and tax credit carryforwards. The Group periodically monitors the estimates used in assessing the realizability of the deferred tax assets. The amount of deferred tax assets may be changed if estimated future taxable income during the carryforward periods changes.
3. Changes in accounting policies
The Group has applied the following standards and amendments for the first time for the annual reporting period commencing on January 1, 2021.
(1) Amendments to K-IFRS No. 1116 Lease-Practical expedient for COVID-19_Related Rent Concessions
As a practical expedient, a lessee may elect not to assess whether a rent concession occurring as a direct consequence of the COVID-19 pandemic is a lease modification. A lessee that makes this election shall account for any change in lease payments resulting from the rent concession as the same way it would account for the change applying this Standard if the change were not a lease modification. The amendments do not have a significant impact on the consolidated financial statements.
(2) Amendment to K-IFRS No. 1109 Financial Instruments, K-IFRS No. 1039 Financial Instruments: Recognition and Measurement, K-IFRS No. 1107 Financial Instruments: Disclosure, K-IFRS 1104 Insurance Contracts and K-IFRS 1116 Lease-Interest Rate Benchmark Reform (Phase 2 amendments)
In relation to interest rate benchmark reform, the amendments provide exceptions including adjust effective interest rate instead of book amounts when interest rate benchmark of financial instruments at amortized costs is replaced, and apply hedge accounting without discontinuance although the interest rate benchmark is replaced in hedging relationship. The amendments do not have a significant impact on the consolidated financial statements.
4. Significant Accounting Policies
The principal accounting policies applied in the preparation of these consolidated financial statements in accordance with the K-IFRS are set out below. These policies have been consistently applied to all years presented, except if mentioned otherwise in Note 3.
(1) Consolidation
The Group has prepared the consolidated financial statements in accordance with K-IFRS No. 1110 Consolidated Financial Statements.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are consolidated from the date on which control is obtained by the Group. They are deconsolidated from the date on which control ceases.
4. Significant Accounting Policies, Continued
(1) Consolidation, Continued
The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets. Acquisition-related costs are expensed as incurred.
The excess of consideration transferred, amount of any non-controlling interest in the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in the profit or loss as a bargain purchase.
Intercompany transactions, balances and unrealized gains on transactions between consolidated companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
(2) Segment reporting
Information of each operating segment is reported in a manner consistent with the internal business segment reporting provided to the chief operating decision-maker (Note 23). The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.
(3) Cash and Cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, and other short-term investments with original maturities of three months or less that are readily convertible to known amounts of cash.
(4) Financial Assets
(a) Classification
At initial recognition, the Group classifies its financial assets in the following measurement categories:
•measured at fair value through profit or loss;
•measured at fair value through other comprehensive income; and
•measured at amortized cost.
The classification depends on the Group's business model for managing the financial assets and the contractual terms of the cash flows.
(4) Financial Assets, Continued
(a) Classification, Continued
For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Group reclassifies debt investments when, and only when its business model for managing those assets changes.
For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of equity instruments not elected as equity investment at fair value through other comprehensive income will be recognized in profit or loss.
(b) Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, for financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.
(i) Debt instruments
Subsequent measurement of debt instruments depends on the Group's business model for managing the asset and the cash flow characteristics of the asset. The Group classifies its debt instruments into one of the following three measurement categories:
•Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in 'finance income' using the effective interest rate method.
(b) Measurement, Continued
(i) Debt instruments, Continued
•Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in 'finance income' using the effective interest rate method. Foreign exchange gains and losses are presented in 'finance income or costs' and impairment losses are presented in 'other non-operating expenses'.
•Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within 'finance income or costs' in the year in which it arises.
(ii) Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group's management has elected to present fair value gains and losses on equity investments, which are held for long-term investment or strategic purpose, in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividend income from such investments continue to be recognized in profit or loss as 'finance income' when the right to receive payments is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognized in 'other non-operating income or expenses' in the statement of profit or loss as applicable. Impairment loss (reversal of impairment loss) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value.
(c) Impairment
The Group recognizes loss allowances for expected credit losses("ECLs") on:
•financial assets measured at amortized cost;
•debt investments measured at fair value through other comprehensive income; and
•contract assets under K-IFRS No. 1115.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs:
•debt securities that are determined to have low credit risk at the reporting date; and
•other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for accounts and other receivables (including lease receivables) and contract assets are always measured at an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment, that includes forward-looking information.
The Group considers a financial asset to be in default when:
•the debtor is unlikely to pay its obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held); or
•the financial asset is more than 90 days past due.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.
(c) Impairment, Continued
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.
At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at fair value through other comprehensive income are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at fair value through other comprehensive income, the loss allowance is charged to profit or loss and is recognized in other comprehensive income.
(d) Recognition and Derecognition
Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received.
(e) Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount reported in the consolidated statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.
(5) Property and Equipment
Property and equipment are initially measured at cost. The cost of property and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
(5) Property and Equipment, Continued
Property and equipment, subsequently, are carried at cost less accumulated depreciation and accumulated impairment losses.
Subsequent costs are recognized in the carrying amount of property and equipment at cost or, if appropriate, as a separate item if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be reliably measured.
Depreciation of all property and equipment, except for land, is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows:
Estimated Useful Lives
Computer and other equipment 4 years
Furniture and fixture 4 years
Leasehold improvements 4 years
(*) The Group depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term using the straight-line method.
Depreciation methods, useful lives, and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate.
(6) Intangible Assets
Intangible assets, except for goodwill, are initially recognized at its historical cost, and carried at cost less accumulated amortization and accumulated impairment losses.
The Group amortizes intangible assets with a limited useful life using the straight-line method over the following periods:
Software 1~3 years
Patents 10 years
Other intangible assets 3 years
Expenditure on research activities is recognized in profit or loss as incurred. Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditure is recognized in profit or loss as incurred.
(6) Intangible Assets, Continued
The Group entered into a game licensing agreement with a number of third parties to gain exclusive rights to the games developed by those companies. The license fee payments are recognized as other intangible assets and amortized over the term of the contract using the straight-line method.
(7) Impairment of Non-financial Assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than contract assets, incremental costs of obtaining a contract, costs to fulfil a contract, employee benefit related assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amounts to their carrying amounts.
The recoverable amount of an asset or cash generating unit ("CGU") is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using an adjusted discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
An impairment loss is recognized in profit or loss if the carrying amount of an asset or CGU exceeds its recoverable amount.
(8) Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in K-IFRS No. 1116.
(a) As a lessee
At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of datacenter the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.
The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
(8) Leases, Continued
(a) As a lessee, Continued
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rates.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
•fixed payments, including in-substance fixed payments;
•variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
•amounts expected to be payable under a residual value guarantee; and
•the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in 'property and equipment' and lease liabilities in 'Other current liabilities' and 'Other non-current liabilities' in the consolidated statement of financial position.
The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
(b) As a lessor
At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, then the Group applies K-IFRS No. 1115 to allocate the consideration in the contract.
The Group applies the derecognition and impairment requirements in K-IFRS No. 1109 to the net investment in the lease. The Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease.
The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'other revenue'.
(9) Financial Liabilities
(a) Classification and measurement
The Group's financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not a designated as hedging instruments and an embedded derivative that is separated are also classified as held for trading.
The Group classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortized cost and present as 'accounts payable', 'other current liabilities' and 'other non-current liabilities' in the consolidated statement of financial position.
(b) Derecognition
Financial liabilities are removed from the consolidated statement of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or cancelled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
(10) Provisions and Contingent Liabilities
Provisions for legal claims, service warranties and make good obligations are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.
In addition, when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability, a disclosure regarding the contingent liabilities is made in the notes to the financial statements.
(11) Foreign Currency Translation
(a) Functional and presentation currency
Items included in the consolidated financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which each entity operates (the "functional currency"). The consolidated financial statements are presented in Korean won, which is the Parent Company's functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the exchange rate at the reporting date are generally recognized in profit or loss. They are recognized in other comprehensive income if they relate to qualifying cash flow hedges and qualifying effective portion of net investment hedges, or are attributable to monetary part of the net investment in a foreign operation.
Exchange differences arising on non-monetary financial assets and liabilities such as equity instruments at fair value through profit or loss and equity instruments at fair value through other comprehensive income are recognized in profit or loss and other comprehensive income, respectively, as part of the fair value gain or loss.
(12) Statement of cash flows
The Group has elected to present cash flows from operating activities using the indirect method. Cash flows denominated in a foreign currency are reported using average exchange rate during the fiscal year.
(13) Revenues from contracts with customers
The Group engages in game licensing, IP licensing and game publishing businesses.
Revenue is measured at the fair value of the consideration received or receivable for the sale of goods or rendering of services arising from the normal course of the business. Amounts recognized as revenue are net of value added taxes, returns, rebates and discounts.
(13) Revenues from contracts with customers, Continued
(a) Revenue from micro-transaction and subscription
The Group recognizes micro-transaction revenue of online and mobile games when the Group satisfies its performance obligations.
When the performance obligations are satisfied depends on the natures of virtual currency and items. Items are categorized into consumable, periodic, and permanent items.
Consumable in-game virtual items are items that are consumed by the specific action of a game user, and periodic in-game virtual items are items that can be used repeatedly during a specified effective period. Permanent in-game virtual items are items that can be used by game users repeatedly without an effective period.
The accounting policy on revenue recognition is described below in relation to micro-transaction revenue from the sales of virtual currency and items.
(i) Online Games
At the end of the reporting period, the Group defers the total amount of remaining virtual currency as the Group has the obligation to refund for remaining virtual currency.
For consumable in-game virtual items, the related revenue is recognized when the in-game virtual item is consumed. The Group defers the revenue for remaining amounts of virtual items owned by active users within the estimated user life cycle at the end of the reporting period. For periodic in-game virtual items, the related revenue is recognized ratably over the effective period. The Group defers the revenue for remaining effective period. For permanent in-game virtual items, revenue is recognized ratably over the estimated user life cycle. The Group defers the revenue for remaining period of estimated user life cycle at the end of the reporting period.
The Group recognizes online subscription revenue as game users make use of in-game premium features. Subscription revenue comes from subscription fee for internet cafés. Prepaid subscription fees from internet cafés are deferred and recognized as revenue monthly based on actual hours used.
(ii) Mobile Games
Mobile game users purchase virtual currency that can be used to purchase in-game items. The Group has no refund obligation after the game users purchase virtual currency.
At the end of the reporting period, the Group defers the revenue for the remaining virtual currency possessed by paying active users.
(a) Revenue from micro-transaction and subscription, Continued
(ii) Mobile Games, Continued
For consumable in-game virtual items, revenue is recognized when the in-game virtual item is consumed. The Group defers the revenue for remaining virtual items possessed by active users within the estimated user life cycle at the end of the reporting period. For periodic in-game virtual items with effective period, revenue is recognized ratably over the effective period. The Group defers the revenue for remaining effective period. For permanent in-game virtual items, revenue is recognized ratably over the estimated user life cycle. The Group defers the revenue for remaining period of estimated user life cycle at the end of the reporting period.
(b) Online and Mobile games—royalties and license fees
In connection with the Group's online and mobile games, the Group enters into license agreement in connection with the right to access the intellectual property, such as game character images and stories. The Group believes that the agreement is a promise to provide a right to the customer to access the related IP because the Group will undertake activities that significantly affect the intellectual property to which the customer has rights, the rights granted by the license directly expose the customer to any positive or negative effects of the Group's activities, and those activities do not result in the transfer of a good or a service to the customer as those activities occur. Therefore, the Group's performance obligations in connection with these agreements are satisfied over time. Since the nature of the license promise is to provide customers with access to the intellectual property of the Group during the license period, the Group's performance obligation corresponds to the performance obligation satisfied over time, and revenue is recognized over the license period. The Group recognizes revenue for the license fee through the straight-line method during the contract period, and for the running royalty revenue, the revenue is recognized on an accrual basis at the time the revenue distribution is established in accordance with the terms of the contract. When the running royalty revenue based on the contractual royalty rate and the actual revenue of the licensee exceeds the ratably recognized minimum guarantee, the excess amount is then recognized as revenue and accounts receivable.
(c) Other revenue
Other revenue consists of revenue from sales of console games, game character merchandise, animation and other services, including website development and operation services for third parties. Revenues from development and operation services for third parties are recognized over time by measuring progress towards complete satisfaction of a performance obligation. The progress is measured by reference to the costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract.
(d) Incremental costs of obtaining contract
The Group pays platform processing fees to operate mobile games on third party platforms. These fees are charged based on the game users' purchases in cash and considered as incremental cost of obtaining contracts with customer and therefore capitalized. The Group presents these costs as prepaid expense and amortizes them to costs of revenue at the same time when the related revenue of the services provided to the game users are recognized.
(14) Current and Deferred Tax
The tax expense for the period consists of current and deferred tax. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. The tax expense is measured at the amount expected to be paid to the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and tax credit.
The Group recognizes a deferred tax liability all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint arrangements, except to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. In addition, the Group recognizes a deferred tax asset for all deductible temporary differences arising from such investments to the extent that it is probable the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis.
(15) Employee Benefits
(a) Short-term employee benefits
Short-term employee benefits are employee benefits that are due to be settled within 12 months after the end of the period in which the employees render related services. When an employee has rendered a service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.
(b) Defined contribution pension plan
The Group has a defined contribution pension plan with the related contribution to the pension plan recorded as severance benefit expenses for the employees with service period over a year. The Group recognizes provision for severance benefits for the employees with service period less than a year.
(16) Standards issued but not yet effective
A number of new standards are effective for annual periods beginning after January 1, 2021 and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing these consolidated financial statements.
The following new and amended standards and interpretations are not expected to have a significant impact on the Group's consolidated financial statements.
•COVID-19 Related Rent Concessions (Amendment to K-IFRS No 1116)
•Reference to Conceptual Framework (Amendment to K-IFRS No 1103)
•Classification of Liabilities as Current or Non-current (Amendment to K-IFRS No 1001)
•Proceeds before intended use (Amendment to K-IFRS No 1016)
•Onerous Contracts – Cost of Fulfilling a Contract (Amendments to K-IFRS No 1037)
•K-IFRS No 1117 Insurance Contracts
•Annual Improvements to K-IFRS Standards 2018~2020
5. Cash and cash equivalents
(1) Cash and cash equivalents as of December 31, 2021 and 2020 are as follows:
(In thousands of won) December 31, 2021 December 31, 2020
Demand deposits, etc. W 99,104,943 110,632,482
(2) The Group does not have any restricted cash and cash equivalents as of December 31, 2021 and 2020.
6. Financial Instruments by Category
(1) Carrying amounts of financial instruments by category as of December 31, 2021 and 2020 are as follows:
(In thousands of won) December 31, 2021
Financial assets at amortized cost
Accounts receivable, net 52,614,595 59,761,256
Other receivables, net 6,085 8,333
Other current financial assets 598,099 817,825
Other non-current financial assets 3,018,823 1,323,865
Financial assets at fair value through profit or loss
5,000,000 -
Financial liabilities at amortized cost
Accounts payable(*)
Long-term accounts payable
Accrued expenses(*)
Other current liabilities 3,606,965 2,653,144
Other non-current liabilities 5,123,598 3,247,072
(*) Accounts payable and accrued expenses that are not financial liabilities are excluded.
6. Financial Instruments by Category, Continued
(2) Net income(expenses) from financial instruments for the years ended December 31, 2021 and 2020 are as follows:
(In thousands of won) 2021 2020
Differences in foreign currency
3,518,458 (708,221)
(820,772) 537,117
(3) Fair value hierarchy
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
•Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
•Level 2: all inputs other than quoted prices included in level 1 that are observable (either directly that is, prices, or indirectly that is, derived from prices) for the asset or liability;
•Level 3: unobservable inputs for the asset or liability.
The fair value of financial instruments traded in an active market is determined based on the quoted market price as of the end of the reporting period. If the quoted prices are readily and regularly available through exchanges, sellers, brokers, industry groups, rating agencies or regulators and such prices represent actual market transactions that occur regularly between independent parties, they are considered active markets. These products are included in Level 1.
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques use as much market observable information as possible and use the least amount of company-specific information. At this time, if all the significant input variables required to measure the fair value of a good are observable, the good is included in Level 2.
If more than one significant input variable is not based on observable market information, the item is included in Level 3.
(3) Fair value hierarchy, Continued
The valuation techniques used to measure the fair value of a financial instrument include:
- Market price or dealer price of a similar financial instrument
- The fair value of derivative instruments is determined by discounting the amount to present value using the leading exchange rate as of the end of the reporting period
For the other financial instruments, the Group applied other valuation techniques such as discounted cash flow, etc. As of December. 31 2021. the Group has W5,000,000 thousand of short-term financial instruments measured at fair value through profit or loss that is classified as level 2. For the financial assets and liabilities of which carrying amount are reasonable approximation of fair value, those were excluded from fair value disclosure.
7. Accounts and Other Receivables
(1) Accounts and other receivables as of December 31, 2021 and 2020 are as follows:
Other receivables
Non-related party
48,050,332 1,085,325 57,792,924 13,142
5,253,873 - 2,547,419 -
Less: Loss allowance
(689,610) (4,809) (579,087) (4,809)
Accounts and other receivables, net
52,614,595 1,080,516 59,761,256 8,333
(2) Changes in the loss allowance of accounts and other receivables during the years ended December 31, 2021 and 2020 are as follows:
Beginning balance
579,087 4,809 165,065 4,272
Bad debt expenses
933,226 - 712,184 537
Reversal of allowance for doubtful accounts
(131,927) -
Write-off
(690,776) - (248,395) -
7. Accounts and Other Receivables, Continued
(3) Expected credit losses (ECLs) and credit risk exposures for accounts and other receivables as of December 31, 2021 and 2020 are as follows:
(a) Accounts receivable
Expected loss rate(%)
Not due or overdue for less than 90 days
More than 90 days ~ Less than 180 days
More than 180 days ~ Less than 270 days 73.2
More than 270 days ~ Less than 1 year 98.8
More than 1 year 100.0
57,661,634 54,409
5.0 2,138,182 107,297
More than 180 days ~ Less than 270 days 55.3 275,733 152,645
More than 270 days ~ Less than 1 year 99.9 79,025 78,967
More than 1 year 100.0 185,769 185,769
W 60,340,343 579,087
(3) Expected credit losses (ECLs) and credit risk exposures for accounts receivable as of December 31, 2021 and 2020 are as follows, Continued:
(b) Other receivables
Bad debt
0.0 W 1,080,516 -
0.0 - -
More than 180 days ~ Less than 270 days 0.0 - -
More than 270 days ~ Less than 1 year 0.0 - -
More than 1 year 100 4,809 4,809
W 1,085,325 4,809
0.0 W 8,333 -
W 13,142 4,809
In assessing the recoverability of accounts and other receivables, the Group considers changes in the credit rating of accounts and other receivables from the commencement of the credit to the end of the reporting period.
The Group applies simplified approach for accounts and other receivables to measure the loss allowance at an amount equal to lifetime expected credit losses. To measure the expected credit losses, accounts and other receivables are grouped based on credit risk characteristics and the duration of past due balances. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls. The Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes the Group's historical experience and informed credit assessment, that includes forward-looking information.
(1) Details of property and equipment as of December 31, 2021 and 2020 are as follows:
Acquisition cost
Computer and other equipment
W 6,654,286 (5,199,734) 1,454,552 6,074,169 (4,695,201) 1,378,968
Furniture and fixture
1,793,228 (1,412,770) 380,458 2,037,880 (1,727,467) 310,413
- - - 128,163 - 128,163
(3,223) 5,878 9,101 (948) 8,153
Leasehold improvements
15,860,960 (7,120,960) 8,740,000 11,500,352 (5,763,112) 5,737,240
W 26,252,580 (14,914,581) 11,337,999 20,910,121 (13,215,075) 7,695,046
(2) Changes in property and equipment for the years ended December 31, 2021 and 2020 are as follows:
and fixture
Constru-ction in progress
Improve-ments
Beginning balance W 1,378,968 310,413 128,163 8,153 132,109 5,737,240 7,695,046
Acquisitions/Capital expenditure
- - 753,223 6,318,561 8,105,097
Depreciation (646,546) (249,410) - (2,275) (223,319) (3,448,318) (4,569,868)
Disposals (15,161) (2,028) - - (44,303) (62,827) (124,319)
Reclassification - (80) (128,163) - 128,243 - -
Foreign exchange differences
- - 11,158 195,344 232,043
Ending balance W 1,454,552 380,458 - 5,878 757,111 8,740,000 11,337,999
Beginning balance W 1,056,984 442,778 - - 217,402 4,946,280 6,663,444
849,675 81,174 128,163 9,101 3,266 3,783,994 4,855,373
Depreciation (529,285) (212,696) - (948) (83,430) (2,956,888) (3,783,247)
Disposals (1,061) (766) - - (2,032) (13,562) (17,421)
2,655 (77) - - (3,097) (22,584) (23,103)
Ending balance W 1,378,968 310,413 128,163 8,153 132,109 5,737,240 7,695,046
8. Property and Equipment, Continued
(3) Classification of depreciation expenses in the statements of comprehensive income for the years ended December 31, 2021 and 2020 are as follows:
Cost of revenues W 2,102,270 2,123,300
Selling, general and administrative expenses(*)
W 4,569,868 3,783,247
(*) The deprecation expenses recognized as the research and development included in selling, general and administrative expenses was W301,242 thousand and W235,771 thousand, respectively, for the years ended December 31, 2021 and 2020.
(4) As of December 31, 2021 and 2020, there are no property and equipment that are pledged as collateral for the Group's debts.
9. Intangible Assets
(1) Details of intangible assets as of December 31, 2021 and 2020 are as follows:
Accumulated amortization(*)
Software W 14,491,146 (13,226,409) 1,264,737 14,303,511 (12,069,126)
Patents 1,082,626 (600,313) 482,313 858,883 (526,741) 332,142
Other intangible assets
6,264,360 (4,669,382) 1,594,978 4,545,813 (3,749,461) 796,352
W 21,838,132 (18,496,104) 3,342,028 19,708,207 (16,345,328) 3,362,879
(*) Accumulated amortization includes the amount of accumulated impairment loss.
(2) Changes in intangible assets for the years ended December 31, 2021 and 2020 are as follows:
Software Patents Other intangible assets Total
Beginning balance W 2,234,385 332,142 796,352 3,362,879
116,210 223,743 1,676,369 2,016,322
Amortization (1,087,557) (73,572) (586,413) (1,747,542)
- - (14,861)
Impairment(*) - - (281,008) (281,008)
16,560 - (10,322) 6,238
Ending balance W 1,264,737 482,313 1,594,978 3,342,028
(*) The Group recognized W281,008 thousand of impairment loss as carrying amount of the other intangible assets exceeded recoverable amount as of December 31, 2021.
9. Intangible Assets, Continued
(2) Changes in intangible assets for the years ended December 31, 2021 and 2020 are as follows, Continued:
W 1,143,794 185,427 387,839 1,717,060
1,985,736 184,978 725,494 2,896,208
(897,141) (38,263) (201,820) (1,137,224)
Impairment(*)
- - (115,475) (115,475)
1,996 - 314 2,310
(3) Classification of amortization in the statements of comprehensive income for the years ended December 31, 2021 and 2020 are as follows:
Selling, general and administrative expenses(*) 1,010,514 657,822
(*) The amortization recognized as the research and development included in selling, general and administrative expenses was W80,081 thousand and W60,551 thousand, respectively, for the years ended December 31, 2021 and 2020.
10. Employee Benefit
The expenses recognized in relation to defined contribution plan for the years ended December 31, 2021 and 2020 are W2,067,288 thousand and W1,968,132 thousand, respectively. In addition, expenses related to defined benefit plans amounting to W19,848 thousand are included in other non-current liabilities as of December 31, 2021.
11. Commitments
(1) The Parent Company has entered into exclusive license agreements with foreign licensees, such as GungHo Online Entertainment, Inc., Innova Intellectual Properties S.a.r.l, Shanghai TA REN Network Technology Co. Ltd., and etc. to provide exclusive license to distribute and sell online games and receives a certain portion of each licensee's revenues (20-40%) as royalties.
(2) In July 2021, the Parent Company and Shanghai TA REN Network Technology Co., Ltd. entered into development agreements to grant them the right to develop mobile games based on the contents of Ragnarok Online and distribute such games in China for 3 years.
(3) As of December 31, 2021, the Group has entered into license agreements with various third-party game developers to secure exclusive right to publish the games developed by the third-party developers. Upfront license fees paid are capitalized and recognized as other intangible assets and minimum guaranteed royalties are capitalized and recognized as other non-current assets. Purchase obligations for future payment related to above agreements as of December 31, 2021 and 2020 are W2,335,425 thousand and W3,309,965 thousand, respectively.
(4) As of December 31, 2021, the Parent Company benefited from payment guarantee of USD 818,000 from KB Kookmin Bank regarding overseas IP contracts.
(5) As of December 31, 2021, the Group has been provided with a payment guarantee amounting to W1,818,168 thousand from Seoul Guarantee Insurance Co., Ltd.
12. Share Capital and Share Premium
(1) Details of common shares as of December 31, 2021 and 2020 are as follows:
(In won and in number of shares)
Number of authorized shares 40,000,000 40,000,000
Value per share W 500 500
Number of shares issued 6,948,900 6,948,900
Common shares
3,474,450,000 3,474,450,000
(2) Details of share premium as of December 31, 2021 and 2020 are as follows:
Other capital surplus 1,806,053 1,806,053
12. Share Capital and Share Premium, Continued
(3) Details of other components of equity as of December 31, 2021 and 2020 are as follows:
Remeasurements of defined benefit liability W (1,933) -
Foreign currency translation adjustments 2,182,321 (1,044,533)
W 2,180,388 (1,044,533)
(4) Details of retained earnings as of December 31, 2021 and 2020 are as follows:
Unappropriated retained earnings W
(5) According to the Parent Company's Articles of Incorporation, the Parent Company may issue 2,000,000 shares of preferred stock without voting rights, and there are no preferred shares issued as of December 31, 2021.
13. Revenue from Contracts with Customers
(1) Details of revenue from contracts with customers based on the service contract type and the timing of satisfaction of performance obligations are as follows:
Micro-transaction and subscription revenue W 229,028,411
- Online Game
- Mobile Game
Royalties and license fees
- Online Game 10,988,301
- Mobile Game 155,517,238
Others 18,404,024
W 413,937,974
Timing of satisfaction of performance obligations
At a point in time 7,496
13. Revenue from Contracts with Customers, Continued
(2) Accounts receivables, incremental costs of obtaining a contract and contract liabilities related to contracts with customers as of December 31, 2021 and December 31, 2020 are as follows:
Incremental costs of obtaining a contract (Prepaid expenses) 860,626
Contact liabilities (Deferred revenue)
Micro-transaction and subscription revenue
Website and application development
(3) Changes in contract liabilities for the years ended December 31, 2021 and 2020 are as follows:
(In thousands of won) Contract liabilities
Balance at January 1 W 13,793,298
Increase related to micro transaction and subscription revenue 26,380,295
Increase related to royalties and license fees 204,044
Increase related to website and application development 8,455,518
Decrease upon satisfaction of performance obligation
– micro transaction and subscription revenue
– royalties and license fees
- web and application development
Balance at December 31
The amount of revenue recognized from previous period's contract liabilities satisfied during the year ended December 31, 2021 is W13,692,283 thousand.
(4) Transaction price allocated to unsatisfied performance obligations as of December 31, 2021 and 2020 are as follows:
Micro transaction and subscription revenue
Royalties and license fees 116,281 306,620
Website and application development 840,400 600,237
W 13,578,744
(4) Transaction price allocated to unsatisfied performance obligations as of December 31, 2021 and 2020 are as follows, Continued:
The Group's management expects to recognize 99.3% (W13,480,518 thousand) of the transaction price allocated to contracts that have not been performed as of December 31, 2021 as revenue within 12 months. The remaining 0.7% (W98,226 thousand) is expected to be recognized as revenue thereafter. The amounts disclosed above do not include variable consideration which is constrained.
(5) Details of incremental costs of obtaining a contract recognized as assets as of December 31, 2021 and 2020 are as follows:
Incremental costs of obtaining a contract W 860,626 1,276,880
Incremental costs of obtaining a contract recognized as cost of revenues
14. Classification of expenses by nature
Details of classification of expenses by nature for the years ended December 31, 2021 and 2020 are as follows:
Fees and commissions W 215,612,852 230,411,406
Advertising expenses 35,947,806 30,083,581
Salaries 35,532,330 32,340,302
Outsourcing expenses
Rent 1,125,317 920,119
Employee benefits 3,389,869 3,328,850
Expenses related to defined contribution plan 2,090,517 2,030,438
Depreciation 4,569,868 3,783,247
Amortization 1,747,542 1,137,224
Others 3,360,644 2,944,052
Total expenses consist of cost of sales, selling, general and administrative expenses.
15. Selling, General and Administrative Expenses
Details of the selling, general and administrative expenses for the years ended December 31, 2021 and 2020 are as follows:
Advertising expenses W 35,947,806 30,083,581
Fees and commissions 13,959,003 13,927,755
Research and development 16,569,508 15,033,944
Rent 529,623 459,633
Expenses related to defined contribution plan 729,380 584,757
Amortization 930,433 597,271
Other expenses 4,280,113 2,142,600
16. Finance Income and Costs
(1) Details of finance income for the years ended December 31, 2021 and 2020 are as follows:
Unrealized foreign currency gain
Gain on foreign currency transactions
(2) Details of finance costs for the years ended December 31, 2021 and 2020 are as follows:
W 115,321 185,742
Unrealized foreign currency loss
Loss on foreign currency transactions
17. Other Non-Operating Income and Expenses
(1) Details of other non-operating income for the years ended December 31, 2021 and 2020 are as follows:
Gain on disposal of property and equipment 6,648 1,749
Reversal of allowance for doubtful accounts - 49,767
Others 600,083 606,382
(2) Details of other non-operating expenses for the years ended December 31, 2021 and 2020 are as follows:
Loss on disposal of property and equipment 56,897 2,549
Impairment loss on intangible assets 281,008 115,475
Impairment loss on other non-current assets
Donations 1,200 13,000
18. Income tax expense
(1) Details of income tax expense for the years ended December 31, 2021 and 2020 are as follows:
Current tax expense
Adjustments recognized related to prior period income
Deferred tax expense
Changes in net deferred tax assets
18. Income tax expense, Continued
(2) The differences between the tax expense on the Group's profit before tax and the amount that would arise using the statutory tax rates applicable to profits of the entities are as follows:
Profit before income tax expense W 99,300,532 88,011,110
Income tax using the statutory tax rate of each country 25,957,358 19,828,535
Adjustments:
Expenses not deductible for tax purposes
Foreign tax credits
Change in estimates related to prior period
- 11,483
Utilization of previously unrecognized tax losses
- (412,268)
(765,118) (1,022,086)
Additional tax for insufficient investments in designated areas
Changes in deferred tax liabilities related to investment in subsidiaries
Effect of change of foreign currency exchange rate
(2,006) (18,850)
Income tax expense W 33,420,741 25,455,435
Effective tax rate 34% 29%
(3) Details of the changes in deferred tax assets (liabilities) for the years ended December 31, 2021 and 2020 are as follows:
Other non-current assets
Allowance for doubtful account
Other non-current liabilities
Investment in subsidiaries
Taxes paid to foreign countries
Subtotal(Ⅰ)
Deferred tax due to carry-forward deficits(Ⅱ)
Deferred tax due to tax credit carry-forward(Ⅲ)
Deferred tax asset(Ⅰ+Ⅱ+Ⅲ) (*)
(*) The future realizability of deferred tax assets is assessed by taking into consideration various factors such as the Group's performance, the overall economic environment and industry outlook, expected future earnings, and deductible period of tax credit carry-forward. As of December 31, 2021, the Group has recognized deferred tax assets related to temporary differences, carry-forward deficits and tax credit carry-forward, which can be utilized based on the likelihood of future taxable income. This amount may change if the estimate for future taxable income changes.
(4) Details of unused tax loss carryforwards and unused tax credit carryforwards that are not recognized as deferred income tax assets as of December 31, 2021 are as follows:
Year of expiration Unused loss carryforwards
Unused tax credit carryforwards
2023 W 1,023,021 -
2024 2,648,483 -
After 2026 5,916,856 1,614,098
Total W 12,536,210 1,789,469
As of December 31, 2021 and 2020, the Group did not recognize deferred income tax asset for the temporary difference of W14,877,089 thousand and W18,489,150 thousand relating to investments in subsidiaries and other temporary differences of W630,686 thousand and W750,590 thousand, respectively, as it is not probable such temporary differences can be utilized in the foreseeable future.
19. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Parent by the weighted average number of common shares outstanding each year.
(1) Basic earnings per share
(In thousands won and in number of shares)
Profit attributable to owners of the Parent W
Weighted average outstanding shares of common shares 6,948,900 6,948,900
Basic earnings per share(in won)
(2) Diluted earnings per share
As of and for the years ended December 31, 2021 and 2020, the Parent Company does not have outstanding dilutive potential ordinary shares. Accordingly, the diluted earnings per share for the years ended December 31, 2021 and 2020 are the same as the basic earnings per share.
20. Cash flow information
(1) Adjustments for calculating cash generated from operations for the years ended December 31, 2021 and 2020 are as follows:
Adjustments for:
Bad debt expense
Impairment loss on intangible asset
Retirement benefit expenses
Gain on disposal of property and plant
(6,648) (1,749)
Loss on disposal of property and plant
(131,927) (49,767)
(2) Changes in assets and liabilities arising from operating activities for the years ended December 31, 2021 and 2020 are as follows:
Accounts receivable W 5,529,558 (29,116,366)
Other receivables (1,081,577) 59,867
Prepayment 2,165,238 (2,755,198)
Prepaid expense (3,296,129) (2,134,645)
Other current assets 243,483 622,435
Other non-current assets 144,235 2,255,241
Accounts payable (8,512,361) 15,510,243
Deferred revenue 1,184,816 3,332,169
Withholding 685,623 1,217,663
Accrued expense 118,271 180,641
Other current liabilities 34,012 (1,256,588)
Other non-current liabilities (99,045) (867,887)
W (2,883,876) (12,952,425)
20. Cash flow information, Continued
(3) Significant non-cash transactions for the years ended December 31, 2021 and 2020 are as follows:
Reclassification of prepayment to intangible assets W
Increase in accounts payable relating to the acquisition of software
Acquisition of right-of-use assets 6,055,394 3,783,994
(4) Changes in liabilities arising from financing activities for the years ended December 31, 2021 and 2020 are as follows:
Beginning of the year W 5,900,216 4,994,159
Cash flows used in financial activities – payment of lease liabilities (3,647,934) (2,892,567)
Cash flows used in operating activities – Interest paid (111,416) (185,742)
Acquisitions – leases
Early termination of leases
- (14,729)
Translation difference 422,887 29,359
Ending of the year
21. Leases
The Group leases offices, vehicles and others. The leases typically run for a period of 1~ 5 years with an option to renew or terminate the lease after that date. There are no restrictions or covenants imposed to leases, but the lease assets are not be provided as collateral for borrowings.
(1) Details of right-of-use assets and lease liabilities recognized in the consolidated statements of financial position as of December 31, 2021 and 2020 are as follows:
Right-of-use assets(*1)
Offices W 6,698,105 3,904,222
Vehicles 292,432 102,149
Lease liabilities(*2)
Current 3,606,965 2,653,144
Non-current 5,123,598 3,247,072
(*1) Right-of-use assets are included in the 'Property and equipment' in the consolidated statement of financial position.
(*2) Lease liabilities are included in the 'Other current liabilities' and 'Other non-current liabilities' in the consolidated statement of financial position.
(2) Changes in right-of-use assets for the years ended December 31, 2021 and 2020 are as follows:
Balance as of January 1, 2021
Reassessment
Translation difference
Balance as of December 31, 2021
21. Leases, Continued
(2) Changes in right-of-use assets for the years ended December 31, 2021 and 2020 are as follows, Continued:
(3) Details of amounts recognized in the consolidated statements of comprehensive income for the years ended December 31, 2021 and 2020 are as follows:
Interest expense relating to lease liabilities (included in finance cost) W 111,416 185,742
Expense relating to short-term leases 117,000 122,587
Expense relating to leases of low-value assets excluding short-term leases 20,547 8,765
(4) Details of amounts recognized in the consolidated statement of cash flows for the years ended December 31, 2021 and 2020 are as follows:
Total cash outflows of leases W 3,896,897 3,209,661
22. Financial Risk Management
The Group's operating activities expose itself to a variety of financial risks: market risk, credit risk and liquidity risk from which the Group's risk management program focuses on minimizing any adverse effects on its financial performance. The Group operates financial risk management policies and programs that closely monitor and respond to each risk factor.
(1) Capital Risk Management
The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern, so the Group can continue to provide returns and benefits for shareholders and to maintain an optimal capital structure to reduce the cost of capital. The Group monitors capital on the basis of the debt ratio. This ratio is calculated as total debt divided by total capital. The debt ratios as of December 31, 2021 and 2020 are as follows:
Total Equity 246,840,858 177,348,016
Debt ratio 33% 50%
(2) Market Risk
(a) Foreign exchange risk
The Group is exposed to foreign exchange risk arising from royalty revenues and commission payment primarily with respect to the US dollar and etc. The Group's financial assets and liabilities are exposed to foreign currency risk as of December 31, 2021 and 2020 are as follows:
(In thousands of won, in foreign currencies)
Assets in foreign
Liabilities in foreign currency
Assets in
Liabilities in Korean Won
22. Financial Risk Management, Continued
(2) Market Risk, Continued
(a) Foreign exchange risk, Continued
The Group measures foreign exchange risk at the exchange rate of 10% for each foreign currency, and the rate of change reflects the management's assessment of the risk of exchange rate fluctuation that can be reasonably experienced. The effects of changes in foreign currency exchange rate on profit before tax for the years ended of December 31, 2021 and 2020 are as follows:
Increased by 10%
Decreased by 10%
The sensitivity analysis is based on monetary assets and liabilities denominated in foreign currencies other than the functional currency at the end of the reporting period.
(b) Interest rate risk
There are no borrowings under variable interest rate conditions as of December 31, 2021 and 2020.
(c) Price risk
There are no assets and liabilities exposed to price risk as of December 31, 2021 and 2020.
(3) Credit Risk
Credit risk arises from normal trading and investing activities and occurs when a customer or a counterparty fails to comply with the terms of the contract. In order to manage these credit risks, the Group regularly evaluates the creditworthiness of customers based on their financial condition, past experiences and other factors.
The carrying amounts of financial assets represent their maximum exposure to credit risk. The maximum exposure to credit risk of the Group as of December 31, 2021 and 2020 are as follows:
Short-term financial instruments 148,000,000 71,000,000
Other current financial assets
Oher non-current financial assets 3,018,823 1,323,865
Cash and cash equivalents and short-term financial instruments are deposited in financial institutions with strong credit ratings. Accounts receivable are mainly due from payment processing companies and platform service providers, which the Group believes have low levels of credit risk.
(4) Liquidity Risk
Liquidity risk management includes the maintenance of sufficient cash and marketable securities, the availability of funds from appropriately committed credit lines, and the ability to settle market positions. The following table summarizes the financial liabilities of the Group by maturity according to the remaining period from the end of the reporting period to the contractual maturity date.
3 months to 1 year
Accrued expense


Minimally invasive video-assisted thyroid surgery: how can we improve the learning curve?
Objective. Minimally invasive video-assisted thyroidectomy (MIVAT) is a technically demanding procedure and requires a surgical team skilled in both endocrine and endoscopic surgery. A time consuming learning and training period is mandatory at the beginning of the experience. The aim of our report is to focus some aspects of the learning curve of the surgeon who practices video-assisted thyroid procedures for the first time, through the analysis of our preliminary series of 36 cases. Patients and methods. From September 2004 to April 2005 we selected 36 patients for minimally invasive video-assisted surgery of the thyroid. The patients were considered eligible if they presented with a nodule not exceeding 35mm in maximum diameter; total thyroid volume within normal range; absence of biochemical and echographic signs of thyroiditis. We analyzed surgical results, conversion rate, operating time, post-operative complications, hospital stay, cosmetic outcome of the series. Results. We performed 36 total thyroidectomy. The procedure was successfully carried out in 33/36 cases. Post-operative complications included 3 transient recurrent nerve palsies and 2 transient hypocalcemias; no definitive hypoparathyroidism was registered. All patients were discharged 2 days after operation. The cosmetic result was considered excellent by most patients. Conclusions. Advances in skills and technology have enabled surgeons to reproduce most open surgical techniques with video-assistance or laparoscopically. Training is essential to acquire any new surgical technique and it should be organized in detail to exploit it completely.


Thank you Piano Lady for this beautiful award!
Jesus in His Holy word tells us about knowledge and wisdom.
He instills in us what we are and what we must become.
Life holds dreams and visions of what our future might be.
Learning is important and knowledge is the key.
Many men have sailed the great oceans blue.
Others have studied just how to fashion the perfect shoe.
Life was given to us not only to learn but to use what we have learned.
Only then will we have the ability to soar above displaying goals we've earned.
The mind is a powerful thing God has given to us.
We only use a tiny piece of it and the rest just gathers dust.
Choose to make a difference in someone's life along your way.
God will make a difference in yours and with His love He will repay.
So use the talents He has given you and aim for the stars.
People with knowledge and wisdom seldom sit behind prisons bars.
Take the time to do it right!
Aim for heaven in your quest for the light.


text:
Home Archives US Forces Kill ISIS Leader
US Forces Kill ISIS Leader
In a stunning development after removing US troops from Syria and establishing a permanent cease-fire in the area, President Trump announced that ISIS leader Abu Bakr al-Baghdadi died in a US raid in Northwest Syria.
Compared to Obama's 9-minute announcement of Osama Bin Laden's death at the hands of US Special Forces, Trump spent 48 minutes recounting the raid in a detailed moment-by-moment press conference.
The Left immediately criticized Trump for describing Baghdadi, the leader of the murderous terrorist organization, as having "died like a dog, he died like a coward."
Are you surprised that Democrats and the Main Stream Media were more concerned about Trump's words instead of congratulating our armed forces on a job well done in taking out a wanted terrorist?
Take a moment and check out Trump's full description of the raid and Baghdadi's demise here. It's worth a read.
Outgoing DHS Chief "Disappointed" At House Democrat's Subpoena
Kevin McAleenan, the acting Homeland Security Chief who is stepping down at the end of the month, said he was "shocked" and "disappointed' to be subpoenaed by Democrats to appear before the House Homeland Security Committee a day before he leaves his post.
McAleenan, in a letter responding to committee chairman and Democrat Bennie Thompson, said he would not appear before the committee as he would be focusing on handing over the administrative reins to the incoming DHS leader.
McAleenan questioned the timing of the subpoena and also the legality of the short notice, as McAleenan is set to step down on October 31st.
As you know, this has become a typical tactic of the House Democrats. Here's hoping that McAleenan sticks to his plan and refuses to show up!
Take a minute to read McAleenan's response to the subpoena here.
Spin Control
Democrats Want to Raise Corporate Taxes…Again
The 2020 Democratic Presidential candidates are suggesting that the US corporate tax rate is too low, just two years after their party agreed with Republicans that the then 35% rate was too high.
In 2017, Republicans lowered the corporate tax rate from 35% to 21%. Though no Democrats voted Trump's tax package, many agreed with the president and Republicans that the 35% rate was too high.
Since lowering the rate, the American economy has been booming. Many experts cite the lower corporate rate as a contributing factor to the economic success of the Trump administration.
Now, in a bid to go as far to the Left as possible, many of the current Democratic candidates are claiming the rate should go back to 35%, all but guaranteeing an economic reversal.
For whatever reason, Democrats believe that increasing the tax burden on companies will help the average taxpayer. On the contrary, it stifles competition, harms medium to small-sized businesses, and passes on the cost of doing business to the consumer.
If you needed any more evidence that the Democrats do not have your best interests in mind, take a moment to read the full story here.
Everyday America
American Soldier Meets Young Pen-Pals After 13 Years
Army Brig. General Vincent Buggs cherished letters he received from a group of Georgia Kindergartners 13 years ago.
According to Buggs, the letters helped him get through some of the most stressful times of being deployed in Iraq.
13 years later, Buggs visited the now highschool seniors to thank them for their kindness.
According to Buggs, "everyone is always saying 'thank you' to me for my service, but it meant more for me to be able to say 'thank you' to them."
Take a minute and read the touching story here.
For all of your Local Conservative news, this has been
John W Denton.
John is a historical and political writer, author, and blogger who focuses on Conservative issues and policies.
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Spartan Newsroom (https://news.jrn.msu.edu/type/image/)
Phone scam warning from Ingham County Sheriff's Office
By Griffin Wasik | February 17, 2016
By Griffin Wasik
Ingham County Chronicle Staff Reporter
MASON — Ingham County Sheriff Gene L. Wriggelsworth is warning residents of a phone scam where two victims have lost a total of $800. Even though the number on your caller ID may be the same number as the sheriff's office, do not be fooled. The suspect uses a phone application where it disguises, or uses another phone number and identity, Wriggelsworth said. "It's typically a male subject who has a foreign accent and he identifies himself from the Ingham County Sheriff's Office," Lt. Dennis Hull, of the Ingham County Sheriff's Office, said. "He's using a spoof app.
Montgomery Drain complicates Red Cedar Renaissance project
Developers continue to plan Red Cedar Renaissance Project in old Red Cedar Golf Course, but facing setbacks with Montgomery Drain
Lansing City Council members struggle to deal with snow cleanup as temperatures plunge
By Spartan Newsroom | March 19, 2014
During the public comment session, some citizens expressed frustration with maneuvering around the areas in Lansing where the snow seems to pile up around the most. "It's definitely been annoying how much snow has buildup," Shay Cameron, a Lansing resident said. "But I understand how hard it may be to clean it all up."
Cameron, who has two young children at home, considers it very difficult to drop her kids off at school in the morning. "It's especially hard when you have elementary-aged students," Cameron said. "Sometimes I can't even see over large piles of snow when I drive, and I fear for the safety of my kids when they walk on icy sidewalks."
In some areas, the snow is so high it obstructs the vision of drivers and pedestrians alike.


Athens, a city long known for its history of philosophy, art, and literature, is now gearing up to host its first Culture Night. The free, after-dark series of cultural events and activities produced by Athens Culture Net, will take place throughout the City this Friday, October 5.
This celebration highlights the relationship between art and narration in partnership with the 2018 Athens World Book Capital. Events are planned at dozens of cultural institutions and more than 26 galleries across Athens with exhibitions, live music, theatrical performances, poetry readings, mystery games, cultural treasure hunts and movie screenings. For a full listing of all of the events, activities, and participating cultural institutions, visit this link.
· Documenta 14: ACN supported the coordination of the documenta14 art fair, which hosted art exhibitions and installations in 40 sites across Athens including major squares like Syntagma, Kontzia and Victoria. This was the first time that Kassel, Germany co-hosted the fair with another city.
· Athens World Book Capital: A year-long celebration of literature with events happening across the city aimed at fostering a culture of reading in Athens.
· Cultural programming at the Theotokopoulou Building: ACN undertook the planning and coordination for programming at this historic building, transforming it into an education, innovation, and cultural facility for Athens. Theotokopoulou has already hosted a number of creative groups and workshops in its first few months of operation.
· Open Schools Programming: Through ACN, the National Theatre, Museum of Cycladic Art, and the Music Library of Greece provided free workshops for students of all ages as part of the Athens Partnership Open Schools program. Open Schools is a municipal program offering free recreational and educational activities at 25 public schools during evenings and weekends.
· ACN Social: More than 100 attendees from 50 different cultural groups participated in an event to enhance social media skills and communication strategies at cultural organizations. This is the first in a series of workshops that ACN is producing.