Exhibit 15.1 GLAAM CO., LTD AND
SUBSIDIARIES   CONSOLIDATED FINANCIAL STATEMENTS June 30, 2023 and December 31, 2022




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GLAAM Co., Ltd and Subsidiaries Consolidated Financial Statements June 30, 2023 and December 31, 2022  CONTENTS

Page No.REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


3FINANCIAL STATEMENTSConsolidated Statements of Financial Position


4Consolidated Statements of Profit and Loss and Comprehensive Income (Loss)


6Consolidated Statements of Changes in Equity


7Consolidated Statements of Cash Flows


9Notes to Consolidated Financial Statements


10  LOGO

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own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM
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LOGO

OFFICES IN: 
LOS ANGELES, CA SAN
DIEGO, CA SAN FRANCISCO, CA
IRVINE, CA MONTGOMERY,
AL AUBURN, AL FORT
LEE, NJ ATLANTA, GA Report of Independent Registered Public Accounting Firm Board of Directors GLAAM Co., Ltd and Subsidiaries Pyeong-taek, Gyounggi, Republic of Korea Results of Review
of Interim Financial Information We have reviewed the accompanying consolidated Statements of financial position of GLAAM Co., and Subsidiaries (the
Company) as of June 30, 2023, and the related consolidated statements of profit and loss and comprehensive income (loss), changes in equity, and cash flows, for the six-month period then
ended June 30, 2023 and 2022, and the related notes (collectively referred to as the interim financial information). Based on our reviews, we are
not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards
Board (IASB). Basis for Review Results This interim
financial information is the responsibility of the Companys management. We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB). A review of interim
financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards
of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.  LOGO

RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their
own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM
International resources through RSM US LLP but are not member firms of RSM US LLP. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. The RSM
logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.




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GLAAM Co., Ltd and Subsidiaries Consolidated Statements of Financial Position As of June 30, 2023 and December 31, 2022    (Unit: USD)Accounts

Notes


As of June 30, 2023(Unaudited)


As of December 31, 2022AssetsI. Current Assets










18,836,252







9,166,574Cash and cash equivalents


5, 6



73,625







196,627Trade receivables, net


6, 7



8,834,914







697,999Other current financial assets


8



854,305







1,035,930Prepayments and other short-term assets


9



2,679,040







1,520,917Inventories, net


10



6,394,329







5,714,352Prepaid income tax






39







749II. Non-current Assets










26,749,829







27,457,524Long-term trade receivables


7



1,763,457







Non-current financial assets


6, 11



103,435







107,890Investments accounted for using the equity method


12



2,527,774







2,777,515Property, plant and equipment, net


13,16



10,499,881







11,055,170Intangible assets, net


14



5,063,137







6,039,521Deposits


6, 15



3,975,373







4,515,581Deferred income tax assets


28



2,816,772







2,961,847Total Assets










45,586,081







36,624,098LiabilitiesI. Current Liabilities










32,457,472







27,698,141Trade payables


6



6,937,392







7,184,181Other payables


18



7,816,560







5,690,765Current portion of lease liabilities


6,16



99,248







108,488Other current liabilities


18



916,966







799,571Short-term borrowings


6, 21



13,537,122







11,863,506Convertible bond


6,21



1,868,507







Product warranty provision


20



34,942







36,099Current portion of long-term liabilities


6, 21



1,234,765







2,001,142Current tax liabilities






11,970







14,389II. Non-current Liabilities










6,100,836







6,209,572Other non-current payables


19



4,165







31,826Pension and other employee obligations


22



1,344,898







1,341,858Long-term borrowings


6, 21



4,728,047







4,741,358Non-current lease liabilities


6,16



23,726







24,694Other non-current liabilities


6, 19











69,836Total Liabilities










38,558,308







33,907,713  4




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GLAAM Co., Ltd and Subsidiaries Consolidated Statements of Financial Position As of June 30, 2023 and December 31, 2022    (Unit: USD)Accounts

Notes


As of June 30, 2023(Unaudited)


As of December 31, 2022EquityI. Share capital










8,736,267







8,326,057Share capital


23



8,736,267







8,326,057II. Additional paid-in and other capital










57,070,548







53,382,904Additional paid-in and other capital


23



57,070,548







53,382,904III. Other components of equity










1,750,242







1,482,658Changes in equity from equity method


24



2,754,052







2,897,852(negative) Changes in equity from equity method


24



(3,251,395
)






(3,251,395
)Stock options


24



2,709,081







2,297,697Loss on sale of treasury stock


24



(410,453
)






(410,453
)Other capital surplus


24



(51,043
)






(51,043
)IV. Accumulated other comprehensive income










1,471,596







1,933,924Foreign currency translation differences for foreign operations


24



1,471,596







1,933,924V. Retained earnings (deficit)










(61,429,967
)






(62,348,576
)Unappropriated retained earnings (deficit)






(61,429,967
)






(62,348,576
)VI. Non-controlling interest










(570,913
)






(60,582
)Non-controlling interest






(570,913
)






(60,582
)Total equity










7,027,773







2,716,385Total liabilities and equity










45,586,081







36,624,098  5




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GLAAM Co., Ltd and Subsidiaries Consolidated Statements of Profit and Loss and Comprehensive Income (Loss)(Unaudited) Six Months Ended June 30, 2023 and 2022    (Unit: USD)Accounts

Notes


For the six monthsended June 30,2023


For the six monthsended June 30,2022Revenue






12,562,180



13,406,333Cost of sales






6,327,732



6,878,593Gross Profit






6,234,448



6,527,740Selling and administrative expenses


25



4,981,094



4,250,957Operating profit






1,253,354



2,276,783Finance income


26



193,076



432,315Finance costs


26



885,210



229,374Other income


27



18,851



147,464Other expenses


27



107,739



847,413Profit before tax






472,332



1,779,775Corporate income tax expense (benefit)


28



20,081



(254,522
)Net profit for the period






452,251



2,034,297Owners of the parent






920,543



2,091,513Non-controlling interests






(468,292
)


(57,216
)Other comprehensive income






(462,328
)


(34,802
)Item that may be subsequently reclassified to profit or loss






(462,328
)


(34,802
)Exchange difference on translating foreign operations






(462,328
)


(34,802
)Total comprehensive (loss) income






(10,077
)


1,999,495Owners of the parent






458,215



2,056,711Non-controlling interests






(468,292
)


(57,216
)Earnings per shareBasic Earnings Per Share (Unit: USD)


32



0.02



0.12  6




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GLAAM Co., Ltd and Subsidiaries Consolidated Statements of Changes in Equity (Unaudited) Six Months Ended June 30, 2023 and 2022    (Unit: USD)Attributable to owners of the Controlling Company


Non-controllinginterests


TotalequitySharecapital


Additionalpaid-incapital


Othercomponentof equity


Accumulatedothercomprehensiveincome


Retainedearnings(deficits)


Totalattributableto ownersof parentBalances as of January 1, 2023


8,326,057



53,382,904



1,482,658



1,933,924



(62,348,576
)


2,776,967



(60,582
)


2,716,385Net income (loss)


















920,543



920,543



(468,292
)


452,251Issuance of share capital on private placement


81,056



729,501















810,557







810,557Issuance of shares for payment of debt


329,154



2,958,143















3,287,297







3,287,297Changes in equity from equity method investments










(143,800
)










(143,800
)






(143,800
)Stock options










411,384











411,384







411,384Actuarial gain due to changes in financial assumptions


















(1,934
)


(1,934
)






(1,934
)Exchange difference on translating foreign operations














(462,328
)






(462,328
)


(42,039
)


(504,367
)Balances as of June 30, 2023


8,736,267



57,070,548



1,750,242



1,471,596



(61,429,967
)


7,598,686



(570,913
)


7,027,773  7




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GLAAM Co., Ltd and Subsidiaries Consolidated Statements of Changes in Equity (Unaudited) Six Months Ended June 30, 2023 and 2022    (Unit: USD)Attributable to owners of the Controlling Company


Non-controllinginterests


TotalequitySharecapital


Additionalpaid-incapital


Othercomponentof equity


Accumulatedothercomprehensiveincome


Retainedearnings(deficits)


Totalattributableto owners ofparentBalances as of January 1, 2022


6,207,730



34,317,961



2,395,732



1,304,641



(56,494,217
)


(12,268,153
)


3,610



(12,264,543
)Net income (loss)


















2,091,513



2,091,513



(57,216
)


2,034,297Issuance of share capital on private placement


100,355



903,199















1,003,554







1,003,554Issuance of shares for payment of debt


763,918



6,857,580















7,621,498







7,621,498Changes in equity from equity method investments










(1,107,287
)










(1,107,287
)






(1,107,287
)Conversion of convertible Bonds


611,797



5,506,166















6,117,963







6,117,963Stock options










312,052











312,052







312,052Acquisition of treasury stock










(228,530
)










(228,530
)






(228,530
)Exchange difference on translating foreign operations














(34,802
)






(34,802
)


(27,144
)


(61,946
)Others


















400,329



400,329







400,329Balances as of June 30, 2022


7,683,800



47,584,906



1,371,967



1,269,839



(54,002,375
)


3,908,137



(80,750
)


3,827,387  8




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GLAAM Co., Ltd and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2023 and 2022    (Unit : USD)Accounts

Note


For the six months endedJune 30, 2023


For the six months endedJune 30, 2022I. Cash flows from operating activities


31







(6,350,979
)






1,715,6761. Cash generated from (used in) operating activities


31



(5,584,883
)






1,923,7152. Interest received






186







943. Interest paid






(765,118
)






(462,655
)4. Income taxes benefit






(1,164
)






254,522II. Cash flows from investing activities










(424,183
)






(1,751,064
)1. Proceeds from investing activities






1,542,711







34,257a. Proceeds from short term loans






1,159,356







18,777b. Decrease in deposits






383,355







15,4802. Cash outflows from investing activities






(1,966,894
)






(1,785,321
)a. Increase in short-term loan






(1,782,646
)






(361,620
)b. Acquisition of investments in affiliates














(1,423,701
)c. Acquisition of property plant and equipment






(161,774
)






d. Increase in deposit






(22,474
)






III. Cash flows from financing activities










6,701,451







5,9781. Proceeds from financing activities






17,895,865







7,235,019a. Proceeds from short-term borrowings






15,032,478







6,015,395b. Proceeds from long-term borrowings






185,372







216,070c. Proceeds from issuance of stocks






810,557







1,003,554d. Proceeds from issuance of CB






1,867,458







2. Cash outflows from financing activities






(11,194,414
)






(7,229,041
)a. Repayments of short-term borrowings






(10,315,394
)






(6,570,442
)b. Decrease in deposits for rent














(81,072
)c. Repayments of liquid long-term borrowings






(694,511
)






d. Repayments of lease






(116,502
)






(215,369
)e. Increase in other deposits






(68,007
)






(133,628
)f. Acquisition of treasury stock














(228,530
)IV. Effects of changes in foreign exchange rates










(49,291
)






(39,207
)V. Decrease in cash and cash equivalents (I+II+III+IV)










(123,002
)






(68,617
)VI. Beginning balance of cash and cash equivalent










196,627







239,342VII. Ending balance of cash and cash equivalent










73,625







170,725  9




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GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    1.
Nature of operations The principal activities of GLAAM Co, Ltd (GLAAM) and subsidiaries (the Company) include manufacturing, installing, and selling LED display G-Glass. G-Glass is an integrated ICT product that has the basic characteristics of transparent glass but can display media images at the same time. It implements media images
through the glass surface while preserving the features of a clear and transparent glass. G-Glass is the worlds first IT building material that can be applied to various places where glass is used.  2.
General information, statement of compliance with IFRS and going concern assumption GLAAM, the Companys ultimate parent company, is a corporation incorporated and domiciled in the Republic
of Korea. Its registered office and factory are located at 298-42 Chung-buk Chungang-ro
Chung-buk, Pyeong-taek, Gyounggi, Republic of Korea. The consolidated financial statements of the
Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). They have been prepared under the assumption the Company operates on a going concern
basis. Consolidated subsidiaries as of June 30, 2023  Name of the subsidiary

Major business activities

ShareholdingratioG-Frame Co., Ltd.
(G-Frame)

Manufacture G-Glass related products


100.00
%G-SMATT Europe Media Limited and its subsidiary (G-SMATT Europe) (*)

Distribute G-Glass


76.55
%G-SMATT Tech

Distribute G-Glass


100.00
%G-SMATT America (**)

Distribute G-Glass


54.63
%  (*)
On November 30, 2022, G-SMATT Europe acquired 100% ownership of
Inflectix Limited (Inflectix) as a wholly owned subsidiary for USD 301,654. Inflectix was incorporated on July 11, 2018, by Orhan Ertughrul, G-SMATT Europes chief executive officer. It
is located in Gloucestershire, United Kingdom and provides high level technical expertise service in biotechnology investment consulting field. (**)
In 2022, certain minority shareholders of G-SMATT America Co., Ltd (an
equity method associate located in CA, USA) sold all their shares, a total of 1,470,116 shares, to the Company. As a result, the Companys ownership in G-SMATT America Co., Ltd. increased by 12.00% from
42.63% to 54.63% and became the major shareholder. G-SMATT America Co., Ltd. is subject to consolidation from the date of the majority ownership change in July 1, 2022. The consolidated financial statements were authorized for issuance by the Companys management on September xx, 2023. Information of subsidiaries as of and for the six months ended June 30, 2023 (before elimination of intercompany transactions):  (Unit: USD)Name of the
subsidiary

Assets


Liabilities


Sales


Net income(loss)


Comprehensiveincome (loss)G-Frame


5,781,882



7,093,201



571,632



(390,109
)


(390,109
)G-SMATT Europe


1,676,293



6,592,241



72,701



(465,040
)


(653,707
)G-SMATT Tech


90,054



6,115,732



793



(128,028
)


(111,189
)G-SMATT America


2,747,598



3,127,976



365,117



(791,754
)


(788,365
)  10




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GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Consolidated Subsidiaries as of December 31, 2022  Name of the subsidiary

Major business activities

ShareholdingratioG-Frame Co., Ltd.
(G-Frame)

Manufacture G-Glass related products


100.00
%G-SMATT Europe Media Limited and its subsidiary (G-SMATT Europe) (*)

Distribute G-Glass


76.55
%G-SMATT Tech

Distribute G-Glass


100.00
%G-SMATT America (**)

Distribute G-Glass


54.63
% Information of subsidiaries as of December 31, 2022 and for the six months ended June 30, 2022
(before elimination of intercompany transactions):  (Unit: USD)As of December 31,2022


For the six months ended June 30, 2022Name of the subsidiary

Assets


Liabilities


Sales


Netincome(loss)


Comprehensiveincome (loss)G-Frame


7,558,305



6,826,664



1,356,476



(298,198
)


(298,198
)G-SMATT Europe


1,451,597



5,908,020



79,324



(468,677
)


(608,448
)G-SMATT Tech


74,730



6,245,793







(123,972
)


(40,280
)G-SMATT America(*)


3,413,876



3,001,074











 (*) In 2022, certain minority shareholders of G-SMATT America Co., Ltd
(an equity method associate located in CA, USA) sold all their shares, a total of 1,470,116 shares, to the Company. As a result, the Companys ownership in G-SMATT America Co., Ltd. increased by 12.00%
from 42.63% to 54.63% and became the major shareholder. G-SMATT America Co., Ltd. is subject to consolidation from the date of the majority ownership change in July 1, 2022. Going Concern The
Company has an outstanding deficit of USD 61,429,967 and USD 62,348,576 as of June 30, 2023 and at the end of 2022, respectively, and the current liabilities also exceed current assets by USD 13,621,220 and USD 18,531,567 as of June 30
2023 and at the end of 2022, respectively. Despite the accumulated losses, the Company has established the following mitigation plans to
achieve stable operating profit and continue as a going concern.  Classification

Mitigation planImprovement in business

Achieve positive operating profit by increasing sales and reducing operating expenses. Pro-active sales plans for 2023 are in place and contract with new customers is being prepared as of the
reporting date.Subsequent debt to equity conversion (*)

Mitigate capital impairment by the debt-to-equity conversion.Merger with Jaguar

On March 2, 2023, the Company and Jaguar Global Growth Corporation I (JGGC) have entered into a definitive business combination agreement that would result in the Company becoming a publicly traded company. On
May 5, it was announced that a registration statement on Form F-4 had been publicly filed with the US Securities and Exchange Commission. The closing of the business combination between the Company and
JGGC is scheduled to be completed on September 29, 2023.  11




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GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (*) Subsequent to June 30, 2023, the Company initiated two equity conversion agreements
on August 1, 2023. Under these agreements, the Company committed to converting a total of KRW 3,290,288,000 of outstanding debt and trade payables into the Companys Common Shares (the Debt to Equity Conversion). Following the
conversion, the number of the Companys Common Shares increased by 357,640 shares. The Companys consolidated financial
statements were prepared on the assumption that the Company will continue as a going concern and are accounted for under the assumption that the Companys assets and liabilities could be recovered or repaid through normal business activities. In a situation where the validity of the going concern assumption, which is the premise of preparing the Companys financial
statements, is questioned, there may be certain uncertainty relating to the feasibility of financing plans for debt repayment, new business, and financial improvement plans. However, considering the above managements mitigation plans, the
Company has strong feasibility to continue as a going concern and achieve positive operating profits in the near future.  3.
Basis of Presenting Financial Statements Basis of Measurement The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the
consolidated statement of financial position:  

Certain financial assets and liabilities  measured at fair value Functional and Reporting Currency Functional and reporting currency Each subsidiarys financial statements of the Company are reported in the subsidiarys functional currency, which is the currency of
the primary economic environment in which each subsidiary operates. The consolidated financial statements are presented in US dollar, which is the Companys reporting currency, whilst the functional currency is in Korean won. 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 period end exchange rates are generally recognized in profit or loss. They
are deferred in other comprehensive income if they relate to qualifying cash flows hedges and qualifying effective portion of net investment hedges or are attributable to monetary part of the net investment in a foreign operation. Foreign exchange
gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance costs.  12




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GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Non-monetary items that are measured at fair value in
a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example,
translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation
differences on non-monetary assets such as equities classified as available-for-sale financial assets are recognized in other
comprehensive income. Fair Value Hierarchy To provide an indication about the reliability of the inputs used in determining fair value, the Company classifies its financial instruments
into the three levels prescribed under the accounting standards. Financial instruments that are measured at fair value are categorized by the fair value hierarchy, and the defined levels are as follows: Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting
period. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in level 1. Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.  4.
Summary of Significant Accounting Policies The significant accounting policies followed by the Company in the preparation of its consolidated financial statements are as follows: Significant Accounting Estimates and Assumptions The preparation of financial statements in conformity with IFRS requires management to make significant estimates and assumptions that affect
the assets, liabilities, revenues and expenses, and other related amounts during the periods covered by the financial statements. Management routinely makes judgments and estimates about the effect of matters that are inherently uncertain. As the
number of variables and assumptions affecting the future resolution of the uncertainties increases, these judgments become more subjective and complex. The Company has identified the following accounting policies as the most important to the
presentation and disclosure of the financial condition and results of operations. Subsidiaries The Company has prepared the consolidated financial statements in accordance with IFRS 10 Consolidated Financial Statements. Subsidiaries Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company 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 fully consolidated from the date on which control is transferred to the
Company. They are deconsolidated from the date that control ceases.  13




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GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    The acquisition method of accounting is used to account for business combinations by the
Company. 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 Company 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. All other non-controlling interests are measured at fair values, unless otherwise required by other standards. 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 recoded 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 intercompany transactions are eliminated. Unrealized losses are also eliminated
unless the transaction provides evidence of an impairment of the transferred asset. The accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Company. Changes in ownership interests in subsidiaries without change of control Any differences between the amount of the adjustment to non-controlling interest that do not result in
a loss of control and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Controlling Company. Disposal of subsidiaries When the Company ceases to consolidate for a subsidiary because of a loss of control, any retained interest in the subsidiary is remeasured to
its fair value with the change in carrying amount recognized in profit or loss. Associates Associates are entities over which the Company has significant influence but does not possess control or joint control. Investments in
associates are accounted for using the equity method of accounting, after initially being recognized at cost. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Companys interest in the
associates. If the Companys share of losses of an associate equal or exceeds its interest in the associate (including long-term interests that, in substance, form part of the Companys net investment in the associate), the Company
discontinues recognizing its share of further losses. After the Companys interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive
obligations or made payments on behalf of the associate. If there is objective evidence of impairment for the investment in the associate, the Company recognizes the difference between the recoverable amount of the associate and its book amount as
impairment loss. If an associate uses accounting policies other than those of the Company for transactions and events in similar circumstances, if necessary, adjustments shall be made to make the associates accounting policies conform to those
of the Company when the associates financial statements are used by the Company in applying the equity method.  14




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Cash and cash equivalents Cash and cash equivalents include all cash balances and short-term highly liquid investments with an original maturity of three months or less
that are readily convertible into known amounts of cash. Non-derivative financial assets Recognition and initial measurement Trade receivables and debt instruments issued are initially recognized when they are originated. All other financial assets are recognized in
statement of financial position when, and only when, the Company becomes a party to the contractual provisions of the instrument. A
financial asset (unless it is a trade receivable without a significant financing component) is initially measured at fair value plus, for an item not at Fair Value Through Profit or Loss (FVTPL), transaction costs that are directly attributable to
its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. Classification and subsequent measurement On initial recognition, a financial asset is classified as measured at: amortized cost; Fair Value through Other Comprehensive Income (FVOCI)
 debt investment; FVOCI  equity investments; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected
financial assets are reclassified on the first day of the subsequent reporting period following the change in the business model. A
financial asset is measured as at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:  

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and  

Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following
conditions and is not designated as at FVTPL:  

it is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets; and  

the contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for
trading, the Company may irrevocably elect to present subsequent changes in the investments fair value in OCI. This election is made on an investment-by-investment
basis. All financial assets not classified as measured at amortized cost or FVOCI as described above are measured as at FVTPL. This
includes all derivative financial assets. At initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.  15




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Derecognition The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, it transfers the rights to
receive the contractual cash flows of the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or it transfers or does not retain substantially all the risks and
rewards of ownership of a transferred asset, and does not retain control of the transferred asset. If the Company has retained
substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognize the transferred asset. Offset Financial
assets and liabilities are offset, and the net amount is presented in the consolidated statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle them on a net basis or to
realize the asset and settle the liability simultaneously. Trade Receivables Trade receivables are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing
components when they are recognized at fair value. Trade receivables are subsequently measured at amortized cost using the effective interest method, less loss allowance. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the moving average method, except for
inventories in-transit. Property, Plant and Equipment Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes an
expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any costs directly attributable to bringing the assets to a working condition for their
intended use, the costs of dismantling and removing the items and restoring the site on which they are located and borrowing costs on qualifying assets. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net
disposal proceeds, if any, and the carrying amount of the item, and recognized in other income or other expenses. Subsequent
costs Subsequent expenditure on an item of property, plant and equipment is recognized as part of its cost only if it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The costs of the day-to-day servicing
of property, plant and equipment are recognized in profit or loss as incurred. Depreciation Land is not depreciated, and depreciation of other items of property, plant and equipment is recognized in profit or loss on a straight-line
basis, reflecting the pattern in which the assets future economic benefits are expected to be consumed by the Company. The residual value of property, plant and equipment is zero.  16




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Estimated useful lives of the assets are as follows:  Items

Estimated useful lives (years)Buildings and structures


40Machinery


10Others


5 Depreciation methods, useful lives and residual values are reviewed at each financial period-end and adjusted if appropriate and any changes are accounted for as changes in accounting estimates. Intangible Assets Intangible assets are initially measured at cost. Subsequently, intangible assets are measured at cost less accumulated amortization and
accumulated impairment losses. Intangible assets are amortized in a straight-line method for five years with the residual value of zero from the time they are available. Subsequent costs Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific intangible asset to which
they relate. All other expenditures, including expenditures on internally generated brands, are recognized in profit or loss as incurred. Impairment for Non-financial assets The carrying amounts of the Companys non-financial assets, other than assets arising from
employee benefits, inventories, and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. For
intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, the recoverable amount is estimated each year. An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognized
in profit or loss. In respect of assets other than goodwill, impairment losses recognized in prior periods are assessed at each reporting
date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
assets carrying amount does not exceed the carrying amount that would have been determined, net of accumulated depreciation or amortization, if no impairment loss had been recognized from the acquisition cost. An impairment loss in respect of
goodwill is not reversed. Deferred Income Tax The Companys taxable income generated from these operations are subject to income taxes based on tax laws and interpretations of tax
authorities in numerous jurisdictions. There are many transactions and calculations for which the ultimate tax determination is uncertain. If certain portion of the taxable income is not used for investments or increase in wages or dividends in accordance with the Tax System for
Recirculation of Corporate Income, the Company is liable to pay additional income tax calculated based on the tax laws. Accordingly, the measurement of current and deferred income tax is affected by the tax effects from the new tax system. As the
Companys income tax is dependent on the investments, as well as wage and dividends increase, there is an uncertainty measuring the final tax effects.  17




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Fair Value of Financial Instruments The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Company uses
its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. Impairment of Financial Assets The provision for impairment for financial assets is based on assumptions about risk of default and expected loss rates. The Company uses
judgement in making these assumptions and selecting the inputs to the impairment calculation based on the Companys past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Net Defined Benefit Liability The present value of net defined benefit liability depends on several factors that are determined on an actuarial basis using a number of
assumptions including the discount rate. Non-derivative financial liabilities The Company classifies financial liabilities as financial liabilities at profit or loss and other financial liabilities according to the
substance of the contract and the definition of financial liabilities and recognizes them in its statement of financial position when it becomes a party to the contract. Financial liabilities at profit or loss Financial liability at profit or loss includes a short-term trading financial liability or a financial liability designated as financial
liability at profit or loss at initial recognition. A financial liability at profit or loss is measured at fair value after initial recognition and changes in fair value are recognized in profit or loss. On the other hand, transaction costs incurred
in connection with the issuance at initial recognition are recognized in profit or loss immediately upon occurrence. Other
financial liabilities Non-derivative financial liabilities that are not classified as
financial liabilities at profit or loss are classified as other financial liabilities. Other financial liabilities are measured at fair value minus transaction costs directly related to issuance at initial recognition. Subsequently, other financial
liabilities are measured at amortized cost using the effective interest method and interest expenses are recognized using the effective interest method. Financial liabilities are removed from the statement of financial position only when they are extinguished, i.e., contractual obligations are
fulfilled, cancelled, or expired. Trade and other Payables These amounts represent liabilities for goods and services provided to the Company prior to the end of reporting period which are unpaid. Trade
and other payables are presented as current liabilities, unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective
interest method.  18




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Employee benefits Short-term employee benefits Short-term employee benefits that are due to be settled within twelve months after the end of the period in which the employees render the
related service are recognized in profit or loss on an undiscounted basis. Defined contribution plan A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will
have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the period during which services are rendered by
employees. Defined benefit plan A defined benefit plan is a post-employment benefit plan other than defined contribution plans. The Companys net obligation in respect of
its defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair value of
any plan assets is deducted. The calculation is performed annually by an independent actuary using the projected unit credit method. The
discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Companys obligations and that are denominated in the same currency in which the benefits are expected to
be paid. The Company recognizes all actuarial gains and losses arising from defined benefit plans in retained earnings immediately. The
Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), considering any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Consequently, the net interest on
the net defined benefit liability (asset) now comprises interest cost on the defined benefit obligation, interest income on plan assets, and interest on the effect on the asset ceiling. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain
or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs. Termination benefits The Company recognizes expense for termination benefits at the earlier of the date when the entity can no longer withdraw the offer of those
benefits and when the entity recognizes costs for a restructuring involving the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, the
Company measures the termination benefit with the present value of future cash payments. Share-based payments Equity-settled share-based payment is recognized at fair value of equity instruments granted, and employee benefit expense is recognized over
the vesting period. At the end of each period, the Company revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognizes the
impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.  19




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Provisions Provisions for product warranties, litigations and claims, and others are recognized when the Company presently hold legal or constructive
obligation as a result of past events, and when 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, and the increase in the provision due to the passage of time is recognized as interest expense. Leases The
Company leases various repeater server racks, offices, communication line facilities, machinery, and cars. Contracts may contain both lease and non-lease components. The Company allocates the consideration in
the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the Company is lessee, the Company applies the practical expedient
which has elected not to separate lease and non-lease components and instead accounts them as a single lease component. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of
the following lease payments:  

Fixed payments (including in-substance fixed payments), less any lease
incentives receivable  

Variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the
commencement date  

Amounts expected to be payable by the Company (the lessee) under residual value guarantees  

The exercise price of a purchase option if the Company (the lessee) is reasonably certain to exercise that
option, and  

Payments of penalties for terminating the lease, if the lease term reflects the Company (the lessee) exercising
that option Measurement of lease liability also includes payments to be made in optional periods if the lessee is
reasonably certain to exercise an option to extend the lease. The Company determines the lease term as the
non-cancellable period of a lease, together with both (a) periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and (b) periods covered by an
option to terminate the lease if the lessee is reasonably certain not to exercise that option. When the lessee and the lessor each has the right to terminate the lease without permission from the other party, the Company should consider a
termination penalty in determining the period for which the contract is enforceable. The lease payments are discounted using the interest
rate implicit in the lease. If that rate cannot be determined, the lessees incremental borrowing rate is used, which is the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar
economic environment with similar terms and conditions. The Company is exposed to potential future increases in variable lease payments
based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.  20




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Each lease payment is allocated between the liability and finance cost. The finance cost is
charged to profit or loss over the lease period in order to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the
following:  

amount of the initial measurement of lease liability  

any lease payments made at or before the commencement date less any lease incentives received  

any initial direct costs (leasehold deposits)  

restoration costs The right-of-use asset is depreciated over the shorter of the
assets useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying assets useful life. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less, such as mechanical devices and cars. Low-value assets are comprised of tools, equipment, and others. Paid-in Capital Common shares are classified as capital, and incremental costs incurred directly related to capital transactions are deducted from capital as a
net amount reflecting tax effects. If the Company reacquires its own equity instruments, these equity instruments are deducted directly from equity as subjects of equity. Profit or loss in the case of purchasing, selling, issuing, or incinerating a
self-interest product is not recognized in profit or loss. Revenue from contracts with customers The Company generates revenue primarily from sale and installation of LED display glasses. Product revenue is recognized when a customer
obtains control over the Companys products, which typically occurs upon delivery or completion of installation depending on the terms of the contracts with the customer. Finance Income Finance income comprises interest income on funds invested (including debt instruments measured at FVOCI), gains on disposal of debt
instruments measured at FVOCI, and changes in fair value of financial assets at FVTPL. Interest income is recognized as it accrues in profit or loss, using the effective interest method. Income Tax Income
tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax Current tax comprises the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or
substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects
uncertainty related to income taxes, if any.  21




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    The taxable profit is different from the accounting profit for the period since the taxable
profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable or
non-deductible items from the accounting profit. Deferred tax Deferred tax is recognized, using the asset and liability method, in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary
differences, unused tax losses and unrecognized tax credit carryforwards can be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is
settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. The Company recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates,
and interests in joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. A
deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that the differences relating to investments in subsidiaries, associates and joint ventures will reverse in the foreseeable future and
taxable profit will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Company
offsets deferred tax assets and deferred tax liabilities if, and only if the Company has a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities
simultaneously. Earnings (Loss) Per Share GLAAM, the Controlling Company presents basic and diluted earnings (loss) per share (EPS) data for its common stocks. Basic EPS is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Controlling Company by the weighted average number of common stocks outstanding during the period. Dividend Dividend
distribution to the Companys shareholders is recognized as a liability in the financial statements in the period in which the dividends are approved by the Companys shareholders.  22




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Information by revenue categories Revenue: The Company consists of a single operating segment.  Classification

For the six monthsended June 30, 2023


For the six monthsended June 30, 2022Product


11,239,035



12,213,452Service (*)


1,323,145



1,192,881Total


12,562,180



13,406,333  (*)
On March 27, 2023, GLAAM and GLAAM Malaysia Sdn. Bhd made an exclusive distribution and license agreement.
Per the agreement, in consideration for the exclusive territorial distribution rights and license granted to, GLAAM Malaysia Sdn. Bhd paid a royalty payment of total USD 760,000. Information about key customers Two key customers, Inspire Casino Resort and GLAAM Malaysia, during the six months ended June 30, 2023, account for more than 50% of the
Companys sales. Critical Accounting Estimates and Assumptions The Company makes estimates and assumptions concerning the future. The estimates and assumptions are continuously evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under the current circumstances. Actual results may differ from these estimates.  5.
Cash and cash equivalents Cash and cash equivalents as of June 30, 2023 and December 31, 2022, are as follows:  (Unit: USD)Cash and cash equivalent breakdown

As of June 30,2023


As of December 31,2022Cash in bank


73,625



196,627 There are no restricted financial instruments as of June 30, 2023 and December 31, 2022.  6.
Financial Instruments by categories Financial Instruments as of June 30, 2023, by categories are as follows:  (Unit: USD)Assets in Financial Position

As of June 30, 2023Financialassets atamortizedcost


Financialassets atfair valuethroughprofitor loss


Financialassets at fairvalue throughothercomprehensiveincome


TotalCash and cash equivalents


73,625











73,625Trade receivables


8,834,914











8,834,914Long-term trade receivables


1,763,457











1,763,457Non-current financial assets






103,435







103,435Lease deposits


176,847











176,847Other deposits


3,798,526











3,798,526Total


14,647,369



103,435







14,750,804  23




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (Unit: USD)Liabilities in Financial Position

As of June 30, 2023Financialliabilitiesatamortizedcost


Financialassets atfair valuethroughprofitor loss


Others


TotalTrade payables


6,937,392











6,937,392Short-term borrowings


13,537,122











13,537,122Convertible bond (*)


1,868,507











1,868,507Current portion of long-term liabilities


1,234,765











1,234,765Current portion of lease liabilities


99,248











99,248Long-term borrowings


4,728,047











4,728,047Long-term lease liabilities


23,726











23,726Total


28,428,807











28,428,807  (*)
On March 23, 2023, the Company issued a convertible bond (CB) to Charm Savings Bank in an
aggregate principal amount of KRW 2,500,000,000. The CB accrues interest at an annual rate of 10% and is set to mature on March 23, 2024. Financial Instruments as of December 31, 2022, by categories are as follows:  (Unit: USD)Assets in Financial Position

As of December 31, 2022Financialassets atamortizedcost


Financialassets atfair valuethroughprofitor loss


Financialassets at fairvalue throughothercomprehensiveincome


TotalCash and cash equivalents


196,627











196,627Trade receivables


697,999











697,999Non-current financial assets






107,890







107,890Security deposits


207,825











207,825Other deposits


4,307,756











4,307,756Total


5,410,207



107,890







5,518,097  24




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GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (Unit: USD)Liabilities in Financial Position

As of December 31, 2022Financialliabilities atamortizedcost


Financialassets atfair valuethroughprofitor loss


Others


TotalTrade payables


7,184,181











7,184,181Short-term borrowings


11,863,506











11,863,506Current portion of long-term liabilities


2,001,142











2,001,142Current portion of lease liabilities


108,488











108,488Long-term borrowings


4,741,358











4,741,358Security deposit received


69,836











69,836Long-term lease liabilities


24,694











24,694Total


25,993,205











25,993,205  7.
Trade receivables Trade receivables as of June 30, 2023 and December 31, 2022, are as follows:  (Unit: USD)Classification

As of June 30, 2023


As of December 31, 2022Current


Non-current


Current


Non-currentTrade receivables (*)


8,834,914



1,763,457



697,999



Allowance for bad debts














Net Trade receivables


8,834,914



1,763,457



697,999



  (*)
As of June 30, 2023, the balance of trade receivables primarily consists of USD 3,259,135 and USD
1,763,457, which are receivable from Inspire Casino Resort for the Incheon Yeongjongdo Inspire Project. Furthermore, there is a trade receivable of USD 1,130,007 included, which is associated with the distribution rights sold to GLAAM Malaysia.  25




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    8.
Other current financial assets Other current financial assets as of June 30, 2023 and December 31, 2022 are as follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Short-term loan


770,878



639,491Accrued income


83,240



76,649Other


187



319,790Total


854,305



1,035,930  9.
Prepayments and other short-term assets Prepayments and other short-term assets as of June 30, 2023 and December 31, 2022 are as follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Advanced payments (*)


2,647,317



1,503,365Prepaid expenses


20,893



17,552Value added tax (VAT) receivable


10,830



Total


2,679,040



1,520,917  (*)
Advanced payments as of June 30, 2023, is mainly composed of USD 862,300 for the professional fee related
to the business combination and USD 151,941 for the convertible bond related advance payments.  10.
Inventories Inventories as of June 30, 2023, are as follows:  (Unit: USD)Classification

As of June 30, 2023Acquisition cost


Provision forvaluation ofinventory


Book valueProducts


4,980,257







4,980,257Raw material


1,595,090



(181,018
)


1,414,072Total


6,575,347



(181,018
)


6,394,329 Inventories as of December 31, 2022, are as follows:  (Unit: USD)Classification

As of December 31, 2022Acquisition cost


Provision forvaluation ofinventory


Book valueProducts


4,671,074







4,671,074Raw material


1,246,042



(202,764
)


1,043,278Total


5,917,116



(202,764
)


5,714,352 The spread of COVID-19 posed material impact on the global economy in
2022. Therefore, the Company experienced a devasting impact on its financial position and performance including, but not limited to, decrease of productivity, inventory obsolescence, delayed or cancelled contracts, and collection of existing
receivables. Consequently, the Company decided to reassess the significant accounting estimates and assumptions applied in the preparation of the consolidated financial statements.  26




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Due to contract cancellation, GLAAMs product inventory of USD 3,705,865 and USD
1,439,096 were returned from the customer on September 29 and December 30, 2022, respectively. The Company wrote off USD
1,273,916 of GLAAMs returned inventory as impaired. Additionally, in 2022, the Company wrote off USD 4,922,600 of G-SMATT Americas inventory which were held for more than two years and considered as obsolete. The remaining balance of G-SMATT America inventory as of June 30,
2023 and December 31, 2022, was USD 0 and USD 170,603, respectively.  11.
Non-current financial assets Non-current financial assets as of June 30, 2023 and December 31, 2022 are as follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Fair value of membership in Construction Association of Republic of Korea


103,435



107,890Total


103,435



107,890  (Unit: USD)As of June 30,2023


As of December 31,2022Beginning balance


107,890



114,520Foreign currency translation differences for foreign operations


(4,455
)


(6,630
)Ending balance


103,435



107,890  12.
Investments accounted for using the equity method Investment accounted for using the equity method as of June 30, 2023 and December 31, 2022, are as follows:  As of June 30, 2023Classification

Company

GLAAMstakeholdingratio


G-FRAMEstakeholdingratio


Location

Financialstatementdate


Business typeAssociates

ChenjinChungjeolneungLtd.


33.00
%





China


2023.06.30


ManufacturingG-SMATTJAPAN


28.73
%


11.43
%

Japan


2023.06.30


RetailG-SMATTHONGKONG


20.00
%


7.40
%

Hongkong


2023.06.30


Retail  27




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    As of December 31, 2022Classification

Company

GLAAMstakeholdingratio


G-FRAMEstakeholdingratio


Location

Financialstatementdate


Business typeAssociates

ChenjinChungjeolneungLtd.


33.00
%





China


2022.12.31


ManufacturingG-SMATTJAPAN


28.73
%


11.43
%

Japan


2022.12.31


RetailG-SMATTHONGKONG


20.00
%


7.40
%

Hongkong


2022.12.31


Retail Summary financial statements for associates are follows:  (Unit: USD)As of June 30, 2023Classification

Company

Assets


Liabilities


Sales


Net income(loss)


Comprehensiveincome (loss)Associates

ChenjinChungjeolneungLtd.


27,312,378



32,925,353







(290,098
)


(290,098
)G-SMATTJAPAN


8,691,354



4,408,582



3,303,183



16,520



16,520G-SMATTHONGKONG


330,860



4,291,674







(268,417
)


(268,417
)  (Unit: USD)As of December 31, 2022


For the six months ended June 30, 2022Classification

Company

Assets


Liabilities


Sales


Net income(loss)


Comprehensiveincome(loss)Associates

ChenjinChungjeolneungLtd.


27,376,845



32,703,114



25,508



(494,854
)


(494,854
)G-SMATTJAPAN


10,649,564



5,831,552



946,160



(347,847
)


(347,847
)G-SMATTHONGKONG


377,895



3,832,029







(252,310
)


(252,310
)G-SMATTAmerica


2,747,598



3,127,976



84,914



(1,067,826
)


(1,067,826
)Korea Networks(*)














(799,333
)


(799,333
)  (*)
Korea Networks, in which the Company was holding 32.98% ownership, ceased its operation on October 19,
2022. The details of adjusting the financial information amount of the associates to the carrying amount of the stake
in the associates held by GLAAM are as follows:  (Unit: USD)As of June 30, 2023Company

Net asset (a)


Stakeholdingratio (b)


Net asset applied tostake holding ratio(a*b)


Goodwill


Book valueChenjin Chungjeolneung Ltd.


(5,612,975
)


33.00
%










G-SMATT JAPAN


4,282,773



28.73
%


1,230,441



575,384



1,805,825G-SMATT HONGKONG


(3,960,814
)


20.00
%










Total


















1,805,825   28




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (Unit: USD)As of December 31, 2022Company

Net asset (a)


Stakeholdingratio (b)


Net asset applied tostake holding ratio(a*b)


Goodwill


Book valueChenjin Chungjeolneung Ltd.


(5,326,269
)


33.00
%










G-SMATT JAPAN


4,818,011



28.73
%


1,384,215



600,170



1,984,384G-SMATT HONGKONG


(3,454,134
)


20.00
%










Total


















1,984,384 The details of adjusting the financial information amount to the carrying amount of the stake in the major associates held by
G-Frame are as follows:  (Unit: USD)As of June 30, 2023Company

Net asset (a)


Stake holdingratio (b)


Net asset applied tostake holding ratio (a*b)


Goodwill


Book valueG-SMATT JAPAN


4,282,773



11.43
%


489,521



232,428



721,949G-SMATT Hong Kong


(3,960,814
)


7.40
%










Total


















721,949  (Unit: USD)As of December 31, 2022Company

Net asset (a)


Stake holdingratio (b)


Net asset applied tostake holding ratio (a*b)


Goodwill


Book valueG-SMATT JAPAN


4,818,011



11.43
%


550,699



242,536



793,235G-SMATT Hong Kong


(3,454,134
)


7.40
%










Total


















793,235  13.
Property, Plant, and Equipment Property, plant and equipment as of June 30, 2023 and December 31, 2022, are as follows:  (Unit : USD)As of June 30, 2023Classification

Beginning


Acquisition


Depreciation


Disposal


Others (*)


EndingLands


5,449,778















(225,063
)


5,224,715Buildings


3,214,244







(61,503
)






(131,785
)


3,020,956Structures


9,974







(300
)






(409
)


9,265Machineries


2,085,058



142,876



(156,267
)






(85,623
)


1,986,044  29




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Vehicles


16,111







(1,821
)






(637
)


13,653Tools


12,786







(7,329
)






(181
)


5,276Furniture


67,591



18,897



(20,773
)






(3,361
)


62,354Facilities


64,781







(9,956
)






(2,521
)


52,304ROU assets


134,847



111,977



(114,402
)


(1,602
)


(5,506
)


125,314Total


11,055,170



273,750



(372,351
)


(1,602
)


(455,086
)


10,499,881  (*)
Others are from differences in foreign currency translations associated with overseas subsidiaries.  (Unit : USD)As of December 31, 2022Classification

Beginning


Acquisition


Additionfromacquisition


Depreciation


Disposal


Others (*)


EndingLands


4,543,328



3,233,219











(2,090,933
)


(235,836
)


5,449,778Buildings


7,343,309



2,152,654







(234,555
)


(5,535,877
)


(511,287
)


3,214,244Structures


448,653











(11,520
)


(391,586
)


(35,573
)


9,974Machineries


2,972,429



1,179,928







(643,617
)


(1,234,535
)


(189,147
)


2,085,058Vehicles


2,328



18,262







(4,667
)






188



16,111Tools


20,874







23,268



(15,195
)


(1
)


(16,160
)


12,786Furniture


45,287



21,672



116,985



(25,217
)






(91,136
)


67,591Facilities


273,904











(187,572
)


(1,198
)


(20,353
)


64,781ROU assets


359,543



24,525







(223,981
)






(25,240
)


134,847Total


16,009,655



6,630,260



140,253



(1,346,324
)


(9,254,130
)


(1,124,544
)


11,055,170  (*)
Others are from differences in foreign currency translations associated with overseas subsidiaries.  14.
Intangible assets Intangible assets as of June 30, 2023 and December 31, 2022, are as follows:  (Unit : USD)Classification

Beginning


Amortization


Difference in Foreigncurrency translation


EndingIndustrial rights


59,339



(12,084
)


(2,263
)


44,992Software


134,639



(47,469
)


(4,824
)


82,346Trademark


27



(19
)


(1
)


7Distribution rights


5,845,516



(871,004
)


(38,720
)


4,935,792Total


6,039,521



(930,576
)


(45,808
)


5,063,137  (Unit : USD)As of December 31, 2022Classification

Beginning


Additionfromacquisition


Amortization


Impairment


Differencein Foreigncurrencytranslation


EndingIndustrial rights


94,276







(28,793
)






(6,144
)


59,339Software


251,108







(99,561
)






(16,908
)


134,639Trademark


399







(341
)






(31
)


27Distribution rights


3,903,251



3,540,675
(*)


(1,309,611
)






(288,799
)


5,845,516Total


4,249,034



3,540,675



(1,438,306
)






(311,882
)


6,039,521  (*)
Distribution rights added from consolidation of G-Smatt America  30




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Distribution Rights GLAAM On July 31, 2015, GLAAM granted
exclusive distribution rights for GLAAMs products for 10 years to G-SMATT Global, a former related party of GLAAM. GLAAM received USD 8,571,404 from G-SMATT Global
as consideration for granting exclusive distribution rights. Per the agreement, if G-SMATT Global regrants this distribution rights to another party, GLAAM is subject to receive 50% of the consideration
received from another party for regranting the distribution rights. On March 7, 2019, the aforementioned agreement between GLAAM and G-SMATT Global was amended so that GLAAM can distribute the Companys products. As a result, GLAAM acquired 50% of the consideration received from G-SMATT Global in
connection with the original agreement made on July 31, 2015 for this distribution right as intangible assets. The amount paid to G-SMAAT is being amortized by the Company using the straight-line method
over the remaining period of the original contract term. In 2022, the Company received a valuation on USD 1,593,310 of GLAAMs distribution right by
third party and it was concluded that the recoverable amount is greater than the book balance as of December 31, 2022. Since this assessment, the Company does not believe there are any indicators of impairment requiring subsequent analysis, and
as of June 30, 2023, the remaining balance of distribution rights was USD 1,231,728 net of amortization. G-SMATT America On June 15, 2016, exclusive distribution and license agreement was made for 10 years between G-SMATT Global, a
former related party of GLAAM, and G-SMATT America. Per the agreement, in consideration for the exclusive territorial distribution rights and license granted to, G-SMATT
America paid a one-off, non-refundable royalty fee of USD 8,571,404. Per the exclusive distribution right agreement made between GLAAM and
G-SMATT Global, though, 50% of the consideration received when regranting the exclusive distribution right to another party should be paid to GLAAM. Accordingly, 50% of the consideration received from G-SMATT America was paid to GLAAM by G-SMATT Global after finalizing the exclusive distribution contract with G-SMATT America. In 2022, the Company received a valuation on USD 3,120,320 of G-SMATT Americas distribution right by third party
and it was concluded that the recoverable amount is greater than the book balance as of December 31, 2022. Since this assessment, the Company does not believe there are any indicators of impairment requiring subsequent analysis, and as of
June 30, the remaining balance of distribution rights was USD 2,666,462 net of amortization. G-SMATT
Europe On March 27, 2017, G-SMATT Global and G-SMATT Europe
made exclusive distribution and license agreements for an initial term of 10 years. For the exclusive territorial distribution rights and license granted, G-SMATT Europe paid USD 2,762,760, and it is being
amortized using the straight-line method over a useful life of 10 years. As in the case when exclusive distribution contract made with G-SMATT America, 50% of the consideration received from G-SMATT Europe was paid by G-SMATT Global to GLAAM, accordingly. In 2022, the
Company received a valuation on USD 1,131,886 of G-SMATT Europes distribution right by a third party and it was concluded that the recoverable amount is greater than the book balance as of
December 31, 2022. Since this assessment, the Company does not believe there are any indicators of impairment requiring subsequent analysis, and as of June 30, 2023, the remaining balance of distribution rights was USD 1,037,602 net of
amortization.  31




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    15.
Deposits Other non-current assets as of June 30, 2023 and December 31, 2022, are as follows:  (Unit: USD)Classification

As of June 30, 2023

As of December 31, 2022Security deposits, net(*)

176,847


207,825Other deposits(**)

3,798,526


4,307,756Total

3,975,373


4,515,581 (*) Related to the lease deposit paid for the office, warehouse, employees dormitory, and corporate leased vehicle. (**) As of June 30, 2023, other deposits are entirely composed of escrowed deposit (KRW 5,000,000,000) related to Trinit Co., Ltd. in
conjunction with disposing of G-SMATT Global Co., Ltd. in 2019.  16.
Leases Changes in Right-of-Use assets as of June 30, 2023 and December 31,
2022 are as follows:  (Unit: USD)As of June 30, 2023Classification

Beginning


Acquisition


Depreciation


Contracttermination


Loss fromtranslatingforeignoperations


EndingBuildings


104,083



111,977



(106,587
)


(1,602
)


(4,357
)


103,514Vehicles


30,764







(7,815
)






(1,149
)


21,800Total


134,847



111,977



(114,402
)


(1,602
)


(5,506
)


125,314  (Unit: USD)As of December 31, 2022Classification

Beginning


Acquisition


Depreciation


Changeincontract


Contracttermination


Loss fromtranslatingforeignoperations


EndingBuildings


304,063



24,525



(202,977
)


6,612



(6,425
)


(21,715
)


104,083Vehicles


55,480







(21,004
)










(3,712
)


30,764Total


359,543



24,525



(223,981
)


6,612



(6,425
)


(25,427
)


134,847 Changes in lease liabilities as of June 30, 2023 and December 31, 2022 are as follows:  (Unit: USD)As of December 31, 2023Classification

Beginning

Acquisition

Interest


Payments


Contracttermination


Loss fromtranslatingforeignoperations


EndingLiabilities

133,182

106,940


6,301



(109,325
)


(1,522
)


(12,602
)


122,974  32




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (Unit: USD)As of December 31, 2022Classification

Beginning


Acquisition


Interest


Payments


Changeincontract


Contracttermination


Loss fromtranslatingforeignoperations


EndingLiabilities


350,973



21,801



15,601



(231,156
)


6,305



(5,555
)


(24,787
)


133,182 Amount recognized of profit or loss in relation to the lease is as follows:  (Unit: USD)Classification

For the sixmonths endedJune 30, 2023


For the sixmonths endedJune 30, 2022Right-of-Use
assetsBuildings


106,587



113,518Vehicles


7,815



13,790Subtotal


114,402



127,308Interest expense relating to lease liabilities


6,301



9,727Expense relating to leases of low-value assets that are
not short-term leases


9,840



8,987Miscellaneous loss (profit)


(91
)


(107
)Subtotal


16,050



18,607Total


130,452



145,915 The total cash payments for leases for the six months ended June 30, 2023 and 2022, amounts to USD 126,342 and USD
224,356 respectively.  17.
Insured assets Insured assets as of June 30, 2023, are as follows:  (Unit: USD)Insurance

Insured assets

Insuredamount


NotesPackage Insurance

Buildings, machineries, inventories etc.


15,346,046


Hyundai insuranceFire insurance

Buildings, machineries, inventories etc.


2,623,565


Meritz fireAuto insurance

Vehicles


18,917


Hyundai insuranceTotal




17,988,528 Insured assets as of December 31, 2022, are as follows:  33




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (Unit: USD)Insurance

Insured assets

Insured amount

Notes  Package Insurance

Buildings, machineries, inventories etc.


16,015,024


Hyundai
insuranceFire insurance

Buildings, machineries, inventories etc.


2,736,579


Meritz fireAuto insurance

Vehicles


22,988


Hyundai
insuranceTotal




18,774,591 In addition to the above insurance, the Company subscribes to industrial accident insurance for employees, comprehensive
insurance for vehicle transportation equipment, and liability insurance.  18.
Other current payables and liabilities Other payables as of June 30, 2023 and December 31, 2022 are as follows:  (Unit: USD)Classification

As of June 30, 2023


As of December 31, 2022Non-trade Payables


6,637,751



4,132,680Accrued Expense


1,178,809



1,558,085Total


7,816,560



5,690,765 Other current liabilities as of June 30, 2023 and December 31, 2022, are as follows:  (Unit: USD)Classification

As of June 30, 2023


As of December 31, 2022Withholdings


17,785



15,086Value added tax withheld


206,755



208,186Advance Received


692,426



576,299Total


916,966



799,571  19.
Other Non-current payables and liabilities Other non-current payables as of June 30, 2023 and December 31, 2022 are as
follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Long-term Accounts Payable


4,391



32,062(Present Value Discount)


(226
)


(236
)Total


4,165



31,826 Other non-current liabilities as of June 30, 2023 and December 31, 2022 are
as follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Lease deposit






69,836Total






69,836  34




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    20.
Product warranty provision The Company provides maximum of two years of warranty for all products. The amount of product warranty provision as of June 30, 2023 and
December 31, 2022 are as follows:  (Unit: USD)Classification

As of June 30, 2023


As of December 31, 2022Product warranty provision


34,942



36,099Total


34,942



36,099  21.
Borrowings Borrowings as of June 30, 2023 are as follows:  (Unit: USD)Type of borrowing

Borrowing from

2023Interestrate


As ofJune 30,2023Short-term borrowings

Whale No1. M&A Private Equity Joint Venture for Small and Medium Enterprises


8.00
%


3,418,674Samsung Securities Co., Ltd


6.00
%


609,663Ulmus-Solon Technology Investment Partnership 1st Joint Business Execution Cooperative


6.00
%


243,865Powergen Co., Ltd.


10.96
%


736,914Kookmin bank


8.15
%


269,3928.15
%


607,764SBI savings bank


7.14
%


698,929William Isam Company


4.00
%


202,503Sungsoo Lee


7.90
%


1,139,558Others


0~15.00
%


5,609,860Subtotal






13,537,122Current portion of long-term liabilities

United asset management Ltd.


6~7.31
%


1,234,765Convertible bond

Charm Savings Bank


10
%


1,868,507Long-term borrowings

MG Saemaeul Credit Union (Sannam)


9.00
%


3,418,674MG Saemaeul Credit Union (Dongmun)


8.70
%


759,705Barclays


2.50
%


41,923Directors Loan


5.00
%


507,745Subtotal






4,728,047Total






21,368,441  35




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Borrowings as of December 31, 2022 are as follows:  (Unit: USD)Type of borrowing

Borrowing from

2022Interestrate


As ofDecember 31,2022Short-term borrowings

Whale No1. M&A Private Equity Joint Venture for Small and Medium Enterprises


8.00
%


3,565,938Samsung Securities Co., Ltd


6.00
%


635,926Ulmus-Solon Technology Investment Partnership
1st Joint Business Execution Cooperative


6.00
%


254,370Han Partners


6.00
%


132,1776.00
%


82,6116.00
%


66,0896.00
%


8,262Kookmin Bank


8.15
%


285,2758.15
%


633,945Sung Soo Lee


7.90
%


2,377,292SBI savings bank


7.38
%


729,036William Isam Company


4.00
%


189,407Others


5.00
%


2,903,178Subtotal






11,863,506Current portion of long-term liabilities

United asset management Ltd.


6~7.38
%


2,001,142Long-term borrowings

MG Saemaeul Credit Union (Sannam)


9.00
%


3,565,938MG Saemaeul Credit Union (Dongmun)


8.70
%


792,431Barclays


2.50
%


45,397Orhan Ertughrul


5.00
%


337,592Subtotal






4,741,358Total






18,606,006  22.
Pension and other employee obligations Defined benefit liabilities as of June 30, 2023 and December 31, 2022 are as follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Present value of defined benefit obligations


1,459,411



1,459,979Fair value of plan assets


(114,513
)


(118,121
)Net defined benefit obligations


1,344,898



1,341,858  36




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    The details of changes in the defined benefit obligation are as follows:  (Unit: USD)Classification

As ofJune 30,2023


As ofDecember 31,2022Beginning


1,459,980



1,174,807Current service cost


195,664



286,420Re-measurement element - Actuarial gain due to changes in
financial assumptions


3,203



360,625Payment made


(138,252
)


(293,684
)Foreign currency translation differences for foreign operations


(61,184
)


(68,189
)Ending


1,459,411



1,459,979  37




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    The details of changes in the planned assets are as follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Beginning


118,121



123,845Re-measurement Element- Gain from plan assets


1,269



3,287- Actuarial gain due to changes in financial assumptions






(1,919
)Foreign currency translation differences for foreign operations


(4,877
)


(7,092
)Ending


114,513



118,121 The details of the composition of planned assets are as follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Deposit


114,513



118,121 The details of major actuarial assumptions are as follows:  (Unit: %)Classification

As of June 30,2023


As of December 31,2022Expected salary increase rate


4.50
%


4.50
%Discount rate


5.18
%


5.18
%  23.
Share capital Share capital as of June 30, 2023 and December 31, 2022 are as follows:  As of June 30, 2023Classification

Common stockThe total number of shares authorized


50,000,000 sharesPrice per share (*)


0.40 USDThe total number of shares outstanding


21,111,153 sharesPaid-in capital


8,736,267 USD  As of December 31,2022Classification

Common stockThe total number of shares authorized


50,000,000 sharesPrice per share (*)


0.40 USDThe total number of shares outstanding


20,087,940 sharesPaid-in capital


8,326,057 USD  38




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    As of June 30, 2023 and December 31, 2022, major shareholders are as follows:  As of June 30, 2023


As of December 31, 2022Name of Shareholders

Number ofshares


Shareholdingratio


Number ofshares


ShareholdingratioBio X Co., Ltd. (BioX)


3,000,000



14.21
%


3,339,667



16.63
%Whale No1. M&A Private Equity Joint Venture for Small and Medium Enterprises


2,100,000



9.95
%


2,100,000



10.45
%Ho-Joon Lee


400,000



1.89
%


400,000



1.99
%Samsung Securities Co., Ltd


749,000



3.55
%


749,000



3.73
%Kyung Rae Kim


43,000



0.20
%


43,000



0.21
%Others


14,819,153



70.20
%


13,456,273



66.99
%Total


21,111,153



100.00
%


20,087,940



100.00
% Details of changes in capital for the six months ended June 30, 2023 and year ended December 31,
2022 are as follows:  (Unit: USD)For the six months ended June 30, 2023Classification

Beginning


Increase


EndingCapital (*)


8,326,057



410,210



8,736,267 (*)
The Company conducted a paid-in capital increase from January 31, 2023
to March 1, 2023, and registration was completed on March 6, 2023.  (Unit: USD)For the year ended December 31, 2022Classification

Beginning


Increase


EndingCapital (*)


6,207,730



2,118,327



8,326,057  (*)
The Company conducted a paid-in capital increase from February 19,
2022 to December 27, 2022, and registration was completed on December 31, 2022.  39




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    History for details of additional paid-in capital are as follows:  40




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (Unit: Share, USD)#

Date


Issue (reduction)
Circumstances

Typeof Stock

Numberof Stocks


Totalstock


Face value


Issuing value


Paid inCapitalFacevaluepershare


Amounts


Total


Issuingvaluepershare


Amounts


Total1


2005.05.26


Established

Common stock


90,000



90,000



4



378,508



378,508



4



378,508



378,5082


2012.04.02


Paid-in capital increase

Common stock


310,000



400,000



4



1,303,748



1,682,256



4



1,303,748



1,682,2563


2012.09.27


Paid-in capital increase

Common stock


200,000



600,000



4



841,128



2,523,383



4



841,128



2,523,3834


2013.10.31


Paid-in capital increase

Common stock


52,000



652,000



4



218,693



2,742,077



42



2,186,932



4,710,316



1,968,2395


2014.11.27


Exercise of stock options

Common stock


27,000



679,000



4



113,552



2,855,629



4



113,552



4,823,8686


2014.12.31


Exercise of stock options

Common stock


18,000



697,000



4



75,702



2,931,330



4



75,702



4,899,5697


2015.01.22


Exercise of stock options

Common stock


6,000



703,000



4



25,234



2,956,564



4



25,234



4,924,8038


2015.07.24


Paid-in capital increase

Common stock


29,290



732,290



4



123,183



3,079,747



144



4,205,399



9,130,202



4,082,2169


2017.05.02


Split stock(one-tenth split)








7,322,900











3,079,747











9,130,20210


2017.12.20


Exercise of stock options

Common stock


60,000



7,382,900



0.42



25,234



3,104,981



5



285,445



9,415,648



260,21111


2017.12.31


PIC adjustment




























102,571







102,57112


2021.12.31


Paid-in capital increase

Common stock


7,377,593



14,760,493



0.42



3,102,749



6,207,730



4



31,027,492



40,443,140



27,924,74313


2021.12.31


PIC adjustment (admin expenses
etc)




























(20,019
)






(20,019
)14


2022.02.19


Paid-in capital increase

Common stock


868,000



15,628,493



0.4



363,298



6,571,028



4



3,632,985



44,056,106



3,269,68715


2022.03.03


Paid-in capital increase

Common stock


800,000



16,428,493



0.4



331,411



6,902,440



4



3,314,111



47,370,217



2,982,70016


2022.03.29


Paid-in capital increase

Common stock


819,840



17,248,333



0.4



339,043



7,241,483



4



3,390,431



50,760,648



3,051,388  41




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (Unit: Share, USD)Face value


Issuing value


Paid inCapital#

Date


Issue (reduction)
Circumstances

Typeof Stock


NumberofStocks


Totalstock


Facevaluepershare


Amounts


Total


Issuingvaluepershare


Amounts


Total17


2022.05.31


Paid-in capital increase


Commonstock



761,538



18,009,871



0.4



306,459



7,547,942



4



3,064,589



53,825,236



2,758,13018


2022.06.29


Paid-in capital increase


Commonstock



353,869



18,363,740



0.4



135,859



7,683,800



4



1,358,589



55,183,826



1,222,73019


2022.07.29


Paid-in capital increase


Commonstock



376,000



18,739,740



0.4



144,250



7,828,051



4



1,442,503



56,626,329



1,298,25320


2022.09.01


Paid-in capital increase


Commonstock



310,000



19,049,740



0.4



114,245



7,942,296



4



1,142,453



57,768,782



1,028,20721


2022.10.01


Paid-in capital increase


Commonstock



458,000



19,507,740



0.3



159,721



8,102,017



4



1,597,210



59,365,992



1,437,48922


2022.11.24


Paid-in capital increase


Commonstock



242,000



19,749,740



0.4



91,127



8,193,144



4



911,268



60,277,260



820,14123


2022.12.27


Paid-in capital increase


Commonstock



338,200



20,087,940



0.4



132,913



8,326,057



4



1,329,131



61,606,391



1,196,21824


2023.01.31


Paid-in capital increase


Commonstock



823,213



20,911,153



0.4



333,630



8,659,687



4



3,336,304



64,942,695



3,002,67425


2023.03.01


Paid-in capital increase


Commonstock



200,000



21,111,153



0.4



76,580



8,736,267



4



765,796



65,708,491



689,21626


2023.06.30


PIC adjustment






























(4,246
)






(4,246
)Total






































57,070,548  42




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    24.
Other capital items and accumulated other comprehensive income Details of other capital items and accumulated other comprehensive income as of June 30, 2023 and December 31, 2022, are as follows:  (Unit: USD)Classification

As of June 30,2023


As of December 31,2022Changes in equity from equity method


2,754,052



2,897,852(Negative) Changes in equity from equity method


(3,251,395
)


(3,251,395
)Stock options


2,709,081



2,297,697Gains (loss) on sale of treasury stock


(410,453
)


(410,453
)Other capital surplus


(51,043
)


(51,043
)Total


1,750,242



1,482,658 The composition of accumulated other comprehensive income as of June 30, 2023 and December 31, 2022
are as follows:  (Unit: USD)As of June 30, 2023Classification

Beginning


Increase(decrease)


Re-classificationinto profit orloss (retainedearnings)


EndingExchange difference on translating foreign operations


1,933,924



(462,328
)






1,471,596Total


1,933,924



(462,328
)






1,471,596  (Unit: USD)As of December 31, 2022Classification

Beginning


Increase(decrease)


Re-classificationinto profit orloss (retainedearnings)


EndingExchange difference on translating foreign operations


1,304,641



629,283







1,933,924Total


1,304,641



629,283







1,933,924  43




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    25.
Selling and administrative expenses Details of selling and administrative expenses for the six months ended June 30, 2023 and 2022, are as follows:  (Unit: USD)Classification

For the six monthsended June 30,2023


For the six monthsended June 30,2022Salaries


1,141,405



1,077,633Sundry allowances


57,297



36,686Miscellaneous salaries






4,864Severance benefit


99,964



84,976Employee benefits


132,452



122,147Travel expenses


176,755



113,561Entertainment expenses


30,181



9,877Communication expenses


8,259



6,449Utilities


3,218



13,627Electricity


24,449



25,842Taxes and dues


56,518



74,960Depreciation


147,364



219,667Rent


182,295



39,638Repairing cost


8,072



57,485Insurance


19,396



12,183Vehicle maintenance


7,283



664Research and development expenses


142,249



166,635Transportation


69,286



222,529Training


797



Publication expenses


5,551



1,940Office supplies


8,977



19,294Consumable supplies


21,599



14,852Commission


1,158,977



889,721Advertisement expense


179,088



149,489Bad debt expenses






50,630Product warranty expense


4,198



5,764Miscellaneous expense


6,581



11,213Amortization


877,499



505,055Employee share compensation


411,384



312,052Safety






1,524Total


4,981,094



4,250,957  44




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    26.
Finance income and finance costs Details of finance income for the six months ended June 30, 2023 and 2022, are as follows:  (Unit: USD)Classification

For the six monthsended June 30,2023


For the six monthsended June 30,2022Interest Income


14,926



60,470Gain from foreign currency translation


21,918



53,909Gain from foreign exchange translation


156,232



226,057Gain from discharge of indebtedness (*)






91,879Total


193,076



432,315 (*)
Gain from discharge of indebtedness was recognized from conversion of convertible bonds to equity which
occurred 2022. Details of finance costs for the six months ended June 30, 2023 and 2022, are as follows:  (Unit: USD)Classification

For the six monthsended June 30,2023


For the six monthsended June 30,2022Interest expense


839,956



94,550Loss from foreign currency translation


2,673



61,673Loss from foreign exchange translation


42,581



73,151Total


885,210



229,374  27.
Other income and other expenses Details of other income for the six months ended June 30, 2023 and 2022, are as follows:  (Unit: USD)Classification

For the six monthsended June 30,2023


For the six monthsended June 30,2022Loss from equity method


6,634



Income from disposal of tangible assets


91



Miscellaneous


11,293



145,537Dividend income


833



1,927Total


18,851



147,464 Details of other expenses for the six months ended June 30, 2023 and 2022, are as follows:  (Unit: USD)Classification

For the six monthsended June 30,2023


For the six monthsended June 30,2022Loss from equity method investment






594,865Miscellaneous loss


69,927



240,874Other allowance for other receivables and prepayments






11,674Donation


37,812



Total


107,739



847,413  45




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    28.
Corporate income tax expenses (benefit) Details of corporate income tax expense (benefit) for the six months ended June 30, 2023 and 2022, are as follows:  (Unit: USD)Classification

For the six monthsended June 30,2023


For the six monthsended June 30,2022Corporate tax paid


(3,035
)


(254,522
)Changes in deferred tax assets due to temporary differences


23,116



Income tax benefit


20,081



(254,522
) The details of the increase or decrease in temporary differences deducted or added from future corporate
income tax for the six months ended June 30, 2023 and year ended December 31, 2022, are as follows:  (Unit: USD)For the six months ended
June 30, 2023Temporary differences to be deducted(additional) for the current year


Deferred tax assets(liabilities)Classification

Beginning


Inc (Dec)


EndingLoss on foreign currency translation


136,353



(94,432
)


41,921



8,761Gain from foreign currency translation


(65,353
)


(82,579
)


(147,932
)


(30,918
)Provision for retirement benefits


1,315,937



107,669



1,423,606



297,534Retirement pension assets


(118,121
)


3,608



(114,513
)


(23,933
)Accumulated depreciation


1,699,006



(70,165
)


1,628,841



340,428Investment in subsidiaries and associates


43,979,927



(1,816,264
)


42,163,663



8,812,190Available-for-sale


(192,349
)


7,944



(184,405
)


(38,541
)Revaluation of non-current financial asset


30,139



(1,245
)


28,894



6,039Capital change from equity method


575,352



(23,761
)


551,591



115,285Inventory allowance


196,385



(21,518
)


174,867



36,547Provision for warranties


36,099



(1,157
)


34,942



7,303Trade receivables


3,397,671



(140,316
)


3,257,355



680,787Short-term borrowings


6,407,370



(264,609
)


6,142,761



1,283,837Other receivables


420,117



(17,350
)


402,767



84,178Accrued income


335,158



(94,106
)


241,052



50,380Advanced payments


149,420



(6,171
)


143,249



29,939Loss on equity method investment impairment


2,187,346



(90,332
)


2,097,014



438,275Lease liabilities


122,962



(2,971
)


119,991



25,078Rent deposits


7,483



(1,349
)


6,134



1,282Right of use assets


(124,051
)


1,845



(122,206
)


(25,541
)Net operating loss


20,173,446







20,173,446



4,216,250Total


80,670,297



(2,607,259
)


78,063,038



16,315,160Valuation allowance














(13,498,388
)Deferred tax asset, net














2,816,772  46




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Statutory tax rate in Republic of Korea is 20.9% for the six months ended June 30, 2023.  (Unit: USD)For the year ended 2022Temporary differences to be deducted(additional) for the current year


Deferred taxassets(liabilities)Classification

Beginning


Inc (Dec)


EndingLoss on foreign currency translation


75,676



60,677



136,353



28,498Gain from foreign currency translation


(423,358
)


358,005



(65,353
)


(13,659
)Provision for retirement benefits


950,940



364,997



1,315,937



275,031Retirement pension assets


(123,845
)


5,724



(118,121
)


(24,687
)Accumulated depreciation


1,269,315



(73,487
)


1,195,828



249,928Accumulated depreciation (revaluation)


(734,647
)


734,647







Machineries (revaluation)


255,884



(255,884
)






Land (revaluation)


(1,495,641
)


1,495,641







Accumulated depreciation


534,099



(30,921
)


503,178



105,164Investment in subsidiaries and associates


32,840,759



11,139,168



43,979,927



9,191,805Available-for-sale


(204,170
)


11,821



(192,349
)


(40,201
)Revaluation of non-current financial asset


31,991



(1,852
)


30,139



6,299Capital change from equity method


(358,416
)


933,768



575,352



120,249Raw material allowance






196,385



196,385



41,044Provision for warranties






36,099



36,099



7,545Trade receivables






3,397,671



3,397,671



710,113Short-term borrowings






6,407,370



6,407,370



1,339,140Other receivables






420,117



420,117



87,805Accrued income


(1,622,198
)


1,957,356



335,158



70,048Advanced payment


171,310



(21,890
)


149,420



31,229Loss on equity method investment impairment






2,187,346



2,187,346



457,155Lease liabilities






122,962



122,962



25,699Rent deposits






7,483



7,483



1,564Right of use assets






(124,051
)


(124,051
)


(25,927
)Bad debt


20,173,446



(20,173,446
)






Net operating loss






20,173,446



20,173,446



4,216,250Total


51,341,145



29,329,152



80,670,297



16,860,092Valuation allowance














(13,898,245
)Deferred tax asset, net














2,961,847  47




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Statutory tax rate in Republic of Korea is 20.9% for fiscal year 2022. The future feasibility of deferred tax assets is evaluated by considering various factors such as the Companys ability to generate
taxable income during the period when temporary differences are realized, the overall economic environment, and the outlook for the industry. The Company is reviewing these matters periodically. Management reserved valuation allowance of
approximately 60% and 80% of the total deferred tax assets calculated as of June 30, 2023 and December 31, 2022, respectively.  29.
Related party transactions and balances Details of related party transaction are as follows:  Classification

NameRelatedcompanies

Chenjin chungjeolneung Ltd. G-SMATT Hong Kong Limited (G-SMATT Hong Kong)G-SMATT Japan Corporation (G-SMATT Japan)Other

BioX and GLAAM co-founders
 There were no sales and purchase transactions made with related parties for the six months ended
June 30, 2023. Major sales and purchases with related parties for the year ended 2022, are as follows:  (Unit: USD)For the year ended 2022Sales


PurchaseClassification

Name


Sales


Otherincome


Rawmaterialpurchase


OtherexpenseRelated companies


G-SMATT JAPAN



9,267











Total






9,267











 The details of receivable and payable to related parties are as of June 30, 2023 and December 31,
2022, are as follows:  (Unit: USD)As of June 30, 2023Name

Receivable


PayableAccountsreceivable


Loans


Others


Accountspayable


Borrowing


OthersG-SMATT JAPAN


432,238



















Total


432,238



















  (Unit: USD)As of December 31, 2022Name

Receivable


PayableAccountsreceivable


Loans


Others


Accountspayable


Borrowing


OthersG-SMATT JAPAN


322,763



















Total


322,763



















  48




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    There are no financial transactions made with related parties for the six months ended
June 30, 2023. The details of financial transactions for related parties for the year endedDecember 31, 2022, are as follows:  (Unit: USD)As of December 31, 2022Loan


BorrowingClassification

Name


Loan


Collection


Borrowing


RepaymentRelated companies


G-SMATT JAPAN















163,279Total















 Compensation for key management for the six months ended June 30, 2023 and year ended 2022, are as
follows:  (Unit: USD)Classification

For the six months endedJune 30, 2023


For the year ended2022Salaries and Retirement benefit


561,529



913,619Total


561,529



913,619 Key management include directors (including non-executive directors)
and auditors who have significant authority and responsibility for the planning, operation, and control of our activities. BioX
Transactions The Company and Bio X Co., Ltd, a major shareholder and a company founded by the Companys co-founders, entered into 14 loan agreements during the period from January 4, 2023 to April 21, 2023. The term of all loans is one year and accrues interest at a rate of 5% per annum. An aggregate amount
of loans made to the Company by BioX was KRW 2,417,000,000, and as of June 30, 2023, the Company repaid these loans in full. Houngki Kim Credit Agreement The Company and Houngki Kim, the Companys co-founder, entered into a credit agreement dated
January 2, 2023, that provides for a revolving line of credit to the Company in an amount of KRW 2,000,000,000 accruing at a rate of 5% per annum and maturing on December 31, 2023. As of June 30, 2023, an aggregate of KRW 875,482,411
was outstanding under the credit agreement. Ho Joon Lee Loan Agreement The Company and Ho Joon Lee, the Companys co-founder, entered into a loan agreement dated
July 21, 2021, whereby Ho Joon Lee lent an aggregate of KRW 30,000,000 to the Company with no interest. This loan agreement is to mature on July 20, 2023, and as of June 30, 2023, the outstanding balance under this loan agreement is
KRW 30,000,000.  30.
Commitment and Contingency Litigation In the
ordinary course of business, the Company may become involved in claims and legal actions. While the final resolution of these proceedings may have an impact on the consolidated financial statements for a particular period, the Company does not
believe these matters are material to its financial position or results of operations.  49




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    31.
Cash flows Cash flows from operating activities for the six months ended June 30, 2023 and 2022, are as follows:  (Unit: USD)For the six months endedClassification

June 30, 2023


June 30, 2022a. Net profit


452,251



2,034,297b. Adjustment


2,785,141



2,008,905Corporate tax benefit


20,081



(254,522
)Depreciation


372,351



764,187Amortization


930,576



543,065Bad debt






50,630Other bad debt






11,674Stock compensation costs


411,384



312,052Defined benefit expense


198,499



145,068Interest expense


846,257



94,550Loss on foreign currency translation


34,555



42,597Loss on valuation of equity method






594,865Product warranty expense


4,198



5,764Interest income


(14,926
)


(60,470
)Gain from discharge of indebtedness






(91,879
)Gain from equity method


(6,634
)


Gain from foreign exchange translation


(11,109
)


(148,676
)Gain from disposition of tangible assets


(91
)


c. Changes in working capital


(8,822,275
)


(2,119,487
)Decrease (increase) in trade receivables


(8,317,588
)


1,307,497Decrease (increase) in other receivables


311,226



(106,501
)Decrease (increase) in accrued income


(1,616
)


(532
)Decrease (increase) in advance payments


(1,225,046
)


293,096Decrease (increase) in prepaid expenses


(4,130
)


3,159Decrease (increase) in inventory


(930,403
)


(321,705
)Decrease (increase) in non-current accounts
receivable


(1,791,250
)


Increase (decrease) in trade payables


(309,814
)


(1,663,181
)Increase (decrease) in outstanding payments


3,329,440



2,011,741Increase (decrease) in deferred income tax assets


3,034



Increase (decrease) in value added tax withheld


10,654



3,165Increase (decrease) in advance income


142,132



(3,602,093
)Increase (decrease) in outstanding expenses


143,793



(441,816
)Increase (decrease) in product warranty provision


(3,858
)


Increase (decrease) in value added tax receivable


(11,000
)


474,071Increase (decrease) in non-current outstanding
payments


(26,762
)


(26,437
)Payment of severance


(141,087
)


(49,951
)Cash flows generated from operating activities


(5,584,883
)


1,923,715  50




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    Significant transactions without cash inflows and outflows for the six months ended June 30, 2023 and
2022 are as follows:  (Unit: USD)Classification

For the six monthsended June 30, 2023


For the six monthsended June 30, 2022Debt conversion


3,287,297



1,003,554Conversion of convertible bonds






7,621,498  32.
Earnings per share Basic earnings per share are calculated by dividing the net income attributable to common stock by the number of common stocks in weighted
average distribution, and the calculation details are as follows:  (Unit: USD)Classification

As of June 30,2023


As of June 30,2022Net income per common stock (loss)


452,251



2,034,297Weighted average number of outstanding common stock


20,910,620



16,471,761Basic earnings per share (loss)


0.02



0.12  (Unit: Share)As of June 30, 2023Classification

Number of stocks


Weighted value


SubtotalCarryover from the previous period


20,087,940



181



3,635,917,140Paid-in capital increase


823,213



151



124,305,163Paid-in capital increase


200,000



123



24,600,000Days



181Weighted average number of outstanding common stock



20,910,620  (Unit: Share)As of June 30, 2022Classification

Number of stocks


Weighted value


SubtotalCarryover from the previous period


14,760,493



181



2,671,649,233Treasury stock increase


(988
)


179



(176,852
)Treasury stock increase


(20,000
)


102



(2,040,000
)Paid-in capital increase


868,000



132



114,576,000Paid-in capital increase


800,000



120



96,000,000Paid-in capital increase


819,840



94



77,064,960Paid-in capital increase


761,538



31



23,607,678Paid-in capital increase


353,869



2



707,738Days



181Weighted average number of outstanding common stock



16,471,761  51




---

GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    33.
Share based employee compensation Details of stock options granted by the Company to the executive management and employees, including the President, Vice President, CEO, and
CFO, for the six months ended June 30, 2023, are as follows:  (Unit: USD, Share)Classification

DescriptionGrant date


March 30, 2022Total number of shares to be issued


1,000,000Granting method


Stock issueExercise price (*)


4.12Available period for exercise


March 30, 2024~March 29, 2027 (*)
On March 30, 2022, the Company newly issued 1,000,000 shares of stock options with an exercise price of
KRW 5,000 (USD 4.12). A total of 1,000,000 stock options were granted by 2022 but 57,983 stock options were terminated as of June 30, 2023. The number of stock options that are outstanding is 942,017, and there were no options exercised as of
June 30, 2023. The Company calculates the exercise price in compliance with the Commercial Act and the Capital
Markets and Financial Investment Business Act. Equity-settled stock-based compensation is recognized at a fair value of equity instruments
granted, and employee benefits expense is recognized over the vesting period. At the end of the period, the Company revises its estimates of the number of options that are expected to vest on the non-market
vesting and service conditions.  34.
Subsequent events  (1)
Business Combination Agreement with Jaguar Global Growth Corporation I The Company and Jaguar Global Growth Corporation I (JGGC) entered into a definitive business combination agreement on March 2,
2023, which will lead in the Company becoming a publicly traded company. The closing of this business combination is currently underway between the Company and JGGC. As a result of the business combination, the Company and JGGC shareholders will exchange their shares for shares in a new combined company that
is named Captivision Inc. (Captivision). Captivisions ordinary shares and warrants are expected to be listed on the Nasdaq Stock Market under the proposed ticker symbols CAPT and CAPTW. On August 11, 2023, JGGC shareholders approved an amendment to extend the date by which JGGC has to consummate a business combination (the
Termination Date). The Termination Date was extended from the original date of August 15, 2023 to September 15, 2023. The amendment also allows JGGC, without another shareholder vote, to elect to extend the Termination Date on
a monthly basis until December 15, 2023, or a total of up to four months after the original Termination Date. The closing of the
business combination between the Company and JGGC is currently planned to be made and finalized on September 29, 2023.  52




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GLAAM Co., Ltd and Subsidiaries Notes to Consolidated Financial Statements    (2)
Debt to Equity Conversion The Company entered into two equity conversion agreements, dated August 1, 2023 that was effective on August 16, 2023, pursuant to
which the Company agreed to convert an aggregate of KRW 3,290,288,000 into the Companys common shares (the Debt to Equity Conversion). Upon having the conversion, number of the Companys common shares increased by 357,640
shares.  A.
Myung In Co., Ltd. The Company and Myung In Co. Ltd. Entered into an equity conversion agreement dated August 1, 2023 that took effect on August 16,
2023 (the Myung In Equity Conversion Agreement). The major terms of the Myun In Equity Conversion Agreement are as follows:  I.
Agreement date: August 1, 2023  II.
Effective date: August 16, 2023  III.
Equity amount: KRW 1,575,224,000  IV.
Issuing price at KRW 9,200  V.
Number of shares issued: 171,220 shares  B.
Jung Ho Seo The Company and Jung Ho Seo entered into an equity conversion agreement dated August 1, 2023 that took effect on August 16, 2023
(the Seo Equity Conversion Agreement). The major terms of the Seo Equity Conversion Agreement are as follows:  I.
Agreement date: August 1, 2023  II.
Effective date: August 16, 2023  III.
Equity amount: KRW 1,715,064,000  IV.
Issuing price at KRW 9,200  V.
Number of shares issued: 186,420 shares  (3)
Convertible bond purchase agreement On March 23, 2023, the Company issued a convertible bond (CB) to Charm Savings Bank in an aggregate principal amount of KRW
2,500,000,000, with interest accruing at an annual of 10% and maturing on March 24, 2024. On August 21, 2023, Charm Savings Bank
(CB holder) and Bluming Innovation Co., Ltd (Purchaser) executed a Convertible Bond Purchase Agreement for the sale and transfer of a convertible bond with an aggregate principal amount of KRW 2,500,000,000 to the Purchaser.  53