Somagen announced on the 30th a plan to reduce its capital surplus (share premium) in order to offset accumulated deficits and improve its financial structure. Following a board resolution, the company decided to reduce capital surplus by 75 million dollars (USD 75,000,000) to offset the deficit and transfer it to retained earnings.

Looking at specific financial indicators, capital surplus before offset stood at 78,568,970 dollars, while the deficit amounted to 61,328,184 dollars. As a result of this measure, the post-offset capital surplus balance will be reduced to 3,568,970 dollars.

The company explained that this measure constitutes an inter-equity item transfer (bookkeeping account transfer) within the separate financial statements. Therefore, there will be no changes to the actual capital stock, total number of issued shares, or total capital.

Somagen is a corporation incorporated in the State of Delaware, USA, and followed the procedure of transferring capital surplus exceeding the total par value to retained earnings in accordance with Section 244(a)(4) of the Delaware General Corporation Law. This was lawfully implemented through a board resolution alone, without requiring a shareholders' meeting resolution, and the legal effective date is June 30, 2026.

Meanwhile, the 75 million dollar reduction amount represents a significant financial change equivalent to 10% or more of the company's equity (17,929,292 dollars) based on the consolidated financial statements as of the end of 2025.