The BioMed: "Disclaimer of Opinion on Semiannual Report Due to Subsidiary's Failure to Provide Documents"

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The BioMed issued an official statement on its website on August 14 regarding the "disclaimer of opinion" it received from its external auditor during the review of its semiannual report.

In the statement, the company explained, "The direct cause of this 'disclaimer of opinion' was the inability to obtain key financial and business documents from Cheonggyo, which had been a subsidiary until the contract was terminated on July 15, 2025. This limitation hindered the verification of the consolidated financial statements." The company added, "There were no issues with our separate financial statements, and we have responded diligently to the auditor's requests, maintaining smooth communication throughout the process."

Previously, in December of last year, The BioMed had signed a stock purchase agreement to acquire Cheonggyo, an education business operator, as a subsidiary. However, last month, a breach of contract by the seller led to the termination of the agreement, and Cheonggyo was excluded from The BioMed's subsidiaries.

The BioMed stated that, even after the contract termination, it continuously sought to secure the necessary documents requested by the external auditor, such as materials for the prior period's re-audit. However, due to differing legal interpretations between the two companies and disagreements over the necessity of preparing consolidated financial statements, it was ultimately unable to obtain the documents.

Lee Jaesung, CEO of The BioMed, said, "We plan to resolve this issue through close consultation with the external auditor during the full-year closing and audit process, and we will fundamentally improve our procedures for securing subsidiary-related documents to prevent a recurrence of this problem. I sincerely apologize to our shareholders for the concern this has caused."

He added, "Going forward, all executives and employees will prioritize restoring the company's transparency and trust."

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