Tego Science said Tuesday that its sales hit 8.6 billion won ($7.9 million) last year, a 3.6 percent increase from 2016.

Despite a rise in total sales, the company suffered some setbacks regarding its operating profit and marked a net loss. The company registered an operating profit of 2 billion won, down 12.7 percent 2016, and recorded a net loss of 6.3 billion won, a drastic 932.1 percent decrease.

Explaining the reason for its massive loss, the company said the net loss was a mere accounting number and did not result in an actual loss.

“Due to the rise in share value, the company had to issue convertible bonds of 16 billion won last year, which resulted in a valuation loss on derivatives of 8.1 billion won,” a company official said. “However, this is an accounting assessment that does not result in cash outflow and has no impact on actual business operations.”

The company finished converting all convertible bonds issued in 2016, last month. Thus, losses on valuation of derivative products will no longer occur, and profitability is expected to improve in the second quarter, the official added.

Tego Science plans to make its second leap from its new headquarters in Magok Industrial Park, southwestern Seoul. Commercialization of Rosmir, a self-originating wrinkle-reducing cell treatment agent, is going smoothly, and the company also applied for phase 3 clinical trials for TPX-114, a rotator-cuff tear rejuvenation cell therapy, last Wednesday.

“In 2018, we are preparing to make our second leap with the opening the new headquarters in Magok,” the company official said. “We expect that sales growth will accelerate with the successful entry of Rosmir into the market.”

Tego Science also plans to develop various pipeline developments for mid- to long-term growth engines, he added.