Notice Regarding Changes in Use of Funds from Capital Increase by Third-Party Allotment and Timing of Planned Expenditures

Change in use of funds

Through this third-party allotment, the use of funds has been changed to cover quality-issue response costs, and 103 million yen has been allocated for pre-ordering long-lead-time components and trial production modules for the toilet cleaning robot business. Additionally, 39 million yen has been recorded as expenses for the performance enhancement program, with expenditures expected from October 2026 to February 2027. Of the 252 million yen reserved for procuring existing model units, usage is planned for August to December. The impact on the company’s consolidated results has not been disclosed and is under review.

Upcoming schedule and considerations

The completion timing for the performance enhancement program is planned for December 2026. Payments are expected to be made by February 2027. Pre-ordering of long-lead-time components is tied to funding utilization, and a portion of funding has been changed through lending to IWR Co. Although the use of the 9th stock acquisition rights is being considered, this would be funding through exercise of rights, and timing is uncertain. Further disclosures will be provided as appropriate.