Notice Regarding Recognition of Non-operating Expenses, Extraordinary Losses and Adjustments to Income Taxes in Consolidated Financial Statements

Key Points of the Financial Results

In the consolidated financial statements for the fourth quarter of the fiscal year ending September 2026, share issuance costs of 26 million yen were recorded as non-operating expenses. Extraordinary losses included impairment losses totaling 46 million yen (15 million yen for brick-and-mortar stores and 31 million yen for goodwill of crafty), an inventory valuation loss of 12 million yen, and a provision for doubtful accounts of 3 million yen. A write-down of deferred tax assets of 29 million yen was also recorded. These items were reflected in the financial summary and separate explanatory materials on variances between actual results and full-year forecasts for the fiscal year ending September 2026 were published.

Outlook and Impact

With a continued significant decline in trading card market prices, prospects for recovery of profitability at physical stores and crafts remain uncertain, leading to a cautious assessment of recoverability of deferred tax assets. As a result, consolidated forecasts for the fiscal year ending December 2027 anticipate an operating loss of 613 million yen and a net loss attributable to owners of the parent of 634 million yen.