Notice Regarding Acquisition and Cancellation of All Series 22 Stock Options (Paid Stock Options)

Overview of Acquisition and Cancellation of Stock Options

DataSection Inc. acquired without consideration 6,312 Series 22 stock options (631,200 shares) issued on July 10, 2025, at a price of 1,344 yen per unit, totaling 8,483,328 yen, and canceled them on the same day. The acquisition targets were 5,260 units (526,000 shares) held by three directors and 1,052 units (105,200 shares) held by two executive officers. After cancellation, no stock options remain outstanding.

Background and Future Outlook

These stock options were issued to promote medium- to long-term business growth and increase corporate value; however, the consolidated operating income in the revised earnings guidance for the fiscal year ending March 2026 is expected to fall below targets. Accordingly, all allocated officers expressed their intention to forfeit. This has reduced stock compensation expenses by 818 million yen, reflected in the revised earnings guidance. The officers’ commitment to management remains unchanged, and new incentive plans are being considered to strengthen commitment.