Notice Regarding Recognition of Non-operating Income, Non-operating Expenses and Extraordinary Gains

Overview and Actions

During the cumulative consolidated period for Q2 of the fiscal year ending February 2027, the Group recognized 364 million yen of non-operating income due to fair value gains on crypto assets and total disposal gains of 88 million yen from sales of those assets. These items did not arise from the Group's core business activities but are the result of accounting treatments related to holding and trading crypto assets. In addition, losses on crypto asset sales of 18 million yen and 17 million yen were recorded, transaction fees related to external borrowings of 52 million yen were recorded, and 32 million yen was recorded as an extraordinary gain for the cancellation of stock acquisition rights. These items have been reflected in the previously published Financial Summary.

Impact on Shareholders and Outlook

The non-operating items reported primarily relate to valuation and sales of crypto assets and are stated to have no impact on the Company’s core business activities. If material impacts on consolidated results become apparent in the future, they will be disclosed promptly. The Company holds 3,050 ETH and holds no BTC. The occurrence of disposal gains and valuation gains has been reflected in the contents of the Financial Summary and constitutes important financial disclosure.