Financial Summary for the First Quarter of the Fiscal Year Ending May 2027 [Japanese GAAP] (Consolidated)

Performance Overview

For the consolidated cumulative first quarter, net sales were 864 million yen (up 79.1% year-over-year); however, losses continued with an operating loss of 596 million yen, an ordinary loss of 611 million yen, and a quarterly net loss attributable to owners of parent of 631 million yen. The core online game business showed solid growth with net sales of 673 million yen, while the entertainment business recorded zero sales, falling below the prior-year result of 45 million yen. Going forward, the Company plans to advance external strategies including external alliances, M&A, and capital alliances, alongside measures to reduce costs and improve profitability.

Financial Position and Outlook

At the end of the first quarter, total assets amounted to 6,673 million yen, net assets were 5,876 million yen, and the equity ratio was 88.1%. However, there are material events casting significant doubt on the going concern assumption, and there are significant concerns regarding cash flow. Consolidated earnings forecasts for the fiscal year ending May 2027 are TBD and will be announced once reasonable forecasts can be prepared. Changes in asset composition were also observed, such as increases in goodwill due to the establishment of and additions to consolidated subsidiaries.