Notice Regarding Recognition of Operating Loss, Non-operating Expenses and Extraordinary Losses in Consolidated Results and Differences from Consolidated Earnings Forecast

Summary of Performance

This announcement discloses details of the variances between consolidated results and the current period forecast for the fiscal year ending August 2026. Revenue was 2,603 million yen versus the forecast of 2,222 million yen, exceeding the forecast by 381 million yen. Conversely, operating loss was -3,088 million yen versus the forecast of -2,143 million yen, resulting in an expanded loss. The primary causes were the recording of 881 million yen in allowance for doubtful accounts related to the investment and lending business and significant disposal and impairment losses associated with crypto assets.

Crypto Asset-Related Matters and Future Policy

The Group resolved to fully withdraw from the crypto asset dealing business and completed the sale and disposal of held crypto assets by the end of August 2026. Most of the crypto assets held at the end of the third quarter had low marketability, and disposal results were below the fiscal year-end valuation. As a result, disposal and impairment losses related to crypto assets were recorded, materially impacting ordinary income and net income. Going forward, management will concentrate resources on stable, fiat-currency-based revenue. The consolidated earnings forecast for the fiscal year ending August 2027 is provided in separate materials.