Morpho,Inc.

Under Vision2027, the Group has pursued the development of high-value-added solutions in the smart devices, automotive/mobility, and DX fields, but sales and profits declined due to the global surge in semiconductor prices. The Group continued to restrain new smart-device licenses, address the lengthening of commissioned development projects in the automotive field, develop new infrastructure opportunities in DX, and conduct R&D on new products using camera-based 3D imaging and VLM technology. During the interim consolidated accounting period, revenue was ¥1,152.127 million, down 24.8% year on year; operating loss was ¥539.470 million, ordinary loss was ¥464.024 million, and interim net loss attributable to owners of the parent was ¥681.953 million. Total assets were ¥3,456.729 million, net assets were ¥2,946.844 million, and cash and cash equivalents at the end of the period were ¥2,125.123 million. Cash flows from operating, investing, and financing activities were negative ¥229.589 million, negative ¥160.422 million, and negative ¥80.203 million, respectively. As a material contract, the Company decided, by a board resolution dated 12 December 2025, to absorb Morpho AI Solutions through a merger, which was completed on 1 April 2026.