Cash-in-frontloaded model based on annual contract prepayments

「Funds generated from operating activities during the interim accounting period amounted to ¥112.367 million (income of ¥133.474 million in the same period of the previous year). This was mainly attributable to cash inflows including interim profit before income taxes of ¥103.292 million, an increase in deferred revenue of ¥61.910 million, and an increase in accounts payable of ¥59.091 million, as well as cash outflows including an increase in inventories of ¥101.247 million and a decrease in consumption taxes payable and other liabilities of ¥21.713 million.」

「This was mainly due to cash inflows including an increase in deferred revenue of ¥137.117 million (¥36.813 million in the same period of the previous year) and profit before income taxes of ¥92.700 million (a loss before income taxes of ¥34.000 million in the same period of the previous year), among other factors.」

「This was due to an increase in deferred revenue resulting from steady sales performance (up ¥64.301 million from the end of the previous fiscal year), an increase in accounts payable (up ¥42.686 million), and an increase in income taxes payable and other liabilities (up ¥12.000 million), among other factors.」

「An increase in deferred revenue resulting from the increased number of Buddycom users (up ¥41.913 million from the end of the previous fiscal year)」

「This was mainly due to an increase in deferred revenue resulting from steady sales performance (up ¥53.570 million from the end of the previous fiscal year), an increase in the current portion of long-term borrowings (up ¥51.132 million), an increase in long-term borrowings (up ¥43.340 million), and an increase in accounts payable (up ¥33.590 million), among other factors.」

「This was due to an increase in deferred revenue resulting from steady sales performance (up ¥43.631 million from the end of the previous fiscal year), an increase in the current portion of long-term borrowings (up ¥53.331 million), and an increase in long-term borrowings (up ¥46.589 million), among other factors.」

「This was due to an increase in deferred revenue resulting from steady sales performance (up ¥13.940 million from the end of the previous fiscal year), an increase in accounts payable (up ¥15.939 million), an increase in current portion of long-term borrowings (up ¥55.530 million), and an increase in long-term borrowings (up ¥49.838 million), among other factors.」

「This was mainly due to an increase in deferred revenue resulting from an increase in the number of Buddycom users, which increased by ¥45,221 thousand from the end of the previous fiscal year, and an increase in accounts payable and other current liabilities resulting from relocation-related costs associated with the relocation of the head office, which increased by ¥43,614 thousand from the end of the previous fiscal year, among other factors.」

「This was mainly due to an increase in deferred revenue resulting from steady revenue performance, which increased by ¥46,932 thousand from the end of the previous fiscal year, among other factors.」

「This was mainly due to an increase in deferred revenue resulting from steady revenue performance, which increased by ¥32,314 thousand from the end of the previous fiscal year, among other factors.」

「This was mainly due to an increase in deferred revenue resulting from steady revenue performance, which increased by ¥24,326 thousand from the end of the previous fiscal year, among other factors.」

「When Buddycom is contracted for one year, the usage fee is generally received in a lump sum when use begins. Revenue, however, is recognized in monthly installments in line with the months of use. As a result, cash flow increases ahead of revenue, making this a business model that facilitates the maintenance of a sound financial position.」