Establishment of an Algorithm Research Framework

「Total R&D expenses for the six-month period were ¥5.488 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「This was mainly due to increases of ¥8,848 thousand in software under development and ¥4,693 thousand in software.」

「Total R&D expenses for the six-month period were ¥24.198 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「Total R&D expenses for the fiscal year were ¥36.211 million.」

「Total R&D expenses for the cumulative third quarter were ¥25.437 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「Total R&D expenses for the cumulative second quarter were ¥16.681 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「Total R&D expenses for the cumulative first quarter were ¥6.729 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「The Group’s R&D activities consist of conducting research, comparisons and analysis to improve the usability of the ASP services it provides to customers, and carrying out R&D to improve their functionality. Total R&D expenses for the fiscal year were ¥24.738 million.」

「Total R&D expenses for the cumulative third quarter were ¥17.353 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「Total R&D expenses for the cumulative second quarter were ¥11.147 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「Total R&D expenses for the cumulative first quarter were ¥7.504 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「Total R&D expenses for the fiscal year were ¥21.437 million.」

「Total R&D expenses for the cumulative third quarter were ¥16.350 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「Total R&D expenses for the cumulative second quarter were ¥10.676 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「Total R&D expenses for the cumulative first quarter were ¥5.420 million. These expenses were incurred mainly for R&D to improve the functionality of the ASP services the Group provides to customers.」

「The proceeds raised by the Company through the public offering on 30 October 2018 are being allocated to capital increases at subsidiaries, establishment of an algorithm research framework, ASP functionality improvements, cloud server costs, recruitment expenses, investment in an accounting system, head office expansion, and advertising and promotional expenses.」

「⑩ Use of proceeds: capital increases at subsidiaries, rebuilding of the algorithm research framework and other purposes, and working capital for expanding the scale of operations.」

「The proceeds from the planned public offering are scheduled to be allocated to capital increases at subsidiaries, establishment of an algorithm research framework, ASP functionality improvements, cloud server costs, recruitment expenses, investment in an accounting system, head office expansion, and advertising and promotional expenses.」