Notice Regarding the Recognition of an Extraordinary Loss in Connection with the Absorption-Type Merger of a Wholly Owned Subsidiary | MEDLEY,INC. (4480) timely disclosure

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39Recurring

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Direction

Mixed performance

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Scale

218

¥ million

Wording

Definitive

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Recognition of a special loss associated with the absorption-type merger of a wholly owned subsidiary

Subject Entity

MEDLEY,INC.; 株式会社ASFON TRUST NETWORK (ATN)

Occurrence1 April 2026 (effective date of the absorption-type merger)

This disclosure08/13/2026

Cause

A loss on retirement of shares held in the merger arose in connection with the absorption-type merger.

Amount of Impact on Business Performance

¥218 million (loss on retirement of shares held in the merger; special loss)

Accounting period in which recognized

Second quarter (interim period) of the fiscal year ending December 2026, in the non-consolidated financial statements

Outlook

As the loss on retirement of shares held in the merger will be eliminated in the consolidated financial statements, it will have no impact on consolidated profit or loss.

Event that occurred
Item	Details
Event name	Recognition of a special loss associated with the absorption-type merger of a wholly owned subsidiary
Date of occurrence	1 April 2026 (effective date of the absorption-type merger)
Subject Entity	MEDLEY,INC.; 株式会社ASFON TRUST NETWORK (ATN)
Cause	A loss on retirement of shares held in the merger arose in connection with the absorption-type merger.
Amount of Impact on Business Performance	¥218 million (loss on retirement of shares held in the merger; special loss)
Accounting period in which recognized	Second quarter (interim period) of the fiscal year ending December 2026, in the non-consolidated financial statements
Outlook	As the loss on retirement of shares held in the merger will be eliminated in the consolidated financial statements, it will have no impact on consolidated profit or loss.

Items this document does not state (18)

Date recognized / date notice receivedTarget Locations / ProductsImpact on Earnings ForecastType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changePlanned follow-up disclosure

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

A loss on retirement of shares held in the merger arose in connection with the absorption-type merger with ATN effective 1 April 2026.

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