Raising Growth Capital Through Internally Generated Funds, Borrowings and Equity Financing

「第三者割当増資により財務基盤も強化され、自己資本比率は70.6%に上昇。」

「On 1 December 2025, we received payment for a third-party allotment from NAVER Corporation, increasing share capital and capital reserves by ¥999.935 million each. On 9 April 2026, we also received payment for a third-party allotment from KADOKAWA, increasing share capital and capital reserves by ¥1,106.000 million each.」

「Cash provided by financing activities was ¥1,244.811 million, compared with cash used of ¥38.140 million in the previous fiscal year. This was primarily attributable to ¥700.000 million in proceeds from long-term borrowings, ¥497.323 million in proceeds from the issuance of shares and ¥144.988 million in proceeds from the issuance of shares through the exercise of share acquisition rights, among other factors.」

「Cash provided by financing activities during the six-month interim consolidated accounting period was ¥575.266 million. This was primarily attributable to ¥497.323 million in proceeds from the issuance of shares, among other factors.」

「We plan to use our cash on hand for investments to accelerate growth in existing businesses, including product development and personnel recruitment. Additional financing will therefore be required to promote new initiatives using generative AI technology under this capital and business alliance. Accordingly, we decided to raise funds through a third-party allotment.」

「Cash used in financing activities during the six-month period ended this second quarter was ¥43.303 million. This was primarily attributable to ¥36.766 million in proceeds from the issuance of shares through the exercise of share acquisition rights, offset by ¥80.000 million in repayments of long-term borrowings, among other factors.」

「The increase resulted from the exercise of share acquisition rights (stock options).」

「To address temporary funding shortfalls, we have established a ¥1,200 million overdraft facility with a financial institution, creating a framework for securing the funds required in a timely manner.」

「We listed our shares on the Tokyo Stock Exchange Growth Market on 21 December 2022. In connection with the listing, the issue of 210,000 new shares through a public offering for consideration, using the book-building method, with 20 December 2022 as the payment date, increased share capital and capital surplus by ¥32.844 million each. In addition, the issue of 191,800 new shares through a paid-in capital increase by third-party allotment, related to an offering through an over-allotment, with 23 January 2023 as the payment date, increased share capital and capital surplus by ¥29.997 million each. Furthermore, the exercise of share acquisition rights (stock options) during the nine-month period ended this third quarter increased share capital and capital surplus by ¥8.194 million each. As a result, at the end of the third quarter accounting period, share capital amounted to ¥171.035 million and capital surplus to ¥2,633.139 million.」

「Cash provided by financing activities during the six-month period ended this second quarter was ¥139.367 million. This was primarily attributable to ¥125.683 million in proceeds from the issuance of shares in connection with the listing on the Tokyo Stock Exchange Growth Market, among other factors.」

「Our basic policy is to raise the funds we require through internal funds, borrowings from financial institutions and equity financing, taking into consideration our financial position, the use of funds and other factors.」