Allied Architects,Inc.

Allied Architects, Inc. launched a new business, the Asset AX Business, to support the transition to an on-chain economy using crypto assets and blockchain technology, while maintaining its existing Marketing AX Support Business as its core business. The Asset AX Business comprises 3 areas: 1) on-chain investment, 2) on-chain operations and implementation support, and 3) on-chain business development. It is a reportable segment established from the first quarter of the current fiscal year, changing the Company’s structure from a single segment to 2 segments: the Marketing AX Business and the Asset AX Business. The Asset AX Business is positioned as being in the business foundation-building phase, and start-up costs, including personnel expenses and outsourcing expenses, were incurred. For the interim cumulative period, net sales changed from the previous period due to contributions from the Marketing AX Business and the Asset AX Business. Cash and cash equivalents at the end of the interim period were ¥1,083,180 thousand, total assets were ¥3,182,403 thousand, liabilities were ¥1,023,344 thousand, and net assets were ¥2,159,058 thousand. The carrying amount of crypto assets on the balance sheet was ¥463,684 thousand, with major holdings including USDC, USDT, SOL, ETH, BTC and apyUSD. The Company also made disclosures concerning the exercise of stock acquisition rights and its shareholder composition.