Aiming Inc. Q1 2020 Quarterly Report

Aiming Inc.’s first-quarter report for 2020 outlines the company’s financial performance and strategic initiatives within the Japanese mobile online gaming market. The primary objective of the report is to disclose the firm’s fiscal results for the period ending March 31, 2020, while addressing ongoing concerns regarding its ability to continue as a going concern due to recurring operating and net losses.

Financial results for the first quarter indicate a significant downturn compared to the previous year. Net sales reached 1,116 million yen, representing a 30.2% decrease year-over-year. The company reported an operating loss of 146 million yen and a net loss of 155 million yen, a sharp decline from the operating and net profits recorded in the same period of 2019. This performance was attributed to declining revenues from existing titles such as "Logres of Swords and Sorcery: Goddess of Ancient" and "CARAVAN STORIES," alongside the closure of multiple smaller titles.

To address these challenges, the company is focusing on three core pillars: strengthening its business foundation by concentrating resources on the co-development of "Dragon Quest Tact," optimizing personnel costs through studio restructuring, and stabilizing its financial position. The latter has been supported by the issuance and exercise of the seventh series of stock acquisition rights, which provided 481 million yen in capital during the quarter. Despite the reported losses, management maintains that these strategic measures, including cost-cutting and resource concentration, mitigate uncertainties regarding the company’s future viability. The report, which covers the Japanese online gaming sector, was subject to a quarterly review by an independent audit firm, which found no significant issues regarding the accuracy of the financial statements.