Summary of Financial Results for Second Quarter (First Half) of Fiscal Year Ended December 31, 2025: Japan

KLab Inc. experienced significant financial losses in the first half of FY2025 (January 1 to June 30, 2025), with a net loss attributable to owners of parent of 4,748 million yen, a substantial increase from the 1,341 million yen loss in the first half of FY2024.

Revenue for the first half of FY2025 decreased by 12.9% to 3,161 million yen, down from 3,629 million yen in the same period of FY2024.

The company recorded a significant impairment loss of 4,426,697 thousand yen on software in progress within its Game Business segment during the first half of FY2025.

KLab Inc. resolved to sell all shares of its subsidiary, GlobalGear Co. Ltd., to Sun* Inc., with the share transfer executed on July 1, 2025, as part of a growth strategy focused on mobile online games.

The company's market capitalization remains below the Tokyo Stock Exchange's Prime Market listing maintenance criteria due to four consecutive years of losses, as disclosed on March 28, 2025.

KLab Inc. plans to issue new stock acquisition rights (21st and 22nd series) to directors and employees in August 2025, with exercise conditions tied to revenue targets and market capitalization thresholds.

The statutory effective tax rate for deferred tax calculations changed from 30.62% to 31.52% for temporary differences expected to resolve from fiscal years beginning on or after January 1, 2027, due to a new special defense corporation tax.