Summary of Financial Results for Second Quarter of Fiscal Year Ended December 31, 2023

KLab Inc. reported a sharp contraction in its first‑half operating performance for FY2023, with revenue falling 35.8 % to ¥5,369 million from ¥8,357 million in the same period of FY2022. Operating income turned into a loss of ¥573 million, compared with a ¥447 million loss in FY2022, largely due to higher cost of sales and reduced gross profit. Net income declined further, reaching a loss of ¥392 million versus a ¥343 million loss previously. The company’s equity base weakened, with shareholders’ equity dropping from ¥13,154 million to ¥12,859 million and the equity ratio falling slightly from 62.9 % to 64.1 %. Cash and cash equivalents decreased to ¥4,443 million, while current liabilities rose, reflecting a tighter liquidity position.

Geographically the results are confined to Japan, with no foreign operations reported. The fiscal year covered January 1–June 30, 2023, and the report is based on Japanese GAAP. The company disclosed no changes to major subsidiaries or accounting estimates, though it applied the Implementation Guidance on Fair Value Measurement from Q1 FY2023. No dividends were declared for FY2022 or FY2023, and the company stated that it would not provide a full-year forecast until further progress is made.

Methodologically, the figures derive from consolidated financial statements prepared under Japanese GAAP, with no external audit noted. The report includes detailed segment information, showing a decline in the Game Business revenue and an impairment loss of ¥410 million on software assets. Overall, KLab’s first‑half performance reflects a significant downturn in profitability and liquidity compared with the prior year.