Notice Concerning Non-Operating Income and Extraordinary Loss

KLab Inc. recorded significant non-operating income and extraordinary losses during the fourth quarter of the fiscal year ending December 31, 2014. These financial adjustments reflect the company’s performance and asset valuation within the Japanese mobile gaming sector during the 2014 calendar year. The disclosure highlights the impact of currency fluctuations and internal asset assessments on the firm's consolidated financial statements.

The company recognized 288 million yen in non-operating income, a figure driven primarily by 231 million yen in foreign exchange gains. These gains resulted from currency valuations conducted at the end of the fourth quarter. While these figures contribute positively to the bottom line, the final totals remain subject to volatility based on shifting exchange rates. This highlights the sensitivity of the company’s financial position to international market conditions and currency movements.

Simultaneously, an extraordinary loss of 670 million yen was posted for the same period. The vast majority of this loss, totaling 607 million yen, stems from impairment losses related to software assets within the company’s gaming operations. This substantial write-down suggests a reassessment of the future profitability or carrying value of specific titles or technologies in the KLab portfolio. Despite these specific financial entries, the company maintains that any material changes to the full-year earnings forecast will be disclosed in accordance with Tokyo Stock Exchange standards as they arise.