Summary of Financial Results for First Quarter of Fiscal Year Ended December 31, 2022

KLab Inc. reported a first-quarter operating loss of ¥281 million, down from a ¥505 million loss in the same period of FY2021. Revenue fell 35.7% to ¥4.11 billion, driven by a decline in game-business sales; the company recorded a ¥1.54 billion impairment loss on software, eliminating the prior year’s extraordinary loss and reducing net loss to ¥177 million. Comprehensive income for the quarter was a ¥224 million loss, reflecting foreign-exchange gains and valuation adjustments on available-for-sale securities. Total assets stood at ¥18.72 billion, with shareholders’ equity of ¥12.63 billion and an equity ratio of 67.4%. No dividends were declared for FY2022, and the company withheld a forecast of annual operating performance due to forecasting difficulty.

The financial statements are prepared under Japanese GAAP and include a detailed segment analysis. The game business remains the sole reported segment, with revenue from paid customers at ¥3.44 billion and contract-based revenue at ¥1.57 billion, yielding a gross profit of ¥608 million. The company applied the Accounting Standard for Revenue Recognition from the beginning of FY2022, shifting revenue recognition to a period-of-use basis for in-game currency and a one-time method for license grants, which increased revenue by ¥9 million and improved operating loss by the same amount. The change had no impact on retained earnings or prior-year figures.

The quarterly report covers Japan only, covering January to March 2022, and is based on consolidated financial statements with no restatements or significant accounting changes beyond the revenue-recognition policy shift.