Summary of Financial Results for First Quarter: Fiscal Year Ended December 31, 2024

KLab Inc. reported a significant Q1 2024 revenue decline of 45.3%, falling to ¥1,581 million from ¥2,891 million in the same period of 2023.

Operating losses widened to ¥658 million from a ¥308 million loss in the previous year, with net income deteriorating to a ¥1,096 million loss.

The company raised approximately ¥2.94 billion in net proceeds through the issuance of 19th Stock Acquisition Rights and a 1st series unsecured bond to address liquidity concerns.

Management is actively cutting personnel and outsourcing costs while pursuing asset sales to mitigate ongoing operating deficits and address doubts regarding the company's ongoing-concern status.

The balance sheet shows a decline in total assets to ¥16,818 million and a reduction in the equity ratio to 62.3%, alongside an increase in short-term debt obligations.

KLab has excluded its blockchain-related segment from consolidation following a partial divestiture of BLOCKSMITH&Co., while continuing to focus on large-scale mobile and hybrid casual game development.