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

KLab Inc. reported a sharp decline in third‑quarter operating performance for fiscal year 2023, with revenue falling to ¥8.36 billion from ¥12.51 billion in the same period of FY2022, a 33.2% drop. Operating income turned into a loss of ¥731 million versus a ¥570 million loss previously, while ordinary income swung to a ¥454 million loss from a ¥195 million profit. Net income deteriorated further, reaching a ¥592 million loss compared with a ¥307 million loss in FY2022. Comprehensive income also worsened, falling to ¥504 million loss from a ¥373 million loss. The company’s equity ratio improved modestly to 65.2% from 62.9%, driven by a reduction in total assets and liabilities, yet shareholders’ equity declined to ¥12.67 billion from ¥13.15 billion.

The financial statements cover Japan‑based operations under Japanese GAAP, covering the first nine months of FY2023 (January 1–September 30). No significant changes in subsidiaries or accounting estimates were noted, though a new fair‑value measurement guidance was adopted. Segment analysis shows the game business remains the primary revenue driver, but blockchain‑related activities contributed a smaller portion of total sales. No dividends were declared for FY2023, and the company refrained from providing a full‑year forecast due to forecasting difficulties. The report is based on consolidated financial statements, with no audit by external accountants, and includes detailed notes on special accounting treatments and equity changes.