Financial

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

Published by KLab

Summary

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.

From the report

Summary of Financial Results for Third Quarter of Fiscal Year Ended December 31, 2023 (Japanese GAAP) (Consolidated) evail. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Name of listed company: KLab Inc. Securities code: 3656 Representative: [Name] Hidekatsu Morita Contact: [Name] Kazuyuki Takata Scheduled filing date for securities report: Scheduled date for dividends payment: Supplementary information for quarterly results: Information meeting for quarterly financial report: November 7, 2023 Stock exchange listing: Tokyo Stock Exchange Prime Market URL: https://www.klab.com/en/ [Title] Representative Director, President and CEO [Title] Senior Managing Director TEL: +81-3-5771-1100 November 7, 2023 － Yes https://www.klab.com/en/ir/library/ Yes *Institutional investors and analysts only (Amounts of less than one million yen are rounded down unless otherwise stated.) 1. Consolidated Operating Performance for Third Quarter of FY2023 (January 1, 2023 – September 30, 2023) (1) Consolidated Operating Results (year-to-date) (% represents rate of increase or decrease over same period of previous fiscal year) Revenue Operating income Ordinary income Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % Third quarter of FY2023 8,355 (33.2) (731) － (454) － (591) － Third quarter of FY2022 12,511 (33.1) (570) － 195 － (307) － Note: Comprehensive income Third quarter of FY2023: (503) million yen [－] Note: Comprehensive income Third quarter of FY2022: (373) million yen [－]

% Million yen % Million yen % Third quarter of FY2023 8,355 (33.2) (731) － (454) － (591) － Third quarter of FY2022 12,511 (33.1) (570) － 195 － (307) － Note: Comprehensive income Third quarter of FY2023: (503) million yen [－] Note: Comprehensive income Third quarter of FY2022: (373) million yen [－] Net income Diluted net income per share per share Yen Yen Third quarter of FY2023 (14.63) － Third quarter of FY2022 (8.01) － (2) Consolidated Financial Status Total assets Net assets Equity ratio Million yen Million yen % Third quarter of FY2023 19,343 12,666 65.2 FY2022 20,859 13,153 62.9 Reference: Shareholders’ equity Third quarter of FY2023: 12,619 million yen FY2022: 13,123 million yen 2. Dividends Annual dividends End of Q1 End of Q2 End of Q3 Year End Total Yen Yen Yen Yen Yen FY2022 ― 0.00 ― 0.00 0.00 FY2023 ― 0.00 ― FY2023 (Forecast) 0.00 0.00 Note: Revisions to the most recently announced dividend forecast: No 3. Consolidated Operating Performance Forecasts for FY2023 (January 1, 2023 – December 31, 2023) The consolidated operating performance forecasts for FY2023 will not be disclosed due to difficulty in reasonably calculating forecasts. It is company policy to disclose calculations as soon as possible based on future progress.

■ Explanatory Notes (1) Changes to major subsidiaries during the first nine months of FY2023: No (2) Application of special accounting treatment: Yes Note: Refer to “Consolidated Financial Statements and Related Notes” in section “(3) Notes Related to Consolidated Financial Statements (Application of Special Accounting Treatment Specific to Preparation of Quarterly Consolidated Financial Statements)” on page 5 of Supporting Information. (3) Changes to accounting policies, estimates, and restatements ① Changes to accounting policies due to revision of accounting standards: Yes ② Changes other than ①: No ③ Changes to accounting estimates: No ④ Restatements: No (4) Number of outstanding shares (common shares) ① Period end outstanding shares Third quarter of 41,092,200 shares FY2022 41,092,200 shares (including treasury shares) FY2023 ② Period end treasury shares Third quarter of 641,531 shares FY2022 641,531 shares FY2023 ③ Average outstanding shares Third quarter of 40,450,669 shares Third quarter of 38,338,164 shares during the period FY2023 FY2022 ■ Financial statements are not subject to audits by certified public accountants or audit firms. ■ Note regarding the appropriate usage of forecasts and other special instructions (Notes on forward-looking statements) The earnings forecast and other forward-looking statements contained in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual results may differ materially from these forecasts for various of reasons.

ents) The earnings forecast and other forward-looking statements contained in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual results may differ materially from these forecasts for various of reasons. (Method of obtaining supplementary materials on quarterly financial results) For an overview of the financial results, please refer to the quarterly financial results presentation slides posted on the Company website. https://www.klab.com/en/ir/library/presentations/

Supporting Information INDEX Consolidated Financial Statements and Related Notes 2 (1) Consolidated Balance Sheets 2 (2) Consolidated Statements of Income and Comprehensive Income 3 (3) Notes Related to Consolidated Financial Statements 5 (Notes Related to Ongoing Concern Assumptions) 5 (Notes in Case of Significant Change in Shareholders’ Equity) 5 (Application of Special Accounting Treatment Specific to Preparation of Quarterly Consolidated Financial Statements) 5 (Change in Accounting Policy) 5 (Segment Information and Other Information) 6

Consolidated Financial Statements and Related Notes <thead> <th colspan="3">(1) Consolidated Balance Sheets</th> <th>FY2022 (Dec. 31, 2022)</th> <th>(In thousands of yen) Third quarter of FY2023 (Sept. 30, 2023)</th> </thead> <td colspan="3">Assets</td> <td></td> <td></td> <td></td> <td colspan="2">Current assets</td> <td></td> <td></td> <td></td> <td></td> <td>Cash and deposits</td> <td>6,017,468</td> <td>3,140,536</td> <td></td> <td></td> <td>Accounts receivable</td> <td>1,768,227</td> <td>1,618,707</td> <td></td> <td></td> <td>Income taxes receivable</td> <td>10,274</td> <td>－</td> <td></td> <td></td> <td>Other</td> <td>2,576,297</td> <td>2,255,019</td> <td></td> <td></td> <td>Allowance for doubtful accounts</td> <td>(28,649)</td> <td>(39,720)</td> <td></td> <td></td> <td>Total current assets</td> <td>10,343,618</td> <td>6,974,543</td> <td></td> <td colspan="2">Non-current assets</td> <td></td> <td></td> <td></td> <td></td> <td>Property, plant, and equipment</td> <td>216,210</td> <td>193,273</td> <td></td> <td></td> <td>Intangible assets</td> <td></td> <td></td> <td></td> <td></td> <td>Goodwill</td> <td>733,161</td> <td>666,510</td> <td></td> <td></td> <td>Software</td> <td>55,620</td> <td>949,587</td> <td></td> <td></td> <td>Software in progress</td> <td>4,023,684</td> <td>5,062,093</td> <td></td> <td></td> <td>Other</td> <td>672</td> <td>2,973</td> <td></td> <td></td> <td>Total intangible assets</td> <td>4,813,138</td> <td>6,681,166</td> <td></td> <td></td> <td>Investments and other assets</td> <td></td> <td></td> <td></td> <td></td> <td>Investment securities</td> <td>2,893,484</td> <td>3,214,668</td>

Pages: 9
Words: 2,200
Format: PDF
Type: Financial

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