Financial Results for the Fiscal Year ended March 31, 2022
[Japanese GAAP] (non-consolidated)
May 12, 2022
BrightPath Biotherapeutics Co., Ltd.
Listed Market Growth, TSE
TSE Code4594
URL
https://www.brightpathbio.com/english/index.html
Representative (Title)
President & CEO(Name) Kenichi Nagai
Business
Contact(Title)(Name) IR staff(TEL) +81-3-5840-7697
Administration
Scheduled date of annual meeting of stockholders: June 23, 2022
Scheduled date of dividend payment commencement:－
Scheduled date of submission of securities report: June 24, 2022
Supplementary materials for financial statements: Yes
Briefing of financial results: Yes (for analysts and institutional investors)(Millions of yen, rounded down to the nearest million)

1. Financial results for fiscal year 2022 (April 1, 2021 – March 31, 2022)(Percentages represent changes from the same period of previous year)(1) Results of Operation
Net sales
Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Million yen

15
2

Operating income% Million yen

515.3
-77.8

Net income per
share
Yen

Ordinary income%-1,476-1,732Million yen%-1,481-1,738－－Net income－－

Million yen

Fully diluted net
Return on
Ratio ofincome pershareholders’ ordinary income
shareequityto total assets
Yen%-1,484-1,719－－Operatingmargin%%%Equity ratio

Net assets per
share

Fiscal year ended March 31, 2022
-28.55-49.3-45.5-9,579.2－
Fiscal year ended March 31, 2021
-36.14-51.4-48.1-69,188.5－(Reference) Equity in earnings (losses) of affiliated companies:
Year ended March 31, 2022: ¥－ million
Year ended March 31, 2021: ¥－ million(Note) 1.
Fully diluted net income per share is not stated as net loss was recorded for this period although there areresidual shares.

(2) Financial Position
Total assets
As of March 31, 2022
As of March 31, 2021
(Reference) Shareholders’ equity(3) Cash Flows

Net assets

Million yen

Million yen

Cash flows
from operating
activities

Cash flows
from investing
activities

Million yen

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Million yen-1,512-1,769Annual dividends per share
1Q

2Q

Yen

3Q

4Q
Yen

Annual

―
―

0.00
0.00

Yen

Yen

―
―

0.00
0.00

0.00
0.00

Yen

―

0.00

―

0.00

0.00

Yen

90.5
93.7

Cash flows
from financing
activities

Million yen

-17
-36

2. Dividends

Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
(Forecast)

%

2,771
2,531
3,749
3,537
As of March 31, 2022 2,508 million yen
As of March 31, 2021 3,511 million yen

45.40
69.10

Cash and cash
equivalents at endof period

Million yen

569
2,053

2,305
3,265

Total
Ratio ofdividends
Payout ratio dividends topaid
net assets(annual)Million yen

3. Projected financial results for fiscal year 2023 (April 1, 2022 – March 31, 2023)

―
―

%

―
―
―

%

―
―

Net sales
Million yen(Percentages represent changes from the same period of previous year)
Net income
Operating income Ordinary income
Net income
per share% Million yen% Million yen% Million yen

Yen%

Full year5-67.6 -1,635-29.63－ -1,635－ -1,637－(Note) 1. The Company manages business results on an annual basis, and therefore only the full-year financial forecasts
are disclosed.

[Notes](1) Changes in significant accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to revisions of accounting standards, etc.
: Yes2) Changes in accounting policies due to other reasons than above 1): None3) Changes in accounting estimates: None4) Restatements: None(Note) For details, please refer to “3. Financial Statements and Primary Notes (5) Notes to Financial Statements (Changes
in accounting policies)” on page 15 of the attachment.

(2) Number of shares outstanding (common stock)1) Number of shares outstanding at theend of the period (including treasury
stock)
2) Number of shares of treasury stock at
the end of the period
3) Average number of shares during theperiodAs of March 31,2022
As of March 31,
2022
Year ended
March 31, 2022

55,253,100 shares― shares51,993,131 shares

As of March 31,
2021
As of March 31,
2021
Year ended
March 31, 2021

50,817,500 shares― shares47,581,918 shares* These financial results are outside the scope of audits by a certified public accountant or an audit
corporation.
* Explanations regarding appropriate use of forecasts and projections of financial results, and other specificnotes- All forecasts and projections contained in this document are based on the information available andcertain assumptions deemed reasonable by the Company at this time. They are not intended torepresent our promise to attain them as a goal. Actual results may differ substantially due to various
reasons. For details on the assumptions and conditions for forecasts and projections as well as noteson their use, please refer to “1. Overview of Operating Results, etc., (4) Future Outlook” on page 3 ofthe attachment.

Contents of the Attachment
1. Overview of Operating Results, etc. ............................................................................................................. 2(1) Overview of Operating Results for the Fiscal Year under Review ............................................................ 2(2) Overview of Financial Position for the Fiscal Year under Review ............................................................ 3(3) Overview of Cash Flows for the Fiscal Year under Review ...................................................................... 3(4) Future Outlook ........................................................................................................................................... 3(5) Significant Subsequent Events regarding Going Concern Assumptions .................................................... 7
2. Basic Stance on Choice of Accounting Standards ......................................................................................... 7
3. Financial Statements and Primary Notes ....................................................................................................... 8(1) Balance Sheets ......................................................................................................................................... 8(2) Statements of Operations ....................................................................................................................... 10(3) Statement of Changes in Net Assets ........................................................................................................ 13(4) Statements of Cash Flows ...................................................................................................................... 14(5) Notes to Financial Statements ................................................................................................................ 15(Notes on going concern assumption) ..................................................................................................... 15(Changes in accounting policies) ............................................................................................................. 15(Segment information, etc.) ..................................................................................................................... 15(Per share information) ............................................................................................................................ 16(Significant subsequent events) .............................................................................................................. 16―1―

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2022, the Japanese economy as well as the global economies
is becoming increasingly uncertain due to the prolonged global outbreak of the coronavirus disease(COVID-19) pandemic as well as geopolitical risks such as the invasion of Ukraine by Russia. On the other
hand, vaccination against COVID-19 has progressed and there are signs that restrictions on social
activities are gradually easing.
On the other hand, in the site of pharmaceutical research and development, the global trend toward
prioritizing treatment of patients with COVID-19 and the prioritized allocation of medical resources by
medical institutions to acute care and outpatient infectious diseases caused clinical trials to stagnate insome cases.
Under these circumstances, BrightPath Biotherapeutics Co., Ltd. (the “Company”) has proceeded thedevelopment of cancer immunotherapeutics (drugs that treat cancer by utilizing the immune system).
In the business for cell therapy agent, Phase I investigator-initiated clinical trials for induced pluripotent
stem cells (iPSC) derived regenerating natural killer T-cell (NKT cell) therapy*1 (iPS-NKT) created at RIKEN
are being conducted at Chiba University Hospital, and made steady progress during the current fiscal year
under review. In addition to supporting this clinical trial, we are working to improve the manufacturing
process in anticipation of the next phase clinical trial. In addition, HER2 chimeric antigen receptor T cell
(CAR-T cell) therapy*2 (BP2301), which is being co-developed with Shinshu University Hospital, is thesecond cell therapy program to enter a clinical trial at the Company, and preparations were almost
completed during the current fiscal year under review. Phase I investigator-initiated clinical trial is forecast
to start at Shinshu University during the first quarter of the fiscal year ending March 31, 2023.
In the business for antibodies, as promising targets after PD-1/PD-L1, we are developing antibodies
that inhibit the function of immune check point proteins*3 regarding the exhaustion and suppression of T
cells or antibodies that inhibit the function of immune regulators. We have been progressively presenting
pre-clinical data at international conferences in order to achieve early out-licensing of anti-CD73 antibody(BP1200), anti-CD39 antibody (BP1202), anti-TIM-3 antibody (BP1210), and anti-CD39 x anti-TIM-3
bispecificity antibody (BP1212), etc. In particular, in September 2021, our presentation on BP1200 at the2021 European Society for Medical Oncology Annual Meeting (ESMO 2021) received the Best Poster
Award, which is given to outstanding research presentations.
In the business for cancer vaccines, we have achieved proof of concept in the pre-clinical phase of ournovel platform BP1209, which delivers a fully personalized neoantigen vaccine*4 with immune checkpoint
antibodies for stronger anti-tumor effects.
On the other hand, the Phase II clinical trial of the cancer peptide vaccine GRN-1201 in combination
with the immune checkpoint inhibitory antibody pembrolizumab for non-small cell lung cancer, which has
been under development in the US, did not reach the initial target of an interim evaluation within the current
fiscal year under review due to stagnant patient enrollment in COVID-19 pandemic.
In addition, the Company received an order for clinical sample measurement in the second half of thecurrent fiscal year, which was not anticipated at the beginning of the fiscal year, resulting in a significant
increase in revenue compared to the plan at the beginning of the fiscal year. However, it is sufficiently small
compared to the scale of R&D expenses, in terms of the effect of increased profits, it is slightly above thescale of the reduction in R&D expenses due to the carrying-over of R&D activities to the next fiscal year,
which was planned at the beginning of the fiscal year.
As a result, for the fiscal year ended March 31, 2022, we recorded 15,408 thousand yen as net sales(net sales of 2,504 thousand yen in the previous fiscal year), 1,476,033 thousand yen as operating loss―2―

(operating loss of 1,732,802 thousand yen in the previous fiscal year), 1,481,945 thousand yen as ordinary
loss (ordinary loss of 1,738,636 thousand yen in the previous fiscal year), and net loss of 1,484,192
thousand yen (net loss of 1,719,634 thousand yen in the previous fiscal year).

(2) Overview of Financial Position for the Fiscal Year under Review(i) Current assets
At the end of the fiscal year under review, current assets were 2,696,050 thousand yen, a decreaseof 954,942 thousand yen from the end of the previous fiscal year. The main factors for this include a
decrease of 960,361 thousand yen due to expenditures related to research and development, etc.,
despite proceeds from the issuance of shares in cash and deposits.
(ii) Non-current assets
At the end of the fiscal year under review, non-current assets were 75,152 thousand yen, a decreaseof 23,283 thousand yen from the end of the previous fiscal year. The main factors for this include a
decrease of 23,283 thousand yen in tools, furniture and fixtures due to depreciation of researchequipment, etc.
(iii) Current liabilities
At the end of the fiscal year under review, current liabilities were 184,655 thousand yen, an increaseof 28,249 thousand yen from the end of the previous fiscal year. The main factors for this include a
decrease of 66,763 thousand yen in accounts payable – other due to recording current portion of bonds
payable of 87,500 thousand yen due to issuance of bonds, and a decrease in expenditures related toresearch and development, etc. compared to the end of the previous fiscal year.
(iv) Non-current liabilities
At the end of the fiscal year under review, non-current liabilities were 55,071 thousand yen, adecrease of 308 thousand yen from the end of the previous fiscal year. The main factors for this include
the decrease of 399 thousand yen in retirement benefit liability due to the payment of retirement benefits.
(v) Net assets
At the end of the fiscal year under review, net assets were 2,531,475 thousand yen, a decrease of
1,006,167 thousand yen from the end of the previous fiscal year. The main factors for this are theincrease of 481,341 thousand yen in the total of capital stock and capital surplus due to issuance of
new shares, and the decrease of a net loss of 1,484,192 thousand yen. As a result of the above, equity
ratio was 90.5% compared to 93.7% at the end of the previous fiscal year.
(3) Overview of Cash Flows for the Fiscal Year under Review
At the end of the fiscal year under review, cash and cash equivalents (hereinafter “net cash”) amounted
to 2,305,026 thousand yen, a decrease of 960,361 thousand yen from the end of the previous fiscal year.
The situation of each cash flow for the fiscal year under review and the underlying factors are as follows:(Cash flows from operating activities)
Net cash used in operating activities amounted to 1,512,022 thousand yen (1,769,848 thousand yen usedin the previous fiscal year). This was mainly due to recording loss before income taxes of 1,481,772
thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 17,566 thousand yen (36,211 thousand yen used in theprevious fiscal year). This was mainly due to 17,646 thousand yen spent for purchase of property, plantand equipment associated with research and development equipment, etc.
(Cash flows from financing activities)―3―

Net cash provided from financing activities amounted to 569,226 thousand yen (2,053,090 thousand yen
provided in the previous fiscal year). This was mainly due to 478,051 thousand yen in proceeds fromissuance of shares resulting from exercise of share acquisition rights.
(4) Future Outlook
Our business target is to create novel cancer immunotherapy drugs. Our business model is basedon developing drugs that utilize the immune system to kill cancer cells, involving in the early
development stage of these drugs, and licensing them out to pharmaceutical companies to mainly
monetize them.
The current goal is to advance each development pipeline to a stage of development where there
are many licensing transactions flows. In order to advance to that stage, a certain amount of cumulative
development investment is required. However, especially from the latter half of 2021, the financing
environment, which is critical for biotech companies, is deteriorating not only in Japan but also in the
US. and Europe, therefore the Company is required to prioritize and organize our development
pipelines.
The pipelines that we have decided to prioritize are as follows, we will proceed with developments
as we have previously envisioned.

Cell therapy agents[iPS-NKT: induced pluripotent stem cells (iPSC) derived natural killer T-cell (NKT cell) therapy]
iPS-NKT is a novel allogeneic cell therapy agent that uses NKT cells induced from iPS cells forcancer treatment. NKT cells, which are thought to have multifaceted anti-tumor effects but are difficult
to apply to cell therapy agent because only a few exist in blood, can now be produced in large quantities
and homogeneously from the iPS Master Cell Bank derived from the blood of healthy donors using iPS
cell technology.
From June 2020, the world's first investigator-initiated clinical trial of iPSC) derived regenerating
NKT cell therapy is underway at Chiba University Hospital for head and neck cancer. In 2018, theCompany joined this development project promoted by RIKEN and is conducting joint study, and has
an option right to in-license an exclusive development, manufacturing and marketing license for iPSNKT. This clinical trial is progressing, and the Company is supporting this clinical trial as well as
improving the manufacturing process to prepare for the next phase of clinical trials.
The company aims the construction of platform for the development of iPS-NKT in a wide range ofcancer types and regions, and its three components are the "patent" (registered in Japan, the US, andEurope), which provides broad and exclusive protection for the allogeneic use of iPS-derived NKT cells,
the "iPS master cell bank" that is expected to demonstrate clinical safety and certain efficacy throughthe clinical trial, and the "differentiation method" from the Master Cell Bank to NKT cells for which theCompany are currently working to improve the process. By combining this platform with genemodification technologies such as chimeric antigen receptor (CAR) transfection, it will be possible todevelop new gene-modified iPS-NKT cell therapy agent.
[BP2301: HER2 CAR-T cell therapy]
BP2301 is a chimeric antigen receptor gene-transfected T cell (CAR-T cell) therapy that targets
HER2 that is highly expressed in various solid tumors. The Phase I investigator-initiated clinical trial
will begin in the first quarter of the fiscal year ending March 31, 2023 for the treatment of HER2-positive
relapsed or advanced sarcomas and gynecological malignancies. Once the clinical safety and efficacy―4―are demonstrated in the clinical trial that is expected to last several years, the therapy will proceed toPhase II clinical trials.
CAR-T cell therapies targeting hematologic cancers have been approved globally with excellent
clinical benefits, with objective response rates of 70 to 90% in some cases. BP2301 targeting HER2
has the potential to expand the application of CAR-T cell therapy to more patients with solid tumors.
However, the challenge of expanding the therapy to solid tumors is exhaustion and dysfunction of CART cells in the immune-suppressive tumor microenvironment. To overcome the challenge, BP2301
contains a large number of stem cell-like immune memory phenotype cells that are characterized byexcellent replication and long-term viability in the body and are expected to provide exhaustion
resistance and sustained anti-tumor effects in the tumor microenvironment. It has been allowed throughthe joint development of a novel cell culture method with Professor Yozo Nakazawa and Professor
Shigeki Yagyu of Shinshu University, based on Professor Nakazawa's non-viral gene transfer method.
Antibody drugs
The Company has been developing anti-CD73 (BP1200), anti-CD39 (BP1202), and anti-TIM-3(BP1210) antibodies aiming toward acquiring antibodies functionally differentiated from precedent
competitor’s development products. The Company now have the lead antibodies that are differentiatedfrom preceding products against multiple targets and have confirmed efficacy in a tumor-bearing mousemodel as pre-clinical proof of concept. .
In addition, based on the antibody against one of these target antigens, the Company is planning tocreate bispecific antibodies with bispecificity against two target antigens for the purpose ofdemonstrating higher anti-tumor immunity in the immunosuppressive tumor microenvironment, and willenvision a value-added development. By combining single-target anti-CD39 (BP1202) and anti-TIM-3(BP1210) antibodies, which are differentiated from preceding antibodies of other companies in termsof specifications, with the bispecific antibody technology established in the development process of
BP1210, the Company has created anti-CD39 x anti-TIM-3 bispecific antibody (BP1212).
Cancer vaccines[BP1209 (Fully personalized neoantigen vaccine)]
BP1209 is a personalized neoantigen vaccine platform optimized to elicit tumor-specific, highly
immunogenic neoantigen-targeted anti-tumor immunity in each individual patient. While BP1101 is a
naked peptide, patient-specific neoantigen vaccine, BP1209 is a molecular complex of the peptides
and immune checkpoint antibody. Our original linker technology enabes BP1101 to bind to immune
checkpoint antibody, the immune checkpoint antibody directs the vaccine complex to dendritic cells,
enhances the cellular uptake of the vaccine and promotes the induction of tumor-specific T cells. The
Company has demonstrated that the vaccine elicits cellular immunity targeting tumor antigens much
more potently than BP1101 in a tumor-bearing mouse model.
The Company focus on the BP1209 format for neoantigen vaccine development and prepare forclinical application.
On the other hand, some of the Company’s development pipelines have been reviewed as follows:[GRN-1201: Cancer peptide vaccine]GRN-1201 is a cancer peptide vaccine consisting of four tumor associated antigen-derived HLA-A2
restricted peptides. HLA-A2 type is common in Europeans and Americans, and GRN-1201 is intended
for global deployment including the US and Europe. In the US, Phase II clinical trials have been
conducted in combination with pembrolizumab, an immune checkpoint inhibitor antibody, in patientswith first-line non-small cell lung cancer in the US. If an interim evaluation with a certain number of―5―patients exhibited the safety of the combination therapy and preliminary clinical efficacy compared withpembrolizumab monotherapy, the Company intended to proceed directly to out-licensing.
However, the COVID-19 pandemic affected the patient enrollment especially in the latter half of the
fiscal year, which made the trial management very challenging. In addition, the evolving standards ofcare, the combinations of immune checkpoint inhibitor and chemotherapy, are likely impacting thefeasibility of completing this study.
On the other hand, the open-label*5 clinical trial, has allowed us to understand the ORR*6 (Objective
Response Rate) set as a primary endpoint in the current study protocol is not appropriate to evaluate
the cancer vaccine and the longer-term indicators such as PFS*7 (Progression Free Survival) and OS*8
(Overall Survival) are considered desirable.
[BP1401: TLR9 agonist of LNP formulation]
TLR9 agonist is considered to transform "Cold Tumor" to "Hot Tumor" in which many immune cells
infiltrate and promote anti-tumor immunity. There have been several precedent products in a clinicalstage. All of them are intratumorally(i.t.) administrated and delivered to TLR9-expressing dendritic cells(pDCs) in the tumor. BP1401, originally developed by Associate Professor Taiki Aoshi of Osaka
University, is LNP (lipid nanoparticle) formulated and to be intravenously (i.v.) administrated. The
Company has a strategic intent to replace the precedent i.t products with more useful i.v. products
albeit a compromise of clinical efficacy compared to i.t. due to the less drug concentration in the tumor.
In the collaborative research with Osaka University, the Company has confirmed that the intravenously
administrated LNP product is as effective as intratumorally administrated non-LNP product ineradicating tumors of tumor-bearing mice, and has also succeeded in preparing the stable formulationof the LNP.
However, the clinical outcome of the precedent i.t. products announced through 2020 to 2021 weregenerally not sufficient to proceed to next clinical trials. The druggability of TLR9 agonist needs to bereconsidered and the development plan the Company originally envisioned is no longer viable.
Thus, the Company would have to lower the priority of BP1401 development.
[BP1206: Anti-HLA-DR antibody, BP1211: Anti-PVR antibody]Due to the complexity of the mechanism of action of BP1206’s and BP1211’s target molecules, HLADR and PVR respectively, it has become apparent over the course of development that blocking thosetargets by the antibodies affects other immune modulatory pathway and immune cells undesirably, andit’s forecast to take time to sort out. Therefore, the Company prioritize the targets of which clinical utility
is being elucidated such as CD73 (BP1200), CD39 (BP1202), and TIM-3 (BP1210).
As a result of the above, for the fiscal year ending March 31, 2023, we are expecting net sales of 5
million yen, operating loss of 1,635 million yen, ordinary loss of 1,635 million yen, and net loss of 1,637
million yen. Research and development costs are expected to be 1,267 million yen.

<Glossary>*1 (NKT cell)
An immune cell that has the ability to directly kill cancer cells and at the same time has an adjuvant
action that activates other immune cells. When activated, it produces a variety of cytokines and promote
the activation of NK cells belonging to the innate immune system and the maturation of dendritic cells.
Mature dendritic cells further proliferate and activate killer T cells belonging to the acquired immune
system, thereby synergistically enhancing anti-tumor effects. In addition, by simultaneously activating
the innate immune system, dendritic cells have the ability to kill HLA-negative cancer cells that cannot
be killed by T cells.
―6―*2 (CAR-T cell therapy)
Chimeric Antigen Receptor T-cell Therapy: Chimeric antigen receptor transgenic T-cell therapy.
Chimeric antigen receptors that recognize antigens expressed by cancer cells are gene-transfected into
T-cells (a type of lymphocyte with anti-tumor immunity), which are then grown in culture andadministered.
*3 (Immune check point proteins)
A group of molecules that suppress the immune response to self as well as suppress excessive immune
responses in order to maintain immune homeostasis. In cancer immunity, they are present to preventthe attack on self by over-activation, but in the carcinogenic process, they are used by cancer cells toevade attack from the immune system and to proliferate.
*4 (Fully personalized neoantigen vaccine)
A tailor-made cancer vaccine that searches for neoantigens in cancer cells of individual patients. Clinical
trials are being conducted overseas by academia and leading development companies.
*5 (Open-label)
A study method in which the physician, patient, and staff know what treatment the patient is receiving
when conducting a clinical trial.
*6 (ORR: Objective Response Rate)
The percentage of patients whose tumors have shrunk or disappeared after a given cancer treatment
has been administered to them.
*7 (PFS: Progression Free Survival)
The period during or after treatment when the cancer has not progressed and is stable.
*8 (OS: Overall Survival)
In a lethal disease clinical trial, the period of time from patient enrollment to the last confirmed date ofsurvival prior to death. The period of time during or after treatment that the cancer has not progressed
and is stable.

(5) Significant Subsequent Events regarding Going Concern Assumptions
Not applicable

2. Basic Stance on Choice of Accounting Standards
The Company applies accounting principles generally accepted in Japan (Japanese GAAP), and willappropriately consider the adoption of International Financial Reporting Standards (IFRS) in line withvarious conditions in Japan and overseas in the future.

―7―

3. Financial Statements and Primary Notes(1) Balance Sheets(Thousands of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

3,265,388
283

2,305,026
16,586385,321374,437

3,650,992

2,696,050

0
0

0
0

Tools, furniture and fixtures, net

48,201

24,918

Total property, plant and equipment

48,201

24,918

Software00

Total intangible assets

0

0

Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Machinery and equipment, net

Intangible assets

Investments and other assets
0

0

Other

Long-term prepaid expenses

50,23450,234

Total investments and other assets

50,23450,23498,43575,152

3,749,428

2,771,202

Total non-current assets
Total assets―8―

(Thousands of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Accounts payable - trade
Current portion of bonds payable

468

1,912
87,500Accounts payable - otherAccrued expenses―
112,413
6,662

Income taxes payable
Advances received

31,9988Deposits received

4,853

－
5,338

156,405

184,655

Total current liabilities
Non-current liabilities
Deferred tax liabilities

45,6505,436
38,8170

0

Provision for retirement benefits
Asset retirement obligations

33,00522,37432,606
22,465

Total non-current liabilities

55,37955,071

211,785239,727

6,459,712

6,700,382

6,443,296

6,683,967

6,443,296

6,683,967-9,391,623-10,875,815

Total retained earnings-9,391,623-10,875,815

Total shareholders' equity

3,511,385

2,508,534

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Total capital surpluses
Retained earnings
Other retained earnings
Retained earnings brought forward

Share acquisition rights
Total net assets
Total liabilities and net assets―9―26,257

22,9403,537,642

2,531,475

3,749,428

2,771,202

(2) Statements of Operations(Thousands of yen)
Fiscal year ended
March 31, 2021
Net sales

Fiscal year ended
March 31, 2022

2,504

15,408

1,145

102
3,215

Cost of sales
Research and development costs
Other cost of sales－

Total cost of sales
Gross profit

1,145

3,317

1,358

12,091

Selling, general and administrative expenses

1,734,161

1,488,124

Operating income-1,732,802-1,476,033

35

27

Foreign exchange gains
Other

3,131
98

－
89

Total non-operating income

3,265

117
362
3,470

Share issuance cost
Miscellaneous loss

－
－
9,099
0

Total non-operating expenses

9,099

6,029

-1,738,636-1,481,945

Gain on reversal of share acquisition rights
Gain on sales of non-current assets

31,051－

5,899
13

Total extraordinary profit

31,051

5,912

9,629

5,701

Non-operating income
Interest income

Non-operating expenses
Interest on bonds
Foreign exchange losses

Ordinary income

2,197
－

Extraordinary profit

Extraordinary losses
Impairment loss
Other

0

37

Total extraordinary losses

9,629

5,738

Income before income taxes-1,717,214-1,481,772

Income taxes - current

2,420

2,420

Total income taxes

2,420

2,420

-1,719,634-1,484,192

Net income―10―Manufacturing Statement
1. Manufacturing statement for research and development costs
Fiscal year ended
March 31, 2021
Category

Notes

Amount(Thousand yen)

Fiscal year ended
March 31, 2022

Composition(%)

Amount(Thousand yen)

Composition(%)

I Material cost

－

－

－

－

II Labor cost

－

－

－

－

1,145

100.0

102

100.0

1,145

100.0

102

100.0

III Expenses*1

Research and development
expenses for the current period
Work in progress at the
beginning of the period
Total
Research and development
costs for the current period

－

－

1,145

102

1,145

102

(Note) *1 Main breakdown is as follows:(Thousand yen)
Fiscal year ended
March 31, 2021

Item
Outsourcing expenses

Fiscal year ended
March 31, 2022－

720

(Cost accounting method)
The Company adopts the job-order cost system.
2. Manufacturing statement for other costs
Fiscal year ended
March 31, 2021
Category

Notes

Amount(Thousand yen)

Fiscal year ended
March 31, 2022

Composition(%)

Amount(Thousand yen)

Composition(%)

I Material cost

－

－

－

－

II Labor cost

－

－

1,250

38.9

－

－

1,965

61.1

－

－

3,215

100.0

III Expenses*1

Other expenses for the current
periodWork in progress at the
beginning of the period
Total
Other costs for the current period

－

－

－

3,215

－

3,215

(Note) *1 Main breakdown is as follows:(Thousand yen)
Item

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022－

Commission expenses

―11―

1,800

(Cost accounting method)
The Company adopts the job-order cost system.

―12―

(3) Statement of Changes in Net Assets
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(Thousands of yen)
Shareholders’ equity
Capital assets
surplusCapital stock

Balance at beginning ofcurrent period
Changes of items
during period
Issuance of newsharesLegal capital Total capitalsurplussurplus5,433,211

5,416,796

5,416,796

1,026,500

1,026,500

1,026,500

Net loss
Net changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

Retainedearnings
Other
Share
retained
Total
acquisition
earnings
shareholders'
rightsTotal retained
equityRetainedearnings
earnings
brought
forward-7,671,989-1,719,634-7,671,989-1,719,634

3,178,018

57,219Total net
assets3,235,237

2,053,001

2,053,001-1,719,634-1,719,634-30,961-30,961

1,026,500

1,026,500

1,026,500-1,719,634-1,719,634

333,366-30,961

302,405

6,459,712

6,443,296

6,443,296-9,391,623-9,391,623

3,511,385

26,2573,537,642

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Thousands of yen)
Shareholders’ equity
Capital assets
surplusCapital stock

Balance at beginning ofcurrent period
Changes of items
during period
Issuance of newsharesLegal capital Total capitalsurplussurplus6,459,712

6,443,296

6,443,296

240,670

240,670

240,670

Net loss
Net changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

Retainedearnings
Share
Other
acquisition
retainedTotal
rightsearnings
shareholders'
Total retained
equityRetainedearnings
earnings
brought
forward-9,391,623-1,484,192

240,670

240,670

6,700,382

6,683,967

240,670-1,484,192-9,391,623-1,484,192

3,511,385

26,257

Total net
assets3,537,642

481,341

481,341-1,484,192-1,484,192-3,316-3,316-1,484,192-1,002,850-3,316-1,006,167

6,683,967 -10,875,815 -10,875,815

2,508,534

22,9402,531,475―13―

(4) Statements of Cash Flows(Thousands of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Loss before income taxes

Fiscal year ended
March 31, 2022

-1,717,214-1,481,772

Depreciation
Impairment loss

66,6889,629

35,123
5,701

Gain on reversal of share acquisition rights
Loss (gain) on sale of property, plant and equipment-31,051-5,899-13－-11,249-35

Increase (decrease) in retirement benefit liability
Interest and dividend income

-399
-27

Interest on bonds
Decrease (increase) in notes and accounts receivable - trade

－
376

362
-16,302

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received

-346
-967

1,444
-8

Other, net-82,980-47,618

Subtotal-1,767,150-1,509,410

35

28
-221

Interest and dividend income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities－-2,732-2,420-1,769,848-1,512,022-34,920-354-17,646

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of property, plant and equipment
Payments for guarantee deposits
Net cash provided by (used in) investing activities

－
-937

－
80
－

-36,211-17,566

2,052,505

478,051
300,000-212,500

Proceeds from issuance of share acquisition rights

－
－
585

Net cash provided by (used in) financing activities

2,053,090

569,226

Net increase (decrease) in cash and cash equivalents

247,031-960,361

Cash and cash equivalents at beginning of period

3,018,356

3,265,388

Cash and cash equivalents at end of period

3,265,388

2,305,026

Cash flows from financing activities
Proceeds from issuance of shares resulting from exercise of shareacquisition rights
Proceeds from issuance of bonds
Redemption of bonds

―14―

3,675

(5) Notes to Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020; hereinafter “Revenue Recognition Standard”) and other standards from the beginning of thefirst quarter of the current fiscal year. The Company recognizes revenue when control of a promised good orservice is transferred to a customer in an amount that reflects the consideration to which the Company expects
to be entitled in exchange for those goods and services. The Company applies the Revenue Recognition
Standard, etc. in accordance with the transitional treatment provided for in the proviso to Paragraph 84 of the
Revenue Recognition Standard. The cumulative impact of retrospectively applying the new accounting policies
to prior periods is adjusted to retained earnings at the beginning of the first quarter of the current fiscal year,with the new accounting policies applied from the beginning balance.
As a result, the effect on profit or loss for the current fiscal year is minimal. There is no effect on the balanceof retained earnings at the beginning of the period.
(Application of the Accounting Standard for Fair Value Measurement)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019; hereinafter “Fair Value Standard”) and others from the beginning of the first quarter of the current
fiscal year. New accounting policies based on the Fair Value Standard have been applied prospectively inaccordance with the transitional treatment stipulated in Paragraph 19 of the Fair Value Standard and Paragraph44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no
impact on the financial statements.
(Segment information, etc.)
Segment information is omitted as the Company operates in the single business segment of the pharmaceuticaldevelopment business and there is no other significant segment information.

―15―

(Per share information)
Fiscal year ended
March 31, 2021

Yen

Fiscal year ended
March 31, 2022

Yen

Net assets per share

69.10

45.40

Net loss per share-36.14-28.55(Notes) 1. Fully diluted net income per share is not stated as net loss was recorded although there are residual shares.
2. The basis for calculating net loss per share is as follows:
Fiscal year ended
March 31, 2021
Net loss (Thousand yen)

-1,719,634-1,484,192――-1,719,634-1,484,192

47,581,918

51,993,131――

Amount not attributable to common shareholders(Thousand yen)
Net loss for common stock (Thousand yen)
Average number of shares of common stock during theperiod (Shares)
Overview of residual shares not included in calculationof fully diluted net income per share due to lack ofdilutive effectFiscal year ended
March 31, 2022

3. The basis for calculating net assets per share is as follows:
Fiscal year ended
March 31, 2021
Total net assets (Thousand yen)

Fiscal year ended
March 31, 2022

3,537,642

2,531,475

Amount deducted from total net assets (Thousand yen)

26,257

22,940(of which, share acquisition rights) (Thousand yen)

-26,257-22,940

Net assets at the end of the period for common stock(Thousand yen)

3,511,385

2,508,534

Number of shares of common stock at the end of theperiod to calculate net assets per share (Shares)

50,817,500

55,253,100(Significant subsequent events)(Exercise of the 15th share acquisition rights)
Partial exercise of the 15th share acquisition rights with exercise price amendment clause (third-party allotment)
held by Macquarie Bank LIMITED DBU AC during the period from April 1, 2022 to May 10, 2022 has been
exercised. Summary of the exercise of the share acquisition rights is as follows:(1) Class and number of shares issued

Common stock 745,000 shares(2) Total amount of issue price

67,445 thousand yen

As a result, Capital Stock and Legal Capital Surplus increased by 33,852 thousand yen and 33,852 thousand
yen, respectively, including 260 thousand yen transferred from share acquisition rights.

―16―