Financial Results for the Fiscal Year ended March 31, 2023
[Japanese GAAP] (non-consolidated)
May 12, 2023
BrightPath Biotherapeutics Co., Ltd.
Listed Market Growth, TSE
TSE Code 4594
URL
https://www.brightpathbio.com/english/index.html
Representative(Title)President & CEO(Name) Kenichi Nagai
Contact(Title)Director(Name) Yoichi Takeshita(TEL) +81-3-5840-7697
Scheduled date of annual meeting of stockholders: June 22, 2023
Scheduled date of dividend payment commencement:－
Scheduled date of submission of securities report: June 22, 2023
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 2023 (April 1, 2022 – March 31, 2023)(1) Results of Operation(Percentages represent changes from the same period of previous year)
Net sales
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Millionyen
5
15

Operating income
%

-65.7
515.3

Millionyen-1,467-1,476

Ordinary income
Millionyen-1,473-1,481%－－

Net income%－－

Millionyen-1,485-1,484%－－

Fully diluted net
Return on
Ratio of
Operatingincome pershareholders’ ordinary income
marginshareequityto total assets
Yen
Yen
%
%
%
Fiscal year ended March 31, 2023
-24.90-73.3-65.9-27,785.2－
Fiscal year ended March 31, 2022
-28.55-49.3-45.5-9,579.2－(Reference) Equity in earnings (losses) of affiliated companies:
Year ended March 31, 2023: ¥－ million
Year ended March 31, 2022: ¥－ million(Note) 1.
Fully diluted net income per share is not stated as net loss was recorded for this period although there areresidual shares.
Net income pershare(2) Financial Position
Total assets
As of March 31, 2023
As of March 31, 2022
(Reference) Shareholders’ equity(3) Cash Flows

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Net assets

Equity ratio

Million yen
Million yen
1,701
1,567
2,771
2,531
As of March 31, 2023 1,547 million yen
As of March 31, 2022 2,508 million yen
Cash flows
from operating
activities
Million yen-1,204-1,512

Cash flows
from investing
activities
Million yen-1-17

2. Dividends
Annual dividends per share

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2023
Fiscal year ending March 31, 2024
(Forecast)

1Q

2Q

3Q

4Q

Annual

Yen
―
―

Yen
0.00
0.00

Yen
―
―

Yen
0.00
0.00

Yen
0.00
0.00

―

0.00

―

0.00

0.00

%
90.9
90.5

Net assets per
share
Yen
24.60
45.40

Cash flows
Cash and cashfrom financing
equivalents at end
activitiesof period
Million yen
Million yen
432
1,530
569
2,305
Total
Ratio ofdividends
Payout ratio dividends topaid
net assets(annual)Million yen
%
%
―
―
―
―
―
―
―

3. Projected financial results for fiscal year 2024 (April 1, 2023 – March 31, 2024)(Percentages represent changes from the same period of previous year)
Net income
Operating income Ordinary income
Net income
Net sales
per share
MillionMillionMillionMillion
%
%
%
%
Yen
yen
yen
yen
yen
Full year
0 -100.0 -1,353-21.58－ -1,353－ -1,357－(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 14 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
As of March
62,891,200 shares
55,253,100 shares
31, 2022
31, 2023
As of March
1 shares31, 2023
Year ended
March 31,
59,660,272 shares
2023

As of March― shares31, 2022
Year ended
March 31,51,993,131 shares
2022* 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 specific notes- All forecasts and projections contained in this document are based on the information available and certain
assumptions deemed reasonable by the Company at this time. They are not intended to represent our promise toattain 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 notes on their use, please refer to “1. Overview of BusinessResults, (4) Future Outlook” on page 5 of the attachment.

Contents of the Attachment
1. Overview of Business Results ...................................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review ............................................................ 2(2) Overview of Financial Position for the Fiscal Year under Review ............................................................ 4(3) Overview of Cash Flows for the Fiscal Year under Review ...................................................................... 4(4) Future Outlook ........................................................................................................................................... 5(5) Significant Subsequent Events regarding Going Concern Assumptions .................................................... 6
2. Basic Stance on Choice of Accounting Standards ......................................................................................... 6
3. Financial Statements and Primary Notes ....................................................................................................... 7(1) Balance Sheets ......................................................................................................................................... 7(2) Statements of Operations ......................................................................................................................... 9(3) Statement of Changes in Net Assets ........................................................................................................ 11(4) Statements of Cash Flows ...................................................................................................................... 13(5) Notes to Financial Statements ................................................................................................................ 14(Notes on going concern assumption) ..................................................................................................... 14(Changes in accounting policies) ............................................................................................................. 14(Segment information, etc.) ..................................................................................................................... 14(Per share information) ............................................................................................................................ 14(Significant subsequent events) .............................................................................................................. 14―1―

1. Overview of Business Results(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2023, the global economic uncertainty triggered by Russia’s
invasion of Ukraine was rising. Concerns over the acceleration of inflation stemming from surging
resource prices urged the central banks in the US and Europe to continue their tight monetary policy,
which has significantly affected equity markets. While biotech stock indices had been depressed since2021, top pharmaceutical companies (Big Pharma) have started to redefine their development andinvestment area and decided to terminate some agreements for licensing from biotech companies.
Meanwhile, some industrial sectors in Japan returned to a track for gradual recovery, although theJapanese economy as a whole was yet to restore stability. Stock indices of Japanese biotech
companies in the fiscal year under review remained at roughly the same level as in a year earlier.
However, the situations of stock price fluctuation differed from company to company.
Under these circumstances, BrightPath Biotherapeutics Co., Ltd. (the “Company”) has built anenvironment for exploring and developing iPSC derived NKT cell therapy, as detailed below, and takena step forward for the launch of the novel therapy.
Cell therapy agents<iPSC derived natural killer T-cell (NKT cell) therapy: BP2201>
BP2201 (iPS-NKT) is a novel allogeneic cell therapy agent for cancer treatment that uses naturalkiller T-cells (NKT cells)1 induced from iPS cells. This cell therapy agent is a kind of T-cell engineered
with chimeric antigen receptors (CAR) that can recognize cancer antigens, and such CAR-T celltherapy2 is currently under development globally. Compared with T-cells, NK cells or γδT cells typicallyused in other companies’ development projects, NKT cells have a differentiated function and are
expected to show a greater presence as immune cells which will underpin the future CAR-T cell therapy.
The Company has been promoting the research and development of the cellular therapy using NKT
cells, jointly with Institute of Physical and Chemical Research (a.k.a. RIKEN). In November 2022, theCompany exercised the option right to obtain a worldwide exclusive license to develop, manufacture
and market BP2201 from RIKEN.
This license has allowed the Company to build an iPS-NKT platform that consists of: (1) the patentin Japan, the US, and the EU to protect the Company’s extensive and exclusive use of iPSC-derived
NKT cells for allogeneic cell therapy, (2) the master iPS cell bank (MCB), and (3) the manufacturing
process capable of differentiating iPS cells in the MCB into high-purity and high-yield NKT cells. The
clinical safety and efficacy of the MCB is expected to be demonstrated in the ongoing clinical trial.
This platform serves as a cornerstone for developing novel iPS-NKT cells by transducing CAR Tcells targeting various tumor antigens and ensures the application of iPS-NKT cells to treatment ofvarious types of cancer in many regions of the world.
At the Annual Meeting of Society for Immunotherapy of Cancer held in the US in November 2022
(SITC 2022), the Company reported the non-clinical data of the world’s first prototype CAR iPS-NKT
created on the iPS-NKT platform, demonstrating anti-tumor effects in vitro3.
The company entered into research and licensing agreement in May 2023 to receive non-exclusive
rights to Artisan’s STAR-CRISPR editing platform to accelerate development of iPS-NKT cells.
As for clinical application of iPS-NKT, an investigator-initiated Phase 1 trial of iPS-NKT in patientswith head and neck cancers (started in June 2020) is underway at Chiba University. This Phase 1 trial
stays on track and, up until now, no safety issues have been reported.
<HER2 CAR-T cell therapy: BP2301>
BP2301 is a chimeric antigen receptor gene-transfected T-cell (CAR-T cell) therapy that targets―2―

HER2 that is highly expressed in various solid tumors. In the Phase I investigator-initiated clinical trial
started in May 2022 at Shinshu University, the treatment of HER2-positive relapsed or advanced
sarcomas and gynecological malignancies is being tested.
Until today, CAR-T cell therapies targeting hematologic cancers have been approved globally withexcellent clinical benefits demonstrated in clinical trials. However, the deployment of CAR-T celltherapies to treat solid tumors, from which a larger number of people suffer, faces a challenge due tothe lack of sufficient clinical efficacy of CAR-T cells resulting from their exhaustion and dysfunction in
the immune-suppressive tumor microenvironment. To overcome this challenge, BP2301 contains alarge number of stem cell-like immune memory phenotype cells that are characterized by excellent
replication and long-term viability in the body and are expected to provide exhaustion resistance andsustained anti-tumor effects in the tumor microenvironment. It has been allowed through the 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
Since immune checkpoint molecules4 or immunomodulatory molecules suppress the immune
system to eliminate tumor cells, the Company is developing antibody drugs capable of binding to suchmolecules and inhibiting their function. The Company’s antibody drug development pipelines cover
BP1200, BP1202, BP1210 and BP1212. BP1200 and BP1202 target CD73 and CD39 respectively,
both of which help prevent the production of immunosuppressive adenosine. BP1210 targets TIM-3,
which is expressed in immune cells and restraints anti-tumor immunity. Furthermore, BP1212 is aCD39/TIM-3 bispecific antibody targeting immune cells which co-express CD39 and TIM-3 andsimultaneously blocking multiple immunosuppressive mechanisms.
Since the Company had ascertained high CD39 expression in regulatory T-cells (Tregs), whichstrongly suppress tumor immunity, the Company has altered BP1202 to add the function of selectively
eliminate Tregs. Due to the combination of CD39 and TIM-3 as targets, BP1212 is a potential candidate
for the first-in-class drug, that is, the first breakthrough drug approved in the same drug class. The preclinical data for BP1212 were reported in SITC 2022 in November 2022. The Company is going to
expedite pre-clinical testing for these novel antibody drugs and aiming to achieve pre-clinical proof ofconcept for all of them.
Cancer vaccines<Fully personalized neoantigen vaccine with immune checkpoint antibodies: BP1209>
BP1209 is a new platform of fully personalized neoantigen vaccines5 optimized to induce eachindividual patient’s anti-tumor immunity targeting immunogenic neoantigens derived from mutations incancer cell derived genes. BP1209 uses checkpoint inhibitor antibodies to deliver neoantigen peptides
to dendritic cells acting as messengers to T-cells. To facilitate the binding of BP1209 to such antibodies,
the Company’s original linker technology is utilized. The Company has demonstrated in a tumor-bearing
mouse model that efficient delivery of vaccine antigens to dendritic cells which direct anti-tumor
immunity can induce many more cancer-killing T-cells which identify and attack neoantigens than
peptides alone do.
<Cancer peptide vaccine: GRN-1201>
GRN-1201 is a cancer peptide vaccine consisting of four tumor associated antigen-derived HLA6A2 restricted peptides. HLA-A2 types are common among Europeans and Americans, and GRN-1201
is intended for global deployment including the US and Europe. In May 2022, the Company decided on
the early termination of the Phase II clinical trial of the cancer peptide vaccine GRN-1201 in combination
with the immune checkpoint inhibitory antibody targeting PD-1 for non-small cell lung cancer conductedin the US. At present, the Company is reviewing the original trial subject and protocol and finding a way
to commence a new clinical trial with the development partner.
―3―

As a consequence of all of the foregoing, the Company recorded the financial results for the fiscal
year ended March 31, 2023 as follows : net sales of 5,280 thousand yen (15,408 thousand yen in theprior year), operating loss of 1,467,059 thousand yen (1,476,033 thousand yen in the prior year),ordinary loss of 1,473,774 thousand yen (1,481,945 thousand yen in the prior year), and net loss of
1,485,633 thousand yen (1,484,192 thousand yen in the prior 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 1,651,210 thousand yen, a decreaseof 1,044,839 thousand yen from the end of the previous fiscal year. The main factors for this include a
decrease of 774,056 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 50,234 thousand yen, a decreaseof 24,917 thousand yen from the end of the previous fiscal year. The main factors for this include a
decrease of 24,917 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 76,558 thousand yen, a decreaseof 108,097 thousand yen from the end of the previous fiscal year. The main factors for this include a
decrease of 87,500 thousand yen due to redemption of bonds and a decrease of 28,408 thousand yen
in income taxes payable 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 57,345 thousand yen, an
increase of 2,274 thousand yen from the end of the previous fiscal year. The main factors for this include
an increase of 2,183 thousand yen in provision for retirement benefits.
(v) Net assets
At the end of the fiscal year under review, net assets were 1,567,541 thousand yen, a decrease of
963,934 thousand yen from the end of the previous fiscal year. The main factors for this are an increaseof 524,371 thousand yen in the total of capital stock and capital surplus due to issuance of new shares,
and a decrease of a net loss of 1,485,633 thousand yen. As a result of the above, equity ratio was
90.9% compared to 90.5% 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 1,530,969 thousand yen, a decrease of 774,056 thousand yen from the end of theprevious 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 1,204,401 thousand yen (1,512,022 thousand yen
used in the prior year). This was mainly due to recording loss before income taxes of 1,483,733
thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 1,760 thousand yen (17,566 thousand yen usedin the prior year). This was mainly due to 1,005 thousand yen spent for purchase of property, plant and―4―equipment associated with research and development equipment, etc.
(Cash flows from financing activities)
Net cash provided from financing activities amounted to 432,104 thousand yen (569,226 thousand
yen provided in the prior year). This was mainly due to 519,604 thousand yen in proceeds from issuanceof 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.
The pipelines currently underway are as follows, which we are pushing forward developments as
we have previously envisioned.

<Glossary>
1. NKT cell
An immune cell combining the properties of natural killer (NK) cells and T-cells and serving as afunctional bridge between innate and acquired immunity. NKT cells have the ability to directly kill cancer
cells through T-cell receptors or NK cell receptors and at the same time have an adjuvant action that
activates other immune cells such as T-cells and dendritic cells. When activated, they produce a variety
of cytokines and promote the activation of NK cells belonging to the innate immune system and thematuration 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.
2. CAR-T cell therapy
Chimeric antigen receptor T-cell therapy. Chimeric antigen receptors that recognize antigens expressedby cancer cells are gene-transfected into T-cells (a type of lymphocyte with anti-tumor immunity), which
are then grown in culture and administered.
―5―

3. in vitro
Experiments in a model environment, often in a laboratory tube.
4. Immune checkpoint molecule
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.
5. Fully personalize neoantigen vaccine
A tailor-made cancer vaccine that searches for neoantigens in cancer cells of individual patients. Clinical
trials currently conducted overseas by academia and leading development companies include those formRNA vaccines, that is, lipid nanoparticles (LNP) loaded with mRNAs coding for neoantigens.
6. HLA
Human leukocyte antigens are proteins which are expressed on the surface of almost all cells in thehuman body and regulate the immune system. The HLA system, which is also known as the major
histocompatibility complex (MHC), is involved in the elimination of pathogens such as bacteria andviruses, cancer cell rejection and organ transplant rejection. HLA expression occurs on the surface ofcancer cells as well. In the mechanism of action of cancer vaccines, HLAs bind to peptides formed fromantigenic peptides in cancer cells, migrate to the cancer cell surface, and enable cytotoxic T-cells (CTL)
to recognize cancer cells. HLA are markers to distinguish self and non-self, and there are diverse typesof HLAs to differentiate many varieties of non-self from self. Peptides bind to a specific type of HLA
alone and do not bind to any other different types.

(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.

―6―3. Financial Statements and Primary Notes(1) Balance Sheets(Thousands of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

2,305,026
16,586

1,530,969
55

374,437

120,184

2,696,050

1,651,210

0
0

0
0

Tools, furniture and fixtures, net

24,9180Total property, plant and equipment

24,9180Software00

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

50,23450,23475,15250,234

2,771,202

1,701,444

Total non-current assets
Total assets―7―

(Thousands of yen)
As of March 31, 2022

As of March 31, 2023

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

1,912
87,50077

Accounts payable - otherAccrued expenses

45,6505,436－
56,716
4,047

Income taxes payable
Deposits received

38,817
5,338

10,4095,308

Total current liabilities

184,655

76,558Deferred tax liabilities
Provision for retirement benefits

0
32,606

034,789Asset retirement obligations

22,46522,556

Non-current liabilities

Total non-current liabilities

55,071

57,345

239,727

133,9036,700,382

362,185

Legal capital surplus
Other capital surplus

6,683,967－

262,185
2,408,534

Total capital surpluses

6,683,967

2,670,720-10,875,815-1,485,633-10,875,815-1,485,633－-0

2,508,534

1,547,272

22,94020,2682,531,475

1,567,541

2,771,202

1,701,444

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders' equity
Share acquisition rights
Total net assets
Total liabilities and net assets―8―(2) Statements of Operations(Thousands of yen)
Fiscal year ended
March 31, 2022
Net sales

Fiscal year ended
March 31, 2023

15,408

5,280

102
3,215

70
1,825

Cost of sales
Research and development costs
Other cost of sales
Total cost of sales
Gross profit

3,317

1,895

12,091

3,384

Selling, general and administrative expenses

1,488,124

1,470,443

Operating income-1,476,033-1,467,059

27

20

Other

89

546

Total non-operating income

117

567

Non-operating income
Interest income

Non-operating expenses
Interest on bonds
Foreign exchange losses
Share issuance cost
Other
Total non-operating expenses
Ordinary income
Extraordinary profit
Gain on reversal of share acquisition rights
Gain on sales of non-current assets
Total extraordinary profit

362

61

3,470
2,197

4,822
2,094

－

305

6,029

7,283

-1,481,945-1,473,774

5,899

－

13

－

5,912

－

5,701
37

9,958

Extraordinary losses
Impairment loss
Other

－

Total extraordinary losses

5,738

9,958

Income before income taxes
Income taxes - current-1,481,772
2,420-1,483,733
1,900

2,420

1,900

-1,484,192-1,485,633

Total income taxes
Net income―9―Manufacturing Statement
1. Manufacturing statement for research and development costs
Fiscal year ended
March 31, 2022
Category

Notes

Amount(Thousand yen)

Fiscal year ended
March 31, 2023

Composition(%)

Amount(Thousand yen)

Composition(%)

I Material cost

－

－

－

－

II Labor cost

－

－

－

－

III Expenses

102

100.0

70

100.0

102

100.0

70

100.0

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

－

－

102

70

102

70

(Cost accounting method)
The Company adopts the job-order cost system.
2. Manufacturing statement for other costs
Fiscal year ended
March 31, 2022
Category

Notes

Amount(Thousand yen)

I Material cost
II Labor cost
III Expenses*1

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

Fiscal year ended
March 31, 2023

Composition(%)

Amount(Thousand yen)

Composition
(%)

－

－

－

－

1,250

38.9

1,000

54.8

1,965

61.1

825

45.2

3,215

100.0

1,825

100.0

－

－

3,215

1,825

3,215

1,825

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

Fiscal year ended
March 31, 2022

Commission expenses

Fiscal year ended
March 31, 2023
1,800

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

―10―

400

(3) Statement of Changes in Net Assets
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Thousands of yen)
Shareholders’ equity
Capital assets surplus

Retained earnings

Capital stock Legal capital Other capital Total capitalsurplussurplussurplus

Balance at beginning ofcurrent period
Changes of items
during period
Issuance of newsharesTransfer to othercapital surplus from
capital stock
Transfer to othercapital surplus fromlegal capital surplus

6,459,712

6,443,296

240,670

240,670－

6,443,296

Otherretainedearnings
Retainedearnings
brought
forward

Total retained
earnings-9,391,623-9,391,623

Treasury
stock

Total
shareholders’equity－-9,391,623

240,670

481,341－－

Deficit disposition－

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

Balance at beginning ofcurrent period
Changes of items
during period
Issuance of newsharesTransfer to othercapital surplus from
capital stock
Transfer to othercapital surplus fromlegal capital surplus-1,484,192-1,484,192－

240,670

240,670－

6,700,382

6,683,967－

ShareacquisitionrightsTotal net
assets26,2573,537,642

240,670-1,484,192－-1,002,850

6,683,967 -10,875,815 -10,875,815－

2,508,534

481,341－－

Deficit disposition－

Net loss
Purchase of treasurystock
Net changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period-1,484,192-1,484,192－-3,316-3,316-3,316-1,006,167

22,9402,531,475―11―-1,484,192

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Thousands of yen)
Shareholders’ equity
Capital assets surplus

Retained earnings

Capital stock Legal capital Other capital Total capitalsurplussurplussurplus

Balance at beginning ofcurrent period
Changes of items
during period
Issuance of newsharesTransfer to othercapital surplus from
capital stock
Transfer to othercapital surplus fromlegal capital surplus

6,700,382

6,683,967

262,185

262,185-6,600,382－

6,600,382-6,683,967

Deficit disposition

Balance at beginning ofcurrent period
Changes of items
during period
Issuance of newsharesTransfer to othercapital surplus from
capital stock
Transfer to othercapital surplus fromlegal capital surplus

Treasury
stock

Total
shareholders’equity－2,508,534

262,185

524,371

6,600,382－

6,683,967－-10,875,815 -10,875,815

10,875,815

10,875,815－-1,485,633-1,485,633-1,485,633-0-0-6,338,197-6,421,781

2,408,534-4,013,247

9,390,182

9,390,182-0-961,261

362,185

262,185

2,408,534

2,670,720-1,485,633-1,485,633-0

1,547,272

ShareacquisitionrightsTotal net
assets

22,9402,531,475

524,371－－

Deficit disposition－

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

Total retained
earnings

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

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

Otherretainedearnings
Retainedearnings
brought
forward-1,485,633-0-2,672-2,672-2,672-963,934

20,2681,567,541―12―

(4) Statements of Cash Flows(Thousands of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Loss before income taxes

Fiscal year ended
March 31, 2023

-1,481,772-1,483,733

Depreciation
Impairment loss

35,123
5,701

16,719
9,958

Gain on reversal of share acquisition rights
Loss (gain) on sale of property, plant and equipment-5,899
-13
-399
-27

－
－
2,183
-20

Interest on bonds
Decrease (increase) in notes and accounts receivable - trade362-16,30261
16,530

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

1,444
-8

-1,835

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

Other, net-47,618－
238,335

Subtotal-1,509,410-1,201,800

28
-221

21
-202

-2,420-2,420-1,512,022-1,204,401-17,646-1,005-755

Interest and dividend income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of property, plant and equipment
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of shares resulting from exercise of shareacquisition rights
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury stock－80-1,760478,051

519,604

300,000－－-87,500
-0

3,675

－

-212,500

Proceeds from issuance of share acquisition rights－-17,566

Net cash provided by (used in) financing activities

569,226

432,104

Net increase (decrease) in cash and cash equivalents-960,361-774,056

Cash and cash equivalents at beginning of period

3,265,388

2,305,026

Cash and cash equivalents at end of period

2,305,026

1,530,969―13―

(5) Notes to Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)(Application of the Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021; hereinafter “Fair Value Standard”) from the beginningof the first quarter of the current fiscal year. New accounting policies based on the Fair Value Standard havebeen applied prospectively in accordance with the transitional treatment stipulated in Paragraph 27-2 of the Fair
Value Standard. 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 thepharmaceutical development business and there is no other significant segment information.
(Per share information)
Fiscal year ended
March 31, 2022

Yen

Fiscal year ended
March 31, 2023

Yen

Net assets per share

45.40

24.60

Net loss per share-28.55-24.90(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, 2022
Net loss (Thousand yen)

-1,484,192-1,485,633－－-1,484,192-1,485,633

51,993,131

59,660,271－－

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, 2023

3. The basis for calculating net assets per share is as follows:
Fiscal year ended
March 31, 2022
Total net assets (Thousand yen)

Fiscal year ended
March 31, 2023

2,531,475

1,567,541

Amount deducted from total net assets (Thousand yen)

22,94020,268(of which, share acquisition rights) (Thousand yen)

(22,940)(20,268)

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

2,508,534

1,547,272

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

55,253,100

62,891,199(Significant subsequent events)
Not applicable.
―14―