Financial Results for the Fiscal Year ended March 31, 2024
[Japanese GAAP] (non-consolidated)
May 10, 2024
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)CFO(Name) Yoichi Takeshita(TEL) +81-3-5840-7697
Scheduled date of annual meeting of stockholders: June 21, 2024
Scheduled date of dividend payment commencement:－
Scheduled date of submission of securities report: June 21, 2024
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 2024 (April 1, 2023 – March 31, 2024)(1) Results of Operation(Percentages represent changes from the same period of previous year)
Net sales
Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

Millionyen
05Operating income
%

-98.6
-65.7

Millionyen-1,155-1,467

Ordinary income
Millionyen-1,158-1,473%－－

Net income%－－

Millionyen-1,168-1,485%－－

Fully diluted net
Return on
Ratio of
Operatingincome pershareholders’ ordinary income
marginshareequityto total assets
Yen
Yen
%
%
%
Fiscal year ended March 31, 2024
-18.21
-93.3
-79.1
－
－
Fiscal year ended March 31, 2023
-24.90-73.3-65.9-27,785.2－(Reference) Equity in earnings (losses) of affiliated companies:
Year ended March 31, 2024: ¥－ million
Year ended March 31, 2023: ¥－ 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, 2024
As of March 31, 2023
(Reference) Shareholders’ equity(3) Cash Flows

Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

Net assets

Equity ratio

Million yen
Million yen
1,230
978
1,701
1,567
As of March 31, 2024
956 million yen
As of March 31, 2023 1,547 million yen
Cash flows
from operating
activities
Million yen-1,156-1,204

Cash flows
from investing
activities
Million yen-7-1

2. Dividends
Annual dividends per share

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2024
Fiscal year ending March 31, 2025
(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

%
77.7
90.9

Net assets per
share
Yen
13.52
24.60

Cash flows
Cash and cashfrom financing
equivalents at end
activitiesof period
Million yen
Million yen
690
1,057
432
1,530
Total
Ratio ofdividends
Payout ratio dividends topaid
net assets(annual)Million yen
%
%
―
―
―
―
―
―
―

3. Projected financial results for fiscal year 2025 (April 1, 2024 – March 31, 2025)(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
-925
-927
-13.08－－Full year
0
-31.3
-925
－
(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.

: None2) Changes in accounting policies due to other reasons than above 1): None3) Changes in accounting estimates: None4) Restatements: None(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
70,741,300 shares
62,891,200 shares
31, 2023
31, 2024
As of March
1 shares31, 2024
Year ended
March 31,64,162,271 shares
2024

As of March
1 shares31, 2023
Year ended
March 31,
59,660,272 shares
2023* 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 ...................................................................... 5(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, 2024, the global economic uncertainty continued to increase
due to persistent international conflicts, and economic activity in the United States and Europe wassomewhat hindered because they held their policy interest rate at a high level for the purpose of curbing
inflation. Nevertheless, the US and European economy remained fairly stable with the help of strong
business performance in the US and major emerging market countries. Biotech stock prices, which
had been depressed since the end of 2021, showed a recovery trend in specific areas including obesity
drugs and cell therapy with gene-editing technology. Meanwhile, the Japanese economy entered aphase of gradual improvement mainly owing to a trend of recovery of inbound travel demand. While
the Nikkei Stock Average hit a record high due to robust foreign investments, their investment targets
concentrated on highly liquid stocks issued by leading companies. Most Japanese biotech companies
therefore continued to face a harsh funding environment.
Under these circumstances, BrightPath Biotherapeutics Co., Ltd. (the “Company”) raised capitalthrough the issuance of Series 16 Share Options. This helped the Company built an environment for
exploring and developing iPSC derived NKT cell therapy, as detailed below, and take a 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 candidate agent for novel allogeneic cell therapy. This novel therapy uses
natural killer T-cells (NKT cells)1 manufactured in large quantities through iPS cell technology totreat cancer, since NKT cells have multifaceted anti-tumor effects including cancer-killingcapabilities.
With the emergence of CAR-T cells2 as new therapeutic agents, cancer treatment has entered a
new era. Such new agents are manufactured by collecting T-cells from a patient or non-diseased
individual and engineering them with chimeric antigen receptors (CAR) that can recognize cancer
antigens with the aim of enhancing tumor killing capabilities. Multiple kinds of CAR-T cell products
manufactured in this way have already been approved in some countries. At present, the developmentof next-generation CAR-T cells with enhanced functionality is underway worldwide. The Company’s
ongoing project aims at developing differentiated CAR-iPS NKT by using NKT cells made from nondiseased donors’ iPS cells.
The Company has obtained an exclusive license to use the patent for iPSC derived NKT cells (iPSNKT) from Institute of Physical and Chemical Research, a.k.a. RIKEN. This patent, registered in Japan,
the US and the EU, extensively and exclusively protects the use of iPS-NKT for CAR-T cell therapy
and other kinds of allogeneic cell therapy. This license has allowed the Company to establish the
manufacturing process capable of differentiating iPS cells in the master iPS cell bank into high-purity
and high-yield NKT cells and facilitated the Company’s introduction of gene-editing technologies. At
Chiba University where clinical research for autologous NKT cell therapy has been continued since
the beginning of the 2000s, an investigator-initiated Phase 1 trial of iPS-NKT in patients with head andneck cancers (started in June 2000) was conducted. This is the world’s first clinical application of iPSNKT in cellular immunotherapy. This clinical trial demonstrated acceptable tolerability and safety as
the primary endpoints and confirmed preliminary anti-tumor activity, as shown by the topline data
published at an academic conference in February 2024.
Non-genetically edited iPS-NKT cells used in this clinical trial can serve as a cornerstone or platform
for developing novel iPS-NKT cells by transducing CAR-T cells targeting various tumor antigens.
Such platform will facilitate the application of iPS-NKT cells to treatment of various types of cancer in―2―many regions of the world. Compared to non-genetically edited iPS-NKT cells, HER2 CAR iPS-NKT
experimentally manufactured by the Company exhibits enhanced anti-tumor effects. The Company
reported the data showing this at the American Association for Cancer Research in November 2023.
In May 2023, the Company obtained a license for the STAR-CRISPRTM gene editing technology.
This license enables the Company to create programs for advanced gene-edited CAR-iPS NKT celltherapy to treat various types of cancer including solid tumors. The Company’s development project
to create prototype CAR-NKT cells is underway.
<HER2 CAR-T cell therapy: BP2301>
BP2301 is a chimeric antigen receptor gene-transfected T-cell (CAR-T cell) therapy which targets
HER2 that is highly expressed in various solid tumors. In the Phase 1 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 have been approved globally with excellent clinical benefits
demonstrated in clinical trials for hematologic cancers. 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. The Company has successfully overcome thischallenge by developing a technology using CAR-T cells rich in stem cell memory phenotypes. Owing
to the high replicability and long-term viability of such CAR-T cells in the patient's body, BP2301 is apromising solution to enhance resistance to T-cell exhaustion and to achieve long-lasting anti-tumor
effects in the tumor microenvironment. This success is attributed to 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 molecules3 or immunomodulatory molecules suppress the immune
system to eliminate tumor cells, the Company is developing antibody drugs capable of binding tosuch molecules 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 a CD39/TIM-3 bispecific antibody targeting immune cells which co-express CD39 andTIM-3 and simultaneously blocking multiple immunosuppressive mechanisms.
Since CD39 is highly expressed in regulatory T-cells (Tregs), which strongly suppress anti-tumor
immunity, the Company has altered BP1202 to add the function of selectively eliminating cancer
cells and 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 drugclass.
Cancer vaccines<Fully-personalized neoantigen vaccine with immune checkpoint antibodies: BP1209>
BP1209 is a new platform of fully-personalized neoantigen vaccines4 optimized to induce eachindividual patient’s anti-tumor immunity targeting immunogenic neoantigens derived frommutations in cancer 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 ofBP1209 to such antibodies, the Company’s original linker technology is utilized. The Company has―3―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 HLAA2 restricted peptides5. HLA-A2 types are common among Europeans and Americans, and GRN1201 is intended for global deployment including the US and Europe. In May 2022, the Company
decided on the early termination of the Phase 2 clinical trial of the cancer peptide vaccine GRN1201 in combination with the immune checkpoint inhibitory antibody targeting PD-1 for non-small
cell lung cancer conducted in the US. While the Company is redefining the original trial subject andprotocol, the Company is not yet to find a new partner to commence a fresh clinical trial for GRN1201.
As a consequence of all of the foregoing, the Company recorded the financial results for the
fiscal year ended March 31, 2024 as follows: net sales of 72 thousand yen (5,280 thousand yen in
the prior year), operating loss of 1,155,078 thousand yen (1,467,059 thousand yen in the prioryear), ordinary loss of 1,158,929 thousand yen (1,473,774 thousand yen in the prior year), and net
loss of 1,168,082 thousand yen (1,485,633 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 1,180,960 thousand yen, a decreaseof 470,250 thousand yen from the end of the previous fiscal year. The main factors for this include a
decrease of 473,609 thousand yen in cash and deposits due to expenditures related to research anddevelopment, etc., despite proceeds from the issuance of shares.
(ii) Non-current assets
At the end of the fiscal year under review, non-current assets were 49,296 thousand yen, a decreaseof 937 thousand yen from the end of the previous fiscal year. The main factors for this include a
decrease of 937 thousand yen in investments and other assets due to refunded deposit from a
temporary employment agency.
(iii) Current liabilities
At the end of the fiscal year under review, current liabilities were 191,011 thousand yen, an increaseof 114,453 thousand yen from the end of the previous fiscal year. The main factors for this include anincrease of 112,500 thousand yen in current portion of bonds payable.
(iv) Non-current liabilities
At the end of the fiscal year under review, non-current liabilities were 60,258 thousand yen, an
increase of 2,912 thousand yen from the end of the previous fiscal year. The main factors for this include
an increase of 2,821 thousand yen in provision for retirement benefits.
(v) Net assets
At the end of the fiscal year under review, net assets were 978,987 thousand yen, a decrease of
588,554 thousand yen from the end of the previous fiscal year. The main factors for this are an increaseof 576,950 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 1,168,082 thousand yen. As a result of the above, equity ratio was
77.7% compared to 90.9% at the end of the previous fiscal year.

―4―(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 1,057,360 thousand yen, a decrease of 473,609 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 1,156,920 thousand yen (1,204,401 thousand yen
used in the prior year). This was mainly due to recording loss before income taxes of 1,166,182
thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 7,648 thousand yen (1,760 thousand yen used in
the prior year). This was mainly due to 6,194 thousand yen spent for purchase of property, plant andequipment associated with research and development equipment, etc.
(Cash flows from financing activities)
Net cash provided from financing activities amounted to 690,959 thousand yen (432,104 thousand
yen provided in the prior year). This was mainly due to 573,382 thousand yen in proceeds from issuanceof shares resulting from exercise of share acquisition rights.
(4) Future Outlook
The Company’s business mission is to create novel cancer immunotherapy drugs. The Company’sbusiness model is based on 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 pharmaceuticalcompanies to monetize them. The current goal is to advance each development pipeline to a stage ofnext-level development where there are many licensing transaction flows.
The pipelines currently underway are as follows, which we are pushing forward developments as wehave previously envisioned.

―5―

<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, NKT cells produce avariety of cytokines and promote the activation of NK cells belonging to the innate immune system andthe 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.
2. CAR-T cell
A genetically modified T-cell with a chimeric antigen receptor, that is, a T-cell (a type of lymphocyte with
anti-tumor immunity) into which a chimeric antigen receptor (CAR) that recognize antigens expressedin cancer cells is introduced.
3. Immune checkpoint molecule
A group of molecules that suppress the immune response to self proteins as well as suppress excessive
immune responses in order to maintain immune homeostasis. These molecules are present to prevent
over-activation of immune cells and protect against the attack on self proteins. In cancer immunity,
immune checkpoint molecules play a role to turn activated immune cells back to normal after eliminating
cancer cells. During cancer progression, however, immune checkpoint molecules may help cancer cells
evade attack from the immune system and promote their proliferation.
4. Fully-personalized neoantigen vaccine
A tailor-made cancer vaccine, which is manufactured by identifying neoantigens (mutated antigens) ineach patient’s cancer cells to which the patient’s T-cells can potentially respond and targeting suchneoantigens in an attempt to eliminate cancer cells.
5. HLAA human leukocyte antigen, or HLA, is a marker to distinguish between self and non-self molecules,
and there are diverse types of HLAs. Self molecules are proteins expressed on the surface of almost
all cells in the human body and recognized as self by the immune system. Non-self molecules, incontrast, are recognized as foreign which the immune system attempts to eliminate. Peptides used as
ingredients in vaccines bind to a specific type of HLA alone and do not bind to any other different types.
(5) Material Uncertainty related to Going Concern
There are no material uncertainties related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern.
2. Basic Views on Selection of Accounting Standards
The Company’s financial reporting is made in accordance with generally accepted accounting principles
in Japan (Japanese GAAP). As to whether to adopt the International Financial Reporting Standards (IFRS)
in the future, the Company intends to carry out proper deliberation in light of various situations at home
and abroad.

―6―

3. Financial Statements and Primary Notes(1) Balance Sheets(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

1,530,969
55

1,057,360
6

120,184

123,594

1,651,210

1,180,960

Buildings, net
Machinery and equipment, net

000

Tools, furniture and fixtures, net

0－0Total property, plant and equipment

00Software00

Total intangible assets

0

0

Other
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets
0

0

Other

Long-term prepaid expenses

50,23449,296

Total investments and other assets

50,23449,29650,23449,296

1,701,444

1,230,257

Total non-current assets
Total assets―7―

(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Accounts payable - trade
Current portion of bonds payable77

20
112,500

Accounts payable - otherAccrued expenses－
56,716
4,047

Income taxes payable
Deposits received

10,4095,308

12,815
6,856

Total current liabilities

76,558191,011

Deferred tax liabilities
Provision for retirement benefits

0
34,789037,610Asset retirement obligations

22,556

22,64852,7296,088

Non-current liabilities

Total non-current liabilities

57,34560,258133,903251,270

362,185

650,661

Legal capital surplus
Other capital surplus

262,185
2,408,534

550,661
2,408,534

Total capital surpluses

2,670,720

2,959,195-1,485,633-2,653,715-1,485,633-2,653,715-0-0

1,547,272

956,141

20,26822,845

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―

1,567,541

978,987

1,701,444

1,230,257

(2) Statements of Operations(Thousands of yen)
Fiscal year ended
March 31, 2023
Net sales

Fiscal year ended
March 31, 2024

5,280

72

70
1,825

18

1,895

18

3,384

54

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

Selling, general and administrative expenses

1,470,443

1,155,133

Operating income-1,467,059-1,155,078

20

12

Other

546

286

Total non-operating income

567

299

61
4,822
2,094

－
2,659
1,399

305

90

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 losses
Impairment loss
Other

7,283

4,149

-1,473,774-1,158,929

9,958

7,252

－

0

Total extraordinary losses

9,958

7,252

Income before income taxes-1,483,733-1,166,182

Income taxes - current

1,900

1,900

Total income taxes

1,900

1,900

-1,485,633-1,168,082

Net income―9―Manufacturing Statement
1. Manufacturing statement for research and development costs
Fiscal year ended
March 31, 2023
Category

Notes

Amount(Thousand yen)

Fiscal year ended
March 31, 2024

Composition(%)

Amount(Thousand yen)

Composition(%)

I Material cost

－

－

－

－

II Labor cost

－

－

－

－

III Expenses

70

100.0

18

100.0

70

100.0

18

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

－

－

70

18

70

18

(Cost accounting method)
The Company adopts the job-order cost system.
2. Manufacturing statement for other costs
Fiscal year ended
March 31, 2023
Category

Notes

Amount(Thousand yen)

I Material cost
II Labor cost
III Expenses

Total
Other costs for the current period

Composition(%)

Amount(Thousand yen)

Composition
(%)

－

－

－

－

1,000

54.8

－

－

825

45.2

－

－

1,825

100.0

－

－

*1

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

Fiscal year ended
March 31, 2024

－

－

1,825

－

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
400

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

―10―

－

(3) Statement of Changes in Net Assets
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―11―

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(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

362,185

262,185

288,475

288,475

2,408,534

2,670,720

Otherretainedearnings
Retainedearnings
brought
forward

Total retained
earnings-1,485,633-1,485,633

Treasury
stock

Total
shareholders’equity-0

1,547,272

288,475

576,950－－

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-1,168,082-1,168,082－

288,475

288,475－

288,475-1,168,082-1,168,082－-591,131

650,661

550,661

2,408,534

2,959,195-2,653,715-2,653,715-0956,141

Share
acquisitionrightsTotal net
assets

20,2681,567,541

576,950－－

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-1,168,082-1,168,082
－
2,577

2,577

2,577

-588,554

22,845

978,987―12―

(4) Statements of Cash Flows(Thousands of yen)
Fiscal year ended
March 31, 2023
Cash flows from operating activities
Loss before income taxes

Fiscal year ended
March 31, 2024

-1,483,733-1,166,182

Depreciation
Impairment loss

16,719
9,958

395
7,252

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

2,183
-20

2,821
-12

Interest on bonds
Decrease (increase) in notes and accounts receivable - trade61
16,530－49

Increase (decrease) in notes and accounts payable - trade
Other, net-1,835
238,335-56
698-1,201,800-1,155,034

SubtotalInterest 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
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

21

13

-202
-2,420－-1,900-1,204,401-1,156,920-1,005-6,194-755-1,454-1,760-7,648519,604

573,382－-87,500-0

500,000-387,500

Proceeds from issuance of share acquisition rights

－

－
5,076

Net cash provided by (used in) financing activities

432,104

690,959

Net increase (decrease) in cash and cash equivalents-774,056-473,609

Cash and cash equivalents at beginning of period

2,305,026

1,530,969

Cash and cash equivalents at end of period

1,530,969

1,057,360―13―

(5) Notes to Financial Statements(Notes on going concern assumption)
Not applicable.
(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, 2023

Yen

Fiscal year ended
March 31, 2024

Yen

Net assets per share

24.60

13.52

Net loss per share-24.90-18.21(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, 2023
Net loss (Thousand yen)

-1,485,633-1,168,082－－-1,485,633-1,168,082

59,660,271

64,162,271－－

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, 2024

3. The basis for calculating net assets per share is as follows:
Fiscal year ended
March 31, 2023
Total net assets (Thousand yen)

Fiscal year ended
March 31, 2024

1,567,541

978,987

Amount deducted from total net assets (Thousand yen)

20,26822,845(of which, share acquisition rights) (Thousand yen)

(20,268)(22,845)

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

1,547,272

956,141

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

62,891,199

70,741,299(Significant subsequent events)(Exercise of the 16 warrants)
The series 16 warrants with exercise price amendment clause (third-party allotment) held by Macquarie
Bank Limited has been partially exercised during the period from April 1, 2024 to May 8, 2024. Summary of theexercise of the warrants is as follows:
1. Class and number of shares issued

Common stock 200,000 shares

2. Total amount of issue price

11,500 thousand yen

As a result, capital stock and capital surplus increased by 5,783 thousand yen each, including 66 thousand
yen transferred from share acquisition rights.

―14―