Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2024
[Japanese GAAP]May 14, 2024
Company name: SUNCORPORATION
Stock exchange listing: Tokyo
Code number: 6736
URL: https://www.sun-denshi.co.jp
Representative: Ryusuke Utsumi
President and Representative Director
Contact: Yoshimi Kimura
Representative and Executive managing director
Phone: +81-52-756-5981
Scheduled date of Annual General Meeting of Shareholders: June 25, 2024
Scheduled date of commencing dividend payments: June 26, 2024
Scheduled date of filing annual securities report: June 26, 2024
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Fiscal year ended
March 31, 2024
10,045(73.2)
312(4,114)(3,777)
March 31, 2023
37,4490.7(1,711)
14,174
46.5
6,878
144.0
(Note) Comprehensive income:Fiscal year ended March 31, 2024:¥
3,531 million [(73.9) %]Fiscal year ended March 31, 2023:¥
13,510 million [61.3%]
Basic earnings per Diluted earnings per Rate of return on
share
share
equityOrdinary profit tototal assets ratio

Operating profit to
net sales ratio

Yen
Yen
%
%
%
Fiscal year ended
March 31, 2024
(169.82)(10.2)(9.3)
3.1
March 31, 2023
292.82278.46
23.2
22.9
(4.6)
(Note: Diluted net income per share for the fiscal year ended March 31, 2024 is not shown in the above table, because net loss per share
was recorded, although there are residual shares.

(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Millions of yen

46,83841,767

Net assets
Millions of yen

Capital adequacy ratio%

Net assets per share
Yen

37,25979.3
1,670.86
35,01383.6
1,542.39
As of March 31, 2024:¥
37,157 million
As of March 31, 2023:¥
34,908 million(Note: In the consolidated fiscal year ended March 31, 2024, the Company finalized the provisional accounting treatment for thebusiness combination, and the consolidated financial position for the fiscal year ended March 31, 2023 reflects the details of the
finalization of the provisional accounting treatment.

(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

2,509(13,518)(3,562)(25,131)(385)
25,574

1,519
2,934

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total
dividends

Total

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

%

%

March 31, 2023

-

0.00

-

20.00

20.00

452

6.8

1.6

March 31, 2024

-

0.00

-

40.00

40.00

889

(23.6)

2.5

-

-

-

-

-

Yen Millions of yen

Fiscal year ending
March 31, 2025-

(Forecast)(Note: The dividend forecast for the fiscal year ending March 31, 2025 is undecided at this time.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)(% indicates changes from the previous corresponding period.)
Net sales

Full year

Operating profit

Millions ofyen%Millions ofyen%

12,28522.29

709

126.66

With regard to the forecast for the year ending 31 March 2025, the impact of recent geopolitical risks and financial instability is
uncertain, and it is difficult to reasonably estimate the impact on the Company's results of changes in the fair value of price adjustment
clauses, certain restricted rights shares and derivative warrant liabilities recognised in Cellebrite DI Ltd, an equity method affiliate of theCompany. The impact of changes in the fair value of price adjustment clauses, certain restricted rights shares and derivative warrant
liabilities recognised in Cellebrite DI Ltd. on the Company's results is difficult to reasonably calculate at this stage, and therefore theprofit for each segment below ordinary income has not yet been determined.
* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024:
24,007,728 shares
March 31, 2023:
23,998,828 shares
2) Number of treasury shares at the end of the period:
March 31, 2024:
1,769,277 shares
March 31, 2023:
1,366,387 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2024:
Fiscal Year ended March 31, 2023:

22,245,178 shares
23,490,418 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Ordinary profit

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

8,435
8,051

4.8
0.1

357
163

118.4
45.5

433
3,415

(87.3)(60.2)

439
3,212(86.3)(86.6)

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2024
March 31, 2023

Yen

Yen

19.75
136.7819.73
136.55(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023
(Reference) Equity:

Net assets

Millions of yen

45,64036,848
As of March 31, 2024:
As of March 31, 2023:

Capital adequacy ratio

Millions of yen¥¥

37,29931,87637,197 million
31,771 million

Net assets per share

%

Yen

81.5
86.2

1,672.64
1,403.78*The financial results are not subject to audit by a certified public accountant or auditing firm.
* Explanation of the appropriate use of earnings forecasts and other special notes
With regard to the forecast for the year ending 31 March 2025, the impact of recent geopolitical risks and financial instability
is uncertain, and it is difficult to reasonably estimate the impact on the Company's results of changes in the fair value of priceadjustment clauses, certain restricted rights shares and derivative warrant liabilities recognised in Cellebrite DI Ltd, an equity
method affiliate of the Company. The impact of changes in the fair value of price adjustment clauses, certain restricted rights
shares and derivative warrant liabilities recognised in Cellebrite DI Ltd. on the Company's results is difficult to reasonably
calculate at this stage, and therefore, the profit for the various levels below ordinary income has not yet been determined. For
further details, please refer to page 7, ‘1. Business results (4) Future outlook’.

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Period Under Review
Forward-looking statements contained in this document are based on judgments of the Group as of the end of
the fiscal year under review.
<External environment>
The data intelligence market, which our Global Data Intelligence business serves, saw a wider adoption by U.S.
police organizations of leading-edge digital intelligence tools from Cellebrite DI Ltd. (hereafter, “Cellebrite"), such
as Inseyets, as they are now indispensable solutions.
Regarding the pachinko and pachislot market, one of the markets that our Entertainment-related business serves,
smart game machines began being introduced in November 2022, and now there are popular games for thesemachines. Thus, the demand for such machines, mainly smart pachislot machines, has been increasing. Meanwhile,
although there have been signs of recovery from the semiconductor supply crunch due to the global shortage, there
are still issues such as the ongoing upsurge of raw material prices, the weakening of yen, and a decrease in numberof pachinko parlors. The future of the market thus remains uncertain.
Although games have been established as enjoyable home entertainment during the COVID-19 pandemic, nowthat other leisure consumption has also recovered, we can see a slight contraction trend in the game content market
in developed countries. Furthermore, the market has been increasingly competitive as the number of games released
has been increasing in an accelerated manner because the technological advancement has made it possible for asingle person to develop video game with a single PC.
In the Internet of things (IoT) market, one of the markets that our New IT-related business serves, demand formonitoring and control systems that can access from remote locations to alleviate labor shortages and improve
productivity is increasing, and the industrial network device Rooster capable of stably operating for a long periodof time, which is our strength, has been widely installed. Furthermore, migration from 3G to LTE (4G) is smoothly
ongoing as communication carriers are scheduled to successively terminate 3G services by March 2026. While thecrunch in overall semiconductor supply is easing, component prices are continuing to soar as a result of theweakening of yen, which may have impacts on supply of our products and our profits, and the impacts remain
uncertain at present.
The market environments of some of our core businesses are uncertain as described above. Against this backdrop,
we are working to establish new core products and services in line with the current social trend of moving towards
utilization of leading-edge technologies, such as IoT, augmented reality (AR), and artificial intelligence (AI) for
further improvement of the Group’s business performance.
<Competitive advantages>
In the Global Data Intelligence business, the Company served law enforcement agencies who deal with techsavvy criminals (criminal organizations) as well as explosive increases in digital evidence. More specifically, we
have provided them with state-of-the-art digital intelligence tools, as well as training and services over the years,
to enhance the productivity of investigation resources. The next-generation solution “Inseyets,” which was releasedin January 2024, combines advanced Premium extraction with next-generation UFED, as an all-in digital forensic
solution that encompasses the functions of Physical Analyzer (including reader), Cloud and Commander,
contributing to a significant reduction in the work time of investigation agencies. In the Japanese market, full-scaledeliveries began in April 2024.
In the game machine business of our Entertainment-related business, the Company specializes in certain businessfields and customers to establish strong trustful relationships and step up our expressive and technical abilities inthe specific areas. This enables us to execute development of contents highly attractive as products, as well as
development of high-quality control boards, thus allowing us to enhance our competitive advantages.
In the game content business, the Company internally handles all phases, from development to operation, of
console games and mobile games under the famous Shanghai brand. This enables us to maintain cost-efficientprofits over a long term. Furthermore, having a number of intellectual properties (IPs) in the genre of retro games,
which is regaining popularity mainly in the European market, we have the prospect of further profit expansion
through effective utilization of the IPs.
In the New IT-related business, our efforts center on the following: to maintain technological competitive
advantages by establishing strong trustful relationships with our partners such as individual communication carriers
and system integrators, and acquiring patents related to migration from 3G to LTE (4G) networks based ontechnologies accumulated over many years; and to further reinforce our competitiveness by developing productswith keywords being 5G and edge AI. Rooster, an industrial network device, supports dual SIM and makes it
possible to use lines of different communication carriers redundantly. This device automatically detects a failure in
a communication carrier network and switches from the main network to the sub-network, thereby eliminating theeffects of network communication failures and enabling uninterrupted operation of remote monitoring and control,and data collection. Thus, sales of Rooster have been growing steadily.
In the IoT field, a problem is to alleviate increasing operational management burdens of a large number of IoT
devices installed in remote locations as they move from the introduction to operational phase. To address this issue,
our device management service called SunDMS enables alive monitoring and centralized control of Rooster,
enabling remote and secure operational management. As a result, on-site maintenance costs such as personnel,
operational adjustments, and travel time can be cut down, and the operational burden can be greatly reduced. We
are also developing SunDMS-Insight. This makes it possible to collect, control, and visualize any device or network
data, such as OKUDAKE Sensor and Programmable Logic Controllers (PLCs). In the future, BI/AI will be used
for aggregation, analysis, and detection to improve the efficiency and security of remote operational managementin the IoT field, thereby securing a competitive advantage.
<Management initiatives>
The Global Data Intelligence business has been increasingly interrelated with the following phases in the scenesof increasingly sophisticated and organized cybercrimes: digital intelligence (forensics), which is investigation andanalysis after the occurrence of incidents; and active cyber defense and threat intelligence, which are intended to
predict and prevent in advance incidents where law enforcement agencies are targeted. We are determined to fortify
our training and support structures into more specialized ones and conduct activities of providing a lineup of
products equipped with new technologies so that Japanese law enforcement agencies can cope with a range ofmodus operandi, and also enhance sales activities in the Asia Pacific region. In response to growing calls forincreasingly diverse cybercrimes to be tackled, we have begun to domestically market relevant new products basedon information on its own global digital intelligence tools.
In the new IT business, we are committed to expanding our stock businesses through the following measures:
further expanding the sales of the industrial network device Rooster; making efforts to develop solutions including
OKUDAKE Sensor Solution; focusing on data businesses such as data visualization and analysis; and increasing
added values by enhancing our services. Furthermore, to improve our earning power, the R&D Department, which
is a department created in October 2022 by combining the Marketing Department and Technology Development
Department, is moving forward with data businesses, more specifically, technological development in the AI and
healthcare fields, while also focusing on and enhancing the solution software that comes after SunDMS. The
Company is conducting joint research with a university that owns a technological seed, thereby pursuingdevelopment of differentiated products through further enhancement.
<Overview of products and services>
In the Global Data Intelligence business, we are moving forward with providing products, services, and support
related to threat intelligence and active cyber defense in addition to conventional digital intelligence products.
Cellebrite, an associate accounted for using equity method, announced its release of Inseyets for mobile device
investigations in the private sector. As an all-in-one application, Inseyets reveals facts quickly and accelerates thecollection, extraction, and reporting process during corporate investigations. At the same time, we are focusing onsales of Pathfinder and increasing sales. In addition, we are aiming to expand sales of Cybersixgill as a new productthat can search for information that is usually out of sight.
In the game machine business of the Entertainment-related business, we work as a contractor responsible for allphases of content development for pachinko and pachislot games, including planning, designing, video production,and programming, as well as all phases related to control boards from designing to manufacturing. In addition,leveraging on our know-how in content development, we also offer smartphone applications simulating realpachinko and pachislot machines to contribute to the operation of real pachinko and pachislot machines in themarket and raise awareness of contents.
In the game content business, several plans utilizing IPs related to retro games are now underway. Hebereke2
was launched for multiple platforms (game consoles) globally on February 29, 2024, and it is well received by
global game evaluation sites. In addition, Ikki Unite was released for Nintendo SwitchTM on April 18, 2024.
In the New IT-related business, several major beverage vendors adopted our strategic products for beveragevending machines, A330 and A900, in order to reduce management costs and improve operational efficiency,
including product replenishment, and more than 500,000 units have already been introduced. Our router products
such as Rooster are promoted as products differentiated from those of other companies with the emphasis onfeatures of network redundancy and linkage with the device management service SunDMS, and have been
producing steady sales. Aiming to further expand our businesses, we have released an edge computer named
LBX8110 in September 2023, where AI image analysis can be implemented. Serving us as a new product in the
new IoT field, this edge computer offers new solutions based on the AI technologies such as image analysis. Lastly,
our sensor device OKUDAKE Sensor has entered the full-scale introduction phase for Hazard Analysis and CriticalControl Points (HACCP)-based temperature management or predictive maintenance based on acceleration(vibration) sensor.

<Overview of the consolidated statements of income>
The Company as a whole posted net sales of ¥10,045 million (down 73.2% year-on-year). This is mainly because
Cellebrite, which was a consolidated subsidiary throughout the nine months ended December 31, 2022, became an
associate accounted for using equity method as of December 31, 2022. Likewise, gross profit, indicative of theadded value created by the Group, decreased to ¥2,963 million (down 88.4% year-on-year), and gross profit margindecreased to 29.5% (down by 38.7 points), due in part to the net sales decrease as mentioned above.
Consolidated net sales
Segment
Global Data Intelligence
Entertainment related
New IT-related
Adjustment
Total

Fiscal year ended
March 31, 2023
(Millions of yen)
29,152
6,259
2,064
(27)
37,449Year-on-year change in
Fiscal year ended
percent
March 31, 2024(%)
(Millions of yen)994
(96.6)
6,051
(3.3)
3,022
46.4
(22)
10,045(73.2)

Fiscal year ended
March 31, 2023
(Millions of yen)
23,145
1,625
739
27
25,537

Fiscal year ended
Year-on-year change inMarch 31, 2024
percent(Millions of yen)(%)
239
(99.0)
1,744
7.3
958
29.6
22
(19.9)
2,963(88.4)

Gross profit
Segment
Global Data Intelligence
Entertainment related
New IT-related
Adjustment
Total
Gross profit margin
Segment

Fiscal year ended
March 31, 2023(%)

Global Data Intelligence
Entertainment related
New IT-related
Total

Fiscal year ended
March 31, 2024
(%）
79.4
26.0
35.8
68.2

24.1
28.8
31.7
29.5

<Overview of selling, general and administrative expenses>
Consolidated selling, general and administrative expenses came to ¥2,650 million (down 90.3% year-on-year).
This is mainly because Cellebrite, which was a consolidated subsidiary throughout the nine months ended
December 31, 2022, became an associate accounted for using equity method as of December 31, 2022.
Selling, general and administrative expenses
Segment
Global Data Intelligence
Entertainment related
New IT-related
Adjustment
Total

Fiscal year ended
March 31, 2023
(Millions of yen)
24,670
945
600
1,030
27,248

Fiscal year ended Year-on-year change inMarch 31, 2024
percent(Millions of yen)(%)
107
(99.6)
964
1.9
727
21.1
851
(17.4)
2,650(90.3)

Research and development expenses
Segment
Global Data Intelligence
Entertainment related
New IT-related
Adjustment
Total

Fiscal year ended
March 31, 2023
(Millions of yen)
8,826
592
247
113
9,780

Fiscal year ended
March 31, 2024
(Millions of yen)

Year-on-year change inpercent(%)
0(100.0)
628
6.1
262
5.9
127
12.7
1,019
(89.6)<Overview of operating profit>
The Company posted operating profit of ¥312 million (operating loss of ¥1,711 million for the previous fiscal
year) on a consolidated basis. This is mainly because Cellebrite, which was a consolidated subsidiary throughout
the nine months ended December 31, 2022, became an associate accounted for using equity method as of December
31, 2022.
Operating profit
Segment
Global Data Intelligence
Entertainment related
New IT-related
Adjustment
Total

Fiscal year ended
March 31, 2023
(Millions of yen)
(1,525)706
138(1,030)(1,711)

Fiscal year ended Year-on-year change inMarch 31, 2024
percent(Millions of yen)
(%)
131
802
13.5
230
66.6
(851)
312
-

<Overview of ordinary profit and profit attributable to owners of parent>
The Company posted ordinary loss of ¥4,114 million (ordinary profit of ¥14,174 million for the previous fiscal
year) on a consolidated basis. This is mainly because it recorded share of loss of entities accounted for using equity
method, amounting to ¥4,498 million, due to loss on valuation of derivatives in Cellebrite. The Company posted
loss attributable to owners of parent of ¥3,777 million (profit attributable to owners of parent of ¥6,878 million forthe previous fiscal year).
<Overview of individual segments>[Global Data Intelligence business]
Fiscal year ended
March 31, 2023
(Millions of yen)
Net sales
29,152

Fiscal year ended
March 31, 2024
(Millions of yen)994

Year-on-yearchange in amount(Millions of yen)
(28,158)

Year-on-yearchange in percent(%)(96.6)

Segment profit (loss)(1,525)131
1,656
Net sales decreased by ¥28,158 million mainly because Cellebrite, which was a consolidated subsidiarythroughout the nine months ended December 31, 2022, became an associate accounted for using equity method asof December 31, 2022.
[Entertainment-related business]

Net sales
Segment profit

Fiscal year ended
March 31, 2023
(Millions of yen)
6,259

Fiscal year ended
March 31, 2024
(Millions of yen)
6,051

Year-on-yearchange in amount(Millions of yen)
(208)

Year-on-yearchange in percent
(%)
(3.3)

706

802

95

13.5

In the game machine business, although sales declined due to a decrease in the shipment volume of gamemachine-related parts, revenue decreased and profit increased due to a trend to resolve the semiconductor shortageand efforts to reduce other expenses.
[New IT-related business]

Net sales
Segment profit

Fiscal year ended
March 31, 2023
(Millions of yen)
2,064

Fiscal year ended
March 31, 2024
(Millions of yen)
3,022Year-on-yearchange in amount(Millions of yen)
957

Year-on-yearchange in percent
(%)
46.3

138

230

92

66.6

Net sales and profit for this segment as a whole both increased because the M2M business saw the difficulty incomponent procurement easing although still being affected to some extent by soaring raw material prices.

(2) Overview of Financial Position for the Period Under Review
Explanation of financial position(Assets)
Total assets stood at ¥46,838 million, an increase of ¥5,071 million from the end of the previous fiscal year.
Current assets stood at ¥23,449 million, a decrease of ¥386 million from the end of the previous fiscal year.
The main factors for decrease were decreases of ¥3,805 million in accounts receivable and ¥1,406 million in
cash and deposits. On the other hand, the main factors for increase were increases of ¥3,300 million in money heldin trust and ¥1,655 million in raw materials.
Non-current assets stood at ¥23,388 million, an increase of ¥5,457 million from the end of the previous fiscal
year.
The main factor for increase was an increase of ¥9,017 million in investment securities. On the other hand, themain factor for decrease was a decrease of ¥3,467 million in shares of subsidiaries and associates.
(Liabilities)
Total liabilities stood at ¥9,579 million, an increase of ¥2,825 million from the end of the previous fiscal year.
Current liabilities stood at ¥4,905 million, an increase of ¥880 million from the end of the previous fiscal year.
The main factors for increase were increases of ¥933 million in short-term borrowings, ¥358 million in income
taxes payable, and ¥109 million in contract liabilities. On the other hand, the main factors for decrease weredecreases of ¥421 million in notes and accounts payable - trade and ¥47 million in provision for bonuses.
Non-current liabilities stood at ¥4,674 million, an increase of ¥1,945 million from the end of the previous fiscal
year. The main factor for increase was an increase of ¥1,973 million in deferred tax liabilities.
(Net assets)
Total net assets stood at ¥37,259 million, an increase of ¥2,245 million from the end of the previous fiscal year.
The main factors for increase were increases of ¥6,304 million in valuation difference on available-for-salesecurities and ¥980 million in foreign currency translation adjustment. On the other hand, the main factors for
decrease were a decrease of ¥4,230 million in retained earnings and an increase of ¥837 million in treasury shares.
(3) Overview of Cash Flows for the Period Under Review
Cash and cash equivalents (hereafter referred to as “cash”) at the end of the fiscal year under review was ¥1,519
million (¥2,934 million as of the end of the previous fiscal year). Status of cash flows during the fiscal year underreview and their primary factors are explained below.
(Cash flows from operating activities)
Net cash provided by operating activities in the fiscal year under review amounted to ¥2,509 million, comparedwith ¥13,518 million used in the previous fiscal year. The main factor for the increase in cash was income taxes
refund of ¥3,844 million. On the other hand, the main factor for the decrease was an increase in inventories of¥2,188 million.
(Cash flows from investing activities)
Net cash used in investing activities in the fiscal year under review amounted to ¥3,562 million, compared with¥25,131 million used in the previous fiscal year. The main factors for the decrease in cash were ¥4,000 million in
investments in money held in trust, ¥168 million in purchase of intangible assets, and ¥119 million in purchase ofproperty, plant and equipment. On the other hand, the main factor for the increase was ¥700 million in proceedsfrom cancellation of money held in trust.
(Cash flows from financing activities)
Net cash used in financing activities in the fiscal year under review amounted to ¥385 million, compared with
¥25,574 million provided in the previous fiscal year. The main factors for the decrease in cash were ¥903 million
in purchase of treasury shares and ¥452 million in dividends paid. On the other hand, the main factor for the increase
was an increase of ¥991 million in short-term borrowings.

(4) Future Outlook<Explanation of consolidated earnings forecasts and other forward-looking information>
Regarding the future outlook, although the economy is expected to pick up due to the effects of various policy
measures, it is expected to remain uncertain due to geopolitical risks that have not been resolved.
In the Entertainment-related business, the business environment remains challenging due to concerns aboutsoaring commodity prices due to rising raw material and energy prices, which are likely to affect consumers’ desire
to spend money for the entertainment industry, including pachinko parlors.
In the New IT-related business, while the crunch in overall semiconductor supply is easing, component prices
are continuing to soar as a result of the weakening of yen, which may have impacts on supply of our products andour profits, and the impacts remain uncertain at present.
In addition, the Global Data Intelligence business is significantly affected by exchange rate fluctuations, andfuture policy interest rate trends in the United States and Japan are unpredictable, resulting in continued uncertainty.
While the market environments continue to be uncertain as described above, we are working to establish newcore products and services in line with the current social trend of moving towards utilization of leading-edge
technologies, such as IoT, AR and AI for further improvement of the Group’s business performance.
For the full-year consolidated results for the fiscal year ending March 31, 2025, we expect net sales of ¥12,285
million and operating profit of ¥709 million. Ordinary profit and profit attributable to owners of parent have notbeen determined since it is difficult to estimate the impact of changes in fair value on the consolidated financial
results of the Company regarding the price adjustment clauses, certain restricted shares and derivative liabilities
recognized by Cellebrite, an associate accounted for using equity method of the Company.
In light of the frequent changes in the market environment due to the international situation, we will continue toclosely monitor the international situation and market trends, and if there is a significant impact on our businessresults, we will carefully examine the content and promptly announce it if it requires timely disclosure.
<Business and other risks>
Recent geopolitical risks and supply shortages of semiconductors and electronic components have affected thesales volume. In addition, due to the sharp rise in interest rates in Europe and the recent financial instability, theCompany’s financial assets are exposed to foreign exchange risk and credit risk. In the future, geopolitical risks,financial instability, and other international conditions, as well as trends in the semiconductor and electronic
component markets may affect the Group’s financial position, operating results, and cash flows.

2. Basic Policy on Selection of Accounting Standards
The Group will continue to apply Japanese GAAP for the time being.
The Group intends to consider the future application of designated international accounting standards, taking into
account the situation in Japan and overseas.

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

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Money held in trust

3,138,716
10,900,000

1,732,014
14,200,000

Notes and accounts receivable - trade
Accounts receivable

2,550,051
3,892,155

1,812,896
86,655

Finished goods
Work in process

265,381394,134

744,912447,404

Raw materials
Other2,055,861
639,898

3,711,585
714,601

Allowance for doubtful accounts

(597)

(499)

23,835,600

23,449,570

949,043
679,701

949,043
630,967

1,628,744

1,580,010

510,007457,630

Other

274,529

229,538

Total intangible assets

784,537

687,169

11,646,475
3,468,520

20,663,685
1,000

Other
Allowance for doubtful accounts

426,543(23,040)

457,012-

Total investments and other assets

15,518,498

21,121,697

17,931,780

23,388,877

41,767,380

46,838,448

Total current assets
Non-current assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets
Investment securities
Shares of subsidiaries and associates

Total non-current assets
Total assets

(Thousands of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

2,411,060
161,395

1,989,206
1,095,392

43,778290,385

37,445
246,421

Accounts payable
Income taxes payable

1,355
2,904

23,353361,112Advances received
Contract liabilities

45,559782,468

63,373891,842

Provision for bonuses
Other

197,175
88,737

149,664
47,199Total current liabilities

4,024,821

4,905,012

249,1112,398,498

257,366
4,372,346

Deferred tax liabilities for land revaluation
Retirement benefit liability

9,920
10,4289,920
10,741

Other

60,794

23,6702,728,752

4,674,045

6,753,574

9,579,057

Share capital
Capital surplus

2,089,685
3,317,507

2,097,606
3,316,731

Retained earnings
Treasury shares

30,773,457(2,806,314)

26,543,187(3,643,498)

Total shareholders' equity

33,374,335

28,314,026

2,964,829

9,269,293(24,755)(434,203)(434,203)

Current portion of long-term borrowings
Accrued expenses

Non-current liabilities
Long-term borrowings
Deferred tax liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment(972,154)

8,197

Total accumulated other comprehensive income

1,533,715

8,843,288

Share award rights

27,01324,012

Share acquisition rights

78,741

78,06435,013,806

37,259,391

41,767,380

46,838,448

Total net assets
Total liabilities and net assets

（2）Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales
Cost of sales

37,449,092
11,911,774

10,045,586
7,081,786

Gross profit

25,537,317

2,963,799

Selling, general and administrative expenses

27,248,380

2,650,998

Operating profit (loss)(1,711,062)

312,801

Non-operating income
Interest and dividend income
Foreign exchange gains
Gain on valuation of derivatives
Share of profit of entities accounted for using equity
methodInterest on refund of income taxes

439,221113,250

2,895,450
12,107,269-

471,222--

20,607

17,23815,641

15,930,403

149,499

Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodCommission for purchase of treasury shares

15,207-

9,686
29,672-

4,498,420

5,679

22,704

Other

23,787

16,327

Total non-operating expenses

44,674

4,576,810

14,174,666(4,114,510)

2,361

0

198
-

1,417
376

2,560

1,794

Other
Total non-operating income
Non-operating expenses

Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on reversal of share acquisition rights
Gain on sale of shares of subsidiaries
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets

4,033

229

Loss on sale of shares of subsidiaries
Loss on valuation of shares of subsidiaries

85,49156,789-Loss on liquidation of subsidiaries
Impairment losses

70,230

6,165
-

Other

287

440

Total extraordinary losses

216,833

6,836

Profit (loss) before income taxes

13,960,393(4,119,551)

114,678
345,366

376,748(718,678)

Income taxes - current
Income taxes - deferred
Total income taxes

460,044(341,930)

Profit (loss)

13,500,349(3,777,621)

Profit attributable to non-controlling interests

6,621,961-

Profit (loss) attributable to owners of parent

6,878,387(3,777,621)

Consolidated Statements of Comprehensive Income(Thousands of yen)
For the fiscal year
ended March 31, 2023
Profit (loss)
Other comprehensive income

For the fiscal year
ended March 31, 2024

13,500,349(3,777,621)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,849,420(293,886)

6,271,474-

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income(2,517,685)

8,197(27,860)

1,029,900

9,988

7,309,572

Comprehensive income

13,510,337

3,531,951

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

7,886,460

3,531,951

5,623,876-

（3）Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders' equity
CapitalsurplusRetainedearnings

Total
Treasuryshareholders
shares' equity

2,086,192 15,864,377

5,978,044(63,321) 23,865,292

SharecapitalBalance at beginningof period
Changes during
periodIssuance of newshares - exercise ofshare acquisitionrightsChanges in foreignsubsidiaries andaffiliatedcompanies' interests
in its subsidiaries
Dividends ofsurplusProfit attributable toowners of parent
Change of scope of
consolidation andequity method
Purchase oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

3,493

3,493

6,986

(3,524,995)(3,524,995)(478,821)(478,821)

6,878,387

6,878,387(9,025,368) 18,395,846

9,370,478(2,742,992) (2,742,992)
-

3,493

(12,546,870
24,795,412 (2,742,992) 9,509,042)

2,089,685

3,317,507 30,773,457 (2,806,314) 33,374,335

Accumulated other comprehensive income
Valuation
Total
Share
difference Deferred
Foreign
Revaluation
accumulated Share award acquisitionongains orcurrency
rightsreserve forotherrightsavailable- losses ontranslation
landcomprehensi
for-salehedgesadjustment
ve incomesecurities
Balance at beginningof period
Changes during
periodIssuance of newshares - exercise ofshare acquisitionrightsChanges in foreignsubsidiaries andaffiliatedcompanies' interests
in its subsidiaries
Dividends ofsurplusProfit attributable toowners of parent
Change of scope of
consolidation andequity method
Purchase oftreasury shares
Net changes in
items other thanshareholders' equity

69,38566,331(434,203)

810,825

512,338-

Total net
assets2,662,650 27,040,281

6,986(3,524,955)(478,821)
6,878,387
9,370,478(2,742,992)
2,895,444(91,086)- (1,782,979) 1,021,377

27,013 (2,583,909) (1,535,517)

Accumulated other comprehensive income
Valuation
Total
Share
difference Deferred
Foreign
Revaluation
accumulated Share award acquisitionongains orcurrency
rightsreserve forotherrightsavailable- losses ontranslation
landcomprehensi
for-salehedgesadjustment
ve incomesecurities
Total changes
during period
Balance at end of
period2,895,444(91,086)

2,964,829(24,755)- (1,782,979) 1,021,377(434,203)(972,154) 1,533,715

Total net
assets27,013 (2,583,909) 7,973,524
27,01378,741 35,013,806

For the fiscal year ended March 31, 2024
(Thousands of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodIssuance of newshares - exercise ofshare acquisitionrightsDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodTotal
Treasuryshareholders
shares' equity

SharecapitalCapitalsurplus2,089,685

3,317,507 30,773,457 (2,806,314) 33,374,335

7,921

Retainedearnings

7,921

15,842(452,648)(452,648)(3,777,621)(3,777,621)(8,696)(903,325)(903,325)

66,141

57,444-

7,921
2,097,606(775) (4,230,269)(837,184) (5,060,309)

3,316,731 26,543,187 (3,643,498) 28,314,026

Accumulated other comprehensive income

Balance at beginningof period
Changes during
periodIssuance of newshares - exercise ofshare acquisitionrightsDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges2,964,829(24,755)

Total
Share
Foreign
Revaluation
accumulated Share award acquisition
currency
rightsreserve forotherrightstranslation
landcomprehensi
adjustment
ve income(434,203)(972,154) 1,533,715

27,013

Total net
assets78,741 35,013,806

15,842(452,648)(3,777,621)(903,325)
57,444
6,304,464

24,755-980,352

7,309,572(3,001)(676) 7,305,894

6,304,464

24,755-980,352

7,309,572(3,001)(676) 2,245,584

9,269,293-(434,203)

8,197

8,843,288

24,012

78,064 37,259,391

（4）Consolidated Statements of Cash Flows(Thousands of yen)
For the fiscal year
ended March 31, 2023
Cash flows from operating activities
Profit (loss) before income taxes

For the fiscal year
ended March 31, 2024

13,960,393(4,119,551)

Depreciation
Amortization of goodwill

1,117,472
416,259

256,254
52,376

Share-based payment expenses
Increase (decrease) in allowance for doubtful accounts

1,378,737
94,883

26,165(98)

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability(70,261)(24,785)(48,659)
312

Interest and dividend income
Interest expenses(439,221)
15,207(113,250)
9,686(185,184)(12,107,269)(21,678)-

Loss (gain) on valuation of shares of subsidiaries
Loss (gain) on sale of shares of subsidiaries

56,78985,491-

Impairment losses
Gain on reversal of share acquisition rights
Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables

70,230(198)(1,417)(471,222)

4,498,420(3,623,090)

741,085

Decrease (increase) in inventories
Increase (decrease) in trade payables(1,730,892)
412,232(2,188,368)(423,478)

Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable - other(3,917,619)(140,014)(37,114)

Increase (decrease) in contract liabilities
Increase (decrease) in accrued expenses

2,407,464(943,894)

109,253
52,659Foreign exchange losses (gains)
Loss (gain) on valuation of derivatives

Other, net

1,389,499(80,416)

Subtotal(2,108,979)(1,427,832)

487,292

113,250(15,207)(11,881,717)(9,686)(9,963)-

3,844,031(13,518,612)

2,554,573

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities

(Thousands of yen)
For the fiscal year
ended March 31, 2023
Cash flows from investing activities
Net decrease (increase) in time deposits

For the fiscal year
ended March 31, 2024

2,425,126-

Proceeds from cancellation of money held in trust
Investments in money held in trust(10,900,000)

700,000(4,000,000)

Purchase of securities
Proceeds from redemption of securities(11,513,472)
3,387,623-

Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Other, net(6,832,038)--

46,635(909,524)(138,524)(119,410)(168,877)(750,876)-

70,016-30,369(21,019)

Net cash provided by (used in) investing activities(25,131,298)(3,562,671)

Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings(3,339,104)(19,669)

991,301(57,186)

Proceeds from exercise of employee share options
Purchase of treasury shares

5,374(2,742,992)

11,988(903,325)-

33,7021,600,480-

30,514,644-(478,821)
34,312(452,648)(9,037)25,574,225(385,206)

903,859

23,875(12,171,826)(1,414,204)

27,438,438

2,934,094(12,332,517)-

2,934,094

1,519,890

Cash flows from financing activities

Proceeds from disposal of treasury shares
Proceeds from share issuance to non-controllingshareholders
Proceeds from sale of shares of subsidiaries not
resulting in change in scope of consolidation
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period

(5) Notes on Consolidated Financial Statements(Notes regarding assumption of going concern)
Not applicable(Additional information)(Debt instruments in Cellebrite)
Cellebrite, which is the Company’s associate accounted for using equity method, assessed certain restricted
shares and warrant liabilities, both of which it inherited from TWC Tech Holding II Corp. (hereafter, “TWC
Corp.”), at fair value and recognized them as liabilities based on the price adjustment clause in the merger
agreement signed on August 30, 2021 when it was listed on the NASDAQ market in the United States ofAmerica.
The Company therefore reported share of loss (profit) of entities accounted for using equity method as aresult of changes in fair value of the liabilities due to the fluctuation of Cellebrite’s share price, etc. as nonoperating income/expenses.
(1) Price adjustment clauses based on the merger agreement
As consideration adjustment after the closing of the transaction, if the volume weighted average price(VWAP) of Cellebrite’s shares exceeds USD 12.5, USD 15 and USD 17.5 for 20 days out of any 30 days
within five years from the closing date, every time each condition is satisfied, Cellebrite will issue
5,000,000 shares respectively (up to 15,000,000 shares) for the shareholders at the time of closing,including the Company, according to their holding ratios. Also, if change of control which is defined in
the merger agreement takes place in the same period, 15,000,000 shares will be issued at the timing ofoccurrence of the event.
(2) Restricted shares
Cellebrite has inherited restricted shares for TWC Corp.’s sponsors. If Cellebrite’s volume weighted
average price (VWAP) exceeds USD 12.5 and USD 15 for 20 days out of any 30 days within seven years
from the closing date, rights on 3,000,000 shares will be vested, respectively. When it exceeds USD 30,
rights on 1,500,000 shares will be vested. Also, if change of control which is defined in the merger
agreement takes place in the same period, 7,500,000 shares will be issued at the timing of occurrence ofthe event.
(3) Warrant liabilities
Cellebrite has inherited the warrant liabilities (publicly offered warrant liability and privately offeredwarrant liability) issued by TWC Corp. under the merger agreement with the latter. Holders of the warrant
liabilities have rights to purchase shares of Cellebrite at the price of USD 11.5 per share on and after
September 29, 2021. The warrant liabilities will expire upon either of five years after the closing date,redemption by Cellebrite based on certain requirements, or Cellebrite’s liquidation.
(Accounting treatment for income tax and local income tax or accounting treatment for tax effect accounting
related thereto)
The Company and some of its domestic consolidated subsidiaries adopt the group tax sharing system fromthe fiscal year under review. In addition, in accordance with the Practical Solution on the Accounting andDisclosure Under the Group Tax Sharing System (ASBJ PITF No. 42, August 12, 2021), it carries out
accounting treatment and disclosure of income taxes and local income taxes, or tax effect accounting related
thereto.

(Segment information, etc.)(Segment information)
1. Overview of reportable segments(1) How to decide reportable segments
Reportable segments of the Group are components within the Group for which separate financial information
is available and are regularly used by the Board of Directors to determine the allocation of management
resources and to evaluate their business results.
The Group establishes business divisions by product and service in Konan office regarding the Entertainmentrelated business and the New IT-related business, and in Cellebrite regarding the Global Data Intelligencebusiness, each of which formulates its own comprehensive strategies for both domestic and overseas markets
with respect to its products and services, and operates its business activities.
Therefore, the Group consists of segments by product and service based on business divisions, whichconstitute three reportable segments; Global Data Intelligence business, Entertainment-related business, andNew IT-related business.
(2) Types of products and services of each reportable segment
The Global Data Intelligence business develops, manufactures and sells mobile data transfer equipment andrelated services designed for criminal investigation agencies, etc. (Digital Intelligence business).
The Entertainment-related business mainly develops, manufactures and sells game machine-related parts suchas control boards designed for game machine manufacturers, and develops and sells game content.
The New IT-related business mainly develops, manufactures and sells M2M communication equipment andIoT solutions, and develops and sells business support systems for B2B.
2. Methods of calculating amounts of net sales, profit (loss), assets, and other items for each reportable segment
The accounting methods used for business segments are the same as those described under the Significant
Accounting Policies for Preparation of Consolidated Financial Statements.
Reportable segment income figures are based on operating income. The amounts of transactions with othersegments are based on actual market prices.
Provisional accounting treatment pertaining to business combination was finalized for the fiscal year underreview, and the figures for the previous fiscal year reflect the content of the finalization of the provisional
accounting treatment.

3. Information on net sales and profit (loss), assets, and other items for each reportable segment
1) Previous fiscal year (April 1, 2022 to March 31, 2023)(Thousands of yen)Amountreportedon
Global Data EntertainNew ITAdjusted consolidatedIntelligence ment-related
relatedTotalamountfinancialbusinessbusinessbusiness(Note 1)statements(Note 2)
Sales
Goods transferred at apoint in time
Goods transferred overtime
Revenue from contracts
with customers
Revenue from externalcustomers
Transactions with othersegments

10,959,517

6,231,803

2,011,083

19,202,404-

19,202,404

18,192,916-

53,772

18,246,688-

18,246,688

29,152,434

6,231,803

2,064,855

37,449,092-

37,449,092

29,152,434

6,231,803

2,064,855

37,449,092-

37,449,092-

27,542-

27,542(27,542)-

29,152,434

6,259,345

2,064,855

37,476,634(27,542)

37,449,092

Segment profit (loss)(1,525,340)

706,600

138,641(680,097)(1,030,965)(1,711,062)

Segment assets

4,450,457

4,937,267

3,055,038

12,442,764

29,324,616

41,767,380

Depreciation

969,215

66,51370,327

1,106,056

11,416

1,117,472

Amortization of goodwill

416,259--

416,259-

416,259

Total

Other items

Investment in entities
3,468,520
3,468,520
3,468,520
accounted for using equity
methodIncrease in property, plant
785,383
165,706
1,010,379
59,28937,6691,048,049
and equipment andintangible assets(Note) 1. The main details of the adjusted amount are as follows.
(1) Adjusted amount for segment profit of ¥(1,030,965) thousand includes elimination of intersegment
transactions of ¥76 thousand and company-wide expenses not allocated to each reportable segmentof ¥(1,031,041) thousand. The company-wide expenses mainly consist of general and administrative
expenses not attributable to reportable segments.
(2) Adjusted amount for segment assets of ¥29,324,616 thousand mainly represents surplus operating
funds (cash) of the parent company, long-term investment funds (securities and investment
securities) and the assets relating to its administrative department not allocated to each reportablesegment.
(3) Adjusted amount for other items is related to company-wide assets not allocated to each reportablesegment, and consists of depreciation and increases in property, plant and equipment and intangible
assets.
2. Segment profit (loss) has been adjusted with operating (loss) on the consolidated statement of income.

2) Current fiscal year (April 1, 2023, to March 31, 2024)

Global Data EntertainIntelligence ment-related
businessbusiness

New ITrelated
business

Total(Thousands of yen)Amountreportedon
Adjusted consolidated
amountfinancial(Note 1)statements(Note 2)

Sales
Goods transferred at apoint in time
Goods transferred overtime
Revenue from contracts
with customers
Revenue from externalcustomers
Transactions with othersegments

71,036

6,029,195

2,976,313

9,076,544-

9,076,544

922,997-

46,044

969,041-

969,041

994,033

6,029,195

3,022,357

10,045,586-

10,045,586

994,033

6,029,195

3,022,357

10,045,586-

10,045,586-

22,055-22,055(22,055)-

994,033

6,051,250

3,022,357

10,067,641(22,055)

10,045,586

Segment profit

131,566

802,159

230,934

1,164,660(851,858)

312,801

Segment assets

906,952

6,161,472

3,306,901

10,375,326

36,463,122

46,838,448

2,850

73,831

158,946

235,629

11,607247,236

Amortization of customerrelated assets

-

-

9,017

9,017

-

9,017

Amortization of goodwill--

52,37652,376-52,376

Total

Other items
Depreciation

Increase in property, plant
2,247
70,55484,015
156,8172,990
159,808
and equipment andintangible assets(Note) 1. The main details of the adjusted amount are as follows.
(1) Adjusted amount for segment profit of ¥(851,858) thousand includes company-wide expenses notallocated to each reportable segment of ¥(851,858) thousand. The company-wide expenses mainly
consist of general and administrative expenses not attributable to reportable segments.
(2) Adjusted amount for segment assets of ¥36,463,122 thousand mainly represents surplus operating
funds (cash) of the parent company, long-term investment funds (securities and investment
securities) and the assets relating to its administrative department not allocated to each reportablesegment.
(3) Adjusted amount for other items is related to company-wide assets not allocated to each reportablesegment, and consists of depreciation and increases in property, plant and equipment and intangible
assets.
2. Segment profit has been adjusted with operating profit on the consolidated statement of income.
3. Information on changes in reportable segments, etc.
As the corporate performance management segmentation within the Company Group has partially been changed,
the name of the reportable segment “Mobile Data Solution business” has been changed to “Global DataIntelligence business” from the fiscal year under review. Note that the segment name after the aforementioned
change is disclosed in segment information for the previous fiscal year. The change, however, has no impact on
the segment information for the fiscal year under review.

(Per share information)
Item
Net assets per share

For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

1,542.39 yen

1,670.86 yen

Basic earnings (losses) per share

292.82 yen(169.82) yen

Diluted earnings per share

278.46 yen-(Note) 1. Diluted earnings per share for the fiscal year ended March 31, 2024 are not shown in the above tablebecause the basic earnings per share were negative despite the existence of dilutive shares.
2. The basis for calculating net assets per share and basic earnings (losses) per share is as follows.
1. Net assets per share
Item
Total net assets (thousands of yen)

As of March 31, 2023

As of March 31, 2024

35,013,806

37,259,391

Amount deducted from total net assets (thousands ofyen)

105,755

102,076[Of which share award rights (thousands of yen)][27,013][24,012][Of which share acquisition rights (thousands ofyen)]
Amounts of net assets related to common stock at theend of the fiscal year (thousands of yen)
Number of common shares used to calculate net assets
per share at the end of the fiscal year (thousand shares)[78,741][78,064]

34,908,051

37,157,314

22,632

22,238

2. Basic earnings (losses) per share and diluted earnings per share
Item

For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Basic earnings (losses) per share
Profit (loss) attributable to owners of parent(thousands of yen)
Profit not attributable to common shareholders(thousands of yen)
Profit (loss) attributable to owners of parent inrelation to common stock (thousands of yen)
Weighted average number of common stock during
the fiscal year (thousands of yen)

6,878,387(3,777,621)--

6,878,387(3,777,621)

23,49022,245(326,370)-[(326,370)]

[-]

38

-

[22]

[-]

Diluted earnings per share
Adjustments to profit attributable to owners ofparent (thousands of yen)
[Of which adjustments by dilutive shares of
consolidated subsidiaries (thousands of yen)]
Number of increased common stock (thousand
shares)[Of which share award rights (thousand shares)][Of which share acquisition rights (thousand[15][-]
shares)]The Company
Details of dilutive shares not included in calculation The Company
The 9th share acquisition
The 5th share acquisitionof fully diluted earnings per share due to non- rights
rightsdilutive effect
The number of dilutive
The number of dilutive
shares: 47 thousand
shares: 12 thousand
sharessharesThe 6th share acquisition
Cellebrite DI Ltd.
rightsPrice adjustment clause
The number of dilutive
The number of dilutive
shares: 15,000 thousand
shares: 15 thousand
sharessharesPublicly offered warrant
The 9th share acquisition
liability
rightsThe number of dilutive
The number of dilutive
shares: 19,999 thousand
shares: 45 thousand
sharessharesPrivately offered warrant
liability
The number of dilutive
shares: 9,666 thousand
shares(Significant subsequent events)
Not applicable