Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

April 12, 2024

Non-consolidated Financial Results
for the Fiscal Year Ended February 29, 2024
[Japanese GAAP]
Company name:
TMS Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4891
URL:
https://www.tms-japan.co.jp/
Representative:
Takuro Wakabayashi, Chief Executive Officer
Inquiries:
Go Ito, Chief Financial Officer
Telephone:+81-42-307-7480
Scheduled date of annual general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

May 28, 2024–
May 29, 2024
Yes
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Non-consolidated financial results for the fiscal year ended February 29, 2024 (from March 1, 2023 to
February 29, 2024)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue
Fiscal year ended

Millions of yen

Operating income%

Millions of yen

Ordinary income%

Net income

Millions of yen%

Millions of yen%

February 29, 2024

–

–

(943)

–

(943)

–

(960)

–

February 28, 2023

–

–

(520)

–

(861)

–

(860)

–

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share

Yen

Ratio of ordinary
income to total
assetsRatio of operating
income to net sales

%

%

%

Return on equity

Yen

February 29, 2024

(26.02)–(26.8)(25.7)–

February 28, 2023

(25.28)–(27.9)(26.4)–

Reference:

Note:

Share of income (loss) of entities accounted for using equity method
Fiscal year ended February 29, 2024¥– million
Fiscal year ended February 28, 2023¥– million
Diluted earnings per share is not stated because, although potential shares existed, a basic loss per share was recorded.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Millions of yen

Equity-to-asset ratio

Millions of yen

Net assets per share%

Yen

February 29, 2024

3,554

3,457

96.9

85.48

February 28, 2023

3,790

3,714

98.0

101.55

Reference:

EquityAs of February 29, 2024
As of February 28, 2023

¥3,445 million¥3,714 million

(3) Non-consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

February 29, 2024

(822)

(3)

688

3,446

February 28, 2023

(688)

(13)

1,688

3,584

2. Cash dividends
Annual dividends per share
First
SecondThird
Fiscal yearquarter-end quarter-end quarter-end
end
Yen
Fiscal year ended
February 28, 2023
Fiscal year ended
February 29, 2024
Fiscal year ending
February 28, 2025
(Forecast)

Yen

Yen

Total

Total cash
dividends(Total)Yen

Yen Millions of yen

Payout ratio

Ratio ofdividends to
net assets

%

%

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

3. Forecast of non-consolidated financial results for the fiscal year ending February 28, 2025 (from March
1, 2024 to February 28, 2025)
The forecast of non-consolidated financial results for the fiscal year ending February 28, 2025 has not beenpresented as it is difficult to reasonably calculate the forecast for financial results. For details concerning thereasons, business policy, estimated costs, etc. for the fiscal year ending February 28, 2025, please refer to “(4)Future outlook” under “1. Overview of operating results” on page 5 of the attached material.

* Notes(1) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(2) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of February 29, 2024

40,304,367 shares

As of February 28, 2023

36,574,880 shares(ii) Number of treasury shares at the end of the period
As of February 29, 2024

– shares

As of February 28, 2023

– shares(iii) Average number of shares outstanding during the period
Fiscal year ended February 29, 2024

36,896,144 sharesFiscal year ended February 28, 2023

34,053,422 shares* These non-consolidated financial results are outside the scope of audit conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Caution regarding forward-looking statements and others
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Consequently, any statements herein do not constitute assurances regarding actual results by the Company.
Actual financial results may differ significantly from the forecasts for various reasons. For the suppositions thatform the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to “(4) Future
outlook” of “1. Overview of operating results” on page 5 of the attached material.

Attached Material
Index
1. Overview of operating results ...................................................................................................................................... 2(1) Overview of operating results for the fiscal year ended February 29, 2024 ....................................................... 2(2) Overview of financial position for the fiscal year ended February 29, 2024 ...................................................... 4(3) Overview of cash flows for the fiscal year ended February 29, 2024 ................................................................. 5(4) Future outlook ..................................................................................................................................................... 5
2. Basic rationale for selection of accounting standards .................................................................................................. 6
3. Financial statements and significant notes thereto ....................................................................................................... 7(1) Balance sheet ...................................................................................................................................................... 7(2) Statement of income ........................................................................................................................................... 8(3) Statement of changes in equity ........................................................................................................................... 9(4) Statement of cash flows .................................................................................................................................... 11(5) Notes to financial statements ............................................................................................................................ 12
Notes on premise of going concern................................................................................................................... 12
Income (loss) of entities accounted for using equity method ............................................................................ 12
Segment information ......................................................................................................................................... 12
Per share information ........................................................................................................................................ 12
Subsequent events ............................................................................................................................................. 12-1-

1. Overview of operating results(1) Overview of operating results for the fiscal year ended February 29, 2024
During the fiscal year under review (March 1, 2023 to February 29, 2024), Japan’s economy was on amoderate recovery trend, reflecting progress back toward normal economic activities and the return ofinbound demand. On the other hand, the outlook remained uncertain due to concerns about the risk of adownturn in the global economy, with for example, rising prices due to the prolonged surge in resource
and raw material prices, and monetary tightening policies in various countries.
Under these circumstances, during the fiscal year under review the Company carried out the following
business activities with the aim of developing unique drugs based on unconventional mechanisms andbringing them to market.
(i)

TMS-007-related activities

Biogen MA Inc. (hereinafter, “Biogen”) was developing TMS-007 which they acquired from the Company
in May 2021 for the indication of acute cerebral infarction. Biogen had planned to initiate late-stage Phase
2 clinical trial in the first half of 2023, and the outline of the trial was registered on ClinicalTrials.gov on
March 10, 2023 (estimated start date April 17, 2023). However, they announced on April 25, 2023 in a
first quarter 2023 earnings release that the initiation of the Phase 2 clinical trial was suspended and thedevelopment plan of TMS-007 would be reevaluated.
Subsequently, Biogen notified the Company that they considered transferring the option agreement
between the Company and Biogen entered into in 2018 (the “Option Agreement”) to Ji Xing
Pharmaceuticals Hong Kong Limited (Hong Kong, hereinafter the group companies including Ji Xing
Pharmaceuticals Limited are collectively referred to as “JIXING”), a wholly owned subsidiary of Ji Xing
Pharmaceuticals Limited (Cayman Islands). The transfer took place on January 11, 2024. Concurrently,
the Company entered into discussions with JIXING and RTW Investments, LP (“RTW”), an investmentcompany based in New York, USA, which owns more than 80% of JIXING’s shares. The Company
entered into a series of agreements including amendments to the Option Agreement entailing to form analliance with JIXING and RTW (“Alliance”).
A summary of the Alliance is as follows:A) Option Agreement
・ The amended Option Agreement was signed between the Company and JIXING on January 11,
2024.
・ JIXING shall take over the contractual position of the Option Agreement from Biogen and acquire
the worldwide intellectual property rights of the SMTP compounds including TMS-007 and TMS008.
・ The Company shall acquire the rights to develop and market TMS-007 in Japan from JIXING at
no cost. The Company shall also acquire the rights to develop and market the grant-backcompounds, including TMS-008, for specific indications at no cost.
・ The Company and JIXING shall establish a Joint Development and Commercialization
Committee to regularly exchange information and hold discussions on the development of TMS007.
・ The Company may receive the following considerations based on the progress of development
and commercialization of TMS-007 by JIXING.
a. Development milestones up to a maximum total of US$12.5 million
b. Sales milestones up to a maximum total of US$355 millionc. Royalties based on a tiered rate in the high single digits to low teens on TMS-007 sales interritories excluding Japan
Development plan for TMS-007 shall be examined by JIXING.
・JIXING shall cover 75% of the development expenses in Japan incurred by the Company as partof the global development of TMS-007, up to a maximum of US$10 million.

-2-B) Royalty-free License for Development and Marketing Rights of JX09 in Japan・

JX09 is an oral, novel, small molecule aldosterone synthesis inhibitor being developed by JIXING
for the treatment of patients with treatment-resistant or uncontrolled hypertension and a Phase 1
clinical trial commenced in February 2024.

・

The Company shall acquire an exclusive, royalty-free license to develop JX09 in Japan fromJIXING, and JIXING shall cover 75% of the development expenses incurred by the Company inJapan as part of the global development of JX09, up to a maximum of US$5 million.

C) Acquisition of JIXING shares without consideration
・The Company acquired US$5 million worth of JIXING common stock for no consideration.

D) Acquisition of the Company’s shares by RTW・

RTW is a leading global investor focused on the healthcare industry, with approximately US$5.4
billion in assets under management as of September 30, 2023.

・

RTW established JIXING in 2019, has led several subsequent rounds of additional investment,
and currently owns over 80% of JIXING through the funds it manages.

・The funds managed by RTW acquired the shares issued by the Company at a price of ¥187 pershare, for a total of ¥684 million. The share price was determined by the volume weighted average
price (VWAP) of the Company’s common shares in regular trading during the last five trading
days until January 10, 2024, the business day prior to the Board of Directors’ resolution regarding
the issuance of the shares.

(ii) JX09-related activities
JX09 is an oral, novel, small molecule aldosterone synthesis inhibitor being developed by JIXING for thetreatment of patients with treatment-resistant or uncontrolled hypertension. A Phase 1 clinical study withhealthy subjects began in February 2024 in Australia. JX09 has demonstrated excellent aldosterone
reduction activity as well as a good safety profile in preclinical studies, suggesting a potential to become
the best-in-class drug.
The Company acquired the exclusive rights to develop and market JX09 in Japan through the alliance withJIXING and entered into the definitive license agreement with JIXING for the purpose on February 23,
2024.
(iii) TMS-008-related activities
TMS-008 is currently being developed for the treatment of acute kidney injury and other indications. After
preparations for chemistry, manufacturing, and control aspects for Phase I clinical trials and safety tests
based on Good Laboratory Practice, preliminary negotiations with the authorities (Pharmaceuticals andMedical Devices Agency) were completed resulting in a Clinical Trial Plan Notification submitted on
February 29, 2024. In terms of the framework for implementing the clinical trials, the contract researchorganization, the clinical trial facility, and the contract laboratory testing company have been chosen withpreparations underway for the start of the clinical trials. Regarding patents related to this development, apatent in Japan was granted in September 2023 and a patent in China was granted in December 2023. The
patents are expected to be examined in major countries. The Company had obtained a royalty-free license
to use such patents from Biogen, but as mentioned above, the contractual rights have been transferred from
Biogen to JIXING. As such, the Company continues to be granted such royalty-free license from JIXING.
As for TMS-009, which is positioned as a backup compound to TMS-008, manufacturing methods areunder evaluation.
(iv) Pipeline expansion-related activities
The Company has made substantial efforts in terms of research and development to expand its pipeline
through internal and external initiatives. With regard to internal initiatives, the Company continued tosearch for novel soluble Epoxide Hydrolase (sEH) inhibitors, leveraging the Company’s knowledge andexperience on the enzyme accumulated through development of SMTP compounds. Utilizing multiple-3-

approaches, including optimization of AI-generated compounds and screening of a natural compound
library, potential candidates for new sEH inhibitors have been searched and evaluated. The efforts further
continue.
With regard to external initiatives, the Company continued to search for and evaluate early-stage programs
being developed in academic research institutions and biopharma companies. On May 8, 2023, an option
agreement with Hokkaido University was signed for exclusive evaluation and licensing of a drug candidate
substance, which has completed the first phase of the exclusive evaluation period and is now under thesecond phase of evaluation. In addition to toxicity tests, verifying efficacy, and mechanism analysis,
research on its marketability is also underway. Furthermore, for this drug candidate, the Company enteredinto a three-way joint research agreement that includes Kanazawa University. In addition, the Company
continues to evaluate another project for which an option agreement was signed Hokkaido University in
July 2022, including an examination of GMP manufacturing grade drug substances and formulations.
The Company established the Joint Research Chair at Tokyo University of Agriculture and Technology in
April 2023 (see item (v) below) to cultivate new pipeline candidates by leveraging the collaboration withthe said university where the SMTP compounds were discovered and developed.
(v) Strengthening the research and development system
Effective on April 1, 2023, Keiji Hasumi, Ph.D., a co-founder and chairman of the Company, was assigned
as a full-time Chief Scientific Officer, following his retirement as professor at Tokyo University ofAgriculture and Technology on March 31, 2023, and leads research activities in the Company.
Accordingly, the research and development activities of the Company are led by Dr. Hasumi, Chief
Scientific Officer and Noriaki Inamura, Ph.D., Executive Vice President, Development, as summarized
below.
In addition, in April 2023, the Joint Research Program with Tokyo University of Agriculture andTechnology sponsored by the Company was established in order to strengthen its research anddevelopment functions.
Name
Keiji Hasumi
Ph.D.
Noriaki Inamura
Ph.D.

Title

New responsibility

Old responsibility

Chief Scientific Officer

Research-

Executive Vice
President, Development

Development

Research anddevelopment

As a result of these activities, operating expenses for the fiscal year ended February 29, 2024 totaled¥943,253 thousand, roughly at level with the forecast announced on April 14, 2023, including ¥607,728
thousand in research and development expenses, mainly development expenses for TMS-008, and¥335,525 thousand in other selling, general and administrative expenses. Based on these results, operating
loss for the fiscal year ended February 29, 2024 was ¥943,253 thousand (compared to operating loss of¥520,149 thousand in the previous fiscal year), ordinary loss was ¥943,395 thousand (compared toordinary loss of ¥861,471 thousand in the previous fiscal year), and net loss was ¥960,040 thousand dueto the recording of ¥15,694 thousand in impairment losses on non-current assets as extraordinary losses(compared to net loss of ¥860,925 thousand in the previous fiscal year).
As the Company operates a single segment of drug development business, operating results by segment
are omitted.
(2) Overview of financial position for the fiscal year ended February 29, 2024
AssetsTotal assets as of the end of the fiscal year ended February 29, 2024 were ¥3,554,754 thousand, a decreaseof ¥235,460 thousand from the end of the previous fiscal year.
This was mainly due to a decrease of ¥138,037 thousand in cash and deposits, which was a result of
payments for operating expenses such as research and development expenses despite proceeds from theissuance of new shares through third-party allotment etc., and a decrease of ¥89,056 thousand in advancepayments to suppliers for conducting various trials.
-4-Liabilities
Total liabilities as of the end of the fiscal year ended February 29, 2024 were ¥97,689 thousand, an increaseof ¥21,527 thousand from the end of the previous fiscal year.
This was mainly due to an increase of ¥19,648 thousand in accrued expenses for outsourced studies.
Net assets
Net assets as of the end of the fiscal year ended February 29, 2024 were ¥3,457,065 thousand, a decreaseof ¥256,988 thousand from the end of the previous fiscal year.
This was due to retained earnings brought forward decreasing, resulting from the recording of ¥960,040
thousand in net loss despite share capital and legal capital surplus each increasing by ¥345,662 thousand,resulting from the issuance of new shares.
(3) Overview of cash flows for the fiscal year ended February 29, 2024
Cash and cash equivalents (“cash”) as of the end of the fiscal year ended February 29, 2024 were
¥3,446,630 thousand, a decrease of ¥138,037 thousand from the end of the previous fiscal year. The
respective cash flows for the fiscal year ended February 29, 2024 and factors thereof are as follows.
Cash flows from operating activities
Net cash used in operating activities totaled ¥822,814 thousand (compared to ¥688,423 thousand used in
the previous fiscal year). This was mainly due to the recording of ¥959,090 thousand in loss before income
taxes as a result of investment in the development of TMS-008 and other research and development.
Cash flows from investing activities
Net cash used in investing activities totaled ¥3,356 thousand (compared to ¥13,721 thousand used in theprevious fiscal year). This was due to purchase of property, plant and equipment.
Cash flows from financing activities
Net cash provided by financing activities totaled ¥688,133 thousand (compared to ¥1,688,809 thousandprovided in the previous fiscal year). This was mainly due to ¥681,136 thousand in proceeds from issuanceof shares.
(4) Future outlook
The Company’s policy for future outlook is to postpone the disclosure of its earnings forecasts for the time
being. It is difficult to carry out earnings forecasts right now, since the Company is presently at a stage of
implementing upfront investment to advance research and development without having products brought
to market, and its financial results are influenced significantly by milestone revenue and other external
events. Once the Company is in the position of being able to forecast stable revenue from royalty and otherrecurrent revenue, it will disclose its earnings forecasts.
In the fiscal year ending February 28, 2025, the Company will work toward the development of eachpipeline product at the clinical stage, adding TMS-007 and JX09, for which we have newly acquired therights in Japan, to TMS-008, which has been under development for some time. In addition, it will work
to expand its pipeline by 1) searching for candidate compounds for sEH inhibitors, leveraging its drug
discovery expertise, and 2) introducing early-stage programs from academia, research institutions, andbiopharma companies.
In light of this, operating expenses for the fiscal year ending February 28, 2025 are expected to be as
follows.


Research and development expenses are expected to be in the range of ¥750 million to ¥1,100 million.



Other selling, general and administrative expenses are expected to be in the range of ¥300 million to¥400 million.

-5-2. Basic rationale for selection of accounting standards
As the Company does not prepare consolidated financial statements, it has prepared financial statements inaccordance with Japanese GAAP, giving consideration to the burden of structural adjustments for preparing
financial statements in accordance with the International Financial Reporting Standards (IFRS) and other factors.

-6-

3. Financial statements and significant notes thereto(1) Balance sheet(Thousands of yen)
As of February 28, 2023

As of February 29, 2024

3,584,667
223
121,715
12,97047,03336
3,766,646

3,446,630–
32,65817,36754,925–3,551,581

3,828
62,994(54,681)
12,142

3,943
64,825(68,769)
0

4,112
4,112

–
–

7,314
7,314
23,5683,790,215

3,172
3,172
3,172
3,554,754

28,69019,557
19,3152,447
6,151
76,161
76,16132,85339,206
14,195
2,956
8,478
97,68997,6891,160,988

1,506,650

1,410,487
926,643
2,337,131

1,756,149
926,6432,682,793

215,933
215,933–
3,714,053–
3,714,053
3,790,215(744,106)(744,106)(2)3,445,335
11,7293,457,065
3,554,754

AssetsCurrent assets
Cash and deposits
Supplies
Advance payments to suppliers
Prepaid expenses
Consumption taxes refund receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Tools, furniture and fixtures
Accumulated depreciation
Total property, plant and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - otherAccrued expenses
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Share acquisition rights
Total net assets
Total liabilities and net assets-7-

(2) Statement of income(Thousands of yen)
Fiscal year ended
February 28, 2023
Operating revenue
Operating expenses
Research and development expenses
Other selling, general and administrative expenses
Total operating expenses
Operating loss
Non-operating income
Subsidy income
Interest on tax refund
Other
Total non-operating income
Non-operating expenses
Going public expenses
Share issuance costs
Other
Total non-operating expenses
Ordinary loss
Extraordinary losses
Impairment losses
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net loss-8-

Fiscal year ended
February 29, 2024––

297,895
222,254
520,149(520,149)

607,728
335,525
943,253(943,253)

–
89
1
91

3,202
42
83
3,328

328,186
12,598628
341,413(861,471)

–
3,187
282
3,470
(943,395)––(861,471)
950(1,495)(545)(860,925)

15,694
15,694(959,090)
950–
950(960,040)

(3) Statement of changes in equity
Fiscal year ended February 28, 2023
(Thousands of yen)
Shareholders’ equity
Capital surplus

Share capital

Balance at beginning of
periodRetained earnings
Other retained
earnings

Legal capital Other capital Total capital Legal retained
surplussurplussurplusearnings

100,000

349,499

1,060,988

1,060,988

926,643

1,276,142–

Retainedearnings
brought
forward1,076,859

Total
shareholders’
Total retained
equityearnings

1,076,859

Total net
assets2,453,001

2,453,001

2,121,977

2,121,977(860,925)(860,925)

Changes during period
Issuance of new shares

1,060,988

Net loss
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(860,925)(860,925)–
1,060,988

1,060,988–

1,060,988–(860,925)(860,925)

1,261,052

1,261,052

1,160,988

1,410,487

926,643

2,337,131–

215,933

215,933

3,714,053

3,714,053-9-

Fiscal year ended February 29, 2024
(Thousands of yen)
Shareholders’ equity
Capital surplus

Share capital

Balance at beginning of
periodRetained earnings
Other retained
earnings

Legal capital Other capital Total capital Legal retained
surplussurplussurplusearnings

1,160,988

1,410,487

345,662

345,662926,643

2,337,131–

Retainedearnings
brought
forward215,933

Total retained
earnings

215,933

Total
shareholders’equityTreasuryshares–3,714,053

Changes during period
Issuance of new shares

345,662

691,324

Net loss
Purchase of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(960,040)(960,040)(2)(2)

345,662

345,662–

345,662–(960,040)(960,040)(2)(268,718)

1,506,650

1,756,149

926,6432,682,793–(744,106)(744,106)(2)3,445,335

ShareacquisitionrightsBalance at beginning of
period(960,040)

Total net
assets–3,714,053

Changes during period
Issuance of new shares

691,324

Net loss(960,040)

Purchase of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
period11,72911,72911,729(256,988)

Balance at end of period

11,7293,457,065(2)- 10 -

(4) Statement of cash flows(Thousands of yen)
Fiscal year ended
February 28, 2023
Cash flows from operating activities
Loss before income taxes
Depreciation
Impairment losses
Increase (decrease) in provision for bonuses
Share-based payment expenses
Subsidy income
Going public expenses
Share issuance costs
Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued expenses
Increase (decrease) in accounts payable - other
Increase/decrease in other assets/liabilities
Subtotal
Subsidies received
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
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Payment for going public expenses
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

Fiscal year ended
February 29, 2024

(861,471)
6,596
–
950
–
–
328,186
12,598(223)(80,644)(959,090)
6,950
15,694509
11,729(3,202)–
3,187
223
89,056

21,554(7,892)807(140,875)
25,048(687,473)–(950)(688,423)

19,648
4,213(6,095)(825,066)
3,202
(950)
(822,814)(12,721)(1,000)(13,721)(3,356)–(3,356)

2,103,379

681,136

6,000

7,000

(420,569)–
1,688,809
986,6642,598,002
3,584,667–(2)
688,133(138,037)
3,584,667
3,446,630

(5) Notes to financial statements
Notes on premise of going concern
Not applicable.
Income (loss) of entities accounted for using equity method
Not applicable.
Segment information[Segment information]
Segment information is omitted as the Company operates a single segment of drug development business.
Per share information(Yen)
Fiscal year ended February 28, 2023

Fiscal year ended February 29, 2024

Net assets per share

101.5585.48

Basic loss per share(25.28)(26.02)

Notes: 1. Diluted earnings per share is not stated because, although potential shares exist, a basic loss per share wasrecorded.
2. Basis for calculation of basic loss per share is as follows:
Fiscal year ended February 28, 2023
Net loss (Thousands of yen)

Fiscal year ended February 29, 2024

(860,925)(960,040)––

Net loss related to common shares(Thousands of yen)

(860,925)(960,040)

Average number of common shares
outstanding during the period(Shares)

34,053,422

36,896,144

Value not attributable to shareholdersof common shares (Thousands ofyen)

Overview of potential shares notincluded in the calculation of thediluted earnings per share because of
the lack of dilution effects

4 types of share acquisition rights(Number of share acquisition rights:
55,842 units, potential shares:
2,233,680 shares)

5 types of share acquisition rights(Number of share acquisition rights:
55,773 units, potential shares:
2,331,780 shares)

3. Basis for calculation of net assets per share is as follows:
As of February 28, 2023
Total net assets (Thousands of yen)

As of February 29, 2024

3,714,053

3,457,065

Amount deducted from total net
assets (Thousands of yen)–

11,729[of which, share acquisition rights(Thousands of yen)][–][11,729]

Net assets related to common shares(Thousands of yen)

3,714,053

3,445,335

Number of common shares used to
calculate net assets per share (Shares)

36,574,880

40,304,357

Subsequent events
Not applicable.

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