Financial Results for the Three Months ended June 30, 2024
[Japanese GAAP] (non-consolidated)
August 9, 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 dividend payment commencement:－Supplementary materials for financial statements: NoneBriefing of financial results: None(Millions of yen, rounded down to the nearest million)
1. Financial results for the three months ended June 30, 2024 (April 1, 2024 – June 30, 2024)(1) Results of Operation(Percentages represent changes from the same period of previous year)
Net sales
Three months ended
June 30, 2024
June 30, 2023

Millionyen
00

Operating income
%

66.7
-84.2

Millionyen-326-293

Ordinary income%－－Millionyen-329-293

Net income%－－Millionyen-330-295%－－

Fully diluted net
income pershare
Three months ended
Yen
Yen
June 30, 2024
-4.66－
June 30, 2023
-4.70－(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 ofJune 30, 2024
March 31, 2024
(Reference) Shareholders’ equity

Net assets

Equity ratio

Million yen
Million yen
822
671
1,230
978
As of June 30, 2024 648 million yen
As of March 31, 2024 956 million yen

%
78.9
77.7

2. Dividends
Annual dividends per share
1Q
Yen－－

2Q
Yen
0.00

3Q
Yen－

4Q
Yen
0.00

TotalYen
0.00

Fiscal year ended March 31, 2024
Fiscal year ending March 31, 2025
Fiscal year ending March 31, 2025
0.00
0.00
0.00
－(Forecast)(Note) 1. There is no change in dividends information from the latest official forecast.
3. Projected financial results for the fiscal year ending March 31, 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%%%%Yenyenyenyenyen
Full year0-31.3-925-925-927-13.08－－－(Note) 1. The Company manages business results on an annual basis, and therefore only the full-year financial forecasts
are disclosed.
2. There is no change in projected financial results from the latest official forecast.

[Notes](1) Adoption of accounting treatment specific to the preparation of quarterly non-consolidated financial statements: None
(2) 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(3) Number of shares outstanding (common stock)1) Number of shares outstanding at theend of the period (including treasurystock)2) Number of shares of treasury stock at
the end of the period
3) Average number of shares during theperiod

As of March
70,741,300 shares
31, 2024

As of June30, 2024

71,141,300 shares

As of June30, 2024
3 months
ended June30, 2024

As of March
1 share31, 2024
3 months
70,963,277 shares ended June 62,891,199 shares30, 2023
1 share* Review of the Japanese-language original of the attached quarterly non-consolidated financial statements by certified
public accountants or an audit firm: None
* 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, etc. (3) Outlook for the Fiscal Year Ending March 31, 2025” on page 4 of the attachment.

Contents of the Attachment
1. Overview of Business Results, etc. .............................................................................................................. 2(1) Overview of Operating Results for the Three Months Ended June 30, 2024 ........................................... 2(2) Overview of Financial Position for the Three Months Ended June 30, 2024 ............................................ 4(3) Outlook for the Fiscal Year Ending March 31, 2025 ................................................................................. 4
2. Financial Statements and Primary Notes ....................................................................................................... 5(1) Balance Sheets ......................................................................................................................................... 5(2) Statements of Operations ......................................................................................................................... 6(3) Notes to Financial Statements .................................................................................................................. 7(Segment information, etc.) ....................................................................................................................... 7(Notes on significant changes in shareholders’ equity) ............................................................................. 7(Notes on going concern assumption) ....................................................................................................... 7(Supplementary information on cash flows) .............................................................................................. 7(Significant subsequent events) ................................................................................................................ 7―1―1. Overview of Business Results, etc.
(1) Overview of Operating Results for the Three Months Ended June 30, 2024
BrightPath Biotherapeutics Co., Ltd. (the “Company”) has built an environment for exploring anddeveloping cancer immunotherapeutics (drugs that treat cancer by utilizing the immune system) during
the three months ended June 30, 2024.
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.
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 themanufacturing 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. AtChiba 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 2020 and finished in January 2024. This was the world’s first clinicalapplication of iPS-NKT in cellular immunotherapy. This clinical trial demonstrated acceptable
tolerability and safety as the primary endpoints and confirmed preliminary anti-tumor activity, as shownby 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 inmany regions of the world.
<CAR-iPSNKT cell therapy: BP2202>
BP2202 (CAR-iPSNKT) is a new CAR-T cell therapy2 using unmodified iPS-NKT cells with chimericantigen receptors (CAR) that can recognize cancer antigens with the aim of enhancing tumor killingcapabilities.
Compared to non-genetically edited iPS-NKT cells, HER2 CAR iPS-NKT experimentally
manufactured by the Company exhibits enhanced anti-tumor effects in mice tests.
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. 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 cell therapies to treat solid tumors, from which a larger number ofpeople suffer, faces a challenge due to the 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 this challenge by developing a technology using CAR-Tcells rich in stem cell memory phenotypes. Owing to the high replicability and long-term viability of―2―

such CAR-T cells in the patient's body, BP2301 is a promising solution to enhance resistance to Tcell exhaustion and to achieve long-lasting anti-tumor effects in the tumor microenvironment. Thissuccess 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 nonviral gene transfer method.
In the Phase 1 investigator-initiated clinical trial started in May 2022 at Shinshu University, thetreatment of HER2-positive relapsed or advanced sarcomas and gynecological malignancies is being
tested.
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.
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
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.
As a consequence of all of the foregoing, the Company recorded the financial results for the threemonths ended June 30, 2024 as follows : operating loss of 326,977 thousand yen (293,435 thousandyen in the corresponding period of the prior year), ordinary loss of 329,946 thousand yen (293,875
thousand yen in the corresponding period of the prior year), and net loss of 330,421 thousand yen(295,756 thousand yen in the corresponding period of the prior year).
<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 thatactivates 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 and thematuration of dendritic cells. Mature dendritic cells further proliferate and activate killer T-cells belonging
to the acquired immune system, thereby synergistically enhancing anti-tumor effects.
2. CAR-T cell therapy
Chimeric antigen receptor T-cell therapy. Chimeric antigen receptors that recognize antigens expressedby cancer cells are gene-transfected into T-cells (a type of lymphocyte with anti-tumor immunity), which
are then grown in culture and administered.
―3―3. Immune checkpoint molecule
A group of molecules that suppress the immune response to self as well as suppress excessive
immune responses in order to maintain immune homeostasis. In cancer immunity, they are present toprevent the attack on self by over-activation, but in the carcinogenic process, they are used by cancer
cells to evade attack from the immune system and to proliferate.
4. Fully personalize neoantigen vaccine
A tailor-made cancer vaccine that searches for neoantigens in cancer cells of individual patients.
Clinical trials currently conducted overseas by academia and leading development companies include
those for mRNA vaccines, that is, lipid nanoparticles (LNP) loaded with mRNAs coding for neoantigens.
(2) Overview of Financial Position for the Three Months Ended June 30, 2024
(i) Assets
As of June 30, 2024, total assets were 822,766 thousand yen, a decrease of 407,490 thousand yen
from the end of the prior fiscal year. The main factors for this include a decrease of 394,778 thousand
yen due to expenditures related to research and development, etc. in cash and deposits.
(ii) Liabilities
As of June 30, 2024, total liabilities were 151,200 thousand yen, a decrease of 100,069 thousand
yen from the end of the prior fiscal year. The main factors for this include a decrease of 112,500
thousand yen in current portion of bonds payable.
(iii) Net assets
As of June 30, 2024, net assets were 671,565 thousand yen, a decrease of 307,421 thousand yen
from the end of the prior fiscal year. The factor for this include a decrease of a net loss of 330,421
thousand yen. As a result of the above, equity ratio was 78.9% compared to 77.7% at the end of theprior fiscal year.
(3) Outlook for the Fiscal Year Ending March 31, 2025
Our recent business outlook is the same as the projected financial results announced on May 10,2024.

―4―3. Financial Statements and Primary Notes(1) Balance Sheets(Thousands of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
OtherTotal current assets

1,057,360
6662,581
30

123,594

110,857

1,180,960

773,469

Non-current assets
Property, plant and equipment

00

Intangible assets
Investments and other assets

049,296049,296

Total non-current assets

49,29649,296

1,230,257

822,766

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

20
112,500

Income taxes payable
Other

12,81565,675－
5,205
82,925

7

Total current liabilities

191,011

88,138Non-current liabilities
Provision for retirement benefits

37,61040,390Asset retirement obligations
Other

22,648022,6710Total non-current liabilities
Total liabilities

60,25863,061

251,270

151,200

Net assets
Shareholders' equity
Capital stock

650,661

662,227

Capital surplus
Retained earnings

2,959,195-2,653,715

2,970,761-2,984,136

Treasury stock
Total shareholders’ equity-0-0956,141

648,852

Share acquisition rights

22,84522,713

Total net assets

978,987

671,565

1,230,257

822,766

Total liabilities and net assets―5―(2) Statements of Operations(Thousands of yen)Three months ended
June 30, 2023Net sales
Cost of sales
Gross profit

Three months ended
June 30, 2024
1641228
721

Selling, general and administrative expenses

293,447

326,998

Operating income-293,435-326,977

Other

186

－

Total non-operating income

186－

Non-operating expenses
Foreign exchange losses

626

2,308

Share issuance cost－660

Non-operating income

Total non-operating expenses
Ordinary income
Extraordinary losses
Impairment loss

626

2,968

-293,875-329,946

1,406－

Total extraordinary losses

1,406

－

Income before income taxes-295,281-329,946

Income taxes - current

475

475

Total income taxes

475475-295,756-330,421

Net income―6―(3) Notes to Financial Statements(Segment information, etc.)

Segment information is omitted as the Company operates in the single business segment of thepharmaceutical development business and there is no other significant segment information.
(Notes on significant changes in shareholders’ equity)
During the three months ended June 30, 2024, 400,000 shares of common stock were issued for total issue
price of 23,000 thousand yen by execution of the series 16 warrants to increase capital stock and legal capitalsurplus by 11,566 thousand yen each, including 132 thousand yen transferred from share acquisition rights. Asof June 30, 2024, capital stock was 662,227 thousand yen and capital surplus was 2,970,761 thousand yen.
(Notes on going concern assumption)
Not applicable.
(Supplementary information on cash flows)
Statements of cash flows for the three months ended June 30, 2024 are omitted due to the quarterly closing.
Information of depreciation including amortization of intangible assets for the three months ended June 30, 2024
is shown below:(Thousands of yen)Three months ended
June 30, 2024

Three months ended
June 30, 2023
Depreciation48－(Significant subsequent events)(Exercise of the series 16 warrants)
During the period from July 1, 2024 to July 18, 2024, 4,250,000 shares of common stock have been issued
for total issue price of 276,250 thousand yen by execution of the series 16 warrants to increase capital stockand legal capital surplus by 138,826 thousand yen each, including 1,402 thousand yen transferred from shareacquisition rights.
The Company acquired all remaining the series 16 warrants on July 18, 2024, and then immediately
cancelled them.
(Payment of the series 17 to 19 warrants)
The Company issued the 17th, 18th and 19th series of warrants (“Series 17 warrants”, “Series 18 warrants”
and “Series 19 warrants” respectively, and “Warrants” collectively) to Evo Fund by way of the so-called thirdparty allotment on July 5, 2024 following resolutions by the board of directors dated June 19, 2024.

The

payment was completed on July 5, 2024.
<Details of issue price of Warrants>
Series 17 warrants: 1,350 thousand yen (150,000 warrants, 9 yen per warrant)
Series 18 warrants: 960 thousand yen (120,000 warrants, 8 yen per warrant)
Series 19 warrants: 360 thousand yen (90,000 warrants, 4 yen per warrant)(Payment of the 3rd series of unsecured straight bonds)
The Company issued the 3rd series of unsecured bonds amounting to 500,000 thousand yen through a
private placement to Evo Fund on August 1, 2024.

The payment was done on the same day.

(Exercise of the series 17 warrants)
During the period from July 8, 2024 (the start date of the exercise period) to August 9, 2024, 5,850,000
shares of common stock have been issued for total issue price of 358,830 thousand yen by execution of the―7―

series 17 warrants to increase capital stock and legal capital surplus by 179,678 thousand yen each, including
526 thousand yen transferred from share acquisition rights.

―8―