DISCLAIMER: This document was prepared using our machine translation, and no manual modification has been made to thetranslated contents. This document is to be used solely as a reference and in cases where any differences occur between English
version and the original Japanese version, the Japanese version shall prevail. The consolidated financial statements in thisdocument are unaudited.

Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28,
2023 (Japanese GAAP)
January 13, 2023
Company name

Listing Market TSE

MetaReal Corp.

Stock Code6182

URL https://www.metareal.jp

Representative(Title)Representative Director and CEO(Name) Junichi Goishi

Director, General Manager of Group
Contact(Title)(Name) Taketo Arakawa
TEL 03-6685-9570
Administration Division
Scheduled date of filing of quarterly
Scheduled date of commencement of dividend
January 13, 2023
report:payment
Preparation of supplementary materials for quarterly financial results: Yes-

Holding of quarterly financial results briefings: Yes(Figures are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2023 (March 1, 2022-November 30,
2022)(1) Consolidated Results of Operation (Cumulative)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Q3 FY2/23
3,254
Q3 FY2/22
3,074(Note) Comprehensive income Q3 FY2/23

Operating income% Millions of yen% Millions of yen
5.9
369
154.0
397
4.3
145
147.1
167
155Millions of yen(-%) Q3 FY2/22

Net income per share

Net income attributableto owners of parent% Millions of yen
%
137.0
155
511.6
△80
△80Millions of yen (-%)

Ordinary income

Diluted net income per shareYen
Yen
Q3 FY2/23
14.60
14.37
Q3 FY2/22△7.54(Note) [Accounting Standard for Revenue Recognition] (ASBJ Statement No. 29, March 31, 2020) and other accounting standards
have been applied since the beginning of the first quarter of the consolidated fiscal year under review. Figures related to thethird quarter of the fiscal year ending February 28, 2023, represent figures after the application of these accounting standards.
Year-on-year changes are calculated by comparing figures for the third quarter of the fiscal year ending February 28, 2023,
following application of the relevant accounting standards etc., with those for the third quarter of the fiscal year ended
February 28, 2022, prior to application of the relevant accounting standards.
(2) Consolidated Financial Position

Q3 FY2/23
FY2/22

Total assets
Millions of yen
4,475
4,908

Net assets
Millions of yen
1,259
1,098

Shareholders' equity ratio
%
27.2
21.5

(Reference) Shareholders' equity Q3 FY2/23
1,218Millions of yen
FY2/22
1,057Millions of yen(Note) [Accounting Standard for Revenue Recognition] (ASBJ Statement No. 29, March 31, 2020) and other accounting standards
have been applied since the beginning of the first quarter of the consolidated fiscal year under review. Figures related to thethird quarter of the fiscal year ending February 28, 2023, represent figures after the application of these accounting standards.
2. Dividend payment
Annual dividend per share
End of Q1

End of Q2
Yen
0.00
0.00

Yen
FY2/22
FY2/23
FY2/23 (Forecast)(Note) Revisions to the most recently announced dividend forecast: None

End of Q3

Year-end
Yen
-

Total
Yen
0.00

Yen
0.00

0.00

0.00

3.Consolidated Business Forecasts for the Fiscal Year Ending February 28, 2023 (March 1, 2022 to February 28, 2023)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Ordinary income

Net income attributable toowners of parent

Net income per
share% Millions of yen% Millions of yen% Millions of yen
%
Yen
4,240
1.9
400
335.1
Full year(Note) 1. Revisions to the most recently announced business forecasts: Yes
2. For details of the revisions to the consolidated business forecasts, see the [Notice Regarding Revisions to the Consolidated
Business Forecasts] announced on January 13, 2023.
Millions of yen◆Consolidated Business Forecasts by Segment(Percentages indicate year-on-year changes.)
Net sales
Full year

Millions of yen

Operating income

MT business

2,870

%
△2.2

Millions of yen
570

%
49.8

HT business

1,360

11.5

250

37.2

Metaverse business

10

121.1

△450

-

310.6
Other corporate expenses
30(Note) 1. For details of revisions to the consolidated business forecasts by segment, please refer to the [Notice of Revisions to theConsolidated Business Forecasts] announced on January 13, 2023.
2. While it is difficult to forecast the state of to which COVID-19 will be brought under control, we assume that the pandemic
will continue through the fiscal year ending February 28, 2023.
3. [Ordinary income] and [Net income per share] in the consolidated business forecasts for the fiscal year ending February 28,
2023 are not disclosed at this time because they include items that are highly difficult to forecast such as non-operating
income (loss) and extraordinary income (loss). We plan to disclose specific figures promptly once we are able to makemore accurate projections.
4. [Accounting Standard for Revenue Recognition] (ASBJ Statement No. 29, March 31, 2020) and other standards have been
applied since the beginning of the fiscal year ending February 28, 2023. The above forecasts are based on figures after theapplication of these accounting standards. Year-on-year changes are calculated by comparing figures for the fiscal year
ending February 28, 2023, following application of the relevant accounting standards etc., with those for the fiscal year
ended February 28, 2022, prior to application of the relevant accounting standards.

※ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of
consolidation): None
(2) Adoption of special accounting methods for presenting quarterly consolidated financial statements: Yes(Note) For details, please refer to [2.Quarterly Consolidated Financial Statements, (3) Notes on Quarterly Consolidated Financial
Statements (Application of Accounting Procedures Specific to Preparation of Quarterly Consolidated Financial Statements)]
on page 7 of the Appendix.
(3) Changes in accounting policies, changes in accounting estimates and restatements① Changes in accounting policies due to revision of accounting standards, etc.: Yes② Changes in accounting policies other than ①: None
③ Changes in accounting estimates: None
④ Restatements: None
(Note) For details, please refer to [2.Quarterly Consolidated Financial Statements, (3) Notes on Quarterly Consolidated Financial
Statements (Changes in Accounting Policies)] on page 7 of the Appendix.
(4) Number of shares outstanding (common stock)① Number of shares outstanding at the end of
the period (including treasury stock)

Q3 FY2/23

10,688,460shares

FY2/22

10,657,660shares② Treasury shares at the end of the year

Q3 FY2/23

468shares

FY2/22468shares③ Average number of shares outstanding during
Q3 FY2/23
the period (cumulative)

10,682,490shares

Q3 FY2/22

10,657,213shares※ This quarterly financial report is not subject to the quarterly review by a certified public accountant or an auditing firm.
※ Explanations and other special notes concerning the appropriate use of business forecasts(Cautionary Statement with Respect to Forward-Looking Statements)
Forecasts of future performance and other forward-looking statements in this document are based on information currently available to
the Company and certain assumptions that the Company deems to be reasonable at the time this report was prepared. The Company
makes no promises concerning their achievement. Actual results may differ significantly from the forecasts due to various factors.
Please refer to [1. Qualitative Information on Consolidated Financial Results (3) Consolidated Business Forecasts] on page 3 of the
Appendix for the assumptions underlying the forecasts and cautions concerning the use thereof.
(Method of Obtaining Financial Results Briefing Materials)
Supplementary materials for financial results were disclosed on the TDnet on the same date.

○ Table of Contents of the Appendix
1. Qualitative Information on Quarterly Financial Results

2(1) Results of Operations ……………………………………………………………………………………………………

2(2) Financial Position …………………………………………………………………………………………………………

2(3) Consolidated Business Forecasts …………………………………………………………………………………………

3

2. Quarterly Consolidated Financial Statements and Major Notes ……………………………………………………………

4(1) Quarterly Consolidated Balance Sheets …………………………………………………………………………………

4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income …

5

Quarterly Consolidated Statements of Income
For the Nine-month Period ………………………………………………………………………………………

5

Quarterly Consolidated Statements of Comprehensive Income
For the Nine-month Period ………………………………………………………………………………………

6(3) Notes on Quarterly Consolidated Financial Statements …………………………………………………………………

7(Notes on Going Concern Assumptions) ………………………………………………………………………………

7(Notes on Significant Changes in Shareholders' Equity) ………………………………………………………………

7(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial Statements)

7(Changes in Accounting Policies) ………………………………………………………………………………………

7(Additional Information) ………………………………………………………………………………………………

7(Notes to the Quarterly Consolidated Statements of Income) …………………………………………………………

8(Segment Information) …………………………………………………………………………………………………

9(Per share Information) …………………………………………………………………………………………………

11(Significant Subsequent Events) ………………………………………………………………………………………

11

- 1 -

1. Qualitative Information on Quarterly Financial Results(1) Results of Operations
During the third quarter of the consolidated fiscal year under review (March 1 to November 30, 2022), while the MT business
continued strong performance the Metaverse business incurred forward-looking investments in R&D and other areas.
As a result, our group posted net sales of 3,254,879 thousand yen (up 5.9% year on year), operating income of 369,452
thousand yen (up 154.0% year on year), ordinary income of 397,836 thousand yen (up 137.0% year on year), and profit
attributable to owners of parent of 155,980 thousand yen (loss attributable to owners of parent of 80,314 thousand yen in thesame period of the previous fiscal year) for the cumulative third quarter of the current fiscal year.
Businesses other than the Metaverse business recorded total sales of 3,245,594 thousand yen (up 5.6% year on year) andoperating income of 708,308 thousand yen (up 36.6% year on year).
The performance of each business segment is as follows:① MT business
As for the MT business, sales were 2,191,416 thousand yen (up 0.4% year on year), and segment income was 475,150 thousandyen (up 17.0% year on year).
② HT business
As for the HT business, sales were 1,054,178 thousand yen (up 18.5% year on year), and segment income was 214,803
thousand yen (up 72.7% year on year).
③ Metaverse business
Sales in the Metaverse business, were 9,285 thousand yen (up 447.3% year on year), and segment loss was 338,856 thousandyen (segment loss of 372,968 thousand yen in the same period of the previous fiscal year).
(2) Financial Position(Assets)
Current assets decreased by 93,640 thousand yen from the end of the previous fiscal year to 2,855,053 thousand yen at the endof the third quarter of the current fiscal year. This was due mainly to a decrease of 135,948 thousand yen in notes and accounts
receivable, a decrease of 32,166 thousand yen in allowance for doubtful accounts, and a decrease of 14,466 thousand yen in cash
and deposits. Non-current assets decreased by 338,634 thousand yen from the end of the previous fiscal year to 1,620,693
thousand yen. This was due mainly to a decrease of 193,161 thousand yen in intangible assets and a decrease of 77,564 thousand
yen in investments and other assets.
(Liabilities)
Current liabilities decreased by 441,734 thousand yen from the end of the previous fiscal year to 1,992,935 thousand yen at
the end of the third quarter of the current fiscal year. This was due mainly to a decrease of 283,090 thousand yen in provision forsurcharges, a decrease of 106,710 thousand yen in advances received, and a decrease of 100,000 thousand yen in short-termloans payable. Non-current liabilities decreased by 151,540 thousand yen from the end of the previous fiscal year to 1,223,144
thousand yen. This was due mainly to a decrease of 289,485 thousand yen in long-term debt and an increase of 158,000 thousand
yen in bonds.
(Net assets)
Net assets increased by 161,000 thousand yen from the end of the previous consolidated fiscal year to 1,259,666 thousand yen
at the end of the third quarter of the consolidated fiscal year under review. This was due mainly to an increase of 155,980 thousand
yen in retained earnings as a result of recording profit attributable to owners of the parent.

- 2 -(3) Consolidated Business Forecasts
Our two management themes for the future are:
① [Metaverser] initiative for the Metaverse business
The Metaverse business will strive toward achievement of the Metaverser concept as the end result of the past two years ofbusiness activities. (For details, see the explanatory materials to the Financial Results for the Fiscal Year Ending February 28,
2023 [March 2022 to May 2022]). While previously the main activities in this business were conducted by Travel DX
Corporation, which offers a VR travel service, in the future MATRIX Corporation, which operates the Docodemo Door
Metaverser platform, will be the main focus of this business. As another new service, we will promote the VR Clone service
offering opportunities to meet digital clones of celebrities and deceased persons in the metaverse offices and virtual spaces
planned for sale by Rozetta Corp.
② Stable growth in the MT businessWe aim to achieve stable growth of 5% to 20% per year in the MT business, which provides services including [T-4OO] [T3MT] for AI document translation and [Onyaku] for AI speech translation.
The impact of COVID-19 pandemic on our business results is reviewed below.
In the third quarter, the MT business, as the AI automatic translation market expands and grows, more new companies enter
the market, and we have shifted to a competitive phase, including pricing. Among these, orders received for the core product,
the document AI automatic translation segment, fell below the same period of the previous fiscal year. Net sales in the AI speechtranslation division, a new product, increased significantly year on year.
We continue to migrate from a passive style of marketing, highly dependent on creation of sales leads at trade shows, toproactive, dynamic creation of opportunities for contacting potential customers through means that include proposing operations
improvements and product mixes to existing customers and holding webinars for them.
Results for the document AI automatic translation segment, which handles the core products [T-4OO] and [T-3MT], fell shortof the (minimum) plan for orders received, which served as the basis for business forecasts.
Since the development process for the new product of the AI speech translation tool [Onyaku] has reached a certain stage, we
commenced further business expansion in May. As a result, numbers of inquiries and business discussions are trending upward,
as well as being gradually cultivated as a market. As a result, orders received (minimum) were significantly higher than planned.
In addition, the Switching to Maturity Phase described in the Consolidated Financial Results for the Second Quarter of the
Fiscal Year Ending February 28, 2022, continues, and currently we are striving to expand usage and increase the unit price oforders received by actively capitalizing on existing contracted customers.
We also are accelerating awareness-raising activities in the industrial translation industry, to grow the automatic translation
market further.
While the impact of COVID-19 on the MT business is minor, there is a possibility of a significant impact due to an economic
slowdown in the event that the virus spreads further in the future.
The performance of the HT business has been affected somewhat by developments such as restrictions on activities
implemented in response to the spread of the pandemic. In the third quarter of the fiscal year ending February 28, 2023, sales
and operating income both exceeded the level of the same period of the previous fiscal year, mainly due to the lifting of COVID19 restrictions. In the fourth quarter, we expect the same trend to continue, assuming continuation of lifting of COVID-19
restrictions, despite expenses related to the hiring of replacement personnel for the future.
The COVID-19 pandemic has had only a minor impact on the Metaverse business.

- 3 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(February 28, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term loans payable
Current portion of corporate bonds
Income taxes payable
Provision for bonuses
Advances received
Provision for surcharge
Other
Total current liabilities
Non-current liabilities
Corporate bonds
Long-term debt
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Share subscription rights
Total net assets
Total liabilities and net assets- 4 -Current third quarter(November 30, 2022)

2,396,860
452,567
18,467
165,987△85,189
2,948,694

2,382,393
316,619
18,843
190,219△53,0222,855,053

208,740

140,832

14,496
893,720
61,62823,511
993,356

8,656
765,318
7,777
18,442
800,194

319,675
437,554757,230
1,959,327
4,908,021

252,193
427,471679,665
1,620,693
4,475,747

94,145100,000
385,980
74,00091,94048,3591,006,259
283,090
350,895
2,434,670

99,949385,980
134,000
68,89890,567
899,549
313,991
1,992,935

252,000
1,055,530
67,155
1,374,685
3,809,355

410,000
766,045
47,0991,223,144
3,216,080

783,5111,757,458△1,482,498△951
1,057,519
41,146
1,098,666
4,908,021

786,021
1,759,968△1,326,518△951
1,218,520
41,146
1,259,666
4,475,747

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the Nine-month Period)(Thousands of yen)Previous third quarter(From March 1, 2021 toNovember 30, 2021)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries, allowances and bonuses
Research and development expenses
Provision for bonuses
Retirement benefit expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gain
Subsidy income
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of investments accounted for using equity
methodOther
Total non-operating expenses
Ordinary income
Special income
Gain on sale of investment securities
Total special income
Special loss
Expenses related to restatements of prior years
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on valuation of investment securities
Other
Total special loss
Income or loss (△) before income taxes
Income taxes
Net income or loss (△) per quarter
Net income or loss (△) attributable to owners of parent- 5 -Current third quarter(From March 1, 2022 toNovember 30, 2022)

3,074,084
1,100,042
1,974,042

3,254,879
1,153,946
2,100,932

637,671
193,783
25,503
6,859
964,748
1,828,566
145,475

560,851
220,388
34,4905,281
910,467
1,731,480
369,452

69
9
1,368
35,513
11,217
48,17840
693
15,181
44,191
1,447
61,554

10,432

10,042

10,064

14,1095,263
25,760167,893

9,018
33,169397,83678
78-

203,876
8,594
31,43518,041
261,947△93,974△13,660△80,314△80,3142,435
67,64170,076
327,759
171,779
155,980
155,980

(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)(Thousands of yen)Previous third quarter(From March 1, 2021 toNovember 30, 2021)
Net income or loss (△) per quarter
Comprehensive income
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests- 6 -Current third quarter(From March 1, 2022 toNovember 30, 2022)△80,314△80,314

155,980
155,980△80,314-

155,980-

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders' Equity)
Not applicable.
(Application of Accounting Procedures Specific to Preparation of the Quarterly Consolidated Financial Statements)
Income taxes are calculated by multiplying the income before income taxes by the forecasted effective tax rate, which iscomputed by matching the forecasted yearly income taxes with the forecasted yearly income before taxes.
However, if the calculation of tax expenses using the estimated effective tax rate yields a highly unreasonable result, then thestatutory tax rate is used.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition)[Accounting Standard for Revenue Recognition] (ASBJ Statement No. 29, March 31, 2020. Hereinafter referred to as[Revenue Recognition Accounting Standard].) is applied from the beginning of the first quarter of the consolidated fiscal year
under review. Revenue is recognized in the amount expected to be received in exchange for the promised goods or services
when control of the goods or services is transferred to customers.
In applying the Accounting Standard for Revenue Recognition in accordance with the transitional handling stipulated in theproviso to Paragraph 84 of that Standard the cumulative impact of applying the new accounting policy retrospectively prior to
the beginning of the first quarter of the consolidated fiscal year is adjusted by retained earnings at the beginning of the firstquarter, and the new accounting policy is applied beginning with the starting balance.
As a result, application of this standard has had no effect on income for the third quarter of the consolidated fiscal year underreview. It also has had no effect on the starting balance of retained earnings.
In accordance with the transitional handling stipulated in Paragraph 28-15 of the [Accounting Standard for Quarterly
Financial Statements] (ASBJ Statement No. 12, March 31, 2020), information on a breakdown of revenue arising fromcontracts with customers for the third quarter of the previous consolidated fiscal year is not presented.
Because of the application of the Accounting Standard for Revenue Recognition from the first quarter of the previous
consolidated fiscal year, we decided to include Notes and accounts receivable that had been presented under Current assets
under Contract assets in Other from the first quarter of the fiscal year under review. In accordance with the transitional
handling stipulated in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassifications have been
made using the new presentation method for the previous consolidated fiscal year.
(Additional Information)(Handling of Application of Tax Effect Accounting for Transition from the Consolidated Tax Payment System to the Group
Comprehensive Accounting System)
We, as well as some of our domestic consolidated subsidiaries, have not applied the provisions of Paragraph 44 of the
Implementation Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, February 16, 2018) for
items for which the unconsolidated tax payment system has been revised in conjunction with the adoption of the group-wide tax
system under the Act on Partial Amendments to the Income Tax Act (Act No. 8 of 2020) and our transition to such a group-wide
tax system. This reflects application of the handling described in Paragraph 3 of the Practical Solution on the Treatment of Tax
Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System (Practical Issues
Task Force No. 39, March 31, 2020).
(Application of Accounting Standard for Calculation of Market Value)
We have applied the [Accounting Standard for Calculation of Market Value] (ASBJ Statement No. 30, July 4, 2019. Hereinafterreferred to as [Market Value Accounting Standard].) and other standards since the beginning of the first quarter of theconsolidated fiscal year under review. We have also decided to apply the new accounting policies established by these standards
in the future in accordance with the transitional handling provided for in Article 19 of the Accounting Standard for Calculationof Market Value and Article 44-2 of the [Accounting Standard for Financial Instruments] (ASBJ Statement No. 10, July 4, 2019).
Since we do not hold any financial instruments with fair values on the quarterly consolidated balance sheet, this has had no
impact on the quarterly consolidated financial statements.
(Accounting Estimates Related to the COVID-19 Pandemic)
There have been no significant changes to the details of the impact of the COVID-19 pandemic during the third quarter of theconsolidated fiscal year under review as described in the Securities Report for the previous consolidated fiscal year.

- 7 -(Notes to the Quarterly Consolidated Statements of Income)(1) Expenses related to restatements of prior years
Previous third quarter (From March 1, 2021 to November 30, 2021)
We have established the Special Investigation Committee and have revised our prior year financial results to reflect facts thatwere discovered based on the results of the Committee's investigations, as it has become apparent that there is a possibility oferrors in past accounting treatment.
As a result, as a result of the correction, we have recorded 203,876 thousand yen in expenses related to corrections to prioryears' financial results in extraordinary losses, such as audit fees for corrections incurred through November 30, 2021,
expenses for investigations by the Special Investigation Committee, and expenses to support the preparation of corrective
disclosure documents.
Current third quarter (From March 1, 2022 to November 30, 2022)
Not applicable.
(2) Impairment loss
Previous third quarter (From March 1, 2021 to November 30, 2021)
1. Amount of impairment loss
During the third quarter of the consolidated fiscal year under review, our group recorded impairment loss on the following
assets.
Location

Application

Amount (thousands of
yen)

Type

Chioda-ku, Tokyo

Business assets

Software in progress

29,526

Chioda-ku, Tokyo

Business assets

Software

1,908

2. Method of grouping assets
Business assets are grouped based on the smallest cash-flow-generating unit to be largely independent of the cash flows ofother assets or asset groups.
3. Background to recording of impairment loss
As a result of reassessment of profitability and consolidation of development and operating resources for existingdevelopment projects and related businesses, we do not have high expectations regarding development and use of someprojects under development or in operation. As a result, we have recorded impairment loss reflecting estimation of therecoverable amount to be zero in terms of both securing cash flows from internal use and reduction of expenses.
Current third quarter (From March 1, 2022 to November 30, 2022)
Not applicable.
(3) Loss on valuation of investment securities
Previous third quarter (From March 1, 2021 to November 30, 2021)
Not applicable.
Current third quarter (From March 1, 2022 to November 30, 2022)
We believe that the real value of the following investment securities we hold (e.g., stocks with no market price) has declined
significantly. Accordingly, we have recorded unrealized gains and losses on investment securities as losses on valuation of
investment securities in extraordinary losses.
(Thousands of yen)
Investment securities

Loss on valuation of investment securities

Synamon Inc.

7,525

VoiceApp, Inc.

60,116- 8 -(Segment Information)[Segment Information]
Ⅰ Previous third quarter (From March 1, 2021 to November 30, 2021)
1. Information on net sales and income (loss) by reportable segment(Thousands of yen)
Reportable Segments
Metaverse
business

Total

Amounts on the
consolidated
financial statements
Note 2Adjustment
Note 1:MT businessHT business

2,182,561

889,826

1,696

3,074,084-

3,074,084

7,614

26,234-33,849△33,849-

Total

2,190,176

916,060

1,696

3,107,934△33,849

3,074,084

Segment income orloss (△)

406,218

124,376△372,968

157,626△12,150

145,475

Net sales
Net sales tounaffiliatedcustomers
Intersegment sales
or transfer(Note) 1. Adjustments to segment income or loss (△) of (12,150) thousand yen include elimination of intersegment transactions andcorporate expenses. Corporate expenses mainly consist of expenses related to the administrative departments of the parent
company that are not attributable to reportable segments.
2. Segment income (loss) is adjusted with operating income in the quarterly consolidated statements of income.
2. Information on impairment loss on noncurrent assets or goodwill by reportable segment(Significant impairment loss on noncurrent assets)
During the current third quarter, intangible assets of 31,435 thousand yen were recorded for software underdevelopment in the MT business as a result of the assessment of profitability and liquidation of projects to consolidate
resources.

- 9 -Ⅱ Current third quarter (From March 1, 2022 to November 30, 2022)
1. Information on net sales and income (loss) by reportable segment and breakdown of income(Thousands of yen)
Reportable Segments
Metaverse
business

Total

Amounts on the
consolidated
Adjustment
financial
Note 1:statements
Note 2MT businessHT business

2,140,904
25,03824,1451,030,033-

2,165,049
1,055,071-

2,165,049
1,055,071

25,473

-

9,285
-

9,285
25,473-

9,285
25,473

2,191,416

1,054,178

9,285

3,254,879-

3,254,879

184,004

950,858

6,533

1,141,396-

1,141,396

2,007,411

103,319

2,751

2,113,482-

2,113,482

2,191,416

1,054,178

9,285

3,254,879-

3,254,879

2,191,416

1,054,178

9,285

3,254,879-

3,254,879

4,550

34,775-39,326△39,326-

2,195,966

1,088,953

9,285

3,294,205△39,326

3,254,879

475,150

214,803△338,856

351,098

18,353

369,452

By type of goods or services
Machine translation
Human translation
Metaverse
Consigned development
Revenue from contracts withcustomers
Revenue recognition by
periodGoods or services that aretransferred at one time
Goods or services that aretransferred over a period oftime
Revenue from contracts
with customers
Net sales to unaffiliatedcustomers
Intersegment sales ortransfer
Total
Segment income or loss(△)

(Note) 1. Adjustments to segment income or loss (△) of 18,353 thousand yen include elimination of intersegment transactions andcorporate expenses. Corporate expenses mainly consist of expenses related to the administrative departments of the parent
company that are not attributable to reportable segments.
2. Segment income or loss (△) is adjusted with operating income in the quarterly consolidated statements of income.

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(Per share Information)
Net income or loss per share and the basis for calculating it, and diluted net income per share and the basis for calculating it
are as follows.
Previous third quarter(From March 1, 2021 to November
30, 2021)(1) Net income or loss (△) per share

Current third quarter(From March 1, 2022 toNovember 30, 2022)△7. 54 yen

14.60 yen

△80,314

155,980--△80,314

155,980

10,657,213

10,682,490-

14.37 yen

parent(thousands of yen)--

Increase in number of common shares (shares)-

175,751(Basis of calculation)
Net income or loss (△) attributable to owners ofparent (thousands of yen)Amount not attributable to common shareholders(thousands of yen)
Net income or loss (△) attributable to owners ofparent related to common stock (thousands of yen)
Average number of shares of common stock
outstanding during the period (shares)(2) Diluted net income per share(Basis of calculation)
Adjustment to net income attributable to owners of

Outline of potential shares that had not been included in
the calculation of diluted net income per share because-

they had no dilutive effect, and that had changed
significantly since the end of the previous fiscal year-

(Note) Diluted net income per share for the third quarter of the previous consolidated fiscal year is not presented because net loss per
share was recorded despite the existence of potential shares.
(Significant Subsequent Events)
Not applicable.

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