(This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this document and the Japanese original, the latter shall prevail.)
Summary of Consolidated Financial Results for the Fiscal Year ended March 31, 2022 (Japanese GAAP)May 13, 2022
Company name: Digital Media Professionals Inc.
Listing: Tokyo Stock Exchange
Code number: 3652
URL: https://www.dmprof.com/en
Representative: Tsuyoshi Osawa, President and COO
Contact person: Tomoyuki Ietaka, Executive Officer, CFO, General Manager of Accounting/Corporate Planning Dept.Tel. (03) 6454 - 0450
Scheduled date of General Meeting of Shareholders: June 24, 2022
Scheduled date of filing Securities Report: June 24, 2022
Scheduled date of payment of cash dividends: Supplementary materials for the quarterly financial results: No
Briefing session on the quarterly financial results: Yes (for institutional investors and analysts)(Round down to the nearest million yen)
1. Consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 through March 31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes)
Net income attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Fiscal year ended March 31, 2022
1,667
65.2
-126
-122
-157
－
－
－
Fiscal year ended March 31, 2021
1,009
－
-425
－
-361
－
-364
－
Reference) Comprehensive income: -154 million yen (-%) as of March 31, 2022; -361 million yen (-%) as of March 31, 2021
Net income per shareReturn on
Return on
equityassetsdilutedyen
yen%%
Fiscal year ended March 31, 2022
-49.93-5.0-3.5－
Fiscal year ended March 31, 2021
-116.03
－
-22.4
-20.8
Reference) Equity in earnings (losses) of affiliates: - million yen as of March 31, 2022; - million yen as of March 31, 2021
Net income per share

Operatingmargin

%
-7.6
-42.1

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

As of March 31, 2022
3,472
3,095
As of March 31, 2021
3,477
3,250
Reference) Shareholders' equity: 3,095 million yen as of March 31, 2022; 3,250 million yen as of March 31, 2021

%
89.2
93.5

Net assets per shareYen
983.23
1,032.07(3) Consolidated cash flows
Cash flows from operating
activities
Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Cash flows frominvesting activities

Cash flows from financing Cash and cash equivalents at
end of period
activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

-39
36

-77
68

-0
-1

2,002
2,112

Since the consolidated financial statements have been prepared from the fiscal year ended March 2021, the figures for the fiscal year ended March 2020 are not stated.

2. Cash dividends

Year ended March 2021
Year ended March 2022
Year ending March 2023 (Forecast)

1Q-endyen-

Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
0.00
0.00
0.00
0.00
0.00
0.00

Total
Dividends

Total
yen
0.00
0.00
0.00

Dividends
on equity%%-

Payout ratio

Millions of yen-

3. Forecasts of consolidated operating results for the year ending March 31, 2023 (April 1, 2022 through March 31, 2023)
Net Sales
Millions of yen

Full year

2,370

Operating income% Millions of yen
42.1
25

Ordinary income% Millions of yen
25(Percentages indicate year-on-year changes.)
Net income attributable to Net income
owners of parent
per share% Millions of yen
%
Yen
20
6.35

Notes:1. Changes in significant subsidiaries during the current consolidated cumulative period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
2. Changes in accounting policies(1) Changes in accounting policies resulting from revisions of accounting standards: Yes(2) Changes in accounting policies except (1): None
(3) Changes in accounting estimation: None
(4) Restatement: None
3. Number of shares issued(1) Number of shares issued at the end of the period (including treasury shares)
As of March 31, 2022

3,152,400 shares

As of March 31, 2021

3,152,400 shares

As of March 31, 2021

3,189 shares(2) Number of treasury shares at the end of the period
As of March 31, 2022

4,122 shares(3) Average number of shares issued during the period
Year ended March 31, 2022

3,148,584 sharesYear ended March 31, 2021

3,142,419 shares(Reference)
1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 through March 31, 2022)(1) Non-consolidated operating results
Net sales
%
65.2
-24.0

Millions of yen

1,667
1,009

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Operating income

Net income per shareyen-51.01-116.11

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

Millions of yen

-130
-425

(Percentages indicate year-on-year changes)
Ordinary income
Net income% Millions of yen% Millions of yen
%
-126
-160
-361
-364
-

Net income per sharedilutedyen－－(2) Non-consolidated financial position
Total assets
Millions of yen

Net assets

Equity ratio

Millions of yen

As of March 31, 2022
3,472
3,092
As of March 31, 2021
3,481
3,250
Reference) Shareholders' equity: 3,092 million yen as of March 31, 2022; 3,250 million yen as of March 31, 2021

%
89.0
93.5

Net assets per shareYen
982.191,032.02

2. The non-consolidated earnings forecast for the fiscal year ending March 31, 2023 has been omitted considering the materiality of
the non-consolidated information.
*Summary of the financial results is not subject to audit by a certified public accountant or auditing firm.
*Explanation regarding the appropriate use of business forecasts and other special notes
The forward-looking statements such as business forecast in this document are based on information currently available to
the Company and on certain assumptions deemed to be reasonable. The Company does not guarantee the achievementof the forecasts. Actual results may differ significantly for a number of reasons.
For the conditions and notes on the use of business forecast, please refer to"1. Qualitative information on financial results (4) Consolidated financial forecasts and other forward-looking statements."

Qualitative information on financial results(1) Operating results
During the current consolidated fiscal year, the Japanese economy continued to face a difficult situation overall due tothe prolonged spread of COVID-19. Currently, there are concerns about the impact of the accelerating weak yen on
the economy. As for the future, it is essential to take the extremely difficult task of raising the level of economic activities
while taking measures to prevent the spread of infection and serious illnesses by accelerating booster vaccinations andspreading therapeutic drugs. In the world, some countries centered in the western ones, have been prioritizing moreaggressive economic activities even though the number of newly infected people remains high on one hand, but China
is locking down some cities as part of its zero-corona policy on the other hand. Overall, the economy still needs moretime to recover from the damage caused by the COVID-19 pandemic. In addition, with geopolitical risks such as thesituation in Ukraine increasing, there are concerns about downside risks due to rising raw material prices and supplyside constraints.
In the semiconductor industry to which our group belongs, although the stay-at-home demand due to the COVID-19
pandemic has peaked out, the continued shortage of semiconductor supplies due to strong demand in various
industries is affecting the production of electronic equipment including automobiles that uses semiconductors. In themedium term as well, demand is expected to grow for IoT where all things are connected to the Internet, artificial
intelligence (AI), big data, next-generation high-speed communication standards, and automatic driving.
In the field of AI/visual computing, which is the business domain of our group, the acceleration of innovation and theincreasing roles of AI are expected in solving social and environmental issues, including a decrease in the working
population due to declining birthrate and aging population, COVID-19 pandemic and climate change, and in realizing asafe and secure society.
In this environment, the basic policy of our group's medium-term business plan is to achieve Creating Shared Value(CSV) management that will enhance corporate value by contributing to the resolution of social and environmental
issues and earning revenue and profits at the same time. In the core fields of safe driving assistance and robotics, wewill maximize customer lifetime value (LTV) by providing added value through the development of IP core licensebusiness, product business, and professional service business, based on our integrated development system fromalgorithms and software to our strength, hardware, throughout the development lifecycle of customer products andservices from the planning stage to mass production.

As for specific initiatives and achievements in our focused fields during the current consolidated fiscal year, firstly, inthe safe driving assistance field, we have earned recurring revenues from the edge to the cloud from existing projects
and provided professional services to new projects of new and existing customers.
In the robotics field, we have expanded our "ZIA™ series" portfolio by releasing ZIA™ MOVE, an AI software thatencompasses ZIA™ SLAM, a high-precision SLAM software, and extends its functions to recognition, decision-making,and operation required for automatic and autonomous driving of autonomous mobile robots, and ZIA™ Wire, an AI
recognition model for detecting power lines, fences, and other wires for drones and unmanned robots, as well as an
upgraded version of ZIA™ ISP, an image signal processor (ISP) core that supports the high dynamic range (HDR)
function of image sensors. In addition, we have made progress in PoC and commercialization projects for customers
in various industries including projects to implement AI in the land, sea, and air products of Yamaha Motor, a businessand capital partner, and collaboration projects with Prophesee in France and Macnica. Furthermore, in the business ofvision systems for collaborative robots by Cambrian, a capital and business partner, we made progress in thedevelopment of applications such as the joint development of an automatic mail sorting system with Takashima Robot-1-

Marketing, which provides rental, sales, and installation support services for collaborative robots, as well as in specificprojects aimed at reducing labor and improving productivity for end customers.
In the amusement field, we continued shipping our image processing semiconductors, RS1, for mass production in
response to the large-scale order, and aimed to expand our share in the market segment where we can demonstrate
the superiority of this unique 2D/3D integrated chip.

Regarding the business results for the current consolidated fiscal year, in the product business, we continued mass
production shipments of the RS1 image processing semiconductor and recorded revenue of camera modules for drone
mass production and Cambrian vision systems for collaborative robots. In the IP core license business, we acquired
new licenses for the safe driving assistance field and the robotics field and recorded recurring revenue in the safe
driving assistance field. In the professional service business, contracted AI development services for the safe driving
assistance field and the robotics field, became more active, despite the absence of contracted income related to the
NEDO project.

As a result, for the current consolidated fiscal year, we recorded net sales of 1,667 million yen (up 65.2% year on year),
operating loss of 126 million yen (operating loss of 425 million yen in the same period of the previous fiscal year),ordinary loss of 122 million yen (ordinary loss of 361 million yen in the same period of the previous fiscal year), and net
loss attributable to owners of the parent of 157 million yen (net loss attributable to owners of the parent of 364 million
yen in the same period of the previous fiscal year) due to recording a loss on valuation of investment securities of 33
million yen.

As our group operates in a single segment, segment information is not provided, but a summary of results by businessis as follows.
a) IP core license businessIn addition to recording incomes from GPU new license and running royalties for digital equipment such as digital stillcameras and office automation equipment, new license income in the safe driving assistance field and the robotics field
and recurring income in the safe driving assistance field were recorded. As a result, net sales amounted to 173 million
yen (144 million yen in the same period of the previous fiscal year).
b) Product businessNet sales amounted to 1,199 million yen (658 million yen in the same period of the previous fiscal year) due to sales
from mass production shipments of the RS1, camera modules for drone mass production, and Cambrian vision systems.
c) Professional service businessNet sales amounted to 295 million yen (206 million yen in the same period of the previous fiscal year), due to theincreased activities in AI contracted development projects for the safe driving assistance field and the robotics field,
despite the absence of contracted income from NEDO that was recorded in the same period of the previous fiscal year.

A summary of results by field is as follows.
a) Safe driving assistance field
Net sales amounted to 163 million yen (49 million yen in the same period of the previous year), mainly by recording
revenues from new license and recurring business in the IP core license business, and professional services for projectsof new and existing customers.

-2-b) Robotics field
Net sales amounted to 236 million yen (166 million yen in the same period of the previous fiscal year) due to an increase
in incomes in the IP core license business, recording revenues from camera modules for mass-production drones andCambrian vision systems, and increased activities in AI contract development projects.
c) Amusement field
Net sales amounted to 1,155 million yen (646 million yen in the same period of the previous year) due to mass
production shipment of RS1.
d) Other
Net sales amounted to 111 million yen (148 million yen in the same period of the previous fiscal year) due to the absenceof contracted income from NEDO, which was recorded in the same period of the previous fiscal year, despite therecording of incomes from GPU new license and running royalties for digital equipment.

(2) Financial position(Assets)
Total assets at the end of the current consolidated fiscal year amounted to 3,472 million yen, down 5 million yen fromthe end of the previous consolidated fiscal year, mainly due to an increase in accounts receivable and contract assets(up 231 million yen) and decreases in cash and deposits (down 63 million yen) and fixed assets (down 52 million yen).
(Liabilities)
Current liabilities and non-current liabilities at the end of the current consolidated fiscal year totaled 376 million yen, up
150 million yen from the end of the previous consolidated fiscal year, mainly due to increases in accounts payable (up128 million yen) and consumption tax payable (up 41 million yen).
(Net assets)
Total net assets at the end of the current consolidated fiscal year amounted to 3,095 million yen, down 155 million fromthe end of the previous consolidated fiscal year, mainly due to a decrease in retained earnings (down 157 million yen)resulting from the posting of net loss attributable to owners of the parent.
As a result, the net equity ratio was 89.2%.

(3) Overview of Cash FlowsThe balance of cash and cash equivalents at the end of the current consolidated fiscal year was 2,002 million yen.
Net cash used by operating activities was 39 million yen mainly attributable to positive factors such as an increase inaccounts payable of 128 million yen and depreciation of 71 million yen, and negative factors such as an increase inaccounts receivable and contract assets of 231 million yen and loss before income taxes of 155 million yen.
Net cash used in investing activities was 77 million yen mainly attributable to negative factors such as purchase ofinvestment securities of 40 million yen and purchase of property, plant and equipment of 37 million yen.
Net cash used by financing activities was 0 million yen attributable to purchase of treasury shares.

(Reference) Changes in cash flow indicators
March 2018

March 2019

March 2020

March 2021

March 2022

Equity ratio (%)

88.2

83.8

92.2

93.5

89.2

Equity ratio on market value (%)

834.8

548.5

162.3

250.2

128.5

Interest-bearing debt to cash flows ratio (year)

-

-

-

-

Interest coverage ratio (times)

-

-

-

-

-3-

Calculations are based on consolidated financial figures from the fiscal year ended March 31, 2021.
Equity ratio: Equity / Total assets
Equity ratio on market value: Market value / Total assets
Interest-bearing debt to cash flows ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payment(Note 1) Market value is calculated based on the number of issued shares excluding treasury stock.
(Note 2) Cash flows from operating activities are used for cash flows.
(Note 3) Since there is no interest-bearing debt balance or interest payment in each period, interest-bearing debt tocash flows ratio and interest coverage ratio are not stated.

(4) Consolidated financial forecasts and other forward-looking statements
The Japanese and global economies are expected to remain uncertain, although degrees vary by region and country,
due to the prolonged impact of the COVID-19 pandemic and increased geopolitical risks such as the situation in Ukraine.
On the other hand, the semiconductor industry, to which we belong, is expected to continue to experience excess
demand and supply shortage in the short term, while demand for semiconductors for AI/IoT is expected to grow in themedium term. The evolution of AI and other technologies is expected to help overcome social and environmental
challenges, such as the declining birthrate and aging population, the COVID-19 pandemic, and climate change.
In the safe driving assistance field, one of our focused fields, demand for real-time detection of dangerous driving
events and post-event safe driving education is growing, and we expect the market for communication-type dashcams
with AI functions to expand steadily. In the robotics field, one of our focused fields as well, the markets for autonomous
mobile robots and collaborative robots are expected to grow strongly from the perspectives of alleviating the shortageof manpower in a wide range of fields such as manufacturing, logistics, agriculture and daily life, improving productivity
and quality of life, and preventing COVID-19 infection.
In the amusement market, one of our main markets, the market is expected to be stimulated by smart pachinko andsmart pachislot machines, which enable the play without touching balls or medals and the central management of
payout data nationwide. On the other hand, amid the prolonged COVID-19 pandemic, there are concerns over a decline
in halls' willingness to invest due to a lull in demand for replacement of old and new regulation machines, and a shortageof semiconductors and materials required for machine manufacturing.
We will contribute to the "realization of a safe and secure society" and "solutions to social issues" by focusing on thesafe driving assistance (safety) and robotics fields and will expand the graphics LSI business for the amusement market.
Based on the above, we forecast consolidated net sales of 2,370 million yen (up 42.1% from the current consolidated
fiscal year), operating income of 25 million yen, ordinary income of 25 million yen, and net income attributable to ownersof the parent of 20 million yen for the consolidated fiscal year ending March 31, 2023.
Actual results may differ from these forecasts due to various factors.

(5) Significant events regarding going-concern assumptions
Not applicable

2. Basic Policy on Selection of Accounting Standards
Since financial statements are also used in calculating distributable amounts under the Companies Act and taxable
income under the Corporation Tax Act, we apply Japanese GAAP for accounting standards.

-4-

3. Consolidated financial statements and significant notes(1) Consolidated balance sheets
Previous year
(As of Mar 31, 2021)(Yen thousand)Current year
(As of Mar 31, 2022)

2,066,483
157,606
345,870
7,630
44,437
58,79135,277
11,7988,763
2,736,659

2,002,540
388,772
300,000
11,501
1,029
26,756
48,4152,454
2,580
2,784,051

51,243-38,392
12,850134,369-104,566
29,80242,652

51,243-40,322
10,920148,850-120,252
28,59839,519104,54525
104,570

50,38323,02573,408500,630
2,493
36,14854,147593,419
740,6433,477,303

507,481
11,63456,093575,209688,137
3,472,189

132,333
41,665
10,118
11,834
7,013
5,269
208,233

260,342
12,371
1,604
15,146
41,137
6,596
4,345
17,081
358,626

1,452
17,40818,860227,094414
17,665
18,079376,706

1,838,882
1,858,093-440,462-1,5253,254,988

1,838,882
1,858,093-597,659-1,615
3,097,700-4,677-102-4,7793,250,208
3,477,303-1,835-381-2,217
3,095,483
3,472,189

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Accounts receivable - trade, and contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
Consumption taxes refund receivable
Income taxes refund receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term prepaid expenses
Leasehold deposits
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Unearned revenue
Contract liabilities
Provision for product warranties
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-(2) Consolidated statements of income and comprehensive income
Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating loss
Non-operating income
Interest income
Interest on securities
Foreign exchange gains
Gain on sale of securities
Subsidy income
Miscellaneous income
Total non-operating income
Non-operating expenses
Share issuance costs
Miscellaneous losses
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on liquidation of subsidiaries
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on valuation of shares ofsubsidiaries and associates
Loss on valuation of investment securities
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Loss attributable to owners of parent

Previous year
(From Apr 1, 2020
To Mar 31, 2021)
1,009,932
674,781335,151(Yen thousand)Current year
(From Apr 1, 2021
To Mar 31, 2022)
1,667,991
1,063,529
604,461

760,500

731,082-425,349-126,621

308
2,066
2,509
60,897
4
65,785

302
1,798
1,557
25
306
3,990

1,465
0
1,465
-361,02900-122,631

-

328
328

102

-

1,422

-

1,525
-362,555
2,290
-222
2,067
-364,622-364,622

33,642
33,642-155,945
2,290-1,0381,251-157,197-157,197

Previous year
(From Apr 1, 2020
To Mar 31, 2021)-364,622(Yen thousand)Current year
(From Apr 1, 2021
To Mar 31, 2022)-157,197

2,889

2,841

-102
2,787
-361,835

-279
2,562
-154,635-361,835-154,635--

Consolidated statements of comprehensive income

Loss
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests-6-(3) Consolidated statements of shareholders’ equity
Previous consolidated fiscal year (from April 1, 2020 to March 31, 2021)(Yen thousand)Shareholders' equity
Share capital
Balance at beginning of period
Restated balance
Changes during period
Issuance of new shares
Loss attributable to owners of parent
Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

Balance at beginning of period
Restated balance
Changes during period
Issuance of new shares
Loss attributable to owners of parent
Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

Capital surplus

Retained earnings

1,804,592
1,804,592

1,823,803
1,823,803

34,29034,290-75,840-75,840-1,482-1,482

Total shareholders'equity3,551,074
3,551,074-43

68,580-364,622-43-43-1,525-296,086
3,254,988

Treasury shares-364,622

34,2901,838,882

34,2901,858,093-364,622-440,462

Accumulated other comprehensive income
Valuation difference on
Total accumulated
Foreign currency
available-for-saleother comprehensive
translation adjustment
securities
income-7,566-7,566-7,566-7,566

Total net assets
3,543,507
3,543,507
68,580-364,622
-43

2,889

-102

2,787

2,787

2,889
-4,677

-102
-102

2,787
-4,779-293,298
3,250,208

Current consolidated fiscal year (from April 1, 2021 to March 31, 2022)(Yen thousand)Shareholders' equity
Share capital
Balance at beginning of period
Restated balance
Changes during period
Issuance of new shares
Loss attributable to owners of parent
Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

Balance at beginning of period
Restated balance
Changes during period
Issuance of new shares
Loss attributable to owners of parent
Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

1,838,882
1,838,882

Capital surplus

Retained earnings

1,858,093
1,858,093-440,462-440,462-1,525-1,525

Total shareholders'equity3,254,988
3,254,988-90-157,197-90-90-1,615-157,287
3,097,700

Treasury shares-157,197

1,838,882

1,858,093-157,197-597,659

Accumulated other comprehensive income
Valuation difference on
Total accumulated
Foreign currency
available-for-saleother comprehensive
translation adjustment
securities
income-4,677-102-4,779-4,677-102-4,779Total net assets
3,250,208
3,250,208-157,197
-90
2,841

-279

2,562

2,562

2,841
-1,835

-279
-381

2,562
-2,217-154,725
3,095,483-7-

(4) Consolidated statement of cash flows
Previous year
(From Apr 1, 2020
To Mar 31, 2021)
Cash flows from operating activities
Loss before income taxes
Depreciation
Share-based payment expenses
Increase (decrease) in provision for product warranties
Interest and dividend income
Loss (gain) on valuation of investment securities
Subsidy income
Foreign exchange losses (gains)
Loss on valuation of shares of subsidiaries andassociates
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Income taxes paid
Income taxes refund
Subsidies received
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Purchase of investment securities
Purchase of intangible assets
Payments of leasehold deposits
Proceeds from refund of leasehold deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Payments for issuance of shares
Purchase of treasury shares
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
Cash and cash equivalents at end of period-8-(Yen thousand)Current year
(From Apr 1, 2021
To Mar 31, 2022)-362,555
63,74535,419-2,368-60,897-1,418-155,945
71,77732,92817,081-2,096
33,642-4,851

1,422

-

102
455,338-34,779-6,203-231,166
12,780128,008-35,277

32,823-29,862-17,080
5,587
2,990-31,658
59,44136,36041,137-34,968-58,849
2,490
9,736
6,699
-39,923-600,000
700,000-25,100-5,725-1,536987
68,624-600,000
600,000-14,481-40,744-23,000-1,945
2,822-77,348-1,465-43-1,508

-90
-90

2,203

7,549

105,679
2,006,673
2,112,353-109,812
2,112,353
2,002,540

(5) Notes to consolidated financial statements(Notes on going-concern assumption)
Not applicable(Change in accounting policy)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020;
hereinafter referred to as the "Accounting Standard for Revenue Recognition"), etc. from the beginning of the current
fiscal year and recognizes revenue at the amount expected to be received in exchange for the promised goods orservices when control over the promised goods or services is transferred to the customer. The main changes are as
follows.
(1) License revenue
Previously, the Company recognized revenue at the time the license was granted, if a performance obligation is satisfied
at a point in time, even if multiple performance obligations are included. However, the Company has changed its
accounting method to account for the transaction prices of multiple contracts by ratios and other methods based on thearm's length selling price of the products sold individually (or, if the arm's length selling price is not directly observable,
based on the selling price that would be expected if the products were sold individually).
(2) Professional service business
Previously, the Company followed the percentage-of-completion method when the outcome of the construction activity
is deemed certain, and the completed-contract method for other projects. However, the Company has changed to amethod whereby revenue is recognized over a certain period of time as performance obligations are fulfilled, except for
projects with a very short period of time.
The percentage-of-completion method for satisfaction of performance obligations is calculated as the ratio of the actual
cost to the estimated total cost (input method) when the outcome of the performance obligation can be reasonably
measured. If the outcome of the performance obligation cannot be reasonably measured, revenue is recognized only
to the extent of the actual cost incurred, and for projects with very short durations, revenue is recognized when theperformance obligation is completely satisfied.
The Company has followed the transitional treatment prescribed in the proviso of Paragraph 84 of the AccountingStandard for Revenue Recognition, and the cumulative effect of retrospective application of the new accounting policy
prior to the beginning of the current fiscal year is added to or deducted from retained earnings at the beginning of thecurrent fiscal year, and the new accounting policy is applied from such beginning balance. However, the new accounting
policy was not applied retrospectively to contracts for which almost all revenue amounts were recognized in accordancewith the previous treatment prior to the beginning of the current fiscal year by applying the method prescribed in
Paragraph 86 of the Accounting Standard for Revenue Recognition. In addition, the Company has applied the method
prescribed in item (1) of the supplementary provisions of Paragraph 86 of the Accounting Standard for Revenue
Recognition to account for contract modifications made prior to the beginning of the current fiscal year based on thecontract terms after reflecting all contract modifications, and the cumulative effect of such modifications has been added
to or deducted from retained earnings at the beginning of the current fiscal year.
As a result, net sales for the current consolidated fiscal year decreased by 7,305 thousand yen, and operating loss,
ordinary loss, and loss before income taxes increased by 7,305 thousand yen, respectively. There is no impact on the
beginning balance of retained earnings.
As a result of the application of the Accounting Standard for Revenue Recognition, "accounts receivable" which was-9-presented in "current assets" in the consolidated balance sheets in the previous fiscal year, is included in "accounts
receivable and contract assets" from the current fiscal year. In addition, "unearned revenue" which was presented in"current liabilities" is included in "contract liabilities" from the current fiscal year. In accordance with the transitional
treatment prescribed in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassification has
been made for the previous consolidated fiscal year using the new presentation.

(Application of Accounting Standard for Measurement of Fair Value, etc.)
The Company has applied the "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4,
2019; hereinafter referred to as the "Accounting Standard for Fair Value Measurement"), etc. from the beginning of thecurrent fiscal year, and has decided to prospectively apply the new accounting policy set forth in the AccountingStandard for Fair Value Measurement in accordance with the transitional treatment prescribed in paragraph 19 of the
Accounting Standard for Fair Value Measurement and paragraph 44-2 of the Accounting Standard for Financial
Instruments (ASBJ Statement No. 10, July 4, 2019). There is no impact on the consolidated financial statements.

- 10 -

(Segment information, etc.)[Segment information]
The Group's business is comprised of a single segment, the development, manufacture, and sale of IP cores and otherproducts, as well as related operations. Therefore, this information is omitted from this report.

(Per share information)
Previous year

Current year

(From Apr 1, 2020 To Mar 31, 2021)(From Apr 1, 2021 To Mar 31, 2022)

Net assets per share

1,032.07 yen

983.23 yen

Net loss per share-116.03 yen-49.93 yen(Notes)
1. Diluted net income per share is not shown in the above table, since the Company posted a net loss per share andthere are no diluted shares.
2. The basis for calculation of net assets per share is as follows.
Previous year (Mar 31, 2021)

Current year (Mar 31, 2022)

3,250,208

3,095,483

Amount deducted from total net assets (thousand yen)--

Net assets related to common stock at the end of theperiod (thousand yen)

3,250,208

3,095,483

Number of common shares used for calculation of net

3,149,211

3,148,278

Total net assets (thousand yen)assets per share at the end of the period (Shares)

3. The basis for calculation of net loss per share is as follows.
Previous year
(From Apr 1, 2020 To Mar 31, 2021)

Current year
(From Apr 1, 2021 To Mar 31, 2022)

Net loss attributable to owners of theparent (thousand yen)

-364,622-157,197

Amount not attributable to common stock--

Net loss attributable to owners of theparent on common stock-364,622-157,197

Average number of shares of common
stock during the period (shares)

3,142,419

3,148,584

Net loss per share(thousand yen)

(Significant subsequent events)
Not applicable- 11 -

4. Other(1) Recent quarterly business performance
Fiscal year ended March 31, 2022
First Quarter
Apr 2021 - Jun 2021

Second Quarter
Jul 2021 - Sep 2021

Third Quarter
Oct 2021 - Dec 2021

Fourth Quarter
Jan 2022 - Mar 2022

Net sales

250,518

440,014589,060

388,398

Gross profit

69,584

168,322205,938

160,616

Operating income/loss (-)-95,864-14,080

18,023-34,699

Ordinary income/loss (-)-95,848-13,155

18,566-32,193

Income/loss (-) before
income taxes-95,848-13,155

18,566-32,193

Net income/loss (-)-96,369-13,369

18,374-65,526

Net income/loss (-)
attributable to owners of
the parent-96,369-13,675

18,374-65,526

Comprehensive income-95,826-12,419

20,628-67,017-30.60 yen-4.34 yen

5.83 yen-20.81 yen(thousand yen)

Net income/loss (-) per share

End of 1st QuarterEnd of 2nd QuarterEnd of 3rd QuarterEnd of 4th Quarter

Total assets

3,399,847

3,432,453

3,634,784

3,472,189

Net assets

3,154,649

3,141,872

3,162,500

3,095,483

1,001.85 yen

997.90 yen

1,004.45 yen

983.23 yen

First Quarter
Apr 2021 - Jun 2021

Second Quarter
Jul 2021 - Sep 2021

Third Quarter
Oct 2021 - Dec 2021

Fourth Quarter
Jan 2022 - Mar 2022

Net sales

229,456

303,864

300,917

175,693

Gross profit

70,45891,330104,60968,752

Operating loss (-)-114,708-77,257-102,413-130,970

Ordinary loss (-)-93,240-61,988-87,372-118,427

loss (-) before income taxes-93,240-61,988-87,372-119,952

Net loss (-)-93,757-62,505-87,889-120,469

Net loss (-) attributable toowners of the parent-93,757-62,505-87,889-120,469

Comprehensive income-93,666-62,673-88,434-117,060

Net loss (-) per share-29.95 yen-19.90 yen-27.99 yen-38.25 yen

Net assets per share

Fiscal year ended March 31, 2021
(thousand yen)

End of 1st QuarterEnd of 2nd QuarterEnd of 3rd QuarterEnd of 4th Quarter

Total assets

3,684,545

3,730,063

3,698,065

3,477,303

Net assets

3,449,796

3,455,703

3,367,268

3,250,208

1,102.17 yen

1,097.01 yen

1,069.14 yen

1,032.07 yen

Net assets per share- 12 -