# EDGAR Filing Document

**Accession Number:** 0002040291
**File Stem:** 0001641172-25-015020
**Filing Date:** 2025-6
**Character Count:** 1119975
**Document Hash:** 431bfc7c728b4246dba7bc39e3573326
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-015020.hdr.sgml**: 20250613

**ACCESSION NUMBER**: 0001641172-25-015020

**CONFORMED SUBMISSION TYPE**: F-1/A

**PUBLIC DOCUMENT COUNT**: 42

**FILED AS OF DATE**: 20250613

**DATE AS OF CHANGE**: 20250613

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Center Holdings Inc.
- **CENTRAL INDEX KEY:** 0002040291
- **STANDARD INDUSTRIAL CLASSIFICATION:** RADIO TELEPHONE COMMUNICATIONS [4812]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0531

**FILING VALUES:**
- **FORM TYPE:** F-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-286966
- **FILM NUMBER:** 251045543

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** REALIZE SAKAISUJI-HONMACHI BUILDING
- **STREET 2:** ROOM 507, 1-5-31 KYUTAROMACHI, CHUO-KU
- **CITY:** OSAKA CITY
- **NON US STATE TERRITORY:** CAYMAN ISLANDS
- **PROVINCE COUNTRY:** M0
- **BUSINESS PHONE:** 81-06-6263-6808

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** REALIZE SAKAISUJI-HONMACHI BUILDING
- **STREET 2:** ROOM 507, 1-5-31 KYUTAROMACHI, CHUO-KU
- **CITY:** OSAKA CITY
- **NON US STATE TERRITORY:** CAYMAN ISLANDS
- **PROVINCE COUNTRY:** M0

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Center Mobile Co., Ltd.
- **DATE OF NAME CHANGE:** 20241004

**As filed with the U.S. Securities and Exchange Commission on June 13, 2025.**

**Registration No. 333-286966** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

 **AMENDMENT NO. 1**

 **TO**

**FORM F-1**

**REGISTRATION STATEMENT**

**UNDER**

**THE SECURITIES ACT OF 1933**

**Center Holdings Inc.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Cayman Islands** | **4812** | **Not Applicable** |
| (State or other jurisdiction of<br> incorporation or organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**Realize Sakaisuji-Honmachi Building Room 507**

**1-5-31 Kyutaromachi, Chuo-ku, Osaka City, Osaka, 541-0056**

**Japan**

**+81-06-6263-6808**

(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)

**Cogency Global Inc. 122 East 42<sup>nd</sup> Street, 18<sup>th</sup> Floor New York, NY 10168 800-221-0102**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

***With copies to:***

---

| | |
|:---|:---|
| **Ying Li, Esq.**<br> **Brian B. Margolis, Esq.**<br> **Hunter Taubman Fischer & Li LLC**<br> **950 Third Avenue, 19<sup>th</sup> Floor**<br> **New York, NY 10022**<br> **212-530-2206** | **Debbie A. Klis, Esq.**<br> **Olivia Y. Wang, Esq.**<br> **Rimon P.C.**<br> **1050 Connecticut Avenue, NW, Suite 1050**<br> **Washington, DC 20036**<br> **202-935-3390** |

---

**Approximate date of commencement of proposed sale to the public:** Promptly after the effective date of this registration statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933.

Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

**The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the U.S. Securities and Exchange Commission, acting pursuant to such Section 8(a), may determine.**

**EXPLANATORY NOTE**

This registration statement on Form F-1 (File No. 333-286966) contains disclosure that will be circulated as two separate final prospectuses, as set forth below.

● <u>Public offering prospectus</u>. A prospectus (the "Public Offering Prospectus") to be used for the public offering of 3,750,000 Ordinary Shares of the Company (the "Public Offering Shares"), based on an assumed initial public offering price of $[ ], through the underwriters named on the cover page of the Public Offering Prospectus.

● <u>Resale prospectus</u>. A prospectus (the "Resale Prospectus") to be used for the offer and potential resale by the selling shareholders, Kabushiki Kaisha Oekaki Movie, Kabushiki Kaisha Live Freeze, Spirit Advisors LLC, PeakValue, LLC, and B88 Investments Group, LLC (the "Selling Shareholders") of 3,970,014 Ordinary Shares of the Company (the "Selling Shareholder Shares"), to be sold by the Selling Shareholders concurrently with our initial public offering based on an assumed initial public offering price of $[ ], and from time to time thereafter, at prevailing market prices, prices related to prevailing market prices, or privately negotiated prices.

The Resale Prospectus is substantively identical to the Public Offering Prospectus, except for the following principal points:

● it contains different outside and inside front covers and back cover page; among other things, the identification of the underwriters and related compensation for the Public Offering Shares will only be included in the Public Offering Prospectus and the Selling Shareholder Shares will be listed on the outside and inside front covers of the Resale Prospectus without identification of the underwriters and related compensation information;

● it contains different "Offering" sections in the Prospectus Summary section relating to the offering of the Public Offering Shares and the Selling Shareholder Shares, as applicable; such Offering section included in the Public Offering Prospectus will summarize the offering of the Public Offering Shares and such Offering section included in the Resale Prospectus will summarize the offering of the Selling Shareholder Shares;

● it contains different "Use of Proceeds" sections, with the Use of Proceeds section included in the Resale Prospectus only indicating that the Registrant will not receive any proceeds from the sale of the Selling Shareholder Shares by the Selling Shareholders that occur pursuant to this registration statement;

● it does not contain the Capitalization and Dilution sections included in the Public Offering Prospectus;

● a "Selling Shareholders" section is only included in the Resale Prospectus;

● the "Underwriting" section from the Public Offering Prospectus is not included in the Resale Prospectus and the "Plan of Distribution" section is included only in the Resale Prospectus; and

● it does not contain the Legal Matters section and does not include a reference to counsel for the underwriters.

The Company has included in this registration statement a set of alternate pages after the back-cover page of the Public Offering Prospectus (the "Alternate Pages") to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering Prospectus. The Public Offering Prospectus will exclude the Alternate Pages and will be used for the public offering by the Registrant. The Resale Prospectus will be substantively identical to the Public Offering Prospectus except for the addition or substitution of the Alternate Pages and will be used for the resale offering by the Selling Shareholders.

The Selling Shareholders have represented to the Company that they will consider selling some or all of their respective Selling Shareholder Shares registered pursuant to this registration statement immediately after the pricing of the public offering, as requested by the underwriters for the public offering in order to create an orderly, liquid market for our Ordinary Shares. As a result, the sales of our Ordinary Shares registered in this registration statement will result in two offerings by the Registrant taking place concurrently or sequentially, which could affect the price and liquidity of, and demand for, our Ordinary Shares. This risk and other risks are included in "Risk Factors" in each of the Public Offering Prospectus and the Resale Prospectus.

**The information in this preliminary prospectus is not complete and may be changed. We may not sell the securities until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting any offer to buy these securities in any jurisdiction where such offer or sale is not permitted.**

**SUBJECT TO COMPLETION**

**PRELIMINARY PROSPECTUS DATED JUNE 13, 2025**

![](formf1_001.jpg)

**Center Holdings Inc.**

**3,750,000 Ordinary Shares**

This is a firm commitment initial public offering (the "Offering") of our ordinary shares ("Ordinary Shares" or individually, an "Ordinary Share"). We are offering 3,750,000 Ordinary Shares. We expect the initial public offering price of our Ordinary Shares to be in the range of $4.00 to $6.00 per Ordinary Share. Prior to this Offering, there has been no public market for our Ordinary Shares. The Representative (as defined below) may also purchase up to fifteen percent (15%) of the Ordinary Shares sold in the Offering within 45 days to cover over-allotments, if any. We are also registering up to 3,970,014 Ordinary Shares (the "Selling Shareholder Shares") for resale by the selling shareholders named in a separate Resale Prospectus (each, a "Selling Shareholder"), pursuant to the Resale Prospectus. This prospectus will not be used for the offering of Selling Shareholder Shares, and the Resale Prospectus will not be used for this initial public offering.

The sale of the Selling Shareholder Shares in the resale offering is conditioned upon the successful completion of the sale of our Ordinary Shares by the Company in the underwritten primary offering. The sales price to the public of the Selling Shareholder Shares will initially be fixed at the initial public offering price of our Ordinary Shares offered in this prospectus. Following listing of our Ordinary Shares on the Nasdaq Capital Market ("Nasdaq"), the per Ordinary Share offering price of the Selling Shareholder Shares to be sold by the Selling Shareholders may be sold at prevailing market prices, prices related to prevailing market prices, or privately negotiated prices. We will not receive any of the proceeds from the sale of the Ordinary Shares by the Selling Shareholders named in the Resale Prospectus.

We have applied to list our Ordinary Shares on the Nasdaq Capital Market ("Nasdaq") under the symbol "CTMB". It is a condition to the closing of this Offering that our Ordinary Shares are approved for listing on Nasdaq. At this time, Nasdaq has not yet approved our application to list our Ordinary Shares and there is no guarantee or assurance that our Ordinary Shares will be approved for listing on Nasdaq.

**Neither the United States Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense. Investing in our Ordinary Shares involves a high degree of risk, including the risk of losing your entire investment. See "*Risk Factors*" beginning on page 10 to read about factors you should consider before buying our Ordinary Shares.**

We are an "emerging growth company" as defined under the federal securities laws and will be subject to reduced public company reporting requirements. Please read the disclosures beginning on page 28 of this prospectus for more information.

Following the completion of this Offering, our issued and outstanding share capital will consist of the Ordinary Shares. Mr. Tatsuya Nakagoshi, our founder and director, will hold approximately 71.63% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the Representative's over-allotment option, or approximately 70.25%, assuming full exercise of the Representative's over-allotment option, based on an assumed initial public offering price of $4.00 per Ordinary Share. As such, we will be deemed to be a "controlled company" under Nasdaq Listing Rule 5615(c). However, even if we are deemed to be a "controlled company," we do not intend to avail ourselves of the corporate governance exemptions afforded to a "controlled company" under the Nasdaq Listing Rules. Nevertheless, as a foreign private issuer, we intend to follow home country practice. Further, for as long as Mr. Nakagoshi beneficially owns a majority of the voting power of our outstanding Ordinary Shares, he will generally be able to control the outcome of matters submitted to our shareholders for approval, including the election of directors, without the approval of our other shareholders. See "*Risk Factors—Risks Relating to this Offering and the Trading Market—As a foreign private issuer, we intend to follow home country practice even though we will be considered a "controlled company" under Nasdaq corporate governance rules, which could adversely affect our public shareholders*," and see also "*Management—Controlled Company*."

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Ordinary Share** | **Total Without <br> Over-Allotment <br> Option** | **Total With <br> Over-Allotment <br> Option** |
| **Initial public offering price** | $| $| $|
| **Underwriters' discounts<sup>(1)</sup>** | $| $| $|
| **Proceeds to our company before expenses<sup>(2)</sup>** | $| $| $|

---

(1) Represents an underwriting discount equal to 7.0% per Ordinary Share or 6.0% per Ordinary Share for the proceeds from investors identified and introduced directly by us.

(2) In addition to the underwriting discounts listed above, we have agreed to: (i) reimburse the underwriters for certain expenses; and (ii) provide a non-accountable expense allowance equal to 1% of the gross proceeds of this offering payable to R.F. Lafferty & Co., Inc, the representative of several underwriters of this offering (the "Representative"). See "*Underwriting*" for additional information regarding total underwriter compensation.

This Offering is being conducted on a firm commitment basis. The lead underwriter is obligated to take and pay for all of the Ordinary Shares if any such Ordinary Shares are taken. We have granted to the Representative an option, exercisable within 45 days from the date of this prospectus, to purchase up to an additional 15.0% of the total number of our Ordinary Shares to be offered hereby (excluding shares subject to this option), solely for the purpose of covering over-allotments, at the public offering price less the underwriting discounts. If the lead underwriter exercises the option in full, and assuming an offering price of $4.00 per Ordinary Share, which is the low end of the price range set forth on the cover page of this prospectus, the total gross proceeds to us, before underwriting discounts, commissions and expenses, will be approximately $___ million.

The underwriters expect to deliver the Ordinary Shares against payment in U.S. dollars in New York, New York on or about [ ], 2025 through the book-entry facilities of The Depository Trust Company.

![](formf1_002.jpg)

Prospectus dated [ ], 2025

![](formf1_003.jpg)

![](formf1_005.jpg)

![](formf1_006.jpg)

![](formf1_007.jpg)![](formf1_008.jpg)

![](formf1_009.jpg)

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| [PROSPECTUS SUMMARY](#a_001) | 1 |
| [RISK FACTORS](#a_002) | 10 |
| [DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS](#a_003) | 28 |
| [ENFORCEABILITY OF CIVIL LIABILITIES](#a_004) | 29 |
| [USE OF PROCEEDS](#a_005) | 30 |
| [DIVIDEND POLICY](#a_006) | 31 |
| [CAPITALIZATION](#a_007) | 32 |
| [DILUTION](#a_008) | 33 |
| [CORPORATE HISTORY AND STRUCTURE](#a_009) | 34 |
| [MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_010) | 35 |
| [BUSINESS](#a_011) | 48 |
| [REGULATIONS](#a_012) | 69 |
| [MANAGEMENT](#a_013) | 74 |
| [PRINCIPAL SHAREHOLDERS](#a_014) | 81 |
| [RELATED PARTY TRANSACTIONS](#a_015) | 82 |
| [DESCRIPTION OF SHARE CAPITAL](#a_016) | 83 |
| [ORDINARY SHARES ELIGIBLE FOR FUTURE SALE](#a_017) | 91 |
| [MATERIAL INCOME TAX CONSIDERATIONS](#a_018) | 93 |
| [UNDERWRITING](#a_019) | 99 |
| [EXPENSES RELATING TO THIS OFFERING](#a_020) | 103 |
| [LEGAL MATTERS](#a_021) | 103 |
| [EXPERTS](#a_022) | 103 |
| [WHERE YOU CAN FIND ADDITIONAL INFORMATION](#a_023) | 103 |
| [INDEX TO FINANCIAL STATEMENTS](#a_024) | F-1 |

---

No dealer, salesperson or other person is authorized to give any information or to represent anything not contained in this prospectus or in any free writing prospectus we may authorize to be delivered or made available to you. You must not rely on any unauthorized information or representations. This prospectus is an offer to sell only the Ordinary Shares offered hereby, and only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date.

Neither we nor any of the underwriters has done anything that would permit this offering or possession or distribution of this prospectus or any filed free writing prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus or any free writing prospectus must inform themselves about, and observe any restrictions relating to, the Offering and the distribution of this prospectus or any free writing prospectus outside of the United States. This Offering is being made in the United States and elsewhere solely on the basis of the information contained in this prospectus. You should assume that the information appearing in this prospectus is accurate only as of the date on the front cover of this prospectus, regardless of the time of delivery of this prospectus or any sale of our Ordinary Shares. Our business, financial condition, results of operations and prospects may have changed since the date on the front cover of this prospectus.

**Until , 2025 (the 25th day after the date of this prospectus), all dealers that buy, sell or trade the Ordinary Shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

i

**About this Prospectus**

We and the underwriters have not authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses prepared by us or on our behalf or to which we have referred you. We take no responsibility for and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the Ordinary Shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. We are not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted or where the person making the offer or sale is not qualified to do so or to any person to whom it is not permitted to make such offer or sale. The information contained in this prospectus is current only as of the date on the front cover of this prospectus. Our business, financial condition, results of operations, and prospects may have changed since that date.

Our functional currency and reporting currency are the Japanese yen ("JPY" or "¥"), the legal currency of Japan. The terms "dollar" or "$" refer to U.S. dollars, the legal currency of the United States. Convenience translations included in this prospectus are based on the exchange rate of JPY to U.S. dollars of ¥150.41=$1.00. Changes in the exchange rate will affect the amount of our obligations and the value of our assets in terms of U.S. dollars, which may result in an increase or decrease in the amount of our obligations (expressed in dollars) and the value of our assets, including accounts receivable (expressed in dollars).

**Conventions that Apply to this Prospectus**

Unless otherwise indicated or the context requires otherwise, references in this prospectus to:

● "big data" are to large, diverse sets of information collected quickly from various sources, used to uncover patterns, make predictions, and improve products, services, and decisions;

● "Cayman Companies Act" are to the Companies Act (As Revised) of the Cayman Islands;

● "Center Mobile Cayman" are to Center Holdings Inc., an exempted company limited by shares incorporated under the laws of the Cayman Islands;

● "Center Mobile Japan" are to Center Mobile Co., Ltd., a joint-stock corporation with limited liability organized under Japanese law and a wholly owned subsidiary of Center Mobile Cayman;

● "Companies Act" are to the Companies Act of Japan (Act No. 86 of 2005, as amended);

● "FINRA" are to the Financial Industry Regulatory Authority;

● "FourM" are to FourM Co., Ltd, a Japanese internet advertising company;

● "full range" of 4G LTE voice, texting, and data services includes the ability to make clear phone calls, send and receive text messages, and access the internet at moderate to high speeds for web browsing, streaming videos, downloading files, and using apps;

● "Ordinary Shares" are to the ordinary shares of Center Mobile Cayman of par value US$0.0000001 each;

● "Pay Storage" are to Pay Storage Co., Ltd., a wholly-owned subsidiary of Center Mobile Japan;

● "SEC" are to the U.S. Securities and Exchange Commission; and

● "we," "us," "our," "our Company," or the "Company" are to one or more of Center Mobile Cayman and its operating subsidiary, Center Mobile Japan, and Pay Storage, as the case may be.

Unless the context indicates otherwise, all information in this prospectus assumes no exercise by the Representative of its over-allotment option.

ii

**PROSPECTUS SUMMARY**

*The following summary is qualified in its entirety by, and should be read in conjunction with, the more detailed information and financial statements included elsewhere in this prospectus. In addition to this summary, we urge you to read the entire prospectus carefully, especially the risks of investing in our Ordinary Shares, discussed under "Risk Factors," before deciding whether to invest in our Ordinary Shares.*

**Overview**

We conduct all of our operations through our subsidiary in Japan, Center Mobile Japan and its subsidiary, Pay Storage. Center Mobile Japan is a mobile connectivity and wireless communications services provider in Japan, offering a "full range" of 4G LTE voice, texting, and data services covering all areas throughout Japan. Our customers are attracted to our services because of our competitive prices, flexible monthly plans, the high quality and stability of our services, and our innovative business model that allows our customers to lower their monthly fees. We offer such services on a monthly basis for specified quantities of minutes or amounts of data selected in advance. In addition, we are, as of the date of this prospectus, one of the few mobile connectivity and wireless communications services providers in Japan operating an innovative business model that allows our customers to lower their monthly fees for our services by watching advertisements or playing games through our proprietary app, "PLAIO." Through our business model that incentivizes our customers to watch advertisements through PLAIO, we are able to receive advertising fees from advertisers and use them to reward those customers who watched advertisements in the form of "points," which may be used by them to lower their monthly fees for our mobile connectivity and wireless communications services.

As a mobile virtual network operator ("MVNO"), we provide mobile connectivity and wireless communications services in Japan by using the infrastructure and communication system of NTT Docomo, Inc. ("NTT Docomo"), one of the largest Japanese mobile network operators ("MNO") in terms of subscription market share. To provide mobile connectivity and wireless communications services to our customers, we purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards from FreeBit Co., Ltd. ("FreeBit"), a Japanese mobile virtual network enabler ("MVNE") that also purchases wholesale the wireless network infrastructure from NTT Docomo, and distribute the SIM cards to OEM partners, retailers who distribute the SIM cards under their own brands ("OEM Partners"), or to customers through our online store, directly-operated stores, franchise stores, and distributors under our name (the "SIM Card Business").

Because we do not own or operate a physical network or relevant appliances and equipment, we are free from related capital expenditures and, therefore, are able to focus our resources on providing competitive prices for our services against MNOs. Furthermore, in addition to the monthly fees from our customers, we are also able to generate advertising revenue through "PLAIO," our proprietary app. While it is common for other mobile connectivity and wireless communications services providers that operate diversified businesses to generate additional revenue by selling other services to existing customers for the mobile connectivity and wireless communications services, our innovative business model allows us to generate additional advertising revenue without the sales of other services, enabling two revenue streams from a single service. This unique dual revenue structure with lower overhead provides us with additional funds to provide high-quality and stable services by leasing sufficient bandwidth for mobile connectivity and wireless communications services from FreeBit yet at competitive prices to our customers.

As of November 30, 2024, we had entered into approximately 28,212 service agreements in connection with our mobile connectivity and wireless communications services and our revenue generated from the SIM Card Business was approximately JPY555,309 thousand ($3,692 thousand), JPY1,060,404 thousand ($7,050 thousand) and JPY1,312,065 thousand ($8,723 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 53.4%, 67.1% and 74.5% of our total revenue for those periods, respectively.

We also operate an internet service business to provide communications services other than those we provide under the SIM Card Business (the "Internet Business"). Under the Internet Business, we offer three types of communications services: the mobile router connectivity service, the home wireless communications service, and the home internet service. For the mobile router connectivity service and the home wireless communications service, we, as an MVNO, purchase wholesale SIM cards and mobile connectivity and wireless communications services and applicable mobile routers from an MVNE and sell our wireless communications services to the customers through our retail channels; for the home internet service, we purchase internet access services and applicable home routers wholesale from an internet access service provider that purchases the optical fiber system and internet access services wholesale from telecom companies and sell our internet access services to customers through our retail channels.

As of November 30, 2024, we had entered into approximately 1,595 service agreements under the Internet Business, and our revenue generated from the Internet Business was approximately JPY47,230 thousand ($314 thousand), JPY44,485 thousand ($296 thousand) and JPY73,093 thousand ($486 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 4.5%, 2.8% and 4.6% of our total revenue for those periods, respectively.

In addition to the SIM Card Business and the Internet Business, we currently also operate an outsourcing business (the "Outsourcing Business"). Under the Outsourcing Business, we work as a staffing agency, and our goal and policy are to provide a more stable working environment and conditions for job seekers. Unlike most of the staffing agencies in Japan that only hire job seekers and dispatch them to their corporate clients without providing much training, leaving the training to such corporate clients, we hire job seekers as our full-time employees and provide basic training to help them fit into the workplaces and positions that we consider the best match for them based on their willingness, interests, personalities, experiences, requirements, and our corporate clients' needs before dispatching them to our corporate clients We also focus on the welfare of our employees and, we believe, offer more competitive employment conditions compared to those of other staffing agencies in Japan. By doing so, we may provide a more stable working environment and conditions for job seekers, which benefits us in recruiting more talented and competent personnel to appeal to more corporate clients. For each dispatch, our corporate clients pay us a monthly dispatch fee, and we then pay our employees who are dispatched monthly salaries, transportation allowance, and incentive bonuses out of the dispatch fees. When our full-time employees are not dispatched to our corporate clients, they generally work at our office and assist in matters such as managing dispatched employees and acquiring new corporate clients.

In addition, for job seekers who do not intend to take the dispatch path, we provide the service of acting as an intermediary, introducing them to appropriate hirers based on job seekers' willingness, interests, personalities, experiences, requirements, and the hirers' needs. In particular, in some special cases of blue-collar job seekers, if they face financial difficulties before getting hired, we support them with a certain amount of living expenses for a certain period of time. By doing so, we expect to make our service appealing to more job seekers, enabling us to secure the source of job seekers. After the job seekers are hired, we charge the hirers referral fees no greater than 30% of the workers' estimated annual compensation package.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, our revenue generated from the Outsourcing Business was approximately JPY399,827 thousand (2,658 thousand), JPY264,865 thousand ($1,761 thousand) and JPY73,408 thousand ($488 thousand), respectively, which accounted for 38.4%, 16.8% and 4.2% of our total revenue for those periods, respectively.

In addition to our SIM Card Business, Internet Business, and Outsourcing Business, we currently also operate a travel business (the "Travel Business"). Through cooperating with our travel business partners, we operate a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans and hotel plus Shinkansen (i.e., the Japanese bullet trains) ticket travel plans. In most cases, our prices are lower than wholesale prices. While our prices may sometimes be slightly higher than the wholesale price, they are still lower than the official prices set by the hotels, airlines, and the Shinkansen company. We charge a monthly subscription fee of 2,530 Japanese yen (approximately $17). As of November 30, 2024, we had approximately 4,769 subscribers, and our revenue generated from the Travel Business was approximately JPY58,596 thousand ($390 thousand), JPY142,257 thousand ($946 thousand) and JPY229,812 thousand ($1,528 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 6.0%, 9.0% and 13.0% of our total revenue for those periods, respectively.

We operate our SIM Card Business, Internet Business, and Travel Business through Center Mobile Japan and operate our Outsourcing Business through Pay Storage, the wholly owned subsidiary of Center Mobile Japan. Both Center Mobile Japan and Pay Storage are based in Japan. Since investors will invest in Center Mobile Cayman, a holding company without substantial operations, our cash flows and our ability to meet our obligations depend on the cash flows of Center Mobile Japan and Pay Storage and the payment of funds by Center Mobile Japan and Pay Storage to us in the form of dividends, distributions or otherwise.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, our total revenue was JPY1,039,866 thousand (approximately $6,914 thousand), JPY1,583,214 thousand (approximately $10,526 thousand) and JPY1,760,423, thousand (approximately $11,704 thousand), respectively, and our net income was JPY29,081 thousand (approximately $193 thousand), JPY40,278 thousand (approximately $268 thousand) and JPY291,724 thousand (approximately $1,940 thousand), respectively.

Presently, we intend to expand into the fields of a water dispenser business and to develop our original smartphones. The water dispenser business plans to develop a model with a hot water mode for health-conscious users, a baby formula mode for preparing infant formula, advanced sterilization functions, and IoT (i.e., Internet of Things) technology. In connection with the development of our original smartphones, to date, we have completed market research and prepared to form partnerships with companies that will support development, as well as manufacturers who will handle production. Next steps involve finalizing the product design, moving into mass production, and developing an upgraded version of the water dispenser with additional features, along with obtaining relevant patents.

**Competitive Strengths**

We believe the following competitive strengths are essential for our success and differentiate us from our competitors:

● competitive price and an innovative business model;

● high quality and stability of our mobile connectivity and wireless communications services;

● experienced management team with strong technical and operational expertise;

● we have developed nationwide retail channels and a flexible expansion model.

**Growth Strategies**

We intend to grow our business using the following key strategies:

● continue to grow our SIM Card Business;

● increase our visibility and brand awareness by advertising; and

● expand into the fields of water dispenser business and develop our original smartphones.

**Our Challenges**

We face risks and uncertainties in realizing our business objectives and executing our strategies, including but not limited to the following significant challenges:

● substantial dependence on the success of franchise stores and OEM Partners for customer acquisition in the SIM Card Business and Internet Business;

● reliance on MVNEs, MNOs, and other third-party service providers in the SIM Card Business and Internet Business;

● dependence on FourM for displaying advertisements to customers through the PLAIO application and generating advertising revenue; and

● reliance of the Outsourcing Business on dispatch fees paid by PayPay Corporation.

**Corporate Information**

Our headquarters are located at Realize Sakaisuji-Honmachi Building Room 507, 1-5-31 Kyutaromachi, Chuo-ku, Osaka City, Osaka, 541-0056, Japan and our phone number is +81-06-6263-6808. Our registered office in the Cayman Islands is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands. Our website address is <u>https://centermobile.co.jp</u>. The information contained in, or accessible from, our website or any other website does not constitute a part of this prospectus or the registration statement of which it forms a part. Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168.

**Corporate Structure** 

Center Mobile was incorporated as a joint-stock corporation (*kabushiki kaisha*) with limited liability under Japanese law on June 2, 2020, in Osaka, Japan. The following chart illustrates our corporate structure as of the date of this prospectus and upon completion of this Offering and does not include an aggregate of 3,970,014 Selling Shareholder Shares.

![](formf1_010.jpg)

(1) The pre-IPO percentages are based upon 24,720,473 Ordinary Shares issued and outstanding as of the date of this prospectus. The post-IPO percentages are based on 28,470,473 Ordinary Shares issued and outstanding after this Offering, assuming no exercise of the over-allotment option.

Following the completion of this Offering, Mr. Tatsuya Nakagoshi, our founder and director, will hold approximately 71.63% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the Representative's over-allotment option, or approximately 70.25%, assuming full exercise of the Representative's over-allotment option, based on an assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus. As such, we will be deemed to be a "controlled company" under Nasdaq Listing Rule 5615(c). However, even if we are deemed to be a "controlled company," we do not intend to avail ourselves of the corporate governance exemptions afforded to a "controlled company" under the Nasdaq Listing Rules. Nevertheless, as a foreign private issuer, we intend to follow home country practice. Further, for as long as Mr. Nakagoshi beneficially owns a majority of the voting power of our outstanding Ordinary Shares, he will generally be able to control the outcome of matters submitted to our shareholders for approval, including the election of directors, without the approval of our other shareholders. See "*Risk Factors—Risks Relating to this Offering and the Trading Market—As a foreign private issuer, we intend to follow home country practice even though we will be considered a "controlled company" under Nasdaq corporate governance rules, which could adversely affect our public shareholders*," and see also "*Management—Controlled Company*."

**Implications of Being an "Emerging Growth Company"**

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). An "emerging growth company" may take advantage of reduced reporting requirements that are otherwise applicable to larger public companies. In particular, as an emerging growth company, we:

● may present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations;

● are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives, and elements and analyzing how those elements fit with our principles and objectives, which is commonly referred to as "compensation discussion and analysis;"

● are not required to obtain an attestation and report from our auditors on our management's assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

● are not required to obtain a non-binding advisory vote from our shareholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on frequency," and "say-on-golden-parachute" votes);

● are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

● are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act; and

● will not be required to conduct an evaluation of our internal control over financial reporting until our second annual report on Form 20-F following the effectiveness of our initial public offering.

We intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under §107 of the JOBS Act.

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions until we no longer meet the definition of an emerging growth company. The JOBS Act provides that we would cease to be an "emerging growth company" at the end of the fiscal year in which the fifth anniversary of our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act of 1933, as amended (the "Securities Act") occurred, if we have more than $1.235 billion in annual revenue, have a public float of $700 million or more, or issue more than $1 billion in principal amount of non-convertible debt over a three-year period.

**Foreign Private Issuer Status**

We are a foreign private issuer within the meaning of the rules under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As such, we are exempt from certain provisions applicable to United States domestic public companies. For example:

● we are not required to provide as many Exchange Act reports, or as frequently, as a domestic public company;

● for interim reporting, we are permitted to comply solely with our home country requirements, which are less rigorous than the rules that apply to domestic public companies;

● we are not required to provide the same level of disclosure on certain issues, such as executive compensation;

● we are exempt from the provisions of Regulation FD aimed at preventing issuers from making selective disclosures of material non-public information;

● we are not required to comply with the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act; and

● we are not required to comply with Section 16 of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and establishing insider liability for profits realized from any "short-swing" trading transaction.

As a foreign private issuer, Nasdaq corporate governance rules allow us to follow corporate governance practice in our home country, Cayman Islands, with respect to appointments to our board of directors and committees. We intend to follow home country practice, as permitted by Nasdaq. See "*Risk Factors—Risks Relating to this Offering and the Trading Market—Because we are a foreign private issuer and intend to take advantage of exemptions from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer*" beginning on page 26 of this prospectus. Accordingly, you would not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.

**Controlled Company**

Upon completion of this Offering, Mr. Tatsuya Nakagoshi, our founder and director, will hold approximately 71.63% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the Representative's over-allotment option, or approximately 70.25%, assuming full exercise of the Representative's over-allotment option, in each case, based on an assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus.

As a result, we will be deemed to be a "controlled company" for the purpose of the Nasdaq listing rules. As a controlled company, we are permitted to elect to rely on certain exemptions from the obligations to comply with certain corporate governance requirements, including:

● an exemption from the rule that a majority of our board of directors consist of independent directors;

● an exemption from the rule that our director nominees be selected or recommended solely by independent directors; and

● an exemption from the rule that we have a nominating and corporate governance committee and a compensation committee that are composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committees.

Consequently, you will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements.

As a foreign private issuer, however, Nasdaq corporate governance rules allow us to follow corporate governance practice in our home country, Cayman Islands, with respect to appointments to our board of directors and committees. We intend to follow home country practice, as permitted by Nasdaq, rather than rely on the "controlled company" exception to the corporate governance rules. See "*Risk Factors—Risks Relating to this Offering and the Trading Market—Because we are a foreign private issuer and intend to take advantage of exemptions from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer*." Further, for as long as Mr. Nakagoshi beneficially owns a majority of the voting power of our outstanding Ordinary Shares, he will generally be able to control the outcome of matters submitted to our shareholders for approval, including the election of directors, without the approval of our other shareholders. Accordingly, you would not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.

**Summary of Risk Factors**

Investing in our Ordinary Shares involves significant risks. You should carefully consider all of the information in this prospectus before making an investment in our Ordinary Shares. Below please find a summary of the principal risks we face, organized under relevant headings. These risks are discussed more fully in the section titled "Risk Factors."

***Risks Relating to Our Business***

 ****

The following summarizes some of the more important risks and uncertainties related to an investment in the securities offered hereby. It is not a summary of all of the risks we face. For a more detailed discussion of risks related to our securities, please see the section captioned "*Risk Factors*" beginning on page 10 of the prospectus.

Risks and uncertainties related to our business include, but are not limited to, the following:

● our dependence on MVNEs, their MNOs, and other third-party service providers could prevent us from continuously providing our services to our customers, which could result in decreased sales and revenue and loss of market share (see the disclosure beginning on page 10 of this prospectus);

● our ability to provide travel plans at competitive prices is crucial to the success of our Travel Business. If we are unable to continue to provide attractive travel plans, the number of subscribers of our travel services may decline, which could cause a decrease in our Travel Business revenue and materially and adversely affect our business, financial condition, and results of operations (see the disclosure beginning on page 11 of this prospectus);

● we rely greatly on FourM for showing advertisements to our customers through our PLAIO application and collecting advertising revenue under contractual terms. Unexpected termination of our contractual relationship with FourM would materially and adversely affect our business, financial condition, and results of operations (see the disclosure beginning on page 11 of this prospectus);

● we have a limited operating history, and face significant challenges and will incur substantial expenses as we implement our growth strategy, and it may be difficult for potential investors to evaluate our business (see the disclosure beginning on page 11 of this prospectus);

● we operate in highly competitive industries across our SIM Card Business, Internet Business, and Outsourcing Business and Travel Business, and we may not be able to compete effectively, especially against competitors with greater financial, technical, personnel, marketing, and other resources (see the disclosure beginning on page 11 of this prospectus);

● our business depends on a strong brand recognition, and if we fail to respond to customer requirements or are not able to maintain and enhance our brand, our business and results of operations may be harmed (see the disclosure beginning on page 12 of this prospectus);

● our business is dependent on our ability to expand our services across our SIM Card Business, Internet Business, and Outsourcing Business and Travel Business, and we may not be able to compete effectively, especially against competitors with greater name recognition, greater operating revenues, larger customer bases, longer customer relationships and greater marketing resources than we have, while maintaining the quality of the services provided and keeping a positive customer experience (see the disclosure beginning on page 12 of this prospectus);

● if we are unable to keep our strengths, such as keeping SIM card service prices competitive and attractive, and providing high-quality internet services, our profitability will suffer (see the disclosure beginning on page 12 of this prospectus);

● the loss of key personnel could have a material adverse effect on our business, as our success is substantially dependent on the continued service of our senior management and technical staff (see the disclosure beginning on page 12 of this prospectus); and

● if we fail to maintain and increase our retail channels, our business, financial condition, and results of operations could be materially and adversely affected (see the disclosure beginning on page 13 of this prospectus).

***Risks Relating to this Offering and the Trading Market***

 ****

In addition to the risks described above, we are subject to general risks and uncertainties related to this Offering and the trading market of our Ordinary Shares, including, but are not limited to, the following:

● you will experience immediate and substantial dilution in the net tangible book value of Ordinary Shares purchased (see the disclosure beginning on page 21 of this prospectus);

● future issuances of our Ordinary Shares or securities convertible into, or exercisable or exchangeable for, our Ordinary Shares could cause the market price of our Ordinary Shares to decline and would result in the dilution of your holdings (see the disclosure beginning on page 21 of this prospectus);

● the sale or availability for sale of substantial amounts of our Ordinary Shares could adversely affect their market price (see the disclosure beginning on page 21 of this prospectus);

● the market price of our Ordinary Shares may be volatile or may decline regardless of our operating performance, and you may not be able to resell your Ordinary Shares at or above the initial public offering price (see the disclosure beginning on page 22 of this prospectus);

● if we fail to implement and maintain an effective system of internal control, we may fail to meet our reporting obligations or be unable to accurately report our results of operations or prevent fraud, and investor confidence and the market price of our Ordinary Shares may be materially and adversely affected (see the disclosure beginning on page 23 of this prospectus);

● we will incur substantially increased costs as a result of being a public company (see the disclosure beginning on page 23 of this prospectus);

● because we are a foreign private issuer and intend to take advantage of exemptions from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer (see the disclosure beginning on page 26 of this prospectus); and

● if we cannot satisfy, or continue to satisfy, the listing requirements and other rules of Nasdaq, our Ordinary Shares may not be listed or may be delisted, which could negatively impact the price of our Ordinary Shares and your ability to sell them (see the disclosure beginning on page 26 of this prospectus).

**THE OFFERING**

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| | |
|:---|:---|
| **Securities offered by us** | 3,750,000 Ordinary Shares, excluding the 562,500 Ordinary Shares, underlying the over-allotment option |
| **Over-allotment option** | We have granted to the Representative an option, exercisable within 45 days from the date of this prospectus, to purchase up to an additional 15.0% of the total number of Ordinary Shares to be offered hereby. |
| **Initial Public Offering Price per Ordinary Share** | We currently estimate that the initial public offering price will be in the range of $4.00 to $6.00 per Ordinary Share. |
| **Securities offered by Selling Shareholders pursuant to a separate Resale Prospectus** | 3,970,014 Ordinary Shares |
| **Ordinary Shares outstanding prior to completion of this Offering** | 24,720,473 Ordinary Shares |
| **Ordinary Shares outstanding immediately after this Offering** | 28,470,473 Ordinary Shares, assuming no exercise of the Representative's over-allotment option |
|  | 29,032,973 Ordinary Shares, assuming full exercise of the Representative's over-allotment option |
| **Listing** | We have applied to have our Ordinary Shares listed on Nasdaq. The closing of this Offering is conditioned upon Nasdaq's approval of the listing of our Ordinary Shares on Nasdaq, and there is no guarantee or assurance that our Ordinary Shares will be approved for listing on Nasdaq. |

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| | |
|:---|:---|
| **Proposed ticker symbol** | "CTMB" |
| **Transfer Agent** | VStock Transfer, LLC |
| **Use of proceeds** | We estimate that we will receive aggregate net proceeds of approximately $12.8 million (or $14.8 million if the Representative exercises its option to purchase additional Ordinary Shares in full) from this Offering, based on the assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts, non-accountable expense allowance, and estimated offering expenses payable by us. |
|  | We intend to use the net proceeds from this Offering for the development and expansion of our water dispenser business and original smartphones business, and for the expansion of our existing businesses. See "*Use of Proceeds*" on page 30 for more information. |
| **Lock-up** | We and each of our officers, directors, and holder(s) of 5.0% of the outstanding shares of Ordinary Shares as of the effective date of the registration statement of which this prospectus forms a part have agreed and will enter into customary lock-up agreements with the Representative not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any of our securities for a period of 180 days from the date of this prospectus. See "*Underwriting—Lock-Up Agreements*" for more information. |
| **Risk factors** | The Ordinary Shares offered hereby involve a high degree of risk. You should read "*Risk Factors*," beginning on page 10 for a discussion of factors to consider before deciding to invest in our Ordinary Shares. |
| **Controlled company** | Mr. Tatsuya Nakagoshi, our founder and director, will hold approximately 71.63% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the Representative's (as defined below) over-allotment option, or approximately 70.25%, assuming full exercise of the Representative's over-allotment option, based on an assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus. As such, we will be deemed to be a "controlled company" under Nasdaq Listing Rule 5615(c). However, even if we are deemed to be a "controlled company," we do not intend to avail ourselves of the corporate governance exemptions afforded to a "controlled company" under the Nasdaq Listing Rules. Nevertheless, as a foreign private issuer, we intend to follow home country practice. Further, for as long as Mr. Nakagoshi beneficially owns a majority of the voting power of our outstanding Ordinary Shares, he will generally be able to control the outcome of matters submitted to our shareholders for approval, including the election of directors, without the approval of our other shareholders. See "*Risk Factors—Risks Relating to this Offering and the Trading Market—As a foreign private issuer, we intend to follow home country practice even though we will be considered a "controlled company" under Nasdaq corporate governance rules, which could adversely affect our public shareholders*," and see also "*Management—Controlled Company*." |
| **Payment and Settlement** | The underwriters expect to deliver the Ordinary Shares against payment therefor through the facilities of the Depository Trust Company ("DTC") on [ ], 2025. |

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**RISK FACTORS**

*An investment in our Ordinary Shares involves a high degree of risk. Before deciding whether to invest in our Ordinary Shares, you should consider carefully the risks described below, together with all of the other information set forth in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes. If any of these risks actually occurs, our business, financial condition, results of operations, or cash flow could be materially and adversely affected, which could cause the trading price of our Ordinary Shares to decline, resulting in a loss of all or part of your investment. The risks described below and discussed in other parts of this prospectus are not the only ones that we face. Additional risks not presently known to us or that we currently deem immaterial may also affect our business. You should only consider investing in our Ordinary Shares if you can bear the risk of loss of your entire investment.*

**Risks Relating to Our Business**

***Our dependence on MVNEs, their MNOs, and other third-party service providers could prevent us from continuously providing our services to our customers, which could result in decreased sales and revenue and loss of market share.***

For our SIM Card Business, we purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards from FreeBit, a Japanese MVNE that also purchases wholesale the wireless network infrastructure from NTT Docomo. While our service agreement has been automatically renewed every year since 2022, we have not entered into a long-term service agreement with FreeBit. See "*Business—SIM Card Business*." Moreover, for our Internet Business, we purchase wholesale SIM cards and mobile connectivity and wireless communications services and applicable mobile routers from Network Consulting Co., Ltd, a Japanese MVNE that purchases wholesale SIM cards and mobile connectivity and wireless communications services ("Network Consulting"), and purchase applicable mobile routers wholesale from UQ Communications Inc., a Japanese MNO. In addition, we purchase internet access services and applicable home routers wholesale from NEXT BB Co., Ltd ("NEXT BB"), a Japanese internet access service provider that purchases the optical fiber system and internet access services wholesale from NTT East Corporation and NTT West Corporations. See "*Business—Internet Business.*" Our service agreements with Network Consulting and NEXT BB have an automatic renewal term, allowing us to continue the contractual relationship under the same terms, unless either party notifies the other of its intention to the contrary in writing no later than one month before the expiration of the then current term. However, there is no assurance that FreeBit will continue to purchase wholesale the wireless network infrastructure from NTT Docomo and renew our service agreement with us. It is also possible that Network Consulting or NEXT BB may terminate our service agreement for our Internet Business. If the above MVNEs and other third-party service providers determine to terminate our service agreements or replacing existing terms with unfavorable ones, we may have no means of replacing these services on a timely basis or at all, which may adversely affect our business, financial condition, and our results of operations.

In addition, we rely greatly on network services provided by our MVNEs, their MNOs, and other third-party services providers, which may subject to interruptions, errors, or delays with respect to their backbone network or service facilities caused by human errors, interruptions, errors, or delays with service facilities, or natural factors, including damage from fire, earthquakes, or other natural disasters, power loss, sabotage, computer hackers, cyber-attack, human error, computer viruses, and other similar events. If our MVNEs, their MNOs, and other third-party services providers experience any of these incidents and will not be able to repair or regain stable network services in a timely manner or at all, our network capacity provided by such MVNEs, their MNOs, and/or other third-party service providers will suffer. As a result, the credibility of our network and customer satisfaction could decrease significantly, which could have a material adverse effect on our business and results of operations.

***Our ability to provide travel plans at competitive prices is crucial to the success of our Travel Business. If we are unable to continue to provide attractive travel plans, the number of subscribers of our travel services may decline, which could cause a decrease in our Travel Business revenue and materially and adversely affect our business, financial condition, and results of operations.***

We believe that the success of our Travel Business is dependent on our ability to provide subscribers with access to travel plans offered by partners at competitive prices. By cooperating with our travel business partners, we provide services that allow subscribers to purchase travel plans from our partners, at prices that are lower than the wholesale price in most cases. While our prices may sometimes be slightly higher than the wholesale price, they are still lower than the official prices set by the hotels, airlines, and the Shinkansen (Japanese bullet trains) company. If we are unable to keep travel plans offered by our partners via our portal site attractive, for example, due to interruption of business relationships with our travel business partners or more attractive travel plans provided by competitors, our existing subscribers may terminate the subscriptions and we may not be able to attract new subscribers. As a result, our Travel Business revenue will decrease, which could materially and adversely affect our business, financial condition, results of operations, and the trading price of our Ordinary Shares after the Offering.

***We rely greatly on FourM for showing advertisements to our customers through our PLAIO application and collecting advertising revenue under contractual terms. Unexpected termination of our contractual relationship with FourM would materially and adversely affect our business, financial condition, and results of operations.***

We collect a significant amount of advertising revenue from the advertisers through FourM, who attracts and negotiates with the advertisers and manages the advertisements of those paying the highest advertising fees being displayed in our PLAIO application. During the fiscal years ended May 31, 2024 and 2023, advertising revenue collected from FourM was JPY73,132 thousand ($486 thousand) and JPY44,986 thousand ($299 thousand), respectively, which accounted for 92.3% and 53.8% of our total advertising revenue, respectively. Although our outsourcing agreement with FourM has an automatic renewal term, allowing us to continue the contractual relationship under the same terms, unless either party notifies the other of its intention to the contrary in writing no later than one month before the expiration of then current term, the term of our outsourcing agreement lasts only three months and could only be renewed for successive three-month terms. If FourM terminates our application license agreement, we may not be able to replace FourM with a third party in a timely manner or manage the advertisements on our own as effectively as FourM does, resulting in a significant decrease in our advertising revenue and inability to offer our customers with lower fees under our innovative business model, which could materially and adversely impact our business, financial condition, and results of operations.

***We have a limited operating history and face significant challenges and will incur substantial expenses as we build our capabilities and it may be difficult for potential investors to evaluate our business.***

We have only been in existence since 2020 and have a limited operating history. We are subject to the risks inherent in a growing company, including, among other things, risks that we may not be able to hire sufficient qualified personnel and establish operating controls and procedures. We rely on a limited number of trained internal personnel, as the Company has only 69 full-time employees. As we build our own capabilities, we expect to encounter risks and uncertainties frequently experienced by growing companies in new and rapidly evolving fields, including the risks and uncertainties described herein. If we are unable to build our own capabilities, our operating and financial results could differ materially from our expectations, and our business could suffer. Our limited operating history makes it difficult for potential investors to evaluate our business or prospective operations. Investors should evaluate an investment in us in light of the uncertainties encountered by such companies in a competitive environment. Our business is dependent upon the implementation of our business plan, as well as the ability and operation of our retail channels, such as OEM Partners and franchise stores. There can be no assurance that our efforts will be successful or that we will be able to continuously attain profitability.

***We operate in highly competitive industries across our SIM Card Business, Internet Business, and Outsourcing Business and Travel Business, and we may not be able to compete effectively, especially against competitors with greater financial, technical, personnel, marketing, and other resources.***

We operate in highly competitive industries across our SIM Card Business, Internet Business, and Outsourcing Business and Travel Business, including significant competition in the MVNO industry in Japan. The major competitors of our SIM Card Business are major MVNOs, some of which are highly integrated service providers that are directly operated by MNOs or MVNEs. These major competitors may have greater brand recognition, larger customer bases, and a larger pool of technology human resources, including application development engineers, than we do. They may also have better financial resources to fund advertising, purchase wholesale more bandwidth of the mobile connectivity and wireless communications services to improve network speed, invest more heavily in research and development, and reduce prices to retain existing customers and attract new customers. We will compete with these competitors on brand name, quality of services, level of expertise, advertising, product and service innovation, and differentiation of product and services. Moreover, new entrants from other industries into the MVNO industry with new and enhanced technologies may increase the competition and weaken our competitive position and profitability. There can be no assurance that we will be able to compete successfully against current or future competitors, and such competitive pressures could have a material adverse effect on our business, financial condition, and results of operations.

***Our business depends on a strong brand recognition, and if we fail to respond to customer requirements or are not able to maintain and enhance our brand, our business and results of operations may be harmed.***

We believe that the recognition of our brand contributes significantly to the success of our business. We also believe that maintaining and enhancing our brand is critical to expanding our customer's base. As our market becomes increasingly competitive, maintaining and enhancing our brand will depend largely on our ability to fund the advertising and promote our services and brand through social media platforms, which may be increasingly difficult and expensive. We also intend to engage with our existing and potential customers to receive real time feedback on our services. However, we cannot guarantee that the expected results will be achieved. If we are unable to maintain and enhance a strong brand recognition, or fail to respond to customer requirements, we may lose our competitive edge and may not be able to increase our customer base. As a result, our brand, business, and results of operations and the trading price of our Ordinary Shares after the Offering may be materially and adversely affected.

***Our business is dependent on our ability to expand our services across our SIM Card Business, Internet Business, and Outsourcing Business and Travel Business, and we may not be able to compete effectively, especially against competitors with greater name recognition, greater operating revenues, larger customer bases, longer customer relationships and greater marketing resources than we have, while maintaining the quality of the services provided and keeping a positive customer experience.***

Our business as a mobile connectivity and wireless communications services provider depends on our ability to maintain and expand our telecommunications service network while maintaining the quality of the services provided and a positive customer experience. We believe that our growth will require, among other aspects, increasing marketing activities and network capacity, continuous attention to service quality, and a positive customer experience. These requirements will place significant demand on our managerial, operational, and financial resources. Failure to manage successfully and effectively our growth could reduce the quality of our services and result in an inadequate customer experience that may have adverse effects on our business, financial condition, and results of operations.

***If we are unable to keep our strengths, such as keeping SIM card service prices competitive and attractive, and providing high-quality internet services, our profitability will suffer.***

We believe our success depends in substantial part on our ability to:

● offer customers SIM card service at competitive prices;

● offer customers flexible monthly plans to meet various customer needs;

● enable customers to gain points and offset their monthly payments under our innovative business model

● keep high quality and stability of our mobile connectivity and wireless communications services;

● attract, train, and retain qualified management, technical staff, and sales personnel;

● establish nationwide retail channels and provide retailers flexibility to join as franchisees, distributors, or OEM Partners; and

● effectively fund advertising.

If we are unable to maintain any of the above strengths, we may not be able to keep existing customers and attract new customers or maintain our brand recognition and competitive edge. As a result, our profitability will suffer and our business, financial condition, and results of operations and the trading price of our Ordinary Shares after the Offering could be materially and adversely affected.

***The loss of key personnel could have a material adverse effect on our business, as our success is substantially dependent on the continued service of our senior management and technical staff.***

Our success is substantially dependent on the continued service of our senior management, technical staffs, and other key personnel, who have extensive market knowledge and long-standing industry relationship in the MVNO industry, substantial technical skills in mobile phone customer management system, and significant experience in expanding new business and marketing, including Mr. Tatsuya Nakagoshi, our founder and director, Mr. Yu Asano, our Chief Executive Officer and representative director, Mr. Yusuke Kanazawa and Mr. Shintaro Yamaguchi, our directors, Mr. Kazuo Iseji, our Chief Financial Officer and director, Mr. Yuuki Hayakawa, our director who is in charge of new business, and Mr. Yoshiaki Izutsu, our director and chief technology officer who is also our engineer and designer since our inception. If one or more of our key personnel are unable to continue in their present positions, we may not be able to replace them easily, or at all. The loss of such key personnel could make it more difficult to successfully operate our business and achieve our business goals, and result in loss of key information, expertise, or know-how. As a result, our business may be disrupted, and our financial condition, results of operations and the trading price of our Ordinary Shares after the Offering may be materially and adversely affected.

***If we fail to maintain and increase our retail channels, our business, financial condition, and results of operations could be materially and adversely affected.***

Our retail channels are critical to our business as we acquire significant numbers of customers and enhance brand recognition through these retail channels. As of the date of this prospectus, we had two directly-operated stores, which were all located in Osaka, Japan, 15 distributors, 36 franchise stores (operated by 35 owners) throughout Japan, and five OEM Partners. If any of these sales channels ceases operations or suffers business interruptions, we may lose customers and our corporate image and credibility may suffer, which could have a material and adverse effect on our business and results of operations.

Moreover, we intend to expand our retail channels by increasing the number of franchise stores and OEM Partners. The number and timing of new franchise stores and OEM Partners may be impacted by a number of factors, including:

● our ability to increase brand awareness;

● locations and the size of new stores;

● competition in local areas where franchise stores or OEM Partners operate;

● the negotiation of acceptable contractual terms, such as incentives and fees; and

● the hiring, training, and retention of store management and other qualified personnel.

In addition, we have been operating an online store on our website since June 2021, where customers can choose the monthly plans and order SIM cards to be shipped to their addresses within Japan. Unavailability or delays in engaging in new franchise stores or OEM Partners, failure to effectively operate our online store, or delays or costs resulting from a decrease in commercial development due to capital constraints, difficulties in staffing, or a lack of customer acceptance may negatively impact our new retail channels growth, which could have a material and adverse effect on our business and results of operations.

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***Our earnings depend substantially on the success of our franchise stores and OEM Partners, and we may be harmed by actions taken by our franchise stores or OEM Partners, or employees of our franchise stores and OEM Partners, which are outside of our control.***

A significant portion of our SIM Card Business and Internet Business revenue is generated by monthly usage payments paid by our customers obtained through our franchise stores and OEM Partners. During the fiscal years ended May 31, 2024 and 2023, revenue from customers acquired through our franchise stores accounted for 1.8% and 1% of our total revenue, respectively, and revenue from our OEM Partners accounted for 69.6% and 56.5% of our total revenue, respectively. Any business interruptions or reduction of revenue of our franchisees or OEM Partners could have an adverse effect on our business. Our franchise stores and OEM service agreements generally have a term of one year and automatically renew for successive one-year terms, unless either party notifies the other of its intention to the contrary in writing no later than three months before the expiration of the current term. If our franchise stores or OEM Partners terminate their agreements with us or request more favorable terms than the ones we currently have to renew such agreement, our retail channels will decrease and our ability to acquire customers will suffer. As a result, our business and results of operations will be materially and adversely affected.

In addition, although we license certain trademarks and trade names, such as センターモバイル (which translates to "center mobile"), and grant permission to use our store management know-how and provide management guidance to franchise stores, franchise stores are independent operators, and their employees are not our employees. Franchise stores may not operate their stores in a manner consistent with our standards and requirements or they or their employees may take actions that adversely affect the value of our brand. While we try to ensure that franchise stores maintain the quality of our brand and comply with their franchise agreements, franchise stores may take actions that adversely affect the value of our intellectual property or reputation or that are inconsistent with their contractual obligations. Although our franchise agreements permit us to terminate the agreement under certain circumstances, including violation of the agreement by a franchise store or deterioration of financial conditions of a franchise store, there can be no assurance that such remedy will be available or sufficient to prevent or undo harm to our brand.

***Our directly-operated stores, franchise stores, distributors, and OEM Partners are all located in Japan; therefore our current business and future growth could be materially and adversely affected if we experience a decline in customers in Japan.***

Our directly-operated stores, franchise stores, distributors, and OEM Partners are all located in Japan. We expect to continue to derive a substantial portion of our revenue from Japan in the foreseeable future. Our current business and future growth could be materially and adversely affected if we experience a decline in consumer sales or customer engagement in Japan.

Due to the importance of the Japanese market to our business, we are also subject to macroeconomic risks specific to Japan. See "—*General economic, political, and market conditions may have an adverse impact on our operating performance, results of operations, and cash flow*" below.

***Privacy concerns and privacy laws and regulations may reduce the effectiveness of our products and services and could adversely affect our business.***

To provide SIM Card Business services, we are currently acquiring personal data from SIM Card Business users, such as users' names, addresses, birth dates, email addresses, selected SIM card plan and amount of data, and, in case of corporate customers, the corporations to which the users belong. Additionally, to develop our big data technologies, which will enhance the quality of targeted advertising for our SIM Card Business, we plan to collect and use certain personal data obtained from SIM Card Business, water dispenser business, and original device business. See "*Business—Growth Strategies—Continue to grow our SIM Card Business*" and "*Business—Intellectual Property—Our Big Data Technologies.*" We have not collected any personal data through the water dispenser business and original device business yet. See "*Business—Personal Data.*"

Japanese government bodies and agencies have adopted laws and regulations regarding the collection, use, storage and transfer of personal information obtained from consumers and individuals. Specifically, Personal Information Protection Act of Japan imposes various requirements on businesses, including us, that use databases containing personal information. See "*Regulations*." The costs of compliance with, and other burdens imposed by, such laws and regulations may limit the utilization of personal data collected from our users and customers or lead to significant fines, penalties or liabilities for any noncompliance with such privacy laws. Furthermore, privacy concerns may cause our users to resist providing personal data necessary for targeted advertising as well as the further development of our big data technologies. Even the perception of privacy concerns, whether or not valid, may inhibit market adoption of our products and services in certain industries.

All of our legislative and regulatory initiatives may, directly or indirectly, adversely affect our ability to process, handle, store, use, and transmit demographic and personal data obtained from our users and customers, which could affect effective targeted advertising, inhibit the development of our big data technologies, or reduce demand for our products and services. In addition to government activity, privacy advocacy groups and the technology and other industries are considering various new, additional or different self-regulatory standards that may place additional burdens on us. If the processing of personal data were to be curtailed in this manner, our products and services would be less effective, which may reduce demand for our products and services and adversely affect our business, results of operations, and the trading price of our Ordinary Shares.

***If we fail to keep, manage, or properly use customers' personal data, we could be subject to lawsuits, incur expenses associated with our server management system, or suffer damage to our reputation.***

We receive, collect, and manage sensitive data obtained from our customers, including personal data, such as name, date of birth, and residential address, and internet access login information. To protect the confidentiality of such obtained information, we exercise much care through our server management system and take steps to ensure the security of our network, in accordance with the Personal Information Protection Act. However, our network may suffer internet interruption caused by human error, problems with facilities or systems, cyber-attacks, hacking, or other unauthorized access by third parties. There can be no assurance that we will effectively prevent such threats or successfully mitigate the negative effects.

Moreover, despite internal controls, misconduct by our employees could result in the improper use or disclosure of sensitive data and personal information. If any person, including any of our employees, gains unauthorized access or penetrates our network security or otherwise mismanages sensitive data, we could be subject to significant liability or lawsuits for damages, incur expenses associated with repairing or upgrading our server management system, and suffer damage to our reputation that could result in severe decline in the number of new customers as well as increase service cancellations. Although we require our franchise stores and OEM Partners to protect customers' personal information, our corporate image or credibility could be negatively impacted if they fail to properly protect such information or fail to comply with related laws or regulations.

***If we or any franchise stores fails to attract, train, or retain qualified management and sales personnel in physical stores, our business and future growth may be materially and adversely affected.***

Our physical stores' reputation and successful operation are dependent on the quality of service performed by the management and sales personnel. To provide a positive customer experience and keep the physical stores' performance consistent with our culture and standards, we offer direct training to sales personnel for our directly-operated stores and provide sales guidance and manuals to franchise stores. We also intend to expand our Outsourcing Business by recruiting and dispatching them to sales companies to develop sales skills, which could be used for our SIM Cards Business and our future water dispenser business and the original smartphones business. If we fail to attract, train, or retain qualified management and sales personnel, our physical stores' performance will be negatively impacted, resulting in loss of customers and decline in revenue, which could have a material and adverse effect on our business, financial condition, results of operations and the trading price of our Ordinary Shares after the Offering.

***Our investment in the water dispenser business and the original smartphones business may not produce the returns we expect and may adversely affect our results of operations.***

We have been significantly investing in the water dispenser business and the original smartphones business since January 2024 to diversify our revenue and collect data for future advertising business. For the fiscal year ended May 31, 2024, capital expenditures, including research and development, were JPY2,500 thousand ($16 thousand). We are expecting to increase our revenue by selling water dispensers and original smartphones. We also expect to use water dispensers and original smartphones to collect data regarding customers' personal interests and lifestyle habits by using our big data technologies that we, cooperating with an external team, are currently researching and developing, and use such data for future advertising distribution. See "*Business*—*Intellectual Property—Our Big Data Technologies."* Part of the proceeds in this Offering will be used to expand both the water dispenser business and development, manufacture, and sales of our original smartphones. However, there is no assurance that our original smartphones or water dispensers will generate sufficient or any customer interest. Customers may not find our original smartphones attractive for reasons such as high cost compared to other devices in the market, low brand recognition, and lack of design preference, and our water dispensers may not be able to function properly or effectively in collecting lifestyle data as we expect. If we fail in our business strategy or fail to collect useful data, we may not be able to achieve the return we expect and we may fail to cover our development, manufacturing, and marketing costs and expenses associated with these new businesses. As a result, our results of operations and the trading price of our Ordinary Shares after the Offering may be materially and adversely affected.

***We may not be able to successfully implement our business and operating strategies.***

Our long-term success is greatly dependent on our ability to build and maintain a large customer base, attract new advertising sponsors, diversify revenue sources, and enhance brand recognition. To achieve these goals, our business and operating strategies include:

● continue to grow our SIM Card Business;

● expand customer base to be able to become an MVNE;

● increase our visibility and brand awareness by advertising;

● continue to expand into the fields of water dispenser business and develop our original smartphones;

● develop and maintain good supplier relationships that provide us high-quality internet services and sufficient numbers of SIM cards and mobile and home routers;

● expand retail channels, such as franchise stores and OEM Partners;

● maximize customer satisfaction; and

● train and retain skilled sales personnels through our Outsourcing Business.

The rapidly changing technology, Internet, travel and staffing industries means we will be required to innovate to remain competitive. However, we may not be able to implement these strategies successfully or realize the anticipated results fully or at all, and the implementation may be costlier or more challenging than we initially expected. In addition, our ability to successfully implement these strategies could be adversely affected by a number of factors beyond our control, including operating difficulties, increased ongoing operating costs, general economic conditions, increased competition, technological changes, and increased dependence on third-party suppliers and service providers. Presently, we intend to expand into the fields of a water dispenser business and to develop our original smartphones. Further, because there is no certainty that our growth strategy for the water dispenser business and the original smartphones business will be as successful as we anticipate, we may incur expenses or suffer losses of revenue for a significant period of time, which could have a material adverse effect on our business, financial condition, results of operations, and the trading price of our Ordinary Shares after the Offering.

***If we fail to keep up with the rapid development changes in our industry, our services may become obsolete, and we may lose customers.***

Our markets are characterized by rapid development changes, including frequent new product and service introductions, continually changing customer requirements, and evolving industry standards. If we fail to obtain access to new or important technologies or fail to develop and introduce new services that are compatible with changing industry technologies and customer requirements, our services may become obsolete, and we may lose customers, which could have a material and adverse effect on our business, results of operations and the trading price of our Ordinary Shares after the Offering.

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***We require a significant amount of cash to fund our business expansion; if we cannot obtain additional capital on terms satisfactory to us when we need it, our growth prospects and future profitability may be materially and adversely affected.***

We need to raise funds for our water dispenser business and original smartphones business so as to remain competitive.

Our ability to obtain external financing is subject to a number of uncertainties, including:

● our future financial condition, results of operations, and cash flows;

● general market conditions for financing activities by companies in our industry; and

● economic, political, and other conditions in Japan and elsewhere.

If we are unable to obtain necessary funding in a timely manner or on commercially acceptable terms, or at all, our growth prospects and future profitability would likely be materially and adversely affected.

***Regulatory matters and new legislation could negatively impact our ability to conduct our business.***

As an MVNO in Japan, we are subject to a wide range of telecommunications, internet, and data protection laws and regulations as well as supervision by the Minister of Internal Affairs and Communication ("MIC"). Violation of such laws and regulations may result in investigations, business improvement orders, and corrective orders by the MIC, as well as criminal penalties such as fines and imprisonment. In addition, as we provide our services to consumers, we are also subject to consumer protection laws and regulations, including the Act against Unjustifiable Premiums and Misleading Representations, and supervision by the Japan Consumer Affairs Agency. In the event of a violation, the Japan Consumer Affairs Agency may issue an order to take measures and impose an administrative fine. These violations and consequences could harm our reputation and adversely affect our business, financial condition, and results of operations. We also hold a secondhand goods dealer license for resale of used smartphones, and a worker dispatching business license and a paid employment placement business license for our Outsourcing Business. Although we strive to ensure that our operations comply with applicable laws and regulations, there is no assurance that we will not violate any laws or regulations in the foreseeable future. Violations of relevant laws and regulations could result in the revocation of our licenses or suspension of our business, which could harm our reputation and adversely affect our business, financial condition, and results of operations. Enforcement of, or changes in, other laws and regulations of general applicability to Japanese companies could also have an adverse impact on our financial condition, results of operations and the trading price of our Ordinary Shares after the Offering.

Existing and future governmental regulations may substantially affect the way in which we conduct our business. These regulations may increase the cost of doing business or may restrict the way in which we offer products and services. We cannot predict how future regulatory changes may affect our business. Any changes in laws or regulations, such as those described above, or in the policies of regulatory authorities affecting our business activities could adversely affect our financial condition or results of operations. For more information, see "*Regulations.*"

***We face various cyber-security risks which, if not adequately addressed, could have an adverse effect on our business.***

We face various cyber-security risks that could result in business losses, including contamination (whether intentional or accidental) of our networks and systems by third parties with whom we exchange data, equipment failures, unauthorized access to and loss of confidential customer, employee, and/or proprietary data by persons inside or outside our Company. We are also exposed to cyber-attacks causing systems degradation or service unavailability by malicious third parties, and infiltration of malware (such as computer viruses) into our systems.

The inability to operate our networks and systems as a result of cyber-attacks, even for a limited period of time, may result in significant expenses to us and/or a loss of market share to other MVNOs. The costs associated with a major cyber-attack could include expensive incentives offered to existing customers and business partners to retain their business, increased expenditures on cyber-security measures and the use of alternate resources, lost revenue from business interruption, and litigation. If we are unable to adequately address these cyber-security risks, our operating network and information systems could be compromised, which would have an adverse effect on our business, financial condition, reputation, and results of operations.

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***We rely on our relationships with certain business partners to develop and manufacture water dispensers and original smartphones. If these relationships were to be impaired, or if one of our business partners were unable to supply sufficient products to keep pace with our growth plans, we may not be able to continue to meet our current requirements and new business expansion in a timely manner, which could have a material adverse effect on business.***

To develop the water dispenser business and the original smartphones business, we have engaged certain business partners to develop and manufacture water dispensers and our own original smartphones. If we fail to maintain a strong relationship with our existing business partners or fail to continue acquiring and strengthening relationships with new business partners, or any of them decide to end its relationship with us, we may not be able to replace them in a timely manner or at all. As a result, our ability to develop the water dispenser business and the original smartphones business may be limited and negatively impacted, which could have a material and adverse effect on our competitive position and business expansion.

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***Our businesses depend on using and protecting our intellectual property rights and on not infringing the intellectual property rights of others.***

We rely on our intellectual property, such as our PLAIO applications, copyrights, trademarks, trade secrets, and management know-how to conduct our business, and authorize third parties to use such intellectual property through application license agreements, OEM service agreements, and franchise agreements.

Legal challenges to our intellectual property rights and claims of intellectual property infringement by third parties could require us to enters into royalty or licensing agreements on unfavorable terms, incur substantial monetary liability, or be enjoined preliminarily or permanently from further use of the intellectual property in question. If any of these events occur, we may need to change our business practices, which may limit our ability to compete effectively and could have an adverse effect on its results of operations. In the event that we believe any such challenges or claims are without merit, they can nonetheless be time-consuming and costly to defend and divert management's attention and resources away from our businesses.

***The success of our SIM Card Business expansion and our innovative business model development relies on our ongoing and future patent applications of big data technologies, which, if unsuccessful or delayed, could materially and adversely affect our business, financial condition, and results of operations.***

We intend to continue to grow our SIM Card Business and further develop our innovative business model by using our ongoing patent applications related to big data technologies. See "*Business—Growth Strategies*." We may also need to apply for new patents in the foreseeable future to meet our business expansion and development requirements. However, we cannot predict whether such pending patents will be granted by the Japan Patent Office and when we will apply for new patents. If we fail to obtain any of these patents or are unable to apply for new patents, we may need to change our business strategy, invest in new technologies, or secure a license from a third party for similar technologies, which may incur expenses and could have an adverse effect on our business, financial condition, results of operations and the trading price of our Ordinary Shares after the Offering.

***We are subject to credit risk with respect to our customers.***

Our operations depend to a significant extent on the ability of our customers to pay for our services. Customers shall pay communication service usage fees for a certain month in the next month, i.e., pay the fee for May in June. If we are unable to undertake measures to limit payment defaults by our customers, we will remain subject to outstanding uncollectible amounts, which could have an adverse effect on our results of operations and the trading price of our Ordinary Shares after the Offering.

***If we are unable to conduct our marketing activities cost-effectively, our results of operations and financial condition could be materially and adversely affected.***

We have incurred expenses on a variety of marketing and brand promotion efforts designed to enhance our brand recognition and increase sales of our products. Our marketing and promotional activities may not be well received by customers and may not result in the increased levels of product sales that we anticipate. We incurred JPY47,696 thousand ($317 thousand) and JPY8,205 thousand ($55 thousand) in promotion and advertising expenses during the fiscal years ended May 31, 2024 and 2023, respectively.

Marketing approaches and tools in the telecommunication markets in Japan are evolving. This further requires us to enhance our marketing approaches and experiment with new marketing methods to keep pace with industry developments and customer preferences, which may not be as cost-effective as our marketing activities in the past and may lead to significantly higher marketing expenses in the future. We cannot assure you that we can produce, or benefit from, unique and effective marketing campaigns in the future. Failure to refine our existing marketing approaches or to introduce new effective marketing approaches in a cost-effective manner could reduce our market share, cause our net revenue to decline, and negatively impact our profitability.

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***If we fail to effectively implement our hiring policies in our Outsourcing Business, we may not be able to attract more job seekers and keep a stable pool of competent and well-trained workers, which could materially and adversely affect our business, financial condition, and results of operations.***

We believe that our policy of providing a more stable working environment and conditions for job seekers is curial to the success of our Outsourcing Business. Under this policy, we provide job seekers with adequate training and dispatch them to workplaces that we consider the best match based on both their willingness and our corporate clients' needs. See "*Business—Outsourcing Business*." Moreover, as we hire job seekers as our full-time employees, we continue to provide stable income and benefits to job seekers during the gap of dispatches, offer a basic training and comprehensive career path to our job seekers, and arrange regular counseling with respect to different types of positions or jobs. If we fail to effectively implement our hiring policies, for example, if our training does not help job seekers fit into the workplaces, we may not able to meet our corporate clients' needs, or if our client terminates the worker dispatch agreement with respect to a specific job seeker and we are unable to dispatch such job seeker to a new position for a long period of time from previous dispatch, we will continue to incur labor costs by paying such job seekers the income and benefits without receiving any dispatch fees. Moreover, if our job seekers are unsatisfied with our training or counseling services and choose to resign from us, we may not be able to keep a stable pool of competent and well-trained workers and attract more job seekers. As a result, our business, financial condition, results of operations and the trading price of our Ordinary Shares after the Offering may be materially and adversely affected.

***The success of our Outsourcing Business depends on our ability to maintain our professional reputation.***

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We depend on our overall professional reputation to maintain existing clients and secure new engagements. Our Outsourcing Business also depends on the individual reputations of our employees. We obtain many of our new engagements from referrals by existing clients. If our existing clients are dissatisfied with our employees' performance, we may not be able to secure new engagement from these existing clients or receive any referrals from them. Moreover, if any factor, including a poor work ethic of our dispatched employees, hurts our reputation, we may experience difficulties in competing successfully for new engagements. Failure to maintain our professional reputation could adversely affect our overall business and results of operations.

 **

***A significant portion of our Outsourcing Business revenue is generated by dispatch fees paid by PayPay Corporation a Japanese mobile payment app operating company. If our relationship with it is impaired and we are unable to engage new corporate customers to replace it, our business, financial condition, and results of operations would be materially and adversely affected.***

 **

Our Outsourcing Business revenue depends substantially on dispatch fees paid by PayPay Corporation ("PayPay"), a Japanese mobile payment app operating company. While we did not generate revenue from PayPay during the fiscal year ended May 31, 2023, during the fiscal year ended May 31, 2024, we received aggregated dispatch fees of JPY66,546 thousand ($442 thousand) from PayPay, which accounted for 25.1% of our total Outsourcing Business revenue, respectively. We entered into a basic worker dispatch agreement with PayPay on June 6, 2023, which has a term of one year and automatically renews for successive one-year terms, unless either party notifies the other of its intention to the contrary in writing no later than one month before the expiration of the current term. See "*Business—Our Business—Outsourcing Business—Corporate Clients.*" However, if PayPay terminates its agreement with us or replace existing terms with unfavorable ones, we may have no means of replacing it with other corporate customers on a timely basis or at all, which may adversely affect our business, financial condition, results of operations and the trading price of our Ordinary Shares after the Offering.

***We have no commercial insurance coverage.***

Other than the government-mandated social and health insurance, worker's accident compensation insurance, and comprehensive tenant insurance, we do not maintain any other insurance covering our directors' and officers' liability, property, equipment, or employees. Any business disruption or litigation against us or our executive directors may result in increased costs and the diversion of our resources, which may adversely affect our business, financial condition, and results of operations.

***Public health epidemics or outbreaks, such as the COVID-19 pandemic, and natural disasters, such as a tsunami, could adversely impact our business.***

An epidemic, pandemic, or similar serious public health issue, and the measures undertaken by governmental authorities to address it, could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period, and thereby, along with any associated economic and social instability or distress, have a material adverse impact on our business, prospects, liquidity, financial condition, and results of operations.

During the fiscal years ended May 31, 2024 and 2023 and since May 31, 2024, the COVID-19 pandemic has not had a material adverse effect on our business, financial condition and results of operations. However, if an epidemic or other outbreak of disease occurs, we may need to shut down our directly-operated stores, franchisee stores, or OEM Partners, limit the number of customers entering these stores, and take certain precautionary measures for employees or customers. A future epidemic or other outbreak may also disrupt recruitment for employees and professionals, decrease the demand for our outsourcing service, and the usage of our travel service due to travel restrictions.

Moreover, Japan, where we operate, is a country prone to natural disasters, such as volcanic eruptions and tsunamis. As a mobile network service provider, our operations are susceptible to natural disasters and adverse weather conditions. We may experience earthquakes, floods, typhoons, power outages, or similar events beyond our control that could materially and adversely affect our operations, such as temporary suspension of business of our directly-operated stores, franchisee stores or OEM Partners.

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***Our compliance and risk management programs might not be effective and may result in outcomes that could adversely affect our reputation, financial condition, and results of operations.***

Our ability to comply with applicable laws and rules is largely dependent on our establishment and maintenance of compliance, review, and reporting systems, as well as our ability to attract and retain qualified compliance and other risk management personnel. There is no assurance that our compliance policies and procedures will always be effective or that we will always be successful in monitoring or evaluating our risks. In the case of alleged non-compliance with applicable laws or regulations, we could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits, including by customers, for damages, which could be significant. Any of these outcomes may adversely affect our reputation, financial condition, and results of operations.

***General economic, political, and market conditions may have an adverse impact on our operating performance, results of operations and cash flow.***

Our business is influenced by a range of factors that are beyond our control, including general economic and business conditions and legal, regulatory, and political developments. Challenging economic conditions worldwide have contributed, from time-to-time, and may continue to contribute, to slowdowns in the information technology industry at large. Weaknesses in the economy could have a negative effect on our business, operations, and financial condition, including decreases in revenue and operating cash flow, and inability to attract future equity and debt financing on commercially reasonable terms.

In addition, we are currently operating in a period of economic uncertainty and capital markets disruption, significantly impacted by geopolitical instability due to the ongoing military conflict between Russia and Ukraine and the tension between Israel and its neighbors. The military conflicts in Ukraine and the Middle East have led to sanctions and other penalties being levied by the United States, the European Union, and other countries, including Japan, against various entities and countries. There is also the potential for additional sanctions and penalties. If there are any counter-sanctions against Japan that significantly impacts Japan's economy, our business, financial condition, and results of operations may be materially and adversely impacted. While our business has not been materially impacted by these geopolitical tensions as of the date of this prospectus, the extent to which our operations or those of our business partners will be affected in the future, or the ways in which the conflicts may impact our business, including sanctions and penalties, is unpredictable. The extent and duration of the military actions, sanctions, and resulting market disruptions could be substantial. Any such disruptions may also amplify the impact of other risks described in this prospectus.

***We are subject to litigation or administrative proceedings, which, if adversely determined, could cause us to incur substantial losses.***

From time to time during the normal course of our business, we are subject to various litigation claims and legal disputes. We do not have any insurance for legal action against us. As a result, we might be required to incur significant legal fees, which may have a material adverse effect on our financial position. In addition, because we cannot accurately predict the outcome of any action, it is possible that, as a result of current and/or future litigation, we will be subject to adverse judgments or settlements that could significantly reduce our earnings or result in losses.

Moreover, we may also be subject to administrative proceedings. On March 29, 2023, we received administrative sanctions from the Japan Consumer Affairs Agency for violating regulations on multilevel marketing transactions under the Specified Commercial Transactions Act, as we had provided services to certain business partners who improperly engaged in multilevel marketing transactions. Mr. Tatsuya Nakagoshi, our founder and former representative director and former Chief Executive Officer, and Mr. Kazuo Iseji, our director and Chief Financial Officer, have also received administrative sanctions from the Japan Consumer Affair Agency for cooperating with these business partners. The administrative sanctions prohibited us, Mr. Tatsuya Nakagoshi, and Mr. Kazuo Iseji from being involved in any solicitation, acceptance of an offer to contract, or entering into any contract in connection with multilevel marketing transactions from March 30, 2023 to December 29, 2023. Although marketing activities were not impacted by the administrative sanctions as we ceased such involvement before receiving the sanctions, such administrative proceedings have had a negative impact on our reputation. To prevent the recurrence of similar incidents, we have adopted policies on not conducting multilevel marketing transactions and not providing services to our business partners engaging in multilevel marketing transactions and taking thorough measures to prevent a recurrence. However, there is no guarantee that our policies or measures will be adequate and if we receive similar or other administrative sanctions in the future, our reputation and corporate image will be significantly damaged, which would result in loss of customers and a material adverse impact on our business, results of operations and the trading price of our Ordinary Shares after the Offering.

***We intend to explore acquisitions, other investments, and strategic alliances. We may not be successful in identifying opportunities or in integrating the acquired businesses. Any such transaction may not produce the results we anticipate, which could adversely affect our business.***

We intend to explore and pursue acquisitions, strategic partnerships, joint ventures, and other alliances to strengthen our business and grow our Company in the future. The market for acquisitions and strategic opportunities is highly competitive. In addition, these transactions entail numerous operational and financial risks, including but not limited to difficulties in valuing acquired businesses, combining personnel and firm cultures, integrating acquired products, services and operations, achieving anticipated synergies that were inherent in our valuation assumptions, exposure to unknown material liabilities, the potential loss of key vendors, clients, or employees of acquired companies, incurrence of substantial debt or dilutive issuance of equity securities to pay for acquisitions, higher-than expected acquisition or integration costs, write-downs of assets or impairment charges, increased amortization expenses, and decreased earnings, revenue, or cash flow from dispositions.

**Risks Relating to this Offering and the Trading Market**

***An active trading market for our Ordinary Shares may not develop.***

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We have applied to list our Ordinary Shares on Nasdaq. Prior to this Offering, there has not been a public market for our Ordinary Shares, and we cannot assure you that an active public market for our Ordinary Shares will develop or be sustained after this Offering. If an active public market for our Ordinary Shares does not develop following the completion of this Offering, the market price and liquidity of our Ordinary Shares may be materially and adversely affected. The initial public offering price of our Ordinary Shares will be determined through negotiation between us and the underwriters, and this price does not necessarily reflect the price at which investors in the market will be willing to buy and sell our Ordinary Shares following the completion of this Offering. Investors in this Offering may experience a significant decrease in the market value of their investments, regardless of our operating performance or prospects.

***You will experience immediate and substantial dilution in the net tangible book value of Ordinary Shares purchased.***

We expect the initial public offering price of our Ordinary Shares to be substantially higher than the pro forma as-adjusted net tangible book value per Ordinary Share. Consequently, when you purchase our Ordinary Shares in the Offering, upon completion of the Offering, you will incur an immediate dilution of $3.44 per Ordinary Share, based on the assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus, and assuming no exercise of the Representative's over-allotment option. See "*Dilution*" beginning on page 33 of this prospectus. In addition, you may experience further dilution to the extent that additional Ordinary Shares are issued upon the exercise of outstanding options we may grant from time to time.

***Future issuances of our Ordinary Shares or securities convertible into, or exercisable or exchangeable for, our Ordinary Shares could cause the market price of our Ordinary Shares to decline and would result in the dilution of your holdings.***

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Future issuances of our Ordinary Shares or securities convertible into, or exercisable or exchangeable for, our Ordinary Shares could cause the market price of our Ordinary Shares to decline. We cannot predict the effect, if any, of future issuances of our securities on the price of our Ordinary Shares. In all events, future issuances of our Ordinary Shares would result in the dilution of your holdings. In addition, the perception that new issuances of our securities could occur could adversely affect the market price of our Ordinary Shares.

***The sale or availability for sale of substantial amounts of our Ordinary Shares could adversely affect their market price.***

Sales of substantial amounts of our Ordinary Shares in the public market after the completion of this Offering, or the perception that these sales could occur, could adversely affect the market price of our Ordinary Shares and could materially impair our ability to raise capital through equity offerings in the future. Resales of our Ordinary Shares in the public market during this offering by the Selling Shareholders in this offering may cause the market price of our Ordinary Shares to decline. The Ordinary Shares sold in this Offering to "non-affiliates" will be freely tradable without restriction or further registration under the Securities Act, and Ordinary Shares held by our existing shareholders may also be sold in the public market in the future, subject to the restrictions in Rule 144 and Rule 701 under the Securities Act and the applicable lock-up agreements. As of the date of this prospectus, 24,720,473 of our Ordinary Shares are outstanding. Excluding the Selling Shareholder Shares, there will be 3,750,000 Ordinary Shares publicly trading immediately following the consummation of this Offering, assuming no exercise of the Representative's over-allotment option, or 4,312,500 Ordinary Shares, if the Representative exercises its over-allotment option in full, in each case, excluding shares issuable upon exercise of unexercised options, and based on the assumed initial public offering price of $4.00, representing the low end of the price range set forth on the cover page of this prospectus. In connection with this Offering, our officers, directors, and holder(s) of 5.0% of the outstanding shares of Ordinary Shares as of the effective date of the registration statement of which this prospectus forms a part have agreed not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any of our securities for a period of 180 days from the date of this prospectus. However, the Representative may release these securities from these restrictions at any time, subject to applicable regulations of the FINRA. We cannot predict what effect, if any, market sales of securities held by our significant shareholders or any other shareholder or the availability of these securities for future sale will have on the market price of our Ordinary Shares. See "*Underwriting*" and "*Ordinary Shares Eligible for Future Sale*" for a more detailed description of the restrictions on selling our securities after this Offering.

***If securities or industry analysts do not publish research or reports about our business, or if they publish a negative report regarding our Ordinary Shares, the price of our Ordinary Shares and trading volume could decline.***

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Any trading market for our Ordinary Shares may depend in part on the research and reports that industry or securities analysts publish about us or our business. We do not have any control over these analysts. If one or more of the analysts who cover us downgrade us, the price of our Ordinary Shares would likely decline. If one or more of these analysts cease coverage of our Company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause the price of our Ordinary Shares and the trading volume to decline.

***The market price of our Ordinary Shares may be volatile or may decline regardless of our operating performance, and you may not be able to resell your Ordinary Shares at or above the initial public offering price.***

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The initial public offering price for our Ordinary Shares will be determined through negotiations between the underwriters and us and may vary from the market price of our Ordinary Shares following this Offering. If you purchase our Ordinary Shares in this Offering, you may not be able to resell those Ordinary Shares at or above the initial public offering price. We cannot assure you that the initial public offering price of our Ordinary Shares, or the market price following this Offering, will equal or exceed prices in privately negotiated transactions of our Ordinary Shares that have occurred from time to time prior to this Offering. The market price of our Ordinary Shares may fluctuate significantly in response to numerous factors, many of which are beyond our control, including:

● actual or anticipated fluctuations in our revenue and other operating results;

● the financial projections we may provide to the public, any changes in these projections, or our failure to meet these projections;

● actions of securities analysts who initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our Company, or our failure to meet these estimates or the expectations of investors;

● announcements by us or our competitors of significant services or products, technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments;

● price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole;

● the trading volume of our Ordinary Shares on Nasdaq;

● sales of the Ordinary Shares by us, our executive officers and directors, or our shareholders or the anticipation that such sales may occur in the future;

● rumors and market speculation involving us or other companies in our industry;

● developments or disputes concerning our intellectual property or other proprietary rights;

● announced or completed acquisitions of businesses or technologies by us or our competitors;

● new laws or regulations or new interpretations of existing laws or regulations applicable to our business;

● changes in tax laws and regulations as well as accounting standards, policies, guidelines, interpretations, or principles;

● any significant change in our management;

● lawsuits threatened or filed against us; and

● other events or factors, including those resulting from war or incidents of terrorism, or responses to these events.

In addition, the stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. Stock prices of many companies have fluctuated in a manner unrelated or disproportionate to the operating performance of those companies. In the past, shareholders have filed securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business, and adversely affect our business.

***If we fail to implement and maintain an effective system of internal control, we may fail to meet our reporting obligations or be unable to accurately report our results of operations or prevent fraud, and investor confidence and the market price of our Ordinary Shares may be materially and adversely affected.***

Upon completion of this Offering, we will become a public company in the United States subject to the Sarbanes-Oxley Act of 2002. Section 404 of the Sarbanes-Oxley Act of 2002 ("Section 404") will require that we include a report of management on our internal control over financial reporting in our annual report on Form 20-F beginning with our second annual report following the completion of this Offering. In addition, once we cease to be an "emerging growth company," as such term is defined in the JOBS Act, our independent registered public accounting firm must attest to and report on the effectiveness of our internal control over financial reporting. Our management may conclude that our internal control over financial reporting is not effective. Moreover, even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm, after conducting its own independent testing, may issue a report that is qualified if it is not satisfied with our internal controls or the level at which our controls are documented, designed, operated, or reviewed, or if our independent registered public accounting firm interprets the relevant requirements differently from us. In addition, after we become a public company, our reporting obligations may place a significant strain on our management, operational, and financial resources and systems for the foreseeable future. We may be unable to complete our evaluation testing and any required remediation in a timely manner.

During the course of documenting and testing our internal control procedures, in order to satisfy the requirements of Section 404, we may identify weaknesses and deficiencies in our internal control over financial reporting. In addition, if we fail to maintain the adequacy of our internal control over financial reporting, as these standards are modified, supplemented, or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404. If we fail to achieve and maintain an effective internal control environment, we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our reported financial information. This could, in turn, limit our access to capital markets, harm our results of operations, and lead to a decline in the trading price of our Ordinary Shares. Additionally, ineffective internal control over financial reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock exchange on which we list, regulatory investigations, and civil or criminal sanctions. We may also be required to restate our financial statements for prior periods.

***We will incur substantially increased costs as a result of being a public company.***

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Upon consummation of this Offering, as a public company, we will incur significant legal, accounting, and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act of 2002, as well as rules subsequently implemented by the SEC and Nasdaq, impose various requirements on the corporate governance practices of public companies.

Compliance with these rules and regulations increases our legal and financial compliance costs and makes some corporate activities more time-consuming and costlier. In addition, we will incur additional costs associated with our public company reporting requirements. It may also be more difficult for us to find qualified persons to serve on our board of directors or as executive officers. As a result of becoming a public company, we will need to increase the number of independent directors and adopt policies regarding internal controls and disclosure controls and procedures. We also expect that operating as a public company will make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. In addition, we will incur additional costs associated with our public company reporting requirements.

We are an "emerging growth company," as defined in the JOBS Act and will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this Offering, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, which means our public float equals or exceeds $700 million as of the prior August 31, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 in the assessment of the emerging growth company's internal control over financial reporting and permission to delay adopting new or revised accounting standards until such time as those standards apply to private companies.

After we are no longer an "emerging growth company," or until five years following the completion of this Offering, whichever is earlier, we expect to incur significant additional expenses and devote substantial management effort toward ensuring compliance with the requirements of Section 404 and the other rules and regulations of the SEC. For example, as a public company, we will be required to increase the number of independent directors and adopt policies regarding internal controls and disclosure controls and procedures. In addition, investors may find our Ordinary Shares less attractive if we rely on the exemptions and relief granted by the JOBS Act. If some investors find our Ordinary Shares less attractive as a result, there may be a less active trading market for our Ordinary Shares and our stock price may decline and/or become more volatile.

In the past, shareholders of a public company often brought securities class action suits against the company following periods of instability in the market price of that company's securities. If we were involved in a class action suit, it could divert a significant amount of our management's attention and other resources from our business and operations, which could harm our results of operations and require us to incur significant expenses to defend the suit. Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could have a material adverse effect on our financial condition and results of operations.

We are currently evaluating and monitoring developments with respect to these rules and regulations, and we cannot predict or estimate with any degree of certainty the amount of additional costs we may incur or the timing of such costs.

***We have limited experience operating as a public company.***

We have limited experience conducting our operations as a public company. We may encounter operational, administrative, and strategic difficulties as we adjust to operating as a public company. This may cause us to react more slowly than our competitors to industry changes and may divert our management's attention from running our business or otherwise harm our operations. In addition, since we are becoming a public company, our management team will need to develop the expertise necessary to comply with the numerous regulatory and other requirements applicable to public companies, including requirements relating to corporate governance, listing standards and securities and investor relationships issues. As a public company, our management will have to evaluate our internal controls system with new thresholds of materiality, and to implement necessary changes to our internal controls system. We cannot guarantee that we will be able to do so in a timely and effective manner.

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***As a foreign private issuer, we intend to follow home country practice even though we will be considered a "controlled company" under Nasdaq corporate governance rules, which could adversely affect our public shareholders.***

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Following this Offering, Mr. Tatsuya Nakagoshi, our founder and director, will continue to hold more than a majority of the voting power of our outstanding Ordinary Shares. Under the Nasdaq corporate governance rules, a company of which more than 50% of the voting power is held by an individual, group, or another company is a "controlled company" and may elect not to comply with certain Nasdaq corporate governance standards, including the requirements that:

● a majority of its board of directors consist of independent directors;

● its director nominations be made, or recommended to the full board of directors, by its independent directors or by a nominations committee that is comprised entirely of independent directors and that it adopt a written charter or board resolution addressing the nominations process; and

● it has a compensation committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities.

As a foreign private issuer, however, Nasdaq corporate governance rules allow us to follow corporate governance practice in our home country, Cayman Islands, with respect to appointments to our board of directors and committees. We intend to follow home country practice, as permitted by Nasdaq rather than rely on the "controlled company" exception to the corporate governance rules. See also "—*Because we are a foreign private issuer and intend to take advantage of exemptions from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer*," below. Further, for as long as Mr. Nakagoshi beneficially owns a majority of the voting power of our outstanding Ordinary Shares, he will generally be able to control the outcome of matters submitted to our shareholders for approval, including the election of directors, without the approval of our other shareholders. Accordingly, you would not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.

***We may experience extreme stock price volatility unrelated to our actual or expected operating performance, financial condition, or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Ordinary Shares.***

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Recently, there have been instances of extreme stock price run-ups followed by rapid price declines and high stock price volatility with a number of recent initial public offerings, especially among companies with relatively smaller public floats. As a relatively small-capitalization company with relatively small public float, we may experience greater stock price volatility, extreme price run-ups, lower trading volume, and less liquidity than large-capitalization companies. In particular, our Ordinary Shares may be subject to immediate and substantial price volatility, low volumes of trading, and large spreads in bid and ask prices. Such volatility, including any stock-run up, may be unrelated to our actual or expected operating performance, financial condition, or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Ordinary Shares.

In addition, if the trading volumes of our Ordinary Shares are low, persons buying or selling in relatively small quantities may easily influence the price of our Ordinary Shares. This low volume of trading could also cause the price of our Ordinary Shares to fluctuate greatly, with large percentage changes in price occurring in any trading day session. Holders of our Ordinary Shares may also not be able to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading. Broad market fluctuations and general economic and political conditions may also adversely affect the market price of our Ordinary Shares. As a result of this volatility, investors may experience losses on their investment in our Ordinary Shares. A decline in the market price of our Ordinary Shares also could adversely affect our ability to issue additional Ordinary Shares or other securities and our ability to obtain additional financing in the future. No assurance can be given that an active market in our Ordinary Shares will develop or be sustained. If an active market does not develop, holders of our Ordinary Shares may be unable to readily sell the shares they hold or may not be able to sell their shares at all.

***Our management has broad discretion to determine how to use the net proceeds raised in this Offering and may use them in ways that may not enhance our results of operations or the price of our Ordinary Shares.***

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We anticipate using the net proceeds from this Offering for the development and expansion of the water dispenser business, development and expansion of the original smartphone business and expansion of our existing business, including products and services in our SIM Card Business. See "*Use of Proceeds*." Our management will have significant discretion as to the use of the net proceeds to us from this Offering and could spend the proceeds in ways that do not improve our results of operations or enhance the market price of our Ordinary Shares. The failure of our management to apply these funds effectively could harm our business and financial condition. We may invest the net proceeds from this Offering in a manner that does not produce income, or that loses value.

***You may have difficulty enforcing judgments against us.***

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We are incorporated under the laws of the Cayman Islands as an exempted company limited by shares. Currently, all of our operations are conducted in Japan, and all or a substantial portion of our assets are and will be located outside of the United States and located in Japan. In addition, all of our officers and directors are nationals and residents of a country other than the United States, and almost all of their assets are located outside the United States. As a result, it may be difficult or impossible for you to bring an action against us or against these individuals in the United States in the event that you believe we have violated your rights, either under United States federal or state securities laws or otherwise, or if you have a claim against us. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of Japan may not allow you to enforce a judgment against our assets or the assets of our directors and officers. See "Enforceability of Civil Liabilities."

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***The laws of the Cayman Islands may not provide our shareholders with benefits comparable to those provided to shareholders of corporations incorporated in the United States.***

Our corporate affairs are governed by our memorandum and articles of association, by the Cayman Companies Act and by the common law of the Cayman Islands. The rights of shareholders to take action against our directors, actions by minority shareholders, and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedents in the United States. In particular, the Cayman Islands has a less developed body of securities laws relative to the United States. Therefore, our public shareholders may have more difficulty protecting their interests in the face of actions by our management, directors, or controlling shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States.

***You may be unable to present proposals before annual general meetings or extraordinary general meetings not called by shareholders.***

The Cayman Companies Act does not provide shareholders with any right to requisition a general meeting or to put any proposal before a general meeting. These rights, however, may be provided in a company's articles of association. The post offering memorandum and articles of association of Center Mobile Cayman do not provide shareholders with any right to requisition a general meeting or put any proposals before annual general meetings or extraordinary general meetings not called by such shareholders.

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***If we cease to qualify as a foreign private issuer, we would be required to comply fully with the reporting requirements of the Exchange Act applicable to U.S. domestic issuers, and we would incur significant additional legal, accounting, and other expenses that we would not incur as a foreign private issuer.***

We expect to qualify as a foreign private issuer upon the completion of this Offering. As a foreign private issuer, we will be exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements, and our executive officers, directors, and principal shareholders will be exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we will not be required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as United States domestic issuers, and we will not be required to disclose in our periodic reports all of the information that United States domestic issuers are required to disclose. While we currently expect to qualify as a foreign private issuer immediately following the completion of this Offering, we may cease to qualify as a foreign private issuer in the future, in which case we would incur significant additional expenses that could have a material adverse effect on our results of operations.

***Because we are a foreign private issuer and intend to take advantage of exemptions from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer.***

Nasdaq listing rules require listed companies to have, among other things, a majority of its board members be independent. As a foreign private issuer, however, we are permitted to follow home-country practice in lieu of the above requirements. The corporate governance practice in our home country, the Cayman Islands, does not require a majority of our board to consist of independent directors. Thus, although a director must act in the best interests of the Company, it is possible that fewer board members will be exercising independent judgment and the level of board oversight on the management of our Company may decrease as a result. In addition, Nasdaq listing rules require U.S. domestic issuers to have an audit committee, a compensation committee and a nominating/corporate governance committee composed entirely of independent directors, and an audit committee with a minimum of three members. We intend to follow home-country practice, as permitted by Nasdaq. See "*Management — Corporate Governance Practices*." Accordingly, you would not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.

***If we cannot satisfy, or continue to satisfy, the listing requirements and other rules of Nasdaq, our Ordinary Shares may not be listed or may be delisted, which could negatively impact the price of our Ordinary Shares and your ability to sell them.***

We have applied to list our Ordinary Shares on Nasdaq upon consummation of this Offering. We cannot assure you that we will be able to meet those initial listing requirements at that time. Even if our Ordinary Shares are listed on Nasdaq, we cannot assure you that our Ordinary Shares will continue to be listed on Nasdaq. We will not proceed with this Offering if our Ordinary Shares are not approved for listing on Nasdaq.

In addition, to maintain our listing on Nasdaq following this Offering, we will be required to comply with certain rules of Nasdaq, including those regarding minimum shareholders' equity, minimum share price, minimum market value of publicly held shares, and various additional requirements. Even if we initially meet the listing requirements and other applicable rules of Nasdaq, we may not be able to continue to satisfy these requirements and applicable rules. If we are unable to satisfy Nasdaq criteria for maintaining our listing, our Ordinary Shares could be subject to delisting.

If our Ordinary Shares are delisted from Nasdaq, we could face significant consequences, including:

● a limited availability for market quotations for our Ordinary Shares;

● reduced liquidity with respect to our Ordinary Shares;

● a determination that the Ordinary Share is a "penny stock," which will require brokers trading in our Ordinary Shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our Ordinary Shares;

● limited amount of news and analyst coverage; and

● a decreased ability to issue additional securities or obtain additional financing in the future.

***We are an "emerging growth company" within the meaning of the Securities Act, and if we take advantage of certain exemptions from disclosure requirements available to emerging growth companies, this will make it more difficult to compare our performance with other public companies.***

We are an "emerging growth company" within the meaning of the Securities Act, as modified by the JOBS Act. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This will make comparison of our financial statements with another public company, which is neither an emerging growth company nor an emerging growth company and, which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

***If we are classified as a passive foreign investment company, United States taxpayers who own our Ordinary Shares may have adverse United States federal income tax consequences.***

A non-U.S. corporation, we will be classified as a passive foreign investment company ("PFIC") for any taxable year if, for such year, either:

● at least 75% of our gross income for the year is passive income; or

● the average percentage of our assets (determined at the end of each quarter) during the taxable year which produce passive income or which are held for the production of passive income is at least 50%.

Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business), and gains from the disposition of passive assets.

If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. taxpayer who holds our Ordinary Shares, the U.S. taxpayer may be subject to increased U.S. federal income tax liability and may be subject to additional reporting requirements.

Depending on the amount of cash we raise in this Offering, together with any other assets held for the production of passive income, it is possible that, for our current taxable year or for any subsequent year, more than 50% of our assets may be assets which produce passive income, in which case we would be deemed a PFIC, which could have adverse U.S. federal income tax consequences for U.S. taxpayers who are shareholders. We will make this determination following the end of any particular tax year.

The classification of certain of our income as active or passive, and certain of our assets as producing active or passive income, and hence whether we are or will become a PFIC, depends on the interpretation of certain United States Treasury Regulations as well as certain IRS guidance relating to the classification of assets as producing active or passive income. Such regulations and guidance are potentially subject to different interpretations. If due to different interpretations of such regulations and guidance the percentage of our passive income or the percentage of our assets treated as producing passive income increases, we may be a PFIC in one or more taxable years.

For a more detailed discussion of the application of the PFIC rules to us and the consequences to U.S. taxpayers if we were or are determined to be a PFIC, see "*Material Income Tax Considerations — United States Federal Income Taxation — PFIC Consequences.*"

U.S. HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISERS ABOUT THE PFIC RULES, THE POTENTIAL APPLICABILITY OF THESE RULES TO THE COMPANY CURRENTLY AND IN THE FUTURE, AND THEIR FILING OBLIGATIONS IF THE COMPANY IS A PFIC.

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**DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements that reflect our current expectations and views of future events, all of which are subject to risks and uncertainties. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. You can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this prospectus. These statements are likely to address our growth strategy, financial results, and financial needs. You must carefully consider any such statements and should understand that many factors could cause actual results to differ from our forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed, and actual future results may vary materially. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

● assumptions about our future financial and operating results, including revenue, income, expenditures, cash balances, and other financial items;

● our ability to execute our growth strategies, including our ability to meet our goals;

● current and future economic and political conditions;

● our future business development, financial condition, and results of operations;

● our expectations regarding our relationships with our customers, business partners and third-parties;

● the trends in, expected growth in and market size of the mobile connectivity and wireless communications services industry in Japan and globally;

● our ability to maintain and enhance our market position;

● general business, political, social, and economic conditions in Japan;

● our capital requirements and our ability to raise any additional financing which we may require;

● competitive environment, competitive landscape, and potential competitor behavior in our industry;

● fluctuations in inflation, interest rates, and foreign exchange rates;

● possible disruptions in commercial activities caused by events such as natural disasters or terrorist activity; and

● other assumptions described in this prospectus underlying or relating to any forward-looking statements.

We describe certain material risks, uncertainties, and assumptions that could affect our business, including our financial condition and results of operations, under "*Risk Factors*." We base our forward-looking statements on our management's beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that actual outcomes and results may, and are likely to, differ materially from what is expressed, implied, or forecast by our forward-looking statements. Accordingly, you should be careful about relying on any forward-looking statements.

The forward-looking statements made in this prospectus relate only to events or information as of the date on which the statements are made in this prospectus. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this prospectus and the documents that we refer to in this prospectus and have filed as exhibits to the registration statement, of which this prospectus forms a part, completely and with the understanding that our actual future results may be materially different from what we expect.

**Industry Data and Forecasts**

This prospectus contains references to market data and industry forecasts and projections, which were obtained or derived from publicly available information, reports of governmental agencies, market research reports, and industry publications and surveys. These sources generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of that information is not guaranteed. Although we believe such information to be accurate, we have not independently verified the data from these sources. However, we acknowledge our responsibility for all disclosures in this prospectus. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and additional uncertainties and risks regarding the other forward-looking statements in this prospectus due to a variety of factors, including those described in this section, the section entitled "*Risk Factors*," and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the forecasts and estimates.

**ENFORCEABILITY OF CIVIL LIABILITIES**

We are incorporated under the laws of the Cayman Islands as an exempted company limited by shares. We are incorporated under the laws of the Cayman Islands because of certain benefits associated with being a Cayman Islands company, such as political and economic stability, an effective judicial system, a favorable tax system, the absence of foreign exchange control or currency restrictions, and the availability of professional and support services. The Cayman Islands, however, has a less developed body of securities laws as compared to the United States and provides significantly less protection for investors than the United States. Additionally, Cayman Islands companies may not have standing to sue in the Federal courts of the United States.

Substantially all of our assets are located in Japan. In addition, all of our directors and officers are nationals or residents of Japan and all or a substantial portion of their assets are located outside the United States. As a result, it may be difficult for investors to effect service of process within the United States upon us or these persons, or to enforce against us or them judgments obtained in United States courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States.

We have appointed Cogency Global Inc. as our agent to receive service of process with respect to any action brought against us in the United States District Court for the Southern District of New York under the federal securities laws of the United States or of any state in the United States or any action brought against us in the Supreme Court of the State of New York in the County of New York under the securities laws of the State of New York.

Conyers Dill & Pearman ("Conyers"), our special counsel with respect to the laws of the Cayman Islands, has advised us that there is uncertainty as to whether the courts of the Cayman Islands would (i) recognize or enforce judgments of United States courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States or (ii) entertain original actions brought in the Cayman Islands against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States.

We have been advised by Conyers that although there is no statutory enforcement in the Cayman Islands of judgments obtained in the federal or state courts of the United States (and the Cayman Islands are not a party to any treaties for the reciprocal enforcement or recognition of such judgments with the United States), the courts of the Cayman Islands would recognize as a valid judgment, a final and conclusive judgment in personam obtained in the federal or state courts of the United States against the Company under which a sum of money is payable (other than a sum of money payable in respect of multiple damages, taxes or other charges of a like nature or in respect of a fine or other penalty) or, in certain circumstances, an in personam judgment for non-monetary relief, and would give a judgment based thereon provided that (a) such courts had proper jurisdiction over the parties subject to such judgment; (b) such courts did not contravene the rules of natural justice of the Cayman Islands; (c) such judgment was not obtained by fraud; (d) the enforcement of the judgment would not be contrary to the public policy of the Cayman Islands; (e) no new admissible evidence relevant to the action is submitted prior to the rendering of the judgment by the courts of the Cayman Islands; and (f) there is due compliance with the correct procedures under the laws of the Cayman Islands.

In addition, TMI Associates, our counsel with respect to the laws of Japan, has advised us that there is uncertainty as to the enforceability in Japan, either in original actions brought in Japan or in actions to enforce judgments of U.S. courts, of civil liability predicated upon the federal securities laws of the United States or the securities laws of any state in the United States.

A Japanese court may decline to apply U.S. securities laws in an original action if it determines that such laws are contrary to the public policy of Japan.

Japanese courts will refuse to enforce judgments of foreign courts if the judgments do not meet any of the following requirements:

● The jurisdiction of the foreign court must be recognized under applicable laws, regulations, treaties, or conventions;

● The losing party has been served (excluding service by publication or similar service) with the requisite summons or order for the commencement of litigation, or has appeared without being so served;

● The content of the judgment and the litigation proceedings are not contrary to public policy in Japan; and

● A guarantee of reciprocity is in place.

With respect to the guarantee of reciprocity, there are no treaties between the U.S. and Japan that would generally permit any judgments of U.S. courts to be enforced in Japan. Thus, a Japanese court will determine on a case-by-case basis whether there is a guarantee of reciprocity is in place between the U.S. court in question and Japanese courts.

Therefore, if you obtain a civil judgment by a U.S. court, you may not be able to enforce it in Japan.

**USE OF PROCEEDS**

Based upon the assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus, we will receive net proceeds from this Offering, after deducting the estimated underwriting discounts, non-accountable expense allowance, and the estimated offering expenses payable by us, of approximately $12,756 thousand (JPY1,918,684 thousand), assuming the Representative does not exercise its over-allotment option, and $14,849 thousand (JPY2,233,417 thousand), if the Representative exercises its over-allotment option in full.

We plan to use the net proceeds we receive from this Offering for the following purposes:

● approximately 40% for the development and expansion of the water dispenser business;

● approximately 40% for the development and expansion of the original smartphone business; and

● approximately 20% for the expansion of our existing business, including products and services in our SIM Card Business.

The foregoing represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this Offering. Currently, we do not plan to use the net proceeds from this offering to directly or indirectly acquire assets other than in the ordinary course of business. Our management, however, will have flexibility and discretion to apply the net proceeds of this Offering. See "*Risk Factors—Risks Relating to this Offering and the Trading Market—Our management has broad discretion to determine how to use the net proceeds raised in this Offering and may use them in ways that may not enhance our results of operations or the price of our Ordinary Shares*" on page 25 of this prospectus. To the extent that the net proceeds we receive from this Offering are not immediately used for the above purposes, we intend to invest our net proceeds in short-term, interest-bearing bank deposits or debt instruments.

We will not receive any proceeds from the sale of the Selling Shareholder Shares under the separate Resale Prospectus.

**DIVIDEND POLICY**

Under Cayman Islands law, a Cayman Islands company may pay a dividend on its shares out of either profit or share premium, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business. The payment of future dividends will depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions, our investor relation policies, and other factors that our shareholders or our board of directors may deem relevant. Consequently, we cannot give any assurance that any dividends will be declared and paid in the future.

If we determine to pay dividends on any of our Ordinary Shares in the future, as a holding company, we will be dependent on receipt of funds from our subsidiary, Center Mobile Japan. Under the Japanese Companies Act (Act No. 86 of 2005, as amended), dividends must be paid from retained earnings and no dividend shall be paid out if the payment would cause the company to be insolvent (more precisely, if the amount of net assets after dividends falls below a certain amount as stipulated by the Companies Act). As a result, in the event that Center Mobile Japan incurs debt on its own behalf in the future, its ability to pay dividends or other distributions to us may be limited. Cash dividends on our Ordinary Shares, if any, will be paid in JPY.

**CAPITALIZATION**

The following table sets forth our capitalization as of November 30, 2024:

● on an actual basis;

● on an as-adjusted basis to reflect the issuance and sale of Ordinary Shares by us in this Offering based on the assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range as set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts, non-accountable expense allowance, and the estimated offering expenses payable by us, and assuming no exercise of the Representative's over-allotment option.

You should read this capitalization table in conjunction with "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and the financial statements and the related notes appearing elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
| USD in thousands | **November 30, 2024** | **November 30, 2024** |
|  | **Actual** | **As Adjusted (1)** |
| Cash and Cash Equivalents | $2059 | $14815 |
| Indebtedness: |  |  |
| Bonds | 392 | 392 |
| Current portion of long-term loans | 67 | 67 |
| Long-term loans | 88 | 88 |
| Total Indebtedness | 547 | 547 |
| Shareholders' Equity: |  |  |
| Ordinary Shares, 1,000,000,000 shares authorized, 24,720,473 shares issued and outstanding, actual\*; 1,000,000,000 shares authorized, 28,470,473 shares issued and outstanding, as-adjusted |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 204 | 12968 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 3895 | 3895 |
| &nbsp;&nbsp;&nbsp;Total Shareholders' Equity | $4099 | $16863 |
| Total Capitalization | $4646 | $17410 |

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| | | |
|:---|:---|:---|
| JPY in thousands | **November 30, 2024** | **November 30, 2024** |
|  | **Actual** | **As adjusted (1)** |
| Cash and Cash Equivalents | ¥309688 | ¥2228379 |
| Indebtedness: |  |  |
| Bonds | 58957 | 58957 |
| Current portion of long-term loans | 10008 | 10008 |
| Long-term loans | 13304 | 13304 |
| Total Indebtedness | 82269 | 82269 |
| Stockholders' Equity: |  |  |
| Ordinary Shares, 1,000,000,000 shares authorized, 24,720,473 shares issued and outstanding, actual\*; 1,000,000,000 shares authorized, 28,470,473 shares issued and outstanding, as-adjusted |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 30700 | 1950451 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 585920 | 585920 |
| &nbsp;&nbsp;&nbsp;Total Stockholders' Equity | ¥616620 | ¥2536371 |
| Total Capitalization | ¥698889 | ¥2618640 |

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\* Retrospectively restated for the effect of a 1:31,129 share split on July 1, 2024 and the 1:3 share split on December 12, 2024.

(1) The as-adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price and other terms of this Offering determined at pricing. We estimate that such net proceeds will be approximately $12.8 million (JPY1,918,684 thousand), assuming the Representative does not exercise its over-allotment option, and $14.8 million (JPY2,233,417 thousand) if the Representative exercises its over-allotment option in full.

**DILUTION**

If you invest in our Ordinary Shares, your interest will be diluted for each Ordinary Share you purchase to the extent of the difference between the initial public offering price per Ordinary Share and our net tangible book value per Ordinary Share after this Offering. Dilution results from the fact that the initial public offering price per Ordinary Share is substantially in excess of the net tangible book value per Ordinary Share attributable to the existing shareholders for our presently outstanding Ordinary Shares.

Our net tangible book value as of November 30, 2024 was $3,081 thousand (JPY463,412 thousand), or $0.13 (JPY19) per Ordinary Share. Net tangible book value represents the amount of our total tangible assets, less the amount of our total liabilities. Dilution is determined by subtracting the net tangible book value per Ordinary Share (as-adjusted for the Offering) from the public offering price per share and after deducting the estimated underwriting discounts and the other estimated offering fees and expenses payable by us.

After giving effect to the sale of 3,750,000 Ordinary Shares in this Offering based on the assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus, and after deducting the estimated underwriting discounts, the non-accountable expense allowance, and the estimated offering expenses payable by us, and assuming no exercise of the over-allotment option, our as-adjusted net tangible book value as of November 30, 2024, would have been $15,845 thousand (JPY2,383,179 thousand), or $0.56 (JPY84) per Ordinary Share. This represents an immediate increase in net tangible book value of $0.43 (JPY65) per Ordinary Share to the existing shareholders, and an immediate dilution in net tangible book value of $3.44 (JPY5174) per Ordinary Share to investors purchasing Ordinary Shares in this Offering. The as-adjusted information discussed above is illustrative only.

A $1.00 increase (decrease) in the assumed initial public offering price of $4.00 per Ordinary Share would increase (decrease) our as-adjusted net tangible book value after giving effect to this Offering by $3,488 thousand (JPY524,555 thousand), the as-adjusted net tangible book value per Ordinary Share after giving effect to this Offering by $0.12 (JPY18) per Ordinary Share, and decrease (increase) the dilution in as-adjusted net tangible book value per Ordinary Share to new investors in this Offering by $0.88 (JPY132) per Ordinary Share, assuming no change to the number of Ordinary Shares offered by us as set forth on the front cover of this prospectus, and after deducting the underwriting discounts, non-accountable expense allowance, and estimated offering expenses payable by us.

An increase (decrease) of 1,000,000 Ordinary Shares in the number of Ordinary Shares offered by us would increase (decrease) our as-adjusted net tangible book value after giving effect to this Offering by $3,720 thousand (JPY559,525 thousand), increase (decrease) the as-adjusted net tangible book value per Ordinary Share after giving effect to this Offering by $0.10 (JPY15) per Ordinary Share, and decrease (increase) the dilution in as-adjusted net tangible book value per Ordinary Share to new investors in this Offering by $0.12 (JPY18) per Ordinary Share, based on the initial public offering price of $4.00 (JPY602) per Ordinary Share, and after deducting the underwriting discounts, non-accountable expense allowance, and estimated offering expenses payable by us.

The following tables illustrate such dilution:

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| | |
|:---|:---|
|  | **Per Ordinary <br> Share** |
| Assumed initial public offering price per Ordinary Share | $4.00 |
| Net tangible book value per Ordinary Share as of November 30, 2024 | $0.13 |
| Net tangible book value per Ordinary Share attributable to payments by new investors | $0.56 |
| As-adjusted net tangible book value per Ordinary Share immediately after this Offering | $0.43 |
| Amount of dilution in net tangible book value per Ordinary Share to new investors in the Offering | $3.44 |

---

The following tables summarize, on an as-adjusted basis as of November 30, 2024, the differences between existing shareholders and the new investors with respect to the number of Ordinary Shares purchased from us, the total consideration paid and the average price per Ordinary Share before deducting the estimated underwriting discounts, non-accountable expense allowance, and the estimated offering expenses payable by us.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares purchased** | **Ordinary Shares purchased** | **Total Consideration** | **Total Consideration** | **Average Price Per Ordinary** |
|  | **Number** | **Percent** | **Amount** | **Percent** | **Share** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Existing shareholders | 24720473 | 86.8% | $211 | 1.4% | $0.01 |
| New investors | 3750000 | 13.2% | $15000 | 98.6% | $4.00 |
| Total | 28470473 | 100.0% | $15211 | 100.0% | $0.53 |

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The as-adjusted information as discussed above is illustrative only. Our net tangible book value following the completion of this Offering is subject to adjustment based on the actual initial public offering price of the Ordinary Share and other terms of this Offering determined at the pricing.

**CORPORATE HISTORY AND STRUCTURE**

**Corporate History**

Center Mobile was incorporated as a joint-stock corporation (*kabushiki kaisha*) with limited liability under Japanese law on June 2, 2020, in Osaka, Japan.

On June 10, 2022, we executed a loan agreement with Mr. Shota Matsuyama, the founder of Pay Storage. Pursuant to the terms of the agreement, we extended a loan to him in the principal amount of JPY20 million, with a fixed annual interest rate of 0.90%. The loan is set to mature at the end of June 2025. The proceeds of the loan were utilized as capital for the establishment of Pay Storage. Mr. Shota Matsuyama served as Pay Storage's representative director and Chief Executive Officer from June 2022 to November 2023.

On June 30, 2024, we entered into a share transfer agreement with Mr. Shota Matsuyama, the then sole shareholder of Pay Storage, pursuant to which Mr. Matsuyama agreed to transfer 400 shares of Pay Storage to us for the transfer price of JPY20 million. The share transfer date was on June 30, 2024 (the "Closing Date"). On the Closing Date, the transfer price was offset against the equivalent portion of the outstanding loan amount for which we hold claims against Mr. Matsuyama.

In connection with this offering, we have undertaken a reorganization of our corporate structure (the "Reorganization") in the following steps:

● on April 10, 2025, we incorporated Center Mobile Cayman as an exempted company limited by shares under the laws of the Cayman Islands; and

● on June [ ], 2025, Center Mobile Cayman entered into a share exchange agreement with Center Mobile Japan's shareholders (the "Share Exchange Agreement") to acquire 100% of the equity interests in Center Mobile Japan . As of the date of this prospectus, the transfer of the equity interests in Center Mobile Japan to Center Mobile Cayman, pursuant to the Share Exchange Agreement, is in progress. Once the transfer is completed, Center Mobile Cayman, through a restructuring that is accounted for as a reorganization of entities under common control, will become the direct holding company of Center Mobile Japan. See the section captioned "Description of Share Capital — History of Share Issuances" in this prospectus.

**Our Corporate Structure**

The following chart illustrates our corporate structure as of the date of this prospectus and upon completion of this Offering and does not include an aggregate of 3,970,014 Selling Shareholder Shares.

![](formf1_011.jpg)

(1) The pre-IPO percentages are based upon 24,720,473 Ordinary Shares issued and outstanding as of the date of this prospectus. See "*Description of Share Capital—Ordinary Shares*." The post-IPO percentages are based on 28,470,473 Ordinary Shares issued and outstanding after this Offering, assuming no exercise of the over-allotment option.

Following the completion of this Offering, Mr. Tatsuya Nakagoshi, our founder and director, will hold approximately 71.63% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the Representative's over-allotment option, or approximately 70.25%, assuming full exercise of the Representative's over-allotment option, based on an assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus. As such, we will be deemed to be a "controlled company" under Nasdaq Listing Rule 5615(c). However, even if we are deemed to be a "controlled company," we do not intend to avail ourselves of the corporate governance exemptions afforded to a "controlled company" under the Nasdaq Listing Rules. Nevertheless, as a foreign private issuer, we intend to follow home country practice. Further, for as long as Mr. Nakagoshi beneficially owns a majority of the voting power of our outstanding Ordinary Shares, he will generally be able to control the outcome of matters submitted to our shareholders for approval, including the election of directors, without the approval of our other shareholders. See "*Risk Factors—Risks Relating to this Offering and the Trading Market—As a foreign private issuer, we intend to follow home country practice even though we will be considered a "controlled company" under Nasdaq corporate governance rules, which could adversely affect our public shareholders*" and see "*Management—Controlled Company*."

For details of our principal shareholders' ownership, please refer to the beneficial ownership table in "*Principal Shareholders.*"

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this prospectus. This discussion and analysis and other parts of this prospectus contain forward-looking statements based upon current beliefs, plans, and expectations that involve risks, uncertainties, and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under "Risk Factors" and elsewhere in this prospectus. You should carefully read the "Risk Factors" section of this prospectus to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements. Our historical results are not necessarily indicative of the results that may be expected for any period in the future.*

**Overview**

We conduct all of our operations through our subsidiary in Japan, Center Mobile Japan. Center Mobile Japan is a mobile connectivity and wireless communications services provider in Japan, offering a full range of 4G LTE voice, texting, and data services covering all areas throughout Japan. Our customers are attracted to our services because of our competitive prices, flexible monthly plans, the high quality and stability of our services, and our innovative business model that allows our customers to lower their monthly fees. We offer such services on a monthly basis for specified quantities of minutes or amounts of data selected in advance. In addition, we are, as of the date of this prospectus, one of the few mobile connectivity and wireless communications services providers in Japan operating an innovative business model that allows our customers to lower their monthly fees for our services by watching advertisements or playing games through our proprietary app, "PLAIO." Through this business model that incentivizes our customers to watch advertisements through PLAIO, we are able to receive advertising fees from advertisers and use them to reward those customers who watched advertisements in the form of "points," which may be used by them to lower their monthly fees for our mobile connectivity and wireless communications services.

As an MVNO, we provide mobile connectivity and wireless communications services in Japan by using the infrastructure and communication system of NTT Docomo, one of the largest Japanese MNOs in terms of subscription market share. To provide mobile connectivity and wireless communications services to our customers, we purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards from FreeBit, a Japanese MVNE that also purchases wholesale the wireless network infrastructure from NTT Docomo, and distribute the SIM cards to OEM Partners, retailers who distribute the SIM cards under their own brands, or to customers through our online store, directly-operated stores, franchise stores, and distributors under our name (the SIM Card Business).

Because we do not own or operate a physical network or relevant appliances and equipment, we are free from related capital expenditures and, therefore, are able to focus our resources on providing competitive prices for our services against MNOs. Furthermore, in addition to the monthly fees from our customers, we are also able to generate advertising revenue through operating our innovative business model. While it is common for other mobile connectivity and wireless communications services providers that operate diversified businesses to generate additional revenue by selling other services to existing customers for the mobile connectivity and wireless communications services, our innovative business model allows us to generate additional advertising revenue without the sales of other services, enabling two revenue streams from a single service. This unique dual revenue structure provides us with additional funds to provide high-quality and stable services by leasing sufficient bandwidth for mobile connectivity and wireless communications services from FreeBit yet at competitive prices to our customers.

As of November 30, 2024, we had entered into approximately 28,212 service agreements for our mobile connectivity and wireless communications services and our revenue generated from the SIM Card Business was approximately JPY555,309 thousand ($3,692 thousand), JPY1,060,404 thousand ($7,050 thousand) and JPY1,312,065 thousand ($8,723 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 53.4%, 67.1% and 74.5% of our total revenue for those periods, respectively.

We also operate an Internet Business. Under the Internet Business, we offer three types of communications services: the mobile router connectivity service, the home wireless communications service, and the home internet service. For the mobile router connectivity service and the home wireless communications service, we, as an MVNO, purchase wholesale SIM cards and mobile connectivity and wireless communications services and applicable mobile routers from an MVNE and sell our wireless communications services to the customers through our retail channels; for the home internet service, we purchase internet access services and applicable home routers wholesale from an internet access service provider that purchases the optical fiber system and internet access services wholesale from telecom companies and sell our internet access services to customers through our retail channels.

As of November 30, 2024, we had entered into approximately 1,595 service agreements under the Internet Business, and our revenue generated from the Internet Business was approximately JPY47,230 thousand ($314 thousand), JPY44,485 thousand ($296 thousand) and JPY73,093 thousand ($486 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 4.5%, 2.8% and 4.6% of our total revenue for those periods, respectively.

In addition to the SIM Card Business and the Internet Business, we currently also operate the Outsourcing Business. Under the Outsourcing Business, we work as a staffing agency, and our goal and policy are to provide a more stable working environment and conditions for job seekers. Unlike most of the staffing agencies in Japan that only hire job seekers and dispatch them to their corporate clients without providing much training, leaving the training to such corporate clients, we hire job seekers as our full-time employees and provide basic training to help them fit into the workplaces and positions that we consider the best match for them based on their willingness, interests, personalities, experiences, requirements, and our corporate clients' needs before dispatching them to our corporate clients. We also focus on the welfare of our employees and, we believe, offer more competitive employment conditions compared to those of other staffing agencies in Japan. By doing so, we may provide a more stable working environment and conditions for job seekers, which benefits us in recruiting more talented and competent personnel to appeal to more corporate clients. For each dispatch, our corporate clients pay us a monthly dispatch fee, and we then pay our employees who are dispatched monthly salaries, transportation allowance, and incentive bonuses out of the dispatch fees. When our full-time employees are not dispatched to our corporate clients, they generally work at our office and assist in matters such as managing dispatched employees and acquiring new corporate clients.

In addition, for job seekers who do not intend to take the dispatch path, we provide the service of acting as an intermediary, introducing them to appropriate hirers based on job seekers' willingness, interests, personalities, experiences, requirements, and the hirers' needs. In particular, in some special cases of blue-collar job seekers, if they face financial difficulties before getting hired, we support them with a certain amount of living expenses for a certain period of time. By doing so, we expect to make our service appealing to more job seekers, enabling us to secure the source of job seekers. After the job seekers are hired, we charge the hirers referral fees no greater than 30% of the workers' estimated annual compensation package.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, our revenue generated from the Outsourcing Business was approximately JPY399,827 thousand (2,658 thousand), JPY264,865 thousand ($1,761 thousand) and JPY73,408 thousand ($488 thousand), respectively, which accounted for 38.4%, 16.8% and 4.2% of our total revenue for those periods, respectively.

In addition to our SIM Card Business, Internet Business, and Outsourcing Business, we currently also operate Travel Business. Through cooperating with our travel business partners, we operate a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans and hotel plus Shinkansen (Japanese bullet trains) ticket travel plans. In most cases, our prices are lower than wholesale prices. While our prices may sometimes be slightly higher than the wholesale price, they are still lower than the official prices set by the hotels, airlines, and the Shinkansen company. We charge a monthly subscription fee of 2,530 Japanese yen (approximately $17). As of November 30, 2024, we had approximately 4,769 subscribers, and our revenue generated from the Travel Business was approximately JPY58,596 thousand (390 thousand), JPY142,257 thousand ($946 thousand) and JPY229,812 thousand ($1,528 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 6.0%, 9.0% and 13.0% of our total revenue for those periods, respectively.

We operate our SIM Card Business, Internet Business, and Travel Business through Center Mobile Japan and operate our Outsourcing Business through Pay Storage, the wholly owned subsidiary of Center Mobile Japan. Both Center Mobile Japan and Pay Storage are based in Japan. Since investors will invest in Center Mobile Cayman, a holding company without substantial operations, our cash flows and our ability to meet our obligations depend on the cash flows of Center Mobile Japan and Pay Storage and the payment of funds by Center Mobile Japan and Pay Storage to us in the form of dividends, distributions or otherwise.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, our total revenue was JPY1,039,866 thousand (approximately $6,914 thousand), JPY1,583,214 thousand (approximately $10,526 thousand) and JPY1,760,423, thousand (approximately $11,704 thousand), respectively, and our net income was JPY29,081 thousand (approximately $193 thousand), JPY40,278 thousand (approximately $268 thousand) and JPY291,724 thousand (approximately $1,940 thousand), respectively.

**Factors Impacting Our Operating Results**

Our financial condition and results of operations have been and will continue to be affected by a number of factors, many of which may be beyond our control, including those factors set out in the section headed "*Risk Factors*" in this prospectus and those set out below.

***Relationship with MVNEs and other third-party service providers***

 ****

For our SIM Card Business, we purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards from FreeBit, a Japanese MVNE that also purchases wholesale the wireless network infrastructure from NTT Docomo. While our service agreement has been automatically renewed every year since 2022, we have not entered into a long-term service agreement with FreeBit. See "*Business—SIM Card Business.*" Moreover, for our Internet Business, we purchase wholesale SIM cards and mobile connectivity and wireless communications services and applicable mobile routers from Network Consulting, and purchase applicable mobile routers wholesale from UQ Communications Inc., a Japanese MNO. In addition, we purchase internet access services and applicable home routers wholesale from NEXT BB. See "*Business—Internet Business.*" Our service agreements with Network Consulting and NEXT BB have an automatic renewal term, allowing us to continue the contractual relationship under the same terms, unless either party notifies the other of its intention to the contrary in writing no later than one month before the expiration of the then current term. However, there is no assurance that FreeBit will continue to purchase wholesale the wireless network infrastructure from NTT Docomo and renew our service agreement with us. It is also possible that Network Consulting or NEXT BB may terminate our service agreement for our Internet Business. If the above MVNEs and other third-party service providers determine to terminate our service agreements or replacing existing terms with unfavorable ones, we may have no means of replacing these services on a timely basis or at all, which may adversely affect our business, financial condition, and our results of operations.

In addition, we rely greatly on network services provided by our MVNEs, their MNOs, and other third-party services providers, which may subject to interruptions, errors, or delays with respect to their backbone network or service facilities caused by human errors, interruptions, errors, or delays with service facilities, or natural factors, including damage from fire, earthquakes, or other natural disasters, power loss, sabotage, computer hackers, cyber-attack, human error, computer viruses, and other similar events. If our MVNEs, their MNOs, and other third-party services providers experience any of these incidents and will not be able to repair or regain stable network services in a timely manner or at all, our network capacity provided by such MVNEs, their MNOs, and/or other third-party service providers will suffer. As a result, the credibility of our network and customer satisfaction could decrease significantly, which could have a material adverse effect on our business and results of operations.

***Ability to maintain and enhance our brand***

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We believe that recognition of our brand contributes significantly to the success of our business. We also believe that maintaining and enhancing our brand is critical to expanding our customer's base. As our market becomes increasingly competitive, maintaining and enhancing our brand will depend largely on our ability to fund the advertising and promote our services and brand through social media platforms, which may be increasingly difficult and expensive. We also intend to engage with our existing and potential customers to receive real time feedback on our services. However, we cannot guarantee that the expected results will be achieved. If we are unable to maintain and enhance a strong brand recognition, or fail to respond to customer requirements, we may lose our competitive edge and may not be able to increase our customer base. As a result, our brand, business, and results of operations may be materially and adversely affected.

***Ability to expand our services***

Our business as a mobile connectivity and wireless communications services provider depends on our ability to maintain and expand our telecommunications service network while maintaining the quality of the services provided and a positive customer experience. We believe that our growth will require, among other aspects, increasing marketing activities and network capacity, continuous attention to service quality, and a positive customer experience. These requirements will place significant demand on our managerial, operational, and financial resources. Failure to manage successfully and effectively our growth could reduce the quality of our services and result in an inadequate customer experience that may have adverse effects on our business, financial condition, and results of operations.

***Performance of our franchise stores and OEM Partners***

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A significant portion of our SIM Card Business and Internet Business revenue is generated by monthly usage payments paid by our customers obtained through our franchise stores and OEM Partners. During the fiscal years ended May 31, 2024 and 2023, revenue from customers acquired through our franchise stores accounted for 1.8% and 1% of our total revenue, respectively, and revenue from our OEM Partners accounted for 69.6% and 56.5% of our total revenue, respectively. Any business interruptions or reduction of revenue of our franchisees or OEM Partners could have an adverse effect on our business. Our franchise stores and OEM service agreements generally have a term of one year and automatically renew for successive one-year terms, unless either party notifies the other of its intention to the contrary in writing no later than three months before the expiration of the current term. If our franchise stores or OEM Partners terminate their agreements with us or request more favorable terms than the ones we currently have to renew such agreement, our retail channels will decrease and our ability to acquire customers will suffer. As a result, our business and results of operations will be materially and adversely affected.

In addition, although we license certain trademarks and trade names, such as センターモバイル (which translates to "center mobile"), and grant permission to use our store management know-how and provide management guidance to franchise stores, franchise stores are independent operators, and their employees are not our employees. Franchise stores may not operate their stores in a manner consistent with our standards and requirements or they or their employees may take actions that adversely affect the value of our brand. While we try to ensure that franchise stores maintain the quality of our brand and comply with their franchise agreements, franchise stores may take actions that adversely affect the value of our intellectual property or reputation or that are inconsistent with their contractual obligations. Although our franchise agreements permit us to terminate the agreement under certain circumstances, including violation of the agreement by a franchise store or deterioration of financial conditions of a franchise store, there can be no assurance that such remedy will be available or sufficient to prevent or undo harm to our brand.

***Ability to provide travel plans at competitive prices***

We believe that the success of our Travel Business is dependent on our ability to provide subscribers with access to travel plans offered by partners at competitive prices. By cooperating with our travel business partners, we provide services that allow subscribers to purchase travel plans from our partners, at prices that are lower than the wholesale price in most cases. While our prices may sometimes be slightly higher than the wholesale price, they are still lower than the official prices set by the hotels, airlines, and the Shinkansen (Japanese bullet trains) company. If we are unable to keep travel plans offered by our partners via our portal site attractive, for example, due to interruption of business relationships with our travel business partners or more attractive travel plans provided by competitors, our existing subscribers may terminate the subscriptions and we may not be able to attract new subscribers. As a result, our Travel Business revenue will decrease, which could materially and adversely affect our business, financial condition, and results of operations.

***Competitive market***

We face significant competition in the MVNO industry in Japan. The major competitors of our SIM Card Business are major MVNOs, some of which are highly integrated service providers that are directly operated by MNOs or MVNEs. These major competitors may have greater brand recognition, larger customer bases, and a larger pool of technology human resources, including application development engineers, than we do. They may also have better financial resources to fund advertising, purchase wholesale more bandwidth of the mobile connectivity and wireless communications services to improve network speed, invest more heavily in research and development, and reduce prices to retain existing customers and attract new customers. We will compete with these competitors on brand name, quality of services, level of expertise, advertising, product and service innovation, and differentiation of product and services. Moreover, new entrants from other industries into the MVNO industry with new and enhanced technologies may increase the competition and weaken our competitive position and profitability. There can be no assurance that we will be able to compete successfully against current or future competitors, and such competitive pressures could have a material adverse effect on our business, financial condition, and results of operations.

**Future Outlook of Market Trend**

According to a report titled "Trends in the communications market" released by the MIC on April 24, 2024, as of the end of December 2023, there were 1,890 MVNOs, and the market share of MVNOs in the number of mobile communication contracts in cellular phone, Phala Network, and Broadband Wireless Access was 15.2%, which increased by 1.4% from 13.8% as of December 2022.

Although the consumer price index for telecommunications charges (cell phone) has declined significantly compared to the time when the revised Telecommunications Business Act went into effect in October 2019, the consumer price index for telecommunications charges (cell phone) has been on an upward trend in recent years, increasing by 13.0% since 2021.

According to the results of the survey conducted by the MIC from March 1, 2024 to March 3, 2024, a total of 3.3% of all respondents have switched from MVNOs to MNOs, while a total of 4.5% of all respondents have switched from MNOs to MVNOs. According to the report by the MIC, the number of MVNO contracts is increasing.

**Key Financial Performance Indicators**

***Revenue***

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Our revenue is primarily derived from mobile network services, advertising, outsourcing business, and travel business.

***Cost of revenue***

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Our cost of revenue is primarily comprised of the costs to purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards and personnel costs related to outsourcing business.

***Gross profit and gross profit margin***

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Gross profit is the difference between our revenue and cost of revenue. Gross profit margin is calculated by dividing gross profit by revenue.

***Selling, general, and administrative expenses ("SG&A expenses")***

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SG&A expenses are primarily comprised of personnel costs for general corporate functions and sales and marketing staff, commission expenses, advertising expenses, and outsourcing expenses.

 **

***Operating income***

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Operating income is the difference between our revenue and cost of revenue and SG&A expenses.

***Other income (expenses)***

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Other income (expenses) is primarily comprised of interest income (expenses) and other income (expenses), which reflect the non-recurring, non-operating gains and losses we have from time to time.

**Key Performance Indicators (KPIs)**

The following metrics are the KPIs that we use to measure the performance of our business and future business opportunities and to develop strategic plans. We believe these KPIs provide useful information to help investors understand and evaluate our results of operations in the same manner as our management team. Certain judgement and estimates are inherent in our processes for calculating these KPIs.

These KPIs are presented for supplemental information purposes only. They should not be considered as a substitute for financial information presented in accordance with U.S. GAAP and may differ from similarly titled metrics or measures presented by other companies. The following table sets forth a summary of the KPIs:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended Nov 30,** | **Six Months Ended Nov 30,** | **Change (2024 vs 2023)** | **Change (2024 vs 2023)** |
|  | **2024** | **2023** | **YoY** | **YoY %** |
| Number of users | 28212 | 31398 | (3186) | -10.1% |
| Number of subscribers | 4769 | 6286 | (1517) | -24.1% |
| Churn rates | 3.1% | 2.6% |  | 0.5% |
| Retention rates | 96.9% | 97.4% |  | -0.5% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fiscal Years Ended May 31,** | **Fiscal Years Ended May 31,** | **Change (2024 vs 2023)** | **Change (2024 vs 2023)** |
|  | **2024** | **2023** | **YoY** | **YoY %** |
| Number of users | 30031 | 32845 | (2814) | -8.6% |
| Number of subscribers | 5314 | 8205 | (2891) | -35.2% |
| Churn rates | 2.4% | 2.8% |  | -0.4% |
| Retention rates | 97.6% | 97.2% |  | 0.4% |

---

***Number of users***

Every month, we track the number of users. We define users as our customers who use our SIM cards. The number of users in the table above reflects the number of customers using our SIM cards as of November 30, 2024 and 2023 and March 31, 2024 and 2023. We consider the number of users as a KPI as it indicates the revenue base for our business. This is a leading indicator for our mobile network service and advertising business.

***Number of subscribers***

Every month, we track the number of subscribers. We define subscribers as our customers who subscribe our travel services. The number of subscribers in the table above reflect the number of customers subscribing our travel plan by paying the monthly fee as of November 30, 2024 and 2023 and March 31, 2024 and 2023. We consider the number of subscribers as a KPI as it indicates the revenue base for our business. This is a leading indicator for travel business.

***Churn rate and retention rate***

Every month, we track churn rate and retention rate. We calculate churn rate by dividing the total number of users canceled during the fiscal year by the total number of users we have at the beginning of the fiscal year. Retention rate can be calculated by subtracting the churn rate for the fiscal year from 100%. We consider churn rate and retention rate as KPIs because they indicate the ratio of our users who continue using our services and provide the forecasts of our revenue.

**Results of Operations**

***Comparison of Results of Operations for the Six Months ended November 30, 2024 and 2023***

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The following table sets forth our statements of operations for the six months ended November 30, 2024 and 2023:

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(in thousands, except change % data)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended Nov 30,** | **Six Months Ended Nov 30,** | **Six Months Ended Nov 30,** | **Six Months Ended Nov 30,** | **Change (2024 vs 2023)** |
|  | **2024($)** | **2024(¥)** | **2023($)** | **2023(¥)** | **YoY %** |
| Revenue: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile network service | 3514 | 528501 | 3595 | 540754) | -2.3% |
| &nbsp;&nbsp;&nbsp;Advertising | 244 | 36771 | 261 | 39259) | -6.3% |
| &nbsp;&nbsp;&nbsp;Outsourcing business | 2658 | 399827 | 588 | 88448 | 352.0% |
| &nbsp;&nbsp;&nbsp;Travel business | 390 | 58596 | 506 | 76064) | -23.0% |
| &nbsp;&nbsp;&nbsp;Other | 108 | 16171 | 131 | 19757 | -18.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 6914 | 1039866 | 5081 | 764282 | 36.1% |
| Cost of revenue: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile network service | 1981 | 298005 | 1870 | 281219 | 6.0% |
| &nbsp;&nbsp;&nbsp;Advertising | 133 | 19981 | 306 | 45969) | -56.5% |
| &nbsp;&nbsp;&nbsp;Outsourcing business | 1103 | 165871 | 552 | 83077 | 99.7% |
| &nbsp;&nbsp;&nbsp;Travel business | 61 | 9241 | 88 | 13308) | -30.6% |
| &nbsp;&nbsp;&nbsp;Other | 34 | 5083 | 80 | 12086 | -57.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 3312 | 498181 | 2896 | 435659 | 14.4% |
| Gross profit/(loss) and gross profit/(loss) margin: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile network service | 1532 | 230496 | 1726 | 259535) | -11.2% |
|  |  | *44 %* | *-* | *48 %* | *-4.4 %* |
| &nbsp;&nbsp;&nbsp;Advertising | 112 | 16790 | (45) | (6710) | -350.2% |
|  |  | *46 %* | *-* | *-17 %* | *62.8 %* |
| &nbsp;&nbsp;&nbsp;Outsourcing business | 1555 | 233956 | 36 | 5371 | 4255.9% |
|  |  | *59 %* | *-* | *6 %* | *52.4 %* |
| &nbsp;&nbsp;&nbsp;Travel business | 328 | 49355 | 417 | 62756) | -21.4% |
|  |  | *84 %* | *-* | *83 %* | *1.7 %* |
| &nbsp;&nbsp;&nbsp;Other | 74 | 11088 | 51 | 7671 | 44.5% |
|  | - | *-69 %* | *-* | *-39 %* | *-29.7 %* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit: | 3601 | 541687 | 2185 | 328624 | 64.8% |
| Selling, general and administrative expenses (unallocated) | 3395 | 510636 | 1781 | 267931 | 90.6% |
| Operating income | 206 | 31051 | 404 | 60693) | -48.8% |
| Other income (expense), net (unallocated) | 21 | 3185 | (5) | (710) | -548.6% |
| Net income before tax | 227 | 34236 | 399 | 59983) | -42.9% |
| Income tax expense (unallocated) | (34) | (5153) | (175) | (26387) | -80.5% |
| Net income | 193 | 29083 | 224 | 33596 | -13.4% |

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*Revenue*

 

Revenue for the six months ended November 30, 2024 increased by JPY275,584 thousand ($1,833 thousand), or 36.1%, compared to the six months ended November 30, 2023. The increase was primarily driven by following factors:

● Revenue from mobile network services decreased by JPY12,253 thousand ($81 thousand), mainly due to a decrease in revenue through the distributors which resulted in a decrease in the number of users from 31,398 as of November 30, 2023 to 28,212 as of November 30, 2024, as during the six months ended November 30, 2024, we devoted our resources to increase sales to individual users through directly-operated stores, franchise stores, and OEM Partners.

● Revenue from advertising decreased by JPY2,488 thousand ($17 thousand), mainly due to a decrease in the number of users during the six months ended November 30, 2024, as we had fewer users watching our advertisement.

● Revenue from outsourcing business increased by JPY311,379 thousand ($2,070 thousand), mainly due to an increase in the number of contracts with corporate clients demanding temporary workers. The number of temporary workers we dispatched to corporate clients and the number of job seekers we introduced increased from zero temporary workers and zero job seekers in the six months ended November 30, 2023 to 31 temporary workers and 913 job seekers, respectively, in the six months ended November 30, 2024. We expect our revenue from outsourcing business to continue to increase in the future as we secure more contracts with corporate clients.

● Revenue from travel business decreased by JPY17,468 thousand ($116 thousand), mainly due to a decrease in travel plans sold by our distributors as the number of distributors decreased since contracts with some distributors expired. The number of subscribers for our travel business decreased from 6,286 as of November 30, 2023 to 4,769 as of November 30, 2024.

*Cost of Revenue*

 

Cost of revenue for the six months ended November 30, 2024 increased by JPY62,522 thousand ($416 thousand), or 14.4%, compared to the six months ended November 30, 2023. The increase was primarily driven by the following factors:

● Cost of revenue related to mobile network services increased by JPY16,786 thousand ($111 thousand) while revenue decreased because the majority of the costs to purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards as our largest cost is fixed for each year and does not fluctuate with the decrease in the number of users.

● Cost of revenue related to advertising decreased by JPY25,988 thousand ($173 thousand), reflecting the lower direct costs associated with the lower corresponding revenue.

● Cost of revenue related to outsourcing business, which mainly consists of personnel costs, increased by JPY82,794 thousand ($551 thousand) as the revenue increased significantly in the six months ended November 30, 2024.

● Cost of revenue related to travel business decreased by JPY4,067 thousand (27 thousand), reflecting the lower direct costs associated with the lower corresponding revenue.

*Gross Profit/(Loss)*

 

As a result of the foregoing, the gross profit was JPY541,685 thousand ($3,601 thousand) during the six months ended November 30, 2024, compared to JPY328,623 thousand ($2,185 thousand) during the six months ended November 30, 2023.

● The gross profit from mobile network service was JPY230,496 thousand ($1,532 thousand) during the six months ended November 30, 2024. The gross profit margin decreased from 48% in the six months ended November 30, 2023 to 44% in the six months ended November 30, 2024 as the majority of its cost of revenue was fixed costs and did not fluctuate with the decreased revenue.

● The gross profit from advertising was JPY16,790 thousand ($112 thousand) during the six months ended November 30, 2024. The gross profit margin increased from (17%) in the six months ended November 30, 2023 to 46% in the six months ended November 30, 2024 due to the change in the exchange rate of the points from 1 yen per point to 0.1 yen per point in June 2024.

● The gross profit from outsourcing business was JPY233,956 thousand ($1,555 thousand) during the six months ended November 30, 2024. The gross profit margin increased from 6% in the six months ended November 30, 2023 to 59% in the six months ended November 30, 2024 as the outsourcing business was fully launched and the revenue increased in the six months ended November 30, 2024.

● The gross profit from travel business was JPY49,355 thousand ($328 thousand) during the six months ended November 30, 2024. The gross profit margin remained relatively at the same level, from 83% in the six months ended November 30, 2023 to 84% in the six months ended November 30, 2024.

*SG&A Expenses*

 

SG&A expenses for the six months ended November 30, 2024 increased by JPY510,636 thousand ($3,395 thousand), or 90.6%, compared to the six months ended November 30, 2023. The increase was primarily driven by the following factors:

● an increase in advertising expenses due to the active promotions for outsourcing business;

● an increase in professional fees due to an increase in audit fees;

● an increase in commission expenses mainly due to the temporary campaign costs; and

● an increase in payroll costs due to an increase in headcount and an increase in directors' compensation.

*Other Income (Expenses), net*

 

Other income (expenses) for the six months ended November 30, 2024 increased by JPY3,895 thousand ($26 thousand), or 548.6%, compared to the six months ended November 30, 2023, primarily due to the foreign exchange gain recognized in the six months ended November 30, 2024.

*Net Income*

 

As a result of the foregoing, the net income was JPY29,081 thousand ($193 thousand) during the six months ended November 30, 2024, compared to JPY33,595 thousand ($224 thousand) during the six months ended November 30, 2023.

***Comparison of Results of Operations for the Fiscal Years Ended May 31, 2024 and 2023***

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The following table sets forth our statements of operations for the fiscal years ended May 31, 2024 and 2023:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (in thousands, except change % data) |  |  |  |  |  |  |  |
|  | **Years Ended May 31,** | **Years Ended May 31,** | **Years Ended May 31,** | **Years Ended May 31,** | **Change (2024 vs 2023)** | **Change (2024 vs 2023)** | **Change (2024 vs 2023)** |
|  | **2024($)** | **2024(¥)** | **2023($)** | **2023(¥)** | **$** | **¥** | **YoY %** |
| Revenue: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile network service | 7050 | 1060420 | 8723 | 1312062 |  |  | -19.2% |
| &nbsp;&nbsp;&nbsp;Advertising | 527 | 79194 | 556 | 83662 |  |  | -5.3% |
| &nbsp;&nbsp;&nbsp;Outsourcing business | 1761 | 264878 | 488 | 73397 |  |  | 260.9% |
| &nbsp;&nbsp;&nbsp;Travel business | 945 | 142146 | 1528 | 229804 |  |  | -38.1% |
| &nbsp;&nbsp;&nbsp;Other | 243 | 36576 | 409 | 61498 |  |  | -40.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 10526 | 1583214 | 11704 | 1760423 |  |  | -10.1% |
| Cost of revenue: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile network service | 3761 | 565737 | 3641 | 547642 |  |  | 3.3% |
| &nbsp;&nbsp;&nbsp;Advertising | 565 | 84985 | 598 | 89937 |  |  | -5.5% |
| &nbsp;&nbsp;&nbsp;Outsourcing business | 1493 | 224597 | 312 | 46988 |  |  | 378.0% |
| &nbsp;&nbsp;&nbsp;Travel business | 161 | 24226 | 453 | 68082 |  |  | -64.4% |
| &nbsp;&nbsp;&nbsp;Other | 121 | 18218 | 164 | 24726 |  |  | -26.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 6101 | 917763 | 5168 | 777375 |  |  | 18.1% |
| Gross profit/(loss) and gross profit/(loss) margin: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile network service | 3289 | 494683 | 5082 | 764420 |  |  | -35.3% |
|  | *-* | *47 %* | *-* | *58 %* |  |  | *-11.6 %* |
| &nbsp;&nbsp;&nbsp;Advertising | (39) | (5791) | (42) | (6275) |  |  | -7.7% |
|  | *-* | *-7 %* | *-* | *-8 %* |  |  | *0.2 %* |
| &nbsp;&nbsp;&nbsp;Outsourcing business | 268 | 40281 | 176 | 26409 |  |  | 52.5% |
|  | *-* | *15 %* | *-* | *36 %* |  |  | *-20.8 %* |
| &nbsp;&nbsp;&nbsp;Travel business | 784 | 117920 | 1075 | 161722 |  |  | -27.1% |
|  | *-* | *83 %* | *-* | *70 %* |  |  | *12.6 %* |
| &nbsp;&nbsp;&nbsp;Other | 122 | 18358 | 244 | 36772 |  |  | -50.1% |
|  | *-* | *50 %* | *-* | *60 %* |  |  | *-9.6 %* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit: | 4424 | 665452 | 6535 | 983050 |  |  | -32.3% |
| Selling, general and administrative expenses (unallocated) | 3964 | 596247 | 3730 | 561057 |  |  | 6.3% |
| Operating income | 460 | 69205 | 2805 | 421993 |  |  | -83.6% |
| Other income (expense), net (unallocated) | (7) | (1050) | (6) | (830) |  |  | 26.5% |
| Net income before tax | 453 | 68155 | 2799 | 421163 |  |  | -83.8% |
| Income tax expense (unallocated) | (185) | (27876) | (861) | (129437) |  |  | -78.5% |
| Net income | 268 | 40279 | 1938 | 291726 |  |  | -86.2% |

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*Revenue*

 

Revenue decreased by JPY177,209 thousand ($1,178 thousand), or 10.1% year-over-year, to JPY1,583,214 thousand ($10,526 thousand). The decrease was primarily driven by following factors:

● Revenue from mobile network services decreased by JPY251,642 thousand ($1,673 thousand), mainly due to a decrease in revenue through the distributors which resulted in a decrease in the number of users from 32,845 as of May 31, 2023 to 30,031 as of May 31, 2024, as during the fiscal year ended May 31, 2024, we devoted our resources to increase sales to individual users through directly-operated stores, franchise stores, and OEM Partners.

● Revenue from advertising decreased by JPY4,468 thousand ($29 thousand), mainly due to a decrease in the number of users during the fiscal year ended May 31, 2024, as we had fewer users watching advertisement.

● Revenue from outsourcing business increased by JPY191,481 thousand ($1,273 thousand), mainly due to an increase in the number of contracts with corporate clients demanding temporary workers. The number of workers we dispatched and the number of job seekers we introduced increased from zero in the year ended May 31, 2023 to 21 and 151, respectively, in the year ended May 31, 2024.

● Revenue from travel business decreased by JPY87,658 thousand ($583 thousand), mainly due to a decrease in travel plans sold by our distributors as the number of distributors decreased since contracts with some distributors came to an end in the fiscal year ended May 31, 2024. The number of subscribers for our travel business decreased from 8,205 as of May 31, 2023 to 5,314 as of May 31, 2024.

*Cost of Revenue*

 

Cost of revenue increased by JPY140,388 thousand ($933 thousand), or 18.1% year-over-year, to JPY917,763 thousand ($6,101 thousand). The increase was primarily driven by the following factors:

● Cost of revenue related to mobile network services increased by JPY18,905 thousand ($120 thousand) while revenue decreased because the majority of the costs to purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards as our largest cost is fixed for each year and does not fluctuate with changes in number of users.

● Cost of revenue related to advertising decreased by JPY4,952 thousand ($33 thousand) reflecting the lower direct costs associated with the lower corresponding revenue.

● Cost of revenue related to outsourcing business, which mainly consists of personnel costs, increased by JPY177,609 thousand ($1,181 thousand) as the revenue increased in the fiscal year ended May 31, 2024.

● Cost of revenue related to travel business decreased by JPY43,856 thousand (292 thousand) reflecting the lower direct costs associated with the lower corresponding revenue.

*Gross Profit/(Loss)*

 

As a result of the foregoing, the gross profit was JPY665,451 thousand ($4,425 thousand) during the fiscal year ended May 31, 2024, compared to JPY983,048 thousand ($6,536 thousand) during the fiscal year ended May 31, 2023.

● The gross profit from mobile network service was JPY494,683 thousand ($3,289 thousand) during the fiscal year ended May 31, 2024. The gross profit margin decreased from 58% in the fiscal year ended May 31, 2023 to 47% in the fiscal year ended May 31, 2024 as the majority of its cost of revenue was fixed costs and did not fluctuate with the decreased revenue.

● The gross loss from advertising was JPY5,791 thousand ($39 thousand) during the fiscal year ended May 31, 2024. The gross loss margin remained relatively at the same level, from (8%) in the fiscal year ended May 31, 2023 to (7%) in the fiscal year ended May 31, 2024.

● The gross profit from outsourcing business was JPY40,281 thousand ($268 thousand) during the fiscal year ended May 31, 2024. The gross profit margin decreased from 36% in the fiscal year ended May 31, 2023 to 15% in the fiscal year ended May 31, 2024 as the outsourcing business was not fully launched yet.

● The gross profit from travel business was JPY117,920 thousand ($784 thousand) during the fiscal year ended May 31, 2024. The gross profit margin increased from 70% in the fiscal year ended May 31, 2023 to 83% in the fiscal year ended May 31, 2024 due to the lower costs.

*SG&A Expenses*

 

SG&A expenses increased by JPY35,190 thousand ($224 thousand), or 6.3% year-over-year, to JPY596,247 thousand ($3,793 thousand) primarily due to:

● an increase in payroll costs due to an increase in headcount and an increase in directors' compensations; and

● an increase in advertising expenses due to the active promotions for outsourcing business.

The increase was partially offset by a decrease in incentives paid to franchise stores and distributors due to the decrease in sales from mobile network service.

*Other Income (Expenses), net*

 

Other expenses increased by JPY220 thousand ($2 thousand), or 26.5% year-over-year, to JPY1,050 thousand ($7 thousand), primarily due an increase in interests on bonds.

*Net Income*

 

As a result of the foregoing, the net income was JPY40,278 thousand ($256 thousand) during the fiscal year ended May 31, 2024, compared to JPY291,724 thousand ($1,857 thousand) during the fiscal year ended May 31, 2023.

**Cash Flows/Liquidity**

**Cash Flows for the Six Months Ended November 30, 2024 and 2023**

As of November 30, 2024 and May 31, 2024, we had cash of JPY309,688 ($2,059 thousand) and JPY365,017 ($2,427 thousand), respectively. Liquidity is a measure of our ability to meet potential cash requirements. We generally fund our operations with cash flows from operations, and, when needed, borrowing from financial institutions. We expect that our cash and cash equivalents will be sufficient to fund our operating expenses and cash obligations for at least the next 12 months, although our ability to continue as a going concern depends upon our ability to attract and retain revenue generating customers, acquire new customers, and secure additional financing.

(in thousands)

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended**<br> **November 30,** | **For the Six Months Ended**<br> **November 30,** |
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | ¥29081 | ¥33595 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 3355 | 3566 |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains | (3570) |  |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable | (28346) | 68386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in inventories | 4987 | (13608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other receivable | (22199) | 280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in income taxes receivable | (18066) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in accounts payable | (659) | (47040) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accrued expenses | 8902 | 11668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in contract liabilities | (14851) | 2414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in advanced receipts | 3500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in consumption tax receivable | (5961) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in deferred tax liabilities | 15757 | 7912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in income taxes payable | 47391 | (88280) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in accrued consumption taxes | (5244) | (40589) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | (687) | (407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) operating activities | 13390 | (62103 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (14895) | (1679) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from short-term investment | 13570 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment received on short-term loans receivable - related party | 40976 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of short-term loans receivable | - | (20180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) investing activities | 39651 | (21859 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments for long-term loans | (5004) | (5004) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of bonds | (9655) | (9558) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of listing expenses | (93711) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows (used in) financing activities | (108370) | (14562 |
| Net (decrease) in cash and cash equivalents | (55329) | (98524 |
| Cash and cash equivalents at the beginning of period | 365017 | 517101 |
| Cash and cash equivalents at the end of period | ¥309688 | ¥418577 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| Cash paid for interest | ¥284 | ¥321 |
| Cash paid for taxes | 8549 | 107036 |
| Cash refund for taxes | ¥48478 | ¥- |

---

 ****

***Operating Activities***

Net cash generated from operating activities increased from cash outflow of JPY62,103 ($413 thousand) during the six months ended November 30, 2023 to cash inflow of JPY13,390 ($89 thousand) during the six months ended November 30, 2024. The increase was primarily due to the increase in income tax payable and accrued consumption taxes at November 30, 2024.

***Investing Activities***

 ****

Net cash provided by investing activities increased from cash outflow of JPY21,859 thousand ($145 thousand) during the six months ended November 30, 2023 to cash inflow of JPY39,651 thousand ($264 thousand) during the six months ended November 30, 2024. The increase was primarily due to the payment received on a short-term loan receivable from a related party.

***Financing Activities***

 ****

Net cash used in financing activity increased from JPY14,562 thousand ($97 thousand) during the six months ended November 30, 2023 to JPY108,370 thousand ($720 thousand) during the six months ended November 30, 2024, mainly due to the payment of IPO related expenses.

**Cash Flows for the Fiscal Years Ended May 31, 2024 and 2023**

As of May 31, 2024 and 2023, we had cash of JPY365,017 ($2,427 thousand) and JPY517,101 ($3,438 thousand), respectively. Liquidity is a measure of our ability to meet potential cash requirements. We generally fund our operations with cash flows from operations, and, when needed, borrowing from financial institutions. We expect that our cash and cash equivalents will be sufficient to fund our operating expenses and cash obligations for at least the next 12 months, although our ability to continue as a going concern depends upon our ability to attract and retain revenue generating customers, acquire new customers, and secure additional financing.

(in thousands)

---

| | | |
|:---|:---|:---|
|  | **Fiscal Year Ended**<br> **May 31, 2024** | **Fiscal Year Ended**<br> **May 31, 2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | ¥40278 | ¥291724 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 6792 | 5500 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts receivable | 83438 | 34375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in inventories | (6034) | (3764) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in other receivable | (22390) | (860) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in income taxes receivable | (38635) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in accounts payable | (27097) | (53494) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accrued expenses | 18801 | 13598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in contract liabilities | 3597 | 12150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in income taxes payable | (116637) | 51064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in consumption tax payable | (29173) | 22375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in deferred tax liabilities | 8359 | (7464) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 3010 | (2882) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows (used in) provided by operating activities | (75691) | 362322 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (4488) | (62112) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments |  | (33863) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of short-term loans receivable |  | (800) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of short-term loans receivable - related party | (3324) | (29089) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows (used in) investing activities | (7812) | (125864) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments for long-term loans | (10008) | (10008) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of bonds |  | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of bonds | (19164) | (9515) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment for debt issuance costs |  | (2710) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of listing expenses | (39409) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows (used in) provided by financing activities | (68581) | 77767 |
| Net (decrease) increase in cash and cash equivalents | (152084) | 314225 |
| Cash and cash equivalents at the beginning of the fiscal year | 517101 | 202876 |
| Cash and cash equivalents at the end of the fiscal year | ¥365017 | ¥517101 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| Cash paid for interest | ¥624 | ¥510 |
| Cash paid for taxes | 175766 | 86692 |

---

***Operating Activities***

Net cash generated from operating activities decreased from cash inflow of JPY362,322 ($2,409 thousand) during the fiscal year ended May 31, 2023 to cash outflow of JPY75,691 ($503 thousand) during the fiscal year ended May 31, 2024. The decrease was primarily due to the decrease in net income in the fiscal year ended May 31, 2024.

***Investing Activities***

 ****

Net cash used in investing activities decreased from JPY125,864 thousand ($837 thousand) during the fiscal year ended May 31, 2023 to JPY7,812 thousand ($52 thousand) during the fiscal year ended May 31, 2024. The decrease was primarily due to the less amount spent on the acquisition of property and equipment and investments.

***Financing Activities***

 ****

Net cash provided by financing activity decreased from cash inflow of JPY77,767 thousand ($517 thousand) during the fiscal year ended May 31, 2023 to cash outflow of JPY68,581 thousand ($456 thousand) during the fiscal year ended May 31, 2024, mainly due the issuance of bonds in the fiscal year ended May 31, 2023.

**Contractual Obligations and Commitments**

As of November 30, 2024, we had total of JPY108,361 thousand ($720 thousand) contractual obligations for future payments.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of November, 30, 2024** | **As of November, 30, 2024** | **As of November, 30, 2024** | **As of November, 30, 2024** | **As of November, 30, 2024** |
| <br>**Yen in thousands** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** |
|  | **Total** | **Less than <br> 1 year** | **1 – 3 years** | **4 – 5 years** | **More than <br> 5 years** |
| Long-term debt | ¥23312 | ¥5004 | ¥18308 | ¥- | ¥- |
| Bonds | 58957 | 19455 | 39502 |  |  |
| Operating lease payments | 26092 | 9943 | 16149 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | ¥108361 | ¥34402 | ¥73959 | ¥- | ¥- |

---

As of May 31, 2024, we had total of JPY139,530 thousand ($928 thousand) contractual obligations for future payments.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of May 31, 2024** | **As of May 31, 2024** | **As of May 31, 2024** | **As of May 31, 2024** | **As of May 31, 2024** |
| <br>**Yen in thousands** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** | **Payments due by period:** |
|  | **Total** | **Less than <br> 1 year** | **1 – 3 years** | **4 – 5 years** | **More than <br> 5 years** |
| Long-term debt | ¥28316 | ¥10008 | ¥18308 | ¥— | ¥— |
| Bonds | 68612 | 19358 | 49254 |  |  |
| Operating lease payments | 42602 | 22697 | 19905 |  |  |
| &nbsp;&nbsp;&nbsp;**Total** | ¥139530 | ¥52063 | ¥87467 | ¥— | ¥— |

---

**Off-Balance Sheet Arrangements**

As of November 30, 2024 and May 31, 2024, we did not have any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

 

**Capital Expenditures**

Our capital expenditures primarily consist of acquisition of property and equipment.

During the six months ended November 30, 2024 and 2023, we spent JPY14,895 thousand ($99 thousand) and JPY1,679 thousand ($11 thousand), respectively, on acquisitions of property and equipment.

During the fiscal years ended May 31, 2024 and 2023, we spent JPY4,488 thousand ($29 thousand) and JPY95,975 thousand ($611 thousand), respectively, on acquisitions of property and equipment and nil and JPY33,863 thousand ($215 thousand), respectively, on acquisition of investments.

**Quantitative and Qualitative Disclosure About Market Risk**

***Foreign Currency Risk***

We transact our operating activities in Japan, and our cash generated from revenue is denominated in Japanese yen. Our expenses are generally denominated in Japanese yen. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities, and net investments in foreign operations, if we acquire any. We acknowledge the recent volatility of the U.S dollar but believe we are relatively insulated from foreign exchange risk, as most of our economical transactions are conducted within Japan and using Japanese yen.

***Inflation Risk***

 ****

Inflationary factors, such as increases in our operating expenses, may adversely affect our results of operations. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, an increase in the rate of inflation in the future may have an adverse effect on our levels of operating expenses as a percentage of revenue if we are unable to increase our prices to keep pace with these increased expenses.

***Interest Rate Risk***

 ****

As of May 31, 2024, we had cash and cash equivalents that consist of bank deposit. We did not have investment or other interest-earning instruments that carry a high degree of interest rate risk. We have not been exposed to, nor do we anticipate being exposed to, material risks due to changes in interest rates. A hypothetical 10% change in interest rates during any of the periods presented would not have had a material impact on our historical consolidated financial statements.

**Critical Accounting Policies and Estimates**

Our consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements and accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We have identified certain accounting policies that are significant to the preparation of our consolidated financial statements. These accounting policies are important for an understanding of our financial condition and results of operation. Critical accounting policies are those that are most important to the portrayal of our financial conditions and results of operations and require management's difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management's current judgments. While our significant accounting policies are more fully described in Note 2 to the consolidated financial statements included elsewhere in this prospectus, we believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our consolidated financial statements.

***Use of Estimates***

 

Significant accounting estimates reflected in our consolidated financial statements include inventories, long-lived assets, leases, asset retirement obligations, and deferred tax liabilities. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements.

The following critical accounting policies rely upon assumptions and estimates and were used in the preparation of our financial statements:

***Revenue Recognition***

The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). The core principle of ASC 606 is that the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The ASC 606 revenue recognition model consists of the following five steps:

&nbsp;&nbsp;&nbsp;&nbsp;(1) identifying a contract with a customer,

(2) identifying the performance obligations in the contract,

(3) determining the transaction price,

(4) allocating the transaction price to the performance obligations in the contract, and

(5) recognizing revenue when (or as) the entity satisfies a performance obligation.

For an arrangement to qualify as a contract, it must be probable that the Company will collect the consideration to which it is entitled for the goods or services to be transferred. Once the contract is determined to be within the scope of ASC 606, the Company assesses the promised goods or services in each contract and determines whether those are performance obligations and the related transaction price. The Company then recognizes the sale of goods based on the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied.

The Company recognizes revenue from mobile network service, sales of advertisement, outsourcing service, and travel business sales.

*Mobile network service segment*

*<u>Revenue from mobile network service</u>*

The Company provides flexible monthly mobile network plans to users for a full range of 4G LTE voice, texting, and data services covering all areas throughout Japan. Users can select plans with specified transferrable amounts of voice and data services or plans with only specified transferrable amounts of data and enter into the contracts with the Company. Revenue from mobile network service is recognized over time during the period the network services are provided to users, corresponding to the point at which the promised service is transferred to users and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to users. Cost of revenues primarily consists of fees for mobile network services from MVNEs.

Through the proprietary app, "PLAIO," the Company receives advertising fees from advertisers and uses them to reward customers who watched advertisements to lower their monthly fees for mobile network services. By watching a video advertisement with a length ranging from 30 seconds to around 60 seconds through PLAIO, customers can receive five points, with each point being used as 0.1 Japanese yen by the customers to deduct their monthly fees for the mobile network services. The Company defers revenue equivalent to the estimated service price of points earned by end users, which can be applied to reduce their monthly fees for the mobile network services as each point is earned. A corresponding liability is recorded as deferred revenue when each point is earned. This deferral is based on the estimated value of the mobile network services for which the reward is expected to be redeemed, net of estimated unredeemed points. Points generally expire when the mobile network service contracts are terminated. When a customer redeems an earned reward, we recognize revenue for the redeemed product and reduce the related deferred revenue.

*Advertising segment*

*<u>Revenue from sales of advertisement</u>*

The Company receives the advertising fees from advertisers based on the cost-per-action, such as the numbers of watching advertisements through PLAIO app, and uses them to reward users who watch advertisements through the Company's mobile network. Revenue from sales of advertisement is recognized at a point in time when the Company completes providing advertisements to users through the Company's mobile network, corresponding to the point at which the promised service is transferred to users and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to users. The Company recorded only intersegment cost of revenues.

Outsourcing service segment

*<u>Revenue from outsourcing service</u>*

The Company hires job seekers as our full-time employees and dispatches them to corporate customers as a staffing agency. Revenue from outsourcing services as a staffing agency is recognized over time during the period the human resources are provided to the corporate customers, corresponding to the point at which the promised service is transferred to the customers and the performance obligation is satisfied. In addition, the Company also serves as an intermediary who introduces job seekers to appropriate hirers based on job seekers' willingness, interests, personalities, experiences, requirements, and the hirers' needs. Revenue from outsourcing service as an intermediary is recognized at a point in time when a customer hires a job seeker introduced by the Company and after the period stipulated in the contract has elapsed, which is also the time when the promised service is transferred to customers and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to customers. Cost of revenues primarily consists of salaries and outsourcing expenses.

The Company also supports job seekers by providing them with a certain amount of living expenses to enable job seekers to focus on job searching. The nature of the support is short-term loans with no interests and the job seekers will repay the loans after they have been employed. Therefore, the Company records these advances as other receivables and reconciles other receivables when the jobseekers repay the Company. During the series of this transactions, the Company noted that there were no accounting issues related to revenue recognition.

*Travel business segment*

*<u>Revenue from travel business sales</u>*

The Company operates a travel business. Through cooperating with the Company's travel business partners, the Company operates a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans or hotel plus Shinkansen (Japanese bullet trains) ticket travel plans offered by the Company's partners. The Company charges its customers a monthly subscription fee. Revenue from travel business sales is recognized over time during the period the Company provides subscription services to subscribers that allow them to purchase travel plans through the Company's portal, which is the time when the promised service is transferred to subscribers and the performance obligation is satisfied. The Company determined that the Company is the principal in this arrangement since another party is not involved in providing services to subscribers. Cost of revenues primarily consists of fees for the Company's travel business partners.

***Inventories***

Inventories consist of merchandise, including smartphone-related products and cosmetic products. Estimates of the lower of cost and net realizable value of inventory are determined by comparing the actual cost of the inventory to the estimated selling prices in the ordinary course of business based on current market and economic conditions, less reasonably predictable costs of completion, disposal, and transportation of the inventory.

 ****

***Property and Equipment***

Property and equipment are stated at cost.

---

| | | |
|:---|:---|:---|
| | Useful life | Depreciation method |
| Buildings | 24-27 years | Straight-line method |
| Leasehold improvements | 10 years | Straight-line method |
| Vehicles | 2 years | Straight-line method |
| Tool, furniture, and fixtures | 3 years | Straight-line method |
| Land | Indefinite |  |

---

Maintenance and repairs are charged to expenses as incurred. Improvements of a major nature are capitalized. Construction in progress is not depreciated until ready for service at the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts, and any gains or losses are reflected in income.

The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment" ("ASC No. 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment is recognized by measuring the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment losses were recorded during the fiscal years ended May 31, 2024 and 2023.

**BUSINESS**

**Overview**

We conduct all of our operations through our subsidiary in Japan, Center Mobile Japan. Center Mobile Japan is a mobile connectivity and wireless communications services provider in Japan, offering a full range of 4G LTE voice, texting, and data services covering all areas throughout Japan. Our customers are attracted to our services because of our competitive prices, flexible monthly plans, the high quality and stability of our services, and our innovative business model that allows our customers to lower their monthly fees. We offer such services on a monthly basis for specified quantities of minutes or amounts of data selected in advance. In addition, we are, as of the date of this prospectus, one of the few mobile connectivity and wireless communications services providers in Japan operating an innovative business model that allows our customers to lower their monthly fees for our services by watching advertisements or playing games through our proprietary app, "PLAIO." Through this business model that incentivizes our customers to watch advertisements through PLAIO, we are able to receive advertising fees from advertisers and use them to reward those customers who watched advertisements in the form of "points," which may be used by them to lower their monthly fees for our mobile connectivity and wireless communications services.

As an MVNO, we provide mobile connectivity and wireless communications services in Japan by using the infrastructure and communication system of NTT Docomo, one of the largest Japanese MNOs in terms of subscription market share. To provide mobile connectivity and wireless communications services to our customers, we purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards from FreeBit, a Japanese MVNE that also purchases wholesale the wireless network infrastructure from NTT Docomo, and distribute the SIM cards to OEM Partners, retailers who distribute the SIM cards under their own brands, or to customers through our online store, directly-operated stores, franchise stores, and distributors under our name (the SIM Card Business).

Because we do not own or operate a physical network or relevant appliances and equipment, we are free from related capital expenditures and, therefore, are able to focus our resources on providing competitive prices for our services against MNOs. Furthermore, in addition to the monthly fees from our customers, we are also able to generate advertising revenue through operating our innovative business model. While it is common for other mobile connectivity and wireless communications services providers that operate diversified businesses to generate additional revenue by selling other services to existing customers for the mobile connectivity and wireless communications services, our innovative business model allows us to generate additional advertising revenue without the sales of other services, enabling two revenue streams from a single service. This unique dual revenue structure provides us with additional funds to provide high-quality and stable services by leasing sufficient bandwidth for mobile connectivity and wireless communications services from FreeBit yet at competitive prices to our customers.

As of November 30, 2024, we had entered into approximately 28,212 service agreements for our mobile connectivity and wireless communications services and our revenue generated from the SIM Card Business was approximately JPY555,309 thousand ($3,692 thousand), JPY1,060,404 thousand ($7,050 thousand) and JPY1,312,065 thousand ($8,723 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 53.4%, 67.1% and 74.5% of our total revenue for those periods, respectively.

We also operate the Internet Business. Under the Internet Business, we offer three types of communications services: the mobile router connectivity service, the home wireless communications service, and the home internet service. For the mobile router connectivity service and the home wireless communications service, we, as an MVNO, purchase wholesale SIM cards and mobile connectivity and wireless communications services and purchase applicable mobile routers wholesale from an MVNE and sell our wireless communications services to the customers through our retail channels; for the home internet service, we purchase internet access services and applicable home routers wholesale from an internet access service provider that purchases the optical fiber system and internet access services wholesale from telecom companies and sell our internet access services to customers through our retail channels.

As of November 30, 2024, we had entered into approximately 1,595 service agreements under the Internet Business, and our revenue generated from the Internet Business was approximately JPY47,230 thousand ($314 thousand), JPY44,485 thousand ($296 thousand) and JPY73,093 thousand ($486 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 4.5%, 2.8% and 4.6% of our total revenue for those periods, respectively.

In addition to the SIM Card Business and the Internet Business, we currently also operate the Outsourcing Business. Under the Outsourcing Business, we work as a staffing agency, and our goal and policy are to provide a more stable working environment and conditions for job seekers. Unlike most of the staffing agencies in Japan that only hire job seekers and dispatch them to their corporate clients without providing much training, leaving the training to such corporate clients, we hire job seekers as our full-time employees and provide basic training to help them fit into the workplaces and positions that we consider the best match for them based on their willingness, interests, personalities, experiences, requirements, and our corporate clients' needs before dispatching them to our corporate clients. We also focus on the welfare of our employees and, we believe, offer more competitive employment conditions compared to those of other staffing agencies in Japan. By doing so, we may provide a more stable working environment and conditions for job seekers, which benefits us in recruiting more talented and competent personnel to appeal to more corporate clients. For each dispatch, our corporate clients pay us a monthly dispatch fee, and we then pay our employees who are dispatched monthly salaries, transportation allowance, and incentive bonuses out of the dispatch fees. When our full-time employees are not dispatched to our corporate clients, they generally work at our office and assist in matters such as managing dispatched employees and acquiring new corporate clients.

In addition, for job seekers who do not intend to take the dispatch path, we provide the service of acting as an intermediary, introducing them to appropriate hirers based on job seekers' willingness, interests, personalities, experiences, requirements, and the hirers' needs. In particular, in some special cases of blue-collar job seekers, if they face financial difficulties before getting hired, we support them with a certain amount of living expenses for a certain period of time. By doing so, we expect to make our service appealing to more job seekers, enabling us to secure the source of job seekers. After the job seekers are hired, we charge the hirers referral fees no greater than 30% of the workers' estimated annual compensation package.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, our revenue generated from the Outsourcing Business was approximately JPY399,827 thousand (2,658 thousand), JPY264,865 thousand ($1,761 thousand) and JP73,408 thousand ($488 thousand), respectively, which accounted for 38.4%, 16.8% and 4.2% of our total revenue for those periods, respectively.

In addition to our SIM Card Business, Internet Business, and Outsourcing Business, we currently also operate Travel Business. Through cooperating with our travel business partners, we operate a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans and hotel plus Shinkansen (Japanese bullet trains) ticket travel plans. In most cases, our prices are lower than wholesale prices. While our prices may sometimes be slightly higher than the wholesale price, they are still lower than the official prices set by the hotels, airlines, and the Shinkansen company. We charge a monthly subscription fee of 2,530 Japanese yen (approximately $17). As of November 30, 2024, we had approximately 4,769 subscribers, and our revenue generated from the Travel Business was approximately JPY58,596 thousand ($390 thousand), JPY142,257 thousand ($946 thousand) and JPY229,812 thousand ($1,528 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 6.0%, 9.0% and 13.0% of our total revenue for those periods, respectively.

We operate our SIM Card Business, Internet Business, and Travel Business through Center Mobile Japan and operate our Outsourcing Business through Pay Storage, the wholly owned subsidiary of Center Mobile Japan. Both Center Mobile Japan and Pay Storage are based in Japan. Since investors will invest in Center Mobile Cayman, a holding company without substantial operations, our cash flows and our ability to meet our obligations depend on the cash flows of Center Mobile Japan and Pay Storage and the payment of funds by Center Mobile Japan and Pay Storage to us in the form of dividends, distributions or otherwise.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, our total revenue was JPY1,039,866 thousand (approximately $6,914 thousand), JPY1,583,214 thousand (approximately $10,526 thousand) and JPY1,760,423, thousand (approximately $11,704 thousand), respectively, and our net income was JPY29,081 thousand (approximately $193 thousand), JPY40,278 thousand (approximately $268 thousand) and JPY291,724 thousand (approximately $1,940 thousand), respectively.

**Competitive Strengths**

We believe the following competitive strengths are essential for our success and differentiate us from our competitors:

***Competitive price and an innovative business model***

As an MVNO that uses the infrastructure and communication system of an MNO and purchases wholesale mobile connectivity and wireless communications services from an MVNE, we can obtain bulk access to mobile connectivity and wireless communications services at wholesale rates. Since we do not own or operate a physical network or relevant appliances and equipment, we are free from related capital expenditures. Therefore, we are able to provide competitive prices for our services against MNOs.

In addition, through operating an innovative business model that incentivizes our customers to watch advertisements through our proprietary app, "PLAIO," we are able to receive advertising fees from advertisers and use them to reward those customers who watched advertisements to lower their monthly fees for our mobile connectivity and wireless communications services. By watching a video advertisement with a length ranging from 30 seconds to around 60 seconds through PLAIO, customers can receive five points, with each point being used as 0.1 Japanese yen by the customers to deduct their monthly fees for our mobile connectivity and wireless communications services.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, more than 20% of our customers at least partly deducted their monthly fees for our mobile connectivity and wireless communications services through our innovative business model. See "*—Innovative business model.*" As we strive to grow our business, we expect to further develop our innovative business model and increase advertising revenue. With such grown advertising revenue, we intend to provide more incentives to our customers, such as awarding more points for each video advertisement watched, to the extent that most of our customers can large-partially or even fully deduct their monthly fees.

***High quality and stability of our mobile connectivity and wireless communications services***

Pursuant to our service agreement with FreeBit, we are able to determine the bandwidth of the mobile connectivity and wireless communications services we purchase wholesale from FreeBit on a monthly basis. As the bandwidth determines how much data can be transferred at one time, the more bandwidth we can access from FreeBit, the more data our customers can send and receive at one time. As such, by monitoring the numbers of our customers and the aggregate data amounts they transfer and measuring the transfer speeds during the peak periods in specific areas on a daily basis, we may decide the bandwidth of the mobile connectivity and wireless communications services we need to purchase wholesale from FreeBit or to increase the bandwidth when necessary to ensure the high quality and stability of our services.

Thanks to the innovative business model we operate, in addition to the monthly fees we receive from our customers, we are also able to generate advertising revenue. While it is common for other mobile connectivity and wireless communications services providers that operate diversified businesses to generate additional revenue by selling other services to existing customers for the mobile connectivity and wireless communications services, our innovative business model allows us to generate additional advertising revenue without the sales of other services, enabling two revenue streams from a single service. This unique dual revenue structure provides us with additional funds to purchase wholesale sufficient bandwidth for mobile connectivity and wireless communications services from FreeBit, ensuring the high quality and stability of our services.

***Experienced management team with strong technical and operational expertise***

Our management team is comprised of highly skilled and dedicated professionals who have extensive multidisciplinary experience related to our businesses.

Our representative director and Chief Executive Officer, Mr. Yu Asano, has more than 10 years of experience in sales and has experience working as a manager at a company that provides temporary staffing services for two years.

Our founder and director, Mr. Tatsuya Nakagoshi, served as a representative director at a consulting company in Japan for eight years and a representative director at a design and system development and maintenance company.

Our director, Mr. Yuki Hayakawa, worked as a planner for five years at a trading house that resells apparels and interior goods online and via mail orders, where he was responsible for planning and execution of e-mail marketing and advertising distribution and deepened his knowledge in digital marketing, particularly e-mail marketing, and advertising. From April 2015 to March 2017, Mr. Hayakawa worked at a company providing smartphone and phoneline solutions for corporate customers, where he was responsible for corporate client sales. Mr. Hayakawa also has experience in online sales of original equipment manufacturer's products during his two years working as a partner at a retailer. While serving as our director, Mr. Hayakawa also currently works as a partner at a company that focuses on advertising agency management business.

Our director and Chief Technology Officer, Mr. Yoshiaki Izutsu, has more than 10 years of experience in system engineering and web design.

Our director, Mr. Yusuke Kanazawa, has more than 10 years of experience in e-commerce. From December 2015 to March 2019, Mr. Kanazawa also served as a representative director at a real estate company, where he developed his expertise in marketing, including product planning, landing page creation and improvement, advertisement placement, and optimization of advertisement effectiveness. While serving as our director, Mr. Kanazawa also works as a sole proprietor, operating his e-commerce website and providing consulting services relating to e-commerce website management.

Before joining us, our director and Chief Financial Officer, Mr. Kazuo Iseji, worked as a sole proprietor managing a restaurant in Osaka from April 2014 to May 2021, where he, in addition to general business operations, was also responsible for financial planning and management and accounting. In November 2011, Mr. Iseji passed Level 1 of the Official Business Skills Test in Bookkeeping, a test held by Chamber of Commerce and Industry of Japan, the knowledge of which is equivalent to college degree knowledge in commercial bookkeeping and accounting for large companies.

***We have developed nationwide retail channels and flexible expansion model***

As of the date of this prospectus, we have established nationwide retail channels in Japan, consisting of two directly-operated stores, 36 franchise stores (operated by 35 owners), 15 distributors, and five OEM Partners. With our existing retail channel, we are able to distribute our SIM cards and provide customer services to our customers throughout the country. During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, we entered into 28,212, 30,031 and 32,845 service agreements for our mobile connectivity and wireless communications services, respectively.

To further expand our retail channel, we provide appealing incentives to attract retailers who want to join our SIM Card Business. They enjoy the great flexibility to join as franchise stores, distributors, or OEM Partners based on their own conditions and needs. See "*—Retail Channels.*"

**Growth Strategies**

We intend to develop our business by implementing the following strategies:

***Continue to grow our SIM Card Business***

As smartphones have become one of the most used electronic devices in modern daily life, more and more consumers tend to use specific smartphone apps to obtain the information they need rather than using search engines or web browsers as they did in the past. For example, more consumers are using Amazon's or Walmart's app to shop instead of using their websites in web browsers. Therefore, we believe it is one of the most efficient and effective ways to understand and obtain big data regarding the consumers' life habits and what they are interested in by not only acquiring the web browsing history of the consumers but also collecting data like "when, how, and to what extent they are using their smartphones and when, how, and what smartphone apps they are using" because these will not be reflected in the consumers' web browsing history if they only use smartphone apps. In view of this, to further develop the business model in which we use a portion of our advertising revenue to benefit our customers with lower fees for our mobile connectivity and wireless communications services, we are currently cooperating with an external team to conduct research and we entered into a consulting agreement with a Japanese technology company that specializes in the development of big data technologies in September 2024 to give advice and guidance on the development of our big data technologies that allow us to collect and analyze, under our customers' prior consent, big data and information regarding our customers' lifestyle habits and interests. See "*—Intellectual Property—Our Big Data Technologies.*"

We plan to apply our big data technologies when we grow our customer base to the extent that we have at least 100,000 customers. With the implementation of our big data technologies under development in the future, we expect to be able to collect and analyze, under our customers' prior consent, big data and information regarding the lifestyle habits and interests of our customers (including those who use our SIM cards or our original smartphones (as described below)) not only from their web browsing history but also from the smartphone apps they use to maximize the effectiveness and efficiency of advertising by conducting highly accurate targeted advertising. We expect such targeted advertising to include, for example, displaying travel agencies' advertisements to offer special deals on travel plans for users who open travel apps frequently, delivering advertisements of newly released games to users who play game apps three times or more a week, and casting advertisements of appropriate products at the proper timing to the users according to their lifestyle habits and interests. We also plan to employ data we obtain from our water dispenser and original smartphones in developing our big data technologies. See "—*Expand into the fields of water dispenser business and develop our original smartphones*." As of the date of this prospectus, we have obtained two patents in Japan and are proceeding with the patent application in all Patent Cooperation Treaty contracting states in connection with our big data technologies that enable us to obtain big data from SIM communication logs and are preparing to submit certain patent applications in Japan and all Patent Cooperation Treaty contracting states for certain methods to apply big data to conduct effective and efficient advertising.

In addition, we plan to deliver advertisements in the format of push notifications on smartphones. In this case, our customers will be able to "watch" the advertisements by simply tapping the push notification, making it easier for them to earn points and for us to generate advertising revenue. As smartphones have become one of the most used electronic devices in modern daily life and we expect people to spend more time on them in the future, we believe being able to deliver advertisements directly through smartphones and, with the implementation of our big data technologies, at the most appropriate timing and with most appealing contents to our customers will substantially increase the click-through rate of the advertisements we deliver and maximize the effectiveness and efficiency of advertising, consequently attracting more advertisers and long-term advertising sponsors join our innovative business model as we believe it will be a useful platform for them to deliver their advertisements effectively and efficiently, and lead to more advertising revenue generated. With such grown advertising revenue, we intend to provide more incentives to our customers, such as awarding more points for each video advertisement watched, to the extent that more customers can fully deduct their monthly fees to attract more customers and broaden our customer base. Consequently, as we broaden our customer base, we will be able to attract more advertisers and long-term advertising sponsors, establishing a profitable cycle for our business. Ultimately, our goal is to mainly rely on the advertising revenue from advertisers and long-term advertising sponsors to provide our mobile connectivity and wireless communications services for free to our customers, with advertisements delivered and watched on a regular basis, just like YouTube and Facebook, making "using our mobile connectivity and wireless communications services is free" become a new common sense among the consumers in Japan.

In addition, we plan to focus more on the online store on our website that we opened in June 2021, where customers can choose monthly plans to subscribe to our mobile connectivity and wireless communications services anywhere and order SIM cards to be shipped to their addresses within Japan. By doing so, we could further expand our sales and provide our services to the customers who reside in areas where we have not yet operated physical stores.

In addition, the reason we currently provide our mobile connectivity and wireless communications services as an MVNO is the low demand for bandwidth from our limited customer base. Therefore, as we grow our customer base, the demand for bandwidth from our customer base may increase to a level that is economically and strategically proper for us to directly purchase wholesale the wireless network infrastructure from NTT Docomo or other major MNOs in Japan, such as KDDI Corporation (AU) and SoftBank Corp., as an MVNE.

***Increase our visibility and brand awareness by advertising***

 ****

We intend to increase our visibility and brand awareness by advertising, promoting our services and brand through social media platforms, and engaging with our existing and potential customers to receive real-time feedback on our services. We also anticipate that listing on Nasdaq would increase our visibility and brand awareness and thus benefit the growth of our customer base.

***Expand into the fields of water dispenser business and develop our original smartphones***

Besides continuing to grow our SIM Card Business, we also intend to expand into the fields of water dispenser business and develop our original smartphones. As of the date of this prospectus, we are cooperating with certain manufacturers to develop our own original smartphones and water dispensers equipped with Internet of Things functions ("IoT functions").

We are currently developing our original smartphones that, under our customers' prior consent, will allow us to collect big data and information regarding the users' lifestyle habits and interests, regardless of whether the smartphones are using our SIM card. In addition, under our customers' prior consent, our original smartphones will allow us to display advertisements to our customers at the time we schedule while they are using them. As these advertisements will be skippable, they will not interfere with the normal operations of smartphones. In this case, like watching commercials on television, our customers will be able to earn points by watching these advertisements while using our original smartphones without making efforts to use our proprietary app, "PLAIO."

In order to obtain smartphone user data, we plan to develop software which collects user logs when our original smartphones are operated. As of the date of this prospectus, we have confirmed with a third-party smartphone application developer on the types of communication logs we can obtain from smartphone usage and have received the samples of these logs. We are currently in the conceptualization stage, evaluating what can be inferred and analyzed by using these sample logs. We plan to complete the development of the software necessary for acquiring and transferring logs for the further development of our big data technologies in May or June of 2025.

For the water dispenser business, we are currently planning to develop our original water dispensers equipped with IoT functions. With IoT functions, our water dispensers, under the users' prior consent, are capable of recording and collecting data on users' lifestyle habits, such as their health habits and usual time periods at home. Through the sales of our original IoT water dispensers, we will be able to reach target customers different from those in the SIM Card Business and collect big data that we were unable to obtain before. For example, it will be possible for us to know users' usual time periods at home, leading to further understanding of their lifestyles. In addition, as big data regarding users' usual time periods at home are valuable data for companies such as home security companies and delivery companies, we will be able to leverage these big data to develop business collaboration relationships with them, bring us more business opportunities as well as providing a more convenient lifestyle for our users. Furthermore, as our original IoT water dispensers are equipped with powdered milk mode to make formula milk for infants, sterilized water mode, and hot water mode, we could reach and further understand the lifestyles of young couples with infants in their houses and people who may care more about their health. Since our original IoT water dispensers are also equipped with a function for users to create personal accounts to record their water consumption, if each user creates a personal account, we would be able to learn the number of people in each household.

In order to obtain consumer data from IoT water dispensers, we plan to develop software which collects user logs when the dispensers are operated. As of the date of this prospectus, we are in the process of determining the types of data and logs to be collected through the water dispenser, the methods for acquisition, and the technical specifications required for such data collection. Additionally, we have consulted with a third-party water dispenser manufacturer to confirm the types of logs that can be obtained and the technology necessary to facilitate their collection.

In addition, by reaching these new target customers, we will be able to expand the promotion of our mobile connectivity and wireless communications services to different customer groups, expecting to further broaden our customer base. On the other hand, we may also promote our original IoT water dispensers to customers coming for our mobile connectivity and wireless communications services through our retail channels. As such, we expect this strategy will benefit both our water dispenser business and our SIM Card Business.

We plan to start reselling our water dispensers in the spring or summer of 2025 and our original smartphone by the end of 2025 or the beginning of 2026. We intend to incorporate additional data collected from the users of our original smartphones and IoT water dispensers to develop big data technologies that we, cooperating with an external team and a Japanese technology company that specializes in the development of big data technologies, are currently researching and developing to conduct a further accurate analysis that would enable us to display appropriate and personalized advertisements to our customers more efficiently. See "—*Intellectual Property—Our Big Data Technologies*." By implementing this strategy, we expect to advertise more efficiently and effectively to attract more advertisers and long-term advertising sponsors and eventually increase our advertising revenue. Furthermore, with such increased advertising revenue, we intend to provide more incentives, such as awarding more points for each video advertisement watched, to attract more customers and broaden our customer base. Consequently, we will be able to attract more advertisers and long-term advertising sponsors, establishing a profitable cycle for our business.

**Our Business**

***SIM Card Business***

 ****

As an MVNO, we provide our mobile connectivity and wireless communications services in Japan by using the infrastructure and communication system of NTT Docomo, a leading Japanese MNO. To provide our mobile connectivity and wireless communications services to our customers, we purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards from FreeBit, a Japanese MVNE that also purchases wholesale the wireless network infrastructure from NTT Docomo, and distribute the SIM cards to OEM Partners, retailers who distribute the SIM cards under their own brands, or to the customers through our online store, directly-operated stores, franchise stores, and distributors under our name.

*Flexible monthly plans*

 

We provide flexible monthly plans to our customers for a full range of 4G LTE voice, texting, and data services covering all areas throughout Japan. Customers can select plans with specified transferable amounts of voice plus data or plans with only specified transferable amounts of data.

The tables below illustrate the monthly plans we provide.

<u>Voice plus Data Plans</u>

---

| | |
|:---|:---|
| **Transferable Amounts** | **Monthly Fees** |
| 3 GB | 1,408 Japanese yen (Approximately $9) |
| 12 GB | 1,958 Japanese yen (Approximately $13) |
| 20 GB | 2,728 Japanese yen (Approximately $18) |
| 50 GB | 4,378 Japanese yen (Approximately $29) |

---

<u>Data Plans</u>

---

| | |
|:---|:---|
| **Transferable Amounts** | **Monthly Fees** |
| 3 GB | 1,298 Japanese yen (Approximately $9) |
| 12 GB | 1,848 Japanese yen (Approximately $12) |
| 20 GB | 2,508 Japanese yen (Approximately $17) |
| 50 GB | 4,158 Japanese yen (Approximately $28) |

---

<u>Data plus Unlimited Voice Plans</u>

---

| | |
|:---|:---|
| **Transferable Amounts** | **Monthly Fees** |
| 3 GB + Unlimited Voice Service for 24 hours | 3,278 Japanese yen (Approximately $22) |
| 20 GB + Unlimited Voice Service for 24 hours | 4,070 Japanese yen (Approximately $27) |
| 20 GB + Unlimited Voice Service for 10 minutes | 3,300 Japanese yen (Approximately $22) |
| 20 GB + Unlimited Voice Service for 5 minutes | 2,970 Japanese yen (Approximately $20) |
| 50 GB + Unlimited Voice Service for 24 hours | 5,478 Japanese yen (Approximately $36) |

---

*Innovative business model*

One of the attractions of our mobile connectivity and wireless communications services is that we operate an innovative business model that allows our customers to lower their monthly fees for our services by watching advertisements or playing games through our proprietary app, "PLAIO." Through operating this innovative business model that incentivizes our customers to watch advertisements through our proprietary app, "PLAIO," we are able to receive the advertising fees from advertisers and use them to reward those customers who watch advertisements.

By watching a video advertisement with a length ranging from 30 seconds to around 60 seconds through PLAIO, customers can receive five points. Customers may also watch a video advertisement that is skippable after five seconds to get the chance to play a "Gacha Game," which will give them an opportunity to earn points ranging from 10 to 10,000 or other awards such as extra transferrable amounts of data. With the points obtained through watching video advertisements or the "Gacha Game," a customer may choose to challenge the "Rock Paper Scissors" game with the system up to five times, having the chance to double the points obtained for each time he/she wins, but also bearing the risk to lose all the points obtained if he/she loses once.

![](formf1_012.jpg)

Watching a video advertisement to get five points, and with the points obtained through watching video advertisements, customers may choose to challenge the "Rock Paper Scissors" game to double the points obtained.

![](formf1_013.jpg)

With the points obtained through watching video advertisements or the "Gacha Game," customers may choose to challenge the "Rock Paper Scissors" game to double the points obtained.

In addition to video advertisements and games, there are other advertisements posted on our website that allow customers to earn points by signing up for those advertised services or downloading those advertised apps.

Each point may be used as 0.1 Japanese yen by the customers to deduct their monthly fees for our mobile connectivity and wireless communications services. The amount of points that could be obtained is unlimited and has no expiration date, which means it is possible for a customer to earn more points than the required amount to fully deduct his/her monthly fees, and the remaining points could be carried over to the next month after the monthly fees are fully deducted.

During the six months ended November 30, 2024, among the 151,593 payment cycles (12 months in a fiscal year times the number of customers, the "Payment Cycles"), monthly fees for our mobile connectivity and wireless communications services of 6,384 (approximately 4.2%), 19,714 (approximately 13%), and 36,332 (approximately 24%) Payment Cycles were fully, half, and partly deducted, respectively. During the fiscal year ended May 31, 2024, among the 316,467 payment cycles, monthly fees for our mobile connectivity and wireless communications services of 13,835 (approximately 4.4%), 27,273 (approximately 8.6%), and 83,219 (approximately 26.3%) Payment Cycles were fully, half, and partly deducted, respectively. During the fiscal year ended May 31, 2023, among the 335,023 Payment Cycles, monthly fees for our mobile connectivity and wireless communications services of 9,992 (approximately 3.0%), 23,467 (approximately 7.0%), and 77,720 (approximately 23.2%) Payment Cycles were fully, half, and partly deducted, respectively.

Through the advertising fees we receive from the advertisers, we are able to use them to reward those customers who watch advertisements, as the more video advertisements are watched by them, the more advertising fees we can receive from the advertisers. As of the date of this prospectus and for the past two fiscal years, we have been working with FourM, a Japanese media growth company, to maintain the operation of this business model. Pursuant to the application license agreement we entered into with FourM on October 31, 2022, FourM is responsible for attracting and negotiating with the advertisers and managing the advertisements displayed in PLAIO. Generally, FourM ensures the advertisements of those paying the highest advertising fees are shown to the customers. As a reward, FourM is allowed to keep a certain portion of the advertising fees collected from the advertisers. For the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, we received an aggregate of JPY36,771 thousand ($244 thousand), JPY79,224 thousand ($527 thousand) and JPY83,625 thousand ($556 thousand) advertising fees, respectively.

The material terms stipulated in the application license agreement are as follows:

*<u>Obligations and Rights</u>*

 

FourM is authorized to manage all the matters regarding the advertisements displayed or to be displayed in PLAIO, including attracting and negotiating with advertisers, selecting advertisements, and collecting customer data.

By the end of each month, FourM is allowed to keep a certain portion of the advertising fees it collected from the advertisers as the reward and is required to pay us the rest of the advertising fees.

*<u>Intellectual Property Rights</u>*

 

With our prior consent, FourM may repair or modify PLAIO. However, we have all the rights, including copyrights, with respect to the repaired or modified parts of PLAIO, whether or not the repair or modification is made during the effective term of the application license agreement.

*<u>Term</u>*

 

The application license agreement is effective for three months commencing November 1, 2022, and is automatically extended for successive three-month terms if neither we nor FourM delivers notice of termination at least one month prior to the expiration date of the application license agreement.

As of the date of this prospectus, the application license agreement has been continuously extended since January 31, 2023.

*<u>Termination</u>*

 

Both we and FourM may immediately terminate the application license agreement without notice if any of the following events, among other things, occurs to the other party:

&nbsp;&nbsp;&nbsp;&nbsp;(1) If any party breaches the application license agreement, and the breach is not corrected within 14 days; and

(2) When any party is legally, administratively, or financially deemed impossible or difficult to continue the application license agreement.

The following diagram describes our innovative business model.

![](formf1_014.jpg)

*Our Supplier*

As of the date of this prospectus, for the six months ended November 30, 2024 and for the fiscal years ended May 31, 2024 and 2023, we provide our mobile connectivity and wireless communications services in Japan by leasing mobile connectivity and wireless communications services and applicable SIM cards from FreeBit.

While we do not enter into a long-term service agreement with FreeBit, our service agreement has been automatically renewed every year since 2022. It is our mutual understanding that we will continue to purchase wholesale mobile connectivity and wireless communications services and applicable SIM cards from FreeBit for a long-term period to provide continuous services to our existing customers. See "*Risk Factors—Risks Relating to Our Business—Our dependence on FreeBit's mobile connectivity and wireless communications services and NTT Docomo's wireless network infrastructure could prevent us from continuously providing our services to our customers, which could result in decreased sales and revenue and loss of market share.*"

The material terms stipulated in the service agreement are as follows:

*<u>Obligations and Rights</u>*

 

We have agreed to purchase wholesale mobile connectivity and wireless communications services (the "Services") and applicable SIM cards from FreeBit for a minimum period of one year. The details of the Services, including the amount of the bandwidth, are stipulated in fixed-term orders to be placed to FreeBit every month. We have also agreed to purchase wholesale at least 10Mbps of the bandwidth each year.

During the effective period of the service agreement, FreeBit has agreed to provide us with any technical support related to the Services.

*Suspension of the Services*

 

FreeBit may choose to suspend the Services if we have any of the following breaches (the "Breach"):

&nbsp;&nbsp;&nbsp;&nbsp;(1) failure to pay the fees for the Services;

(2) violation of the law or public order and morals;

(3) a breach of the service agreement and such breach would cause or is possible to cause significant hindrance to FreeBit's business operation or equipment; or

(4) a breach of certain other clauses stipulated in the service agreement.

 

*<u>Use of Intellectual Property Rights</u>*

 

Without prior consent, neither party is allowed to use the other party's name, brands, trademarks, or other symbols.

*<u>Re-lease</u>*

 

With FreeBit's prior consent, we are allowed to distribute the Services to third parties. FreeBit may determine whether to issue its consent based on its own discretion after reviewing the information regarding the third party provided by us.

*<u>Term</u>*

 

The service agreement is effective for one year and is automatically extended for another year if mutual consent to end the service agreement is not reached by the parties at least three months prior to the expiration date of the service agreement.

As of the date of this prospectus, the service agreement has been automatically renewed every year since 2022.

*<u>Termination</u>*

 

FreeBit may terminate the service agreement if:

&nbsp;&nbsp;&nbsp;&nbsp;(1) FreeBit suspends the Services according to the service agreement, and the Breach that leads to such suspension is not corrected after a reasonable period;

(2) we breach the service agreement, and FreeBit deems such breach would cause significant hindrance to its business operation or equipment;

(3) we are legally, administratively, or financially deemed impossible or difficult to perform our obligations under the service agreement; or

(4) FreeBit deems that we are related to any anti-social forces.

We may terminate the service agreement at any time with a written notice delivered to FreeBit three months in advance. We may also terminate the service agreement if:

&nbsp;&nbsp;&nbsp;&nbsp;(1) FreeBit is bankrupt; or

(2) we deem that FreeBit is related to any anti-social forces.

Under the service agreement with FreeBit, we place a fixed-term order to FreeBit every month to purchase wholesale its mobile connectivity and wireless communications services. By doing so, we have great flexibility in determining the bandwidth of the mobile connectivity and wireless communications services we purchase wholesale from FreeBit on a monthly basis to ensure the high quality and stability of our services. As the bandwidth determines how much data can be transferred over time, the more bandwidth we purchase wholesale from FreeBit, the more data our customers can send and receive at one time. As such, by monitoring the numbers of our customers and the aggregate data amounts they transfer during peak periods and measuring the transfer speeds during the peak periods in specific areas on a daily basis, we determine the bandwidth of the mobile connectivity and wireless communications services we need to purchase wholesale from FreeBit and/or decide to purchase extra bandwidth for peak periods when necessary to ensure the high quality and stability of our services.

*Retail Channels*

 

We currently maintain four different retail channels to distribute our SIM cards and monthly plans for our mobile connectivity and wireless communications services to customers: directly-operated stores, franchise stores, distributors, and OEM Partners. During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, we entered into 28,212, 30,031 and 32,845 service agreements for our mobile connectivity and wireless communications services, respectively, and our revenue generated from the SIM Card Business was approximately JPY555,309 thousand ($3,692 thousand), JPY1,060,404 thousand ($7,050 thousand) and JPY1,312,065 thousand ($8,723 thousand), respectively, which accounted for 53.4%, 67.1% and 74.5% of our total revenue for those periods, respectively.

<u>OEM Partners</u>

As of the date of this prospectus, we have five OEM Partners re-leasing our SIM cards and mobile connectivity and wireless communications services in Osaka, Shizuoka, and Tokyo, respectively. We have been re-leasing most of the SIM cards and generating most of the revenue of the SIM card business through OEM Partners. For the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, the revenue generated from OEM Partners was JPY438,458 thousand ($2,915 thousand), JPY933,394 thousand ($6,206 thousand) and JPY1,226,554 thousand ($8,155 thousand), respectively, which accounted for 79%, 88% and 93.5% of our total revenue generated from the SIM card business for those periods.

We have entered into OEM service agreements stipulating similar terms with each of the OEM Partners.

The material terms stipulated in our OEM service agreements are as follows:

*<u>Obligations and Rights</u>*

 

Different from directly-operated stores, franchise stores, and distributors, OEM Partners are allowed to distribute our SIM cards and mobile connectivity and wireless communications services under their own brands and at the prices they set to customers, as long as they pay us an initial OEM fee ranging from 1 million Japanese yen (approximately $6,648) to 5 million Japanese yen (approximately $33,242), a monthly royalty of 50,000 Japanese yen (approximately $332) if OEM Partners provide customer services to their customers based on their own resources or a monthly royalty ranging from 100,000 Japanese yen (approximately $665) to 600,000 Japanese yen (approximately $3,989), depending on the number of the customers, if OEM Partners use our resources to do so, and fixed monthly license fees for each SIM card and monthly plan for our services they distribute.

*Suspension of Services*

 

We may choose to suspend our services if OEM Partners:

&nbsp;&nbsp;&nbsp;&nbsp;(1) fail to pay any fees under the OEM service agreement as scheduled;

(2) violate the law or public order and morals;

(3) breach the OEM service agreement and such breach would cause or is possible to cause significant hindrance to our services or equipment; or

(4) breach of other clauses similar to (1), (2), and (3).

 

*<u>Term</u>*

 

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, the OEM service agreements entered were generally for a period of one year. The OEM service agreement is automatically extended for one year if neither we nor the OEM Partner delivers notice of termination at least three months prior to the expiration date of the OEM service agreement.

*<u>Termination</u>*

 

We may terminate the OEM service agreement if the OEM Partner:

&nbsp;&nbsp;&nbsp;&nbsp;(1) violates relevant applicable laws or breaches the OEM service agreement and such violation or breach is not corrected within a reasonable period given by us;

(2) is legally, administratively, or financially deemed impossible or difficult to continue the OEM service agreement;

(3) does not follow our instructions;

(4) engages in acts that would seriously damage our reputation and credit; or

(5) triggers any other termination clauses in the OEM service agreement.

Nevertheless, each party may terminate the OEM service agreement at any time with a written notice delivered to the other party three months in advance.

<u>Directly-Operated Stores</u>

We currently operate two directly-operated stores in Osaka, Japan. Each directly-operated store is generally staffed with one to two of our own employees to distribute the SIM cards and provide customer services to our customers. For the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, revenue generated from our directly-operated stores was JPY8,204 thousand ($55 thousand), JPY27,508 thousand ($183 thousand) and JPY17,448 thousand ($116 thousand), respectively, which accounted for 1.5%, 2.6% and 1.3% of our total revenue generated from the SIM card business for those periods, respectively.

![](formf1_015.jpg)

*Actual Photo of our directly-operated store in Umeda, Osaka*

<u>Franchise Stores</u>

As of the date of this prospectus, we have 36 franchise stores (operated by 35 owners) throughout Japan re-leasing SIM cards and providing customer services under our brand "Center Mobile." For the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, the revenue generated from our franchise stores was JPY14,552 thousand ($97 thousand), JPY28,294 thousand ($188 thousand) and JPY18,234 thousand ($121 thousand), respectively, which accounted for 2.6%, 2.7% and 1.4% of our total revenue generated from the SIM card business for those periods, respectively.

We have entered into franchise agreements stipulating similar terms with each of the franchise store owners.

The material terms stipulated in our franchise agreements are as follows:

*<u>Obligations and Rights</u>*

 

We generally charge a franchise fee ranging from 800,000 Japanese yen (approximately $5,319) to 1,800,000 Japanese yen (approximately $11,967), depending mainly on the negotiations with the franchise store owners. For those franchise store owners who do not intend to operate a physical franchise store, we charge a franchise fee ranging from 700,000 Japanese yen (approximately $4,654) to 1,800,000 Japanese yen (approximately $11,967). In addition, the franchise store owner is obliged to pay a monthly royalty of 50,000 Japanese yen (approximately $332) if the franchise store owner provides customer service to his/her customers based on his/her own resources or, in the event of a non-physical franchise store and its owner uses our resources to provides customer service, a monthly royalty ranging from 100,000 Japanese yen (approximately $665) to 600,000 Japanese yen (approximately $3,989), depending on the number of the customers.

In exchange, the franchise store owner is allowed to name his/her franchise store after our brand "Center Mobile," sell our mobile connectivity and wireless communications services to customers under our brand, as well as use certain of our intellectual property rights, such as know-how, business models, and business methods, for his/her operation. In addition, we conduct a mandatory training session for each franchise store's owner and staff before the commencement of its operations. We also provide instructions and advice regarding the management and operation of the stores and relevant sales techniques on a regular basis.

*<u>Incentives</u>*

 

For each SIM card and monthly plan for our mobile connectivity and wireless communications services distributed and resold by the franchise store, we pay 750 Japanese yen (approximately $5) to the franchise store owner every month until such customer terminates the subscription for our mobile connectivity and wireless communications services.

*<u>Territory and non-compete</u>*

 

We guarantee that no other franchise stores will be allowed to operate within a certain area of an existing franchise store. However, this guarantee would no longer be applicable if such an existing franchise store does not enter into more than 50 service agreements for our mobile connectivity and wireless communications services within 12 months after the entry of the franchise agreement.

The franchise store owner guarantees that he/she will not operate similar businesses within the same area of the franchise store without our prior written consent. Violation of this clause will result in a penalty fee of 1 million Japanese yen (approximately $6,648).

*<u>Term</u>*

 

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, the franchise agreements entered were generally for a period of one year. The franchise agreement is automatically extended for one year if neither we nor the franchise store owner delivers notice of termination at least three months prior to the expiration date of the franchise agreement.

*<u>Termination</u>*

 

Both we and the franchise store owner may immediately terminate the franchise agreement without notice if any of the following events occurs to the other party:

&nbsp;&nbsp;&nbsp;&nbsp;(1) When any party is legally, administratively, or financially deemed impossible or difficult to continue the franchise agreement;

(2) A false declaration was made while entering into the franchise agreement;

(3) Violations of certain clauses stipulated in the franchise agreement, or the franchisee commits a material breach of the franchise agreement in connection with the relationship with a customer, and it is clearly impossible to continue the franchise agreement;

(4) The franchisee assigns its rights under the franchise agreement to a third party without our prior consent; and

(5) Our reputation is seriously damaged due to disputes between the franchisee and customers.

We may also terminate the franchise agreement if the franchise store owner breaches the franchise agreement or any other agreement entered between us that is necessary for the operation of the franchise store for any reason other than those set forth in the preceding paragraph, and the breach is not corrected within the reasonable period of time demanded by us.

![](formf1_016.jpg)

*Actual photos of our franchise stores in Northern Kyushu (left) and Honmachi, Osaka (righ*t)

<u>Distributors</u>

As of the date of this prospectus, we have 15 distributors re-leasing our SIM cards and providing customer services on our behalf in Japan, mainly in the Kansai and the Kanto areas. The distributors basically have similar obligations and rights to those of the franchise store owners, with some material differences as follows:

● Unlike franchise stores, distributors do not need to pay an entry fee;

● We do not provide regular instructions and advice regarding the management and operation of the stores and relevant sales techniques to the distributors;

● The distributors are not allowed to name their store after our brand "Center Mobile;"

● There are no limitations for us to have directly-operated stores, franchise stores, or other distributors in the area; and

● The distributors receive less incentive payments for each service agreement for our mobile connectivity and wireless communications services they enter into, as compared to the franchise store owners.

For the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, the revenue generated from the distributors was JPY479 thousand ($3,185), JPY398 thousand ($2,652) and JPY1,033 thousand ($6,868, respectively), which accounted for 0.08%, 0.04% and 0.08% of our total revenue generated from the SIM card business for those periods, respectively.

 

***Internet Business***

 ****

We also operate our Internet Business to provide communications services other than those we provide under the SIM Card Business. Under the Internet Business, we offer three types of communications services: the mobile router connectivity service, the home wireless communications service, and the home internet service.

For the mobile router connectivity service and the home wireless communications service, we, as an MVNO, purchase wholesale SIM cards and mobile connectivity and wireless communications services and purchase applicable mobile routers wholesale from Network Consulting, a Japanese MVNE that purchases wholesale SIM cards and mobile connectivity and wireless communications services and purchases applicable mobile routers wholesale from UQ Communications Inc., a Japanese MNO, and sell our wireless communications services to the customers through our retail channels.

For the home internet service, we purchase internet access services and applicable home routers wholesale from NEXT BB, a Japanese internet access service provider that purchases the optical fiber system and internet access services wholesale from NTT East Corporation and NTT West Corporation, Japanese telecom companies, and sell our internet access services to customers through our retail channels.

As of November 30, 2024, we had entered into approximately 1,595 service agreements under the Internet Business, and our revenue generated from the Internet Business during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023 was approximately JPY47,230 thousand ($314 thousand), JPY44,485 thousand ($296 thousand) and JPY73,093 thousand ($486 thousand), respectively, which accounted for 4.5%, 2.8% and 4.6% of our total revenue for those periods, respectively.

***Outsourcing Business***

 ****

Our mission and policy for the Outsourcing Business are to provide a more stable working environment and conditions for job seekers. Unlike most of the staffing agencies in Japan that only hire job seekers and dispatch them to their corporate clients without providing much training, leaving the training to such corporate clients, we hire job seekers as our full-time employees and provide basic training to help them fit into the workplaces and positions that we consider the best match for them based on their willingness, interests, personalities, experiences, requirements, and our corporate clients' needs before dispatching them to our corporate clients. In addition, we focus on the welfare of our employees and, we believe, offer more competitive employment conditions compared to those of other staffing agencies in Japan. By doing so, we may provide a more stable working environment and conditions for job seekers, which would benefit us in recruiting more talented and competent personnel to appeal to more corporate clients to demand our support.

Our policy of hiring job seekers as our full-time employees benefits both the job seekers and us. For job seekers, they can:

● Have a stable income and benefits:

 Unlike working as a traditional dispatched employee who would have no income during the gap of dispatches, being hired as our employees, the workers will still be able to receive the same level of income and enjoy benefits, such as paid leave, insurance, pensions, and transportation allowance, even during such gap.

● Have a basic training and comprehensive career path:

 We provide basic training to help our workers fit into the workplaces and positions that we consider the best match for them based on their willingness, interests, personalities, experiences, requirements, and our corporate clients' needs. In addition, after the first dispatch, our workers may, with our assistance, choose to work at a similar type of position or job for the next dispatch, enabling them to accumulate professional experience and develop the skillset needed for the jobs.

● Have flexible working choices:

 If our workers intend to try different types of positions or jobs after the end of a dispatch, they are offered to the opportunity to consult with our coordinators during regular counseling. After the counseling, we match the workers with the new workplaces and positions that we consider the best fit for them based on their willingness, interests, personalities, experiences, requirements, and our corporate clients' needs.

For us, we can build long-term relationships with our workers to have a stable pool of competent and well-trained workers and use it as leverage to attract more corporate clients that demand our support.

*Business Model*

 

After hiring job seekers as our employees, we propose to them some workplaces and positions that we consider the best match for them based on their willingness, interests, personalities, experiences, requirements, and our corporate clients' needs, and dispatch them to the workplace and position they choose.

For each dispatch, our corporate clients pay us a certain dispatch fee every month, depending on the workplace and positions. We then pay our employees who are dispatched monthly salaries, transportation allowance, and incentive bonus out of the dispatch fees we have received from our corporate clients. When our full-time employees are not dispatched to our corporate clients, they generally work at our office and assist in matters such as managing dispatched employees and acquiring new corporate clients.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, we dispatched 31, 21 and zero workers to eight and zero corporate clients, respectively, and received aggregate dispatch fees of JPY73,876 thousand ($491 thousand), JPY87,398 thousand ($581 thousand) and nil, respectively.

In the event that our worker receives a job offer from our corporate client to work as its full-time employee, the worker may choose to resign from our Company and take the offer at his/her discretion. However, in this case, the corporate client is obliged to pay us a certain amount of referral commission, depending on the worker's first-year compensation package.

For job seekers who do not intend to take the dispatch path, we provide the service of acting as an intermediary, introducing them to appropriate hirers based on job seekers' willingness, interests, personalities, experiences, requirements, and the hirers' needs. In particular, in some special cases of blue-collar job seekers, if they face financial difficulties before getting hired, we support them with a certain amount of living expenses for a certain period of time. By doing so, we expect to make our service appealing to more job seekers, enabling us to secure the source of job seekers. After the job seekers are hired, we charge the hirers a certain amount of referral fees no greater than 30% of the workers' estimated annual compensation package. In addition, we have also entered into business cooperation agreements with certain employment agencies, pursuant to which these cooperating employment agencies and we have agreed to share the respective knowledge and hirers pool for the purpose of improving the efficiency of introducing each other's job seekers to appropriate hirers. Under these business cooperation agreements, if our job seekers are hired by the hirers that cooperating employment agencies referred, the cooperating employment agencies will charge the hirers a certain amount of referral fees, and we will receive a certain portion of them. On the other hand, if a cooperating employment agency's job seekers are hired by the hirers that were referred by us, then we will pay such a cooperating employment agency a certain portion of the referral fees that we charge the hirers. As of the date of this prospectus, we have entered into the business cooperation agreements with 15 employment agencies.

During the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, we introduced 913, 151 and zero job seekers to three and zero hirers, respectively, and received aggregate referral fees of JPY240,146 thousand ($1,597 thousand), JPY56,588 thousand ($376 thousand) and nil, respectively.

Furthermore, as we are expanding into the fields of water dispenser business and developing our original smartphones, we will need more personnel in our salesforce when we commence the sales of our water dispensers and original smartphones. Therefore, we are also preparing our employees with certain training necessary for them to work as salespersons when they are not dispatched, expecting them to contribute to the sales of our water dispensers and original smartphones.

*Corporate Clients*

 

As of November 30, 2024, we had 11 corporate clients that have demanded our support. Our top corporate client, PayPay, is a major Japanese company that operates the largest Japanese mobile payment app with 65 million users. With PayPay's large amount of demand for manpower, we have dispatched 14, 19 and zero of our workers, respectively, to PayPay to work at several different positions, mainly in sales, office support, and engineering departments, and received aggregate dispatch fees of JPY40,075 thousand ($266 thousand), JPY66,491 thousand ($442 thousand) and nil, respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023. Below is the summary of the basic worker dispatch agreement dated June 6, 2023 between us and PayPay.

*<u>Purpose</u>*

We have agreed to dispatch temporary workers employed by us to PayPay, and to have them engage in work for PayPay, under PayPay's direction and orders.

*<u>Dispatch fee</u>*

PayPay is required to pay the dispatch fee specified in the individual dispatch agreement to us as compensation for worker dispatch. We have agreed to calculate the fee monthly and issue an invoice, which PayPay must pay via bank transfer by the end of the month or the next business day if the due date falls on a bank holiday.

Overtime and holiday work are subject to additional charges: (i) a 25% premium for overtime and non-statutory holidays, (ii) a 35% premium for statutory holidays, and (iii) a further 25% late-night premium for work between 10 p.m. and 5 a.m., regardless of whether it is a workday or a holiday. For dispatch fees determined on a monthly basis, deviations from standard working hours will be handled per the individual dispatch agreement.

Dispatch fees are calculated to the nearest minute, and fractions of less than one yen are rounded down. However, the wages paid to the dispatched workers by us shall be paid in accordance with the provisions of Article 24 of the Labor Standards Act. Adjustments to the dispatch fee due to economic or operational changes may be made after mutual consultation. Worker wages will comply with the Labor Standards Act.

*<u>Damage compensation</u>*

In the event that the dispatched worker causes damage to PayPay or a third party through disobeying PayPay's instructions or various rules, or through intent or negligence, we agree to compensate for the damage. However, this does not apply in the event that the damage is caused by negligence in giving instructions to the dispatched worker or other reasons attributable to PayPay.

*<u>Term</u>*

The agreement is effective for one year and is automatically extended for another year if no party provides a prior written notice to the other party to terminate the agreement a month prior to the expiration date of the agreement.

As of the date of this prospectus, the agreement has been automatically renewed every year since 2023.

*<u>Termination</u>*

If either party falls under any of the following items, the other party may give notice to correct the situation and, if no correction is made within a reasonable period of time, may entirely or partially cancel the agreement.

(1) When there is a violation of the provisions of this contract or individual dispatch agreement; or

(2) When there is a violation of the Worker Dispatch Law or other related laws and regulations.

Either party may also entirely or partially terminate the agreement without any prior notice upon suspension of worker dispatch business license, suspension of transaction, and petition of seizure or bankruptcy, among others.

With the successful experience with PayPay, we intend to engage with more companies in Japan to provide our staffing services.

***Travel Business***

In addition to our SIM Card Business, Internet Business and Outsourcing Business, we currently also operate a travel business. Through cooperating with our travel business partners, we operate a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans or hotel plus Shinkansen (Japanese bullet trains) ticket travel plans offered by our partners. In most cases, our prices are lower than wholesale prices. While our prices may sometimes be slightly higher than the wholesale price, they are still lower than the official prices set by the hotels, airlines, and the Shinkansen company. We charge a monthly subscription fee of 2,530 Japanese yen (approximately $17). As of November 30, 2024, we had approximately 4,769 subscribers, and our revenue generated from the Travel Business was approximately JPY58,596 thousand ($390 thousand), JPY142,257 thousand ($946 thousand) and JPY229,812 thousand ($1,528 thousand), respectively, during the six months ended November 30, 2024 and the fiscal years ended May 31, 2024 and 2023, which accounted for 6.0%, 9.0% and 13.0% of our total revenue for those periods, respectively.

**Competition**

The MVNO market in Japan is highly competitive and fragmented. As of the date of this prospectus, we are competing with more than 30 companies that provide similar monthly plans for mobile connectivity and wireless communications services.

We believe we are well-positioned to effectively compete on the basis of the high quality and stability of our mobile connectivity and wireless communications services, our nationwide retail channels and flexible expansion model, and our competitive price and the innovative business model that we use a portion of our advertising revenue to benefit our customers with lower fees for our services. However, some of our current and potential competitors may have a longer operating history, better reputation and brand awareness, greater financial and other resources, stronger relationships with customers, and greater economies of scale than we do. Moreover, certain of our competitors are highly integrated service providers that are directly operated by MNOs or MVNEs, providing them with competitive advantages as these companies are not dependent on upstream suppliers.

The staffing agency market in Japan is highly competitive and fragmented. As of the date of this prospectus, there are more than 40,000 licensed staffing agencies across the country, and we are mainly competing with more than 3,000 staffing agencies in Osaka prefecture. Nevertheless, we believe we are well-positioned to effectively compete with our competitors because, unlike most of the staffing agencies in Japan that dispatch the job seekers to their corporate clients without providing much training, leaving the training to such corporate clients, we hire job seekers as our full-time employees and provide basic training to help them fit into the workplaces and positions that we consider the best match for them based on their willingness, interests, personalities, experiences, requirements, and our corporate clients' needs before dispatching them to our corporate clients. In addition, we focus on the welfare of our employees and, we believe, offer more competitive employment conditions compared to those of other staffing agencies in Japan. By doing so, we may provide a more stable working environment and conditions for job seekers, which would benefit us in recruiting more talented and competent personnel to appeal to more corporate clients to demand our support. See *"—Our Business — Outsourcing Business.*" However, some of our current and potential competitors may have a longer operating history, better reputation and brand awareness, greater financial and other resources, stronger relationships with corporate clients, and greater economies of scale than we do.

**Employees**

We had 119, 69, 30, and 12 full-time employees as of November 30, 2024 and May 31, 2024, 2023, and 2022, respectively. The following table sets forth the number of our full-time employees categorized by areas of operations as of November 30, 2024:

---

| | |
|:---|:---|
| **Function** | **Number** |
| Customer Services and Operations | 9 |
| Sales and Marketing | 11 |
| Human Resources | 3 |
| General and Administration | 7 |
| Technology | 10 |
| Outsourcing | 79 |
| Total | 119 |

---

We enter into employment agreements with our full-time employees. The employment agreements have an indefinite term and may be terminated by the employee with a 30-day advance notice. Dismissal of the employee by us is required to meet the following requirements: (i) the dismissal is objectively reasonable and socially acceptable; (ii) the dismissal is based on the grounds set forth in the labor regulations; (iii) the dismissal does not fall under any of the prohibited grounds stipulated by law; and (iv) a 30-day advance notice is given, or a dismissal allowance is paid in lieu of such notice. In addition, we enter into confidentiality agreements with our key employees upon employment with our Company.

In addition to our full-time employees, we had 23, 4, 12, and two contract workers as of November 30, 2024 and May 31, 2024, 2023, and 2022, respectively. Besides assisting our full-time employees, these contract workers are also responsible for general administration.

We believe that we maintain a good working relationship with our full-time and contract workers, and we have not experienced material labor disputes in the past. None of our employees is represented by a labor union.

**Insurance**

Other than the government-mandated social and health insurance, worker's accident compensation insurance, and comprehensive tenant insurance, insurance policies that cover any damages and losses of certain machinery, property (excluding cash), fixed assets, and facilities inside the premises we own and lease for the purpose of business operation deriving from fire, water leaks, and other events stipulated in the relevant insurance policies, we do not maintain any other insurance covering our directors' and officers' liability, properties, equipment, or employees. We believe that our insurance coverage is in line with industry practice.

**Property and Equipment**

As of the date of this prospectus, we lease our headquarters and our two directly-operated stores and own one employee dormitory and one rental property for investment purpose in Osaka, Japan. In addition, we own one piece of land and building in Makati, Philippines for investment purposes. A summary of our properties as of the date of this prospectus is shown below:

---

| | | | |
|:---|:---|:---|:---|
| **Location** | **Space**<br> **(in square feet)** | **Use** | **Lease Term** |
| Osaka, Japan | 785.12 | Headquarters | October 1, 2023 to September 30, 2025 (Renewable for every two years) |
| Osaka, Japan | 183 | One directly-operated store | August 1, 2022 to July 31, 2025 (Non-renewable) |
| Osaka, Japan | Not specified in the lease | One directly-operated store | September 1, 2024 to August 31, 2025 (Renewable for every one year |
| Osaka, Japan | 1,003.4 (Building)/10,254 (Land) | One employee dormitory | Owned |
| Osaka, Japan | 1240 | One rental property (Investment Purpose) | Owned |
| Makati, Philippines | 523.56 | One land and building (Investment Purpose) | Owned |

---

We believe that our existing facilities are sufficient for our near-term needs.

**Intellectual Property**

We regard our trademarks, patents, service marks, domain names, trade secrets, and similar intellectual property as critical to our success. We rely on a combination of copyright, patent and trademark law, and confidentiality agreements with employees, to protect our intellectual property rights. We also regularly monitor any infringement or misappropriation of our intellectual property rights.

As of the date of this prospectus, we have registered seven trademarks in Japan:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Trademark** | **Type of <br> Mark** | **List of Goods <br> and Services** | **Registration <br> Number** | **Registration <br> Date** | **Expiration <br> Date** |
| 1 |  | Picture | Class 9, Class 35, and Class 38 | 6460496 | October 22, 2021 | October 22, 2031 |
| 2 | コンシェルジュ広告 | Word | Class 35 | 6583035 | July 6, 2022 | July 6, 2032 |
| 3 | ![](formf1_018.jpg) | Picture | Class 35 and Class 42 | 6651527 | December 13, 2022 | December 13, 2032 |
| 4 | ![](formf1_019.jpg) | Picture | Class 9 | 6676042 | February 28, 2023 | February 28, 2033 |
| 5 | SNS mobile | Word | Class 38 and Class 42 | 6794534 | April 9, 2024 | April 9, 2034 |
| 6 | ![](formf1_020.jpg) | Picture | Class 11 | 6825337 | July 18, 2024 | July 18, 2034 |
| 7 | ![](formf1_021.jpg) | Picture | Class 35 | 6825455 | July 18, 2024 | July 18, 2034 |

---

The trademarks can generally be renewed every five or 10 years by filing a request for renewal and paying a renewal fee six months before the trademark right expires.

As of the date of this prospectus, we own two patents in Japan and are proceeding with a patent application for one of them in all Patent Cooperation Treaty contracting states and 16 domain names in Japan. Our business does not depend on those patents.

We currently operate an in-house technical department led by our director and chief technology officer, Mr. Yoshiaki Izutsu, with nine system engineers and three server engineers in Osaka, Japan, to develop new technologies and systems regarding our mobile connectivity and wireless communications services and other businesses.

***Our Big Data Technologies***

We plan to develop our own algorithm which employs unsupervised learning framework to classify patterns of the features in unlabeled user data. We plan to use personal data we obtain from our SIM Card Business, our water dispenser business, and our original smartphone business as training data for our big data technologies. See "—*Personal Data.*" As of the date of this prospectus, we have examined the types of data we can collect from water dispensers and original devices and how we can use such data.

In order to find a method to effectively collect and use big data from customers while protecting their privacy, we are currently cooperating with an external team to conduct research and develop and entered into a consulting agreement with a Japanese technology company that specializes in the development of big data technologies in September 2024 to give advice and guidance on the development of our big data technologies.

The material terms stipulated in the consulting agreement are as follows:

*<u>Obligations and Rights</u>*

 

The technology company agreed to give advice and guidance on (i) the development of our big data technologies that enable us to obtain big data from SIM communication logs; (ii) the development of technologies that enable us to obtain big data from communication logs through our original smartphones; and (iii) other matters related to (i) and (ii).

*<u>Intellectual Property Rights</u>*

 

All intellectual property rights of the inventions, devices, designs, know-how, or others created and arising from the performance of the consulting agreement belong exclusively to us. We may use and dispose of them at our own discretion.

*<u>Non-compete</u>*

 

Unless with our prior written consent, the technology company is not allowed to perform or provide the same or substantially similar services to our competitors, nor is it allowed to be hired by or serve as a director or officer of them.

*<u>Term</u>*

 

The consulting agreement is effective for four months, commencing September 1, 2024. While the consulting agreement will not be automatically extended, the parties may extend it based on mutual consent.

*<u>Termination</u>*

 

Both we and the technology company may immediately terminate the consulting agreement without notice if any of the following events occurs to the other party:

&nbsp;&nbsp;&nbsp;&nbsp;(1) when any party is legally, administratively, or financially deemed impossible or difficult to continue the consulting agreement;

(2) violations of the non-compete clause and other certain clauses stipulated in the consulting agreement;

(3) when any party breaches the consulting agreement, and the purpose of the consulting agreement is deemed difficult to achieve even though such breach is corrected; or

(4) the other party is seriously damaged.

Each party may also terminate the consulting agreement at any time based on its own discretion.

**Personal Data**

To provide SIM Card Business services, we are currently acquiring personal data from SIM Card Business users, including users' names, addresses, birth dates, email addresses, selected SIM card plan and amount of data, and, in case of corporate customers, the corporations to which the users belong.

To develop our big data technologies, we plan to collect and use personal data from SIM Card Business, water dispenser business, and original smartphone business, including but not limited to names, addresses, birth dates, email addresses and, in case of corporate customers, the corporations to which the users belong, from water dispenser business and original smartphone business users, the communication log obtained from SIM Card Business users, behavioral logs of our original devices' users (e.g., when and how long a certain user use an application on our original device), the data relating to the use of our water dispenser (e.g., the time and date and the amount of water withdrawn from the water dispenser), and certain personal information of our water dispenser users (e.g., the weight and height of the users and the users' family composition, if the users who voluntarily enter such information into an application relating to the use of our water dispensers).

As of the date of this prospectus, we have been obtaining personal data from SIM Card Business users, but we have not obtained any personal data through original device and water dispenser businesses yet.

We use the personal data obtained from users to train our big data technologies, develop and improve our products and services, and for our marketing and advertising purposes. Prior to acquiring their personal data, we specify the purposes for which the personal data will be used and obtain consent from our users. We do not sell personal data to third parties. We may share non-personally identifiable demographic information, such as age and gender, with third-party organizations under any signed confidentiality agreements for research purposes. This sharing is clearly disclosed in the consent form obtained from the customer.

The personal data is and will be stored in Amazon Web Services (AWS), a third-party cloud service provider. We encrypt file names when storing on the AWS. The terms of services offered by AWS provides that AWS will not access or use our contents stored on its server without our consent. AWS also promised that it will not access or use our contents for marketing or advertising purposes, and will not use, or extract any information from, our contents.

The collection, usage, and transfer of personal data in Japan is subject to Personal Information Protection Act of Japan. See "*Regulations—Personal Information Protection Act.*" If we are unable to comply with applicable laws and regulations, we may be subject to criminal liability as well as the issuance of cease-and-desist orders and public disclosure by the Japan Personal Information Protection Commission, materially affecting our corporate credibility, results of operations, financial conditions, and the trading price of our Ordinary Shares. See "*Risk Factors—Risks Relating to Our Business—Privacy concerns and laws or other domestic or foreign regulations may reduce the effectiveness of our products and services and could adversely affect our business,*" and "*Risk Factors—Risks Relating to Our Business—If we fail to keep, manage, or properly use customers' personal data, we could be subject to lawsuits, incur expenses associated with our server management system, or suffer damages to our reputation.*"

**Seasonality**

We have not experienced a significant impact on our business results due to seasonality. However, our business may become more seasonal in the future, and historical patterns in our business may not be a reliable indicator of future performance.

**Legal Proceedings**

From time to time, we may become a party to various legal or administrative proceedings arising in the ordinary course of our business, including actions with respect to intellectual property infringement, violation of third-party licenses or other rights, breaches of contract, and labor and employment claims. We are currently not a party to, and we are not aware of any threat of, any legal or administrative proceedings that, in the opinion of our management, are likely to have any material and adverse effect on our business, financial condition, cash flow, or results of operations.

**REGULATIONS**

Our business operations are subject to various governmental regulations in Japan. The principal regulations affecting our business operations are summarized below.

**Telecommunications Business Act**

Persons engaged in the business of telecommunications in Japan are subject to the Telecommunications Business Act of Japan. Our mobile connectivity and wireless communications services (including home wireless communication services, the same as below in this subsection) fall under the category of telecommunications businesses and are, therefore, subject to regulations under the Telecommunications Business Act, as discussed below.

A person who intends to operate a telecommunications business in Japan is required to register or file a notification before commencing the business. The Telecommunications Business Act defines the person who has registered or filed the notification as a "Telecommunications Carrier." Because MVNOs do not have their own telecommunications facilities and instead utilize those of wholesalers, notification, rather than registration, is generally sufficient. If an MVNO operates a telecommunications business without notification, the MVNO may be subject to imprisonment or fines.

A Telecommunications Carrier using Telecommunications Numbers, the numbers granted by the MIC to Telecommunications Carriers who own a network infrastructure, such as MNOs, which are necessary to provide certain telecommunications services, is generally required to prepare a Telecommunications Number Usage Plan. The plan outlines certain matters related to Telecommunications Numbers usage, such as the contents of the telecommunications services to be provided using the Telecommunications Number and a diagram of the telecommunications equipment necessary for the use of the Telecommunications Number, and requires certification from the MIC. However, a Telecommunications Carrier, such as MVNOs, that provides mobile connectivity and wireless communications services using Telecommunications Numbers granted to MNOs and not to itself, may prepare a Telecommunication Number Usage Plan identical to the standard Telecommunication Number Usage Plan prescribed and announced by the MIC, and such plan shall be deemed to be certified. The use of a Telecommunications Number without such a certified plan may result in fines.

When providing mobile connectivity and wireless communications services to consumers, Telecommunications Carriers are required to provide consumers with an outline of the terms and conditions of the services prior to the contract execution (a so-called "explanation of important matters") and to provide a document describing the contents of the contract without delay after the contract execution ("post-contract document"). If a Telecommunications Carrier fails to provide an explanation of important matters, it may be subject to a business improvement order from the MIC, and if it fails to provide the post-contract document, it may be subject to a fine.

If a Telecommunications Carrier offers mobile telephone terminal services or wireless internet services with a cancellation fee exceeding one month's basic usage fee, consumers may cancel the contract in writing within eight days of receiving the above post-contract document, regardless of the cancellation conditions stipulated in the contract. In the absence of the post-contract document, consumers may cancel the contract at any time.

MVNOs with more than 30,000 service subscriptions, or those with fewer than 30,000 service subscriptions but who also provide wholesale telecommunications services to other MVNOs, must file quarterly reports with the MIC on certain matters, including the status of their service subscriptions.

In addition, Telecommunications Carriers are generally required to obtain specific and clear consent from the parties concerned when acquiring or using communications secrets in the course of their business. Telecommunications Carriers are required to report to the MIC in the event of a breach of communications secrets.

When a Telecommunications Carrier sends a program to a user's terminal directing the terminal to transmit the user's stored information to an external party, the Telecommunications Carrier is required to notify or publicly announce in advance the type of information to be transmitted, the destination of the transmission, and the purpose of the transmission. In the event of a violation, the Telecommunications Carrier may be subject to a business improvement order issued by the MIC.

In the event that a Telecommunications Carrier engages a sales agent to act as an intermediary in connection with the execution of contract for mobile connection and wireless communications services with a user, the Telecommunications Carrier is required to implement necessary measures to ensure that the sale agent performs these services properly and reliably. Failure to fulfill this obligation may result in the Telecommunications Carrier being subject to a business improvement order issued by the MIC.

The Telecommunications Business Act also applies to the development of smartphones. Terminal equipment such as smartphones is required to bear an indication that it complies with technical standards under the Telecommunications Business Act to be connected with Telecommunications Carriers' telecommunications line facilities for use. Therefore, smartphones must be developed to comply with the technical standards set forth in the Act.

**Mobile Phone Misuse Prevention Act**

"Mobile Voice Communications Carrier," a Telecommunications Carrier that offers "Mobile Voice Communications Service" defined in the act below, must comply with the Mobile Phone Misuse Prevention Act of Japan (the Act on Identity Confirmation, etc. Performed by Mobile Voice Communications Carriers for their Subscribers, etc. and Prevention of Wrongful Use of Mobile Voice Communications Services). Under the act, Mobile Voice Communications Carriers are required to verify the identity of the party to whom services are provided by, for example, obtaining a driver's license, and to record the identity verification, and to keep such record for three years from the date of termination of the service contract. The MIC may request reports from, or conduct on-site inspections of, Mobile Voice Communications Carriers as necessary in relation to compliance with the act and may issue corrective orders in the event of violations of the act. Violations of such orders are subject to criminal penalties (imprisonment and/or fines). As a provider of Mobile Voice Communications Services, we are subject to the act.

**Youth Internet Access Law**

Telecommunications Carriers that provide "Mobile Phone Internet Access Service" to juveniles in Japan are subject to the Youth Internet Access Law of Japan (the Act on Establishment of Enhanced Environment for Youth's Safe and Secure Internet Use). Under the act, the Telecommunications Carrier providing the Mobile Phone Internet Access Service is required to verify whether a counterparty or user is a juvenile when entering into a service contract. If a juvenile is the counterparty or user of the service, the Telecommunications Carrier is required to make the use of filtering services that restrict the viewing of information that may seriously impair the healthy development of juveniles as a condition of the contract. We are subject to the act because we are a Mobile Phone Internet Access Service provider, where our customers or actual users may be a juvenile.

**Provider Liability Limitation Act**

In Japan, a person who relays telecommunications intended to be received by an unspecified number of persons is a "Specified Telecommunications Service Provider" subject to the Provider Liability Limitation Act of Japan (the Act on the Limitation of Liability for Damages of Specified Telecommunications Service Providers and the Right to Demand Disclosure of Identification Information of the Senders). Under the act, if it is clear that the rights of a third party have been infringed by telecommunications relayed by the Specified Telecommunications Service Provider and a claim is made by the infringed third party, the Specified Telecommunications Service Provider shall disclose the information of the sender of the telecommunications after hearing the opinion of the sender, to the extent that the Specified Telecommunications Service Provider has the information in its possession. We are conducting business as an internet access provider and thus are subject to the act as a Specified Telecommunications Service Provider.

**Radio Act**

The development of smartphones in Japan is subject to the Radio Act of Japan. A radio device, such as a smartphone, is subject to a blanket license under the Radio Act and must carry an indication stating that it complies with the technical standards set out in the Radio Act. A smartphone without such indication is not eligible for a blanket license and thus cannot be made available to users. Therefore, the development of our original smartphones is subject to this regulation.

**Act against Unjustifiable Premiums and Misleading Representations**

The Act against Unjustifiable Premiums and Misleading Representations of Japan (the "Act against Unjustifiable Premiums and Misleading Representation") prohibits the making of (i) misrepresentations of quality, (ii) misrepresentations of advantage, and (iii) other misrepresentations. In the event of a violation, an order to take measures may be imposed and an administrative monetary penalty order may also be imposed by the Japan Consumer Affairs Agency ("JCCA"). The JCCA will publicly announce the order, which will have a significant impact on the company's reputation. The administrative monetary penalty order is, in principle, an order to pay an amount equal to 3% of the sales related to the misrepresentation during the period subject to the penalty, which is determined by the period during which the misrepresentation was made and other factors. In addition, the amendment to the Act against Unjustifiable Premiums and Misleading Representation, effective as of October 1, 2024, establishes criminal penalties for misrepresentations of quality and misrepresentations of advantage. Misrepresentations may result in claims for non-conformity or misunderstanding, and users and consumer groups may seek rescission of contracts, refunds, and damages.

Misrepresentation of quality is an untrue representation of the quality of a product or service. Specifically, it refers to representations to consumers that the quality, standard, or other content of goods or services is significantly better than it actually is, or that the goods or services are significantly better than the same or similar goods or services offered by competitors, when that is not the case. In order to facilitate the detection by the administrative authority, the Act against Unjustifiable Premiums and Misleading Representation allows the JCCA to request a business operator to submit materials showing reasonable grounds to support its representations within a certain period of time, and if the business operator does not submit such materials, or if the materials do not show reasonable grounds, the JCCA may deem the representations misleading and issue an order.

A misrepresentation of advantage is an untrue representation with respect to the terms and conditions of a transaction for goods or services. In particular, it refers to representations that mislead consumers into believing that the price or other terms of goods or services are significantly more favorable to the consumers than they actually are, or than those of the same or similar goods or services offered by competitors, when that is not the case.

Other misrepresentations are identified by the JCCA through its public notices include the so-called "bait and switch" and "stealth marketing" regulations. The "bait and switch" rules regulate the use of representations to lure customers by, for example, offering favorable terms, although no preparations have been made to provide the promised services or offers, while the "stealth marketing" rules regulate the use of advertisements and other representations in such a way that consumers are not aware that the representations are presented for advertising purposes.

Lastly, as an MVNO providing services primarily to consumers, we are required to comply with the Act against Unjustifiable Premiums and Misleading Representation against Unjustifiable Premiums and Misleading Representations. For example, we advertise that by viewing advertisements, users can earn a certain number of points which can be used to lower our services' monthly fees. Such representations in advertisements relate to favorable terms of transactions and thus are subject to the regulations on misrepresentation of advantage. In addition, if we make advertisements about quality aspects of mobile telecommunications services, such as communication speed and ease of connection, such representations are subject to the regulations on misrepresentation of quality.

**Worker Dispatching Businesses Act**

A part of our Outsourcing Business, the staffing agency business under which we hire job seekers and dispatch them to workplaces and locations of our corporate clients, is subject to the Worker Dispatching Businesses Act of Japan (the Act on Securing the Proper Operation of Worker Dispatching Businesses and Protecting Dispatched Workers.) Under the Worker Dispatching Businesses Act, a person who intends to have its employees work under the direction and orders of a third party for the benefit of such third party (defined as a "Worker Dispatching Business") must obtain a license from the Minister of Health, Labor, and Welfare.

In addition to the license requirement, the Worker Dispatching Businesses Act imposes various regulations and restrictions to protect dispatched workers and contribute to employment stability. Under the Worker Dispatching Businesses Act, the period for which the corporate client may accept the same dispatched worker at the same workplace is generally up to three years, but the period may be extended if the dispatched worker is transferred to a different department at the same workplace (if the period is extended, the opinions of the majority labor union or a representative of a majority of employees at the workplace must be heard). The Worker Dispatching Businesses Act also prohibits the dispatch of workers for certain types of work, the dispatch of workers for day labor, and the dispatch of workers who have been employed by the same corporate client during the most recent one-year period. The Worker Dispatching Businesses Act also regulates the dispatch of workers within the group companies of the dispatching business operator by limiting the total number of working hours of all workers dispatched within the same group companies to no more than 80% of the total working number of hours of all dispatched workers of the dispatching business operator. In addition, the Worker Dispatching Businesses Act requires dispatching business operators to specify certain matters in contracts; to clearly explain certain matters to dispatched workers; to implement employment security measures, such as requiring direct employment by the client company; to provide education and training to dispatched workers; and to implement treatment improvement measures, such as equal and nondiscriminatory treatment. If a dispatching business operator violates regulations under the Worker Dispatching Businesses Act, it may be subject to administrative penalties, such as a corrective action order, suspension or revocation of its license, as well as criminal penalties, such as imprisonment and a fine.

**Employment Security Act**

Our Outsourcing Business, under which we act as an intermediary who introduces job seekers to employers, is subject to the Employment Security Act of Japan (the "Employment Security Act"). Under the Employment Security Act, anyone who arranges the establishment of an employment relationship between the employer and job seeker for fees ("Employment Placement Business Provider") must obtain a license from the Minister of Health, Labor, and Welfare.

In addition to the license requirement, the Employment Security Act imposes various regulations and restrictions to ensure employment security. The Employment Security Act generally prohibits an Employment Placement Business Provider from referring job seekers to certain occupations and charging job seekers any commission fees. Furthermore, certain restrictions apply to the types of fees that may be charged to employers. Any Employment Placement Business Provider violating the Employment Security Act may be subject to administrative sanctions, such as a corrective action order, public notice, or revocation of its license, as well as criminal sanctions, such as imprisonment and fines.

**Secondhand Goods Business Act**

Under the Secondhand Goods Business Act of Japan, a person who intends to engage in certain businesses related to secondhand goods, including the sale, purchase, or exchange of secondhand goods, must obtain a license from a public safety commission in a relevant prefecture. In addition to the license requirement, the act imposes regulations on secondhand goods dealers to prevent the sale and purchase of stolen goods and to facilitate the prompt recovery of such items. These regulations include the prohibition of name lending, the appointment of a manager for each place of business, the counterparty's identity verification, and the storage of certain information for each individual transaction. The violation of the act may result in investigations, order to implement certain measures or to suspend business by a prefectural public safety commission, and criminal penalties, such as fines and imprisonment. Since we also resell used smartphones, we are required to obtain a license and are subject to the regulations under the act.

**Personal Information Protection Act**

The Personal Information Protection Act of Japan regulates the collection, use, transfer, and storage of personal information by businesses that handle personal information. Under the act, personal information is defined as (i) information relating to an individual by which the individual can be identified, including information that enables the identification of the individual by reference to other readily available information, and (ii) individual identification code, which are certain codes specified under the act, including passport number, driver's license number, health insurance number, basic pension number, and data created from fingerprints, voice prints, DNA sequences, and appearance. The Personal Information Protection Act requires businesses that handle personal information to (a) specify the purposes for which personal information will be used in as much detail as possible, (b) inform customers or the public of such specified purposes when personal information is collected, and (c) not use personal information beyond what is necessary to achieve the specified purposes. In addition, the purposes of use may not be changed, unless the change is within a reasonable scope such that the new purposes of use can be reasonably related to the purposes of use before the change, and the new purposes of use must be notified to customers or disclosed to the public.

In principle, when transferring personal data (defined as personal information systematically organized in a database) to a third party (i.e., making personal data available to the third party), businesses are required to (a) obtain the prior consent from the identifiable individual, and (b) make and keep records of the recipient's name, address, and its representative's name, as well as the items of personal data transferred, the identifiable individual's name or ID, and the consent obtained from the identifiable individual. However, an exception to these requirements applies when personal data is provided (a) in connection with the entrustment of the handling of personal data (provision by entrustment), (b) as part of a business succession due to a merger, etc., or (c) to group companies in a manner that meets certain requirements. In order for the exemption with provision by entrustment to be available, (a) the entrustment must take place within the scope of the specified and notified or published purposes of use, (b) the entrusted party must use the entrusted personal data within the scope of the entrustment and may not use it for its own benefit or for the benefit of third parties or otherwise make it available to external parties, and (c) the entrusted party is prohibited from cross-referencing the entrusted personal data with personal data or relevant data independently acquired by the entrusted party or entrusted from other businesses. In addition, according to a guideline issued by the Japan Personal Information Protection Commission, in the case of businesses storing personal data in third-party cloud services, if the cloud service provider does not access or use the personal data, it can be deemed that the businesses do not transfer the personal data to the third-party cloud service provider (i.e., do not make the personal data available to the cloud server provider), and therefore the requirements for providing personal data to third parties, such as obtaining the prior consent of the identifiable person, do not apply . According to the guideline, the cloud service provider does not access or use the personal data if, for example, it is documented in contracts, etc., that the cloud service provider will not access or use the personal data stored on the server, and if access control is implemented appropriately. In many cloud storage services, the terms of service explicitly state that the cloud service provider will not access or use the data stored in the cloud storage, and access control is implemented. Based on this guideline, it is generally understood that uploading personal data to cloud storage services does not constitute transferring personal data to a third party regulated under the act.

When storing personal data, businesses must take necessary and adequate measures for the security control of personal data and must also exercise necessary and adequate supervision over their employees. Where a business entrusts the handling of personal data, it must exercise necessary and appropriate supervision over the entrusted party to ensure the security control of the personal data entrusted. If certain leakage, loss, or damage of personal data has occurred, a business must report the occurrence of the situation to the Personal Information Protection Commission and also notify the relevant identifiable person.

Violation of a relevant regulation under the Personal Information Protection Act may result in criminal fines and imprisonment, as well as the issuance of cease-and-desist orders and public disclosure by the Japan Personal Information Protection Commission.

**Consumer Contracts Act**

Under the Consumer Contracts Act of Japan, the liability of a business operator, including companies and sole proprietors, to a consumer for non-conformity cannot be excluded by any agreement between the business operator and the consumer. Since our services are offered to consumers, we are unable to exclude our liability for non-conformity.

**Labor Laws**

There are various labor regulations in Japan, including the Labor Standards Act, the Labor Contract Act, and the Industrial Safety and Health Act. The Labor Standards Act regulates, among other things, minimum standards and restrictions on working conditions, including working hours and wages. The Labor Contract Act regulates, among other things, restrictions on dismissal and layoffs, changes in working conditions, and disciplinary actions. The Industrial Safety and Health Act requires, among other things, the implementation of measures to ensure the safety and protect the health of employees. Violations of these labor regulations may result in criminal fines and imprisonment, as well as administrative guidance (non-binding guidance issued by an administrative agency requiring specific action or inaction) and public disclosure by a competent labor standards inspection authority (with respect to the violation of Labor Standards Act and the Industrial Safety and Health Act), in addition to claims for damages by employees in civil actions.

**MANAGEMENT**

The following sets forth information regarding members of our board of directors and executive officers as of the date of this prospectus.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| Yu Asano | 32 | Representative Director and Chief Executive Officer |
| Kazuo Iseji | 40 | Director and Chief Financial Officer |
| Tatsuya Nakagoshi | 35 | Founder and director |
| Yoshiaki Izutsu | 37 | Director and Chief Technology Officer |
| Shintaro Yamaguchi | 35 | Director |
| Yuki Hayakawa | 37 | Director |
| Yusuke Kanazawa | 36 | Director |
| Aya Hoshiko\* | 49 | Independent Director Nominee |
| Fumiaki Hayata\* | 46 | Independent Director Nominee |
| Yosuke Yamaguchi\* | 45 | Independent Director Nominee |

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\* We intend to appoint Aya Hoshiko, Fumiaki Hayata and Yosuke Yamaguchi as our independent directors, effective upon the SEC's declaration of effectiveness of the registration statement of which this prospectus forms a part.

**Mr. Yu Asano** has been our representative director and Chief Executive Officer since our inception in April 2025 and Center Mobile Japan's representative director and chief executive officer since December 2024. Mr. Asano has more than 10 years of experience in sales. Before becoming our representative director and Chief Executive Officer, he served as our director from June 2021 to December 2024. He started his career at TamaHome Co., Ltd., a construction and real estate company (TYO:1419), where he was responsible for selling custom-built homes from April 2014 to June 2018. From July 2018 to May 2020, he was a manager of the New Business Department at Y.W.C. Inc., a company providing temporary staffing services. From June 2020 to June 2021, he was a partner at Second Home LLC., a limited liability company providing sale agency and retailing services. Mr. Asano obtained a bachelor's degree in economics from Ritsumeikan University in Shiga, Japan in March 2014.

**Mr. Kazuo Iseji** has been our director and Chief Financial Officer since our inception in April 2025 and Center Mobile Japan's director and chief financial officer since June 2021. Before joining Center Mobile, Mr. Iseji was a sole proprietor managing a restaurant in Osaka from April 2014 to May 2021, where he was also responsible for financial planning and management and accounting. From March 2009 to March 2014, he worked at Ikeda Seisakusho Co., a precision instrument and machine parts manufacturer, where he was responsible for metal processing using NC equipment. Mr. Iseji passed Level 1 of the Official Business Skills Test in Bookkeeping, a test held by Chamber of Commerce and Industry of Japan, the knowledge of which is equivalent to college degree knowledge in commercial bookkeeping and accounting for large companies, in November 2011. Mr. Iseji graduated from Yodogawa Technical High School in March 2003.

**Mr. Tatsuya Nakagoshi** is our founder and has been our director since our inception in April 2025 and Center Mobile Japan's director since December 2024. He served as our representative director and Chief Executive Officer from June 2020 to December 2024. Before founding Center Mobile, Mr. Nakagoshi served as a representative director at Center Over Co., Ltd., a consulting company, from October 2014 to April 2022. He also served as a representative director at Maimo Co., Ltd., a design and system development and maintenance company, from June 2021 to April 2022. In March 2011, Mr. Nakagoshi graduated from the Faculty of Management at Kinki University in Osaka, Japan.

**Mr. Yoshiaki Izutsu** has been our director and Chief Technology Officer since our inception in April 2025 and Center Mobile Japan's director and chief technology officer since March 2022. From January 2013 to March 2022, Mr. Izutsu was a director of Anect Co., Ltd., a company providing system engineering and web production and development services, where he served as an engineer and designer. Mr. Izutsu obtained an advanced vocational diploma from HAL Osaka in March 2010.

**Mr. Shintaro Yamaguchi** has been our director since our inception in April 2025 and Center Mobile Japan's director since June 2021. Before joining Center Mobile, Mr. Yamaguchi was a sole proprietor managing an e-commerce website, reselling daily necessities, home appliances, and sundries, from May 2017 to May 2021. He also served as a chef at Gloria Co., Ltd., a restaurant management company, from May 2010 to August 2016 and at Honesty Co. Ltd. from October 2016 to April 2017. Mr. Yamaguchi graduated from Naniwa High School in Osaka in March 2007.

**Mr. Yuki Hayakawa** has been our director since our inception in April 2025 and Center Mobile Japan's director since June 2021. From April 2010 to March 2015, Mr. Hayakawa was a planner in the web planning and marketing departments of Nissen Co., Ltd., a trading house reselling apparels and interior goods online and via mail orders. Through the planning and execution of e-mail marketing and advertising distribution, Mr. Hayakawa has deepened his knowledge in digital marketing, particularly e-mail marketing, and advertising. From April 2015 to March 2017, Mr. Hayakawa was responsible for corporate client sales at Infinity Co., Ltd., a company providing smartphone and phoneline solutions for corporate customers. From April 2017 to March 2019, he was responsible for sales for both corporate and individual clients for electricity and gas products at Social Venture LLC, a trading company which resells gas and electricity products. Subsequently, he became a partner at Aliba LLC, a retailer, where he was responsible for online sales of original equipment manufacturer's products, from April 2020 to March 2022. He is also currently a partner at Delight LLC, a limited liability company focusing on advertising agency management business. Mr. Hayakawa graduated from Faculty of Business Administration at Ryukoku University in Kyoto, Japan, in March 2010.

**Mr. Yusuke Kanazawa** has been our director since our inception in April 2025 and Center Mobile Japan's director since March 2022. From September 2012 to August 2019, Mr. Kanazawa was a business manager at Hayashi Business Co., Ltd., an e-commerce company. At Hayashi Business Co., Ltd., Mr. Kanazawa developed his expertise in marketing, including product planning, landing page creation and improvement, advertisement placement, and optimization of advertisement effectiveness. From December 2015 to March 2019, he was a representative director at HappineStar Co., Ltd., a real estate company. Since September 2019, Mr. Kanazawa has been a sole proprietor operating his e-commerce website and provide consulting services relating to e-commerce website management. Mr. Kanazawa also has been serving as a representative director at Maimo Co., Ltd. and Center Over Co., Ltd. since June 2024. Mr. Kanazawa obtained a bachelor's degree in law from Kobe Gakuin University in March 2011.

**Ms. Aya Hoshiko** is our independent director nominee. Ms. Hoshiko is a founder and has been a representative director of Star Flores Co., Ltd., a Kumamoto-based consulting firm, since June 2016. Since June 2019, she has been a representative of ReESEL Association, a Japanese general incorporated association that promotes the use and manufacture of high-purity biodiesel fuel in Japan. Ms. Hoshiko has also been a corporate auditor at Unagi Nobori Co., Ltd., a company that manages Japanese eel restaurants in Kumamoto, Oita, and Okayama prefectures, since November 2023. Ms. Hoshiko obtained an associate degree in economics from Nakakyushu Junior College in Kumamoto, Japan, in April 1996.

**Mr. Fumiaki Hayata** is our independent director nominee and has been the non-full-time corporate auditor of Center Mobile Japan since March 2022. He founded Fumiaki Hayata Tax Accountant Office in September 2010 and has been a principal accountant since then. He became a registered tax accountant in Japan in March 2008 and has approximately 15 years of tax accountant experiences. Mr. Hayata graduated from Kyoto Prefectural Joyo High School in March 2006.

**Mr. Yosuke Yamaguchi** is our independent director nominee and has been the non-full-time corporate auditor of Center Mobile Japan since June 2022. He has been a registered lawyer in Japan since August 2007 and a registered tax accountant since May 2010. He served as a lawyer at Kitahama Partners from September 2007 to August 2016. He has been a founding partner at Iwatani, Muramoto & Yamaguchi Law Offices since August 2016. Mr. Yamaguchi obtained a Bachelor of Law from Doshisha University in Kyoto, Japan in March 2001.

**Relationships**

There is no family relationship among directors and officers. There is no arrangement or understanding among any of our directors or any other person under which our directors are appointed.

**Corporate Governance Practices**

We are a "foreign private issuer" under the federal securities laws of the United States and the Nasdaq listing standards. Under the federal securities laws of the United States, foreign private issuers are subject to different disclosure requirements than U.S.-domiciled public companies. We intend to take all actions necessary for us to maintain our status as a foreign private issuer under the applicable corporate governance requirements of the Sarbanes-Oxley Act, the Exchange Act and other applicable rules adopted by the SEC, and the Nasdaq listing standards. Under the SEC rules and the Nasdaq listing standards, a foreign private issuer is subject to less stringent corporate governance requirements. Subject to certain exceptions, the SEC and Nasdaq permit a foreign private issuer to follow its home country practice in lieu of their respective rules and listing standards. In general, our post-offering amended and restated articles of association, the Cayman Companies Act and the common law of the Cayman Islands govern our corporate affairs.

In particular, as a foreign private issuer, we will follow Cayman Islands law and corporate practice in lieu of the corporate governance provisions set out under Nasdaq Rule 5600, the requirement in Nasdaq Rule 5250(b)(3) to disclose third-party director and nominee compensation, and the requirement in Nasdaq Rule 5250(d) to distribute annual and interim reports. Of particular note, the following rules under Nasdaq Rule 5600 differ from Cayman Islands law requirements:

● Nasdaq Rule 5605(b)(1) requires that at least a majority of a listed company's board of directors be independent directors, and Nasdaq Rule 5605(b)(2) requires that independent directors regularly meet in executive sessions, where only independent directors are present. Under our current corporate structure, Cayman Islands law does not require a majority of our board of directors to be independent directors or meetings where only independent directors are present.

● Nasdaq Rule 5605(d) requires, among other things, that a listed company's compensation committee be comprised of at least two members, each of whom is an independent director as defined under such rule. Under our current corporate structure, Cayman Islands law does not impose specific requirements on the establishment of a compensation committee.

● Nasdaq Rule 5605(e) requires that a listed company's nomination and corporate governance committee be comprised solely of independent directors. Under our current corporate structure, Cayman Islands law does not impose specific requirements on the establishment of a nominating committee or nominating process.

● Nasdaq Rule 5635(d) requires that a listed issuer obtain stockholder approval prior to issuing or selling securities (or securities convertible into or exercisable for common stock) that equal 20% or more of the issuer's outstanding common stock or voting power prior to such issuance or sale. Under our current corporate structure, Cayman Islands law does not require that we obtain shareholder approval prior to issuing or selling securities that equal 20% or more of our outstanding Ordinary Shares or voting power.

**Controlled Company**

Upon completion of this Offering, Mr. Tatsuya Nakagoshi, our founder and director, will hold approximately 71.63% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the Representative's over-allotment option, or approximately 70.25%, assuming full exercise of the Representative's over-allotment option, in each case based on an assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus. As a result, we will be deemed to be a "controlled company" for the purpose of the Nasdaq listing rules. As a controlled company, we are permitted to elect to rely on certain exemptions from the obligations to comply with certain corporate governance requirements, including the requirements that:

● a majority of our board of directors consist of independent directors;

● our director nominees be selected or recommended solely by independent directors; and

● we have a nominating and corporate governance committee and a compensation committee that are composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committees.

As a foreign private issuer, however, Nasdaq corporate governance rules allow us to follow corporate governance practice in our home country, Cayman Islands, with respect to appointments to our board of directors and committees. We intend to follow home country practice, as permitted by Nasdaq rather than rely on the "controlled company" exception to the corporate governance rules. See "*Risk Factors—Risks Relating to this Offering and the Trading Market—Because we are a foreign private issuer and intend to take advantage of exemptions from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer*." Further, for as long as Mr. Nakagoshi beneficially owns a majority of the voting power of our outstanding Ordinary Shares, he will generally be able to control the outcome of matters submitted to our shareholders for approval, including the election of directors, without the approval of our other shareholders. Accordingly, you would not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.

**Board of Directors**

Our board of directors will consist of eight directors, one of whom is an independent director. A director may vote with respect to any contract, proposed contract, or arrangement in which he is materially interested, provided that (a) such director, if his/her interest in such contract or arrangement is material, has declared the nature of his/her interest at the earliest meeting of the board at which it is practicable for him/her to do so, either specifically or by way of a general notice and (b) if such contract or arrangement is a transaction with a related party, such transaction has been approved by the audit committee. Nasdaq corporate governance rules require that a majority of an issuer's board of directors must consist of independent directors. However, as a Cayman Islands company listed on the Nasdaq, we are a foreign private issuer and are permitted to follow the home country practice with respect to certain corporate governance matters. Cayman Islands law does not require a majority of a publicly traded company's board of directors to be comprised of independent directors. We rely on this home country practice exception and do not have a majority of independent directors serving on our board of directors.

Our board of directors may exercise all the powers of our Company to borrow money, mortgage its undertaking, property, and uncalled capital, and issue debentures or other securities whenever money is borrowed or as security for any obligation of our Company or of any third party. None of our directors has a service contract with us that provides for benefits upon termination of service.

**Duties of Directors**

Under Cayman Islands law, the directors of our Company owe fiduciary duties to our Company, including a duty of loyalty, a duty to act honestly, and a duty to act in what they consider to be in good faith to be in the best interests of our Company. The directors of our Company must also exercise their powers only for a proper purpose. The directors of our Company also owe to our Company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably be expected from a person of his knowledge and experience. However, English and Commonwealth courts have moved towards an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands. In fulfilling their duty of care to our Company, its directors must ensure compliance with the memorandum and articles of association of our Company, as amended and restated from time to time. Our Company has the right to seek damages if a duty owed by its directors is breached. In limited exceptional circumstances, a shareholder may have the right to seek damages in the name of our Company if a duty owed by the directors of our Company is breached.

The functions and powers of our board of directors include, among others:

● convening shareholders' general meetings and reporting its work to shareholders at such meetings;

● declaring dividends and distributions;

● appointing officers and determining the term of office of the officers;

● exercising the borrowing powers of the company and mortgaging the property of the company; and

● maintaining or registering a register of mortgages, charges, or other encumbrances of the company.

**Terms of Directors and Executive Officers**

Under our articles of association, a director may be appointed by ordinary resolution of shareholders, or by the directors. An appointment of a director may be on terms that the director will automatically retire from office (unless he has sooner vacated office) at the next or a subsequent annual general meeting or upon any specified event or after any specified period in a written agreement between our Company and the director, if any, but no such term will be implied in the absence of express provision. It is expected that, whether by ordinary resolution or by the directors, each director will be appointed on the terms that the director will hold office until the appointment of the director's successor or the director's re-appointment at the next annual general meeting, unless the director has sooner vacated office.

All of our executive officers are appointed by and serve at the discretion of our board of directors.

**Qualification**

Under our articles of association, a director is not required to hold any shares in our Company by way of qualification. A director who is not a shareholder of our Company is nevertheless entitled to attend and speak at general meetings.

**Committees of the Board of Directors**

 ****

***Audit Committee***

We will establish an audit committee, which will consist of three directors, including Fumiaki Hayata, Yosuke Yamaguchi, and Aya Hoshiko, upon the SEC's declaration of effectiveness of the registration statement of which this prospectus forms a part. We have determined that Fumiaki Hayata, Yosuke Yamaguchi and Aya Hoshiko will satisfy the "independence" requirements of Section 5605(a)(2) of the Nasdaq Listing Rules and Rule 10A-3 under the Exchange Act. We have also determined that Fumiaki Hayata, Yosuke Yamaguchi and Aya Hoshiko qualify as audit committee financial experts under the SEC rules and as financially sophisticated audit committee members under the Nasdaq listing rules. Aya Hoshiko will be the chair of the audit committee. Our audit committee will adopt a written charter (the "Charter"), which will require that each member of the Audit Committee shall be independent in accordance with the requirements of Rule 10A-3 of the Exchange Act and the rules of the NASDAQ Stock Market or any other securities exchange on which any of our securities are listed, and that no member of the Audit Committee can have participated in the preparation of the Company's or any of its subsidiaries' financial statements at any time during the past three years. The Charter will require that each member of the Committee must be able to read and understand fundamental financial statements, including the Company's balance sheet, income statement, and cash flow statement, at least one member of the Committee must have past employment experience in finance or accounting, requisite professional certification in accounting, or other comparable experience or background that leads to financial sophistication, and at least one member of the Audit Committee must be an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K. The Charter will provide that the purpose of the Audit Committee is to oversee the Company's accounting and financial reporting processes and the audit of the Company's financial statements, and that the primary role of the Audit Committee is to oversee the financial reporting and disclosure process.

The Charter will provide that the Audit Committee shall have the following authority and responsibilities, among others:

● To select, retain, terminate, and set the compensation of an independent registered public accounting firm to act as the Company's independent auditors;

● To select, retain, compensate, oversee, and terminate, if necessary, any other registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company;

● To pre-approve all audit and permitted non-audit and tax services that may be provided by the Company's independent auditors or other registered public accounting firms and establish policies and procedures for the Committee's pre-approval of permitted services by the Company's independent auditors or other registered public accounting firms on an on-going basis;

● At least annually, to obtain and review a report by the Company's independent auditors that describes (1) the accounting firm's internal quality control procedures, (2) any issues raised by the most recent internal quality control review, peer review, or Public Company Accounting Oversight Board review or inspection of the firm or by any other inquiry or investigation by governmental or professional authorities in the past five years regarding one or more audits carried out by the firm and any steps taken to deal with any such issues, and (3) all relationships between the firm and the Company or any of its subsidiaries; and to discuss with the independent auditors this report and any relationships or services that may impact the objectivity and independence of the auditors;

● To assure the regular rotation of the lead audit partner at the Company's independent auditors and consider regular rotation of the accounting firm serving as the Company's independent auditors;

● To review and discuss with the Company's independent auditors the auditors' responsibilities under generally accepted auditing standards and the responsibilities of management in the audit process, including the overall audit strategy, the scope and timing of the annual audit, any significant risks identified during the auditors' risk assessment procedures and, when completed, the results, including significant findings, of the annual audit;

● To review and discuss with the Company's independent auditors (1) all critical accounting policies and practices to be used in the audit, (2) all alternative treatments of financial information within GAAP that have been discussed with management, the ramifications of the use of such alternative treatments and the treatment preferred by the auditors, and (3) other material written communications between the auditors and management;

● To review with management and the Company's independent auditors: any major issues regarding accounting principles and financial statement presentation;

● To review with management, the internal audit department and the Company's independent auditors the adequacy and effectiveness of the Company's financial reporting processes, internal control over financial reporting and disclosure controls and procedures, and any fraud involving management or other employees with a significant role in such processes, controls, and procedures;

● To recommend to the board that the audited financial statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations section be included in the Company's Form 20-F and produce the audit committee report required to be included in the Company's proxy statement;

● To review and approve the functions of the Company's Internal Accounting Department;

● To establish and oversee procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by Company employees of concerns regarding questionable accounting or auditing matters; and

● To review, approve and oversee any transaction between the Company and any related person and any other potential conflict of interest situations on an ongoing basis, in accordance with Company policies and procedures, and to develop policies and procedures for the Committee's approval of related party transactions.

 ****

 ****

***Compensation Committee***

Because we will be a "foreign private issuer" within the meaning of the corporate governance standards of Nasdaq, we will not be required to, and do not currently expect to, have a compensation committee. If and when we are no longer a "foreign private issuer," we will be required to establish a compensation committee. We anticipate that such a compensation committee would consist of three directors who will be "independent" under the rules of the SEC, subject to the permitted "phase-in" period pursuant to the rules of Nasdaq. Upon the formation of a compensation committee, we would expect to adopt a compensation committee charter defining the committee's primary duties in a manner consistent with the rules of the SEC and Nasdaq standards.

This compensation committee would:

● review and determine the compensation arrangements for management;

● Establish and review general compensation policies with the objective to attract and retain superior talent, to reward individual performance, and to achieve our financial goals;

● administer our incentive compensation and benefit plans and purchase plans;

● oversee the evaluation of the board of directors and management; and

● review the independence of any compensation advisers.

Upon formation of a compensation committee, we would expect to adopt a compensation committee charter defining the committee's primary duties in a manner consistent with the rules of the SEC and Nasdaq standards.

 ****

***Nominating and Corporate Governance Committee***

Because we will be a "foreign private issuer" within the meaning of the corporate governance standards of Nasdaq, we will not be required to, and do not currently expect to, have a nominating and corporate governance committee. If and when we are no longer a "foreign private issuer," we will be required to establish a nominating and corporate governance committee. We anticipate that such a nominating and corporate governance committee would consist of three directors who will be "independent" under the rules of the SEC, subject to the permitted "phase-in" period pursuant to the rules of Nasdaq. Upon formation of a nominating and corporate governance committee, we would expect to adopt a nominating and corporate governance committee charter defining the committee's primary duties in a manner consistent with the rules of the SEC and Nasdaq standards.

A shareholder may nominate one or more persons for election as a director at an annual meeting of shareholders if the shareholder complies with the notice and information provisions contained in our bylaws. Such notice must be in writing to our Company not less than 90 days and not more than 120 days prior to the anniversary date of the preceding year's annual meeting of shareholders or as otherwise required by the requirements of the Exchange Act. In addition, shareholders furnishing such notice must be a holder of record on both (i) the date of delivering such notice and (ii) the record date for the determination of shareholders entitled to vote at such a meeting.

**Risk Management**

One of the key functions of our board of directors is informed oversight of our risk management process. Our board of directors does not have a standing risk management committee, but rather administers this oversight function directly through our board of directors as a whole. Our board of directors is responsible for monitoring and assessing strategic risk exposure.

**Code of Business Conduct**

Prior to the consummation of this Offering, our board of directors will adopt a written code of business conduct that applies to our directors, officers, employees (including our principal executive officer, principal financial officer, principal accounting officer or controller, and other persons performing similar functions), and our agents.

**Compensation of Our Directors and Executive Officers**

For the fiscal year ended May 31, 2024, we paid an aggregate of JPY[ ] thousand (approximately $[ ] thousand) as compensation to our directors and executive officers. We do not set aside or accrue any budget to provide pension, retirement, or other similar benefits to our directors.

**PRINCIPAL SHAREHOLDERS**

The following table sets forth information with respect to the beneficial ownership, within the meaning of Rule 13d-3 under the Exchange Act, of our Ordinary Shares as of the date of this prospectus, and as adjusted to reflect the sale of 3,750,000 Ordinary Shares being offered in this Offering for:

● each of our directors and executive officers;

● all directors and executive officers as a group; and

● each person known to us to own beneficially more than 5% of our Ordinary Shares.

Beneficial ownership includes voting or investment power with respect to the Ordinary Shares. Except as indicated below, and subject to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all Ordinary Shares shown as beneficially owned by them. The percentage of beneficial ownership of each listed person prior to this Offering is based on 24,720,473 of our Ordinary Shares outstanding as of the date of this prospectus. Percentage of beneficial ownership of each listed person after this Offering includes 3,750,000 Ordinary Shares outstanding immediately after the completion of this Offering, assuming no exercise of the Representative's over-allotment option, and 4,312,500 Ordinary Shares, assuming full exercise of the over-allotment option, in each case, excluding shares issuable upon exercise of unexercised options, and based on the assumed initial public offering of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus.

Information with respect to beneficial ownership has been furnished by each director, executive officer, or beneficial owner of 5% or more of our Ordinary Shares. Beneficial ownership is determined in accordance with the rules of the SEC and generally requires that such person have voting or investment power with respect to securities. In computing the number of Ordinary Shares beneficially owned by a person listed below and the percentage ownership of such person, Ordinary Shares underlying options, warrants, or convertible securities held by each such person that are exercisable or convertible within 60 days of the date of this prospectus are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person. As of the date of this prospectus, we have 19 shareholders of record, three of whom are located in the United States. At the closing of this Offering, in order to satisfy the Nasdaq listing rules, we will be required to have at least 300 round lot shareholders (300 holders who have at least 100 unrestricted shares, where the market value of such shares with respect to at least half of such holders is at least $2,500).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares <br> Beneficially Owned <br> Prior to this <br> Offering** | **Ordinary Shares <br> Beneficially Owned <br> Prior to this <br> Offering** | **Ordinary Shares <br> Beneficially Owned <br> After this Offering <br> (Over-allotment option <br> not exercised)** | **Ordinary Shares <br> Beneficially Owned <br> After this Offering <br> (Over-allotment option <br> not exercised)** | **Ordinary Shares <br> Beneficially Owned <br> After this Offering <br> (Over-allotment option <br> fully exercised)** | **Ordinary Shares <br> Beneficially Owned <br> After this Offering <br> (Over-allotment option <br> fully exercised)** |
|  | **Number** | **Percent** | **Number** | **Percent** | **Number** | **Percent** |
| **Directors and Senior Management<sup>(1)</sup>:** |  |  |  |  |  |  |
| Yu Asano | 9600 | 0.04% | 9600 | 0.03% | 9600 | 0.03% |
| Kazuo Iseji | 9600 | 0.04% | 9600 | 0.03% | 9600 | 0.03% |
| Tatsuya Nakagoshi | 20394299 | 82.50% | 20394299 | 71.63% | 20394299 | 70.25% |
| Yoshiaki Izutsu |  |  |  |  |  |  |
| Shintaro Yamaguchi |  |  |  |  |  |  |
| Yuki Hayakawa |  |  |  |  |  |  |
| Yusuke Kanazawa | 3360 | 0.01% | 3360 | 0.01% | 3360 | 0.01% |
| Aya Hoshiko |  |  |  |  |  |  |
| Fumiaki Hayata |  |  |  |  |  |  |
| Yosuke Yamaguchi |  |  |  |  |  |  |
| **All directors and senior management as a group (10 individuals):** | 20416859 | 82.59% | 20416859 | 71.71% | 20416859 | 70.32% |
| **5% Shareholders:** |  |  |  |  |  |  |
| Tatsuya Nakagoshi | 20394299 | 82.50% | 20394299 | 71.63% | 20394299 | 70.25% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Unless otherwise indicated, the business address of each of the individuals is Realize Sakaisuji-Honmachi Building Room 507,1-5-31 Kyutaromachi, Chuo-ku, Osaka City, Osaka, Japan.

**RELATED PARTY TRANSACTIONS**

**Material Transactions with Related Parties**

The relationship and the nature of related party transactions are summarized as follows:

---

| | |
|:---|:---|
| **Name of Related Party** | **Nature of Relationship at November 30, 2024 and May 31, 2024** |
| Tatsuya Nakagoshi | Founder and director of the Company |
| Center Porter Co., Ltd. | A company controlled by Tatsuya Nakagoshi |

---

---

| | |
|:---|:---|
| **Name of Related Party** | **Nature of Relationship at May 31, 2023** |
| Tatsuya Nakagoshi | Founder and director of the Company |
| Center Porter Co., Ltd. | A company controlled by Tatsuya Nakagoshi |
| Shota Matsuyama | Representative director and CEO of Pay Storage |

---

In the ordinary course of business, we were involved in certain transactions, either at cost or current market prices, and on normal commercial terms with related parties.

The Company had the following related party balances and transactions as of November 30, 2024 and May 31, 2024, 2023 and 2022 and for the six months ended November 30, 2024 and 2023 and for the fiscal years ended May 31, 2024, 2023 and 2022:

On June 10, 2022, we executed a loan agreement with Mr. Shota Matsuyama, the founder of Pay Storage. Pursuant to the terms of the agreement, we extended a loan to him in the principal amount of JPY20 million, with a fixed annual interest rate of 0.90%. The loan is set to mature at the end of June 2025. The proceeds of the loan were utilized as capital for the establishment of Pay Storage. We assessed that Mr. Matsuyama was a nominee shareholder acting for the Company, and the Company has wholly owned and controlled Pay Storage through Mr. Matsuyama since then. As a result, there were no balances related to the loan agreement with Mr. Matsuyama to be disclosed on a consolidated basis. Mr. Matsuyama resigned from Pay Storage in November 2023 and has no longer been a related party since then.

On April 15, 2024, the Company transferred its one treasury share to Mr. Tatsuya Nakagoshi for the consideration of JPY4,439,730.

On May 31, 2022, the Company lent Tatsuya Nakagoshi JPY8,562 thousand which Tatsuya Nakagoshi accepted. The Company bore interest at 1.25% per annum on the amount of JPY8,562 thousand lent to Tatsuya Nakagoshi.

On May 31, 2023, the Company lent Tatsuya Nakagoshi JPY29,090 thousand, which Tatsuya Nakagoshi accepted. The Company bore interest at 0.9% per annum on the amount of JPY29,090 thousand lent to Tatsuya Nakagoshi.

On May 31, 2024, the Company lent Tatsuya Nakagoshi JPY3,324 thousand, which Tatsuya Nakagoshi accepted. The Company bore interest at 0.9% per annum on the amount of JPY3,324 thousand lent to Tatsuya Nakagoshi.

Short-term loan receivable from the related party as of November 30, 2024 and May 31, 2024, 2023 and 2022 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  |  | | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** |
|  |  | **November 30,**<br>**2024** | **2024** | **2023** | **2022** |
| **Short-term loans receivable** | **Short-term loans receivable** |  |  |  |  |
| Tatsuya Nakagoshi | Short-term loans receivable with an interest rate of 0.9% per annum | ¥- | ¥40976 | ¥37652 | ¥8562.00 |

---

As of November 30, 2024 and May 31, 2024, 2023 and 2022, the outstanding accrued interest income due from Mr. Tatsuya Nakagoshi was nil, JPY742 thousand, JPY343 thousand and JPY178 thousand, respectively. Interest income for loans receivable due from the related party was nil and JPY54 thousand for the six months ended November 30, 2024 and 2023 and JPY398 thousand, JPY165 thousand and JPY107 thousand for the fiscal years ended May 31, 2024, 2023 and 2022, respectively. During the last three fiscal years, the loan was made to Mr. Nakagoshi to advance Mr. Nakagoshi's personal expenses, and Mr. Nakagoshi repaid all outstanding loan in October 2024. As of the date of this prospectus, there is no outstanding balance with Mr. Nakagoshi.

As of November 30, 2024 and May 31, 2024, 2023 and 2022, accrued expenses due to the related party on the consolidated financial statements were as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  |  | **November 30,** | **November 30,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** |
|  |  | **2024** | **2024** | **2024** | **2024** | **2023** | **2023** | **2022** | **2022** |
| **Accrued expenses** |  |  |  |  |  |  |  |  |  |
| Center porter Co., Ltd. | Cosmetics sales commission | ¥ | 204 | ¥ | 308 | ¥ | 329 | ¥ | 420 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  |  | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** | **Fiscal year ended May 31,** |
|  |  | **2024** | **2024** | **2023** | **2023** | **2022** | **2022** |
| **Accrued expenses** |  |  |  |  |  |  |  |
| Center Porter Co., Ltd. | Cosmetics sales commission | ¥ | 308 | ¥ | 329 | ¥ | 420 |

---

Sales commission expenses to the related party were JPY1,304 thousand and JPY1,252 thousand for the six months ended November 30, 2024 and 2023 and JPY2,273 thousand, JPY3,710 thousand and JPY 261 thousand for the fiscal years ended May 31, 2024, 2023 and 2022, respectively.

**DESCRIPTION OF SHARE CAPITAL**

We are a Cayman Islands exempted company and our affairs are governed by our memorandum and articles of association, as amended from time to time, the Cayman Companies Act and the common law of Cayman Islands.

As of the date of this prospectus, our authorized share capital is $100 divided into 1,000,000,000 ordinary shares, par value of $0.0000001 each. As of the date of this prospectus, 24,720,473 Ordinary Shares are issued and outstanding.

Immediately prior to the completion of this offering, we will have 24,720,473 Ordinary Shares issued and outstanding. All of our Ordinary Shares issued and outstanding prior to the completion of the offering are and will be fully paid, and all of our shares to be issued in the offering will be issued as fully paid.

**Our Post-Offering Amended and Restated Memorandum and Articles of Association**

We will adopt an amended and restated memorandum and articles of association, which will become effective and replace our current memorandum and articles of association in its entirety immediately prior to the completion of this offering. The following are summaries of certain material provisions of the post-offering memorandum and articles of association and of the Cayman Companies Act, insofar as they relate to the material terms of our ordinary shares.

 

*Objects of Our Company*. Under our post-offering memorandum and articles of association, the objects of our company are unrestricted, and we are capable of exercising all the functions of a natural person of full capacity irrespective of any question of corporate benefit, as provided by section 27(2) of the Cayman Companies Act.

 

*Ordinary Shares*. Our ordinary shares are issued in registered form and are issued when registered in our register of members. We may not issue shares to bearer. Our shareholders who are non-residents of the Cayman Islands may freely hold and vote their shares.

 

*Dividends*. The holders of our ordinary shares are entitled to such dividends as may be declared by our board of directors. Our post-offering memorandum and articles of association provide that dividends may be declared and paid out of the funds of our company lawfully available therefor. Under the laws of the Cayman Islands, our company may pay a dividend out of either profit or share premium account; provided that in no circumstances may a dividend be paid out of our share premium if this would result in our company being unable to pay its debts as they fall due in the ordinary course of business.

 

*Voting Rights*. Voting at any meeting of shareholders is by way of a poll save that in the case of a physical meeting, the chairman of the meeting may decide that a vote be on a show of hands unless a poll is demanded by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· at least three shareholders present in person
or by proxy or (in the case of a shareholder being a corporation) by its duly authorised representative for the time being entitled to
vote at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· shareholder(s) present in person or by proxy
or (in the case of a shareholder being a corporation) by its duly authorised representative representing not less than one-tenth of the
total voting rights of all shareholders having the right to vote at the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· shareholder(s) present in person or by proxy
or (in the case of a shareholder being a corporation) by its duly authorised representative and holding shares in us conferring a right
to vote at the meeting being shares on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid
up on all shares conferring that right.

An ordinary resolution to be passed at a meeting by the shareholders requires the affirmative vote of a simple majority of the votes attaching to the ordinary shares cast at a meeting, while a special resolution requires the affirmative vote of no less than two-thirds of the votes cast attaching to the issued and outstanding ordinary shares at a meeting. A special resolution will be required for important matters such as a change of name, making changes to our post-offering memorandum and articles of association, a reduction of our share capital and the winding up of our company. Our shareholders may, among other things, divide or combine their shares by ordinary resolution.

 

 

*General Meetings of Shareholders*. As a Cayman Islands exempted company, we are not obliged by the Cayman Companies Act to call shareholders' annual general meetings. Our post-offering amended and restated memorandum and articles of association provide that we shall, if required by the Cayman Companies Act, in each year hold a general meeting as our annual general meeting, and shall specify the meeting as such in the notices calling it, and the annual general meeting shall be held at such time and place as may be determined by our directors. All general meetings (including an annual general meeting, any adjourned general meeting or postponed meeting) may be held as a physical meeting at such times and in any part of the world and at one or more locations, as a hybrid meeting or as an electronic meeting, as may be determined by our board of directors in its absolute discretion.

Shareholders' general meetings may be convened by the chairperson of our board of directors or by a majority of our board of directors. Advance notice of not less than ten clear days is required for the convening of our annual general shareholders' meeting (if any) and any other general meeting of our shareholders. A quorum required for any general meeting of shareholders consists of, at the time when the meeting proceeds to business, two shareholders holding shares which carry in aggregate (or representing by proxy) not less than one-third of all votes attaching to issued and outstanding shares in our company entitled to vote at such general meeting.

The Cayman Companies Act does not provide shareholders with any right to requisition a general meeting or to put any proposal before a general meeting. These rights, however, may be provided in a company's articles of association. The post offering memorandum and articles of association of Center Mobile Cayman do not provide shareholders with any right to requisition a general meeting or put any proposals before annual general meetings or extraordinary general meetings not called by such shareholders.

 

*Transfer of Ordinary Shares*. Subject to the restrictions set out below, any of our shareholders may transfer all or any of his or her ordinary shares by an instrument of transfer in the usual or common form or in a form prescribed by Nasdaq or any other form approved by our board of directors. Notwithstanding the foregoing, ordinary shares may also be transferred in accordance with the applicable rules and regulations of Nasdaq.

Our board of directors may, in its absolute discretion, decline to register any transfer of any ordinary share which is not fully paid up or on which we have a lien. Our board of directors may also decline to register any transfer of any ordinary share unless:

● the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer;

● the instrument of transfer is in respect of only one class of ordinary shares;

● the instrument of transfer is properly stamped, if required;

● in the case of a transfer to joint holders, the number of joint holders to whom the ordinary share is to be transferred does not exceed four; and

● a fee of such maximum sum as the Nasdaq may determine to be payable or such lesser sum as our directors may from time to time require is paid to us in respect thereof.

If our directors refuse to register a transfer they shall, within two months after the date on which the instrument of transfer was lodged, send to each of the transferor and the transferee notice of such refusal.

The registration of transfers may, after compliance with any notice required in accordance with the rules of the Nasdaq, be suspended and the register closed at such times and for such periods as our board of directors may from time to time determine; provided, however, that the registration of transfers shall not be suspended nor the register closed for more than 30 days in any year as our board may determine.

 

*Liquidation*. On the winding up of our company, if the assets available for distribution amongst our shareholders shall be more than sufficient to repay the whole of the share capital at the commencement of the winding up, the surplus shall be distributed amongst our shareholders in proportion to the par value of the shares held by them at the commencement of the winding up, subject to a deduction from those shares in respect of which there are monies due, of all monies payable to our company for unpaid calls or otherwise. If our assets available for distribution are insufficient to repay all of the paid-up capital, such assets will be distributed so that, as nearly as may be, the losses are borne by our shareholders in proportion to the par value of the shares held by them.

 

 

*Calls on Shares and Forfeiture of Shares*. Our board of directors may from time to time make calls upon shareholders for any amounts unpaid on their shares in a notice served to such shareholders at least 14 days prior to the specified time and place of payment. The shares that have been called upon and remain unpaid are subject to forfeiture.

 

*Redemption, Repurchase and Surrender of Shares*. We may issue shares on terms that such shares are subject to redemption, at our option or at the option of the holders of these shares, on such terms and in such manner as may be determined by our board of directors. Our company may also repurchase any of our shares on such terms and in such manner as have been approved by our board of directors. Under the Cayman Companies Act, the redemption or repurchase of any share may be paid out of our company's profits, share premium account or out of the proceeds of a new issue of shares made for the purpose of such redemption or repurchase, or out of capital if our company can, immediately following such payment, pay its debts as they fall due in the ordinary course of business. In addition, under the Cayman Companies Act no such share may be redeemed or repurchased (a) unless it is fully paid up, (b) if such redemption or repurchase would result in there being no shares outstanding or (c) if the company has commenced liquidation. In addition, our company may accept the surrender of any fully paid share for no consideration.

 

*Variations of Rights of Shares.* Whenever the capital of our company is divided into different classes the rights attached to any such class may, subject to any rights or restrictions for the time being attached to any class, only be varied with the sanction of a resolution passed by a majority of two-thirds of the votes cast at a separate meeting of the holders of the shares of that class. The rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation, allotment or issue of further shares ranking pari passu with such existing class of shares.

 

*Issuance of Additional Shares.* Our post-offering memorandum and articles of association authorizes our board of directors to issue additional ordinary shares from time to time as our board of directors shall determine, to the extent of available authorized but unissued shares.

Our post-offering memorandum and articles of association also authorizes our board of directors to establish from time to time one or more series of preference shares and to determine, with respect to any series of preference shares, the terms and rights of that series, including, among other things:

● the designation of the series;

● the number of shares of the series;

● the dividend rights, dividend rates, conversion rights and voting rights; and

● the rights and terms of redemption and liquidation preferences.

Our board of directors may issue preference shares without action by our shareholders to the extent of available authorized but unissued shares. Issuance of these shares may dilute the voting power of holders of ordinary shares.

 

*Inspection of Books and Records*. Holders of our ordinary shares will have no general right under Cayman Islands law to inspect or obtain copies of our list of shareholders or our corporate records. However, our post-offering amended and restated memorandum and articles of association will have provisions that provide our shareholders the right to inspect our register of shareholders without charge, and to receive our annual audited financial statements. See "Where You Can Find Additional Information."

 

*Anti-Takeover Provisions.* Some provisions of our post-offering memorandum and articles of association may discourage, delay or prevent a change of control of our company or management that shareholders may consider favorable, including provisions that:

● authorize our board of directors to issue preference shares in one or more series and to designate the price, rights, preferences, privileges and restrictions of such preference shares without any further vote or action by our shareholders; and

● limit the ability of shareholders to requisition and convene general meetings of shareholders.

However, under Cayman Islands law, our directors may only exercise the rights and powers granted to them under our post-offering memorandum and articles of association for a proper purpose and for what they believe in good faith to be in the best interests of our company.

 

*Exempted Company*. We are an exempted company with limited liability under the Cayman Companies Act. The Cayman Companies Act distinguishes between ordinary resident companies and exempted companies. Any company that is registered in the Cayman Islands but conducts business mainly outside of the Cayman Islands may apply to be registered as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except that an exempted company:

● does not have to file an annual return of its shareholders with the Registrar of Companies;

● is not required to open its register of members for inspection;

● does not have to hold an annual general meeting;

● may issue shares with no par value;

● may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance);

● may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

● may register as an exempted limited duration company; and

● may register as a segregated portfolio company.

"Limited liability" means that the liability of each shareholder is limited to the amount unpaid by the shareholder on that shareholder's shares of the company (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances in which a court may be prepared to pierce or lift the corporate veil).

**Differences in Corporate Law**

The Cayman Companies Act is derived, to a large extent, from the older Companies Acts of England but does not follow recent English statutory enactments and accordingly there are significant differences between the Cayman Companies Act and the current Companies Act of England. In addition, the Cayman Companies Act differs from laws applicable to U.S. corporations and their shareholders. Set forth below is a summary of certain significant differences between the provisions of the Cayman Companies Act applicable to us and the laws applicable to companies incorporated in the State of Delaware in the United States and their shareholders.

 

*Mergers and Similar Arrangements.* The Cayman Companies Act permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies. For these purposes, (a) "merger" means the merging of two or more constituent companies and the vesting of their undertaking, property and liabilities in one of such companies as the surviving company, and (b) a "consolidation" means the combination of two or more constituent companies into a consolidated company and the vesting of the undertaking, property and liabilities of such companies to the consolidated company. In order to effect such a merger or consolidation, the directors of each constituent company must approve a written plan of merger or consolidation, which must then be authorized by (a) a special resolution of the shareholders of each constituent company, and (b) such other authorization, if any, as may be specified in such constituent company's articles of association. The plan must be filed with the Registrar of Companies of the Cayman Islands together with a declaration as to the solvency of the consolidated or surviving company, a list of the assets and liabilities of each constituent company and an undertaking that a copy of the certificate of merger or consolidation will be given to the members and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every member of that Cayman subsidiary to be merged unless that member agrees otherwise. For this purpose, a company is a "parent" of a subsidiary if it holds issued shares that together represent at least ninety percent (90%) of the votes at a general meeting of the subsidiary.

The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by a court in the Cayman Islands.

Save in certain limited circumstances, a shareholder of a Cayman constituent company who dissents from the merger or consolidation is entitled to payment of the fair value of his shares (which, if not agreed between the parties, will be determined by the Cayman Islands court) upon dissenting to the merger or consolidation, provided the dissenting shareholder complies strictly with the procedures set out in the Cayman Companies Act. The exercise of dissenter rights will preclude the exercise by the dissenting shareholder of any other rights to which he or she might otherwise be entitled by virtue of holding shares, save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.

Separate from the statutory provisions relating to mergers and consolidations, the Cayman Companies Act also contains statutory provisions that facilitate the reconstruction and amalgamation of companies by way of schemes of arrangement, provided that the arrangement is approved by seventy-five per cent in value of the members or class of members, as the case may be, with whom the arrangement is to be made and a majority in number of each class of creditors with whom the arrangement is to be made, and who must in addition represent seventy-five per cent in value of each such class of creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that:

● the statutory provisions as to the required majority vote have been met;

● the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class;

● the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and

● the arrangement is not one that would more properly be sanctioned under some other provision of the Cayman Companies Act.

The Cayman Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of a dissentient minority shareholder upon a tender offer. When a tender offer is made and accepted by holders of 90% of the shares affected within four months, the offeror may, within a two-month period commencing on the expiration of such four-month period, require the holders of the remaining shares to transfer such shares to the offeror on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.

If an arrangement and reconstruction by way of scheme of arrangement is thus approved and sanctioned, or if a tender offer is made and accepted, in accordance with the foregoing statutory procedures, a dissenting shareholder would have no rights comparable to appraisal rights, save that objectors to a takeover offer may apply to the Grand Court of the Cayman Islands for various orders that the Grand Court of the Cayman Islands has a broad discretion to make, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares.

The Cayman Companies Act also contains statutory provisions which provide that a company may present a petition to the Grand Court of the Cayman Islands for the appointment of a restructuring officer on the grounds that the company (a) is or is likely to become unable to pay its debts within the meaning of section 93 of the Cayman Companies Act; and (b) intends to present a compromise or arrangement to its creditors (or classes thereof) either, pursuant to the Cayman Companies Act, the law of a foreign country or by way of a consensual restructuring. The petition may be presented by a company acting by its directors, without a resolution of its members or an express power in its articles of association. On hearing such a petition, the Cayman Islands court may, among other things, make an order appointing a restructuring officer or make any other order as the court thinks fit.

 

 

*Shareholders' Suits.* In principle, we will normally be the proper plaintiff and as a general rule a derivative action may not be brought by a minority shareholder. However, based on English authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, the Cayman Islands courts can be expected to follow and apply the common law principles (namely the rule in *Foss v. Harbottle* and the exceptions thereto) so that a non-controlling shareholder may be permitted to commence a class action against or derivative actions in the name of the company to challenge actions where:

● a company acts or proposes to act illegally or ultra vires;

● the act complained of, although not ultra vires, could only be effected duly if authorized by more than the number of votes which have actually been obtained; and

● those who control the company are perpetrating a "fraud on the minority."

A shareholder may have a direct right of action against us where the individual rights of that shareholder have been infringed or are about to be infringed.

Our post-offering amended and restated articles of association contains a provision by which our shareholders waive any claim or right of action that they may have, both individually and on our behalf, against any director in relation to any action or failure to take action by such director in the performance of his or her duties with or for our Company, except in respect of any fraud, willful default or dishonesty of such director.

 

*Indemnification of Directors and Executive Officers and Limitation of Liability*. Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Our post-offering memorandum and articles of association provide that that we shall indemnify our directors and officers, and their personal representatives, against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such persons, other than by reason of such person's dishonesty, wilful default or fraud, in or about the conduct of our company's business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such director or officer in defending (whether successfully or otherwise) any civil proceedings concerning our company or its affairs in any court whether in the Cayman Islands or elsewhere. This standard of conduct is generally the same as permitted under the Delaware General Corporation Law for a Delaware corporation.

In addition, we have entered into indemnification agreements with our directors and executive officers that provide such persons with additional indemnification beyond that provided in our post-offering memorandum and articles of association.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers or persons controlling us under the foregoing provisions, we have been informed that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

 

*Directors' Fiduciary Duties*. Under Delaware corporate law, a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself of, and disclose to shareholders, all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director acts in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder and not shared by the shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, the director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation.

As a matter of Cayman Islands law, a director of a Cayman Islands company is in the position of a fiduciary with respect to the company and therefore it is considered that he owes the following duties to the company — a duty to act in good faith in the best interests of the company, a duty not to make a personal profit based on his position as director (unless the company permits him to do so), a duty not to put himself in a position where the interests of the company conflict with his personal interest or his duty to a third party and a duty to exercise powers for the purpose for which such powers were intended. A director of a Cayman Islands company owes to the company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably be expected from a person of his knowledge and experience. However, English and Commonwealth courts have moved towards an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands.

 

*Shareholder Action by Written Consent*. Under the Delaware General Corporation Law, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation. Cayman Islands law permits us to eliminate the right of shareholders to act by written consent and our post-offering amended and restated articles of association provide that any action required or permitted to be taken at any general meetings may be taken upon the vote of shareholders at a general meeting duly noticed and convened in accordance with our post-offering amended and restated articles of association and may not be taken by written consent of the shareholders without a meeting.

 

*Shareholder Proposals*. Under the Delaware General Corporation Law, a shareholder has the right to put any proposal before the annual meeting of shareholders, provided it complies with the notice provisions in the governing documents. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings.

The Cayman Companies Act does not provide shareholders with any right to requisition a general meeting or to put any proposal before a general meeting. These rights, however, may be provided in a company's articles of association. The post offering memorandum and articles of association of Center Mobile Cayman do not provide shareholders with any right to requisition a general meeting or put any proposals before annual general meetings or extraordinary general meetings not called by such shareholders. As an exempted Cayman Islands company, we are not obliged by law to call shareholders' annual general meetings.

 

*Cumulative Voting*. Under the Delaware General Corporation Law, cumulative voting for elections of directors is not permitted unless the corporation's certificate of incorporation specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder's voting power with respect to electing such director. There are no prohibitions in relation to cumulative voting under the laws of the Cayman Islands but our post-offering amended and restated articles of association do not provide for cumulative voting. As a result, our shareholders are not afforded any less protections or rights on this issue than shareholders of a Delaware corporation.

 

*Removal of Directors*. Under the Delaware General Corporation Law, a director of a corporation with a classified board may be removed only for cause with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Under our post-offering amended and restated articles of association, subject to certain restrictions as contained therein, directors may be removed with or without cause, by an ordinary resolution of our shareholders. An appointment of a director may be on terms that the director shall automatically retire from office (unless he has sooner vacated office) at the next or a subsequent annual general meeting or upon any specified event or after any specified period in a written agreement between the company and the director, if any; but no such term shall be implied in the absence of express provision. Under our post-offering amended and restated articles of association, a director's office shall be vacated if the director (i) becomes bankrupt or has a receiving order made against him or suspends payment or compounds with his creditors; (ii) is found to be or becomes of unsound mind or dies; (iii) resigns his office by notice in writing to the company; (iv) without special leave of absence from our board of directors, is absent from three consecutive meetings of the board and the board resolves that his office be vacated; (v) is prohibited by law from being a director or; (vi) is removed from office pursuant to the laws of the Cayman Islands or any other provisions of our post-offering memorandum and articles of association.

 

 

*Transactions with Interested Shareholders*. The Delaware General Corporation Law contains a business combination statute applicable to Delaware corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or a group who or which owns or owned 15% or more of the target's outstanding voting share within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware corporation to negotiate the terms of any acquisition transaction with the target's board of directors.

Cayman Islands law has no comparable statute. As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However, although Cayman Islands law does not regulate transactions between a company and its significant shareholders, it does provide that such transactions must be entered into bona fide in the best interests of the company and not with the effect of constituting a fraud on the minority shareholders.

 

*Dissolution; Winding up*. Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board.

Under Cayman Islands law, a company may be wound up by either an order of the courts of the Cayman Islands or by a special resolution of its members or, if the company is unable to pay its debts, by an ordinary resolution of its members. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so.

 

*Variation of Rights of Shares*. Under the Delaware General Corporation Law, a corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the certificate of incorporation provides otherwise. Under our post-offering amended and restated articles of association, if our share capital is divided into more than one class of shares, the rights attached to any such class may only be varied with the sanction of a resolution passed by a majority of two-thirds of the votes cast at a separate meeting of the holders of the shares of that class.

 

*Amendment of Governing Documents*. Under the Delaware General Corporation Law, a corporation's governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Under Cayman Islands law, our post-offering memorandum and articles of association may only be amended with a special resolution of our shareholders.

 

*Rights of Non-resident or Foreign Shareholders*. There are no limitations imposed by our post-offering memorandum and articles of association on the rights of non-resident or foreign shareholders to hold or exercise voting rights on our shares. In addition, there are no provisions in our post-offering memorandum and articles of association governing the ownership threshold above which shareholder ownership must be disclosed.

**History of Share Issuances**

The following is a summary of our securities issuances in the past three years.

On April 10, 2025, we issued 1 Ordinary Share, par value $0.0000001, to the initial subscriber, which was transferred to Mr. Tatsuya Nakagoshi.

On June [ ], 2025, we entered into the Share Exchange Agreement with Center Mobile Japan's shareholders, pursuant to which on June [ ], 2025, we will acquire 100% of the equity interests in Center Mobile Japan from Center Mobile Japan's shareholders in consideration of allotting and issuing an aggregate of 24,720,472 Ordinary Shares to the Center Mobile Japan's shareholders, and Center Mobile Japan will become our wholly owned subsidiary.

We believe that each of the foregoing issuances was exempt from registration under the Securities Act pursuant to Section 4(2) of the Securities Act regarding transactions not involving a public offering or in reliance on Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. No underwriters were involved in the issuances of securities.

We have not issued any other securities since the incorporation of the Company on April 10, 2025, except as described above.

**ORDINARY SHARES ELIGIBLE FOR FUTURE SALE**

Upon completion of this Offering and excluding the Selling Shareholder Shares, we will have 3,750,000 Ordinary Shares publicly trading, or approximately 13.17% of our outstanding Ordinary Shares, assuming the Representative does not exercise its option to purchase additional Ordinary Shares, and 4,312,500 Ordinary Shares publicly trading, or approximately 14.85% of our outstanding Ordinary Shares, assuming the Representative exercises its option to purchase additional Ordinary Shares in full, in each case, based on the assumed initial public offering price of $4.00 per Ordinary Share, representing the low end of the price range set forth on the cover page of this prospectus, and excluding shares issuable upon exercise of unexercised options. All of the Ordinary Shares sold in this Offering will be freely transferable by persons other than by our "affiliates" without restriction or further registration under the Securities Act. Sales of substantial amounts of the Ordinary Shares in the public market could adversely affect prevailing market prices of the Ordinary Shares. Prior to this Offering, there has been no public market for our Ordinary Shares, and although we have applied to list our Ordinary Shares on Nasdaq, a regular trading market for our Ordinary Shares may not develop.

**Lock-Up Agreements**

See "*Underwriting—Lock-Up Agreements.*" Apart from the offering of Selling Shareholder Shares by the Selling Shareholders pursuant to the Resale Prospectus, we are not aware of any plans by any significant shareholders to dispose of significant numbers of our Ordinary Shares.

**Rule 144**

All of our Ordinary Shares outstanding prior to the closing of this Offering are "restricted securities" as that term is defined in Rule 144 under the Securities Act and may be sold publicly in the United States only if they are subject to an effective registration statement under the Securities Act or pursuant to an exemption from the registration requirement such as those provided by Rule 144 and Rule 701 promulgated under the Securities Act.

In general, under Rule 144 as currently in effect, beginning 90 days after the date of this prospectus, a person who is not deemed to have been our affiliate at any time during the three months preceding a sale and who has beneficially owned restricted securities within the meaning of Rule 144 for more than six months would be entitled to sell an unlimited number of those shares, subject only to the availability of current public information about us. A non-affiliate who has beneficially owned restricted securities for at least one year from the later of the date these shares were acquired from us or from our affiliate would be entitled to freely sell those shares.

A person who is deemed to be an affiliate of ours and who has beneficially owned "restricted securities" for at least six months would be entitled to sell, within any three-month period, a number of shares that is not more than the greater of:

● 1% of the number of Ordinary Shares then outstanding, in the form of Ordinary Shares or otherwise, which will equal approximately 284,705 Ordinary Shares immediately after this Offering, assuming the Representative does not exercise its over-allotment option; or

● the average weekly trading volume of the Ordinary Shares on Nasdaq during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

**Rule 701**

In general, under Rule 701 of the Securities Act as currently in effect, each of our employees, consultants, or advisors who purchases our Ordinary Shares from us in connection with a compensatory stock plan or other written agreement executed prior to the completion of this Offering is eligible to resell those Ordinary Shares in reliance on Rule 144, but without compliance with some of the restrictions, including the holding period, contained in Rule 144. However, the Rule 701 shares would remain subject to lock-up arrangements and would only become eligible for sale when the lock-up period expires.

**Regulation S**

Regulation S under the Securities Act provides an exemption from registration requirements in the United States for offers and sales of securities that occur outside the United States. Rule 903 of Regulation S provides the conditions to the exemption for a sale by an issuer, a distributor, their respective affiliates, or anyone acting on their behalf. Rule 904 of Regulation S provides the conditions to the exemption for a resale by persons other than those covered by Rule 903. In each case, any sale must be completed in an offshore transaction, as that term is defined in Regulation S, and no directed selling efforts, as that term is defined in Regulation S, may be made in the United States.

We are a foreign issuer as defined in Regulation S. As a foreign issuer, securities that we sell outside the United States pursuant to Regulation S are not considered to be restricted securities under the Securities Act, and, subject to the offering restrictions imposed by Rule 903, are freely tradable without registration or restrictions under the Securities Act, unless the securities are held by our affiliates. We are not claiming the potential exemption offered by Regulation S in connection with the offering of newly issued shares outside the United States and will register all of the newly issued shares under the Securities Act.

Subject to certain limitations, holders of our restricted shares who are not our affiliates or who are our affiliates by virtue of their status as our officer or director may resell their restricted shares in an "offshore transaction" under Regulation S if:

● none of the shareholder, its affiliate, nor any person acting on their behalf engages in directed selling efforts in the United States; and

● in the case of a sale of our restricted shares by an officer or director who is our affiliate solely by virtue of holding such position, no selling commission, fee, or other remuneration is paid in connection with the offer or sale other than the usual and customary broker's commission that would be received by a person executing such transaction as agent.

Additional restrictions are applicable to a holder of our restricted shares who will be our affiliate other than by virtue of his or her status as our officer or director.

**MATERIAL INCOME TAX CONSIDERATIONS**

*The following summary of the material Japanese, Cayman Islands and United States federal income tax consequences of an investment in our Ordinary Shares is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which are subject to change. This summary does not deal with all possible tax consequences relating to an investment in our Ordinary Shares, such as the tax consequences under state, local, and other tax laws.*

**Japanese Taxation**

The following is a general summary of the principal Japanese tax consequences (limited to national tax) to owners of our Ordinary Shares, in the form of Ordinary Shares, who are non-resident individuals of Japan or who are non-Japanese corporations without a permanent establishment in Japan, collectively referred to in this section as non-resident holders. The statements below regarding Japanese tax laws are based on the laws and treaties in force and as interpreted by the Japanese tax authorities as of the date of this prospectus, and are subject to changes in applicable Japanese laws, tax treaties, conventions, or agreements, or in the interpretation of them, occurring after that date. This summary is not exhaustive of all possible tax considerations that may apply to a particular investor, and potential investors are advised to satisfy themselves as to the overall tax consequences of the acquisition, ownership, and disposition of our Ordinary Shares, including, specifically, the tax consequences under Japanese law, under the laws of the jurisdiction of which they are resident and under any tax treaty, convention, or agreement between Japan and their country of residence, by consulting their own tax advisors.

Generally, a non-resident holder of Ordinary Shares will be subject to Japanese income tax collected by way of withholding on any dividends (meaning in this section distributions made from our retained earnings for the Companies Act purposes) we pay with respect to our Ordinary Shares and such tax will be withheld prior to payment of dividends. Share splits generally are not subject to Japanese income or corporation taxes.

In the absence of any applicable tax treaty, convention, or agreement reducing the maximum rate of Japanese withholding tax or allowing exemption from Japanese withholding tax, the rate of the Japanese withholding tax applicable to dividends paid by Japanese corporations on their Ordinary Shares to non-resident holders is generally 20.42% (or 20% for dividends due and payable on or after January 1, 2038) under Japanese tax law. However, with respect to dividends paid on listed shares issued by a Japanese corporation (such as Ordinary Shares) to non-resident holders, other than any individual shareholder who holds 3% or more of the total number of shares issued by the relevant Japanese corporation (to whom the aforementioned withholding tax rate will still apply), the aforementioned withholding tax rate is reduced to (i) 15.315% for dividends due and payable up to and including December 31, 2037 and (ii) 15% for dividends due and payable on or after January 1, 2038. The withholding tax rates described above include the special reconstruction surtax (2.1% multiplied by the original applicable withholding tax rate, i.e., 15% or 20%, as the case may be), which is imposed during the period from and including January 1, 2013 to and including December 31, 2037, to fund the reconstruction from the Great East Japan Earthquake.

If distributions were made from our capital surplus, rather than retained earnings, for Companies Act purposes, the portion of such distributions in excess of the amount corresponding to a pro rata portion of return of capital as determined under Japanese tax laws would be deemed dividends for Japanese tax purposes, while the rest would be treated as return of capital for Japanese tax purposes. The deemed dividend portion, if any, would generally be subject to the same tax treatment as dividends as described above, and the return of capital portion would generally be treated as proceeds derived from the sale of Ordinary Shares and subject to the same tax treatment as sale of our Ordinary Shares as described below. Distributions made in consideration of repurchase by us of our own shares or in connection with certain reorganization transactions will be treated substantially in the same manner.

Japan has income tax treaties whereby the withholding tax rate (including the special reconstruction surtax) may be reduced, generally to 15%, for portfolio investors, with, among others, Canada, Denmark, Finland, Germany, Ireland, Italy, Luxembourg, New Zealand, Norway, and Singapore, while the income tax treaties with, among others, Australia, Belgium, France, Hong Kong, the Netherlands, Portugal, Sweden, Switzerland, the United Kingdom, and the United States generally reduce the withholding tax rate to 10% for portfolio investors and the income tax treaties with, among others, Spain, generally reduce the withholding tax rate to 5% for portfolio investors. In addition, under the income tax treaty between Japan and the United States, dividends paid to pension funds which are qualified U.S. residents eligible to enjoy treaty benefits are exempt from Japanese income taxation by way of withholding or otherwise unless the dividends are derived from the carrying on of a business, directly or indirectly, by the pension funds. Similar treatment is applicable to dividends paid to pension funds under the income tax treaties between Japan and, among others, Belgium, Denmark, Spain, the United Kingdom, the Netherlands, and Switzerland. Under Japanese tax law, any reduced maximum rate applicable under a tax treaty shall be available when such maximum rate is below the rate otherwise applicable under the Japanese tax law referred to in the second preceding paragraph with respect to the dividends to be paid by us on our Ordinary Shares.

Non-resident holders of our Ordinary Shares who are entitled under an applicable tax treaty to a reduced rate of, or exemption from, Japanese withholding tax on any dividends on our Ordinary Shares, in general, are required to submit, through the withholding agent to the relevant tax authority prior to the payment of dividends, an Application Form for Income Tax Convention regarding Relief from Japanese Income Tax and Special Income Tax for Reconstruction on Dividends together with any required forms and documents. A standing proxy for a non-resident holder of our Ordinary Shares may be used in order to submit the application on a non-resident holder's behalf. In this regard, a certain simplified special filing procedure is available for non-resident holders to claim treaty benefits of reduction of or exemption from Japanese withholding tax, by submitting a Special Application Form for Income Tax Convention regarding Relief from Japanese Income Tax and Special Income Tax for Reconstruction on Dividends of Listed Stock, together with any required forms or documents. Non-resident holders who are entitled, under any applicable tax treaty, to a reduced rate of Japanese withholding tax below the rate otherwise applicable under Japanese tax law, or exemption therefrom, as the case may be, but fail to submit the required application in advance may nevertheless be entitled to claim a refund from the relevant Japanese tax authority of withholding taxes withheld in excess of the rate under an applicable tax treaty (if such non-resident holders are entitled to a reduced treaty rate under the applicable tax treaty) or the full amount of tax withheld (if such non-resident holders are entitled to an exemption under the applicable tax treaty), as the case may be, by complying with a certain subsequent filing procedure. We do not assume any responsibility to ensure withholding at the reduced treaty rate, or exemption therefrom, for shareholders who would be eligible under an applicable tax treaty but who do not follow the required procedures as stated above.

Gains derived from the sale of Ordinary Shares outside Japan by a non-resident holder that is a portfolio investor will generally not be subject to Japanese income or corporation taxes. Japanese inheritance and gift taxes, at progressive rates, may be payable by an individual who has acquired from another individual Ordinary Shares as a legatee, heir, or donee, even if none of the acquiring individual, the decedent, or the donor is a Japanese resident.

**<u>Cayman Islands Taxation</u>**

The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the Government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or after execution brought within, the jurisdiction of the Cayman Islands. The Cayman Islands are a party to a double tax treaty entered into with the United Kingdom in 2010 but otherwise is not party to any double tax treaties. There are no exchange control regulations or currency restrictions in the Cayman Islands.

Payments of dividends and capital in respect of Ordinary Shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of Ordinary Shares, nor will gains derived from the disposal of Ordinary Shares be subject to Cayman Islands income or corporation tax.

Under the laws of the Cayman Islands, no stamp duty is payable in the Cayman Islands on transfers of shares of Cayman Islands companies except those which hold interests in land in the Cayman Islands or if the transfer documents are executed in or brought into the Cayman Islands.

**<u>United States Federal Income Taxation</u>**

**WE URGE POTENTIAL PURCHASERS OF OUR ORDINARY SHARES TO CONSULT THEIR OWN TAX ADVISORS CONCERNING THE U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. TAX CONSEQUENCES OF PURCHASING, OWNING, AND DISPOSING OF OUR ORDINARY SHARES.**

The following does not address the tax consequences to any particular investor or to persons in special tax situations, such as:

● banks;

● financial institutions;

● insurance companies;

● regulated investment companies;

● real estate investment trusts;

● broker-dealers;

● persons that elect to mark their securities to market;

● U.S. expatriates or former long-term residents of the U.S.;

● governments or agencies or instrumentalities thereof;

● tax-exempt entities;

● persons liable for alternative minimum tax;

● persons holding our Ordinary Shares as part of a straddle, hedging, conversion or integrated transaction;

● persons that actually or constructively own 10% or more of our voting power or value (including by reason of owning our Ordinary Shares);

● persons who acquired our Ordinary Shares pursuant to the exercise of any employee share option or otherwise as compensation;

● persons holding our Ordinary Shares through partnerships or other pass-through entities;

● beneficiaries of a Trust holding our Ordinary Shares; or

● persons holding our Ordinary Shares through a trust.

The discussion set forth below is addressed only to U.S. Holders that purchase Ordinary Shares in this offering. Prospective purchasers are urged to consult their own tax advisors about the application of the U.S. federal income tax rules to their particular circumstances as well as the state, local, foreign and other tax consequences to them of the purchase, ownership and disposition of our Ordinary Shares.

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***Material Tax Consequences Applicable to U.S. Holders of Our Ordinary Shares***

The following sets forth the material U.S. federal income tax consequences related to the ownership and disposition of our Ordinary Shares. It is directed to U.S. Holders (as defined below) of our Ordinary Shares and is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which are subject to change.

This description does not deal with all possible tax consequences relating to ownership and disposition of our Ordinary Shares or U.S. tax laws, other than the U.S. federal income tax laws, such as the tax consequences under non-U.S. tax laws, state, local and other tax laws.

The following brief description applies only to U.S. Holders that hold Ordinary Shares as capital assets and that have the U.S. dollar as their functional currency. This brief description is based on the federal income tax laws of the United States in effect as of the date of this prospectus and on U.S. Treasury regulations in effect or, in some cases, proposed, as of the date of this prospectus, as well as judicial and administrative interpretations thereof available on or before such date. All of the foregoing authorities are subject to change, which change could apply retroactively and could affect the tax consequences described below.

The brief description below of the U.S. federal income tax consequences to "U.S. Holders" will apply to you if you are a beneficial owner of Ordinary Shares and you are, for U.S. federal income tax purposes,

● an individual who is a citizen or resident of the United States;

● a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the United States, any state thereof or the District of Columbia;

● an estate whose income is subject to U.S. federal income taxation regardless of its source; or

● a trust that (1) is subject to the primary supervision of a court within the United States and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

If a partnership (or other entities treated as a partnership for United States federal income tax purposes) is a beneficial owner of our Ordinary Shares, the tax treatment of a partner in the partnership will depend upon the status of the partner and the activities of the partnership. Partnerships and partners of a partnership holding our Ordinary Shares are urged to consult their tax advisors regarding an investment in our Ordinary Shares.

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***Taxation of Dividends and Other Distributions on our Ordinary Shares***

Subject to the PFIC rules discussed below, the gross amount of distributions made by us to you with respect to the Ordinary Shares (including the amount of any taxes withheld therefrom) will generally be includable in your gross income as dividend income on the date of receipt by you, but only to the extent that the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). With respect to corporate U.S. Holders, the dividends will not be eligible for the dividends-received deduction allowed to corporations in respect of dividends received from other U.S. corporations.

With respect to non-corporate U.S. Holders, including individual U.S. Holders, dividends will be taxed at the lower capital gains rate applicable to qualified dividend income, provided that (1) the Ordinary Shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a PFIC for either our taxable year in which the dividend is paid or the preceding taxable year, and (3) certain holding period requirements are met. Because there is no income tax treaty between the United States and the Cayman Islands, clause (1) above can be satisfied only if the Ordinary Shares are readily tradable on an established securities market in the United States. Under U.S. Internal Revenue Service authority, Ordinary Shares are considered for purpose of clause (1) above to be readily tradable on an established securities market in the United States if they are listed on certain exchanges, which presently include the NYSE and the Nasdaq Stock Market. You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with respect to our Ordinary Shares, including the effects of any change in law after the date of this prospectus.

Dividends will constitute foreign source income for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income (as discussed above), the amount of the dividend taken into account for purposes of calculating the foreign tax credit limitation will be limited to the gross amount of the dividend, multiplied by the reduced rate divided by the highest rate of tax normally applicable to dividends. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends distributed by us with respect to our Ordinary Shares will constitute "passive category income" but could, in the case of certain U.S. Holders, constitute "general category income."

To the extent that the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U.S. federal income tax principles), it will be treated first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the amount of the distribution exceeds your tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings and profits under U.S. federal income tax principles. Therefore, a U.S. Holder should expect that a distribution will be treated as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain under the rules described above.

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***Taxation of Dispositions of Ordinary Shares***

Subject to the PFIC rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of a share equal to the difference between the amount realized (in U.S. dollars) for the share and your tax basis (in U.S. dollars) in the Ordinary Shares. The gain or loss will be capital gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held the Ordinary Shares for more than one year, you will generally be eligible for reduced tax rates. The deductibility of capital losses is subject to limitations. Any such gain or loss that you recognize will generally be treated as United States source income or loss for foreign tax credit limitation purposes which will generally limit the availability of foreign tax credits.

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***PFIC***

A non-U.S. corporation is considered a PFIC, as defined in Section 1297(a) of the US Internal Revenue Code, for any taxable year if either:

● at least 75% of its gross income for such taxable year is passive income; or

● at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the "asset test").

Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock. In determining the value and composition of our assets for purposes of the PFIC asset test, (1) the cash we raise in this offering will generally be considered to be held for the production of passive income and (2) the value of our assets must be determined based on the market value of our Ordinary Shares from time to time, which could cause the value of our non-passive assets to be less than 50% of the value of all of our assets (including the cash raised in this offering) on any particular quarterly testing date for purposes of the asset test.

Based on our operations and the composition of our assets we do not expect to be treated as a PFIC under the current PFIC rules. We must make a separate determination each year as to whether we are a PFIC, however, and there can be no assurance with respect to our status as a PFIC for our current taxable year or any future taxable year. Depending on the amount of cash we raise in this offering, together with any other assets held for the production of passive income, it is possible that, for our current taxable year or for any subsequent taxable year, more than 50% of our assets may be assets held for the production of passive income. We will make this determination following the end of any particular tax year. In addition, because the value of our assets for purposes of the asset test will generally be determined based on the market price of our Ordinary Shares and because cash is generally considered to be an asset held for the production of passive income, our PFIC status will depend in large part on the market price of our Ordinary Shares and the amount of cash we raise in this offering. Accordingly, fluctuations in the market price of the Ordinary Shares may cause us to become a PFIC. In addition, the application of the PFIC rules is subject to uncertainty in several respects and the composition of our income and assets will be affected by how, and how quickly, we spend the cash we raise in this offering. We are under no obligation to take steps to reduce the risk of our being classified as a PFIC, and as stated above, the determination of the value of our assets will depend upon material facts (including the market price of our Ordinary Shares from time to time and the amount of cash we raise in this offering) that may not be within our control. If we are a PFIC for any year during which you hold Ordinary Shares, we will continue to be treated as a PFIC for all succeeding years during which you hold Ordinary Shares. If we cease to be a PFIC and you did not previously make a timely "mark-to-market" election as described below, however, you may avoid some of the adverse effects of the PFIC regime by making a "purging election" (as described below) with respect to the Ordinary Shares.

If we are a PFIC for your taxable year(s) during which you hold Ordinary Shares, you will be subject to special tax rules with respect to any "excess distribution" that you receive and any gain you realize from a sale or other disposition (including a pledge) of the Ordinary Shares, unless you make a "mark-to-market" election as discussed below. Distributions you receive in a taxable year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years or your holding period for the Ordinary Shares will be treated as an excess distribution. Under these special tax rules:

● the excess distribution or gain will be allocated ratably over your holding period for the Ordinary Shares;

● the amount allocated to your current taxable year, and any amount allocated to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and

● the amount allocated to each of your other taxable year(s) will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.

The tax liability for amounts allocated to years prior to the year of disposition or "excess distribution" cannot be offset by any net operating losses for such years, and gains (but not losses) realized on the sale of the Ordinary Shares cannot be treated as capital, even if you hold the Ordinary Shares as capital assets.

A U.S. Holder of "marketable stock" (as defined below) in a PFIC may make a mark-to-market election under Section 1296 of the US Internal Revenue Code for such stock to elect out of the tax treatment discussed above. If you make a mark-to-market election for first taxable year which you hold (or are deemed to hold) Ordinary Shares and for which we are determined to be a PFIC, you will include in your income each year an amount equal to the excess, if any, of the fair market value of the Ordinary Shares as of the close of such taxable year over your adjusted basis in such Ordinary Shares, which excess will be treated as ordinary income and not capital gain. You are allowed an ordinary loss for the excess, if any, of the adjusted basis of the Ordinary Shares over their fair market value as of the close of the taxable year. Such ordinary loss, however, is allowable only to the extent of any net mark-to-market gains on the Ordinary Shares included in your income for prior taxable years. Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other disposition of the Ordinary Shares, are treated as ordinary income. Ordinary loss treatment also applies to any loss realized on the actual sale or disposition of the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market gains previously included for such Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such income or loss amounts. If you make a valid mark-to-market election, the tax rules that apply to distributions by corporations which are not PFICs would apply to distributions by us, except that the lower applicable capital gains rate for qualified dividend income discussed above under "— Taxation of Dividends and Other Distributions on our Ordinary Shares" generally would not apply.

The mark-to-market election is available only for "marketable stock," which is stock that is traded in other than de minimis quantities on at least 15 days during each calendar quarter ("regularly traded") on a qualified exchange or other market (as defined in applicable U.S. Treasury regulations), including the Nasdaq Capital Market. If the Ordinary Shares are regularly traded on the Nasdaq Capital Market and if you are a holder of Ordinary Shares, the mark-to-market election would be available to you were we to be or become a PFIC.

Alternatively, a U.S. Holder of stock in a PFIC may make a "qualified electing fund" election under Section 1295(b) of the US Internal Revenue Code with respect to such PFIC to elect out of the tax treatment discussed above. A U.S. Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross income for a taxable year such holder's pro rata share of the corporation's earnings and profits for the taxable year. The qualified electing fund election, however, is available only if such PFIC provides such U.S. Holder with certain information regarding its earnings and profits as required under applicable U.S. Treasury regulations. We do not currently intend to prepare or provide the information that would enable you to make a qualified electing fund election. If you hold Ordinary Shares in any taxable year in which we are a PFIC, you will be required to file U.S. Internal Revenue Service Form 8621 in each such year and provide certain annual information regarding such Ordinary Shares, including regarding distributions received on the Ordinary Shares and any gain realized on the disposition of the Ordinary Shares.

If you do not make a timely "mark-to-market" election (as described above), and if we were a PFIC at any time during the period you hold our Ordinary Shares, then such Ordinary Shares will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in a future year, unless you make a "purging election" for the year we cease to be a PFIC. A "purging election" creates a deemed sale of such Ordinary Shares at their fair market value on the last day of the last year in which we are treated as a PFIC. The gain recognized by the purging election will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. As a result of the purging election, you will have a new basis (equal to the fair market value of the Ordinary Shares on the last day of the last year in which we are treated as a PFIC) and holding period (which new holding period will begin the day after such last day) in your Ordinary Shares for tax purposes.

IRC Section 1014(a) provides for a step-up in basis to the fair market value for our Ordinary Shares when inherited from a decedent that was previously a holder of our Ordinary Shares. However, if we are determined to be a PFIC and a decedent that was a U.S. Holder did not make either a timely qualified electing fund election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) our Ordinary Shares, or a mark-to-market election and ownership of those Ordinary Shares are inherited, a special provision in IRC Section 1291(e) provides that the new U.S. Holder's basis should be reduced by an amount equal to the Section 1014 basis minus the decedent's adjusted basis just before death. As such if we are determined to be a PFIC at any time prior to a decedent's passing, the PFIC rules will cause any new U.S. Holder that inherits our Ordinary Shares from a U.S. Holder to not get a step-up in basis under Section 1014 and instead will receive a carryover basis in those Ordinary Shares.

You are urged to consult your tax advisors regarding the application of the PFIC rules to your investment in our Ordinary Shares and the elections discussed above.

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***Information Reporting and Backup Withholding***

Dividend payments with respect to our Ordinary Shares and proceeds from the sale, exchange or redemption of our Ordinary Shares may be subject to information reporting to the U.S. Internal Revenue Service and possible U.S. backup withholding under Section 3406 of the US Internal Revenue Code with at a current flat rate of 24%. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number and makes any other required certification on U.S. Internal Revenue Service Form W-9 or who is otherwise exempt from backup withholding. U.S. Holders who are required to establish their exempt status generally must provide such certification on U.S. Internal Revenue Service Form W-9. U.S. Holders are urged to consult their tax advisors regarding the application of the U.S. information reporting and backup withholding rules.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the U.S. Internal Revenue Service and furnishing any required information. We do not intend to withhold taxes for individual shareholders. Transactions effected through certain brokers or other intermediaries, however, may be subject to withholding taxes (including backup withholding), and such brokers or intermediaries may be required by law to withhold such taxes.

Under the Hiring Incentives to Restore Employment Act of 2010, certain U.S. Holders are required to report information relating to our Ordinary Shares, subject to certain exceptions (including an exception for Ordinary Shares held in accounts maintained by certain financial institutions), by attaching a complete Internal Revenue Service Form 8938, Statement of Specified Foreign Financial Assets, with their tax return for each year in which they hold Ordinary Shares. Failure to report such information could result in substantial penalties. You should consult your own tax advisor regarding your obligation to file a Form 8938.

**UNDERWRITING**

We will enter into an underwriting agreement with R.F. Lafferty & Co., Inc., as the Representative of the several underwriters in this Offering, with respect to the Ordinary Shares to be sold in this Offering. Subject to certain conditions, we will agree to sell to the underwriters, and the underwriters have severally agreed to purchase the number of Ordinary Shares provided below opposite their respective names.

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| | |
|:---|:---|
| **Underwriters** | **Number of**<br> **Ordinary Shares** |
| R.F. Lafferty & Co., Inc. | [\*] |
| Total |  |

---

A copy of the form of underwriting agreement will be filed as an exhibit to the registration statement of which this prospectus is part.

The underwriters are offering the Ordinary Shares subject to their acceptance of the Ordinary Shares from us and subject to prior sale. The underwriting agreement will provide that the obligations of the several underwriters to pay for and accept delivery of the Ordinary Shares offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated to take and pay for all of the Ordinary Shares if any such Ordinary Shares are taken. However, the underwriters are not required to take or pay for the securities covered by the Representative's over-allotment option described below.

**Over-Allotment Option**

We have granted the Representative an over-allotment option. This option, which is exercisable for up to 45 days after the date of this prospectus, permits the Representative to purchase a maximum of fifteen percent (15%) of the Ordinary Shares sold in the Offering from us, solely to cover over-allotments, if any. If the Representative exercises all or part of this option, it will purchase Ordinary Shares covered by the option at the initial public offering price per Ordinary Share that appears on the cover page of this prospectus, less the underwriting discount. If this option is exercised in full, the total net proceeds, before expenses, to us will be $11.5 million.

**Underwriting Discounts and Expenses**

The Representative has advised us that the underwriters propose to offer the Ordinary Shares to the public at the public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession. The underwriters may allow, and certain dealers may reallow, a discount from the concession to certain brokers and dealers. After this Offering, the initial public offering price, concession, and reallowance to dealers may be changed by the Representative. No such change shall change the amount of proceeds to be received by us as set forth on the cover page of this prospectus. The Ordinary Shares are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

The following table shows the initial public offering price, underwriting discount, and proceeds, before expenses, to us. The information assumes either no exercise or full exercise by the Representative of the over-allotment option, as indicated.

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| | | | |
|:---|:---|:---|:---|
|  | **Per Ordinary Share** | **Total Without**<br> **Over-Allotment Option** | **Total With Full**<br> **Over-Allotment Option** |
| Initial public offering price | $| $| $|
| Underwriting discounts<sup>(1)</sup> | $| $| $|
| Proceeds, before expenses, to us | $| $| $|

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(1) Represents an underwriting discount equal to 7.0% per Ordinary Share or 6.0% per Ordinary Share for the proceeds from investors identified and introduced directly by the Company.

We have agreed to pay to the underwriters by deduction from the net proceeds of the Offering contemplated herein; a non-accountable expense allowance equal to 1.0% of the gross proceeds received by us from the sale of the Ordinary Shares.

We have agreed to pay an expense deposit of $50,000 (the "Advance") to the Representative, $25,000 upon execution of an engagement letter relating to this Offering and the other $25,000 due upon the initial filing of the registration statement, which will be applied against the actual out-of-pocket accountable expenses that will be incurred by the underwriters in connection with this Offering, and will be reimbursed to us to the extent not incurred.

We have also agreed to pay the Representative's out-of-pocket accountable expenses, including but not limited to road show expenses for the Offering, the costs of all mailing and printing of the underwriting documents, registration statements, prospectuses and all amendments, supplements and exhibits, the costs and expenses of the public relations firm, background checks on the Company's senior management and board of directors, the $5,000 cost associated with the Representative's clearing system data services and communications expenses, and the $10,000 cost associated with the Representative's Capital IQ system for comparable company analysis and valuation. We have agreed to be responsible for the Representative's legal fees and expenses irrespective of whether this Offering is consummated or not and the maximum amount of legal fees, costs, and expense incurred by the Representative that we will be responsible must not exceed (i) $75,000, in the event that there is no closing of this Offering, and (ii) $200,000, in the event that there is a closing of this Offering.

We estimate that expenses payable by us in connection with this Offering, other than the underwriting discounts referred to above and underwriter expense allowance and reimbursement, will be approximately $1.165 million.

**Indemnification**

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained in the underwriting agreement, or to contribute to payments that the underwriters may be required to make in respect of those liabilities.

**Tail Financing**

If, during the period that is 12 months following the closing of this Offering, we consummate a financing with investors with whom we have had a conference call or a meeting arranged by the Representative during the period in which we engaged the Representative, we will pay the representative a fee equal 7.0% of the proceeds of such financing and warrants to purchase a number of Ordinary Shares equal to 4.0% of the aggregate number of Ordinary Shares sold in this Offering at an exercise price equal to 110% of the Offering price of the Ordinary Shares sold in this Offering.

**Lock-Up Agreements**

We, all of our directors, officers and any other holder(s) of 5.0% of the Ordinary Shares as of the effective date of this prospectus (and all holders of securities exercisable for or convertible into Ordinary Shares) have agreed, subject to certain exceptions set forth in the underwriting agreement, to enter into customary lock-up agreements with the Representative that, for a period of 180 days after the closing of this Offering, we and they will not, without the prior written consent of the Representative, offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any of our securities.

**Right of First Refusal**

We have agreed to grant the Representative the right of first refusal to act as sole managing underwriter and dealer manager, book runner or sole placement agent for any and all future public or private equity, equity-linked or debt (excluding commercial bank debt) offering for a period of 12 months from the closing of this Offering, excluding (i) shares issued under any compensation or stock option plan approved by our shareholders and (ii) equity securities issued as an incentive or compensation for our employees, directors or officers our those of our subsidiaries.

**Listing**

We have applied to list the Ordinary Shares on Nasdaq under the symbol "CTMB". At this time, Nasdaq has not yet approved our application to list the Ordinary Shares, and there is no guarantee or assurance that the Ordinary Shares will be approved for listing on Nasdaq.

**Price Stabilization, Short Positions, and Penalty Bids**

In connection with the Offering, the underwriters may engage in stabilizing transactions, over-allotment transactions, syndicate covering transactions, and penalty bids in accordance with Regulation M under the Exchange Act:

● Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.

● Over-allotment transactions involve sales by the underwriters of Ordinary Shares in excess of the number of Ordinary Shares the underwriters are obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position or a naked short position. In a covered short position, the number of Ordinary Shares over-allotted by the underwriters is not greater than the number of Ordinary Shares that they may purchase in the over-allotment option. In a naked short position, the number of Ordinary Shares involved is greater than the number of Ordinary Shares in the over-allotment option. The underwriters may close out any covered short position by either exercising the over-allotment option and/or purchasing Ordinary Shares in the open market.

● Syndicate covering transactions involve purchases of Ordinary Shares in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of Ordinary Shares to close out the short position, the underwriters will consider, among other things, the price of Ordinary Shares available for purchase in the open market as compared to the price at which they may purchase Ordinary Shares through the over-allotment option. If the underwriters sell more Ordinary Shares than could be covered by the over-allotment option, a naked short position, the position can only be closed out by buying Ordinary Shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there could be downward pressure on the price of the Ordinary Shares in the open market after pricing that could adversely affect investors who purchase in the Offering.

● Penalty bids permit the Representative to reclaim a selling concession from a syndicate member when the Ordinary Shares originally sold by the syndicate member are purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.

These stabilizing transactions, over-allotment transactions, syndicate covering transactions, and penalty bids may have the effect of raising or maintaining the market price of the Ordinary Shares or preventing or mitigating a decline in the market price of the Ordinary Shares. As a result, the price of the Ordinary Shares may be higher than the price that might otherwise exist in the open market. Neither we nor the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of the Ordinary Shares. In addition, neither we nor the underwriters make any representation that the underwriters will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued without notice.

**Electronic Distribution**

A prospectus in electronic format may be made available on websites or through other online services maintained by one or more of the underwriters of this Offering, or by their affiliates. Other than this prospectus in electronic format, the information on any underwriter's website and any information contained in any other website maintained by an underwriter is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or any underwriter in its capacity as underwriter, and should not be relied upon by investors.

**Determination of the Initial Public Offering Price**

Prior to this Offering, there has been no public market for the Ordinary Shares. The initial public offering price of the Ordinary Shares offered by this prospectus will be determined by negotiation between us and the underwriters. Among the factors to be considered in determining the initial public offering price of the Ordinary Shares are:

● Our history and our prospects;

● Our financial information and historical performance;

● The industry in which we operate;

● The status and development prospects for our services;

● The experience and skills of our senior management; and

● The general condition of the securities markets at the time of this Offering.

We offer no assurances that the public offering price will correspond to the price at which the Ordinary Shares will trade in the public market subsequent to this Offering or that an active trading market for the Ordinary Shares will develop and continue after this Offering.

**Selling Restrictions Outside the United States**

No action may be taken in any jurisdiction other than the United States that would permit a public offering of the Ordinary Shares or the possession, circulation, or distribution of this prospectus in any jurisdiction where action for that purpose is required. Accordingly, the Ordinary Shares may not be offered or sold, directly or indirectly, and neither the prospectus nor any other offering material or advertisements in connection with the Ordinary Shares may be distributed or published in or from any country or jurisdiction except under circumstances that will result in compliance with any applicable laws, rules, and regulations of any such country or jurisdiction.

**EXPENSES RELATING TO THIS OFFERING**

Set forth below is an itemization of the total expenses, excluding underwriting discounts that we expect to incur in connection with this Offering. With the exception of the SEC registration fee, the FINRA filing fee, and the Nasdaq listing fee, all amounts are estimates.

---

| | |
|:---|:---|
| SEC Registration Fee | $6288 |
| Nasdaq Listing Fee | $50000 |
| FINRA Filing Fee | $2350 |
| Legal Fees and Expenses | $500000 |
| Accounting Fees and Expenses | $300000 |
| Printing and Engraving Expenses | $10000 |
| Underwriter Out-of-Pocket Non-Accountable Expense Allowance | $200000 |
| Miscellaneous Expenses | $100000 |
| **Total Expenses** | $1168638 |

---

These expenses will be borne by us. Underwriting discounts will be borne by us in proportion to the numbers of Ordinary Shares sold in the Offering.

**LEGAL MATTERS**

We are being represented by Hunter Taubman Fischer & Li LLC with respect to certain legal matters as to United States federal securities and New York State law. The validity of the Ordinary Shares offered in this Offering and certain other legal matters as to Cayman Islands law will be passed upon for us by Conyers Dill & Pearman, our counsel as to Cayman Islands law. Legal matters as to Japanese law will be passed upon for us by TMI Associates, our counsel as to Japanese law. Hunter Taubman Fischer & Li LLC may rely upon Conyers Dill & Pearman with respect to matters governed by Cayman Islands law and TMI Associates with respect to matters governed by Japanese law.

Rimon P.C. is acting as counsel to the Representative in connection with this Offering with respect to certain legal matters as to United States federal securities and New York State law.

**EXPERTS**

The financial statements for the fiscal years ended May 31, 2024 and 2023 included in this prospectus have been so included in reliance on the report of Onestop Assurance PAC, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement on Form F-1, of which this prospectus forms a part, including relevant exhibits, under the Securities Act with respect to the underlying Ordinary Shares to be sold in this Offering. This prospectus, which constitutes a part of the registration statement on Form F-1, does not contain all of the information contained in the registration statement. You should read our registration statements and their exhibits and schedules for further information with respect to us and the Ordinary Shares.

Immediately upon the effectiveness of the registration statement on Form F-1 of which this prospectus forms a part, we will become subject to periodic reporting and other informational requirements of the Exchange Act as applicable to foreign private issuers. Accordingly, we will be required to file reports, including annual reports on Form 20-F, and other information with the SEC. All information filed with the SEC can be obtained over the internet at the SEC's website at *www.sec.gov*. You can request copies of documents, upon payment of a duplicating fee, by writing to the SEC.

**CENTER HOLDINGS INC. AND SUBSIDIARIES**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| **CONTENTS** | **Page** |
| [Consolidated Balance Sheets as of November 30, 2024 (Unaudited) and May 31, 2024](#fin_02) | F-2 |
| [Consolidated Statements of Income And Comprehensive Income for the Six Months Ended November 31, 2024 and 2023 (Unaudited)](#fin_03) | F-4 |
| [Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended November 31, 2024 and 2023 (Unaudited)](#fin_04) | F-5 |
| [Consolidated Statements of Cash Flows for the Six Months Ended November 31, 2024 and 2023 (Unaudited)](#fin_05) | F-6 |
| [Notes to Consolidated Financial Statements for the Six Months Ended November 31, 2024 and 2023 (Unaudited)](#fin_06) | F-7 |
| [Report of Independent Registered Public Accounting Firm](#fin_01) (PCAOB ID: 6732) | F-18 |
| [Consolidated Balance Sheets as of May 31, 2024 and 2023](#fin_07) | F-19 |
| [Consolidated Statements of Income And Comprehensive Income for the Fiscal Years Ended May 31, 2024 and 2023](#fin_08) | F-21 |
| [Consolidated Statements of Changes in Shareholders' Equity for the Fiscal Years Ended May 31, 2024 and 2023](#fin_09) | F-22 |
| [Consolidated Statements of Cash Flows for the Fiscal Years Ended May 31, 2024 and 2023](#fin_10) | F-23 |
| [Notes to Consolidated Financial Statements](#fin_11) | F-24 |

---

**Center Holdings Inc.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Yen in thousands)**

---

| | | |
|:---|:---|:---|
|  | **November 30, 2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(audited)** |
| ASSETS |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and deposits | ¥309688 | ¥365017 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 495087 | 466741 |
| &nbsp;&nbsp;&nbsp;Inventories | 15697 | 20684 |
| &nbsp;&nbsp;&nbsp;Short-term loans receivable - related party |  | 40976 |
| &nbsp;&nbsp;&nbsp;Income taxes receivable | 56701 | 38635 |
| &nbsp;&nbsp;&nbsp;Share offering costs | 133120 | 39409 |
| &nbsp;&nbsp;&nbsp;Other receivable | 45450 | 23251 |
| &nbsp;&nbsp;&nbsp;Other current assets | 7978 | 14801 |
| &nbsp;&nbsp;&nbsp;Total current assets | 1063721 | 1009514 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 84678 | 84289 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 27299 | 41096 |
| &nbsp;&nbsp;&nbsp;Software | 20088 | 7398 |
| &nbsp;&nbsp;&nbsp;Guarantee deposits | 23344 | 18256 |
| &nbsp;&nbsp;&nbsp;Other assets | 34350 | 34471 |
| &nbsp;&nbsp;&nbsp;Total non-current assets | 189759 | 185510 |
| Total assets | ¥1253480 | ¥1195024 |

---

*See the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.*

**Center Holdings Inc.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Yen in thousands, except share data)**

---

| | | |
|:---|:---|:---|
|  | **November 30, 2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(audited)** |
| LIABILITIES |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | ¥310480 | ¥309558 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 50526 | 41624 |
| &nbsp;&nbsp;&nbsp;Accrued expenses - related party | 204 | 308 |
| &nbsp;&nbsp;&nbsp;Accrued consumption taxes | 25454 | 30897 |
| &nbsp;&nbsp;&nbsp;Current portion of bonds | 19455 | 19358 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term loans | 10008 | 10008 |
| &nbsp;&nbsp;&nbsp;Current operating lease liabilities | 17817 | 22697 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 14335 | 29186 |
| &nbsp;&nbsp;&nbsp;Deposits received | 10078 | 8536 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 47806 | 415 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 10919 | 3669 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 517082 | 476256 |
| Non-current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | 39502 | 49254 |
| &nbsp;&nbsp;&nbsp;Long-term loans | 13304 | 18308 |
| &nbsp;&nbsp;&nbsp;Non-current operating lease liabilities | 8275 | 19905 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | 52009 | 36252 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 6688 | 7510 |
| Total non-current liabilities | 119778 | 131229 |
| Total liabilities | ¥636860 | ¥607485 |
| SHAREHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary shares:50,000,000 shares authorized, 24,720,473 shares issued and outstanding as of November 30, 2024 and May 31, 2024 with $0.0000001 stated value.\* | ¥0 | ¥0 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 30700 | 30700 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 585920 | 556839 |
| Total shareholders' Equity | 616620 | 587539 |
| Total liabilities and equity | ¥1253480 | ¥1195024 |

---

*\* The number of shares reflects the retrospective presentation of share splits and a share issue described in Note 12.*

 

*See the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.*

**Center Holdings Inc.**

**UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**

**(Yen in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended**<br> **November 30,** | **For the Six Months Ended**<br> **November 30,** |
|  | **2024** | **2023** |
| Revenue | ¥1020109 | ¥764282 |
| Cost of revenue | (498181) | (435659) |
| Gross profit | 521928 | 328623 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (490879) | (267931) |
| Total operating expenses | (490879) | (267931) |
| Operating income | 31049 | 60692 |
| Other income (expenses): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expenses | (629) | (764) |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains | 3570 |  |
| &nbsp;&nbsp;&nbsp;Other income, net | 244 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expenses), net | 3185 | (710) |
| Income before income taxes | 34234 | 59982 |
| Income tax expenses | (5153) | (26387) |
| Net income | 29081 | 33595 |
| Other comprehensive income | - | - |
| Total comprehensive income | ¥29081 | ¥33595 |
| Earnings per share: |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | ¥1.18 | ¥1.36 |
| Weighted average number of ordinary shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted\* | 24720473 | 24720473 |

---

 

*\* The number of shares reflects the retrospective presentation of share splits and a share issue described in Note 12.*

 

*See the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.*

**Center Holdings Inc.**

**CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY**

**(Yen in thousands, except share data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shareholders' equity** | **Shareholders' equity** | **Shareholders' equity** | **Shareholders' equity** | |
|  | **Number of Shares\*** | **Share Capital** | **Additional paid in capital** | **Retained Earnings** |<br>**Total** |
| Balance at May 31, 2023 <br>(audited) | 24720473 | ¥0 | ¥30700 | ¥516561 | ¥547261 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  | 33595 | 33595 |
| Balance at November 30, 2023 <br>(unaudited) | 24720473 | ¥0 | ¥30700 | ¥550156 | ¥580856 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shareholders' equity** | **Shareholders' equity** | **Shareholders' equity** | **Shareholders' equity** | |
|  | **Number of Shares\*** | **Share Capital** | **Additional paid in capital** | **Retained Earnings** |<br>**Total** |
| Balance at May 31, 2024 <br>(audited) | 24720473 | ¥0 | ¥30700 | ¥556839 | ¥587539 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  | 29081 | 29081 |
| Balance at November 30, 2024 <br>(unaudited) | 24720473 | ¥0 | ¥30700 | ¥585920 | ¥616620 |

---

*See the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.*

*\* The number of shares reflects the retrospective presentation of share splits and a share issue described in Note 12.*

 

**Center Holdings Inc.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Yen in thousands)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended**<br> **November 30,** | **For the Six Months Ended**<br> **November 30,** |
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | ¥29081 | ¥33595 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 3355 | 3566 |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains | (3570) |  |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable | (28347) | 68386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in inventories | 4987 | (13608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other receivable | (22199) | 280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in income taxes receivable | (18066) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in accounts payable | (618) | (47040) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accrued expenses | 8902 | 11668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in contract liabilities | (14851) | 2414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in advanced receipts | 3500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in consumption tax receivable | (5961) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in deferred tax liabilities | 15757 | 7912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in income taxes payable | 47391 | (88280) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in accrued consumption taxes | (5443) | (40589) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | (528) | (407) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) operating activities | 13390 | (62103) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (14895) | (1679) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from short-term investment | 13570 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment received on short-term loans receivable - related party | 40976 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of short-term loans receivable | - | (20180) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) investing activities | 39651 | (21859) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments for long-term loans | (5004) | (5004) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of bonds | (9655) | (9558) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of listing expenses | (93711) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows (used in) financing activities | (108370) | (14562) |
| Net (decrease) in cash and cash equivalents | (55329) | (98524) |
| Cash and cash equivalents at the beginning of period | 365017 | 517101 |
| Cash and cash equivalents at the end of period | ¥309688 | ¥418577 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| Cash paid for interest | ¥284 | ¥321 |
| Cash paid for taxes | 8549 | 107036 |
| Cash refund for taxes | ¥48478 | ¥- |

---

*See the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.*

**Center Holdings Inc.**

**NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS**

**November 30, 2024**

**NOTE 1 – ORGANIZATION AND BUSINESS**

***Description of Business***

Center Holdings Inc. was incorporated on April 10, 2025 to act as the holding company of Center Mobile Co., Ltd., which is a limited liability company organized under the laws of Japan and an operating entity in Japan ("Center Mobile"). Center Mobile and its subsidiary (collectively, the "Company") are a mobile connectivity and wireless communications services provider in Japan, offering a full range of 4G LTE voice, texting, and data services covering all areas throughout Japan. The Company was incorporated in Japan in June 2020. The Company also has an innovative business model that allows its customers to lower their monthly fees for the Company's services by watching advertisements or playing games through its proprietary app, "PLAIO." The Company offers mobile connectivity and wireless communications services on a monthly basis for specified quantities of minutes or amounts of data selected in advance. The Company currently also operates an outsourcing business, under which it works as a staffing agency, and its goal and policy are to provide a more stable working environment and conditions for job seekers. Unlike most of the staffing agencies in Japan that only hire job seekers and dispatch them to their corporate clients without providing much training, leaving the training to such corporate clients, the Company hires job seekers as its full-time employees and provides basic training to help them fit into the workplaces and positions that the Company considers the best match for them based on their willingness, interests, personalities, experiences, requirements, and the Company's corporate clients' needs before dispatching them to its corporate clients. In addition to the mobile network services and outsourcing service, the Company currently also operates a travel business. Through cooperating with the travel business partners, the Company operates a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans or hotel plus Shinkansen (Japanese bullet trains) ticket travel plans offered by its travel business partners.

The consolidated financial statements of the Company include Center Mobile and the entity below:

---

| | | | |
|:---|:---|:---|:---|
|  | Date of Incorporation <br> or Acquisition | Place of <br> Incorporation | Percentage of <br>Direct or Indirect <br>Economic Ownership |
| ***Subsidiary*** |  |  |  |
| Pay Storage Co., Ltd. ("Pay Storage") | June 2022 | Japan | 100.0% |

---

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation and Principles of Consolidation***

The unaudited condensed consolidated financial statements and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). The financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles of the United States ("U.S. GAAP").

The accompanying unaudited condensed consolidated financial statements are presented in Japanese yen, the currency of the country in which the Company is incorporated and principally operates. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany transactions and balances have been eliminated in consolidation.

The unaudited condensed consolidated financial statements do not include all of the information and disclosure required by the U.S. GAAP for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments consisting of normal recurring nature considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended May 31, 2024.

***Reclassification***

Certain amounts in the prior period have been reclassified to conform to the current period presentation.

 ****

***Use of Estimates***

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Significant estimates and assumptions are reflected in valuation and disclosure of accounts, including inventories, long-lived assets, leases, asset retirement obligations, and deferred tax liabilities. Actual results could differ from these good faith estimates and judgments.

***Cash and Deposits***

Cash and deposits include cash on hand and deposits in banks that are unrestricted as to withdrawal or use. All highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value with original maturity periods of three months or less.

***Accounts Receivable***

Accounts receivable represent the Company's right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). The Company's account receivable balances are unsecured, bear no interest, and are due upon normally within a year from the date of the sale. The balance is presented net of an allowance for credit losses. Allowance for credit losses for accounts receivable is maintained for all customers based on ASC 326 "Financial Instruments—Credit Losses," based on historical experiences of credit losses and reasonable and supportable forecasts. An additional reserve for individual accounts is recorded when the Company becomes aware of a customer's inability to meet its financial obligations, such as in the case of bankruptcy filings. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. When all collection options, including legal recourse, are exhausted, the accounts or portions thereof are deemed to be uncollectable and charged against the allowance.

There was no allowance for credit losses as of November 30, 2024 and May 31, 2024.

***Inventories***

Inventories consist of merchandise, including smartphone-related products and cosmetic products. Estimates of the lower of cost and net realizable value of inventory are determined by comparing the actual cost of the inventory to the estimated selling prices in the ordinary course of business based on current market and economic conditions, less reasonably predictable costs of completion, disposal, and transportation of the inventory.

***Property and Equipment***

Property and equipment are stated at cost.

---

| | | |
|:---|:---|:---|
|  | Useful life | Depreciation method |
| Buildings | 24-47 years | Straight-line method |
| Leasehold improvements | 10 years | Straight-line method |
| Vehicles | 4 years | Straight-line method |
| Tool, furniture, and fixtures | 3 years | Straight-line method |
| Land | Indefinite |  |

---

Maintenance and repairs are charged to expenses as incurred. Improvements of a major nature are capitalized. Construction in progress is not depreciated until ready for service at the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts, and any gains or losses are reflected in income.

The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment" ("ASC No. 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment is recognized by measuring the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment losses were recorded during the six months ended November 30, 2024 and 2023.

***Revenue Recognition***

The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). The core principle of ASC 606 is that the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The ASC 606 revenue recognition model consists of the following five steps:

&nbsp;&nbsp;&nbsp;&nbsp;(1) identifying a contract with a customer,

(2) identifying the performance obligations in the contract,

(3) determining the transaction price,

(4) allocating the transaction price to the performance obligations in the contract, and

(5) recognizing revenue when (or as) the entity satisfies a performance obligation.

For an arrangement to qualify as a contract, it must be probable that the Company will collect the consideration to which it is entitled for the goods or services to be transferred. Once the contract is determined to be within the scope of ASC 606, the Company assesses the promised goods or services in each contract and determines whether those are performance obligations and the related transaction price. The Company then recognizes the sale of goods based on the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied.

The Company recognizes revenue from mobile network service, sales of advertisement, outsourcing service, and travel business sales.

*Mobile network service segment*

 

*<u>Revenue from mobile network service</u>*

The Company provides flexible monthly mobile network plans to customers for a full range of 4G LTE voice, texting, and data services covering all areas throughout Japan. Customers can select plans with specified transferable amounts of voice plus and data services or plans with only specified transferable amounts of data and enter into the contracts for each plan with the Company. Revenue from mobile network service is recognized over time during the period the network services are provided to end users, corresponding to the point at which the time when the promised service is transferred to customers and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to customers. Cost of revenue primarily consists of fees for mobile connectivity and wireless communications services from mobile virtual network enablers (MVNEs) .

Through the proprietary app, "PLAIO," the Company receives advertising fees from advertisers and uses them to reward customers who watched advertisements to lower their monthly fees for mobile network services. By watching a video advertisement with a length ranging from 30 seconds to around 60 seconds through PLAIO, customers can receive five points, with each point being used as 0.1 Japanese yen by the customers to deduct their monthly fees for the mobile network services. The Company defers revenue equivalent to the estimated service price of points earned by end users, which can be applied to reduce their monthly fees for the mobile network services as each point is earned. A corresponding liability is recorded as deferred revenue when each point is earned. This deferral is based on the estimated value of the mobile network services for which the reward is expected to be redeemed, net of estimated unredeemed points. Points generally expire when the mobile network service contracts are terminated. When a customer redeems an earned reward, we recognize revenue for the redeemed product and reduce the related deferred revenue.

*Advertising segment*

 

*<u>Revenue from sales of advertising</u>*

The Company receives the advertising fees from advertisers and uses them to reward users who watch advertisements through the Company's mobile network. Revenue from sales of advertising is recognized at a point in time when the Company completes providing advertisements to users through the Company's mobile network, corresponding to the point at which the promised service is transferred to users and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to users. Revenue from mobile network service is recognized over time during the period the network services are provided to users, corresponding to the point at which the promised service is transferred to users and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to users. The Company recorded only intersegment cost of revenues.

*Outsourcing service segment*

 

*<u>Revenue from outsourcing service</u>*

The Company hires job seekers as its full-time employees and dispatches them to corporate customers as a staffing agency. Revenue from outsourcing services as a staffing agency is recognized over time during the period the human resources are provided to the corporate customers, corresponding to the point at which the promised service is transferred to the customers and the performance obligation is satisfied. In addition, the Company also serves as an intermediary who introduces job seekers to appropriate hirers based on job seekers' willingness, interests, personalities, experiences, requirements, and the hirers' needs. Revenue from outsourcing service as an intermediary is recognized at a point in time when a customer hires a job seeker introduced by the Company and after the period stipulated in the contract has elapsed, which is also the time when the promised service is transferred to customers and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to customers. Cost of revenues primarily consists of salaries and outsourcing expenses.

*Travel business segment*

 

*<u>Revenue from travel business sales</u>*

The Company operates a travel business. Through cooperating with the Company's travel business partners, the Company operates a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans or hotel plus Shinkansen (Japanese bullet trains) ticket travel plans offered by the Company's partners. The Company charges its subscribers a monthly subscription fee. Revenue from travel business sales is recognized over time during the period the Company provides subscription services to subscribers that allow them to purchase travel plans through the Company's portal, which is the time when the promised service is transferred to subscribers and the performance obligation is satisfied. The Company determined that the Company is the principal in this arrangement since another party is not involved in providing services to customers. Cost of revenues primarily consists of fees for the Company's travel business partners.

***Leases***

The Company determines if an arrangement is or contains a lease at inception or modification of the arrangement. An arrangement is or contains a lease if the right to control the use of an identified asset is conveyed for a period in exchange for consideration. Control over the use of the identified assets means that the lessee has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset.

If the Company is a lessee, it classifies its lease as either a finance lease or an operating lease. If the Company is a lessor, it classifies its lease as a sale-type lease, a direct financing lease, or an operating lease. The Company uses the following criteria to determine if a lease is a finance lease (as a lessee) or a sales-type lease or a direct financing lease (as a lessor):

(i) ownership of the underlying asset is transferred from lessor to lessee by the end of the lease term;

(ii) an option to purchase is reasonably certain to be exercised;

(iii) the lease term is for the major part of the underlying asset's remaining economic life;

(iv) the present value of lease payments equals or exceeds substantially all of the fair value of the underlying assets;

or

(v) the underlying asset is specialized and is expected to have no alternative use at the end of the lease term.

If the Company meets any of the above criteria, it accounts for the lease as a finance lease, a sales-type lease, or a direct financing lease. If the Company does not meet any of the criteria, it accounts for the lease as an operating lease.

*<u>Lessee accounting</u>*

The Company recognizes right-of-use assets and lease liabilities for all leases, except those with a term of 12 months or less, as it has elected to apply the short-term lease recognition exemption. Right-of-use assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are classified and recognized at the commencement date of a lease. Lease liabilities are measured based on the present value of fixed lease payments over the lease term. Right-of-use assets consist of (i) initial measurement of the lease liability; (ii) lease payments made to the lessor at or before the commencement date, less any lease incentives received; and (iii) initial direct costs incurred by the Company.

As the rates implicit on the Company's leases for which it is the lessee are not readily determinable, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of lease payments. When determining the incremental borrowing rate, the Company assesses multiple variables such as lease term, collateral, economic conditions, and its creditworthiness.

***Advertising Expenses***

 

The Company expenses advertising costs as they incurred. Total advertising expenses were ¥147,379 thousand and ¥9,054 thousand for the six months ended November 30, 2024 and 2023, respectively, and were included as part of selling, general, and administrative expenses. Advertising expenses increased due to the intensive promotion for outsourcing services.

***Income Taxes***

The Company adopted FASB ASC 740, Income Taxes, at its inception. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company recognizes the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the tax positions will be sustained upon examination by tax authorities. Benefits from tax positions that meet the more-likely-than-not recognition threshold are measured at the largest amount of benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income taxes in the consolidated statements of operations and comprehensive income.

***Foreign Currency***

The Company maintains its books and record in its local currency, Japanese YEN ("JPY"), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in other income (expenses) in the consolidated statements of operations and comprehensive income.

***Segments***

ASC 280, "Segment Reporting," requires the use of the "management approach" model for segment reporting. The management approach model is based on how a company's chief operating decision maker organizes segments within the Company when making operating decisions, assessing performance, and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

The Company's reportable segments consist of mobile network service segment, advertising segment, outsourcing service segment, and travel business segment.

***Net Income Per Share***

 

Basic net income per share is computed by dividing net income by the weighted average number of ordinary shares outstanding during the reporting period. Diluted net income per share reflects the potential dilution that could occur if stock options and other commitments to issue ordinary shares were exercised or equity awards vest resulting in the issuance of ordinary shares that could share in the net income of the Company.

***Related Parties and Transactions***

The Company identifies related parties, accounts for, and discloses related party transactions in accordance with ASC 850, "Related Party Disclosures," and other relevant ASC standards.

Parties, which can be an entity or individual, are considered to be related if they have the ability, directly or indirectly, to control the Company or exercise significant influence over the Company in making financial and operational decisions. Entities are also considered to be related if they are subject to common control or common significant influence.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

***Recently Issued Accounting Pronouncements***

The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying unaudited condensed consolidated financial statements.

**NOTE 3 - INVENTORIES**

The following table summarizes the components of the Company's inventories as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **November 30, 2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(audited)** |
| Merchandises |  |  |
| &nbsp;&nbsp;&nbsp;Smartphone-related products | ¥9702 | ¥13606 |
| &nbsp;&nbsp;&nbsp;Cosmetic products | 5995 | 7078 |
| **Total** | ¥15697 | ¥20684 |

---

**NOTE 4 – OTHER RECEIVABLE**

Other receivable consisted of receivables due from job seekers. The Company supports job seekers with a certain amount of living expenses. The purpose of this support is to help with living expenses so that job seekers can focus on finding a job and to prevent them from leaving the employer, which the Company introduced. The job seekers will repay the Company after they have been employed.

**NOTE 5 – OTHER CURRENT ASSETS**

The following table summarizes the components of the Company's other current assets as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **November 30, 2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(audited)** |
| &nbsp;&nbsp;&nbsp;Consumption taxes receivable | ¥5961 | ¥- |
| &nbsp;&nbsp;&nbsp;Investment<sup>(a)</sup> |  | 10000 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 1205 | 3866 |
| &nbsp;&nbsp;&nbsp;Other | 812 | 935 |
| **Total** | ¥7978 | ¥14801 |

---

(a) Investment mainly consisted of a deposit in Laos, which was fully refunded for the six months ended November 30, 2024.

**NOTE 6 – PROPERTY AND EQUIPMENT**

The following table summarizes the components of the Company's property and equipment as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **November 30, 2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(audited)** |
| Buildings | ¥17922 | ¥17922 |
| Leasehold improvements | 9933 | 7409 |
| Vehicles | 3022 | 2740 |
| Tools, Furniture, and Fixtures | 693 | 693 |
| Land | 65445 | 65445 |
|  | 97015 | 94209 |
| Accumulated depreciation | (12337) | (9920) |
| **Total** | ¥84678 | ¥84289 |

---

Depreciation expenses recorded under selling, general, and administrative expenses for the six months ended November 30, 2024 and 2023 were ¥2,416 thousand and ¥2,967 thousand, respectively.

**NOTE 7 – OTHER ASSETS**

The following table summarizes the components of the Company's other assets as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **November 30, 2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(audited)** |
| Investment<sup>(a)</sup> | ¥33862 | ¥33862 |
| Other | 488 | 609 |
| **Total** | ¥34350 | ¥34471 |

---

(a) Investment mainly consisted of a long-term deposit to acquire a property in the Philippines, the title to which has not been transferred.

**NOTE 8 – OTHER CURRENT LIABILITIES**

The following table summarizes the components of the Company's other assets as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **November 30, 2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(audited)** |
| Allowance for paid leave | ¥4014 | ¥3669 |
| Advanced receipts | 3500 |  |
| Asset retirement obligations - current | 3379 |  |
| Other | 26 | - |
| **Total** | ¥10919 | ¥3669 |

---

**NOTE 9 – BANK BORROWINGS**

The Company's outstanding indebtedness borrowed from a bank consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
| <br>**Indebtedness** | **Weighted average <br> interest rate\*** | **Weighted average <br> years to maturity\*** | **Balance as of <br> November 30, 2024** | **Balance as of <br> May 31,**<br> **2024** |
|  | | | **(unaudited)** | **(audited)** |
| **Long-term loans** |  |  |  |  |
| Unsecured loans |  |  |  |  |
| Fixed rate loans | 0.54% | 2.33 | ¥23312 | ¥28316 |
| **Total long-term loans** | **0.54%** | 2.33 | ¥23312 | ¥28316 |
| Less: current portion |  |  | ¥(10008) | ¥(10008) |
| Non-current portion |  |  | ¥13304 | ¥18308 |

---

\*Pertained to information for loans outstanding as of November 30, 2024.

The Company borrowed loans from a bank for working capital purposes.

Interest expenses for long-term loans were ¥126 thousand and ¥120 thousand for the six months ended November 30, 2024 and 2023, respectively.

The guaranty information for the Company's outstanding loans as of November 30, 2024 and May 31, 2024 consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  | **November 30, 2024** | **November 30, 2024** | **May 31,**<br> **2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(unaudited)** | **(audited)** | **(audited)** |
| Guaranteed by CEO | ¥ | 23312 | ¥ | 28316 |

---

As of November 30, 2024, future minimum payments for long-term loans were as follows:

---

| | |
|:---|:---|
| | **Thousands of Yen** |
| <br>**Fiscal Years Ending May 31,** | **Principal Repayment** |
| Remaining of 2025 | ¥5004 |
| 2026 | 10008 |
| 2027 | 8300 |
| **Total** | ¥23312 |

---

**NOTE 10 – BONDS**

The Company has issued corporate bonds through a bank, which consist of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
| Name of Bank | Principal Amount | Issuance Date | Maturity Date | Annual Interest Rate | Balance as of November 30, 2024 | Balance as of May 31, 2024 |
|  |  |  |  |  | (unaudited) | (audited) |
| Lender 1 | ¥100000 | 9/26/2022 | 9/24/2027 | 0.50% | ¥60000 | ¥70000 |
| Aggregate outstanding principal balances |  |  |  |  | 60000 | 70000 |
| Less: unamortized bond issuance costs |  |  |  |  | (1043) | (1388) |
| Less: current portion |  |  |  |  | (19455) | (19358) |
| Non-current portion |  |  |  |  | ¥39502 | ¥49254 |

---

Interest expenses for corporate bonds were ¥503 thousand and ¥644 thousand for the six months ended November 30, 2024 and 2023, respectively.

**NOTE 11 - LEASES**

*<u>Lessee</u>*

The Company has entered into operating leases for office and stores, with terms ranging from 2 to 4 years. The estimated effect of lease renewal and termination options, as applicable, that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right-of-use assets and lease liabilities is included in the consolidated financial statements.

Operating lease expenses for lease payments are recognized on a straight-line basis over the lease term.

The following table presents supplement information related to the Company's leases:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **For the Six Months Ended**<br> **November 30,** | **For the Six Months Ended**<br> **November 30,** |
|  | **2024** | **2023** |
| Operating lease costs | ¥11195 | ¥10325 |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Operating cash flows from operating leases | ¥12062 | ¥10976 |
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | ¥12400 | ¥- |
| Weighted average remaining lease term (years) | 1.60 | 2.43 |
| Weighted-average discount rate (per annum) | 0.80% | 0.62% |

---

As of November 30, 2024, the future maturity of lease liabilities was as follows:

---

| | |
|:---|:---|
| **Fiscal Years Ending May 31,** | **Thousands of Yen** |
| Remaining of 2025 | ¥9943 |
| 2026 | 13409 |
| 2027 | 2915 |
| Total lease payments | 26267 |
| Less: imputed interest | (175) |
| Total lease liabilities | 26092 |
| Less: current portion | (17817) |
| Non-current lease liabilities | ¥8275 |

---

**NOTE 12- SHAREHOLDERS' EQUITY**

Center Mobile Japan is authorized to issue 50,000,000 ordinary shares. As of November 30, 2024 and May 31, 2024, there were ordinary shares issued 24,720,473 and outstanding. All of the issued shares as of November 30, 2024 and May 31, 2024 were paid in full.

On June 24, 2024, Center Mobile Japan's board of directors approved a 31,129-for-1 share split of its issued and outstanding ordinary shares. On July 1, 2024, Center Mobile Japan effected a 31,129-for-1 share split of its issued and outstanding ordinary shares. In connection with the share split, the total number of outstanding ordinary shares increased from 257 to 8,000,153. The number of shares reflects the retrospective presentation of a 31,129-for-1 share split in 2024.

On November 25, 2024, Center Mobile Japan's board of directors approved a 1-for-3 share split of its issued and outstanding ordinary shares, which was based on a record date of December 11, 2024. On December 12, 2024, Center Mobile Japan effected a 1-for-3 share split of its issued and outstanding ordinary shares following the receipt of shareholder approval. In connection with the share split, the total number of outstanding ordinary shares increased from 8,000,153 to 24,000,459. The number of shares reflects the retrospective presentation of a 1-for-3 share split in 2024.

On January 7, 2025, Center Mobile Japan issued 720,014 share acquisitions rights to Spirit Advisors LLC ("Spirit Advisors"), a Delaware limited liability company, which are exercisable from January 7, 2025 to January 7, 2035 at an exercise price per share of $0.01. On January 22, 2025, Spirit Advisors exercised its 720,014 share acquisitions rights, whereby Center Mobile Japan issued 720,014 ordinary shares to Spirit Advisors on the same date, resulting in 24,720,473 ordinary shares being issued and outstanding. The number of shares reflects the retrospective presentation of a 720,014 share issue in 2025.

**NOTE 13 – CONTRACT LIABILITIES**

The following table summarizes the changes in contract liabilities as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **November 30, 2024** | **May 31,**<br> **2024** |
|  | **(unaudited)** | **(audited)** |
| Balances at the beginning of period/year | ¥29186 | ¥25589 |
| Billings | 14335 | 29186 |
| Revenue recognized | (29186) | (25589) |
| Balances at the end of period/year | ¥14335 | ¥29186 |

---

**NOTE 14 - RELATED PARTY TRANSACTIONS**

The related parties that had material transactions with the Company during the six months ended November 30, 2024 and 2023 consisted of the following:

---

| | |
|:---|:---|
| **Name of Related Parties** | **Nature of Relationship at November 30, 2024** |
| Tatsuya Nakagoshi | Founder and director of the Company |
| Center Porter Co., Ltd. | A company controlled by Tatsuya Nakagoshi |

---

Short-term loans receivable due from the related party on the unaudited condensed consolidated financial statements were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | | **Thousands of Yen** | **Thousands of Yen** |
| **Short-term loans receivable** | **Short-term loans receivable** | **November 30, 2024** | **May 31,**<br> **2024** |
| | | **(unaudited)** | **(audited)** |
| Tatsuya Nakagoshi | Short-term loans receivable with an interest rate of 0.9% per annum | ¥- | ¥40976 |

---

As of May 31, 2024, the outstanding accrued interest income due from Tatsuya Nakagoshi was ¥742 thousand. Interest income for loans receivable due from the related party was ¥54 thousand for the six months ended November 30, 2023.

The loan was made to Mr. Nakagoshi to advance Mr. Nakagoshi's personal expenses, and Mr. Nakagoshi repaid all outstanding loan in October 2024.

As of November 30, 2024 and May 31, 2024, accrued expenses due to the related party on the unaudited condensed consolidated financial statements were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
| **Accrued expenses** | **Accrued expenses** | **November 30, 2024** | **November 30, 2024** | **May 31,**<br> **2024** | **May 31,**<br> **2024** |
| | | **(unaudited)** | **(unaudited)** | **(audited)** | **(audited)** |
| Center Porter Co., Ltd. | Cosmetics sales commission | ¥ | 204 | ¥ | 308 |

---

Sales commission expenses to the related party were ¥1,304 thousand and ¥1,252 thousand for the six months ended November 30, 2024 and 2023, respectively.

**NOTE 15 - INCOME TAX**

Center Mobile and Pay Storage conduct their major businesses in Japan and are subject to tax in this jurisdiction. As a result of its business activities, Center Mobile and Pay Storage file tax returns that are subject to examination by the local tax authority. Income taxes in Japan applicable to the Company are imposed by the national, prefectural, and municipal governments. As of November 30, 2024, a tax year ended May 31, 2024 remained open for the local tax authority audit. The Company has received no notice of audit from the local tax authority for any of the open tax years.

For the six months ended November 30, 2024 and 2023, the Company's income tax expenses (benefit) were as follows:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **November 30,** | **November 30,** |
|  | **2024** | **2023** |
| Current period | ¥(10604) | ¥18475 |
| Origination of temporary differences | 15757 | 7912 |
| Total | ¥5153 | ¥26387 |

---

A reconciliation of the effective income tax rates reflected in the accompanying unaudited condensed consolidated statements of income and comprehensive income to the Japanese statutory tax rate for the six months ended November 30, 2024 and 2023 is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **November 30,** | **November 30,** |
|  | **2024** | **2023** |
| Japanese statutory tax rate | 34.59% | 34.59% |
| Tax credit |  | (4.17) |
| Change in valuation allowance | (20.17) | 11.59 |
| Other adjustments | 0.63 | (1.11) |
| Effective tax rate | 15.05% | 40.90% |

---

**NOTE 16 – COMMITMENTS AND CONTINGENCIES**

*<u>Contingencies</u>*

As of November 30, 2024, the Company has no material commitments or contingencies.

**NOTE 17 – SEGMENT INFORMATION**

The following table shows information by reportable segment for the six months ended November 30, 2024 and 2023:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  | **Mobile Network**<br> **Service** | **Advertising** | **Outsourcing Service** | **Travel<br> business** | **Total for reportable segments** | **Others<sup>(a)</sup>** | **Reconciling**<br> **Items<sup>(b)</sup>** | **Consolidated** |
| **For the Six Months Ended November 30, 2024** |  |  |  |  |  |  |  |  |
| Net sales: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External customers | ¥528501 | ¥36771 | ¥380070 | ¥58596 | ¥1003938 | ¥16171 | ¥- | ¥1020109 |
| &nbsp;&nbsp;&nbsp;Intersegment | 26808 |  |  |  | 26808 |  | (26808) |  |
| &nbsp;&nbsp;&nbsp;Total | 555309 | 36771 | 380070 | 58596 | 1030746 | 16171 | (26808) | 1020109 |
| Cost of revenue |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External vendors | (319434) |  | (165871) | (9098) | (494403) | (3778) |  | (498181) |
| &nbsp;&nbsp;&nbsp;Intersegment | (5379) | (19981) |  | (143) | (25503) | (1305) | 26808 |  |
| &nbsp;&nbsp;&nbsp;Total | (324813) | (19981) | (165871) | (9241) | (519906) | (5083) | 26808 | (498181) |
| Gross profit (loss) | 230496  | 16790  | 214199  | 49355  | 510840  | 11088  | -  | 521928  |
| &nbsp;&nbsp;&nbsp;Operating expenses |  |  |  |  |  |  | (490879) | (490879) |
| Operating income (loss) | 230496 | 16790 | 214199 | 49355 | 510840 | 11088 | (490879) | 31049 |
| Other income | - | - | - | - | - | - | 3185 | 3185 |
| Income (loss) before income taxes | ¥230496 | ¥16790 | ¥214199 | ¥49355 | ¥510840 | ¥11088 | (487694) | 34234 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  | **Mobile Network**<br> **Service** | **Advertising** | **Outsourcing Service** | **Travel<br> business** | **Total for reportable segments** | **Others<sup>(a)</sup>** | **Reconciling**<br> **Items<sup>(b)</sup>** | **Consolidated** |
| **For the Six Months Ended November 30, 2023** |  |  |  |  |  |  |  |  |
| Net sales: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External customers | ¥540754 | ¥39259 | ¥88448 | ¥76064 | ¥744525 | ¥19757 | ¥- | ¥764282 |
| &nbsp;&nbsp;&nbsp;Intersegment | 53177 |  |  |  | 53177 |  | (53177) |  |
| &nbsp;&nbsp;&nbsp;Total | 593931 | 39259 | 88448 | 76064 | 797702 | 19757 | (53177) | 764282 |
| Cost of revenue |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External vendors | (329483) |  | (83077) | (13176) | (425736) | (9923) |  | (435659) |
| &nbsp;&nbsp;&nbsp;Intersegment | (4913) | (45969) |  | (132) | (51014) | (2163) | 53177 |  |
| &nbsp;&nbsp;&nbsp;Total | (334396) | (45969) | (83077) | (13308) | (476750) | (12086) | 53177 | (435659) |
| Gross profit (loss) | 259535  | (6710 ) | 5371  | 62756  | 320952  | 7671  | -  | 328623  |
| &nbsp;&nbsp;&nbsp;Operating expenses |  |  |  |  |  |  | (267931) | (267931) |
| Operating income (loss) | 259535 | (6710) | 5371 | 62756 | 320952 | 7671 | (267931) | 60692 |
| Other expenses | - | - | - | - | - | - | (710) | (710) |
| Income (loss) before income taxes | ¥259535 | ¥(6710) | ¥5371 | ¥62756 | ¥320952 | ¥7671 | (268641) | 59982 |

---

(a) Revenue and income or loss from segments below the quantitative thresholds were attributable to two operating segments of the Company. Those segments include a merchandise business and an agency business. None of those segments has ever met any of the quantitative thresholds for determining reportable segments.

(b) Reconciling items include elimination of intersegment transactions and corporate expenses. Reconciling items in segment income (loss) includes amounts not allocated to each reportable segment that consist principally of corporate expenses of ¥510,636 thousand and ¥267,931 thousand for the six months ended November 30, 2024 and 2023, respectively. Corporate expenses include certain director's compensation.

No asset information is provided for reportable operating segments, as these specified amounts are not included in the measure of segment income or loss reviewed by the Company's chief operating decision maker.

**NOTE 18 - NET INCOME PER SHARE**

The computation of basic and diluted net income per share in accordance with ASC Topic 260 for the six months ended November 30, 2024 and 2023 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen**<br> **except share and per share data** | **Thousands of Yen**<br> **except share and per share data** |
|  | **For the Six Months Ended**<br> **November 30,** | **For the Six Months Ended**<br> **November 30,** |
|  | **2024** | **2023** |
| Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | ¥29081 | ¥33595 |
| Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average number of common shares outstanding used in calculating basic/diluted net income per share | 24720473 | 24720473 |
| Net income per share | ¥1.18 | ¥1.36 |

---

The shares and per share information are presented on a retroactive basis to reflect share split occurred in June and November 2024 and share issue occurred in January 2025 (Note 12).

**NOTE 19 - CONSULTING AGREEMENT**

On January 22, 2024, the Company entered into a consulting and services agreement with Spirit Advisors. Pursuant to the agreement, the Company agreed to compensate Spirit Advisors with warrants, which will be granted and be exercisable upon completion of the proposed initial public offering ("IPO") for the period of 10 years to purchase 3% of the fully diluted share capital of the Company at the time of the IPO for an exercise price per share of $0.01, subject to adjustments as set forth in the warrant, for professional services to be provided by Spirit Advisors in connection with the IPO. Since the Company issued the share acquisition rights on January 7, 2025, the Company and Spirit Advisors will terminate the warrant prior to the consummation of the offering.

**NOTE 20 - SUBSEQUENT EVENTS**

On January 7, 2025, Center Mobile Japan issued 720,014 share acquisitions rights to Spirit Advisors, which are exercisable from January 7, 2025, to January 7, 2035 at an exercise price per share of $0.01. On January 22, 2025, Spirit Advisors exercised its 720,014 share acquisitions rights, whereby Center Mobile Japan issued 720,014 ordinary shares to Spirit Advisors on the same date, resulting in 24,720,473 ordinary shares being issued and outstanding.

Except for the above, the Company has assessed all events from December 1, 2024 through May 2, 2025, which is the date that the unaudited condensed consolidated financial statements are available to be issued, and determined that there are no material subsequent events that require disclosure in these unaudited condensed consolidated financial statements.

**Report of Independent Registered Public Accounting Firm**

To the shareholders and the board of directors of Center Holdings Inc.

***Opinion on the Financial Statements***

 ****

We have audited the accompanying consolidated balance sheets of Center Holdings Inc. and its subsidiaries (collectively, the "Company") as of May 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, shareholders' equity, and cash flows for each of the two years in the period ended May 31, 2024, and the related notes to the consolidated financial statements (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial positions of the Company as of May 31, 2024 and 2023, and the consolidated results of its operations and its cash flows for each of the two years in the period ended May 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

 ****

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (the "PCAOB") and are required to be independent with respect to the Company in accordance with the United States federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Onestop Assurance PAC

We have served as the Company's auditor since 2024.

Singapore

October 21, 2024, except for Notes 10, 16 and 18, as to which the date is May 2, 2025.

PCAOB ID number: 6732

**Center Holdings Inc.**

**CONSOLIDATED BALANCE SHEETS**

**(Yen in thousands)**

---

| | | |
|:---|:---|:---|
|  | **May 31, 2024** | **May 31, 2023** |
| ASSETS |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and deposits | ¥365017 | ¥517101 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 466741 | 550179 |
| &nbsp;&nbsp;&nbsp;Inventories | 20684 | 14650 |
| &nbsp;&nbsp;&nbsp;Short-term loans receivable - related party | 40976 | 37652 |
| &nbsp;&nbsp;&nbsp;Accrued interest - related party | 742 | 343 |
| &nbsp;&nbsp;&nbsp;Income taxes receivable | 38635 |  |
| &nbsp;&nbsp;&nbsp;Share offering costs | 39409 |  |
| &nbsp;&nbsp;&nbsp;Other current assets | 37310 | 6420 |
| &nbsp;&nbsp;&nbsp;Total current assets | 1009514 | 1126345 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 84289 | 89549 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 41096 | 46230 |
| &nbsp;&nbsp;&nbsp;Software | 7398 | 4441 |
| &nbsp;&nbsp;&nbsp;Guarantee deposits | 18256 | 20734 |
| &nbsp;&nbsp;&nbsp;Other assets | 34471 | 44369 |
| &nbsp;&nbsp;&nbsp;Total non-current assets | 185510 | 205323 |
| Total assets | ¥1195024 | ¥1331668 |

---

*See the accompanying notes, which are an integral part of these consolidated financial statements.*

**Center Holdings Inc.**

**CONSOLIDATED BALANCE SHEETS**

**(Yen in thousands, except share data)**

---

| | | |
|:---|:---|:---|
|  | **May 31, 2024** | **May 31, 2023** |
| LIABILITIES |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | ¥309558 | ¥336654 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 41624 | 22823 |
| &nbsp;&nbsp;&nbsp;Accrued expenses - related party | 308 | 329 |
| &nbsp;&nbsp;&nbsp;Accrued consumption taxes | 30897 | 60070 |
| &nbsp;&nbsp;&nbsp;Current portion of bonds | 19358 | 19164 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term loans | 10008 | 10008 |
| &nbsp;&nbsp;&nbsp;Current operating lease liabilities | 22697 | 20107 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 29186 | 25589 |
| &nbsp;&nbsp;&nbsp;Deposits received | 8536 | 6995 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 415 | 117052 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 3669 | 4050 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 476256 | 622841 |
| Non-current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | 49254 | 68611 |
| &nbsp;&nbsp;&nbsp;Long-term loans | 18308 | 28316 |
| &nbsp;&nbsp;&nbsp;Non-current operating lease liabilities | 19905 | 29282 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | 36252 | 27893 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 7510 | 7464 |
| Total non-current liabilities | 131229 | 161566 |
| Total liabilities | ¥607485 | ¥784407 |
| SHAREHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary shares:50,000,000 shares authorized, 24,720,473 shares issued and outstanding as of May 31, 2024 and 2023 with no stated value. | ¥0 | ¥0 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 30700 | 30700 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 556839 | 516561 |
| Total shareholders' Equity | 587539 | 547261 |
| Total liabilities and equity | ¥1195024 | ¥1331668 |

---

*See the accompanying notes, which are an integral part of these consolidated financial statements.*

**Center Holdings Inc.**

**CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**

**(Yen in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **Fiscal Year Ended**<br> **May 31, 2024** | **Fiscal Year Ended**<br> **May 31, 2023** |
| Revenue | ¥1583214 | ¥1760423 |
| Cost of revenue | (917763) | (777375) |
| Gross profit | 665451 | 983048 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (596247) | (561057) |
| Total operating expenses | (596247) | (561057) |
| Operating income | 69204 | 421991 |
| Other income (expenses): |  |  |
| &nbsp;&nbsp;&nbsp;Interest income - related party | 398 | 165 |
| &nbsp;&nbsp;&nbsp;Interest expenses | (1448) | (995) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expenses), net | (1050) | (830) |
| Income before income taxes | 68154 | 421161 |
| Income tax expenses | (27876) | (129437) |
| Net income | 40278 | 291724 |
| Other comprehensive income | - | - |
| Total comprehensive income | ¥40278 | ¥291724 |
| Earnings per share: |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | ¥1.63 | ¥11.80 |
| Weighted average number of ordinary shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | 24720473 | 24720473 |

---

*See the accompanying notes, which are an integral part of these consolidated financial statements.*

**Center Holdings Inc.**

**CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY**

**(Yen in thousands, except share data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shareholders' equity** | **Shareholders' equity** | **Shareholders' equity** | **Shareholders' equity** | |
|  | **Number of Shares** | **Share Capital** | **Additional paid in capital** | **Retained Earnings** |<br>**Total** |
| Balance at June 1, 2022 | 24720473 | ¥0 | ¥30700 | ¥224837 | ¥255537 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  | 291724 | 291724 |
| Balance at May 31, 2023 | 24720473 | ¥0 | ¥30700 | ¥516561 | ¥547261 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  | 40278 | 40278 |
| Balance at May 31, 2024 | 24720473 | ¥0 | ¥30700 | ¥556839 | ¥587539 |

---

*See the accompanying notes, which are an integral part of these consolidated financial statements.*

**Center Holdings Inc.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Yen in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Fiscal Year Ended**<br> **May 31, 2024** | **Fiscal Year Ended**<br> **May 31, 2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | ¥40278 | ¥291724 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 6792 | 5500 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts receivable | 83438 | 34375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in inventories | (6034) | (3764) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in other receivable | (22390) | (860) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in income taxes receivable | (38635) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in accounts payable | (27097) | (53494) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accrued expenses | 18801 | 13598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in contract liabilities | 3597 | 12150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in income taxes payable | (116637) | 51064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in consumption tax payable | (29173) | 22375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in deferred tax liabilities | 8359 | (7464) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 3010 | (2882) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows (used in) provided by operating activities | (75691) | 362322 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (4488) | (62112) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments |  | (33863) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of short-term loans receivable |  | (800) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of short-term loans receivable - related party | (3324) | (29089) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows (used in) investing activities | (7812) | (125864) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments for long-term loans | (10008) | (10008) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of bonds |  | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of bonds | (19164) | (9515) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment for debt issuance costs |  | (2710) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of listing expenses | (39409) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows (used in) provided by financing activities | (68581) | 77767 |
| Net (decrease) increase in cash and cash equivalents | (152084) | 314225 |
| Cash and cash equivalents at the beginning of the fiscal year | 517101 | 202876 |
| Cash and cash equivalents at the end of the fiscal year | ¥365017 | ¥517101 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| Cash paid for interest | ¥624 | ¥510 |
| Cash paid for taxes | 175766 | 86692 |

---

*See the accompanying notes, which are an integral part of these consolidated financial statements.*

**Center Holdings Inc.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**May 31, 2024**

**NOTE 1 – ORGANIZATION AND BUSINESS**

***Description of Business***

Center Holdings Inc. was incorporated on April 10, 2025 to act as the holding company of Center Mobile Co., Ltd., which is a limited liability company organized under the laws of Japan and an operating entity in Japan ("Center Mobile"). Center Mobile and its subsidiary (collectively, the "Company") are a mobile connectivity and wireless communications services provider in Japan, offering a full range of 4G LTE voice, texting, and data services covering all areas throughout Japan. The Company was incorporated in Japan in June 2020. The Company also has an innovative business model that allows its customers to lower their monthly fees for the Company's services by watching advertisements or playing games through its proprietary app, "PLAIO." The Company offers mobile connectivity and wireless communications services on a monthly basis for specified quantities of minutes or amounts of data selected in advance. The Company currently also operates an outsourcing business, under which it works as a staffing agency, and its goal and policy are to provide a more stable working environment and conditions for job seekers. Unlike most of the staffing agencies in Japan that only hire job seekers and dispatch them to their corporate clients without providing much training, leaving the training to such corporate clients, the Company hires job seekers as its full-time employees and provides basic training to help them fit into the workplaces and positions that the Company considers the best match for them based on their willingness, interests, personalities, experiences, requirements, and the Company's corporate clients' needs before dispatching them to its corporate clients. In addition to the mobile network services and outsourcing service, the Company currently also operates a travel business. Through cooperating with the travel business partners, the Company operates a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans or hotel plus Shinkansen (Japanese bullet trains) ticket travel plans offered by its travel business partners.

The consolidated financial statements of the Company include Center Mobile and the entity below:

---

| | | | |
|:---|:---|:---|:---|
|  | Date of Incorporation <br> or Acquisition | Place of <br> Incorporation | Percentage of <br>Direct or Indirect <br>Economic Ownership |
| ***Subsidiary*** |  |  |  |
| Pay Storage Co., Ltd. ("Pay Storage") | June 2022 | Japan | 100.0% |

---

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation and Principles of Consolidation***

The financial statements and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). The financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles of the United States ("U.S. GAAP").

The accompanying consolidated financial statements are presented in Japanese yen, the currency of the country in which the Company is incorporated and principally operates. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary . All significant intercompany transactions and balances have been eliminated in consolidation.

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Significant estimates and assumptions are reflected in valuation and disclosure of accounts, including inventories, long-lived assets, leases, asset retirement obligations, and deferred tax liabilities. Actual results could differ from these good faith estimates and judgments.

***Cash and Deposits***

Cash and deposits include cash on hand and deposits in banks that are unrestricted as to withdrawal or use. All highly liquid investments acquired with original maturities of three months or less are considered to be cash equivalents. The Company had no cash equivalents as of May 31, 2024 and 2023.

***Accounts Receivable***

Accounts receivable represent the Company's right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). The Company's account receivable balances are unsecured, bear no interest, and are due upon normally within a year from the date of the sale. The balance is presented net of an allowance for credit losses. Allowance for credit losses for accounts receivable is maintained for all customers based on ASC 326 "Financial Instruments—Credit Losses," based on historical experiences of credit losses and reasonable and supportable forecasts. An additional reserve for individual accounts is recorded when the Company becomes aware of a customer's inability to meet its financial obligations, such as in the case of bankruptcy filings. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. When all collection options, including legal recourse, are exhausted, the accounts or portions thereof are deemed to be uncollectable and charged against the allowance.

There was no allowance for credit losses as of May 31, 2024 and 2023.

***Inventories***

Inventories consist of merchandise, including smartphone-related products and cosmetic products. Estimates of the lower of cost and net realizable value of inventory are determined by comparing the actual cost of the inventory to the estimated selling prices in the ordinary course of business based on current market and economic conditions, less reasonably predictable costs of completion, disposal, and transportation of the inventory.

***Property and Equipment***

Property and equipment are stated at cost.

---

| | | |
|:---|:---|:---|
|  | Useful life | Depreciation method |
| Buildings | 24-27 years | Straight-line method |
| Leasehold improvements | 10 years | Straight-line method |
| Vehicles | 2 years | Straight-line method |
| Tool, furniture, and fixtures | 3 years | Straight-line method |
| Land | Indefinite |  |

---

Maintenance and repairs are charged to expenses as incurred. Improvements of a major nature are capitalized. Construction in progress is not depreciated until ready for service at the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts, and any gains or losses are reflected in income.

The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment" ("ASC No. 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flow expected to be generated by the assets. If such assets are considered to be impaired, the impairment is recognized by measuring the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment losses were recorded during the fiscal years ended May 31, 2024 and 2023.

***Revenue Recognition***

The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). The core principle of ASC 606 is that the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The ASC 606 revenue recognition model consists of the following five steps:

&nbsp;&nbsp;&nbsp;&nbsp;(1) identifying a contract with a customer,

(2) identifying the performance obligations in the contract,

(3) determining the transaction price,

(4) allocating the transaction price to the performance obligations in the contract, and

(5) recognizing revenue when (or as) the entity satisfies a performance obligation.

For an arrangement to qualify as a contract, it must be probable that the Company will collect the consideration to which it is entitled for the goods or services to be transferred. Once the contract is determined to be within the scope of ASC 606, the Company assesses the promised goods or services in each contract and determines whether those are performance obligations and the related transaction price. The Company then recognizes the sale of goods based on the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied.

The Company recognizes revenue from mobile network service, sales of advertisement, outsourcing service, and travel business sales.

*Mobile network service segment*

 

*<u>Revenue from mobile network service</u>*

The Company provides flexible monthly mobile network plans to users for a full range of 4G LTE voice, texting, and data services covering all areas throughout Japan. Users can select plans with specified transferable amounts of voice and data services or plans with only specified transferable amounts of data and enter into the contracts for each plan with the Company. Revenue from mobile network service is recognized over time during the period the network services are provided to users, corresponding to the point at which the promised service is transferred to users and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to users. Cost of revenues primarily consists of fees for mobile connectivity and wireless communications services from MVNE(s).

Through the proprietary app, "PLAIO," the Company receives advertising fees from advertisers and uses them to reward customers who watched advertisements to lower their monthly fees for mobile network services. By watching a video advertisement with a length ranging from 30 seconds to around 60 seconds through PLAIO, customers can receive five points, with each point being used as 0.1 Japanese yen by the customers to deduct their monthly fees for the mobile network services. The Company defers revenue equivalent to the estimated service price of points earned by end users, which can be applied to reduce their monthly fees for the mobile network services as each point is earned. A corresponding liability is recorded as deferred revenue when each point is earned. This deferral is based on the estimated value of the mobile network services for which the reward is expected to be redeemed, net of estimated unredeemed points. Points generally expire when the mobile network service contracts are terminated. When a customer redeems an earned reward, we recognize revenue for the redeemed product and reduce the related deferred revenue.

*Advertising segment*

 

*<u>Revenue from sales of advertising</u>*

The Company receives the advertising fees from advertisers based on the cost-per-action, such as the number of advertisements watched through PLAIO app, and uses them to reward users who watch advertisements through the Company's mobile network. Revenue from sales of advertising is recognized at a point in time when the Company completes providing advertisements to users through the Company's mobile network, corresponding to the point at which the promised service is transferred to users and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to users. Revenue from mobile network service is recognized over time during the period the network services are provided to users, corresponding to the point at which the promised service is transferred to users and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to users. The Company recorded only intersegment cost of revenues.

*Outsourcing service segment*

 

*<u>Revenue from outsourcing service</u>*

The Company hires job seekers as its full-time employees and dispatches them to corporate customers as a staffing agency. Revenue from outsourcing services as a staffing agency is recognized over time during the period the human resources are provided to the corporate customers, corresponding to the point at which the promised service is transferred to the customers and the performance obligation is satisfied. In addition, the Company also serves as an intermediary who introduces job seekers to appropriate hirers based on job seekers' willingness, interests, personalities, experiences, requirements, and the hirers' needs. Revenue from outsourcing service as an intermediary is recognized at a point in time when a customer hires a job seeker introduced by the Company and after the period stipulated in the contract has elapsed, which is also the time when the promised service is transferred to customers and the performance obligation is satisfied. The Company has determined that the Company is the principal in this arrangement since another party is not involved in providing services to customers. Cost of revenues primarily consists of salaries and outsourcing expenses.

*Travel business segment*

 

*<u>Revenue from travel business sales</u>*

The Company operates a travel business. Through cooperating with the Company's travel business partners, the Company operates a portal site that allows customers to purchase travel plans such as hotel plus airplane ticket set plans or hotel plus Shinkansen (Japanese bullet trains) ticket travel plans offered by the Company's partners. The Company charges its subscribers a monthly subscription fee. Revenue from travel business sales is recognized over time during the period the Company provides subscription services to subscribers that allow them to purchase travel plans through the Company's portal, which is the time when the promised service is transferred to subscribers and the performance obligation is satisfied. The Company determined that the Company is the principal in this arrangement since another party is not involved in providing services to customers. Cost of revenues primarily consists of fees for the Company's travel business partners.

***Leases***

The Company determines if an arrangement is or contains a lease at inception or modification of the arrangement. An arrangement is or contains a lease if the right to control the use of an identified asset is conveyed for a period in exchange for consideration. Control over the use of the identified assets means that the lessee has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset.

If the Company is a lessee, it classifies its lease as either a finance lease or an operating lease. If the Company is a lessor, it classifies its lease as a sale-type lease, a direct financing lease, or an operating lease. The Company uses the following criteria to determine if a lease is a finance lease (as a lessee) or a sales-type lease or a direct financing lease (as a lessor):

(i) ownership of the underlying asset is transferred from lessor to lessee by the end of the lease term;

(ii) an option to purchase is reasonably certain to be exercised;

(iii) the lease term is for the major part of the underlying asset's remaining economic life;

(iv) the present value of lease payments equals or exceeds substantially all of the fair value of the underlying assets; or

(v) the underlying asset is specialized and is expected to have no alternative use at the end of the lease term.

If the Company meets any of the above criteria, it accounts for the lease as a finance lease, a sales-type lease, or a direct financing lease. If the Company does not meet any of the criteria, it accounts for the lease as an operating lease.

*<u>Lessee accounting</u>*

The Company recognizes right-of-use assets and lease liabilities for all leases, except those with a term of 12 months or less, as it has elected to apply the short-term lease recognition exemption. Right-of-use assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are classified and recognized at the commencement date of a lease. Lease liabilities are measured based on the present value of fixed lease payments over the lease term. Right-of-use assets consist of (i) initial measurement of the lease liability; (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received; and (iii) initial direct costs incurred by the Company.

As the rates implicit on the Company's leases for which it is the lessee are not readily determinable, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of lease payments. When determining the incremental borrowing rate, the Company assesses multiple variables such as lease term, collateral, economic conditions, and its creditworthiness.

***Advertising Expenses***

 

The Company expenses advertising costs as they incurred. Total advertising expenses were ¥57,455 thousand and ¥11,302 thousand for the fiscal years ended May 31, 2024 and 2023, respectively, and were included as part of selling, general, and administrative expenses.

***Income Taxes***

The Company adopted FASB ASC 740, Income Taxes, at its inception. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company recognizes the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the tax positions will be sustained upon examination by tax authorities. Benefits from tax positions that meet the more-likely-than-not recognition threshold are measured at the largest amount of benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income taxes in the consolidated statements of operations and comprehensive income.

***Segments***

ASC 280, "Segment Reporting," requires the use of the "management approach" model for segment reporting. The management approach model is based on how a company's chief operating decision maker organizes segments within the company when making operating decisions, assessing performance, and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

The Company's reportable segments consist of mobile network service segment, advertising segment, outsourcing service segment, and travel business segment.

***Net Income Per Share***

 

Basic net income per share is computed by dividing net income by the weighted average number of ordinary shares outstanding during the reporting period. Diluted net income per share reflects the potential dilution that could occur if stock options and other commitments to issue ordinary shares were exercised or equity awards vest resulting in the issuance of ordinary shares that could share in the net income of the Company.

***Related Parties and Transactions***

The Company identifies related parties, accounts for, and discloses related party transactions in accordance with ASC 850, "Related Party Disclosures," and other relevant ASC standards.

Parties, which can be an entity or individual, are considered to be related if they have the ability, directly or indirectly, to control the Company or exercise significant influence over the Company in making financial and operational decisions. Entities are also considered to be related if they are subject to common control or common significant influence.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

***Recently Issued Accounting Pronouncements***

The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

**NOTE 3 - INVENTORIES**

The following table summarizes the components of the Company's inventories as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **May 31, 2024** | **May 31, 2023** |
| Merchandises |  |  |
| &nbsp;&nbsp;&nbsp;Smartphone-related products | ¥13606 | ¥6996 |
| &nbsp;&nbsp;&nbsp;Cosmetic products | 7078 | 7654 |
| **Total** | ¥20684 | ¥14650 |

---

**NOTE 4 – OTHER CURRENT ASSETS**

The following table summarizes the components of the Company's other current assets as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **May 31, 2024** | **May 31, 2023** |
| Other receivable<sup>(a)</sup> | ¥23250 | ¥860 |
| Investment<sup>(b)</sup> | 10000 |  |
| Prepaid expenses | 3866 | 4479 |
| Other | 194 | 1081 |
| **Total** | ¥37310 | ¥6420 |

---

(a) Other receivable mainly consisted of receivables due from job seekers. The Company supports job seekers with a certain amount of living expenses. The purpose of this support is to help with living expenses so that job seekers can focus on finding a job and to prevent them from leaving the employer, which the Company introduced. The job seekers will repay the Company after they have been employed.

(b) Investment mainly consisted of a deposit in Laos, which was fully refunded after May 31, 2024.

**NOTE 5 – PROPERTY AND EQUIPMENT**

The following table summarizes the components of the Company's property and equipment as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **May 31, 2024** | **May 31, 2023** |
| Buildings | ¥17922 | ¥17922 |
| Leasehold improvements | 7409 | 10052 |
| Vehicles | 2740 | 2740 |
| Tools, Furniture, and Fixtures | 693 | 373 |
| Land | 65445 | 65445 |
|  | 94209 | 96532 |
| Accumulated depreciation | (9920) | (6983) |
| **Total** | ¥84289 | ¥89549 |

---

Depreciation expenses recorded under selling, general, and administrative expenses for the fiscal years ended May 31, 2024 and 2023 were ¥5,580 thousand and ¥4,716 thousand, respectively.

**NOTE 6 – OTHER ASSETS**

The following table summarizes the components of the Company's other assets as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **May 31, 2024** | **May 31, 2023** |
| Investment<sup>(a)</sup> | ¥33862 | ¥43863 |
| Other | 609 | 506 |
| **Total** | ¥34471 | ¥44369 |

---

(a) Investment mainly consisted of a long-term deposit to acquire a property in the Philippines, the title to which has not been transferred.

**NOTE 7 – BANK BORROWINGS**

The Company's outstanding indebtedness borrowed from a bank consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
| <br>**Indebtedness** | **Weighted average <br> interest rate\*** | **Weighted average <br> years to maturity\*** | **Balance as of <br> May 31, 2024** | **Balance as of <br> May 31, 2023** |
| **Long-term loans** |  |  |  |  |
| Unsecured loans |  |  |  |  |
| Fixed rate loans | 0.54% | 2.83 | ¥28316 | ¥38324 |
| **Total long-term loans** | **0.54%** | 2.83 | ¥28316 | ¥38324 |
| Less: current portion |  |  | ¥(10008) | ¥(10008) |
| Non-current portion |  |  | ¥18308 | ¥28316 |

---

\*Pertained to information for loans outstanding as of May 31, 2024.

The Company borrowed loans from a bank for working capital purposes.

Interest expenses for long-term loans were ¥177 thousand and ¥226 thousand for the fiscal years ended May 31, 2024 and 2023, respectively.

The guaranty information for the Company's outstanding loans as of May 31, 2024 and 2023 consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  | **May 31, 2024** | **May 31, 2024** | **May 31, 2023** | **May 31, 2023** |
| Guaranteed by CEO | ¥ | 28316 | ¥ | 38324 |

---

As of May 31, 2024, future minimum payments for long-term loans were as follows:

---

| | |
|:---|:---|
| | **Thousands of Yen** |
| <br>**Fiscal Years Ending May 31,** | **Principal Repayment** |
| 2025 | ¥10008 |
| 2026 | 10008 |
| 2027 | 8300 |
| **Total** | ¥28316 |

---

**NOTE 8 – BONDS**

The Company has issued corporate bonds through a bank, which consist of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
| Name of Bank | Principal Amount | Issuance Date | Maturity Date | Annual Interest Rate | Balance as of May 31, 2024 | Balance as of May 31, 2023 |
| Lender 1 | ¥100000 | 9/26/2022 | 9/24/2027 | 0.50% | ¥70000 | ¥90000 |
| Aggregate outstanding principal balances |  |  |  |  | 70000 | 90000 |
| Less: unamortized bond issuance costs |  |  |  |  | (1388) | (2225) |
| Less: current portion |  |  |  |  | (19358) | (19164) |
| Non-current portion |  |  |  |  | ¥49254 | ¥68611 |

---

Interest expenses for corporate bonds were ¥1,218 thousand and ¥721 thousand for the fiscal years ended May 31, 2024 and 2023, respectively.

**NOTE 9 - LEASES**

*<u>Lessee</u>*

The Company has entered into operating leases for office and stores, with terms ranging from 2 to 4 years. The estimated effect of lease renewal and termination options, as applicable, that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right-of-use assets and lease liabilities is included in the consolidated financial statements.

Operating lease expenses for lease payments are recognized on a straight-line basis over the lease term.

The following table presents supplement information related to the Company's leases:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **For the Fiscal Years Ended**<br> **May 31,** | **For the Fiscal Years Ended**<br> **May 31,** |
|  | **2024** | **2023** |
| Operating lease costs | ¥20443 | ¥17327 |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Operating cash flows from operating leases | ¥22096 | ¥14083 |
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | ¥15042 | ¥34519 |
| Weighted average remaining lease term (years) | 2.09 | 2.82 |
| Weighted-average discount rate (per annum) | 0.65% | 0.62% |

---

As of May 31, 2024, the future maturity of lease liabilities was as follows:

---

| | |
|:---|:---|
| **Fiscal Years Ending May 31,** | **Thousands of Yen** |
| 2025 | ¥22906 |
| 2026 | 15649 |
| 2027 | 4341 |
| Total lease payments | 42896 |
| Less: imputed interest | (294) |
| Total lease liabilities | 42602 |
| Less: current portion | (22697) |
| Non-current lease liabilities | ¥19905 |

---

**NOTE 10- SHAREHOLDERS' EQUITY**

Center Mobile Japan is authorized to issue 50,000,000 ordinary shares. As of May 31, 2024 and 2023, there were 8,000,153 ordinary shares issued and outstanding. All of the issued shares as of May 31, 2024 and 2023 were paid in full.

On June 24, 2024, Center Mobile Japan's board of directors approved a 1-for-31,129 share split of its issued and outstanding ordinary shares. On July 1, 2024, Center Mobile Japan effected a 1-for-31,129 share split of its issued and outstanding ordinary shares. In connection with the share split, the total number of outstanding ordinary shares increased from 257 to 8,000,153. The number of shares reflects the retrospective presentation of a 1-for-31,129 share split in 2024.

On November 25, 2024, Center Mobile Japan's board of directors approved a 1-for-3 share split of its issued and outstanding ordinary shares, which was based on a record date of December 11, 2024. On December 12, 2024, Center Mobile Japan effected a 1-for-3 share split of its issued and outstanding ordinary shares following the receipt of shareholder approval. In connection with the share split, the total number of outstanding ordinary shares increased from 8,000,153 to 24,000,459.

On January 7, 2025, Center Mobile Japan issued 720,014 share acquisitions rights to Spirit Advisors LLC ("Spirit Advisors"), a Delaware limited liability company, which are exercisable from January 7, 2025, to January 7, 2035 at an exercise price per share of $0.01. On January 22, 2025, Spirit Advisors exercised its 720,014 share acquisitions rights, whereby Center Mobile Japan issued 720,014 ordinary shares to Spirit Advisors on the same date, resulting in 24,720,473 ordinary shares being issued and outstanding.

Under the Companies Act, issuances of capital shares, including conversions of bonds and notes, are required to be credited to the share capital account for at least 50% of the proceeds and to the legal capital surplus account ("capital surplus") for the remaining amounts.

The Companies Act permits that share capital, capital surplus, and retained earnings can be transferred among these accounts under certain conditions upon the approval of a general meeting of shareholders. The Companies Act limits the increase of paid in capital in case disposition of treasury shares and issuance of ordinary shares are performed at the same time.

**NOTE 11 – CONTRACT LIABILITIES**

The following table summarizes the changes in contract liabilities as of the dates presented:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **May 31 2024** | **May 31 2023** |
| Balances at the beginning of the year | ¥25589 | ¥13439 |
| Billings | 29186 | 25589 |
| Revenue recognized | (25589) | (13439) |
| Balances at the end of the year | ¥29186 | ¥25589 |

---

**NOTE 12 - RELATED PARTY TRANSACTIONS**

The related parties that had material transactions with the Company during the fiscal years ended May 31, 2024 and 2023 consisted of the following:

---

| | |
|:---|:---|
| **Name of Related Parties** | **Nature of Relationship at May 31, 2024** |
| Tatsuya Nakagoshi | Founder and director |
| Center Porter Co., Ltd. | A company controlled by Tatsuya Nakagoshi |

---

As of May 31, 2024 and 2023, short-term loans receivable due from the related party on the consolidated financial statements were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | | **Thousands of Yen** | **Thousands of Yen** |
| **Short-term loans receivable** | **Short-term loans receivable** | **May 31, 2024** | **May 31, 2023** |
| Tatsuya Nakagoshi | Short-term loans receivable with an interest rate of 0.9% per annum | ¥40976 | ¥37652 |

---

As of May 31, 2024 and 2023, the outstanding accrued interest income due from Tatsuya Nakagoshi was ¥742 thousand and ¥343 thousand, respectively. Interest income for loans receivable due from the related party was ¥398 thousand and ¥165 thousand for the fiscal years ended May 31, 2024 and 2023, respectively.

The loan was made to Mr. Nakagoshi to advance Mr. Nakagoshi's personal expenses, and Mr. Nakagoshi repaid all outstanding loan in October 2024.

As of May 31, 2024 and 2023, accrued expenses due to the related party on the consolidated financial statements were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
| **Accrued expenses** | **Accrued expenses** | **May 31, 2024** | **May 31, 2024** | **May 31, 2023** | **May 31, 2023** |
| Center Porter Co., Ltd. | Cosmetics sales commission | ¥ | 308 | ¥ | 329 |

---

Sales commission expenses to the related party were ¥2,273 thousand and ¥3,710 thousand for the fiscal years ended May 31, 2024 and 2023, respectively.

**NOTE 13 - INCOME TAX**

Center Mobile and Pay Storage conduct their major businesses in Japan and are subject to tax in this jurisdiction. As a result of its business activities, Center Mobile and Pay Storage file tax returns that are subject to examination by the local tax authority. Income taxes in Japan applicable to the Company are imposed by the national, prefectural, and municipal governments. As of May 31, 2024, a tax year ended May 31, 2024 remained open for the local tax authority audit. The Company has received no notice of audit from the local tax authority for any of the open tax years.

For the fiscal years ended May 31, 2024 and 2023, the Company's income tax expenses (benefit) were as follows:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **For the Fiscal Years Ended** | **For the Fiscal Years Ended** |
|  | **May 31,** | **May 31,** |
|  | **2024** | **2023** |
| Current | ¥19517 | ¥136901 |
| Deferred | 8359 | (7464) |
| Total | ¥27876 | ¥129437 |

---

A reconciliation of the effective income tax rates reflected in the accompanying consolidated statements of operations and comprehensive income to the Japanese statutory tax rate for the fiscal years ended May 31, 2024 and 2023 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **For the Fiscal Years Ended** | **For the Fiscal Years Ended** |
|  | **May 31,** | **May 31,** |
|  | **2024** | **2023** |
| Japanese statutory tax rate | 34.59% | 34.59% |
| Tax credit | (4.17) | (4.65) |
| Change in valuation allowance | 11.59 | 1.86 |
| Other adjustments | (1.11) | (1.07) |
| Effective tax rate | 40.90% | 30.73% |

---

The tax effects of temporary differences that give rise to the deferred income tax assets and liabilities at May 31, 2024 and 2023 are presented below:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** |
|  | **May 31, 2024** | **May 31, 2023** |
| **Deferred income tax assets** |  |  |
| Net operating losses carried forward | ¥13683 | ¥6004 |
| Operating lease liabilities | 14736 | 17182 |
| Contract liabilities | 10095 | 8851 |
| Asset retirement obligations | 2598 | 3105 |
| Accrued enterprise taxes |  | 11892 |
| Others | 2515 | 1082 |
| Subtotal | 43627 | 48116 |
| Less valuation allowance | (15734) | (7832) |
| **Total deferred income tax assets** | ¥27893 | ¥40284 |
| **Deferred income tax liabilities** |  |  |
| Accounts receivable | ¥(29385) | ¥(48626) |
| Deferred listing expenses | (13631) |  |
| Operating lease right-of-use assets | (14176) | (15991) |
| Enterprise taxes receivable | (5217) |  |
| Other | (1736) | (3560) |
| **Total deferred income tax liabilities** | ¥(64145) | ¥(68177) |
| **Deferred income tax liabilities, net** | ¥(36252) | ¥(27893) |

---

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. The Company regularly assesses the ability to realize its deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. The Company weighs all available positive and negative evidence, including its earnings history and results of recent operations, projected future taxable income, and tax planning strategies.

The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence, such as the Company's projections for growth. The adjustments of a valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which the valuation allowance is adjusted. Based upon the level of historical taxable profit and projections for future taxable profit over the periods for which the deferred tax assets are deductible, management believes it is probable that the Company will utilize the benefits of these deferred tax assets as of May 31, 2024 and 2023. Uncertainty of estimates of future taxable profit could increase due to changes in the economic environment surrounding the Company, effects by market conditions, effects of currency fluctuations, or other factors.

As of May 31, 2024, the Company had net operating loss carryforwards of ¥39,559 thousand, which can be carried forward for income tax purposes to reduce future taxable income. Periods available to reduce future taxable income range from one to ten years as follows:

---

| | |
|:---|:---|
|  | **Thousands of Yen** |
| After eight years through nine years | ¥17357 |
| After nine years through ten years | 22202 |
| **Total** | ¥39559 |

---

**NOTE 14 – COMMITMENTS AND CONTINGENCIES**

*<u>Contingencies</u>*

As of May 31, 2024, the Company has no material commitments or contingencies.

**NOTE 15 – SEGMENT INFORMATION**

The following table shows information by reportable segment for the fiscal years ended May 31, 2024 and 2023:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  | **Mobile Network**<br> **Service** | **Advertising** | **Outsourcing Service** | **Travel<br> business** | **Total for reportable segments** | **Others<sup>(a)</sup>** | **Reconciling**<br> **Items<sup>(b)</sup>** | **Consolidated** |
| **May 31, 2024** |  |  |  |  |  |  |  |  |
| Net sales: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External customers | ¥1060420 | ¥79194 | ¥264878 | ¥142146 | ¥1546638 | ¥36576 | ¥- | ¥1583214 |
| &nbsp;&nbsp;&nbsp;Intersegment | 97873 |  |  |  | 97873 |  | (97873) |  |
| &nbsp;&nbsp;&nbsp;Total | 1158293 | 79194 | 264878 | 142146 | 1644511 | 36576 | (97873) | 1583214 |
| Cost of revenue |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External vendors | (654678) |  | (224597) | (23994) | (903270) | (14494) |  | (917763) |
| &nbsp;&nbsp;&nbsp;Intersegment | (8932) | (84985) |  | (232) | (94149) | (3724) | 97873 |  |
| &nbsp;&nbsp;&nbsp;Total | (663610) | (84985) | (224597) | (24226) | (997419) | (18218) | 97873 | (917763) |
| Gross profit (loss) | 494683  | (5791 ) | 40281  | 117920  | 647092  | 18358  | -  | 665451  |
| &nbsp;&nbsp;&nbsp;Operating expenses |  |  |  |  |  |  | (596247) | (596247) |
| Operating income (loss) | 494683 | (5791) | 40281 | 117920 | 647092 | 18358 | (596247) | 69204 |
| Other expenses | - | - | - | - | - | - | (1050) | (1050) |
| Income (loss) before income taxes | ¥494683 | ¥(5791) | ¥40281 | ¥117920 | ¥647092 | ¥18358 | (597297) | 68154 |
| Depreciation and amortization |  |  |  |  |  |  | 6792 | 6792 |
| Capital expenditures |  |  |  |  |  |  | ¥4488 | ¥4488 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** | **Thousands of Yen** |
|  | **Mobile Network**<br> **Service** | **Advertising** | **Outsourcing Service** | **Travel<br> business** | **Total for reportable segments** | **Others<sup>(a)</sup>** | **Reconciling**<br> **Items(b)** | **Consolidated** |
| **May 31, 2023** |  |  |  |  |  |  |  |  |
| Net sales: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External customers | ¥1312062 | ¥83662 | ¥73397 | ¥229804 | ¥1698926 | ¥61498 | ¥- | ¥1760423 |
| &nbsp;&nbsp;&nbsp;Intersegment | 108209 |  |  |  | 108209 |  | (108209) |  |
| &nbsp;&nbsp;&nbsp;Total | 1420271 | 83662 | 73397 | 229804 | 1807135 | 61498 | (108209) | 1760423 |
| Cost of revenue |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;External vendors | (648996) |  | (46988) | (67470) | (763454) | (13921) |  | (777375) |
| &nbsp;&nbsp;&nbsp;Intersegment | (6855) | (89937) |  | (612) | (97404) | (10805) | 108209 |  |
| &nbsp;&nbsp;&nbsp;Total | (655851) | (89937) | (46988) | (68082) | (860858) | (24726) | 108209 | (777375) |
| Gross profit (loss) | 764420  | (6275 ) | 26409  | 161722  | 946277  | 36772  | -  | 983048  |
| &nbsp;&nbsp;&nbsp;Operating expenses |  |  |  |  |  |  | (561057) | (561057) |
| Operating income (loss) | 764420 | (6275) | 26409 | 161722 | 946277 | 36772 | (561057) | 421991 |
| Other expenses | - | - | - | - | - | - | (830) | (830) |
| Income (loss) before income taxes | ¥764420 | ¥(6275) | ¥26409 | ¥161722 | ¥946277 | ¥36772 | (561887) | 421161 |
| Depreciation and amortization |  |  |  |  |  |  | 5500 | 5500 |
| Capital expenditures |  |  |  |  |  |  | ¥95975 | ¥95975 |

---

(a) Revenue and income or loss from segments below the quantitative thresholds were attributable to two operating segments of the Company. Those segments include a merchandise business and an agency business. None of those segments has ever met any of the quantitative thresholds for determining reportable segments.

(b) Reconciling items include elimination of intersegment transactions and corporate expenses. Reconciling items in segment income (loss) includes amounts not allocated to each reportable segment that consist principally of corporate expenses of ¥596,247 thousand and ¥561,057 thousand for the fiscal years ended May 31, 2024 and 2023, respectively. Corporate expenses include certain director's compensation.

No asset information is provided for reportable operating segments, as these specified amounts are not included in the measure of segment income or loss reviewed by the Company's chief operating decision maker.

**NOTE 16 - NET INCOME PER SHARE**

The computation of basic and diluted net income per share in accordance with ASC Topic 260 for the fiscal years ended May 31, 2024 and 2023 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Thousands of Yen**<br> **except share and per share data** | **Thousands of Yen**<br> **except share and per share data** |
|  | **For the Fiscal Years Ended**<br> **May 31,** | **For the Fiscal Years Ended**<br> **May 31,** |
|  | **2024** | **2023** |
| Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | ¥40278 | ¥291724 |
| Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average number of ordinary shares outstanding used in calculating basic/diluted net income per share | 24720473 | 24720473 |
| Net income per share | ¥1.63 | ¥11.80 |

---

**NOTE 17 - CONSULTING AGREEMENT**

On January 22, 2024, the Company entered into a consulting and services agreement with Spirit Advisors. Pursuant to the agreement, the Company agreed to compensate Spirit Advisors with warrants, which will be granted and be exercisable upon completion of the proposed initial public offering ("IPO") for the period of 10 years to purchase 3% of the fully diluted share capital of the Company at the time of the IPO for an exercise price per share of $0.01, subject to adjustments as set forth in the warrant, for professional services to be provided by Spirit Advisors in connection with the IPO. Since the Company issued the share acquisition rights on January 7, 2025, the Company and Spirit Advisors will terminate the warrant prior to the consummation of the offering.

**NOTE 18 - SUBSEQUENT EVENTS**

On June 24, 2024, Center Mobile Japan's board of directors approved a 1-for-31,129 share split of its issued and outstanding ordinary shares which was based on a record date of June 30, 2024. On July 1, 2024, Center Mobile Japan effected a 1-for-31,129 share split of its issued and outstanding ordinary shares following the receipt of shareholder approval. In connection with the share split, the total number of outstanding ordinary shares increased from 257 to 8,000,153.

On November 25, 2024, Center Mobile Japan's board of directors approved a 1-for-3 share split of its issued and outstanding ordinary shares which was based on a record date of December 11, 2024. On December 12, 2024, Center Mobile Japan effected a 1-for-3 share split of its issued and outstanding ordinary shares following the receipt of shareholder approval. In connection with the share split, the total number of outstanding ordinary shares increased from 8,000,153 to 24,000,459.

On January 7, 2025, Center Mobile Japan issued 720,014 share acquisitions rights to Spirit Advisors, which are exercisable from January 7, 2025, to January 7, 2035 at an exercise price per share of $0.01. On January 22, 2025, Spirit Advisors exercised its 720,014 share acquisitions rights, whereby Center Mobile Japan issued 720,014 ordinary shares to Spirit Advisors on the same date, resulting in 24,720,473 ordinary shares being issued and outstanding.

Except for the above, the Company has assessed all events from June 1, 2024 through May 2, 2025, which is the date that the audited financial statements are available to be issued, and determined that there are not any material subsequent events that require disclosure in these audited financial statements.

***3,750,000 Ordinary Shares***

![](formf1_022.jpg)

 **Center Holdings Inc.**

**_________________________**

**Prospectus dated [ ], 2025**

**_________________________**

![](formf1_023.jpg)

Until [ ], 2025 (the 25<sup>th</sup> day after the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

RESALE PROSPECTUS ALTERNATE PAGES

The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the United States Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

Subject to Completion, dated June 13, 2025

**PRELIMINARY PROSPECTUS**

![](formf1_024.jpg)

**Center Holdings Inc.**

3,970,014 Ordinary Shares

This prospectus relates to the resale of 3,970,014 Ordinary Shares (the "Selling Shareholder Shares") by the selling shareholders (the "Selling Shareholders") named in this prospectus, based on an assumed initial public offering price of $[ ]. We will not receive any of the proceeds from the sale of the Ordinary Shares by the Selling Shareholders named in this prospectus. We are registering on the registration statement of which this prospectus forms a part a total of 8,282,514 Ordinary Shares, based on an assumed initial public offering price of $[ ]. Of the Ordinary Shares being registered, the Selling Shareholder Shares are being registered for resale by the Selling Shareholders, and 3,750,000 Ordinary Shares (the "Public Offering Shares"), assuming no exercise of the underwriters' option to purchase additional Ordinary Shares, are being registered for sale in connection with an initial public offering by the Company, in each case, based on an assumed initial public offering price of $[ ] per Ordinary Share. The offering of the Public Offering Shares is being made on a firm commitment basis. Prior to this offering, there has been no public market for our Ordinary Shares.

The sales price to the public of the Public Offering Shares and the Selling Shareholder Shares will be fixed at the initial public offering price per Public Offering Share until such time as our Ordinary Shares are listed on the Nasdaq Capital Market ("Nasdaq"); thereafter, the Selling Shareholder Shares may be sold at prevailing market prices, prices related to prevailing market prices or at privately negotiated prices. We will not receive any proceeds from the sale of any of the 3,970,014 Selling Shareholder Shares sold by the Selling Shareholders. The offering of the Selling Shareholder Shares by the Selling Shareholders will terminate at the earlier of such time as all of the Selling Shareholder Shares have been sold pursuant to the registration statement and the date on which it is no longer necessary to maintain the registration of the Selling Shareholder Shares as a result of such Ordinary Shares being permitted to be offered and resold without restriction pursuant to the provisions of Rule 144 of the Securities Act of 1933, as amended (the "Securities Act"), and the offering of the Selling Shareholder Shares may extend for a longer period of time than the offering of the Public Offering Shares. The Selling Shareholder Shares will be resold from time to time by the Selling Shareholders.

We have applied to list the Ordinary Shares on the Nasdaq Capital Market ("Nasdaq") under the symbol "CTMB". It is a condition to the closing of this offering that the Ordinary Shares qualify for listing on Nasdaq and there is no guarantee or assurance that our Ordinary Shares will be approved for listing on Nasdaq. At this time, Nasdaq has not yet approved our application to list our Ordinary Shares.

**Investing in our Ordinary Shares involves a high degree of risk, including the risk of losing your entire investment. See "Risk Factors" beginning on page 10 to read about factors you should consider before buying our Ordinary Shares.**

We are an "emerging growth company" as defined under the federal securities laws and will be subject to reduced public company reporting requirements. Please read the disclosures beginning on page 4 of this prospectus for more information.

**Neither the U.S. Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.**

The date of this prospectus is , 2025

**THE OFFERING**

---

| | |
|:---|:---|
| **Securities offered by the Selling Shareholders** | 3,970,014 Ordinary Shares |
| **Use of proceeds** | The Company will not receive any of the proceeds from the sale of the Resale Shares. |
| **Risk Factors** | Investing in our Ordinary Shares is highly speculative and involves a high degree of risk. As an investor you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the "Risk Factors" section beginning on page 10 of the Public Offering Prospectus. |

---

**USE OF PROCEEDS**

We will not receive any of the proceeds from the sale of Ordinary Shares by the Selling Shareholders. In addition, the underwriters will not receive any compensation from the sale of the Ordinary Shares by the Selling Shareholders. The Selling Shareholders will receive all of the net proceeds from the sales of Selling Shareholder Shares under this prospectus. We have agreed to bear the expenses relating to the registration of the Ordinary Shares for the Selling Shareholders.

**SELLING SHAREHOLDERS**

The following table sets forth the names of the Selling Shareholders, the number of Ordinary Shares owned by each Selling Shareholder immediately prior to the date of this prospectus and the number of Ordinary Shares to be offered by each Selling Shareholder pursuant to the Public Offering Prospectus and the Resale Prospectus. The table also provides information regarding the beneficial ownership of our Ordinary Shares by the Selling Shareholders as adjusted to reflect the assumed sale of all of the Ordinary Shares offered under the Public Offering Prospectus and the Resale Prospectus, based on an assumed public offering price of $[ ] per Ordinary Share.

Beneficial ownership is based on information furnished by the Selling Shareholders. Except as indicated below, and subject to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all Ordinary Shares shown as beneficially owned by them.

None of the Selling Shareholders has had any position, office or other material relationship within the past three years with the Company. None of the Selling Shareholders is a broker-dealer or an affiliate of a broker-dealer. For the Ordinary Shares to be offered by the Selling Shareholders, they do not have an agreement or understanding to distribute any of the Ordinary Shares being registered. Each Selling Shareholder may offer for sale, from time to time, any or all of the Ordinary Shares. The table below assumes that the Selling Shareholders will sell all of the Ordinary Shares offered for sale by the Resale Prospectus.

Beneficial ownership is determined in accordance with the rules of the SEC and generally requires that such person have voting or investment power with respect to securities. In computing the number of Ordinary Shares beneficially owned by a person listed below and the percentage ownership of such person, Ordinary Shares underlying options, warrants, or convertible securities held by each such person that are exercisable or convertible within 60 days of the date of this prospectus are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person.

The Company may require the Selling Shareholders to suspend the sales of Ordinary Shares offered by this prospectus upon the occurrence of any event that makes any statement in this prospectus or the related registration statement untrue in any material respect or that requires the changing of statements in these documents in order to make statements in those documents not misleading.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name of the Selling Shareholders** | **Ordinary <br> Shares <br> Beneficially <br> Owned <br> Prior to <br> Offering<sup>(1)</sup>** | **Percentage <br> Ownership <br> Prior to <br> Offering<sup>(2)</sup>** | **Maximum <br> Number <br> of Resale <br> Shares to <br> be Sold<sup>(3)</sup>** | **Number of <br> Ordinary <br> Shares <br> Owned <br> After <br> Offering** | **Percentage <br> Ownership <br> After <br> Offering** |
| Kabushiki Kaisha Oekaki Movie <sup>(4)</sup> | 1123000 | 4.54% | 1123000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0% |
| Kabushiki Kaisha Live Freeze <sup>(5)</sup> | 1018000 | 4.12% | 1018000 | 0 | 0% |
| Spirit Advisors LLC<sup>(6)</sup> | 720014 | 2.91% | 720014 | 0 | 0% |
| PeakValue, LLC <sup>(7)</sup> | 687900 | 2.78% | 687900 | 0 | 0% |
| B88 Investments Group, LLC<sup>(8)</sup> | 421100 | 1.70% | 421100 | 0 | 0% |

---

(1) For the purpose of this table only, the offering refers to the resale of the Ordinary Shares by the Selling Shareholders listed above, assuming the closing of our initial public offering.

(2) Based on 24,720,473 Ordinary Shares outstanding as of the date of this prospectus.

(3) This number represents all of the Ordinary Shares that the Selling Shareholders may resell, as applicable, all of which the Company agreed to register.

(4) Kabushiki Kaisha Oekaki Movie holds voting and/or dispositive power over 1,123,000 Ordinary Shares. The principal address of Kabushiki Kaisha Oekaki Movie is: 3 Osaka International Building, 2-3-13 Azuchi Machi, Chuo-ku, Osaka-shi, Osaka, Japan.

(5) Kabushiki Kaisha Live Freeze holds voting and/or dispositive power over 1,018,000 Ordinary Shares. The principal address of Kabushiki Kaisha Live Freeze is: 1 Sasaki Building, 20-1-12 Kita Nizyo Nishi, Chuo-ku, Sapporo-shi, Hokkaido, Japan.

(6) Spirit Advisors LLC holds voting and/or dispositive power over 720,014 Ordinary Shares. The Principal address of Spirit Advisors LLC is: 477 Madison Ave, 6th Floor New York, NY 10022.

(7) PeakValue, LLC holds voting and/or dispositive power over 687,900 Ordinary Shares. The principal address of PeakValue, LLC is: 1732 1st Ave, Suite 28646, New York NY 10128.

(8) B88 Investments Group, LLC holds voting and/or dispositive power over 421,100 Ordinary Shares. The principal address of B88 Investments Group, LLC is: 111 North Orange Avenue, Suite 800, Orlando, FL 32801.

**PLAN OF DISTRIBUTION**

The Selling Shareholders and any of their pledgees, donees, assignees and successors-in-interest may, from time to time, after the effective date of the registration statement of which this Resale Prospectus forms a part, sell any or all of their Ordinary Shares being offered under this Resale Prospectus on any stock exchange, market or trading facility on which our Ordinary Shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The Selling Shareholders will offer for sale the Selling Shareholder Shares covered by the Resale Prospectus at the initial public offering price of the Public Offering Shares until such time as the Ordinary Shares are listed on Nasdaq. Thereafter, the Selling Shareholders may sell their respective Selling Shareholder Shares covered by the Resale Prospectus from time to time, at market prices prevailing at the time of sale, at prices related to market prices, at a fixed price or prices subject to change or at negotiated prices, or in any manner permitted by the Securities Act, including any one or more of the following ways:

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the Ordinary Shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resales by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● to cover short sales made after the date that the registration statement of which this prospectus forms a part is declared effective by the SEC;

● broker-dealers may agree with the Selling Shareholders to sell a specified number of such Ordinary Shares at a stipulated price per share;

● a combination of any of these methods of sale; and

● any other method permitted pursuant to applicable law.

The Ordinary Shares may also be sold under Rule 144 under the Securities Act of 1933, as amended, if available for a Selling Shareholder, rather than under this prospectus. The Selling Shareholders have the sole and absolute discretion not to accept any purchase offer or make any sale of Ordinary Shares if they deem the purchase price to be unsatisfactory at any particular time.

The Selling Shareholders may pledge their Ordinary Shares to their brokers under the margin provisions of customer agreements. If a Selling Shareholder defaults on a margin loan, the broker may, from time to time, offer and sell the pledged Ordinary Shares.

Broker-dealers engaged by the Selling Shareholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Shareholders (or, if any broker-dealer acts as agent for the purchaser of Ordinary Shares, from the purchaser) in amounts to be negotiated, which commissions as to a particular broker or dealer may be in excess of customary commissions to the extent permitted by applicable law.

If sales of Ordinary Shares offered under the Resale Prospectus are made to broker-dealers as principals, we would be required to file a post-effective amendment to the registration statement of which the Resale Prospectus forms a part. In the post-effective amendment, we would be required to disclose the names of any participating broker- dealers and the compensation arrangements relating to such sales.

The Selling Shareholders and any broker-dealers or agents that are involved in selling the Ordinary Shares offered under the Resale Prospectus may be deemed to be "underwriters" within the meaning of the Securities Act in connection with these sales. Commissions received by these broker-dealers or agents and any profit on the resale of the Ordinary Shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Any broker-dealers or agents that are deemed to be underwriters may not sell Ordinary Shares offered under the Resale Prospectus unless and until we set forth the names of the underwriters and the material details of their underwriting arrangements in a supplement to the Resale Prospectus or, if required, in a replacement prospectus included in a post-effective amendment to the registration statement of which the Resale Prospectus forms a part.

The Selling Shareholders and any other persons participating in the sale or distribution of the Ordinary Shares offered under the Resale Prospectus will be subject to applicable provisions of the Exchange Act, and the rules and regulations under that act, including Regulation M. These provisions may restrict activities of, and limit the timing of purchases and sales of any of the Ordinary Shares by, the Selling Shareholders or any other person. Furthermore, under Regulation M, persons engaged in a distribution of securities are prohibited from simultaneously engaging in market making and other activities with respect to those securities for a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. All of these limitations may affect the marketability of the securities.

The Selling Shareholders may enter into hedging transactions with broker-dealers or other financial institutions. In connection with such transactions, broker-dealers or other financial institutions may engage in short sales of the Ordinary Shares in the course of hedging transactions, broker-dealers or other financial institutions may engage in short sales of the Ordinary Shares in the course of hedging the positions they assume with a Selling Shareholder. The Selling Shareholders may also sell the Selling Shareholder Shares short and redeliver the securities to close out such short positions. Selling Shareholders may also enter into option or other transactions with broker-dealers or other financial institutions which require the delivery to such broker-dealer or other financial institution of the Selling Shareholder Shares offered by the Resale Prospectus, which shares such broker-dealer or other financial institution may resell pursuant to such prospectus, as supplemented or amended to reflect such transaction to the extent required. The Selling Shareholders may also pledge the Selling Shareholder Shares offered hereby to a broker- dealer or other financial institution, and, upon a default, such broker-dealer or other financial institution, may effect sales of the pledged Selling Shareholder Shares pursuant to the Resale Prospectus, as supplemented or amended to reflect such transaction to the extent required.

The Selling Shareholders may enter into derivative transactions with third parties or sell their respective Selling Shareholder Shares to third parties in privately negotiated transactions. If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell the Selling Shareholder Shares covered by the Resale Prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party may use Selling Shareholder Shares pledged by a Selling Shareholder or borrowed from a Selling Shareholder or others to settle those sales or to close out any related open borrowings of stock and may use such Selling Shareholder Shares received from such Selling Shareholders in settlement of those derivatives to close out any related open borrowings of stock. The third party in such sale transactions will be an underwriter and, if not identified in the Resale Prospectus, will be identified in the applicable prospectus supplement (or a post-effective amendment).

We may authorize underwriters, dealers and agents to solicit from third parties offers to purchase Selling Shareholder Shares under contracts providing for payment and delivery on future dates. The applicable prospectus supplement will describe the material terms of these contracts, including any conditions to the purchasers' obligations, and will include any required information about commissions we may pay for soliciting these contracts.

Such underwriters may also impose a penalty bid. This occurs when a particular underwriter repays to other underwriters a portion of the underwriting discount received by it because the representatives have repurchased Ordinary Shares sold by or for the account of such underwriter in stabilizing or short covering transactions.

Purchases to cover a short position and stabilizing transactions may have the effect of preventing or retarding a decline in the market price of Ordinary Shares, and together with the imposition of the penalty bid, may stabilize, maintain or otherwise affect the market price of Ordinary Shares. As a result, the price of Ordinary Shares may be higher than the price that otherwise might exist in the open market. If these activities are commenced, they may be discontinued at any time.

In addition, a Selling Shareholder that is an entity may elect to make a pro rata in-kind distribution of securities to its members, partners or stockholders pursuant to the registration statement of which the Resale Prospectus forms a part by delivering a prospectus. Such members, partners or stockholders would thereby receive freely tradeable Ordinary Shares pursuant to the distribution through such registration statement. To the extent a distributee is an affiliate of ours (or to the extent otherwise required by law), we may file a prospectus supplement in order to permit the distributees to use such prospectus to resell such Ordinary Shares acquired in such distribution.

The Selling Shareholder Shares covered by the Resale Prospectus may also be sold in private transactions or under Rule 144 under the Securities Act rather than pursuant to such prospectus.

If any of the Ordinary Shares offered for sale pursuant to the Resale Prospectus are transferred other than pursuant to a sale under the Resale Prospectus, then subsequent holders could not use the Resale Prospectus until a post-effective amendment or prospectus supplement is filed, naming such holders. We offer no assurance as to whether any of the Selling Shareholders will sell all or any portion of the Ordinary Shares offered under the Resale Prospectus.

We have agreed to pay all fees and expenses we incur incident to the registration of the Ordinary Shares being offered under the Resale Prospectus. However, each Selling Shareholder and purchaser is responsible for paying any discounts, and similar selling expenses they incur.

We and the Selling Shareholders have agreed to indemnify one another against certain losses, damages and liabilities arising in connection with the Resale Prospectus, including liabilities under the Securities Act.

**3,970,014 ORDINARY SHARES**

**TO BE SOLD BY SELLING SHAREHOLDERS NAMED HEREIN**

![](formf1_025.jpg)

**Center Holdings Inc.**

<br> **RESALE PROSPECTUS**<br>

**[ ], 2025**

Until [ ], 2025 (the 25th day after the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

**PART II INFORMATION NOT REQUIRED IN PROSPECTUS**

**ITEM 6. INDEMNIFICATION OF DIRECTORS.**

Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against the consequences of committing a crime, or against the indemnified person's own fraud or dishonesty.

Our articles of association provide that we will indemnify every director, secretary, assistant secretary, or other officer for the time being and from time to time of our Company (but not including our auditors) and the personal representatives of the same and from: (a) all actions, proceedings, costs, charges, expenses, losses, damages, or liabilities incurred or sustained by such person, other than by reason of such person's own dishonesty, willful default, or fraud, in or about the conduct of our business or affairs or in the execution or discharge of that person's duties, powers, authorities, or discretions; and (b) without limitation to paragraph (a) above, all costs, expenses, losses, or liabilities incurred by such person in defending (whether successfully or otherwise) any civil proceedings concerning us or our affairs in any court, whether in the Cayman Islands or elsewhere.

Pursuant to indemnification agreements, the form of which will be filed as Exhibit 10.7 to this registration statement, we will agree to indemnify our directors and officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being such a director or officer.

The Underwriting Agreement, the form of which will be filed as Exhibit 1.1 to this registration statement, will also provide for indemnification of us and our officers and directors.

**ITEM 7. RECENT SALES OF UNREGISTERED SECURITIES.**

During the past three years, we have issued the following securities which were not registered under the Securities Act. We believe that each of the following issuance was exempt from registration under the Securities Act in reliance on Regulation D under the Securities Act or pursuant to Section 4(2) of the Securities Act regarding transactions not involving a public offering or in reliance on Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. No underwriters were involved in these issuances of securities.

On April 10, 2025, we issued 1 Ordinary Share to the initial subscriber, which was transferred to Mr. Tatsuya Nakagoshi.

On June [ ], 2025, we issued an aggregate of 24,720,472 Ordinary Shares to Center Mobile Japan's shareholders for the exchange of their 100% of the equity interests in Center Mobile Japan.

**ITEM 8. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.**

**(a) Exhibits**

See Exhibit Index beginning on page II-5 of this registration statement.

**(b) Financial Statement Schedules**

Schedules have been omitted because the information required to be set forth therein is not applicable or is shown in the financial statements or the notes thereto.

**ITEM 9. UNDERTAKINGS.**

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described in Item 6, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer, or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

(a) The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to include any prospectus required by Section 10(a)(3) of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "*Calculation of Registration Fee*" table in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated by reference in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) that, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act (15 U.S.C. 77j(a)(3)) need not be furnished, provided that the Registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) that, for the purpose of determining liability under the Securities Act to any purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the issuer is relying on Rule 430B:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) each prospectus filed by the undersigned issuer pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offerings described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the issuer is relying on Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) that, for the purpose of determining liability of the Registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any preliminary prospectus or prospectus of the undersigned Registrant relating to the offerings required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any free writing prospectus relating to the offerings prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the portion of any other free writing prospectus relating to the offerings containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other communication that is an offer in the offerings made by the undersigned Registrant to the purchaser.

(b) The undersigned Registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
|  | **Description** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1\*\*\* | [Memorandum and Articles of Association](ex3-1.htm) |
| 3.2\*\*\* | [Form of Amended and Restated Memorandum and Articles of Association of the Registrant, conditional upon and with effect from the date of listing](ex3-2.htm) |
| 4.1\*\*\* | [Specimen Certificate for Ordinary Shares](ex4-1.htm) |
| 5.1\* | Opinion of Conyers Dill & Pearman regarding the validity of Ordinary Shares being registered |
| 10.1\*\* | [English Translation of Application License Agreement between the Registrant and FourM Co., Ltd.](https://www.sec.gov/Archives/edgar/data/2040291/000164117225008411/ex10-1.htm) |
| 10.2\*\*\* | [English Translation of Service Agreement between the Registrant and FreeBit Co., Ltd.](ex10-2.htm) |
| 10.3\*\* | [English Translation of the Form of OEM Service Agreement between the Registrant and its OEM Partners](https://www.sec.gov/Archives/edgar/data/2040291/000164117225008411/ex10-3.htm) |
| 10.4\*\* | [English Translation of the Form of Franchise Agreement between the Registrant and its Franchise Store Owners](https://www.sec.gov/Archives/edgar/data/2040291/000164117225008411/ex10-4.htm) |
| 10.5\*\* | [English Translation of Consulting Agreement between the Registrant and the Japanese Technology Company](https://www.sec.gov/Archives/edgar/data/2040291/000164117225008411/ex10-5.htm) |
| 10.6\*\* | [English Translation of the Basic Worker Dispatch Agreement between the Registrant and PayPay Corporation](https://www.sec.gov/Archives/edgar/data/2040291/000164117225008411/ex10-6.htm) |
| 10.7\*\*\* | [Form of Indemnification Agreement with the Registrant's directors and officers](ex10-7.htm) |
| 21.1\*\* | [List of Subsidiaries](https://www.sec.gov/Archives/edgar/data/2040291/000164117225008411/ex21-1.htm) |
| 23.1\*\*\* | [Consent of Onestop Assurance PAC](ex23-1.htm) |
| 23.2\* | Consent of Conyers Dill & Pearman (included in Exhibit 5.1) |
| 23.3\*\*\* | [Consent of TMI Associates](ex23-3.htm) |
| 24.1\*\* | [Powers of Attorney (included on signature page)](https://www.sec.gov/Archives/edgar/data/2040291/000164117225008411/formf-1.htm#poa) |
| 99.1\*\*\* | [Code of Business Conduct and Ethics of the Registrant](ex99-1.htm) |
| 99.2\*\*\*  | [Request for Waiver and Representation under Item 8.A.4 of Form 20-F](ex99-2.htm)  |
| 107\*\* | [Filing Fee Table](https://www.sec.gov/Archives/edgar/data/2040291/000164117225008411/ex107.htm) |

---

\* To be filed by amendment <br> \*\* Previously filed <br> \*\*\* Filed herewith

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Osaka, Japan, on June 13, 2025.

---

| | |
|:---|:---|
| **Center Holdings Inc.** | **Center Holdings Inc.** |
| By: | */s/ Yu Asano* |
|  | Mr. Yu Asano |
|  | Representative Director and Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Yu Asano* | Representative Director and Chief Executive Officer | June 13, 2025 |
| Name: Yu Asano | (Principal Executive Officer) |  |
| */s/ Kazuo Iseji* | Director and Chief Financial Officer | June 13, 2025 |
| Name: Kazuo Iseji | (Principal Financial and Accounting Officer) |  |
| *\** | Director | June 13, 2025 |
| Name: Tatsuya Nakagoshi |  |  |
| *\** | Director and Chief Technology Officer | June 13, 2025 |
| Name: Yoshiaki Izutsu |  |  |
| *\** | Director | June 13, 2025 |
| Name: Shintaro Yamaguchi |  |  |
| *\** | Director | June 13, 2025 |
| Name: Yuki Hayakawa |  |  |
| *\** | Director | June 13, 2025 |
| Name: Yusuke Kanazawa |  |  |

---

---

| | |
|:---|:---|
| \*By: | */s/ Yu Asano* |
|  | Name: Yu Asano<br> Attorney-in-fact |

---

**SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES**

Pursuant to the Securities Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of America of Center Holdings Inc., has signed this registration statement or amendment thereto in New York, NY on June 13, 2025.

---

| | |
|:---|:---|
| Authorized U.S. Representative | Authorized U.S. Representative |
| By: | */s/ Colleen A. De Vries* |
| Name: | Colleen A. De Vries |
| Title: | Senior Vice President on behalf of Cogency Global Inc. |

---

## Exhibit 3.1

**Exhibit 3.1**

---

| | |
|:---|:---|
| ![](ex3-1_001.jpg) | ![](ex3-1_002.jpg) |

---

Memorandum of Association of

Center Holdings Inc.

Grand Cayman

Cayman Islands

**conyers.com**

*Auth Code: G17690941845*

*www.verify.gov.ky*

 

 

 

**THE COMPANIES ACT (REVISED)**

**EXEMPTED COMPANY LIMITED BY SHARES**

**MEMORANDUM OF ASSOCIATION**

**OF**

**Center Holdings Inc.**

1. The name of the Company is Center Holdings Inc..

2. The registered office of the Company shall be at the offices of Conyers Trust Company (Cayman) Limited,
Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1- 1111, Cayman Islands.

3. Subject to the following provisions of this Memorandum, the objects for which the Company is established
are unrestricted.

4. Subject to the following provisions of this Memorandum, the Company shall have and be capable of exercising
all the functions of a natural person of full capacity irrespective of any question of corporate benefit, as provided by Section 27(2)
of the Companies Act.

5. Nothing in this Memorandum shall permit the Company to carry on a business for which a licence is required
under the laws of the Cayman Islands unless duly licensed.

6. The Company shall not trade in the Cayman Islands with any person, firm or corporation except in furtherance
of the business of the Company carried on outside the Cayman Islands; provided that nothing in this clause shall be construed as to prevent
the Company effecting and concluding contracts in the Cayman Islands, and exercising in the Cayman Islands all of its powers necessary
for the carrying on of its business outside the Cayman Islands.

7. The liability of each member is limited to the amount from time to time unpaid on such member's
shares.

8. The share capital of the Company is US$100 divided into 1,000,000,000 shares of a nominal or par value
of US$0.0000001 each.

9. The Company may exercise the power contained in the Companies Act to deregister in the Cayman Islands
and be registered by way of continuation in another jurisdiction.

---

| |
|:---|
| **2** |
| *Auth Code: G17690941845*<br>*www.verify.gov.ky* |

---

![](ex3-1_002.jpg)

 

We, the undersigned, are desirous of being formed into a company pursuant to this Memorandum and the Companies Act, and we hereby agree to take the numbers of shares set opposite our respective names below.

Dated this 10th day of April, 2025

---

| | |
|:---|:---|
| **SIGNATURE, NAME, OCCUPATION AND ADDRESS OF SUBSCRIBER** | **NUMBER OF SHARES TAKEN BY SUBSCRIBER** |

---

---

| |
|:---|
| Conyers Corporate Services (Cayman) Limited |
| One (1) Cricket Square, Hutchins Drive, |
| P.O. Box 2681 |
| Grand Cayman KY1-1111<br> Cayman Islands |
| ![](ex3-1_004.jpg) |
| Charlotte Cloete<br> Authorised signatory for |
| Conyers Corporate Services (Cayman) Limited |
| ![](ex3-1_005.jpg) |
| Roshekia Taylor |
| Witness to the above signature |

---

Address: Cricket Square, Hutchins Drive, <br> P.O. Box 2681 <br> Grand Cayman KY1-1111 Cayman Islands

Occupation: Onboarding Administrator

---

| |
|:---|
| **3** |
| *Auth Code: G17690941845*<br>*www.verify.gov.ky* |

---

---

| | |
|:---|:---|
| ![](ex3-1_003.jpg) | ![](ex3-1_002.jpg) |

---

 

Articles of Association of

Center Holdings Inc.

Grand Cayman

Cayman Islands

**conyers.com**

*Auth Code: G17690941845 www.verify.gov.ky*

---

| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **INTERPRETATION** | **INTERPRETATION** | 1 |
| **1.** | Definitions | 1 |
| **SHARES** | **SHARES** | 4 |
| **2.** | Power to Issue Shares | 4 |
| **3.** | Redemption, Purchase, Surrender and Treasury Shares | 5 |
| **4.** | Rights Attaching to Shares | 6 |
| **5.** | Calls on Shares | 6 |
| **6.** | Joint and Several Liability to Pay Calls | 6 |
| **7.** | Forfeiture of Shares | 7 |
| **8.** | Share Certificates | 8 |
| **9.** | Fractional Shares | 8 |
| **REGISTRATION OF SHARES** | **REGISTRATION OF SHARES** | 8 |
| **10.** | Register of Members | 8 |
| **11.** | Registered Holder Absolute Owner | 9 |
| **12.** | Transfer of Registered Shares | 10 |
| **13.** | Transmission of Registered Shares | 11 |
| **14.** | Listed Shares | 13 |
| **ALTERATION OF SHARE CAPITAL** | **ALTERATION OF SHARE CAPITAL** | 13 |
| **15.** | Power to Alter Capital | 13 |
| **16.** | Variation of Rights Attaching to Shares | 14 |
| **DIVIDENDS AND CAPITALISATION** | **DIVIDENDS AND CAPITALISATION** | 14 |
| **17.** | Dividends | 14 |
| **18.** | Power to Set Aside Profits | 15 |
| **19.** | Method of Payment | 15 |
| **20.** | Capitalisation | 16 |
| **MEETINGS OF MEMBERS** | **MEETINGS OF MEMBERS** | 16 |
| **21.** | Annual General Meetings | 16 |
| **22.** | Extraordinary General Meetings | 16 |
| **23.** | Requisitioned General Meetings | 17 |
| **24.** | Notice | 17 |
| **25.** | Giving Notice and Access | 18 |
| **26.** | Postponement of General Meeting | 19 |
| **27.** | Electronic Participation in Meetings | 19 |

---

 

*Auth Code: G17690941845 www.verify.gov.ky*

---

| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

---

| | | |
|:---|:---|:---|
| **28.** | Quorum at General Meetings | 19.0 |
| **29.** | Chairman to Preside | 20.0 |
| **30.** | Voting on Resolutions | 20.0 |
| **31.** | Power to Demand a Vote on a Poll | 20.0 |
| **32.** | Voting by Joint Holders of Shares | 21.0 |
| **33.** | Instrument of Proxy | 22.0 |
| **34.** | Representation of Corporate Member | 23.0 |
| **35.** | Adjournment of General Meeting | 23.0 |
| **36.** | Written Resolutions | 23.0 |
| **37.** | Directors Attendance at General Meetings | 24.0 |
| **DIRECTORS AND OFFICERS** | **DIRECTORS AND OFFICERS** | 24.0 |
| **38.** | Election of Directors | 24.0 |
| **39.** | Number of Directors | 24.0 |
| **40.** | Term of Office of Directors | 24.0 |
| **41.** | Alternate Directors | 25.0 |
| **42.** | Removal of Directors | 26.0 |
| **43.** | Vacancy in the Office of Director | 26.0 |
| **44.** | Remuneration of Directors | 27.0 |
| **45.** | Defect in Appointment | 27.0 |
| **46.** | Directors to Manage Business | 27.0 |
| **47.** | Powers of the Board of Directors | 27.0 |
| **48.** | Register of Directors and Officers | 29.0 |
| **49.** | Officers | 29.0 |
| **50.** | Appointment of Officers | 29.0 |
| **51.** | Duties of Officers | 29.0 |
| **52.** | Remuneration of Officers | 29.0 |
| **53.** | Conflicts of Interest | 29.0 |
| **54.** | Indemnification and Exculpation of Directors and Officers | 30.0 |
| **MEETINGS OF THE BOARD OF DIRECTORS** | **MEETINGS OF THE BOARD OF DIRECTORS** | 31.0 |
| **55.** | Board Meetings | 31.0 |
| **56.** | Notice of Board Meetings | 31.0 |
| **57.** | Electronic Participation in Meetings | 31.0 |
| **58.** | Representation of Director | 31.0 |
| **59.** | Quorum at Board Meetings | 32.0 |
| **60.** | Board to Continue in the Event of Vacancy | 32.0 |
| **61.** | Chairman to Preside | 32.0 |

---

 

*Auth Code: G17690941845 www.verify.gov.ky*

 

---

| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

 

---

| | | |
|:---|:---|:---|
| **62.** | Written Resolutions | 32.0 |
| **63.** | Validity of Prior Acts of the Board | 33.0 |
| **CORPORATE RECORDS** | **CORPORATE RECORDS** | 33.0 |
| **64.** | Minutes | 33.0 |
| **65.** | Register of Mortgages and Charges | 33.0 |
| **66.** | Form and Use of Seal | 34.0 |
| **ACCOUNTS** | **ACCOUNTS** | 34.0 |
| **67.** | Books of Account | 34.0 |
| **68.** | Financial Year End | 35.0 |
| **AUDITS** | **AUDITS** | 35.0 |
| **69.** | Audit | 35.0 |
| **70.** | Appointment of Auditors | 35.0 |
| **71.** | Remuneration of Auditors | 36.0 |
| **72.** | Duties of Auditor | 36.0 |
| **73.** | Access to Records | 36.0 |
| **VOLUNTARY WINDING-UP AND DISSOLUTION** | **VOLUNTARY WINDING-UP AND DISSOLUTION** | 36.0 |
| **74.** | Winding-Up | 36.0 |
| **CHANGES TO CONSTITUTION** | **CHANGES TO CONSTITUTION** | 37.0 |
| **75.** | Changes to Articles | 37.0 |
| **76.** | Changes to the Memorandum of Association | 37.0 |
| **77.** | Discontinuance | 37.0 |
| **78.** | Mergers and Consolidations | 37.0 |

---

 

*Auth Code: G17690941845 www.verify.gov.ky*

---

| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

 

**THE COMPANIES ACT (REVISED)**

**EXEMPTED COMPANY LIMITED BY SHARES**

**ARTICLES OF ASSOCIATION**

**OF**

**Center Holdings Inc.**

**Table A**

**The regulations in Table A in the First Schedule to the Act (as defined below) do not apply to the Company.**

**INTERPRETATION**

1. DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. In these Articles, the following words and expressions shall, where not inconsistent with the context,
have the following meanings, respectively:

---

| | |
|:---|:---|
| **Act** | the Companies Act of the Cayman Islands; |
| **Alternate Director** | an alternate director appointed in accordance with these Articles; |
| **Articles** | these Articles of Association as altered from time to time; |
| **Auditor** | the person or firm for the time being appointed as Auditor of the Company and shall include an individual or partnership; |

---

---

| |
|:---|
| **1** |
| *Auth Code: G17690941845*<br>*www.verify.gov.ky* |

---

---

| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

---

| | |
|:---|:---|
| **Board** | the board of directors (including, for the avoidance of doubt, a sole director) appointed or elected pursuant to these Articles and acting at a meeting of directors at which there is a quorum or by written resolution in accordance with these Articles; |
| **Company** | the company for which these Articles are approved and confirmed; |
| **Director** | a director, including a sole director, for the time being of the Company and shall include an Alternate Director; |
| **Member** | the person registered in the Register of Members as the holder of shares in the Company and, when two or more persons are so registered as joint holders of shares, means the person whose name stands first in the Register of Members as one of such joint holders or all of such persons, as the context so requires; |
| **month** | calendar month; |
| **notice** | written notice as further provided in these Articles unless otherwise specifically stated; |
| **Officer** | any person appointed by the Board to hold an office in the Company; |
| **ordinary resolution** | a resolution passed at a general meeting (or, if so specified, a meeting of Members holding a class of shares) of the Company by a simple majority of the votes cast, or a written resolution passed by the unanimous consent of all Members entitled to vote; |
| **paid-up** | paid-up or credited as paid-up; |

---

---

| |
|:---|
| **2** |
| *Auth Code: G17690941845*<br>*www.verify.gov.ky* |

---

---

| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

---

| | |
|:---|:---|
| **Register of Directors and Officers** | the register of directors and officers referred to in these Articles; |
| **Register of Members** | the register of members maintained by the Company in accordance with the Act; |
| **Seal** | the common seal or any official or duplicate seal of the Company; |
| **Secretary** | the person appointed to perform any or all of the duties of secretary of the Company and includes any deputy or assistant secretary and any person appointed by the Board to perform any of the duties of the Secretary; |
| **share** | includes a fraction of a share; |

---

---

| | | |
|:---|:---|:---|
| **Special Resolution** | (i) | a resolution passed by a majority of at least two-thirds of such members as, being entitled to do so, vote in person or by proxy at a general meeting of which notice specifying the intention to propose a resolution as a special resolution has been duly given (and for the avoidance of doubt, unanimity qualifies as a majority); or |
|  | (ii) | a written resolution passed by unanimous consent of all Members entitled to vote; |

---

---

| | |
|:---|:---|
| **written resolution** | a resolution passed in accordance with Article 36 or 62; and |
| **year** | calendar year. |

---

1.2. In these Articles, where not inconsistent with the context:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words denoting the plural number include the singular number and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words denoting the masculine gender include the feminine and neuter genders;

---

| |
|:---|
| **3** |
| *Auth Code: G17690941845*<br>*www.verify.gov.ky* |

---

---

| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing persons include companies, associations or bodies of persons whether corporate or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the words:-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "may" shall be construed as permissive; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "shall" shall be construed as imperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a reference to statutory provision shall be deemed to include any amendment or re- enactment thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the word "corporation" means corporation whether or not a company within the meaning of the
Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) unless otherwise provided herein, words or expressions defined in the Act shall bear the same meaning
in these Articles.

1.3. In these Articles expressions referring to writing or its cognates shall, unless the contrary intention
appears, include facsimile, printing, lithography, photography, electronic mail and other modes of representing words in visible form.

1.4. Headings used in these Articles are for convenience only and are not to be used or relied upon in the
construction hereof.

**SHARES**

2. POWER TO ISSUE SHARES

Subject to these Articles and to any resolution of the Members to the contrary, and without prejudice to any special rights previously conferred on the holders of any existing shares or class of shares, the Board shall have the power to issue any unissued shares on such terms and conditions as it may determine and any shares or class of shares (including the issue or grant of options, warrants and other rights, renounceable or otherwise in respect of shares) may be issued with such preferred, deferred or other special rights or such restrictions, whether in regard to dividend, voting, return of capital, or otherwise, provided that no share shall be issued at a discount except in accordance with the Act.

---

| |
|:---|
| **4** |
| *Auth Code: G17690941845*<br>*www.verify.gov.ky* |

---

---

| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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3. REDEMPTION, PURCHASE, SURRENDER AND TREASURY SHARES

3.1. Subject to the Act, the Company is authorised to issue shares which are to be redeemed or are liable to
be redeemed at the option of the Company or a Member and may make payments in respect of such redemption in accordance with the Act.

3.2. The Company is authorised to purchase any share in the Company (including a redeemable share) by agreement
with the holder and may make payments in respect of such purchase in accordance with the Act.

3.3. The Company authorises the Board to determine the manner or any of the terms of any redemption or purchase.

3.4. A delay in payment of the redemption price shall not affect the redemption but, in the case of a delay
of more than thirty days, interest shall be paid for the period from the due date until actual payment at a rate which the Board, after
due enquiry, estimates to be representative of the rates being offered by Class A banks in the Cayman Islands for thirty day deposits
in the same currency.

3.5. The Company authorises the Board pursuant to section 37(5) of the Act to make a payment in respect of
the redemption or purchase of its own shares otherwise than out of its profits, share premium account, or the proceeds of a fresh issue
of shares.

3.6. No share may be redeemed or purchased unless it is fully paid-up.

3.7. The Company may accept the surrender for no consideration of any fully paid share (including a redeemable
share) unless, as a result of the surrender, there would no longer be any issued shares of the company other than shares held as treasury
shares.

3.8. The Company is authorised to hold treasury shares in accordance with the Act.

3.9. The Board may designate as treasury shares any of its shares that it purchases or redeems, or any shares
surrendered to it, in accordance with the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10. Shares held by the Company as treasury shares shall continue to be classified as treasury shares until
such shares are either cancelled or transferred in accordance with the Act.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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4. RIGHTS ATTACHING TO SHARES

Subject to Article 2, the Memorandum of Association and any resolution of the Members to the contrary and without prejudice to any special rights conferred thereby on the holders of any other shares or class of shares, the share capital of the Company shall be divided into shares of a single class the holders of which shall, subject to these Articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be entitled to one vote per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be entitled to such dividends as the Board may from time to time declare;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the event of a winding-up or dissolution of the Company, whether voluntary or involuntary or for the
purpose of a reorganisation or otherwise or upon any distribution of capital, be entitled to the surplus assets of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) generally be entitled to enjoy all of the rights attaching to shares.

5. CALLS ON SHARES

5.1. The Board may make such calls as it thinks fit upon the Members in respect of any monies (whether in respect
of nominal value or premium) unpaid on the shares allotted to or held by such Members and, if a call is not paid on or before the day
appointed for payment thereof, the Member may at the discretion of the Board be liable to pay the Company interest on the amount of such
call at such rate as the Board may determine, from the date when such call was payable up to the actual date of payment. The Board may
differentiate between the holders as to the amount of calls to be paid and the times of payment of such calls.

5.2. The Company may accept from any Member the whole or a part of the amount remaining unpaid on any shares
held by him, although no part of that amount has been called up.

5.3. The terms of any issue of shares may include different provisions with respect to different Members in
the amounts and times of payments of calls on their shares.

6. JOINT AND SEVERAL LIABILITY TO PAY CALLS

The joint holders of a share shall be jointly and severally liable to pay all calls in respect thereof.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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7. FORFEITURE OF SHARES

7.1. If any Member fails to pay, on the day appointed for payment thereof, any call in respect of any share
allotted to or held by such Member, the Board may, at any time thereafter during such time as the call remains unpaid, direct the Secretary
to forward such Member a notice in writing in the form, or as near thereto as circumstances admit, of the following:

Notice of Liability to Forfeiture for Non-Payment of Call

**[Name of Company]** (the "Company")

You have failed to pay the call of [amount of call] made on [date], in respect of the [number] share(s) [number in figures] standing in your name in the Register of Members of the Company, on [date], the day appointed for payment of such call. You are hereby notified that unless you pay such call together with interest thereon at the rate of [ ] per annum computed from the said [date] at the registered office of the Company the share(s) will be liable to be forfeited.

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| Dated this [date] |
| [Signature of Secretary] By Order of the Board |

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7.2. If the requirements of such notice are not complied with, any such share may at any time thereafter before
the payment of such call and the interest due in respect thereof be forfeited by a resolution of the Board to that effect, and such share
shall thereupon become the property of the Company and may be disposed of as the Board shall determine. Without limiting the generality
of the foregoing, the disposal may take place by sale, repurchase, redemption or any other method of disposal permitted by and consistent
with these Articles and the Act.

7.3. A Member whose share or shares have been so forfeited shall, notwithstanding such forfeiture, be liable
to pay to the Company all calls owing on such share or shares at the time of the forfeiture, together with all interest due thereon and
any costs and expenses incurred by the Company in connection therewith.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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7.4. The Board may accept the surrender of any shares which it is in a position to forfeit on such terms and
conditions as may be agreed. Subject to those terms and conditions, a surrendered share shall be treated as if it had been forfeited.

8. SHARE CERTIFICATES

8.1. Every Member shall be entitled to a certificate under the common seal (if any) or a facsimile thereof
of the Company or bearing the signature (or a facsimile thereof) of a Director or the Secretary or a person expressly authorised to sign
specifying the number and, where appropriate, the class of shares held by such Member and whether the same are fully paid up and, if not,
specifying the amount paid on such shares. The Board may by resolution determine, either generally or in a particular case, that any or
all signatures on certificates may be printed thereon or affixed by mechanical means.

8.2. If any share certificate shall be proved to the satisfaction of the Board to have been worn out, lost,
mislaid, or destroyed the Board may cause a new certificate to be issued and request an indemnity for the lost certificate if it sees
fit.

8.3. Share certificates may not be issued in bearer form.

9. FRACTIONAL SHARES

The Company may issue its shares in fractional denominations and deal with such fractions to the same extent as its whole shares and shares in fractional denominations shall have in proportion to the respective fractions represented thereby all of the rights of whole shares including (but without limiting the generality of the foregoing) the right to vote, to receive dividends and distributions and to participate in a winding-up.

**REGISTRATION OF SHARES**

10. REGISTER OF MEMBERS

10.1. The Board shall cause to be kept in one or more books a Register of Members which may be kept in or outside
the Cayman Islands at such place as the Board shall appoint and shall enter therein the following particulars:

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the name and address of each Member, the number, and (where appropriate) the class of shares held by such
Member and the amount paid or agreed to be considered as paid on such shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the shares held by a Member carry voting rights under the Articles and, if so, whether such voting
rights are conditional;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the date on which each person was entered in the Register of Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the date on which any person ceased to be a Member.

10.2. The Board may cause to be kept in any country or territory one or more branch registers of such category
or categories of members as the Board may determine from time to time and any branch register shall be deemed to be part of the Company's
Register of Members.

10.3. Any register maintained by the Company in respect of listed shares may be kept by recording the particulars
set out in Article 10.1 in a form otherwise than legible if such recording otherwise complies with the laws applicable to and the rules
and regulations of the relevant approved stock exchange.

11. REGISTERED HOLDER ABSOLUTE OWNER

11.1. The Company shall be entitled to treat the registered holder of any share as the absolute owner thereof
and accordingly shall not be bound to recognise any equitable claim or other claim to, or interest in, such share on the part of any other
person.

11.2. No person shall be entitled to recognition by the Company as holding any share upon any trust and the
Company shall not be bound by, or be compelled in any way to recognise, (even when having notice thereof) any equitable, contingent, future
or partial interest in any share or any other right in respect of any share except an absolute right to the entirety of the share in the
holder. If, notwithstanding this Article, notice of any trust is at the holder's request entered in the Register of Members or on
a share certificate in respect of a share, then, except as aforesaid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such notice shall be deemed to be solely for the holder's convenience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company shall not be required in any way to recognise any beneficiary, or the beneficiary, of the
trust as having an interest in the share or shares concerned;

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Company shall not be concerned with the trust in any way, as to the identity or powers of the trustees,
the validity, purposes or terms of the trust, the question of whether anything done in relation to the shares may amount to a breach of
trust or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the holder shall keep the Company fully indemnified against any liability or expense which may be incurred
or suffered as a direct or indirect consequence of the Company entering notice of the trust in the Register of Members or on a share certificate
and continuing to recognise the holder as having an absolute right to the entirety of the share or shares concerned.

12. TRANSFER OF REGISTERED SHARES

12.1. An instrument of transfer shall be in writing in the form of the following, or as near thereto as circumstances
admit, or in such other form as the Board may accept:

Transfer of a Share or Shares

**[Name of Company]** (the "Company")

FOR VALUE RECEIVED...................... [amount] , I, [name of transferor] hereby sell, assign and transfer unto [transferee] of [address] , [number] shares of the Company.

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| DATED this [date] |  |
| Signed by: | In the presence of: |
| Transferor | Witness |
| Transferee | Witness |

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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12.2. Such instrument of transfer shall be signed by (or in the case of a party that is a corporation, on behalf
of) the transferor and transferee, provided that, in the case of a fully paid share, the Board may accept the instrument signed by or
on behalf of the transferor alone. The transferor shall be deemed to remain the holder of such share until the same has been transferred
to the transferee in the Register of Members.

12.3. The Board may refuse to recognise any instrument of transfer unless it is accompanied by the certificate
in respect of the shares to which it relates and by such other evidence as the Board may reasonably require showing the right of the transferor
to make the transfer.

12.4. The joint holders of any share may transfer such share to one or more of such joint holders, and the surviving
holder or holders of any share previously held by them jointly with a deceased Member may transfer any such share to the executors or
administrators of such deceased Member.

12.5. The Board may in its absolute discretion and without assigning any reason therefor refuse to register
the transfer of a share. If the Board refuses to register a transfer of any share the Secretary shall, within three months after the date
on which the transfer was lodged with the Company, send to the transferor and transferee notice of the refusal.

13. TRANSMISSION OF REGISTERED SHARES

13.1. In the case of the death of a Member, the survivor or survivors where the deceased Member was a joint
holder, and the legal personal representatives of the deceased Member where the deceased Member was a sole holder, shall be the only persons
recognised by the Company as having any title to the deceased Member's interest in the shares. Nothing herein contained shall release
the estate of a deceased joint holder from any liability in respect of any share which had been jointly held by such deceased Member with
other persons. Subject to the provisions of Section 39 of the Act, for the purpose of this Article, legal personal representative means
the executor or administrator of a deceased Member or such other person as the Board may, in its absolute discretion, decide as being
properly authorised to deal with the shares of a deceased Member.

13.2. Any person becoming entitled to a share in consequence of the death or bankruptcy of any Member may be
registered as a Member upon such evidence as the Board may deem sufficient or may elect to nominate some person to be registered as a
transferee of such share, and in such case the person becoming entitled shall execute in favour of such nominee an instrument of transfer
in writing in the form, or as near thereto as circumstances admit, of the following:

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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Transfer by a Person Becoming Entitled on Death/Bankruptcy of a Member

**[Name of Company]** (the "Company")

I/We, having become entitled in consequence of the [death/bankruptcy] of [name and address of deceased Member] to [number] share(s) standing in the Register of Members of the Company in the name of the said [name of deceased/bankrupt Member] instead of being registered myself/ourselves, elect to have [name of transferee] (the "Transferee") registered as a transferee of such share(s) and I/we do hereby accordingly transfer the said share(s) to the Transferee to hold the same unto the Transferee, his or her executors, administrators and assigns, subject to the conditions on which the same were held at the time of the execution hereof; and the Transferee does hereby agree to take the said share(s) subject to the same conditions.

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|:---|:---|
| DATED this [date] |  |
| Signed by: | In the presence of: |
| Transferor | Witness |
| Transferee | Witness |

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13.3. On the presentation of the foregoing materials to the Board, accompanied by such evidence as the Board
may require to prove the title of the transferor, the transferee shall be registered as a Member. Notwithstanding the foregoing, the Board
shall, in any case, have the same right to decline or suspend registration as it would have had in the case of a transfer of the share
by that Member before such Member's death or bankruptcy, as the case may be.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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13.4. Where two or more persons are registered as joint holders of a share or shares, then in the event of the
death of any joint holder or holders the remaining joint holder or holders shall be absolutely entitled to the said share or shares and
the Company shall recognise no claim in respect of the estate of any joint holder except in the case of the last survivor of such joint
holders.

14. LISTED SHARES

14.1. Notwithstanding anything to the contrary in these Articles, shares that are listed or admitted to trading
on an approved stock exchange may be evidenced and transferred in accordance with the rules and regulations of such exchange.

**ALTERATION OF SHARE CAPITAL**

15. POWER TO ALTER CAPITAL

15.1. Subject to the Act, the Company may from time to time by ordinary resolution alter the conditions of its
Memorandum of Association to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase its capital by such sum divided into shares of such amounts as the resolution shall prescribe
or, if the Company has shares without par value, increase its share capital by such number of shares without nominal or par value, or
increase the aggregate consideration for which its shares may be issued, as it thinks expedient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into shares of a larger amount than its existing
shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) convert all or any of its paid-up shares into stock, and reconvert that stock into paid-up shares of any
denomination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) subdivide its shares or any of them into shares of an amount smaller than that fixed by the Memorandum
of Association; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel shares which at the date of the passing of the resolution have not been taken or agreed to be taken
by any person, and diminish the amount of its share capital by the amount of the shares so cancelled or, in the case of shares without
par value, diminish the number of shares into which its capital is divided.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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15.2. For the avoidance of doubt it is declared that paragraph 15.1(b), (c) and (d) do not apply if at any time
the shares of the Company have no par value.

15.3. Subject to the Act, the Company may from time to time by Special Resolution reduce its share capital.

16. VARIATION OF RIGHTS ATTACHING TO SHARES

If, at any time, the share capital is divided into different classes of shares, the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may, whether or not the Company is being wound-up, be varied with the consent in writing of the holders of three-fourths of the issued shares of that class or with the sanction of a resolution passed by a majority of the votes cast at a separate general meeting of the holders of the shares of the class at which meeting the necessary quorum shall be two persons at least holding or representing by proxy one-third of the issued shares of the class. The rights conferred upon the holders of the shares of any class or series issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class or series, be deemed to be varied by the creation or issue of further shares ranking *pari passu* therewith.

**DIVIDENDS AND CAPITALISATION**

17. DIVIDENDS

17.1. The Board may, subject to these Articles and in accordance with the Act, declare a dividend to be paid
to the Members, in proportion to the number of shares held by them, and such dividend may be paid in cash or wholly or partly by the distribution
of specific assets (which may consist of the shares or securities of any other company).

17.2. Where the Board determines that a dividend shall be paid wholly or partly by the distribution of specific
assets, the Board may settle all questions concerning such distribution. Without limiting the generality of the foregoing, the Board may
fix the value of such specific assets and vest any such specific assets in trustees on such terms as the Board thinks fit.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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17.3. Dividends may be declared and paid out of profits of the Company, realised or unrealised, or from any
reserve set aside from profits which the Board determines is no longer needed, or not in the same amount. Dividends may also be declared
and paid out of share premium account or any other fund or account which can be authorised for this purpose in accordance with the Act.

17.4. No unpaid dividend shall bear interest as against the Company.

17.5. The Company may pay dividends in proportion to the amount paid up on each share where a larger amount
is paid up on some shares than on others.

17.6. The Board may declare and make such other distributions (in cash or in specie) to the Members as may be
lawfully made out of the assets of the Company. No unpaid distribution shall bear interest as against the Company.

17.7. The Board may fix any date as the record date for determining the Members entitled to receive any dividend
or other distribution, but, unless so fixed, the record date shall be the date of the Directors' resolution declaring same.

18. POWER TO SET ASIDE PROFITS

18.1. The Board may, before declaring a dividend, set aside out of the surplus or profits of the Company, such
amount as it thinks proper as a reserve to be used to meet contingencies or for equalising dividends or for any other purpose. Pending
application, such sums may be employed in the business of the Company or invested, and need not be kept separate from other assets of
the Company. The Board may also, without placing the same to reserve, carry forward any profit which it decides not to distribute.

18.2. Subject to any direction from the Company in general meeting, the Board may on behalf of the Company exercise
all the powers and options conferred on the Company by the Act in regard to the Company's share premium account.

19. METHOD OF PAYMENT

19.1. Any dividend, interest, or other monies payable in cash in respect of the shares may be paid to such person
and in such manner (including, without limitation, cheque, draft, electronic transfer etc.) as the Member may in writing direct.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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19.2. In the case of joint holders of shares, any dividend, interest or other monies payable in cash in respect
of shares may be paid to such person and in such manner (including, without limitation, cheque, draft, electronic transfer etc.) as the
joint holders may in writing direct. If two or more persons are registered as joint holders of any shares any one can give an effectual
receipt for any dividend paid in respect of such shares.

19.3. The Board may deduct from the dividends or distributions payable to any Member all monies due from such
Member to the Company on account of calls or otherwise.

20. CAPITALISATION

20.1. The Board may capitalise any amount for the time being standing to the credit of any of the Company's
share premium or other reserve accounts or to the credit of the profit and loss account or otherwise available for distribution by applying
such amount in paying up unissued shares to be allotted as fully paid bonus shares pro rata to the Members.

20.2. The Board may capitalise any amount for the time being standing to the credit of a reserve account or
amounts otherwise available for dividend or distribution by applying such amounts in paying up in full, partly or nil paid shares of those
Members who would have been entitled to such amounts if they were distributed by way of dividend or distribution.

**MEETINGS OF MEMBERS**

21. ANNUAL GENERAL MEETINGS

The Company may in each year hold a general meeting as its annual general meeting. The annual general meeting of the Company may be held at such time and place as the Chairman of the Company (if there is one) (the "Chairman") or any two Directors or any Director and the Secretary or the Board shall appoint.

22. EXTRAORDINARY GENERAL MEETINGS

22.1. General meetings other than annual general meetings shall be called extraordinary general meetings.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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22.2. The Chairman or any two Directors or any Director and the Secretary or the Board may convene an extraordinary
general meeting whenever in their judgment such a meeting is necessary.

23. REQUISITIONED GENERAL MEETINGS

23.1. The Board shall, on the requisition of Members holding at the date of the deposit of the requisition not
less than one-tenth of such of the paid-up share capital of the Company as at the date of the deposit carries the right to vote at general
meetings, forthwith proceed to convene an extraordinary general meeting. To be effective the requisition shall state the objects of the
meeting, shall be in writing, signed by the requisitionists, and shall be deposited at the registered office. The requisition may consist
of several documents in like form each signed by one or more requisitionists.

23.2. If the Board does not, within twenty-one days from the date of the requisition, duly proceed to call an
extraordinary general meeting, the requisitionists, or any of them representing more than one half of the total voting rights of all of
them, may themselves convene an extraordinary general meeting; but any meeting so called shall not be held more than ninety days after
the requisition. An extraordinary general meeting called by requisitionists shall be called in the same manner, as nearly as possible,
as that in which general meetings are to be called by the Board.

24. NOTICE

24.1. At least five days' notice of an annual general meeting shall be given to each Member entitled to
attend and vote thereat, stating the date, place and time at which the meeting is to be held and if different, the record date for determining
Members entitled to attend and vote at the general meeting, and, as far as practicable, the other business to be conducted at the meeting.

24.2. At least five days' notice of an extraordinary general meeting shall be given to each Member entitled
to attend and vote thereat, stating the date, time, place and the general nature of the business to be considered at the meeting.

24.3. The Board may fix any date as the record date for determining the Members entitled to receive notice of
and to vote at any general meeting of the Company but, unless so fixed, as regards the entitlement to receive notice of a meeting or notice
of any other matter, the record date shall be the date of despatch of the notice and, as regards the entitlement to vote at a meeting,
and any adjournment thereof, the record date shall be the date of the original meeting.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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24.4. A general meeting shall, notwithstanding that it is called on shorter notice than that specified in these
Articles, be deemed to have been properly called if it is so agreed by (i) all the Members entitled to attend and vote thereat in the
case of an annual general meeting; and (ii) in the case of an extraordinary general meeting, by seventy-five percent of the Members entitled
to attend and vote thereat.

24.5. The accidental omission to give notice of a general meeting to, or the non-receipt of a notice of a general
meeting by, any person entitled to receive notice shall not invalidate the proceedings at that meeting.

25. GIVING NOTICE AND ACCESS

25.1. A notice may be given by the Company to a Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by delivering it to such Member in person, in which case the notice shall be deemed to have been served
upon such delivery; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by sending it by post to such Member's address in the Register of Members, in which case the notice
shall be deemed to have been served seven days after the date on which it is deposited, with postage prepaid, in the mail; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by sending it by courier to such Member's address in the Register of Members, in which case the
notice shall be deemed to have been served two days after the date on which it is deposited, with courier fees paid, with the courier
service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by transmitting it by electronic means (including facsimile and electronic mail, but not telephone) in
accordance with such directions as may be given by such Member to the Company for such purpose, in which case the notice shall be deemed
to have been served at the time that it would in the ordinary course be transmitted; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) by publication of an electronic record of it on a website and notification of such publication (which
shall include the address of the website, the place on the website where the document may be found, and how the document may be accessed
on the website), such notification being given by any of the methods set out in paragraphs (a) through (d) hereof, in which case the notice
shall be deemed to have been served at the time when the instructions for access and the posting on the website are complete.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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25.2. Any notice required to be given to a Member shall, with respect to any shares held jointly by two or more
persons, be given to whichever of such persons is named first in the Register of Members and notice so given shall be sufficient notice
to all the holders of such shares.

25.3. In proving service under paragraphs 25.1(b), (c) and (d), it shall be sufficient to prove that the notice
was properly addressed and prepaid, if posted or sent by courier, and the time when it was posted, deposited with the courier, or transmitted
by electronic means.

26. POSTPONEMENT OF GENERAL MEETING

The Board may postpone any general meeting called in accordance with these Articles provided that notice of postponement is given to the Members before the time for such meeting. Notice of the date, time and place for the postponed meeting shall be given to each Member in accordance with Article 25 of these Articles.

27. ELECTRONIC PARTICIPATION IN MEETINGS

Members may participate in any general meeting by such telephonic, electronic or other communication facilities or means as permit all persons participating in the meeting to communicate with each other simultaneously and instantaneously, and participation in such a meeting shall constitute presence in person at such meeting.

28. QUORUM AT GENERAL MEETINGS

28.1. At any general meeting two or more persons present in person and representing in person or by proxy in
excess of 50% of the total issued voting shares in the Company throughout the meeting shall form a quorum for the transaction of business,
provided that if the Company shall at any time have only one Member, one Member present in person or by proxy shall form a quorum for
the transaction of business at any general meeting held during such time.

28.2. If within half an hour from the time appointed for the meeting a quorum is not present, then, in the case
of a meeting convened on a requisition, the meeting shall be deemed cancelled and, in any other case, the meeting shall stand adjourned
to the same day one week later, at the same time and place or to such other day, time or place as the Board may determine. Unless the
meeting is adjourned to a specific date, time and place announced at the meeting being adjourned, fresh notice of the resumption of the
meeting shall be given to each Member entitled to attend and vote thereat in accordance with these Articles.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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29. CHAIRMAN TO PRESIDE

Unless otherwise agreed by a majority of those attending and entitled to vote thereat, the Chairman, if there be one, shall act as chairman at all meetings of the Members at which such person is present. In his absence, a chairman of the meeting shall be appointed or elected by those present at the meeting and entitled to vote.

30. VOTING ON RESOLUTIONS

30.1. Subject to the Act and these Articles, any question proposed for the consideration of the Members at any
general meeting shall be decided by the affirmative votes of a majority of the votes cast in accordance with these Articles and in the
case of an equality of votes the resolution shall fail.

30.2. No Member shall be entitled to vote at a general meeting unless such Member has paid all the calls on
all shares held by such Member.

30.3. At any general meeting a resolution put to the vote of the meeting shall, in the first instance, be voted
upon by a show of hands and, subject to any rights or restrictions for the time being lawfully attached to any class of shares and subject
to these Articles, every Member present in person and every person holding a valid proxy at such meeting shall be entitled to one vote
and shall cast such vote by raising his hand.

30.4. At any general meeting if an amendment is proposed to any resolution under consideration and the chairman
of the meeting rules on whether or not the proposed amendment is out of order, the proceedings on the substantive resolution shall not
be invalidated by any error in such ruling.

30.5. At any general meeting a declaration by the chairman of the meeting that a question proposed for consideration
has, on a show of hands, been carried, or carried unanimously, or by a particular majority, or lost, and an entry to that effect in a
book containing the minutes of the proceedings of the Company shall, subject to these Articles, be conclusive evidence of that fact.

31. POWER TO DEMAND A VOTE ON A POLL

31.1. Notwithstanding the foregoing, a poll may be demanded by the chairman of the meeting or at least one Member.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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31.2. Where a poll is demanded, subject to any rights or restrictions for the time being lawfully attached to
any class of shares, every person present at such meeting shall have one vote for each share of which such person is the holder or for
which such person holds a proxy and such vote shall be counted by ballot as described herein, or in the case of a general meeting at which
one or more Members are present by telephone, electronic or other communication facilities or means, in such manner as the chairman of
the meeting may direct and the result of such poll shall be deemed to be the resolution of the meeting at which the poll was demanded
and shall replace any previous resolution upon the same matter which has been the subject of a show of hands. A person entitled to more
than one vote need not use all his votes or cast all the votes he uses in the same way.

31.3. A poll demanded for the purpose of electing a chairman of the meeting or on a question of adjournment
shall be taken forthwith. A poll demanded on any other question shall be taken at such time and in such manner during such meeting as
the chairman of the meeting may direct. Any business other than that upon which a poll has been demanded may be conducted pending the
taking of the poll.

31.4. Where a vote is taken by poll, each person physically present and entitled to vote shall be furnished
with a ballot paper on which such person shall record his vote in such manner as shall be determined at the meeting having regard to the
nature of the question on which the vote is taken, and each ballot paper shall be signed or initialled or otherwise marked so as to identify
the voter and the registered holder in the case of a proxy. Each person present by telephone, electronic or other communication facilities
or means shall cast his vote in such manner as the chairman of the meeting shall direct. At the conclusion of the poll, the ballot papers
and votes cast in accordance with such directions shall be examined and counted by a committee of not less than two Members or proxy holders
appointed by the chairman of the meeting for the purpose and the result of the poll shall be declared by the chairman of the meeting.

32. VOTING BY JOINT HOLDERS OF SHARES

In the case of joint holders, the vote of the senior who tenders a vote (whether in person or by proxy) shall be accepted to the exclusion of the votes of the other joint holders, and for this purpose seniority shall be determined by the order in which the names stand in the Register of Members.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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33. INSTRUMENT OF PROXY

33.1. An instrument appointing a proxy shall be in writing or transmitted by electronic mail in substantially
the following form or such other form as the chairman of the meeting shall accept:

Proxy

**[Name of Company]** (the "Company")

I/We, [insert names here] , being a Member of the Company with [number] shares, HEREBY APPOINT [name] of [address] or failing him, [name] of [address] to be my/our proxy to vote for me/us at the meeting of the Members to be held on [date] and at any adjournment thereof. [Any restrictions on voting to be inserted here].

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| Signed this [date] |
| Member(s) |

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33.2. The instrument of proxy shall be signed or, in the case of a transmission by electronic mail, electronically
signed in a manner acceptable to the chairman of the meeting, by the appointor or by the appointor's attorney duly authorised in
writing, or if the appointor is a corporation, either under its seal or signed or, in the case of a transmission by electronic mail, electronically
signed in a manner acceptable to the chairman of the meeting, by a duly authorised officer or attorney.

33.3. A Member who is the holder of two or more shares may appoint more than one proxy to represent him and
vote on his behalf in respect of different shares.

33.4. The decision of the chairman of any general meeting as to the validity of any appointment of a proxy shall
be final.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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34. REPRESENTATION OF CORPORATE MEMBER

34.1. A corporation which is a Member may, by written instrument, authorise such person or persons as it thinks
fit to act as its representative at any meeting and any person so authorised shall be entitled to exercise the same powers on behalf of
the corporation which such person represents as that corporation could exercise if it were an individual Member, and that Member shall
be deemed to be present in person at any such meeting attended by its authorised representative or representatives.

34.2. Notwithstanding the foregoing, the chairman of the meeting may accept such assurances as he thinks fit
as to the right of any person to attend and vote at general meetings on behalf of a corporation which is a Member.

35. ADJOURNMENT OF GENERAL MEETING

The chairman of a general meeting may, with the consent of the Members at any general meeting at which a quorum is present, and shall if so directed by the meeting, adjourn the meeting. Unless the meeting is adjourned to a specific date, place and time announced at the meeting being adjourned, fresh notice of the date, place and time for the resumption of the adjourned meeting shall be given to each Member entitled to attend and vote thereat, in accordance with these Articles.

36. WRITTEN RESOLUTIONS

36.1. Subject to these Articles, anything which may be done by resolution of the Company in general meeting
or by resolution of a meeting of any class of the Members may be done without a meeting by written resolution in accordance with this
Article.

36.2. A written resolution is passed when it is signed by (or in the case of a Member that is a corporation,
on behalf of) all the Members, or all the Members of the relevant class thereof, entitled to vote thereon and may be signed in as many
counterparts as may be necessary.

36.3. A resolution in writing made in accordance with this Article is as valid as if it had been passed by the
Company in general meeting or by a meeting of the relevant class of Members, as the case may be, and any reference in any Article to a
meeting at which a resolution is passed or to Members voting in favour of a resolution shall be construed accordingly.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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36.4. A resolution in writing made in accordance with this Article shall constitute minutes for the purposes
of the Act.

36.5. For the purposes of this Article, the date of the resolution is the date when the resolution is signed
by (or in the case of a Member that is a corporation, on behalf of) the last Member to sign and any reference in any Article to the date
of passing of a resolution is, in relation to a resolution made in accordance with this Article, a reference to such date.

37. DIRECTORS ATTENDANCE AT GENERAL MEETINGS

The Directors shall be entitled to receive notice of, attend and be heard at any general meeting.

**DIRECTORS AND OFFICERS**

38. ELECTION OF DIRECTORS

38.1. The Directors shall be elected or appointed in writing in the first place by the subscribers to the Memorandum
of Association or by a majority of them. There shall be no shareholding qualification for Directors unless prescribed by Special Resolution.

38.2. The Board may from time to time appoint any person to be a Director, either to fill a casual vacancy or
as an addition to the existing Directors, subject to any upper limit on the number of Directors prescribed pursuant to these Articles.

38.3. The Company may from time to time by ordinary resolution appoint any person to be a Director.

39. NUMBER OF DIRECTORS

The Board shall consist of not less than one Director or such number in excess thereof as the Board may determine.

40. TERM OF OFFICE OF DIRECTORS

An appointment of a Director may be on terms that the Director shall automatically retire from office (unless he has sooner vacated office) at the next or a subsequent annual general meeting or upon any specified event or after any specified period; but no such term shall be implied in the absence of express provision.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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41. ALTERNATE DIRECTORS

41.1. At any general meeting, the Members may elect a person or persons to act as a Director in the alternative
to any one or more Directors or may authorise the Board to appoint such Alternate Directors.

41.2. Unless the Members otherwise resolve, any Director may appoint a person or persons to act as a Director
in the alternative to himself by notice deposited with the Secretary.

41.3. Any person elected or appointed pursuant to this Article shall have all the rights and powers of the Director
or Directors for whom such person is elected or appointed in the alternative, provided that such person shall not be counted more than
once in determining whether or not a quorum is present.

41.4. An Alternate Director shall be entitled to receive notice of all Board meetings and to attend and vote
at any such meeting at which a Director for whom such Alternate Director was appointed in the alternative is not personally present and
generally to perform at such meeting all the functions of such Director for whom such Alternate Director was appointed.

41.5. An Alternate Director's office shall terminate -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an alternate elected by the Members:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on the occurrence in relation to the Alternate Director of
any event which, if it occurred in relation to the Director for whom he was elected to act, would result in the termination of that Director;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Director for whom he was elected in the alternative ceases for any reason to be a Director, provided
that the alternate removed in these circumstances may be re-appointed by the Board as an alternate to the person appointed to fill the
vacancy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an alternate appointed by a Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on the occurrence in relation to the Alternate Director of any event which, if it occurred in relation
to his appointor, would result in the termination of the appointor's directorship; or

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) when the Alternate Director's appointor revokes the appointment by notice to the Company in writing
specifying when the appointment is to terminate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Alternate Director's appointor ceases for any reason to be a Director.

41.6. If an Alternate Director is himself a Director or attends a Board meeting as the Alternate Director of
more than one Director, his voting rights shall be cumulative.

41.7. Unless the Board determines otherwise, an Alternate Director may also represent his appointor at meetings
of any committee of the Board on which his appointor serves; and the provisions of this Article shall apply equally to such committee
meetings as to Board meetings.

41.8. Save as provided in these Articles an Alternate Director shall not, as such, have any power to act as
a Director or to represent his appointor and shall not be deemed to be a Director for the purposes of these Articles.

42. REMOVAL OF DIRECTORS

The Company may from time to time by ordinary resolution remove any Director from office, whether or not appointing another in his stead.

43. VACANCY IN THE OFFICE OF DIRECTOR

The office of Director shall be vacated if the Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is removed from office pursuant to these Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dies or becomes bankrupt, or makes any arrangement or composition with his creditors generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is or becomes of unsound mind or an order for his detention is made under the Mental Health Act of the
Cayman Islands or any analogous law of a jurisdiction outside the Cayman Islands, or dies; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) resigns his office by notice to the Company.

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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44. REMUNERATION OF DIRECTORS

The remuneration (if any) of the Directors shall, subject to any direction that may be given by the Company in general meeting, be determined by the Board as it may from time to time determine and shall be deemed to accrue from day to day. The Directors may also be paid all travel, hotel and other expenses properly incurred by them in attending and returning from Board meetings, any committee appointed by the Board, general meetings, or in connection with the business of the Company or their duties as Directors generally.

45. DEFECT IN APPOINTMENT

All acts done in good faith by the Board, any Director, a member of a committee appointed by the Board, any person to whom the Board may have delegated any of its powers, or any person acting as a Director shall, notwithstanding that it be afterwards discovered that there was some defect in the appointment of any Director or person acting as aforesaid, or that he was, or any of them were, disqualified, be as valid as if every such person had been duly appointed and was qualified to be a Director or act in the relevant capacity.

46. DIRECTORS TO MANAGE BUSINESS

The business of the Company shall be managed and conducted by the Board. In managing the business of the Company, the Board may exercise all such powers of the Company as are not, by the Act or by these Articles, required to be exercised by the Company in general meeting subject, nevertheless, to these Articles and the provisions of the Act.

47. POWERS OF THE BOARD OF DIRECTORS

The Board may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) appoint, suspend, or remove any manager, secretary, clerk, agent or employee of the Company and may fix
their remuneration and determine their duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) exercise all the powers of the Company to borrow money and to mortgage or charge or otherwise grant a
security interest in its undertaking, property and uncalled capital, or any part thereof, and may issue debentures, debenture stock and
other securities whether outright or as security for any debt, liability or obligation of the Company or any third party;

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) appoint one or more Directors to the office of managing director or chief executive officer of the Company,
who shall, subject to the control of the Board, supervise and administer all of the general business and affairs of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) appoint a person to act as manager of the Company's day-to-day business and may entrust to and confer
upon such manager such powers and duties as it deems appropriate for the transaction or conduct of such business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) by power of attorney, appoint any company, firm, person or body of persons, whether nominated directly
or indirectly by the Board, to be an attorney of the Company for such purposes and with such powers, authorities and discretions (not
exceeding those vested in or exercisable by the Board) and for such period and subject to such conditions as it may think fit and any
such power of attorney may contain such provisions for the protection and convenience of persons dealing with any such attorney as the
Board may think fit and may also authorise any such attorney to sub-delegate all or any of the powers, authorities and discretions so
vested in the attorney;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) procure that the Company pays all expenses incurred in promoting and incorporating the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) delegate any of its powers (including the power to sub-delegate) to a committee of one or more persons
appointed by the Board and every such committee shall conform to such directions as the Board shall impose on them. Subject to any directions
or regulations made by the Board for this purpose, the meetings and proceedings of any such committee shall be governed by the provisions
of these Articles regulating the meetings and proceedings of the Board, including provisions for written resolutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) delegate any of its powers (including the power to sub-delegate) to any person on such terms and in such
manner as the Board may see fit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) present any petition and make any application in connection with the liquidation or reorganisation of
the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) in connection with the issue of any share, pay such commission and brokerage as may be permitted by law;
and

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|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) authorise any company, firm, person or body of persons to act on behalf of the Company for any specific
purpose and in connection therewith to execute any deed, agreement, document or instrument on behalf of the Company.

48. REGISTER OF DIRECTORS AND OFFICERS

The Board shall keep and maintain a Register of Directors and Officers in accordance with the Act.

49. OFFICERS

The Officers shall consist of a Secretary and such additional Officers as the Board may determine all of whom shall be deemed to be Officers for the purposes of these Articles.

50. APPOINTMENT OF OFFICERS

The Secretary (and additional Officers, if any) shall be appointed by the Board from time to time.

51. DUTIES OF OFFICERS

The Officers shall have such powers and perform such duties in the management, business and affairs of the Company as may be delegated to them by the Board from time to time.

52. REMUNERATION OF OFFICERS

The Officers shall receive such remuneration as the Board may determine.

53. CONFLICTS OF INTEREST

53.1. Any Director, or any Director's firm, partner or any company with whom any Director is associated,
may act in any capacity for, be employed by or render services to the Company on such terms, including with respect to remuneration, as
may be agreed between the parties. Nothing herein contained shall authorise a Director or a Director's firm, partner or company
to act as Auditor to the Company.

53.2. A Director who is directly or indirectly interested in a contract or proposed contract with the Company
(an "Interested Director") shall declare the nature of such interest.

53.3. An Interested Director who has complied with the requirements of the foregoing Article may:

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) vote in respect of such contract or proposed contract; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be counted in the quorum for the meeting at which the contract or proposed contract is to be voted
 on, and no such contract or proposed contract
shall be void or voidable by reason only that the Interested Director voted on it or was counted in the quorum of the relevant meeting
and the Interested Director shall not be liable to account to the Company for any profit realised thereby.

54. INDEMNIFICATION AND EXCULPATION OF DIRECTORS AND OFFICERS

54.1. The Directors, Secretary and other Officers (such term to include any person appointed to any committee
by the Board) acting in relation to any of the affairs of the Company or any subsidiary thereof, and the liquidator or trustees (if any)
acting in relation to any of the affairs of the Company or any subsidiary thereof and every one of them (whether for the time being or
formerly) and their heirs, executors, administrators and personal representatives (each an "indemnified party") shall be indemnified
and secured harmless out of the assets of the Company from and against all actions, costs, charges, losses, damages and expenses which
they or any of them shall or may incur or sustain by or by reason of any act done, concurred in or omitted in or about the execution of
their duty, or supposed duty, or in their respective offices or trusts, and no indemnified party shall be answerable for the acts, receipts,
neglects or defaults of the others of them or for joining in any receipts for the sake of conformity, or for any bankers or other persons
with whom any monies or effects belonging to the Company shall or may be lodged or deposited for safe custody, or for insufficiency or
deficiency of any security upon which any monies of or belonging to the Company shall be placed out on or invested, or for any other loss,
misfortune or damage which may happen in the execution of their respective offices or trusts, or in relation thereto, PROVIDED THAT this
indemnity shall not extend to any matter in respect of any fraud or dishonesty in relation to the Company which may attach to any of the
indemnified parties. Each Member agrees to waive any claim or right of action such Member might have, whether individually or by or in
the right of the Company, against any Director or Officer on account of any action taken by such Director or Officer, or the failure of
such Director or Officer to take any action in the performance of his duties with or for the Company or any subsidiary thereof, PROVIDED
THAT such waiver shall not extend to any matter in respect of any fraud or dishonesty in relation to the Company which may attach to such
Director or Officer.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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54.2. The Company may purchase and maintain insurance for the benefit of any Director or Officer against any
liability incurred by him in his capacity as a Director or Officer or indemnifying such Director or Officer in respect of any loss arising
or liability attaching to him by virtue of any rule of law in respect of any negligence, default, breach of duty or breach of trust of
which the Director or Officer may be guilty in relation to the Company or any subsidiary thereof.

**MEETINGS OF THE BOARD OF DIRECTORS**

55. BOARD MEETINGS

The Board may meet for the transaction of business, adjourn and otherwise regulate its meetings as it sees fit. A resolution put to the vote at a Board meeting shall be carried by the affirmative votes of a majority of the votes cast and in the case of an equality of votes the resolution shall fail.

56. NOTICE OF BOARD MEETINGS

A Director may, and the Secretary on the requisition of a Director shall, at any time summon a Board meeting. Notice of a Board meeting shall be deemed to be duly given to a Director if it is given to such Director verbally (including in person or by telephone) or otherwise communicated or sent to such Director by post, electronic means or other mode of representing words in a visible form at such Director's last known address or in accordance with any other instructions given by such Director to the Company for this purpose.

57. ELECTRONIC PARTICIPATION IN MEETINGS

Directors may participate in any meeting by such telephonic, electronic or other communication facilities or means as permit all persons participating in the meeting to communicate with each other simultaneously and instantaneously, and participation in such a meeting shall constitute presence in person at such meeting.

58. REPRESENTATION OF DIRECTOR

58.1. A Director which is a corporation may, by written instrument, authorise such person or persons as it thinks
fit to act as its representative at any meeting and any person so authorised shall be entitled to exercise the same powers on behalf of
the corporation which such person represents as that corporation could exercise if it were an individual Director, and that Director shall
be deemed to be present in person at any
such meeting attended by its authorised representative or representatives.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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58.2. Notwithstanding the foregoing, the chairman of the meeting may accept such assurances as he thinks fit
as to the right of any person to attend and vote at Board meetings on behalf of a corporation which is a Director.

58.3. A Director who is not present at a Board meeting, and whose Alternate Director (if any) is not present
at the meeting, may be represented at the meeting by a proxy duly appointed, in which event the presence and vote of the proxy shall be
deemed to be that of the Director. All the provisions of these Articles regulating the appointment of proxies by Members shall apply equally
to the appointment of proxies by Directors.

59. QUORUM AT BOARD MEETINGS

The quorum necessary for the transaction of business at a Board meeting shall be two Directors, provided that if there is only one Director for the time being in office the quorum shall be one.

60. BOARD TO CONTINUE IN THE EVENT OF VACANCY

The Board may act notwithstanding any vacancy in its number.

61. CHAIRMAN TO PRESIDE

Unless otherwise agreed by a majority of the Directors attending, the Chairman, if there be one, shall act as chairman at all Board meetings at which such person is present. In his absence a chairman of the meeting shall be appointed or elected by the Directors present at the meeting.

62. WRITTEN RESOLUTIONS

62.1. Anything which may be done by resolution of the Directors may, without a meeting and without any previous
notice being required, be done by written resolution in accordance with this Article.

62.2. A written resolution may be signed by (or in the case of a Director that is a corporation, on behalf of)
all the Directors in as many counterparts as may be necessary.

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|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

62.3. A written resolution made in accordance with this Article is as valid as if it had been passed by the
Directors in a directors' meeting, and any reference in any Article to a meeting at which a resolution is passed or to Directors
voting in favour of a resolution shall be construed accordingly.

62.4. A resolution in writing made in accordance with this Article shall constitute minutes for the purposes
of the Act.

62.5. For the purposes of this Article, the date of the resolution is the date when the resolution is signed
by (or in the case of a Director that is a corporation, on behalf of) the last Director to sign and any reference in any Article to the
date of passing of a resolution is, in relation to a resolution made in accordance with this Article, a reference to such date.

63. VALIDITY OF PRIOR ACTS OF THE BOARD

No regulation or alteration to these Articles made by the Company in general meeting shall invalidate any prior act of the Board which would have been valid if that regulation or alteration had not been made.

**CORPORATE RECORDS**

64. MINUTES

The Board shall cause minutes to be duly entered in books provided for the purpose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) of all elections and appointments of Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) of the names of the Directors present at each Board meeting and of any committee appointed by the Board;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) of all resolutions and proceedings of general meetings of the Members, Board meetings, meetings of managers
and meetings of committees appointed by the Board.

65. REGISTER OF MORTGAGES AND CHARGES

65.1. The Board shall cause to be kept the Register of Mortgages and Charges required by the Act.

65.2. The Register of Mortgages and Charges shall be open to inspection in accordance with the Act, at the registered
office of the Company on every business day in the Cayman Islands, subject to such reasonable restrictions as the
Board may impose, so that not less than two hours in each such business day be allowed for inspection.

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| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

66. FORM AND USE OF SEAL

66.1. The Company may adopt a seal, which shall bear the name of the Company in legible characters, and which
may, at the discretion of the Board, be followed with or preceded by its dual foreign name or translated name (if any), in such form as
the Board may determine. The Board may adopt one or more duplicate seals for use in or outside Cayman and, if the Board thinks fit, a
duplicate Seal may bear on its face the name of the country, territory, district or place where it is to be issued.

66.2. The Seal (if any) shall only be used by the authority of the Board or of a committee of the Board authorised
by the Board in that behalf and, until otherwise determined by the Board, the Seal shall be affixed in the presence of a Director or the
Secretary or an assistant secretary or some other person authorised for this purpose by the Board or the committee of the Board.

66.3. Notwithstanding the foregoing, the Seal (if any) may without further authority be affixed by way of authentication
to any document required to be filed with the Registrar of Companies in the Cayman Islands, and may be so affixed by any Director, Secretary
or assistant secretary of the Company or any other person or institution having authority to file the document as aforesaid.

**ACCOUNTS**

67. BOOKS OF ACCOUNT

67.1. The Board shall cause to be kept proper books of account including, where applicable, material underlying
documentation including contracts and invoices, and with respect to:-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all sums of money received and expended by the Company and the matters in respect of which the receipt
and expenditure takes place;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all sales and purchases of goods by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all assets and liabilities of the Company.

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| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

---

67.2. Such books of account shall be kept and proper books of account shall not be deemed to be kept with respect
to the matters aforesaid if there are not kept, at such place as the Board thinks fit, such books as are necessary to give a true and
fair view of the state of the Company's affairs and to explain its transactions.

67.3. Such books of account shall be retained for a minimum period of five years from the date on which they
are prepared.

67.4. No Member (not being a Director) shall have any right of inspecting any account or book or document of
the Company.

68. FINANCIAL YEAR END

The financial year end of the Company shall be 31st May in each year but, subject to any direction of the Company in general meeting, the Board may from time to time prescribe some other period to be the financial year, provided that the Board may not without the sanction of an ordinary resolution prescribe or allow any financial year longer than eighteen months.

**AUDITS**

69. AUDIT

Nothing in these Articles shall be construed as making it obligatory to appoint Auditors.

70. APPOINTMENT OF AUDITORS

70.1. The Company may in general meeting appoint Auditors to hold office for such period as the Members may
determine.

70.2. Whenever there are no Auditors appointed as aforesaid the Board may appoint Auditors to hold office for
such period as the Board may determine or earlier removal from office by the Company in general meeting.

70.3. The Auditor may be a Member but no Director, Officer or employee of the Company shall, during his continuance
in office, be eligible to act as an Auditor of the Company.

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| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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71. REMUNERATION OF AUDITORS

71.1. The remuneration of an Auditor appointed by the Members shall be fixed by the Company in general meeting.

71.2. The remuneration of an Auditor appointed by the Board in accordance with these Articles shall be fixed
by the Board.

72. DUTIES OF AUDITOR

The Auditor shall make a report to the Members on the accounts examined by him and on every set of financial statements laid before the Company in general meeting, or circulated to Members, pursuant to this Article during the Auditor's tenure of office.

73. ACCESS TO RECORDS

73.1. The Auditor shall at all reasonable times have access to the Company's books, accounts and vouchers
and shall be entitled to require from the Company's Directors and Officers such information and explanations as the Auditor thinks
necessary for the performance of the Auditor's duties and, if the Auditor fails to obtain all the information and explanations which,
to the best of his knowledge and belief, are necessary for the purposes of their audit, he shall state that fact in his report to the
Members.

73.2. The Auditor shall be entitled to attend any general meeting at which any financial statements which have
been examined or reported on by him are to be laid before the Company and to make any statement or explanation he may desire with respect
to the financial statements.

**VOLUNTARY WINDING-UP AND DISSOLUTION**

74. WINDING-UP

74.1. The Company may be voluntarily wound-up by a Special Resolution.

74.2. If the Company shall be wound up the liquidator may, with the sanction of a Special Resolution, divide
amongst the Members in specie or in kind the whole or any part of the assets of the Company (whether they shall consist of property of
the same kind or not) and may, for such purpose, set such value as he deems fair upon any property to be divided as aforesaid and may
determine how such division shall be carried out as between the Members or different classes of Members. The liquidator may, with the
like sanction, vest the whole or any part of such assets in the trustees upon such trusts for the benefit of the Members as the liquidator
shall think fit, but so that no Member shall be compelled to accept any shares or other securities or assets whereon there is any liability.

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| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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**CHANGES TO CONSTITUTION**

75. CHANGES TO ARTICLES

Subject to the Act and to the conditions contained in its Memorandum of Association, the Company may, by Special Resolution, alter or add to its Articles.

76. CHANGES TO THE MEMORANDUM OF ASSOCIATION

Subject to the Act and these Articles, the Company may from time to time by Special Resolution alter its Memorandum of Association with respect to any objects, powers or other matters specified therein.

77. DISCONTINUANCE

The Board may exercise all the powers of the Company to transfer by way of continuation the Company to a named country or jurisdiction outside the Cayman Islands pursuant to the Act.

78. MERGERS AND CONSOLIDATIONS

The Company shall have the power to merge or consolidate with one or more other constituent companies (as defined in the Act) upon such terms as the Board may determine and (to the extent required by the Act) with the approval of a Special Resolution.

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| | |
|:---|:---|
|  | ![](ex3-1_002.jpg) |
| **Center Holdings Inc.** | |

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| |
|:---|
| Dated this 10th day of April, 2025 |
| Conyers Corporate Services (Cayman) Limited<br>Cricket Square, Hutchins Drive, |
| P.O. Box 2681 |
| Grand Cayman KY1-1111<br> Cayman Islands |
| ![](ex3-1_004.jpg) |
| Charlotte Cloete<br> Authorised signatory for |
| Conyers Corporate Services (Cayman) Limited |
| ![](ex3-1_005.jpg) |
| Roshekia Taylor |
| Witness to the above signature |

---

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| | |
|:---|:---|
| Address: | Cricket Square, Hutchins Drive, |
|  | P.O. Box 2681 |
|  | Grand Cayman KY1-1111 |
|  | Cayman Islands |

---

Occupation: Onboarding Administrator

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|:---|
| **38** |
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## Exhibit 3.2

**Exhibit 3.2**

**THE COMPANIES ACT (AS REVISED)**

**EXEMPTED COMPANY LIMITED BY SHARES**

**THE AMENDED AND RESTATED**

**MEMORANDUM OF ASSOCIATION**

**OF**

**Center Holdings Inc.**

(Conditionally adopted by way of a special resolution passed on [●] 2025 and to become effective immediately prior to the completion of the initial public offering of the Company's ordinary shares with effect from [●] 2025)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 name of the Company is Center Holdings Inc..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 registered office of the Company shall be at the offices of Conyers Trust Company (Cayman)
 Limited, Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Subject
 to the following provisions of this Memorandum, the objects for which the Company is established
 are unrestricted and shall include, but without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 act and perform all the functions of a holding company in all its branches and to coordinate
 the policy and administration of any subsidiary company or companies wherever incorporated
 or carrying on business or of any group of companies of which the Company or any subsidiary
 company is a member or which are in any manner controlled directly or indirectly by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to
 act as an investment company and for that purpose to subscribe, acquire, hold, dispose, sell,
 deal in or trade upon any terms, whether conditionally or absolutely, shares, stock, debentures,
 debenture stock, annuities, notes, mortgages, bonds, obligations and securities, foreign
 exchange, foreign currency deposits and commodities, issued or guaranteed by any company
 wherever incorporated, or by any government, sovereign, ruler, commissioners, public body
 or authority, supreme, municipal, local or otherwise, by original subscription, tender, purchase,
 exchange, underwriting, participation in syndicates or in any other manner and whether or
 not fully paid up, and to meet calls thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Subject
 to the following provisions of this Memorandum, the Company shall have and be capable of
 exercising all the functions of a natural person of full capacity irrespective of any question
 of corporate benefit, as provided by Section 27(2) of the Companies Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Nothing
 in this Memorandum shall permit the Company to carry on a business for which a licence is
 required under the laws of the Cayman Islands unless duly licensed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The
 Company shall not trade in the Cayman Islands with any person, firm or corporation except
 in furtherance of the business of the Company carried on outside the Cayman Islands; provided
 that nothing in this clause shall be construed as to prevent the Company effecting and concluding
 contracts in the Cayman Islands, and exercising in the Cayman Islands all of its powers necessary
 for the carrying on of its business outside the Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The
 liability of each member is limited to the amount from time to time unpaid on such member's
 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The
 share capital of the Company is US$100 divided into 1,000,000,000 ordinary shares of a nominal
 or par value of US$0.0000001 each of such class or classes (howsoever designated) from time
 to time as the Board may determine in accordance with the Articles of Association of the
 Company, with the power for the Company, insofar as is permitted by law, to redeem or purchase
 any of its shares and to increase or reduce the said share capital subject to the provisions
 of the Companies Act (As Revised) and the Articles of Association of the Company and to issue
 any part of its capital, whether original, redeemed or increased, with or without any preference,
 priority or special privilege or subject to any postponement of rights or to any conditions
 or restrictions; and so that, unless the conditions of issue shall otherwise expressly declare,
 every issue of shares, whether declared to be preference or otherwise, shall be subject to
 the power hereinbefore contained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The
 Company may exercise the power contained in the Companies Act to deregister in the Cayman
 Islands and be registered by way of continuation in another jurisdiction.

The Companies Act (As Revised)

Exempted Company Limited by Shares

THE AMENDED AND RESTATED

ARTICLES OF ASSOCIATION

OF

**Center Holdings Inc.**

(Conditionally adopted by way of a special resolution passed on [●] 2025 and to become effective immediately prior to the completion of the initial public offering of the Company's ordinary shares with effect from [●] 2025)

<u>I N D E X</u>

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| | |
|:---|:---|
| SUBJECT | Article No. |
| Table A | 1 |
| Interpretation | 1 |
| Share Capital | 6 |
| Alteration Of Capital | 6-7 |
| Share Rights | 7-8 |
| Variation Of Rights | 8-9 |
| Shares | 9-10 |
| Share Certificates | 10-11 |
| Lien | 11 |
| Calls On Shares | 12-13 |
| Forfeiture Of Shares | 13-14 |
| Register Of Members | 14 |
| Record Dates | 15 |
| Transfer Of Shares | 15-16 |
| Transmission Of Shares | 17 |
| Untraceable Members | 17-18 |
| General Meetings | 18 |
| Notice Of General Meetings | 18-19 |
| Proceedings At General Meetings | 19-23 |
| Voting | 23-25 |
| Proxies | 25-27 |
| Corporations Acting By Representatives | 27 |
| No Action By Written Resolutions Of Members | 28 |
| Board Of Directors | 28 |
| Disqualification Of Directors | 28-29 |
| Executive Directors | 29 |
| Alternate Directors | 29-30 |
| Directors' Fees And Expenses | 30-31 |
| Directors' Interests | 31-32 |
| General Powers Of The Directors | 32-34 |
| Borrowing Powers | 34 |
| Proceedings Of The Directors | 35-36 |
| Audit Committee | 36-37 |
| Officers | 37 |
| Register of Directors and Officers | 37 |
| Minutes | 38 |
| Seal | 38 |
| Authentication Of Documents | 38 |
| Destruction Of Documents | 39 |
| Dividends And Other Payments | 40-43 |
| Reserves | 43-44 |
| Capitalisation | 44 |
| Subscription Rights Reserve | 44-46 |
| Accounting Records | 46-47 |
| Audit | 47 |
| Notices | 48-49 |
| Signatures | 49 |
| Winding Up | 49-50 |
| Indemnity | 50 |
| Financial Year End | 50 |
| Amendment To Memorandum and Articles of Association And Name of Company | 50 |
| Information | 50 |

---

THE COMPANIES ACT (AS REVISED)

EXEMPTED COMPANY LIMITED BY SHARES

THE AMENDED AND RESTATED

ARTICLES OF ASSOCIATION

OF

**Center Holdings Inc.**

(Conditionally adopted by way of a special resolution passed on [●] 2025 and to become effective immediately prior to the completion of the initial public offering of the Company's ordinary shares with effect from [●] 2025)

<u>TABLE A</u>

1. The regulations in Table A in the Schedule to the Companies Act (As Revised) do not apply to the Company.

<u>INTERPRETATION</u>

2. (1) In these Articles, unless the context otherwise requires, the words standing in the first column of the following table shall bear the meaning set opposite them respectively in the second column.

---

| | |
|:---|:---|
| WORD | MEANING |
| "Act" | The Companies Act, Cap. 22 (As Revised) of the Cayman Islands. |
| "address" | for the purposes of these Articles, "address" includes an electronic address unless the Act or rules of the Designated Stock Exchange require a postal address. |
| "Articles" | these Articles in their present form or as supplemented or amended or substituted from time to time. |
| "Audit Committee" | the audit committee of the Company formed by the Board pursuant to Article 123 hereof, or any successor audit committee. |
| "Auditor" | the independent auditor of the Company which shall be an internationally recognized firm of independent accountants. |
| "Board" or "Directors" | the board of directors of the Company or the directors present at a meeting of directors of the Company at which a quorum is present. |
| "capital" | the share capital from time to time of the Company. |

---

---

| | |
|:---|:---|
| "clear days" | in relation to the period of a notice, that period excluding the day when the notice is given or deemed to be given and the day for which it is given or on which it is to take effect. |
| "clearing house" | a clearing house recognised by the laws of the jurisdiction in which the shares of the Company (or depositary receipts therefor) are listed or quoted on a stock exchange or interdealer quotation system in such jurisdiction. |
| "Company" | Center Holdings Inc. |
| "competent regulatory authority" | a competent regulatory authority in the territory where the shares of the Company (or depositary receipts therefor) are listed or quoted on a stock exchange or interdealer quotation system in such territory. |
| "debenture" and "debenture holder" | include debenture stock and debenture stockholder respectively. |
| "Designated Stock Exchange" | the stock exchange in the United States of America on which any shares are listed for trading. |
| "dollars" and "$" | dollars, the legal currency of the United States of America. |
| "electronic communication" | a communication sent, transmitted, conveyed and received by wire, by radio, by optical means or by other similar means in any form through any medium. |
| "electronic meeting" | a general meeting held and conducted wholly and exclusively by virtual attendance and participation by Members and/or proxies by means of electronic facilities. |
| "Exchange Act" | the Securities Exchange Act of 1934, as amended. |
| "head office" | such office of the Company as the Directors may from time to time determine to be the principal office of the Company. |
| "hybrid meeting" | a general meeting convened for the (i) physical attendance by Members and/or proxies at the Principal Meeting Place and where applicable, one or more Meeting Locations and (ii) virtual attendance and participation by Members and/or proxies by means of electronic facilities. |
| "Meeting Location" | has the meaning given to it in Article 65A. |

---

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| | |
|:---|:---|
| "Independent Director" | a director who is an independent director as defined in the applicable rules and regulations of the Designated Stock Exchange. |
| "Member" | a duly registered holder from time to time of the shares in the capital of the Company. |
| "Memorandum of Association" | the memorandum of association of the Company, as amended from time to time. |
| "month" | a calendar month. |
| "Notice" | written notice unless otherwise specifically stated these Articles and, where the context so requires, shall include any other document or communication to be served, issued, or given by the Company under these Articles or pursuant to applicable laws and regulations, including the rules of the Designated Stock Exchange and/or competent regulatory authority. For the avoidance of doubt, Notice may be provided in physical or electronic form. |
| "Office" | the registered office of the Company for the time being. |
| "ordinary resolution" | a resolution shall be an ordinary resolution when it has been passed by a simple majority of votes cast by such Members as, being entitled so to do, vote in person or, in the case of any Member being a corporation, by its duly authorised representative or, where proxies are allowed, by proxy at a general meeting of which Notice has been duly given in accordance with Article 60; |
| "paid up" | paid up or credited as paid up. |
| "physical meeting" | a general meeting held and conducted by physical attendance and participation by Members and/or proxies at the Principal Meeting Place and/or where applicable, one or more Meeting Locations. |
| "Principal Meeting Place" | shall have the meaning given to it in Article 60(2). |
| "Register" | the principal register and where applicable, any branch register of Members of the Company to be maintained at such place within or outside the Cayman Islands as the Board shall determine from time to time. |
| "Registration Office" | in respect of any class of share capital such place as the Board may from time to time determine to keep a branch register of Members in respect of that class of share capital and where (except in cases where the Board otherwise directs) the transfers or other documents of title for such class of share capital are to be lodged for registration and are to be registered. |

---

---

| | |
|:---|:---|
| "SEC" | the United States Securities and Exchange Commission. |
| "Securities Act" | mean the U.S. Securities Act 1933 as amended, or any similar federal statute and the rules and regulations of the SEC thereunder as the same shall be in effect from time to time. |
| "Seal" | common seal or any one or more duplicate seals of the Company (including a securities seal) for use in the Cayman Islands or in any place outside the Cayman Islands. |
| "Secretary" | any person, firm or corporation appointed by the Board to perform any of the duties of secretary of the Company and includes any assistant, deputy, temporary or acting secretary. |
| "shares" | ordinary shares of par value US$0.0000001 each. |
| "special resolution" | a resolution shall be a special resolution when it has been passed by a majority of not less than two-thirds of votes cast by such Members as, being entitled so to do, vote in person or, in the case of such Members as are corporations, by their respective duly authorised representative or, where proxies are allowed, by proxy at a general meeting of which Notice has been duly given in accordance with Article 60; |
|  | a special resolution shall be effective for any purpose for which an ordinary resolution is expressed to be required under any provision of these Articles or the Statutes. |
| "Statutes" | the Act and every other law of the Legislature of the Cayman Islands for the time being in force applying to or affecting the Company, its Memorandum of Association and/or these Articles. |
| "year" | a calendar year. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In
 these Articles, unless there be something within the subject or context inconsistent with
 such construction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words
 importing the singular include the plural and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words
 importing a gender include both gender and the neuter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words
 importing persons include companies, associations and bodies of persons whether corporate
 or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 words:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "may"
 shall be construed as permissive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "shall"
 or "will" shall be construed as imperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) expressions
 referring to writing shall, unless the contrary intention appears, be construed as including
 printing, lithography, email, facsimile, photography and other modes of representing or reproducing
 words or figures in a legible and non-transitory form or, to the extent permitted by and
 in accordance with the Statutes and other applicable laws, rules and regulations, any visible
 substitute for writing (including an electronic communication), or modes of representing
 or reproducing words partly in one visible form and partly in another visible form, including
 electronic writing or display (such as digital documents or electronic communications), or
 represented by any other substitute or format for storage or transmission for writing or
 partly one and partly another provided that both the mode of service of the relevant document
 or Notice and the Member's election comply with all applicable Statutes, rules and
 regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 requirement as to delivery under the Articles include delivery in the form of an electronic
 record (as defined in the Electronic Transactions Act of the Cayman Islands) or an electronic
 communication;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) references
 to any law, ordinance, statute or statutory provision shall be interpreted as relating to
 any statutory modification or re-enactment thereof for the time being in force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) save
 as aforesaid words and expressions defined in the Statutes shall bear the same meanings in
 these Articles if not inconsistent with the subject in the context;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) references
 to a document (including, but without limitation, a resolution in writing) being signed or
 executed include references to it being signed or executed under hand or under seal or by
 electronic signature or by electronic communication or by any other method and references
 to a Notice or document include a Notice or document recorded or stored in any digital, electronic,
 electrical, magnetic or other retrievable form or medium and information in visible form
 whether having physical substance or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Sections
 8 and 19 of the Electronic Transaction Act of the Cayman Islands, as amended from time to
 time, shall not apply to these Articles to the extent it imposes obligations or requirements
 in addition to those set out in these Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the
 right of a Member to speak at an electronic meeting or a hybrid meeting shall include the
 right to raise questions or make statements to the chairman of the meeting, verbally or in
 written form, by means of electronic facilities. Such a right shall be deemed to have been
 duly exercised if the questions or statements may be heard or seen by all or only some of
 the persons present at the meeting (or only by the chairman of the meeting) in which event
 the chairman of the meeting shall relay the questions raised or the statements made verbatim
 to all persons present at the meeting, either orally or in writing using electronic facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a
 reference to a meeting: (a) shall, where the context is appropriate, include a meeting that
 has been postponed by the Board pursuant to Article 65E, and (b) shall mean a meeting convened
 and held in any manner permitted by these Articles and any Member or Director attending and
 participating at a meeting by means of electronic facilities shall be deemed to be present
 at that meeting for all purposes of the Statutes and these Articles, and attend, participate,
 attending, participating, attendance and participation shall be construed accordingly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) references
 to a person's participation in the business of a general meeting include without limitation
 and as relevant the right (including, in the case of a corporation, through a duly authorised
 representative) to speak or communicate, vote, be represented by a proxy and have access
 in hard copy or electronic form to all documents which are required by the Statutes or these
 Articles to be made available at the meeting, and participate and participating in the business
 of a general meeting shall be construed accordingly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) references
 to electronic facilities include, without limitation, website addresses, webinars, webcast,
 video or any form of conference call systems (telephone, video, web or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) where
 a Member is a corporation, any reference in these Articles to a Member shall, where the context
 requires, refer to a duly authorised representative of such Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) references
 to "in the ordinary course of business" and comparable expressions mean the ordinary
 and usual course of business of the relevant party, consistent in all material respects (including
 nature and scope) with the prior practice of such party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) unless
 the context otherwise requires, any reference to "print", "printed",
 or "printed copy" and "printing" shall be deemed to include electronic
 versions or electronic copies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) any
 reference to the term "place" within these Articles shall be construed as applicable
 only in contexts where a physical location is required or relevant. Any reference to a "place"
 for the delivery, receipt, or payment of monies, whether by the Company or by Members, shall
 not preclude the use of electronic means for such delivery, receipt, or payment. For the
 avoidance of doubt, references to a "place" in the context of meetings shall
 include physical, electronic, or hybrid meeting formats, as permitted by applicable laws
 and regulations. Notices of meetings, adjournments, postponements, or any other references
 to a "place" shall be interpreted to include virtual platforms or electronic
 means of communication where applicable. Where the term "place" is out of context,
 unnecessary, or not applicable, such reference shall be disregarded without affecting the
 validity or interpretation of the relevant provision.

<u>SHARE CAPITAL</u>

3. (1) The share capital of the Company at the date on which these Articles come into effect shall be divided into ordinary shares of a par value of US$0.0000001 each.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Subject to the Act, the Company's Memorandum and Articles of Association and, where applicable, the rules and regulations of the Designated Stock Exchange and/or any competent regulatory authority, the Company shall have the power to purchase or otherwise acquire its own shares and such power shall be exercisable by the Board in such manner, upon such terms and subject to such conditions as it in its absolute discretion thinks fit and any determination by the Board of the manner of purchase shall be deemed authorized by these Articles for purposes of the Act. Subject to the Act, the rules and regulations of the Designated Stock Exchange and/or any competent regulatory authority, the Company is hereby authorized to make payments in respect of a redemption or purchase of its own shares in any manner authorized by the Act, including out of its capital. The purchase of any share shall not oblige the Company to purchase any other share other than as may be required pursuant to applicable law and any other contractual obligations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Company is authorised to hold treasury shares in accordance with the Act and may designate as treasury shares any of its shares that it purchases or redeems, or any share surrendered to it subject to the rules and regulations of the Designated Stock Exchange and/or any competent regulatory authority. Shares held by the Company as treasury shares shall continue to be classified as treasury shares until such shares are either cancelled or transferred as the Board may determine on such terms and subject to such conditions as it in its absolute discretion thinks fits in accordance with the Act subject to the rules and regulations of the Designated Stock Exchange and/or any competent regulatory authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Company may accept the surrender for no consideration of any fully paid share unless, as a result of such surrender, there would no longer be any issued shares of the Company other than shares held as treasury shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) No share shall be issued to bearer.

<u>ALTERATION OF CAPITAL</u>

4. The Company may from time to time by ordinary resolution in accordance with the Act alter the conditions of its Memorandum of Association to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase
 its capital by such sum, to be divided into shares of such amounts, as the resolution shall
 prescribe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate
 and divide all or any of its capital into shares of larger amount than its existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) without
 prejudice to the powers of the Board under Article 13, divide its shares into several classes
 and without prejudice to any special rights previously conferred on the holders of existing
 shares attach thereto respectively any preferential, deferred, qualified or special rights,
 privileges, conditions or such restrictions which in the absence of any such determination
 by the Company in general meeting, as the Directors may determine provided always that, for
 the avoidance of doubt, where a class of shares has been authorized by the Company no resolution
 of the Company in general meeting is required for the issuance of shares of that class and
 the Directors may issue shares of that class and determine such rights, privileges, conditions
 or restrictions attaching thereto as aforesaid, and further provided that where the Company
 issues shares which do not carry voting rights, the words "non-voting" shall
 appear in the designation of such shares and where the equity capital includes shares with
 different voting rights, the designation of each class of shares, other than those with the
 most favourable voting rights, must include the words "restricted voting" or
 "limited voting";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) sub-divide
 its shares, or any of them, into shares of smaller amount than is fixed by the Memorandum
 of Association (subject, nevertheless, to the Act), and may by such resolution determine
 that, as between the holders of the shares resulting from such sub-division, one or more
 of the shares may have any such preferred, deferred or other rights or be subject to any
 such restrictions as compared with the other or others as the Company has power to attach
 to unissued or new shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel
 any shares which, at the date of the passing of the resolution, have not been taken, or agreed
 to be taken, by any person, and diminish the amount of its capital by the amount of the shares
 so cancelled or, in the case of shares, without par value, diminish the number of shares
 into which its capital is divided.

5. The Board may settle as it considers expedient any difficulty which arises in relation to any consolidation and division under the Article 4 and in particular but without prejudice to the generality of the foregoing may issue certificates in respect of fractions of shares or arrange for the sale of the shares representing fractions and the distribution of the net proceeds of sale (after deduction of the expenses of such sale) in due proportion amongst the Members who would have been entitled to the fractions, and for this purpose the Board may authorise any person to transfer the shares representing fractions to their purchaser or resolve that such net proceeds be paid to the Company for the Company's benefit. Such purchaser will not be bound to see to the application of the purchase money nor will his title to the shares be affected by any irregularity or invalidity in the proceedings relating to the sale.

6. The Company may from time to time by special resolution, subject to any confirmation or consent required by the Act, reduce its share capital or any capital redemption reserve or other undistributable reserve in any manner permitted by law.

7. Except so far as otherwise provided by the conditions of issue, or by these Articles, any capital raised by the creation of new shares shall be treated as if it formed part of the original capital of the Company, and such shares shall be subject to the provisions contained in these Articles with reference to the payment of calls and instalments, transfer and transmission, forfeiture, lien, cancellation, surrender, voting and otherwise.

<u>SHARE RIGHTS</u>

8. Subject to the provisions of the Act, the rules and regulations of the Designated Stock Exchange and the Memorandum and Articles of Association and to any special rights conferred on the holders of any shares or class of shares, and without prejudice to Article 13 hereof, any share in the Company (whether forming part of the present capital or not) may be issued with or have attached thereto such rights or restrictions whether in regard to dividend, voting, return of capital or otherwise as the Board may determine, including without limitation on terms that they may be, or at the option of the Company or the holder are, liable to be redeemed on such terms and in such manner, including out of capital, as the Board may deem fit.

9. Subject to the Act, the rules and regulations of the Designated Stock Exchange and the Memorandum and Articles of Association, and to any special rights conferred on the holders of any shares or attaching to any class of shares, shares may be issued on the terms that may be or at the option of the Company or the holder are, liable to be redeemed on such terms and in such manner, including out of capital, as the Board may deem fit.

10. Subject to Article 13(1), the Memorandum of Association and any resolution of the Members to the contrary and without prejudice to any special rights conferred thereby on the holders of any other shares or class of shares, the share capital of the Company shall be divided into shares of a single class the holders of which shall, subject to these Articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be
 entitled to one vote per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 entitled to such dividends as the Board may from time to time declare;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 the event of a winding up or dissolution of the Company, whether voluntary or involuntary
 or for the purpose of a reorganisation or otherwise or upon any distribution of capital,
 be entitled to the surplus assets of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) generally,
 be entitled to enjoy all of the rights attaching to shares.

<u>VARIATION OF RIGHTS</u>

11. Subject to the Act and without prejudice to Article 8, all or any of the special rights for the time being attached to the shares or any class of shares may, unless otherwise provided by the terms of issue of the shares of that class, from time to time (whether or not the Company is being wound up) be varied, modified or abrogated with the sanction of a special resolution passed at a separate general meeting of the holders of the shares of that class. To every such separate general meeting all the provisions of these Articles relating to general meetings of the Company shall, *mutatis mutandis*, apply, but so that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notwithstanding
 Article 59 which shall not apply to this Article 11, separate general meetings of the holders
 of a class or series of shares may be called only by (i) the Chairman of the Board, or (ii)
 a majority of the entire Board (unless otherwise specifically provided by the terms of issue
 of the shares of such class or series). Nothing in this Article 11 shall be deemed to give
 any Member or Members the right to call a class or series meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 necessary quorum (whether at a separate general meeting or at its adjourned meeting) shall
 be a person or persons or (in the case of a Member being a corporation) its duly authorized
 representative together holding or representing by proxy not less than one-third in nominal
 value or par value of the issued shares of that class (but so that if at any adjourned meeting
 of such holders a quorum as above defined is not present, those Members who are present shall
 form a quorum (whatever the number of shares held by them));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) every
 holder of shares of the class shall be entitled on a poll to one vote for every such share
 held by him; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 holder of shares of the class present in person or by proxy or authorised representative
 may demand a poll.

12. The special rights conferred upon the holders of any shares or class of shares shall not, unless otherwise expressly provided in the rights attaching to or the terms of issue of such shares, be deemed to be varied, modified or abrogated by the creation or issue of further shares ranking *pari passu* therewith.

<u>SHARES</u>

13. (1) Subject to the Act, these Articles and, where applicable, the rules and regulations of the Designated Stock Exchange and without prejudice to any special rights or restrictions for the time being attached to any shares or any class of shares, the unissued shares of the Company (whether forming part of the original or any increased capital) shall be at the disposal of the Board, which may offer, allot, grant options over or otherwise dispose of them to such persons, at such times and for such consideration and upon such terms and conditions as the Board may in its absolute discretion determine but so that no shares shall be issued at a discount to their nominal value. In particular and without prejudice to the generality of the foregoing, the Board is hereby empowered to authorize by resolution or resolutions from time to time the issuance of one or more classes or series of preferred shares and to fix the designations, powers, preferences and relative, participating, optional and other rights, if any, and the qualifications, limitations and restrictions thereof, if any, including, without limitation, the number of shares constituting each such class or series, dividend rights, conversion rights, redemption privileges, voting powers, full or limited or no voting powers, and liquidation preferences, and to increase or decrease the size of any such class or series (but not below the number of shares of any class or series of preferred shares then outstanding) to the extent permitted by the Act. Without limiting the generality of the foregoing, the resolution or resolutions providing for the establishment of any class or series of preferred shares may, to the extent permitted by law, provide that such class or series shall be superior to, rank equally with or be junior to the preferred shares of any other class or series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Neither the Company nor the Board shall be obliged, when making or granting any allotment of, offer of, option over or disposal of shares, to make, or make available, any such allotment, offer, option or shares to Members or others with registered addresses in any particular territory or territories being a territory or territories where, in the absence of a registration statement or other special formalities, this would or might, in the opinion of the Board, be unlawful or impracticable. Members affected as a result of the foregoing sentence shall not be, or be deemed to be, a separate class of members for any purpose whatsoever. Except as otherwise expressly provided in the resolution or resolutions providing for the establishment of any class or series of preferred shares, no vote of the holders of preferred shares or ordinary shares shall be a prerequisite to the issuance of any shares of any class or series of the preferred shares authorized by and complying with the conditions of the Memorandum and Articles of Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Board may issue options, warrants or convertible securities or securities of similar nature conferring the right upon the holders thereof to subscribe for, purchase or receive any class of shares or securities in the capital of the Company on such terms as it may from time to time determine.

14. The Company may in connection with the issue of any shares exercise all powers of paying commission and brokerage conferred or permitted by the Act. Subject to the Act, the commission may be satisfied by the payment of cash or by the allotment of fully or partly paid shares or partly in one and partly in the other.

15. Except as required by law, no person shall be recognised by the Company as holding any share upon any trust and the Company shall not be bound by or required in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any share or any fractional part of a share or (except only as otherwise provided by these Articles or by law) any other rights in respect of any share except an absolute right to the entirety thereof in the registered holder.

16. Subject to the Act and these Articles, the Board may at any time after the allotment of shares but before any person has been entered in the Register as the holder, recognise a renunciation thereof by the allottee in favour of some other person and may accord to any allottee of a share a right to effect such renunciation upon and subject to such terms and conditions as the Board considers fit to impose.

<u>SHARE CERTIFICATES</u>

17. Every share certificate shall be issued under the Seal or a facsimile thereof or with the Seal printed thereon and shall specify the number and class and distinguishing numbers (if any) of the shares to which it relates, and the amount paid up thereon and may otherwise be in such form as the Directors may from time to time determine. No certificate shall be issued representing shares of more than one class. The Board may by resolution determine, either generally or in any particular case or cases, that any signatures on any such certificates (or certificates in respect of other securities) need not be autographic but may be affixed to such certificates by some mechanical means or may be printed thereon.

18. (1) In the case of a share held jointly by several persons, the Company shall not be bound to issue more than one certificate therefor and delivery of a certificate to one of several joint holders shall be sufficient delivery to all such holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Where a share stands in the names of two or more persons, the person first named in the Register shall as regards service of notices and, subject to the provisions of these Articles, all or any other matters connected with the Company, except the transfer of the shares, be deemed the sole holder thereof.

19. The Company is not obliged to issue a share certificate to a Member unless the Member requests it in writing from the Company or unless the circumstances, or rules of the Designated Stock Exchange, require share certificates to be issued. Every person whose name is entered, upon an allotment of shares, as a Member in the Register shall be entitled without payment, to receive one certificate for all such shares of any one class or several certificates each for one or more of such shares of such class upon payment for every certificate after the first of such reasonable out-of-pocket expenses as the Board from time to time determines.

20. Share certificates shall be issued within the relevant time limit as prescribed by the Act or as the Designated Stock Exchange may from time to time determine, whichever is the shorter, after allotment or, except in the case of a transfer which the Company is for the time being entitled to refuse to register and does not register, after lodgment of a transfer with the Company. Every share certificate of the Company shall bear legends required under the applicable laws, including the Securities Act.

21. (1) Upon every transfer of shares the certificate held by the transferor shall be given up to be cancelled, and shall forthwith be cancelled accordingly, and a new certificate shall be issued to the transferee in respect of the shares transferred to him at such fee as is provided in paragraph (2) of this Article 21. If any of the shares included in the certificate so given up shall be retained by the transferor a new certificate for the balance shall be issued to him at the aforesaid fee payable by the transferor to the Company in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The fee referred to in paragraph (1) above shall be an amount not exceeding the relevant maximum amount as the Designated Stock Exchange may from time to time determine provided that the Board may at any time determine a lower amount for such fee.

22. If a share certificate shall be damaged or defaced or alleged to have been lost, stolen or destroyed a new certificate representing the same shares may be issued to the relevant Member upon request and on payment of such fee as the Board may determine and, subject to compliance with such terms (if any) as to evidence and indemnity and to payment of the costs and reasonable out-of-pocket expenses of the Company in investigating such evidence and preparing such indemnity as the Board may think fit and, in case of damage or defacement, on delivery of the old certificate to the Company provided always that where share warrants have been issued, no new share warrant shall be issued to replace one that has been lost unless the Board has determined that the original has been destroyed.

<u>LIEN</u>

23. The Company shall have a first and paramount lien on every share (not being a fully paid share) for all moneys (whether presently payable or not) called or payable at a fixed time in respect of that share. The Company shall also have a first and paramount lien on every share (not being a fully paid share) registered in the name of a Member (whether or not jointly with other Members) for all amounts of money presently payable by such Member or his estate to the Company whether the same shall have been incurred before or after notice to the Company of any equitable or other interest of any person other than such member, and whether the period for the payment or discharge of the same shall have actually become due or not, and notwithstanding that the same are joint debts or liabilities of such Member or his estate and any other person, whether a Member or not. The Company's lien on a share shall extend to all dividends or other moneys payable thereon or in respect thereof. The Board may at any time, generally or in any particular case, waive any lien that has arisen or declare any share exempt in whole or in part, from the provisions of this Article 23.

24. Subject to these Articles, the Company may sell in such manner as the Board determines any share on which the Company has a lien, but no sale shall be made unless some sum in respect of which the lien exists is presently payable, or the liability or engagement in respect of which such lien exists is liable to be presently fulfilled or discharged nor until the expiration of fourteen (14) clear days after a notice in writing, stating and demanding payment of the sum presently payable, or specifying the liability or engagement and demanding fulfilment or discharge thereof and giving notice of the intention to sell in default, has been served on the registered holder for the time being of the share or the person entitled thereto by reason of his death or bankruptcy.

25. The net proceeds of the sale shall be received by the Company and applied in or towards payment or discharge of the debt or liability in respect of which the lien exists, so far as the same is presently payable, and any residue shall (subject to a like lien for debts or liabilities not presently payable as existed upon the share prior to the sale) be paid to the person entitled to the share at the time of the sale. To give effect to any such sale the Board may authorise some person to transfer the shares sold to the purchaser thereof. The purchaser shall be registered as the holder of the shares so transferred and he shall not be bound to see to the application of the purchase money, nor shall his title to the shares be affected by any irregularity or invalidity in the proceedings relating to the sale.

<u>CALLS ON SHARES</u>

26. Subject to these Articles and to the terms of allotment, the Board may from time to time make calls upon the Members in respect of any moneys unpaid on their shares (whether on account of the nominal value of the shares or by way of premium), and each Member shall (subject to being given at least fourteen (14) clear days' Notice specifying the time and place of payment) pay to the Company as required by such notice the amount called on his shares. A call may be extended, postponed or revoked in whole or in part as the Board determines but no Member shall be entitled to any such extension, postponement or revocation except as a matter of grace and favour.

27. A call shall be deemed to have been made at the time when the resolution of the Board authorising the call was passed and may be made payable either in one lump sum or by instalments.

28. A person upon whom a call is made shall remain liable for calls made upon him notwithstanding the subsequent transfer of the shares in respect of which the call was made. The joint holders of a share shall be jointly and severally liable to pay all calls and instalments due in respect thereof or other moneys due in respect thereof.

29. If a sum called in respect of a share is not paid before or on the day appointed for payment thereof, the person from whom the sum is due shall pay interest on the amount unpaid from the day appointed for payment thereof to the time of actual payment at such rate (not exceeding twenty per cent. (20%) per annum) as the Board may determine, but the Board may in its absolute discretion waive payment of such interest in whole or in part.

30. No Member shall be entitled to receive any dividend or bonus or to be present and vote (save as proxy for another Member) at any general meeting either personally or by proxy, or be reckoned in a quorum, or exercise any other privilege as a Member until all calls or instalments due by him to the Company, whether alone or jointly with any other person, together with interest and expenses (if any) shall have been paid.

31. On the trial or hearing of any action or other proceedings for the recovery of any money due for any call, it shall be sufficient to prove that the name of the Member sued is entered in the Register as the holder, or one of the holders, of the shares in respect of which such debt accrued, that the resolution making the call is duly recorded in the minute book, and that notice of such call was duly given to the Member sued, in pursuance of these Articles; and it shall not be necessary to prove the appointment of the Directors who made such call, nor any other matters whatsoever, but the proof of the matters aforesaid shall be conclusive evidence of the debt.

32. Any amount payable in respect of a share upon allotment or at any fixed date, whether in respect of nominal value or premium or as an instalment of a call, shall be deemed to be a call duly made and payable on the date fixed for payment and if it is not paid the provisions of these Articles shall apply as if that amount had become due and payable by virtue of a call duly made and notified.

33. On the issue of shares the Board may differentiate between the allottees or holders as to the amount of calls to be paid and the times of payment.

34. The Board may, if it thinks fit, receive from any Member willing to advance the same, and either in money or money's worth, all or any part of the moneys uncalled and unpaid or instalments payable upon any shares held by him and upon all or any of the moneys so advanced (until the same would, but for such advance, become presently payable) pay interest at such rate (if any) as the Board may decide. The Board may at any time repay the amount so advanced upon giving to such Member not less than one (1) month's Notice of its intention in that behalf, unless before the expiration of such notice the amount so advanced shall have been called up on the shares in respect of which it was advanced. Such payment in advance shall not entitle the holder of such share or shares to participate in respect thereof in a dividend subsequently declared.

<u>FORFEITURE OF SHARES</u>

35. (1) If a call remains unpaid after it has become due and payable the Board may give to the person from whom it is due not less than fourteen (14) clear days' Notice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) requiring
 payment of the amount unpaid together with any interest which may have accrued and which
 may still accrue up to the date of actual payment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) stating
 that if the Notice is not complied with the shares on which the call was made will be liable
 to be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the requirements of any such Notice are not complied with, any share in respect of which such Notice has been given may at any time thereafter, before payment of all calls and interest due in respect thereof has been made, be forfeited by a resolution of the Board to that effect, and such forfeiture shall include all dividends and bonuses declared in respect of the forfeited share but not actually paid before the forfeiture.

36. When any share has been forfeited, notice of the forfeiture shall be served upon the person who was before forfeiture the holder of the share. No forfeiture shall be invalidated by any omission or neglect to give such Notice.

37. The Board may accept the surrender of any share liable to be forfeited hereunder and, in such case, references in these Articles to forfeiture will include surrender.

38. Any share so forfeited shall be deemed the property of the Company and may be sold, re-allotted or otherwise disposed of to such person, upon such terms and in such manner as the Board determines, and at any time before a sale, re-allotment or disposition the forfeiture may be annulled by the Board on such terms as the Board determines.

39. A person whose shares have been forfeited shall cease to be a Member in respect of the forfeited shares but nevertheless shall remain liable to pay the Company all moneys which at the date of forfeiture were presently payable by him to the Company in respect of the shares, with (if the Board shall in its discretion so requires) interest thereon from the date of forfeiture until payment at such rate (not exceeding twenty per cent. (20%) per annum) as the Board shall determine. The Board may enforce payment thereof if it thinks fit, and without any deduction or allowance for the value of the forfeited shares, at the date of forfeiture, but his liability shall cease if and when the Company shall have received payment in full of all such moneys in respect of the shares. For the purposes of this Article 39 any sum which, by the terms of issue of a share, is payable thereon at a fixed time which is subsequent to the date of forfeiture, whether on account of the nominal value of the share or by way of premium, shall notwithstanding that time has not yet arrived be deemed to be payable at the date of forfeiture, and the same shall become due and payable immediately upon the forfeiture, but interest thereon shall only be payable in respect of any period between the said fixed time and the date of actual payment.

40. A declaration by a Director or the Secretary that a share has been forfeited on a specified date shall be conclusive evidence of the facts therein stated as against all persons claiming to be entitled to the share, and such declaration shall (subject to the execution of an instrument of transfer by the Company if necessary) constitute a good title to the share, and the person to whom the share is disposed of shall be registered as the holder of the share and shall not be bound to see to the application of the consideration (if any), nor shall his title to the share be affected by any irregularity in or invalidity of the proceedings in reference to the forfeiture, sale or disposal of the share. When any share shall have been forfeited, notice of the declaration shall be given to the Member in whose name it stood immediately prior to the forfeiture, and an entry of the forfeiture, with the date thereof, shall forthwith be made in the Register, but no forfeiture shall be in any manner invalidated by any omission or neglect to give such notice or make any such entry.

41. Notwithstanding any such forfeiture as aforesaid the Board may at any time, before any shares so forfeited shall have been sold, re-allotted or otherwise disposed of, permit the shares forfeited to be bought back upon the terms of payment of all calls and interest due upon and expenses incurred in respect of the share, and upon such further terms (if any) as it thinks fit.

42. The forfeiture of a share shall not prejudice the right of the Company to any call already made or instalment payable thereon.

43. The provisions of these Articles as to forfeiture shall apply in the case of non-payment of any sum which, by the terms of issue of a share, becomes payable at a fixed time, whether on account of the nominal value of the share or by way of premium, as if the same had been payable by virtue of a call duly made and notified.

<u>REGISTER OF MEMBERS</u>

44. (1) The Company shall keep in one or more books a Register of its Members and shall enter therein the following particulars, that is to say:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 name and address of each Member, the number and class of shares held by him and the amount
 paid or agreed to be considered as paid on such shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 date on which each person was entered in the Register; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 date on which any person ceased to be a Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company may keep an overseas or local or other branch register of Members resident in any place, and the Board may make and vary such regulations as it determines in respect of the keeping of any such register and maintaining a Registration Office in connection therewith.

45. The Register and branch register of Members, as the case may be, shall be open to inspection for such times and on such days as the Board shall determine by Members without charge or by any other person, upon a maximum payment of $2.50 or such other sum specified by the Board, at the Office or Registration Office or such other place at which the Register is kept in accordance with the Act. The Register including any overseas or local or other branch register of Members may, after compliance with any notice requirements of the Designated Stock Exchange or by any electronic means in such manner as may be accepted by the Designated Stock Exchange to that effect, be closed for inspection at such times or for such periods not exceeding in the whole thirty (30) days in each year as the Board may determine and either generally or in respect of any class of shares.

 

 

<u>RECORD DATES</u>

46. For the purpose of determining the Members entitled to notice of or to vote at any general meeting, or any adjournment thereof, or entitled to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of shares or for the purpose of any other lawful action, the Board may fix, in advance, a date as the record date for any such determination of Members.

If the Board does not fix a record date for any general meeting, the record date for determining the Members entitled to a notice of or to vote at such meeting shall be at the close of business on the day next preceding the day on which notice is given, or, if in accordance with these Articles notice is waived, at the close of business on the day next preceding the day on which the meeting is held. The record date for determining the Members for any other purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

A determination of the Members of record entitled to notice of or to vote at a meeting of the Members shall apply to any adjournment of the meeting; provided, however, that the Board may fix a new record date for the adjourned meeting.

<u>TRANSFER OF SHARES</u>

47. (1) Subject to these Articles, any Member may transfer all or any of his shares by an instrument of transfer in the usual or common form or in a form prescribed by the Designated Stock Exchange or in any other form approved by the Board and may be under hand or, if the transferor or transferee is a clearing house or a central depository house or its nominee(s), by hand or by machine imprinted signature or by such other manner of execution as the Board may approve from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Notwithstanding the provisions of subparagraph (1) above, for so long as any shares are listed on the Designated Stock Exchange, titles to such listed shares may be evidenced and transferred in accordance with the laws applicable to and the rules and regulations of the Designated Stock Exchange that are or shall be applicable to such listed shares. The register of members of the Company in respect of its listed shares (whether the Register or a branch register) may be kept by recording the particulars required by Section 40 of the Act in a form otherwise than legible if such recording otherwise complies with the laws applicable to and the rules and regulations of the Designated Stock Exchange that are or shall be applicable to such listed shares.

48. The instrument of transfer shall be executed by or on behalf of the transferor and the transferee provided that the Board may dispense with the execution of the instrument of transfer by the transferee in any case which it thinks fit in its discretion to do so. Without prejudice to Article 47, the Board may also resolve, either generally or in any particular case, upon request by either the transferor or transferee, to accept mechanically executed transfers. The transferor shall be deemed to remain the holder of the share until the name of the transferee is entered in the Register in respect thereof. Nothing in these Articles shall preclude the Board from recognising a renunciation of the allotment or provisional allotment of any share by the allottee in favour of some other person.

49. (1) The Board may, in its absolute discretion, and without giving any reason therefor, refuse to register a transfer of any share (not being a fully paid up share) to a person of whom it does not approve, or any share issued under any share incentive scheme for employees upon which a restriction on transfer imposed thereby still subsists, and it may also, without prejudice to the foregoing generality, refuse to register a transfer of any share to more than four joint holders or a transfer of any share (not being a fully paid up share) on which the Company has a lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Board in so far as permitted by any applicable law may, in its absolute discretion, at any time and from time to time transfer any share upon the Register to any branch register or any share on any branch register to the Register or any other branch register. In the event of any such transfer, the shareholder requesting such transfer shall bear the cost of effecting the transfer unless the Board otherwise determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Unless the Board otherwise agrees (which agreement may be on such terms and subject to such conditions as the Board in its absolute discretion may from time to time determine, and which agreement the Board shall, without giving any reason therefor, be entitled in its absolute discretion to give or withhold), no shares upon the Register shall be transferred to any branch register nor shall shares on any branch register be transferred to the Register or any other branch register and all transfers and other documents of title shall be lodged for registration, and registered, in the case of any shares on a branch register, at the relevant Registration Office, and, in the case of any shares on the Register, at the Office or such other place at which the Register is kept in accordance with the Act.

50. Without limiting the generality of the Article 49, the Board may decline to recognise any instrument of transfer unless:-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 fee of such maximum sum as the Designated Stock Exchange may determine to be payable or such
 lesser sum as the Board may from time to time require is paid to the Company in respect thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 instrument of transfer is in respect of only one class of share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 instrument of transfer is lodged at the Office or such other place at which the Register
 is kept in accordance with the Act or the Registration Office (as the case may be) accompanied
 by the relevant share certificate(s) and such other evidence as the Board may reasonably
 require to show the right of the transferor to make the transfer (and, if the instrument
 of transfer is executed by some other person on his behalf, the authority of that person
 so to do); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if
 applicable, the instrument of transfer is duly and properly stamped.

51. If the Board refuses to register a transfer of any share, it shall, within two months after the date on which the transfer was lodged with the Company, send to each of the transferor and transferee notice of the refusal.

52. The registration of transfers of shares or of any class of shares may, after compliance with any notice requirement of the Designated Stock Exchange, be suspended at such times and for such periods (not exceeding in the whole thirty (30) days in any year) as the Board may determine. The period of thirty (30) days may be extended for a further period or periods not exceeding thirty (30) days in respect of any year if approved by the Members by ordinary resolution.

<u>TRANSMISSION OF SHARES</u>

53. If a Member dies, the survivor or survivors where the deceased was a joint holder, and his legal personal representatives where he was a sole or only surviving holder, will be the only persons recognised by the Company as having any title to his interest in the shares; but nothing in this Article will release the estate of a deceased Member (whether sole or joint) from any liability in respect of any share which had been solely or jointly held by him.

54. Any person becoming entitled to a share in consequence of the death or bankruptcy or winding-up of a Member may, upon such evidence as to his title being produced as may be required by the Board, elect either to become the holder of the share or to have some person nominated by him registered as the transferee thereof. If he elects to become the holder he shall notify the Company in writing either at the Registration Office or the Office, as the case may be, to that effect. If he elects to have another person registered he shall execute a transfer of the share in favour of that person. The provisions of these Articles relating to the transfer and registration of transfers of shares shall apply to such notice or transfer as aforesaid as if the death or bankruptcy of the Member had not occurred and the notice or transfer were a transfer signed by such Member.

55. A person becoming entitled to a share by reason of the death or bankruptcy or winding-up of a Member shall be entitled to the same dividends and other advantages to which he would be entitled if he were the registered holder of the share. However, the Board may, if it thinks fit, withhold the payment of any dividend payable or other advantages in respect of such share until such person shall become the registered holder of the share or shall have effectually transferred such share, but, subject to the requirements of Article 76(2) being met, such a person may vote at meetings.

<u>UNTRACEABLE MEMBERS</u>

56. (1) Without prejudice to the rights of the Company under paragraph (2) of this Article 56, the Company may cease sending cheques for dividend entitlements or dividend warrants by post if such cheques or warrants have been left uncashed on two consecutive occasions. However, the Company may exercise the power to cease sending cheques for dividend entitlements or dividend warrants after the first occasion on which such a cheque or warrant is returned undelivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company shall have the power to sell, in such manner as the Board thinks fit, any shares of a Member who is untraceable, but no such sale shall be made unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 cheques or warrants in respect of dividends of the shares in question, being not less than
 three in total number, for any sum payable in cash to the holder of such shares in respect
 of them sent during the relevant period in the manner authorised by the Articles have remained
 uncashed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) so
 far as it is aware at the end of the relevant period, the Company has not at any time during
 the relevant period received any indication of the existence of the Member who is the holder
 of such shares or of a person entitled to such shares by death, bankruptcy or operation of
 law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Company, if so required by the rules governing the listing of shares on the Designated Stock
 Exchange, has given notice to, and caused advertisement in newspapers to be made in accordance
 with the requirements of, the Designated Stock Exchange of its intention to sell such shares
 in the manner required by the Designated Stock Exchange, and a period of three (3) months
 or such shorter period as may be allowed by the Designated Stock Exchange has elapsed since
 the date of such advertisement.

For the purpose of the foregoing, the "relevant period" means the period commencing twelve (12) years before the date of publication of the advertisement referred to in paragraph (c) of this Article and ending at the expiry of the period referred to in that paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To give effect to any such sale the Board may authorise some person to transfer the said shares and an instrument of transfer signed or otherwise executed by or on behalf of such person shall be as effective as if it had been executed by the registered holder or the person entitled by transmission to such shares, and the purchaser shall not be bound to see to the application of the purchase money nor shall his title to the shares be affected by any irregularity or invalidity in the proceedings relating to the sale. The net proceeds of the sale will belong to the Company and upon receipt by the Company of such net proceeds it shall become indebted to the former Member for an amount equal to such net proceeds. No trust shall be created in respect of such debt and no interest shall be payable in respect of it and the Company shall not be required to account for any money earned from the net proceeds which may be employed in the business of the Company or as it thinks fit. Any sale under this Article shall be valid and effective notwithstanding that the Member holding the shares sold is dead, bankrupt or otherwise under any legal disability or incapacity.

<u>GENERAL MEETINGS</u>

57. The Company shall, if required by the Statute, in each year hold a general meeting as its annual general meeting, and shall specify the meeting as such in the notices calling it. An annual general meeting of the Company shall be held at such time and place as may be determined by the Board.

58. Each general meeting, other than an annual general meeting, shall be called an extraordinary general meeting. All General meetings (including an annual general meeting, any adjourned general meeting or postponed meeting) may be held as a physical meeting at such times and in any part of the world and at one or more locations as provided in Article 65A, as a hybrid meeting or as an electronic meeting, as may be determined by the Board in its absolute discretion.

59. A majority of the Board or the Chairman of the Board may call extraordinary general meetings, which extraordinary general meetings shall be held at such times and locations (as permitted hereby) as such person or persons shall determine.

<u>NOTICE OF GENERAL MEETINGS</u>

60. (1) An annual general meeting and any extraordinary general meeting may be called by not less than ten (10) clear days' Notice but a general meeting may be called by shorter notice, subject to the Act, if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in
 the case of a meeting called as an annual general meeting, by all the Members entitled to
 attend and vote thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the case of any other meeting, by a majority in number of the Members having the right to
 attend and vote at the meeting, being a majority together holding not less than ninety-five
 per cent. (95%) in nominal value of the issued shares giving that right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The notice shall specify (a) the time and place of the meeting, (b) save for an electronic meeting, the place of the meeting and if there is more than one meeting location as determined by the Board pursuant to Article 65A, the principal place of the meeting (the "**Principal Meeting Place**"), (c) if the general meeting is to be a hybrid meeting or an electronic meeting, the Notice shall include a statement to that effect and with details of the electronic facilities for attendance and participation by electronic means at the meeting or where such details will be made available by the Company prior to the meeting, and (d) in case of special business, the general nature of the business. The notice convening an annual general meeting shall specify the meeting as such. Notice of every general meeting shall be given to all Members other than to such Members as, under the provisions of these Articles or the terms of issue of the shares they hold, are not entitled to receive such notices from the Company, to all persons entitled to a share in consequence of the death or bankruptcy or winding-up of a Member and to each of the Directors.

61. The accidental omission to give Notice of a meeting or (in cases where instruments of proxy are sent out with the Notice) to send such instrument of proxy to, or the non-receipt of such Notice or such instrument of proxy by, any person entitled to receive such Notice shall not invalidate any resolution passed or the proceedings at that meeting.

<u>PROCEEDINGS AT GENERAL MEETINGS</u>

62. (1) All business shall be deemed special that is transacted at an extraordinary general meeting, and also all business that is transacted at an annual general meeting, with the exception of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 declaration and sanctioning of dividends; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consideration
 and adoption of the accounts and balance sheet and the reports of the Directors and Auditors
 and other documents required to be annexed to the balance sheet.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) No business other than the appointment of a chairman of a meeting shall be transacted at any general meeting unless a quorum is present at the commencement of the business. At any general meeting of the Company, two (2) Members entitled to vote and present in person or by proxy or (in the case of a Member being a corporation) by its duly authorised representative representing not less than one-third in nominal value of the total issued voting shares in the Company throughout the meeting shall form a quorum for all purposes.

63. If within thirty (30) minutes (or such longer time not exceeding one hour as the chairman of the meeting may determine to wait) after the time appointed for the meeting a quorum is not present, the meeting shall stand adjourned to the same day in the next week at the same time and (where applicable) same place(s) or to such time and (where applicable) such place(s) and in such form and manner referred to in Article 58 as the Board may absolutely determine. If at such adjourned meeting a quorum is not present within half an hour from the time appointed for holding the meeting, the meeting shall be dissolved.

64. (1) The Chairman of the Board shall preside as chairman at every general meeting. If at any meeting the chairman is not present within fifteen (15) minutes after the time appointed for holding the meeting, or is not willing to act as chairman, the Directors present shall choose one of their number to act, or if one Director only is present he shall preside as chairman if willing to act. If no Director is present, or if each of the Directors present declines to take the chair, or if the chairman chosen shall retire from the chair, the Members present in person or by its duly authorised representative or by proxy and entitled to vote shall elect one of their number to be chairman.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the chairman of a general meeting is participating in the general meeting using an electronic facility or facilities and becomes unable to participate in the general meeting using such electronic facility or facilities, another person (determined in accordance with Article 64(1) above) shall preside as chairman of the meeting unless and until the original chairman of the meeting is able to participate in the general meeting using the electronic facility or facilities

65. The chairman may adjourn the meeting from time to time (or indefinitely) and/or from place to place(s) and/or from one form to another (a physical meeting, a hybrid meeting or an electronic meeting), but no business shall be transacted at any adjourned meeting other than the business which might lawfully have been transacted at the meeting had the adjournment not taken place. When a meeting is adjourned for fourteen (14) days or more, at least seven (7) clear days' notice of the adjourned meeting shall be given specifying the time and place of the adjourned meeting but it shall not be necessary to specify in such notice the nature of the business to be transacted at the adjourned meeting and the general nature of the business to be transacted. Save as aforesaid, it shall be unnecessary to give notice of an adjournment.

65A. (1) The Board may, at its absolute discretion, arrange for persons entitled to attend a general meeting to do so by simultaneous attendance and participation by means of electronic facilities at such location or locations ("**Meeting Location(s)**") determined by the Board at its absolute discretion. Any Member or any proxy attending and participating in such way or any Member or proxy attending and participating in an electronic meeting or a hybrid meeting by means of electronic facilities is deemed to be present at and shall be counted in the quorum of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All general meetings are subject to the following and, where appropriate, all references to a "Member" or "Members" in this sub-paragraph (2) shall include a proxy or proxies respectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where
 a Member is attending a Meeting Location and/or in the case of a hybrid meeting, the meeting
 shall be treated as having commenced if it has commenced at the Principal Meeting Place;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Members
 present in person or by proxy at a Meeting Location and/or Members attending and participating
 in an electronic meeting or a hybrid meeting by means of electronic facilities shall be counted
 in the quorum for and entitled to vote at the meeting in question, and that meeting shall
 be duly constituted and its proceedings valid provided that the chairman of the meeting is
 satisfied that adequate electronic facilities are available throughout the meeting to ensure
 that Members at all Meeting Locations and Members participating in an electronic meeting
 or a hybrid meeting by means of electronic facilities are able to participate in the business
 for which the meeting has been convened;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where
 Members attend a meeting by being present at one of the Meeting Locations and/or where Members
 participating in an electronic meeting or a hybrid meeting by means of electronic facilities,
 a failure (for any reason) of the electronic facilities or communication equipment, or any
 other failure in the arrangements for enabling those in a Meeting Location other than the
 Principal Meeting Place to participate in the business for which the meeting has been convened
 or in the case of an electronic meeting or a hybrid meeting, the inability of one or more
 Members or proxies to access, or continue to access, the electronic facilities despite adequate
 electronic facilities having been made available by the Company, shall not affect the validity
 of the meeting or the resolutions passed, or any business conducted there or any action taken
 pursuant to such business provided that there is a quorum present throughout the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if
 any of the Meeting Locations is not in the same jurisdiction as the Principal Meeting Place
 and/or in the case of a hybrid meeting, the provisions of these Articles concerning the service
 and giving of Notice for the meeting, and the time for lodging proxies, shall apply by reference
 to the Principal Meeting Place; and in the case of an electronic meeting, the time for lodging
 proxies shall be as stated in the Notice for the meeting.

65B. The Board and, at any general meeting, the chairman of the meeting may from time to time make arrangements for managing attendance and/or participation and/or voting at the Principal Meeting Place, any Meeting Location(s) and/or participation in an electronic meeting or a hybrid meeting by means of electronic facilities (whether involving the issue of tickets or some other means of identification, passcode, seat reservation, electronic voting or otherwise) as it shall in its absolute discretion consider appropriate, and may from time to time change any such arrangements, provided that a Member who, pursuant to such arrangements, is not entitled to attend, in person or by proxy, at any Meeting Location shall be entitled so to attend at one of the other Meeting Locations; and the entitlement of any Member so to attend the meeting or adjourned meeting or postponed meeting at such Meeting Location or Meeting Locations shall be subject to any such arrangement as may be for the time being in force and by the Notice of meeting or adjourned meeting or postponed meeting stated to apply to the meeting.

65C. If it appears to the chairman of the general meeting that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 electronic facilities at the Principal Meeting Place or at such other Meeting Location(s)
 at which the meeting may be attended have become inadequate for the purposes referred to
 in Article 65A(1) or are otherwise not sufficient to allow the meeting to be conducted substantially
 in accordance with the provisions set out in the Notice of the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the case of an electronic meeting or a hybrid meeting, electronic facilities being made available
 by the Company have become inadequate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 is not possible to ascertain the view of those present or to give all persons entitled to
 do so a reasonable opportunity to communicate and/or vote at the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) there
 is violence or the threat of violence, unruly behaviour or other disruption occurring at
 the meeting or it is not possible to secure the proper and orderly conduct of the meeting;

then, without prejudice to any other power which the chairman of the meeting may have under these Articles or at common law, the chairman may, at his/her absolute discretion, without the consent of the meeting, and before or after the meeting has started and irrespective of whether a quorum is present, interrupt or adjourn the meeting (including adjournment for indefinite period). All business conducted at the meeting up to the time of such adjournment shall be valid.

65D. The Board and, at any general meeting, the chairman of the meeting may make any arrangement and impose any requirement or restriction the Board or the chairman of the meeting, as the case may be, considers appropriate to ensure the security and orderly conduct of a meeting (including, without limitation, requirements for evidence of identity to be produced by those attending the meeting, the searching of their personal property and the restriction of items that may be taken into the meeting place, determining the number and frequency of and the time allowed for questions that may be raised at a meeting). Members shall also comply with all requirements or restrictions imposed by the owner of the premises at which the meeting is held. Any decision made under this Article shall be final and conclusive and a person who refuses to comply with any such arrangements, requirements or restrictions may be refused entry to the meeting or ejected (physically or electronically) from the meeting.

65E. If, after the sending of Notice of a general meeting but before the meeting is held, or after the adjournment of a meeting but before the adjourned meeting is held (whether or not Notice of the adjourned meeting is required), the Directors, in their absolute discretion, consider that it is inappropriate, impracticable, unreasonable or undesirable for any reason to hold the general meeting on the date or at the time or place or by means of electronic facilities specified in the Notice calling the meeting, they may change or postpone the meeting to another date, time and/or place and/or change the electronic facilities and/or change the form of the meeting (a physical meeting, an electronic meeting or a hybrid meeting) without approval from the Members. Without prejudice to the generality of the foregoing, the Directors shall have the power to provide in every Notice calling a general meeting the circumstances in which a postponement of the relevant general meeting may occur automatically without further notice, including without limitation where a number 8 or higher typhoon signal, black rainstorm warning or other similar event is in force at any time on the day of the meeting. This Article shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) when
 a meeting is so postponed, the Company shall endeavour to post a Notice of such postponement
 on the Company's website as soon as practicable (provided that failure to post such
 a Notice shall not affect the automatic postponement of a meeting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) when
 only the form of the meeting or electronic facilities specified in the Notice are changed,
 the Board shall notify the Members of details of such change in such manner as the Board
 may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) when
 a meeting is postponed or changed in accordance with this Article, subject to and without
 prejudice to Article 65, unless already specified in the original Notice of the meeting,
 the Board shall fix the date, time, place (if applicable) and electronic facilities (if applicable)
 for the postponed or changed meeting and shall notify the Members of such details in such
 manner as the Board may determine; further all proxy forms shall be valid (unless revoked
 or replaced by a new proxy) if they are received as required by these Articles not less than
 48 hours before the time of the postponed meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notice
 of the business to be transacted at the postponed or changed meeting shall not be required,
 nor shall any accompanying documents be required to be recirculated, provided that the business
 to be transacted at the postponed or changed meeting is the same as that set out in the original
 Notice of general meeting circulated to the Members.

65F. All persons seeking to attend and participate in an electronic meeting or a hybrid meeting shall be responsible for maintaining adequate facilities to enable them to do so. Subject to Article 65C, any inability of a person or persons to attend or participate in a general meeting by way of electronic facilities shall not invalidate the proceedings of and/or resolutions passed at that meeting.

65G. Without prejudice to other provisions in Article 65, a physical meeting may also be held by means of such telephone, electronic or other communication facilities as permit all persons participating in the meeting to communicate with each other simultaneously and instantaneously, and participation in such a meeting shall constitute presence in person at such meeting

66. If an amendment is proposed to any resolution under consideration but is in good faith ruled out of order by the chairman of the meeting, the proceedings on the substantive resolution shall not be invalidated by any error in such ruling. In the case of a resolution duly proposed as a special resolution, no amendment thereto (other than a mere clerical amendment to correct a patent error) may in any event be considered or voted upon.

<u>VOTING</u>

67. Holders of ordinary shares have the right to receive notice of, attend, speak and vote at general meetings of the Company. Subject to any special rights or restrictions as to voting for the time being attached to any shares by or in accordance with these Articles, at any general meeting on a show of hands every Member present in person (or being a corporation, is present by a duly authorised representative), or by proxy shall have one vote and on a poll every Member present in person or by proxy or, in the case of a Member being a corporation, by its duly authorised representative shall have one vote for every fully paid share of which he is the holder but so that no amount paid up or credited as paid up on a share in advance of calls or instalments is treated for the foregoing purposes as paid up on the share. Notwithstanding anything contained in these Articles, where more than one proxy is appointed by a Member which is a clearing house or a central depository house (or its nominee(s)), each such proxy shall have one vote on a show of hands. A resolution put to the vote of a meeting shall be decided by way of a poll save that in the case of a physical meeting, the chairman of the meeting may decide that a vote be on a show of hands unless voting by way of a poll is required by the rules and regulations of the Designated Stock Exchange or (before or on the declaration of the result of the show of hands or on the withdrawal of any other demand for a poll) a poll is demanded:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by
 at least three Members present in person or (in the case of a Member being a corporation)
 by its duly authorised representative or by proxy for the time being entitled to vote at
 the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by
 a Member or Members present in person or (in the case of a Member being a corporation) by
 its duly authorised representative or by proxy and representing not less than one tenth of
 the total voting rights of all Members having the right to vote at the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by
 a Member or Members present in person or (in the case of a Member being a corporation) by
 its duly authorised representative or by proxy and holding shares in the Company conferring
 a right to vote at the meeting being shares on which an aggregate sum has been paid up equal
 to not less than one tenth of the total sum paid up on all shares conferring that right.

A demand by a person as proxy for a Member or in the case of a Member being a corporation by its duly authorised representative shall be deemed to be the same as a demand by a Member. Votes (whether on a show of hands or by way of poll) may be cast by such means, electronic or otherwise, as the Directors or the chairman of the meeting may determine.

68. Unless a poll is duly demanded and the demand is not withdrawn, a declaration by the chairman that a resolution has been carried, or carried unanimously, or by a particular majority, or not carried by a particular majority, or lost, and an entry to that effect made in the minute book of the Company, shall be conclusive evidence of the facts without proof of the number or proportion of the votes recorded for or against the resolution.

69. If a poll is duly demanded the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded. The Company shall only be required to disclose the voting figures on a poll if such disclosure is required by the rules and regulations of the Designated Stock Exchange.

70. A poll demanded on the election of a chairman, or on a question of adjournment, shall be taken forthwith. A poll demanded on any other question shall be taken in such manner (including the use of ballot or voting papers or tickets) and either forthwith or at such time (being not later than thirty (30) days after the date of the demand) and place as the chairman directs. It shall not be necessary (unless the chairman otherwise directs) for notice to be given of a poll not taken immediately.

71. The demand for a poll shall not prevent the continuance of a meeting or the transaction of any business other than the question on which the poll has been demanded, and, with the consent of the chairman, it may be withdrawn at any time before the close of the meeting or the taking of the poll, whichever is the earlier.

72. On a poll votes may be given either personally or by proxy.

73. A person entitled to more than one vote on a poll need not use all his votes or cast all the votes he uses in the same way.

74. All questions submitted to a meeting shall be decided by a simple majority of votes except where a greater majority is required by these Articles, by the Act or the rules and regulations of the Designated Stock Exchange. In the case of an equality of votes, whether on a show of hands or on a poll, the chairman of such meeting shall be entitled to a second or casting vote in addition to any other vote he may have.

75. Where there are joint holders of any share any one of such joint holders may vote, either in person or by proxy, in respect of such share as if he were solely entitled thereto, but if more than one of such joint holders be present at any meeting the vote of the senior holder who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of the other joint holders, and for this purpose seniority shall be determined by the order in which the names stand in the Register in respect of the joint holding. Several executors or administrators of a deceased Member in whose name any share stands shall for the purposes of this Article be deemed joint holders thereof.

76. (1) A Member who is a patient for any purpose relating to mental health or in respect of whom an order has been made by any court having jurisdiction for the protection or management of the affairs of persons incapable of managing their own affairs may vote, whether on a show of hands or on a poll, by his receiver, committee, *curator bonis* or other person in the nature of a receiver, committee or *curator bonis* appointed by such court, and such receiver, committee, *curator bonis* or other person may vote on a poll by proxy, and may otherwise act and be treated as if he were the registered holder of such shares for the purposes of general meetings, provided that such evidence as the Board may require of the authority of the person claiming to vote shall have been deposited at the Office, head office or Registration Office, as appropriate, not less than forty-eight (48) hours before the time appointed for holding the meeting, or adjourned meeting or postponed meeting, or poll, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any person entitled under Article 54 to be registered as the holder of any shares may vote at any general meeting in respect thereof in the same manner as if he were the registered holder of such shares, provided that forty-eight (48) hours at least before the time of the holding of the meeting or adjourned meeting or postponed meeting, as the case may be, at which he proposes to vote, he shall satisfy the Board of his entitlement to such shares, or the Board shall have previously admitted his right to vote at such meeting in respect thereof.

77. No Member shall, unless the Board otherwise determines, be entitled to attend and vote and to be reckoned in a quorum at any general meeting unless he is duly registered and all calls or other sums presently payable by him in respect of shares in the Company have been paid.

78. If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 objection shall be raised to the qualification of any voter; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 votes have been counted which ought not to have been counted or which might have been rejected;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 votes are not counted which ought to have been counted;

the objection or error shall not vitiate the decision of the meeting or adjourned meeting on any resolution unless the same is raised or pointed out at the meeting or, as the case may be, the adjourned meeting at which the vote objected to is given or tendered or at which the error occurs. Any objection or error shall be referred to the chairman of the meeting and shall only vitiate the decision of the meeting on any resolution if the chairman decides that the same may have affected the decision of the meeting. The decision of the chairman on such matters shall be final and conclusive.

<u>PROXIES</u>

79. Any Member entitled to attend and vote at a meeting of the Company shall be entitled to appoint another person as his proxy to attend and vote instead of him. A Member who is the holder of two or more shares may appoint more than one proxy to represent him and vote on his behalf at a general meeting of the Company or at a class meeting. A proxy need not be a Member. In addition, a proxy or proxies representing either a Member who is an individual or a Member which is a corporation shall be entitled to exercise the same powers on behalf of the Member which he or they represent as such Member could exercise.

80. The instrument appointing a proxy shall be in such form, including electronic or otherwise, as the Board may determine and in the absence of such determination, shall be in writing, which may include electronic writing, and signed by the appointor or of his attorney duly authorised in writing or, if the appointor is a corporation, either under its seal or under the hand of an officer, attorney or other person authorised to sign the same. In the case of an instrument of proxy purporting to be signed on behalf of a corporation by an officer thereof it shall be assumed, unless the contrary appears, that such officer was duly authorised to sign such instrument of proxy on behalf of the corporation without further evidence of the facts.

81. (1) The Company may, at its absolute discretion, provide an electronic address for the receipt of any document or information relating to proxies for a general meeting (including any instrument of proxy or invitation to appoint a proxy, any document necessary to show the validity of, or otherwise relating to, an appointment of proxy (whether or not required under these Articles) and notice of termination of the authority of a proxy). If such an electronic address is provided, the Company shall be deemed to have agreed that any such document or information (relating to proxies as aforesaid) may be sent by electronic means to that address, subject as hereafter provided and subject to any other limitations or conditions specified by the Company when providing the address. Without limitation, the Company may from time to time determine that any such electronic address may be used generally for such matters or specifically for particular meetings or purposes and, if so, the Company may provide different electronic addresses for different purposes. The Company may also impose any conditions on the transmission of and its receipt of such electronic communications including, for the avoidance of doubt, imposing any security or encryption arrangements as may be specified by the Company. If any document or information required to be sent to the Company under this Article is sent to the Company by electronic means, such document or information is not treated as validly delivered to or deposited with the Company if the same is not received by the Company at its designated electronic address provided in accordance with this Article or if no electronic address is so designated by the Company for the receipt of such document or information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The instrument appointing a proxy and (if required by the Board) the power of attorney or other authority (if any) under which it is signed, or a certified copy of such power or authority, shall be delivered to such place or one of such places (if any) as may be specified for that purpose in or by way of note to or in any document accompanying the notice convening the meeting (or, if no place is so specified at the Registration Office or the Office, as may be appropriate) , or if the Company has provided an electronic address in accordance with the preceding paragraph, shall be received at the electronic address specified, not less than forty-eight (48) hours before the time appointed for holding the meeting, the postponed meeting or adjourned meeting at which the person named in the instrument proposes to vote or, in the case of a poll taken subsequently to the date of a meeting or adjourned meeting, not less than twenty-four (24) hours before the time appointed for the taking of the poll and in default the instrument of proxy shall not be treated as valid. No instrument appointing a proxy shall be valid after the expiration of twelve (12) months from the date named in it as the date of its execution, except at an adjourned meeting or on a poll demanded at a meeting or an adjourned meeting in cases where the meeting was originally held within twelve (12) months from such date. Delivery of an instrument appointing a proxy shall not preclude a Member from attending and voting at the meeting convened and in such event, the instrument appointing a proxy shall be deemed to be revoked.

82. Instruments of proxy shall be in any common form or in such other form as the Board may approve (provided that this shall not preclude the use of the two-way form) and the Board may, if it thinks fit, send out with the notice of any meeting forms of instrument of proxy for use at the meeting. The instrument of proxy shall be deemed to confer authority to demand or join in demanding a poll and to vote on any amendment of a resolution put to the meeting for which it is given as the proxy thinks fit. The instrument of proxy shall, unless the contrary is stated therein, be valid as well for any adjournment or postponement of the meeting as for the meeting to which it relates. The Board may decide, either generally or in any particular case, to treat a proxy appointment as valid notwithstanding that the appointment or any of the information required under these Articles has not been received in accordance with the requirements of these Articles. Subject to aforesaid, if the proxy appointment and any of the information required under these Articles is not received in the manner set out in these Articles, the appointee shall not be entitled to vote in respect of the shares in question.

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83. A vote given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous death or insanity of the principal, or revocation of the instrument of proxy or of the authority under which it was executed, provided that no intimation in writing of such death, insanity or revocation shall have been received by the Company at the Office or the Registration Office (or such other place as may be specified for the delivery of instruments of proxy in the notice convening the meeting or other document sent therewith) two (2) hours at least before the commencement of the meeting, the postponed meeting or adjourned meeting, or the taking of the poll, at which the instrument of proxy is used.

84. Anything which under these Articles a Member may do by proxy he may likewise do by his duly appointed attorney and the provisions of these Articles relating to proxies and instruments appointing proxies shall apply *mutatis mutandis* in relation to any such attorney and the instrument under which such attorney is appointed.

<u>CORPORATIONS ACTING BY REPRESENTATIVES</u>

85. (1) Any corporation which is a Member may by resolution of its directors or other governing body authorise such person as it thinks fit to act as its representative at any meeting of the Company or at any meeting of any class of Members. The person so authorised shall be entitled to exercise the same powers on behalf of such corporation as the corporation could exercise if it were an individual Member and such corporation shall for the purposes of these Articles be deemed to be present in person at any such meeting if a person so authorised is present thereat.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If a clearing house (or its nominee(s)) or a central depository entity (or its nominee(s)), being a corporation, is a Member, it may authorise such persons as it thinks fit to act as its representatives at any meeting of the Company or at any meeting of any class of Members provided that the authorisation shall specify the number and class of shares in respect of which each such representative is so authorised. Each person so authorised under the provisions of this Article shall be deemed to have been duly authorised without further evidence of the facts and be entitled to exercise the same rights and powers on behalf of the clearing house or a central depository entity (or its nominee(s)) as if such person was the registered holder of the shares of the Company held by the clearing house or a central depository entity (or its nominee(s)) including the right to vote individually on a show of hands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any reference in these Articles to a duly authorised representative of a Member being a corporation shall mean a representative authorised under the provisions of this Article.

<u>NO ACTION BY WRITTEN RESOLUTIONS OF MEMBERS</u>

86. Any action required or permitted to be taken at any annual or extraordinary general meetings of the Company may be taken only upon the vote of the Members at an annual or extraordinary general meeting duly noticed and convened in accordance with these Articles and the Act and may not be taken by written resolution of Members without a meeting.

<u>BOARD OF DIRECTORS</u>

87. (1) Unless otherwise determined by the Company in general meeting, the number of Directors shall not be less than two (2). There shall be no maximum number of Directors unless otherwise determined from time to time by the Board. For so long as the shares are listed on the Designated Stock Exchange, the Directors shall include such number of Independent Directors as applicable law, rules or regulations or the Designated Stock Exchange require, unless the Board resolves to follow any available exceptions or exemptions. The Directors shall be elected or appointed in accordance with Article 87 and shall hold office until the expiration of his term or until their successors are elected or appointed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Subject to the Articles and the Act, the Company may by ordinary resolution elect any person to be a Director either to fill a casual vacancy or as an addition to the existing Board.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Directors shall have the power from time to time and at any time to appoint any person as a Director to fill a casual vacancy on the Board or as an addition to the existing Board subject to the Company's compliance with director nomination procedures required under the rules and regulations of the Designated Stock Exchange as long as shares are listed on the Designated Stock Exchange, unless the Board resolves to follow any available exceptions or exemptions.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) No Director shall be required to hold any shares of the Company by way of qualification and a Director who is not a Member shall be entitled to receive notice of and to attend and speak at any general meeting of the Company and of all classes of shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Subject to any provision to the contrary in these Articles, a Director may be removed by way of an ordinary resolution of the Members at any time before the expiration of his period of office notwithstanding anything in these Articles or in any agreement between the Company and such Director (but without prejudice to any claim for damages under any such agreement).

 ****

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The Company may from time to time in general meeting by ordinary resolution increase or reduce the number of Directors but so that the number of Directors shall never be less than two (2).

<u>DISQUALIFICATION OF DIRECTORS</u>

88. The office of a Director shall be vacated if the Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) resigns his office by notice in writing delivered to the Company at the Office or tendered at a meeting of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) becomes of unsound mind or dies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) without special leave of absence from the Board, is absent from meetings of the Board for three consecutive meetings and the Board resolves that his office be vacated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) becomes bankrupt or has a receiving order made against him or suspends payment or compounds with his creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5) is prohibited by law from being a Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) ceases to be a Director by virtue of any provision of the Statutes or is removed from office pursuant to these Articles.

<u>EXECUTIVE DIRECTORS</u>

89. The Board may from time to time appoint any one or more of its body to be a managing director, joint managing director or deputy managing director or to hold any other employment or executive office with the Company for such period (subject to their continuance as Directors) and upon such terms as the Board may determine and the Board may revoke or terminate any of such appointments. Any such revocation or termination as aforesaid shall be without prejudice to any claim for damages that such Director may have against the Company or the Company may have against such Director. A Director appointed to an office under this Article 89 shall be subject to the same provisions as to removal as the other Directors of the Company, and he shall (subject to the provisions of any contract between him and the Company) ipso facto and immediately cease to hold such office if he shall cease to hold the office of Director for any cause.

90. Notwithstanding Articles 95, 96, 97 and 98, an executive director appointed to an office under Article 89 hereof shall receive such remuneration (whether by way of salary, commission, participation in profits or otherwise or by all or any of those modes) and such other benefits (including pension and/or gratuity and/or other benefits on retirement) and allowances as the Board may from time to time determine, and either in addition to or in lieu of his remuneration as a Director.

<u>ALTERNATE DIRECTORS</u>

91. Any Director may at any time by Notice delivered to the Office or head office or at a meeting of the Directors appoint any person (including another Director) to be his alternate Director. Any person so appointed shall have all the rights and powers of the Director or Directors for whom such person is appointed in the alternative provided that such person shall not be counted more than once in determining whether or not a quorum is present. An alternate Director may be removed at any time by the body which appointed him and, subject thereto, the office of alternate Director shall continue until the happening of any event which, if he were a Director, would cause him to vacate such office or if his appointer ceases for any reason to be a Director. Any appointment or removal of an alternate Director shall be effected by Notice signed by the appointor and delivered to the Office or head office or tendered at a meeting of the Board. An alternate Director may also be a Director in his own right and may act as alternate to more than one Director. An alternate Director shall, if his appointor so requests, be entitled to receive notices of meetings of the Board or of committees of the Board to the same extent as, but in lieu of, the Director appointing him and shall be entitled to such extent to attend and vote as a Director at any such meeting at which the Director appointing him is not personally present and generally at such meeting to exercise and discharge all the functions, powers and duties of his appointor as a Director and for the purposes of the proceedings at such meeting the provisions of these Articles shall apply as if he were a Director save that as an alternate for more than one Director his voting rights shall be cumulative.

92. An alternate Director shall only be a Director for the purposes of the Act and shall only be subject to the provisions of the Act insofar as they relate to the duties and obligations of a Director when performing the functions of the Director for whom he is appointed in the alternative and shall alone be responsible to the Company for his acts and defaults and shall not be deemed to be the agent of or for the Director appointing him. An alternate Director shall be entitled to contract and be interested in and benefit from contracts or arrangements or transactions and to be repaid expenses and to be indemnified by the Company to the same extent *mutatis mutandis* as if he were a Director but he shall not be entitled to receive from the Company any fee in his capacity as an alternate Director except only such part, if any, of the remuneration otherwise payable to his appointor as such appointor may by Notice to the Company from time to time direct.

93. Every person acting as an alternate Director shall have one vote for each Director for whom he acts as alternate (in addition to his own vote if he is also a Director). If his appointor is for the time being absent from the People's Republic of China or otherwise not available or unable to act, the signature of an alternate Director to any resolution in writing of the Board or a committee of the Board of which his appointor is a member shall, unless the notice of his appointment provides to the contrary, be as effective as the signature of his appointor.

94. An alternate Director shall ipso facto cease to be an alternate Director if his appointor ceases for any reason to be a Director, however, such alternate Director or any other person may be re-appointed by the Directors to serve as an alternate Director.

<u>DIRECTORS' FEES AND EXPENSES</u>

95. The Directors shall receive such remuneration as the Board may from time to time determine. Each Director shall be entitled to be repaid or prepaid all traveling, hotel and incidental expenses reasonably incurred or expected to be incurred by him in attending meetings of the Board or committees of the board or general meetings or separate meetings of any class of shares or of debenture of the Company or otherwise in connection with the discharge of his duties as a Director.

96. Each Director shall be entitled to be repaid or prepaid all travelling, hotel and incidental expenses reasonably incurred or expected to be incurred by him in attending meetings of the Board or committees of the Board or general meetings or separate meetings of any class of shares or of debentures of the Company or otherwise in connection with the discharge of his duties as a Director.

97. Any Director who, by request, goes or resides abroad for any purpose of the Company or who performs services which in the opinion of the Board go beyond the ordinary duties of a Director may be paid such extra remuneration (whether by way of salary, commission, participation in profits or otherwise) as the Board may determine and such extra remuneration shall be in addition to or in substitution for any ordinary remuneration provided for by or pursuant to any other Article.

98. The Board shall determine any payment to any Director or past Director of the Company by way of compensation for loss of office, or as consideration for or in connection with his retirement from office (not being payment to which the Director is contractually entitled).

<u>DIRECTORS' INTERESTS</u>

99. A Director may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) hold
 any other office or place of profit with the Company (except that of Auditor) in conjunction
 with his office of Director for such period and upon such terms as the Board may determine.
 Any remuneration (whether by way of salary, commission, participation in profits or otherwise)
 paid to any Director in respect of any such other office or place of profit shall be in addition
 to any remuneration provided for by or pursuant to any other Article;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) act
 by himself or his firm in a professional capacity for the Company (otherwise than as Auditor)
 and he or his firm may be remunerated for professional services as if he were not a Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) continue
 to be or become a director, managing director, joint managing director, deputy managing director,
 executive director, manager or other officer or member of any other company promoted by the
 Company or in which the Company may be interested as a vendor, shareholder or otherwise and
 (unless otherwise agreed) no such Director shall be accountable for any remuneration, profits
 or other benefits received by him as a director, managing director, joint managing director,
 deputy managing director, executive director, manager or other officer or member of or from
 his interests in any such other company. Subject as otherwise provided by these Articles
 the Directors may exercise or cause to be exercised the voting powers conferred by the shares
 in any other company held or owned by the Company, or exercisable by them as Directors of
 such other company in such manner in all respects as they think fit (including the exercise
 thereof in favour of any resolution appointing themselves or any of them directors, managing
 directors, joint managing directors, deputy managing directors, executive directors, managers
 or other officers of such company) or voting or providing for the payment of remuneration
 to the director, managing director, joint managing director, deputy managing director, executive
 director, manager or other officers of such other company and any Director may vote in favour
 of the exercise of such voting rights in manner aforesaid notwithstanding that he may be,
 or about to be, appointed a director, managing director, joint managing director, deputy
 managing director, executive director, manager or other officer of such a company, and that
 as such he is or may become interested in the exercise of such voting rights in manner aforesaid.

Notwithstanding the foregoing, no Independent Director shall without the consent of the Audit Committee take any of the foregoing actions or any other action that would reasonably be likely to affect such Director's status as an Independent Director.

 

 

100. Subject to the Act and to these Articles, no Director or proposed or intending Director shall be disqualified by his office from contracting with the Company, either with regard to his tenure of any office or place of profit or as vendor, purchaser or in any other manner whatsoever, nor shall any such contract or any other contract or arrangement in which any Director is in any way interested be liable to be avoided, nor shall any Director so contracting or being so interested be liable to account to the Company or the Members for any remuneration, profit or other benefits realised by any such contract or arrangement by reason of such Director holding that office or of the fiduciary relationship thereby established provided that such Director shall disclose the nature of his interest in any contract or arrangement in which he is interested in accordance with Article 101 herein. Any such transaction that would reasonably be likely to affect a Director's status as an Independent Director, or that would constitute a "related party transaction" as defined by the rules and regulations of the Designated Stock Exchange or under applicable laws, shall require the approval of the Audit Committee.

101. A Director who to his knowledge is in any way, whether directly or indirectly, interested in a contract or arrangement or proposed contract or arrangement with the Company shall declare the nature of his interest at the meeting of the Board at which the question of entering into the contract or arrangement is first considered, if he knows his interest then exists, or in any other case at the first meeting of the Board after he knows that he is or has become so interested. For the purposes of this Article, a general Notice to the Board by a Director to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he
 is a member or officer of a specified company or firm and is to be regarded as interested
 in any contract or arrangement which may after the date of the Notice be made with that company
 or firm; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he
 is to be regarded as interested in any contract or arrangement which may after the date of
 the Notice be made with a specified person who is connected with him;

shall be deemed to be a sufficient declaration of interest under this Article in relation to any such contract or arrangement, provided that no such Notice shall be effective unless either it is given at a meeting of the Board or the Director takes reasonable steps to secure that it is brought up and read at the next Board meeting after it is given.

102. Following a declaration being made pursuant to the last preceding two Articles, subject to any separate requirement for Audit Committee approval under applicable law or the rules and regulations of the Designated Stock Exchange, and unless disqualified by the chairman of the relevant Board meeting, a Director may vote in respect of any contract or proposed contract or arrangement in which such Director is interested and may be counted in the quorum at such meeting.

<u>GENERAL POWERS OF THE DIRECTORS</u>

103. (1) The business of the Company shall be managed and conducted by the Board, which may pay all expenses incurred in forming and registering the Company and may exercise all powers of the Company (whether relating to the management of the business of the Company or otherwise) which are not by the Statutes or by these Articles required to be exercised by the Company in general meeting, subject nevertheless to the provisions of the Statutes and of these Articles and to such regulations being not inconsistent with such provisions, as may be prescribed by the Company in general meeting, but no regulations made by the Company in general meeting shall invalidate any prior act of the Board which would have been valid if such regulations had not been made. The general powers given by this Article shall not be limited or restricted by any special authority or power given to the Board by any other Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any person contracting or dealing with the Company in the ordinary course of business shall be entitled to rely on any written or oral contract or agreement or deed, document or instrument entered into or executed as the case may be by any one Director on behalf of the Company and the same shall be deemed to be validly entered into or executed by the Company as the case may be and shall, subject to any rule of law, be binding on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Without prejudice to the general powers conferred by these Articles it is hereby expressly declared that the Board shall have the following powers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 give to any person the right or option of requiring at a future date that an allotment shall
 be made to him of any share at par or at such premium as may be agreed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to
 give to any Directors, officers or employees of the Company an interest in any particular
 business or transaction or participation in the profits thereof or in the general profits
 of the Company either in addition to or in substitution for a salary or other remuneration;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 resolve that the Company be deregistered in the Cayman Islands and continued in a named jurisdiction
 outside the Cayman Islands subject to the provisions of the Act.

104. The Board may establish any regional or local boards or agencies for managing any of the affairs of the Company in any place, and may appoint any persons to be members of such local boards, or any managers or agents, and may fix their remuneration (either by way of salary or by commission or by conferring the right to participation in the profits of the Company or by a combination of two or more of these modes) and pay the working expenses of any staff employed by them upon the business of the Company. The Board may delegate to any regional or local board, manager or agent any of the powers, authorities and discretions vested in or exercisable by the Board (other than its powers to make calls and forfeit shares), with power to sub-delegate, and may authorise the members of any of them to fill any vacancies therein and to act notwithstanding vacancies. Any such appointment or delegation may be made upon such terms and subject to such conditions as the Board may think fit, and the Board may remove any person appointed as aforesaid, and may revoke or vary such delegation, but no person dealing in good faith and without notice of any such revocation or variation shall be affected thereby.

105. The Board may by power of attorney appoint any company, firm or person or any fluctuating body of persons, whether nominated directly or indirectly by the Board, to be the attorney or attorneys of the Company for such purposes and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Board under these Articles) and for such period and subject to such conditions as it may think fit, and any such power of attorney may contain such provisions for the protection and convenience of persons dealing with any such attorney as the Board may think fit, and may also authorise any such attorney to sub-delegate all or any of the powers, authorities and discretions vested in him. Such attorney or attorneys may, if so authorised under the Seal of the Company, execute any deed or instrument under their personal seal with the same effect as the affixation of the Company's Seal.

106. The Board may entrust to and confer upon a managing director, joint managing director, deputy managing director, an executive director or any Director any of the powers exercisable by it upon such terms and conditions and with such restrictions as it thinks fit, and either collaterally with, or to the exclusion of, its own powers, and may from time to time revoke or vary all or any of such powers but no person dealing in good faith and without notice of such revocation or variation shall be affected thereby.

107. All cheques, promissory notes, drafts, bills of exchange and other instruments, whether negotiable or transferable or not, and all receipts for moneys paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed, as the case may be, in such manner as the Board shall from time to time by resolution determine. The Company's banking accounts shall be kept with such banker or bankers as the Board shall from time to time determine.

108. (1) The Board may establish or concur or join with other companies (being subsidiary companies of the Company or companies with which it is associated in business) in establishing and making contributions out of the Company's moneys to any schemes or funds for providing pensions, sickness or compassionate allowances, life assurance or other benefits for employees (which expression as used in this and the following paragraph shall include any Director or ex-Director who may hold or have held any executive office or any office of profit under the Company or any of its subsidiary companies) and ex-employees of the Company and their dependants or any class or classes of such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Board may pay, enter into agreements to pay or make grants of revocable or irrevocable pensions or other benefits to employees and ex-employees and their dependants, or to any of such persons, including pensions or benefits additional to those, if any, to which such employees or ex-employees or their dependants are or may become entitled under any such scheme or fund as mentioned in the last preceding paragraph. Any such pension or benefit may, as the Board considers desirable, be granted to an employee either before and in anticipation of or upon or at any time after his actual retirement, and may be subject or not subject to any terms or conditions as the Board may determine.

<u>BORROWING POWERS</u>

109. The Board may exercise all the powers of the Company to raise or borrow money and to mortgage or charge all or any part of the undertaking, property and assets (present and future) and uncalled capital of the Company and, subject to the Act, to issue debentures, bonds and other securities, whether outright or as collateral security for any debt, liability or obligation of the Company or of any third party.

110. Debentures, bonds and other securities may be made assignable free from any equities between the Company and the person to whom the same may be issued.

111. Any debentures, bonds or other securities may be issued at a discount (other than shares), premium or otherwise and with any special privileges as to redemption, surrender, drawings, allotment of shares, attending and voting at general meetings of the Company, appointment of Directors and otherwise.

112. (1) Where any uncalled capital of the Company is charged, all persons taking any subsequent charge thereon shall take the same subject to such prior charge, and shall not be entitled, by notice to the Members or otherwise, to obtain priority over such prior charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Board shall cause a proper register to be kept, in accordance with the provisions of the Act, of all charges specifically affecting the property of the Company and of any series of debentures issued by the Company and shall duly comply with the requirements of the Act in regard to the registration of charges and debentures therein specified and otherwise.

<u>PROCEEDINGS OF THE DIRECTORS</u>

113. The Board may meet for the despatch of business, adjourn and otherwise regulate its meetings as it considers appropriate. Questions arising at any meeting shall be determined by a majority of votes. In the case of any equality of votes the chairman of the meeting shall have an additional or casting vote.

114. A meeting of the Board may be convened by the Secretary on request of a Director or by any Director. The Secretary shall convene a meeting of the Board of which notice may be given in writing or by telephone or by electronic means to an electronic address from time to time notified to the Company by such Director or (if the recipient consents to it being made available on a website) by making it available on a website or in such other manner as the Board may from time to time determine whenever he shall be required so to do by the president or chairman, as the case may be, or any Director.

 ****

115. (1) The quorum necessary for the transaction of the business of the Board may be fixed by the Board and, unless so fixed at any other number, shall be two (2) of the Board. An alternate Director shall be counted in a quorum in the case of the absence of a Director for whom he is the alternate provided that he shall not be counted more than once for the purpose of determining whether or not a quorum is present.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Directors may participate in any meeting of the Board by means of a conference, telephone, electronic or other communications equipment through which all persons participating in the meeting can communicate with each other simultaneously and instantaneously and, for the purpose of counting a quorum, such participation shall constitute presence at a meeting as if those participating were present in person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any Director who ceases to be a Director at a Board meeting may continue to be present and to act as a Director and be counted in the quorum until the termination of such Board meeting if no other Director objects and if otherwise a quorum of Directors would not be present.

116. The continuing Directors or a sole continuing Director may act notwithstanding any vacancy in the Board but, if and so long as the number of Directors is reduced below the minimum number fixed by or in accordance with these Articles as the quorum, the continuing Directors or Director, notwithstanding that the number of Directors is below the number fixed by or in accordance with these Articles as the quorum or that there is only one continuing Director, may act for the purpose of filling vacancies in the Board or of summoning general meetings of the Company but not for any other purpose.

117. The Chairman of the Board shall be the chairman of all meetings of the Board. If the Chairman of the Board is not present at any meeting within five (5) minutes after the time appointed for holding the same, the Directors present may choose one of their number to be chairman of the meeting.

118. A meeting of the Board at which a quorum is present shall be competent to exercise all the powers, authorities and discretions for the time being vested in or exercisable by the Board.

119. (1) The Board may delegate any of its powers, authorities and discretions to committees (including, without limitation, the Audit Committee), consisting of such Director or Directors and other persons as it thinks fit, and they may, from time to time, revoke such delegation or revoke the appointment of and discharge any such committees either wholly or in part, and either as to persons or purposes. Any committee so formed shall, in the exercise of the powers, authorities and discretions so delegated, conform to any regulations which may be imposed on it by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All acts done by any such committee in conformity with such regulations, and in fulfilment of the purposes for which it was appointed, but not otherwise, shall have like force and effect as if done by the Board, and the Board (or if the Board delegates such power, the committee) shall have power to remunerate the members of any such committee, and charge such remuneration to the current expenses of the Company.

120. The meetings and proceedings of any committee consisting of two or more members shall be governed by the provisions contained in these Articles for regulating the meetings and proceedings of the Board so far as the same are applicable and are not superseded by any regulations imposed by the Board under the last preceding Article, indicating, without limitation, any committee charter adopted by the Board for purposes or in respect of any such committee.

121. A resolution in writing signed by all the Directors except such as are temporarily unable to act through ill-health or disability shall (provided that such number is sufficient to constitute a quorum and further provided that a copy of such resolution has been given or the contents thereof communicated to all the Directors for the time being entitled to receive notices of Board meetings in the same manner as notices of meetings are required to be given by these Articles) be as valid and effectual as if a resolution had been passed at a meeting of the Board duly convened and held. A notification of consent to such resolution given by a Director in writing to the Board by any means (including by means of electronic communication) shall be deemed to be his/her signature to such resolution in writing for the purpose of this Article. Such resolution may be contained in one document or in several documents in like form each signed by one or more of the Directors and for this purpose a facsimile signature of a Director shall be treated as valid.

122. All acts bona fide done by the Board or by any committee or by any person acting as a Director or members of a committee, shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment of any member of the Board or such committee or person acting as aforesaid or that they or any of them were disqualified or had vacated office, be as valid as if every such person had been duly appointed and was qualified and had continued to be a Director or member of such committee.

<u>AUDIT COMMITTEE</u>

123. Without prejudice to the freedom of the Directors to establish any other committees, for so long as the shares of the Company (or depositary receipts therefor) are listed or quoted on the Designated Stock Exchange, the Board shall establish and maintain an Audit Committee as a committee of the Board, the composition and responsibilities of which shall comply with the rules and regulations of the Designated Stock Exchange and the rules and regulations of the SEC.

124. The Board shall adopt a formal written audit committee charter and review and assess the adequacy of the formal written charter on an annual basis.

125. For so long as the shares of the Company (or depositary receipts therefor) are listed or quoted on the Designated Stock Exchange, the Company shall conduct an appropriate review of all related party transactions on an ongoing basis and shall utilize the Audit Committee for the review and approval of potential conflicts of interest in accordance with the audit committee charter.

<u>OFFICERS</u>

126. (1) The officers of the Company shall consist of the Chairman of the Board, the Directors and Secretary and such additional officers (who may or may not be Directors) as the Board may from time to time determine, all of whom shall be deemed to be officers for the purposes of the Act and these Articles. In addition to the officers of the Company, the Board may also from time to time determine and appoint managers and delegate to the same such powers and duties as are prescribed by the Board.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Directors shall, as soon as may be after each appointment or election of Directors, elect amongst the Directors a chairman and if more than one Director is proposed for this office, the election to such office shall take place in such manner as the Directors may determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The officers shall receive such remuneration as the Directors may from time to time determine.

127. (1) The Secretary and additional officers, if any, shall be appointed by the Board and shall hold office on such terms and for such period as the Board may determine. If thought fit, two or more persons may be appointed as joint Secretaries. The Board may also appoint from time to time on such terms as it thinks fit one or more assistant or deputy Secretaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Secretary shall attend all meetings of the Members and shall keep correct minutes of such meetings and enter the same in the proper books provided for the purpose. He shall perform such other duties as are prescribed by the Act or these Articles or as may be prescribed by the Board.

128. The officers of the Company shall have such powers and perform such duties in the management, business and affairs of the Company as may be delegated to them by the Directors from time to time.

129. A provision of the Act or of these Articles requiring or authorising a thing to be done by or to a Director and the Secretary shall not be satisfied by its being done by or to the same person acting both as Director and as or in place of the Secretary.

<u>REGISTER OF DIRECTORS AND OFFICERS</u>

130. The Company shall cause to be kept in one or more books at its Office a Register of Directors and Officers in which there shall be entered the full names and addresses of the Directors and Officers and such other particulars as required by the Act or as the Directors may determine. The Company shall send to the Registrar of Companies in the Cayman Islands a copy of such register, and shall from time to time notify to the said Registrar of any change that takes place in relation to such Directors and Officers as required by the Act.

<u>MINUTES</u>

131. (1) The Board shall cause minutes to be duly entered in books provided for the purpose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) of
 all elections and appointments of officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) of
 the names of the Directors present at each meeting of the Directors and of any committee
 of the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) of
 all resolutions and proceedings of each general meeting of the Members, meetings of the Board
 and meetings of committees of the Board and where there are managers, of all proceedings
 of meetings of the managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Minutes
 shall be kept by the Secretary at the Office.

<u>SEAL</u>

132. (1) The Company shall have one or more Seals, as the Board may determine. For the purpose of sealing documents creating or evidencing securities issued by the Company, the Company may have a securities seal which is a facsimile of the Seal of the Company with the addition of the word "Securities" on its face or in such other form as the Board may approve. The Board shall provide for the custody of each Seal and no Seal shall be used without the authority of the Board or of a committee of the Board authorised by the Board in that behalf. Subject as otherwise provided in these Articles, any instrument to which a Seal is affixed shall be signed autographically by one Director or by such other person (including a Director) or persons as the Board may appoint, either generally or in any particular case, save that as regards any certificates for shares or debentures or other securities of the Company the Board may by resolution determine that such signatures or either of them shall be dispensed with or affixed by some method or system of mechanical signature. Every instrument executed in manner provided by this Article 132 shall be deemed to be sealed and executed with the authority of the Board previously given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Where the Company has a Seal for use abroad, the Board may by writing under the Seal appoint any agent or committee abroad to be the duly authorised agent of the Company for the purpose of affixing and using such Seal and the Board may impose restrictions on the use thereof as may be thought fit. Wherever in these Articles reference is made to the Seal, the reference shall, when and so far as may be applicable, be deemed to include any such other Seal as aforesaid.

<u>AUTHENTICATION OF DOCUMENTS</u>

133. Any Director or the Secretary or any person appointed by the Board for the purpose may authenticate any documents affecting the constitution of the Company and any resolution passed by the Company or the Board or any committee, and any books, records, documents and accounts relating to the business of the Company, and to certify copies thereof or extracts therefrom as true copies or extracts, and if any books, records, documents or accounts are elsewhere than at the Office or the head office the local manager or other officer of the Company having the custody thereof shall be deemed to be a person so appointed by the Board. A document purporting to be a copy of a resolution, or an extract from the minutes of a meeting, of the Company or of the Board or any committee which is so certified shall be conclusive evidence in favour of all persons dealing with the Company upon the faith thereof that such resolution has been duly passed or, as the case may be, that such minutes or extract is a true and accurate record of proceedings at a duly constituted meeting.

<u>DESTRUCTION OF DOCUMENTS</u>

134. (1) The Company shall be entitled to destroy the following documents at the following times:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 share certificate which has been cancelled at any time after the expiry of one (1) year from
 the date of such cancellation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 dividend mandate or any variation or cancellation thereof or any notification of change of
 name or address at any time after the expiry of two (2) years from the date such mandate
 variation cancellation or notification was recorded by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 instrument of transfer of shares which has been registered at any time after the expiry of
 seven (7) years from the date of registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 allotment letters after the expiry of seven (7) years from the date of issue thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) copies
 of powers of attorney, grants of probate and letters of administration at any time after
 the expiry of seven (7) years after the account to which the relevant power of attorney,
 grant of probate or letters of administration related has been closed;

and it shall conclusively be presumed in favour of the Company that every entry in the Register purporting to be made on the basis of any such documents so destroyed was duly and properly made and every share certificate so destroyed was a valid certificate duly and properly cancelled and that every instrument of transfer so destroyed was a valid and effective instrument duly and properly registered and that every other document destroyed hereunder was a valid and effective document in accordance with the recorded particulars thereof in the books or records of the Company. Provided always that: (1) the foregoing provisions of this Article 134 shall apply only to the destruction of a document in good faith and without express notice to the Company that the preservation of such document was relevant to a claim; (2) nothing contained in this Article 134 shall be construed as imposing upon the Company any liability in respect of the destruction of any such document earlier than as aforesaid or in any case where the conditions of proviso (1) above are not fulfilled; and (3) references in this Article 134 to the destruction of any document include references to its disposal in any manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Notwithstanding any provision contained in these Articles, the Directors may, if permitted by applicable law, authorise the destruction of documents set out in sub-paragraphs (a) to (e) of paragraph (1) of this Article 134 and any other documents in relation to share registration which have been microfilmed or electronically stored by the Company or by the share registrar on its behalf provided always that this Article shall apply only to the destruction of a document in good faith and without express notice to the Company and its share registrar that the preservation of such document was relevant to a claim.

<u>DIVIDENDS AND OTHER PAYMENTS</u>

135. Subject to the Act, the Board may from time to time declare dividends in any currency to be paid to the Members.

 

136. Dividends may be declared and paid out of the profits of the Company, realised or unrealised, or from any reserve set aside from profits which the Directors determine is no longer needed. The Board may also declare and pay dividends out of share premium account or any other fund or account which can be authorised for this purpose in accordance with the Act.

137. Except in so far as the rights attaching to, or the terms of issue of, any share otherwise provide:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 dividends shall be declared and paid according to the amounts paid up on the shares in respect
 of which the dividend is paid, but no amount paid up on a share in advance of calls shall
 be treated for the purposes of this Article as paid up on the share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 dividends shall be apportioned and paid pro rata according to the amounts paid up on the
 shares during any portion or portions of the period in respect of which the dividend is paid.

138. The Board may from time to time pay to the Members such interim dividends as appear to the Board to be justified by the profits of the Company and in particular (but without prejudice to the generality of the foregoing) if at any time the share capital of the Company is divided into different classes, the Board may pay such interim dividends in respect of those shares in the capital of the Company which confer on the holders thereof deferred or non-preferential rights as well as in respect of those shares which confer on the holders thereof preferential rights with regard to dividend and provided that the Board acts bona fide the Board shall not incur any responsibility to the holders of shares conferring any preference for any damage that they may suffer by reason of the payment of an interim dividend on any shares having deferred or non-preferential rights and may also pay any fixed dividend which is payable on any shares of the Company half-yearly or on any other dates, whenever such profits, in the opinion of the Board, justifies such payment.

139. The Board may deduct from any dividend or other moneys payable to a Member by the Company on or in respect of any shares all sums of money (if any) presently payable by him to the Company on account of calls or otherwise.

140. No dividend or other moneys payable by the Company on or in respect of any share shall bear interest against the Company.

141. Any dividend, interest or other sum payable in cash to the holder of shares may be paid by cheque or warrant sent through the post addressed to the holder at his registered address or, in the case of joint holders, addressed to the holder whose name stands first in the Register in respect of the shares at his address as appearing in the Register or addressed to such person and at such address as the holder or joint holders may in writing direct. Every such cheque or warrant shall, unless the holder or joint holders otherwise direct, be made payable to the order of the holder or, in the case of joint holders, to the order of the holder whose name stands first on the Register in respect of such shares, and shall be sent at his or their risk and payment of the cheque or warrant by the bank on which it is drawn shall constitute a good discharge to the Company notwithstanding that it may subsequently appear that the same has been stolen or that any endorsement thereon has been forged. Any one of two or more joint holders may give effectual receipts for any dividends or other moneys payable or property distributable in respect of the shares held by such joint holders.

142. All dividends or bonuses unclaimed for one (1) year after having been declared may be invested or otherwise made use of by the Board for the benefit of the Company until claimed. Any dividend or bonuses unclaimed after a period of six (6) years from the date of declaration shall be forfeited and shall revert to the Company. The payment by the Board of any unclaimed dividend or other sums payable on or in respect of a share into a separate account shall not constitute the Company a trustee in respect thereof.

143. Whenever the Board has resolved that a dividend be paid or declared, the Board may further resolve that such dividend be satisfied wholly or in part by the distribution of specific assets of any kind and in particular of paid up shares, debentures or warrants to subscribe securities of the Company or any other company, or in any one or more of such ways, and where any difficulty arises in regard to the distribution the Board may settle the same as it thinks expedient, and in particular may issue certificates in respect of fractions of shares, disregard fractional entitlements or round the same up or down, and may fix the value for distribution of such specific assets, or any part thereof, and may determine that cash payments shall be made to any Members upon the basis of the value so fixed in order to adjust the rights of all parties, and may vest any such specific assets in trustees as may seem expedient to the Board and may appoint any person to sign any requisite instruments of transfer and other documents on behalf of the persons entitled to the dividend, and such appointment shall be effective and binding on the Members. The Board may resolve that no such assets shall be made available to Members with registered addresses in any particular territory or territories where, in the absence of a registration statement or other special formalities, such distribution of assets would or might, in the opinion of the Board, be unlawful or impracticable and in such event the only entitlement of the Members aforesaid shall be to receive cash payments as aforesaid. Members affected as a result of the foregoing sentence shall not be or be deemed to be a separate class of Members for any purpose whatsoever.

144. (1) Whenever the Board has resolved that a dividend be paid or declared on any class of the share capital of the Company, the Board may further resolve either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that
 such dividend be satisfied wholly or in part in the form of an allotment of shares credited
 as fully paid up, provided that the Members entitled thereto will be entitled to elect to
 receive such dividend (or part thereof if the Board so determines) in cash in lieu of such
 allotment. In such case, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 basis of any such allotment shall be determined by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Board, after determining the basis of allotment, shall give not less than ten (10) days'
 Notice to the holders of the relevant shares of the right of election accorded to them and
 shall send with such notice forms of election and specify the procedure to be followed and
 the place at which and the latest date and time by which duly completed forms of election
 must be lodged in order to be effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 right of election may be exercised in respect of the whole or part of that portion of the
 dividend in respect of which the right of election has been accorded; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 dividend (or that part of the dividend to be satisfied by the allotment of shares as aforesaid)
 shall not be payable in cash on shares in respect whereof the cash election has not been
 duly exercised ("the non-elected shares") and in satisfaction thereof shares
 of the relevant class shall be allotted credited as fully paid up to the holders of the non-elected
 shares on the basis of allotment determined as aforesaid and for such purpose the Board shall
 capitalise and apply out of any part of the undivided profits of the Company (including profits
 carried and standing to the credit of any reserves or other special account, share premium
 account, capital redemption reserve other than the Subscription Rights Reserve) as the Board
 may determine, such sum as may be required to pay up in full the appropriate number of shares
 of the relevant class for allotment and distribution to and amongst the holders of the non-elected
 shares on such basis; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that
 the Members entitled to such dividend shall be entitled to elect to receive an allotment
 of shares credited as fully paid up in lieu of the whole or such part of the dividend as
 the Board may think fit. In such case, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 basis of any such allotment shall be determined by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Board, after determining the basis of allotment, shall give not less than ten (10) days'
 Notice to the holders of the relevant shares of the right of election accorded to them and
 shall send with such notice forms of election and specify the procedure to be followed and
 the place at which and the latest date and time by which duly completed forms of election
 must be lodged in order to be effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 right of election may be exercised in respect of the whole or part of that portion of the
 dividend in respect of which the right of election has been accorded; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 dividend (or that part of the dividend in respect of which a right of election has been accorded)
 shall not be payable in cash on shares in respect whereof the share election has been duly
 exercised ("the elected shares") and in lieu thereof shares of the relevant class
 shall be allotted credited as fully paid up to the holders of the elected shares on the basis
 of allotment determined as aforesaid and for such purpose the Board shall capitalise and
 apply out of any part of the undivided profits of the Company (including profits carried
 and standing to the credit of any reserves or other special account, share premium account,
 capital redemption reserve other than the Subscription Rights Reserve) as the Board may determine,
 such sum as may be required to pay up in full the appropriate number of shares of the relevant
 class for allotment and distribution to and amongst the holders of the elected shares on
 such basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) (a) The
shares allotted pursuant to the provisions of paragraph (1) of this Article 144 shall rank *pari passu* in all respects with shares
of the same class (if any) then in issue save only as regards participation in the relevant dividend or in any other distributions, bonuses
or rights paid, made, declared or announced prior to or contemporaneously with the payment or declaration of the relevant dividend unless,
contemporaneously with the announcement by the Board of their proposal to apply the provisions of sub-paragraph (a) or (b) of paragraph
(1) of this Article 144 in relation to the relevant dividend or contemporaneously with their announcement of the distribution, bonus
or rights in question, the Board shall specify that the shares to be allotted pursuant to the provisions of paragraph (1) of this Article
shall rank for participation in such distribution, bonus or rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Board may do all acts and things considered necessary or expedient to give effect to any
 capitalisation pursuant to the provisions of paragraph (1) of this Article 144, with full
 power to the Board to make such provisions as it thinks fit in the case of shares becoming
 distributable in fractions (including provisions whereby, in whole or in part, fractional
 entitlements are aggregated and sold and the net proceeds distributed to those entitled,
 or are disregarded or rounded up or down or whereby the benefit of fractional entitlements
 accrues to the Company rather than to the Members concerned). The Board may authorise any
 person to enter into on behalf of all Members interested, an agreement with the Company providing
 for such capitalisation and matters incidental thereto and any agreement made pursuant to
 such authority shall be effective and binding on all concerned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Board may determine and resolve in respect of any one particular dividend of the Company that notwithstanding the provisions of paragraph (1) of this Article 144 a dividend may be satisfied wholly in the form of an allotment of shares credited as fully paid up without offering any right to shareholders to elect to receive such dividend in cash in lieu of such allotment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Board may on any occasion determine that rights of election and the allotment of shares under paragraph (1) of this Article 144 shall not be made available or made to any shareholders with registered addresses in any territory where, in the absence of a registration statement or other special formalities, the circulation of an offer of such rights of election or the allotment of shares would or might, in the opinion of the Board, be unlawful or impracticable, and in such event the provisions aforesaid shall be read and construed subject to such determination. Members affected as a result of the foregoing sentence shall not be or be deemed to be a separate class of Members for any purpose whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any resolution declaring a dividend on shares of any class by the Board, may specify that the same shall be payable or distributable to the persons registered as the holders of such shares at the close of business on a particular date, notwithstanding that it may be a date prior to that on which the resolution is passed, and thereupon the dividend shall be payable or distributable to them in accordance with their respective holdings so registered, but without prejudice to the rights inter se in respect of such dividend of transferors and transferees of any such shares. The provisions of this Article shall *mutatis mutandis* apply to bonuses, capitalisation issues, distributions of realised capital profits or offers or grants made by the Company to the Members.

<u>RESERVES</u>

145. (1) The Board shall establish an account to be called the share premium account and shall carry to the credit of such account from time to time a sum equal to the amount or value of the premium paid on the issue of any share in the Company. Unless otherwise provided by the provisions of these Articles, the Board may apply the share premium account in any manner permitted by the Act. The Company shall at all times comply with the provisions of the Act in relation to the share premium account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Before recommending any dividend, the Board may set aside out of the profits of the Company such sums as it determines as reserves which shall, at the discretion of the Board, be applicable for any purpose to which the profits of the Company may be properly applied and pending such application may, also at such discretion, either be employed in the business of the Company or be invested in such investments as the Board may from time to time think fit and so that it shall not be necessary to keep any investments constituting the reserve or reserves separate or distinct from any other investments of the Company. The Board may also without placing the same to reserve carry forward any profits which it may think prudent not to distribute.

<u>CAPITALISATION</u>

146. The Company may, upon the recommendation of the Board, at any time and from time to time pass an ordinary resolution to the effect that it is desirable to capitalise all or any part of any amount for the time being standing to the credit of any reserve or fund (including a share premium account and capital redemption reserve and the profit and loss account) whether or not the same is available for distribution and accordingly that such amount be set free for distribution among the Members or any class of Members who would be entitled thereto if it were distributed by way of dividend and in the same proportions, on the basis that the same is not paid in cash but is applied either in or towards paying up the amounts for the time being unpaid on any shares in the Company held by such Members respectively or in paying up in full unissued shares, debentures or other obligations of the Company, to be allotted and distributed credited as fully paid up among such Members, or partly in one way and partly in the other, and the Board shall give effect to such resolution provided that, for the purposes of this Article 146, a share premium account and any capital redemption reserve or fund representing unrealised profits, may be applied only in paying up in full unissued shares of the Company to be allotted to such Members credited as fully paid.

147. The Board may settle, as it considers appropriate, any difficulty arising in regard to any distribution and in particular may issue certificates in respect of fractions of shares or authorise any person to sell and transfer any fractions or may resolve that the distribution should be as nearly as may be practicable in the correct proportion but not exactly so or may ignore fractions altogether, and may determine that cash payments shall be made to any Members in order to adjust the rights of all parties, as may seem expedient to the Board. The Board may appoint any person to sign on behalf of the persons entitled to participate in the distribution any contract necessary or desirable for giving effect thereto and such appointment shall be effective and binding upon the Members.

<u>SUBSCRIPTION RIGHTS RESERVE</u>

148. The following provisions shall have effect to the extent that they are not prohibited by and are in compliance with the Act:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If, so long as any of the rights attached to any warrants issued by the Company to subscribe for shares of the Company shall remain exercisable, the Company does any act or engages in any transaction which, as a result of any adjustments to the subscription price in accordance with the provisions of the conditions of the warrants, would reduce the subscription price to below the par value of a share, then the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as
 from the date of such act or transaction the Company shall establish and thereafter (subject
 as provided in this Article 148) maintain in accordance with the provisions of this Article
 148 a reserve (the "Subscription Rights Reserve") the amount of which shall at
 no time be less than the sum which for the time being would be required to be capitalised
 and applied in paying up in full the nominal amount of the additional shares required to
 be issued and allotted credited as fully paid pursuant to sub-paragraph (c) below on the
 exercise in full of all the subscription rights outstanding and shall apply the Subscription
 Rights Reserve in paying up such additional shares in full as and when the same are allotted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Subscription Rights Reserve shall not be used for any purpose other than that specified above
 unless all other reserves of the Company (other than share premium account) have been extinguished
 and will then only be used to make good losses of the Company if and so far as is required
 by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) upon
 the exercise of all or any of the subscription rights represented by any warrant, the relevant
 subscription rights shall be exercisable in respect of a nominal amount of shares equal to
 the amount in cash which the holder of such warrant is required to pay on exercise of the
 subscription rights represented thereby (or, as the case may be the relevant portion thereof
 in the event of a partial exercise of the subscription rights) and, in addition, there shall
 be allotted in respect of such subscription rights to the exercising warrantholder, credited
 as fully paid, such additional nominal amount of shares as is equal to the difference between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 said amount in cash which the holder of such warrant is required to pay on exercise of the
 subscription rights represented thereby (or, as the case may be, the relevant portion thereof
 in the event of a partial exercise of the subscription rights); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 nominal amount of shares in respect of which such subscription rights would have been exercisable
 having regard to the provisions of the conditions of the warrants, had it been possible for
 such subscription rights to represent the right to subscribe for shares at less than par
 and immediately upon such exercise so much of the sum standing to the credit of the Subscription
 Rights Reserve as is required to pay up in full such additional nominal amount of shares
 shall be capitalised and applied in paying up in full such additional nominal amount of shares
 which shall forthwith be allotted credited as fully paid to the exercising warrantholders;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if,
 upon the exercise of the subscription rights represented by any warrant, the amount standing
 to the credit of the Subscription Rights Reserve is not sufficient to pay up in full such
 additional nominal amount of shares equal to such difference as aforesaid to which the exercising
 warrantholder is entitled, the Board shall apply any profits or reserves then or thereafter
 becoming available (including, to the extent permitted by law, share premium account) for
 such purpose until such additional nominal amount of shares is paid up and allotted as aforesaid
 and until then no dividend or other distribution shall be paid or made on the fully paid
 shares of the Company then in issue. Pending such payment and allotment, the exercising warrantholder
 shall be issued by the Company with a certificate evidencing his right to the allotment of
 such additional nominal amount of shares. The rights represented by any such certificate
 shall be in registered form and shall be transferable in whole or in part in units of one
 share in the like manner as the shares for the time being are transferable, and the Company
 shall make such arrangements in relation to the maintenance of a register therefor and other
 matters in relation thereto as the Board may think fit and adequate particulars thereof shall
 be made known to each relevant exercising warrantholder upon the issue of such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Shares allotted pursuant to the provisions of this Article shall rank *pari passu* in all respects with the other shares allotted on the relevant exercise of the subscription rights represented by the warrant concerned. Notwithstanding anything contained in paragraph (1) of this Article, no fraction of any share shall be allotted on exercise of the subscription rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The provision of this Article as to the establishment and maintenance of the Subscription Rights Reserve shall not be altered or added to in any way which would vary or abrogate, or which would have the effect of varying or abrogating the provisions for the benefit of any warrantholder or class of warrantholders under this Article without the sanction of a special resolution of such warrantholders or class of warrantholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A certificate or report by the auditors for the time being of the Company as to whether or not the Subscription Rights Reserve is required to be established and maintained and if so the amount thereof so required to be established and maintained, as to the purposes for which the Subscription Rights Reserve has been used, as to the extent to which it has been used to make good losses of the Company, as to the additional nominal amount of shares required to be allotted to exercising warrantholders credited as fully paid, and as to any other matter concerning the Subscription Rights Reserve shall (in the absence of manifest error) be conclusive and binding upon the Company and all warrantholders and shareholders.

<u>ACCOUNTING RECORDS</u>

149. The Board shall cause true accounts to be kept of the sums of money received and expended by the Company, and the matters in respect of which such receipt and expenditure take place, and of the property, assets, credits and liabilities of the Company and of all other matters required by the Act or necessary to give a true and fair view of the Company's affairs and to explain its transactions.

150. The accounting records shall be kept at the Office or, at such other place or places as the Board decides and shall always be open to inspection by the Directors. No Member (other than a Director) shall have any right of inspecting any accounting record or book or document of the Company except as conferred by law or authorised by the Board or the Company in general meeting.

151. Subject to Article 152, a printed copy of the Directors' report, accompanied by the balance sheet and profit and loss account, including every document required by law to be annexed thereto, made up to the end of the applicable financial year and containing a summary of the assets and liabilities of the Company under convenient heads and a statement of income and expenditure, together with a copy of the Auditors' report, shall be sent to each person entitled thereto in any manner set out in Article 160 every year. The Directors shall have the discretion to lay these documents before the Company at any annual general meeting held in accordance with Article 57 in which case, the documents shall be sent to each person entitled thereto at least ten (10) days before the date of the general meeting. This Article shall not require a copy of those documents to be sent to any person whose address the Company is not aware or to more than one of the joint holders of any shares or debentures.

152. Subject to due compliance with all applicable Statutes, rules and regulations, including, without limitation, the rules and regulations of the Designated Stock Exchange, and to obtaining all necessary consents, if any, required thereunder, the requirements of Article 151 shall be deemed satisfied in relation to any person by sending to the person in any manner not prohibited by the Statutes, a summarised financial statements derived from the Company's annual accounts and the directors' report which shall be in the form and containing the information required by applicable laws and regulations, provided that any person who is otherwise entitled to the annual financial statements of the Company and the directors' report thereon may, if he so requires by notice in writing served on the Company, demand that the Company sends to him, in addition to a summarised financial statements, a complete printed copy of the Company's annual financial statement and the directors' report thereon.

153. The requirement to send to a person referred to in Article 151 the documents referred to in that article or a summary financial report in accordance with Article 152 shall be deemed satisfied where, in accordance with all applicable Statutes, rules and regulations, including, without limitation, the rules and regulations of the Designated Stock Exchange, the Company publishes copies of the documents referred to in Article 151 and, if applicable, a summary financial report complying with Article 152, by placing it on the Company's website or in any other manner (including by sending any form of electronic communication) permitted by Article 160.

<u>AUDIT</u>

154. Subject to applicable law and rules and regulations of the Designated Stock Exchange, the Board shall appoint an Auditor to audit the accounts of the Company and such auditor shall hold office until removed from office by a resolution of the Directors. Such auditor may be a Member but no Director or officer or employee of the Company shall, during his continuance in office, be eligible to act as an Auditor.

155. Subject to the Act the accounts of the Company shall be audited at least once in every year.

156. The remuneration of the Auditor shall be determine by the Audit Committee or, in the absence of such Audit Committee, by the Board.

157. The Board may remove the Auditor at any time before the expiration of his term of office and may by resolution appoint another Auditor in his stead.

158. The Auditor shall at all reasonable times have access to all books kept by the Company and to all accounts and vouchers relating thereto; and he may call on the Directors or officers of the Company for any information in their possession relating to the books or affairs of the Company.

159. The statement of income and expenditure and the balance sheet provided for by these Articles shall be examined by the Auditor and compared by him with the books, accounts and vouchers relating thereto; and he shall make a written report thereon stating whether such statement and balance sheet are drawn up so as to present fairly the financial position of the Company and the results of its operations for the period under review and, in case information shall have been called for from Directors or officers of the Company, whether the same has been furnished and has been satisfactory. The financial statements of the Company shall be audited by the Auditor in accordance with generally accepted auditing standards. The Auditor shall make a written report thereon in accordance with generally accepted auditing standards and the report of the Auditor shall be submitted to the Audit Committee. The generally accepted auditing standards referred to herein may be those of a country or jurisdiction other than the Cayman Islands. If so, the financial statements and the report of the Auditor should disclose this fact and name such country or jurisdiction.

<u>NOTICES</u>

160. Any Notice or document, whether or not, to be given or issued under these Articles from the Company to a Member shall be in writing or by cable, telex or facsimile transmission message or other form of electronic transmission or electronic communication and any such Notice and document may be served or delivered by the Company on or to any Member either (i) personally or (ii) by sending it through the post in a prepaid envelope addressed to such Member at his registered address as appearing in the Register or at any other address supplied by him to the Company for the purpose or (iii) by transmitting it to any such address or transmitting it to any telex or facsimile transmission number or electronic number or electronic address or website supplied by him to the Company for the giving of Notice or documents to him or which the person transmitting the notice or document reasonably and bona fide believes at the relevant time will result in the Notice or document being duly received by the Member or (iv) may also be served by advertisement in appropriate newspapers in accordance with the requirements of the Designated Stock Exchange or (v) to the extent permitted by all applicable Statutes, rules and regulations, including, without limitation, the rules and regulations of the Designed Stock Exchange, by placing it on the Company's website. In the case of joint holders of a share all notices shall be given to that one of the joint holders whose name stands first in the Register and notice so given shall be deemed a sufficient service on or delivery to all the joint holders.

161. Any Notice or other document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 served or delivered by post, shall where appropriate be sent by airmail and shall be deemed
 to have been served or delivered on the day following that on which the envelope containing
 the same, properly prepaid and addressed, is put into the post; in proving such service or
 delivery it shall be sufficient to prove that the envelope or wrapper containing the notice
 or document was properly addressed and put into the post and a certificate in writing signed
 by the Secretary or other officer of the Company or other person appointed by the Board that
 the envelope or wrapper containing the Notice or other document was so addressed and put
 into the post shall be conclusive evidence thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 sent by electronic communication, shall be deemed to be given on the day on which it is transmitted
 from the server of the Company or its agent. A Notice placed on the Company's website
 is deemed given by the Company to a Member on the day it is placed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if
 served or delivered in any other manner contemplated by these Articles, shall be deemed to
 have been served or delivered at the time of personal service or delivery or, as the case
 may be, at the time of the relevant despatch or transmission or publication; and in proving
 such service or delivery a certificate in writing signed by the Secretary or other officer
 of the Company or other person appointed by the Board as to the act and time of such service,
 delivery, despatch or transmission or publication shall be conclusive evidence thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) may
 be given to a Member in the English language or such other language as may be approved by
 the Directors, subject to due compliance with all applicable Statutes, rules and regulations.

162. (1) Any Notice or other document delivered or sent by post to or left at the registered address of any Member in pursuance of these Articles shall, notwithstanding that such Member is then dead or bankrupt or that any other event has occurred, and whether or not the Company has notice of the death or bankruptcy or other event, be deemed to have been duly served or delivered in respect of any share registered in the name of such Member as sole or joint holder unless his name shall, at the time of the service or delivery of the Notice or document, have been removed from the Register as the holder of the share, and such service or delivery shall for all purposes be deemed a sufficient service or delivery of such Notice or document on all persons interested (whether jointly with or as claiming through or under him) in the share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A Notice may be given by the Company to the person entitled to a share in consequence of the death, mental disorder or bankruptcy of a Member by sending it through the post in a prepaid letter, envelope or wrapper addressed to him by name, or by the title of representative of the deceased, or trustee of the bankrupt, or by any like description, at the address, if any, supplied for the purpose by the person claiming to be so entitled, or (until such an address has been so supplied) by giving the notice in any manner in which the same might have been given if the death, mental disorder or bankruptcy had not occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any person who by operation of law, transfer or other means whatsoever shall become entitled to any share shall be bound by every Notice in respect of such share which prior to his name and address being entered on the Register shall have been duly given to the person from whom he derives his title to such share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Every Member or a person who is entitled to receive notice from the Company under the provisions of the Statutes or these Articles may register with the Company an electronic address to which notices can be served upon him.

<u>SIGNATURES</u>

163. For the purposes of these Articles, a cable or telex or facsimile or electronic transmission message purporting to come from a holder of shares or, as the case may be, a Director, or, in the case of a corporation which is a holder of shares from a director or the secretary thereof or a duly appointed attorney or duly authorised representative thereof for it and on its behalf, shall in the absence of express evidence to the contrary available to the person relying thereon at the relevant time be deemed to be a document or instrument in writing signed by such holder or Director in the terms in which it is received. The signature to any notice or document to be given by the Company may be written, printed or made electronically.

<u>WINDING UP</u>

164. (1) Subject to Article 164(2), the Board shall have power in the name and on behalf of the Company to present a petition to the court for the Company to be wound up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Unless otherwise provided by the Ac, a resolution that the Company be wound up by the court or be wound up voluntarily shall be a special resolution.

165. (1) Subject to any special rights, privileges or restrictions as to the distribution of available surplus assets on liquidation for the time being attached to any class or classes of shares (i) if the Company shall be wound up and the assets available for distribution amongst the Members shall be more than sufficient to repay the whole of the capital paid up at the commencement of the winding up, the excess shall be distributed *pari passu* amongst such members in proportion to the amount paid up on the shares held by them respectively and (ii) if the Company shall be wound up and the assets available for distribution amongst the Members as such shall be insufficient to repay the whole of the paid-up capital such assets shall be distributed so that, a nearly as may be, the losses shall be borne by the Members in proportion to the capital paid up, or which ought to have been paid up, at the commencement of the winding up on the shares held by them respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Company shall be wound up (whether the liquidation is voluntary or by the court) the liquidator may, with the authority of a special resolution and any other sanction required by the Act, divide among the Members in specie or kind the whole or any part of the assets of the Company and whether or not the assets shall consist of properties of one kind or shall consist of properties to be divided as aforesaid of different kinds, and may for such purpose set such value as he deems fair upon any one or more class or classes of property and may determine how such division shall be carried out as between the Members or different classes of Members. The liquidator may, with the like authority, vest any part of the assets in trustees upon such trusts for the benefit of the Members as the liquidator with the like authority shall think fit, and the liquidation of the Company may be closed and the Company dissolved, but so that no contributory shall be compelled to accept any shares or other property in respect of which there is a liability.

<u>INDEMNITY</u>

166. (1) Every Director (including for the purposes of this Article any alternate Director appointed pursuant to the provisions of these Articles), Secretary, or other officer for the time being and from time to time of the Company (but not including the Auditor) and the personal representatives of the same (each an "Indemnified Person") shall be indemnified and secured harmless out of the assets and profits of the Company from and against all actions, proceeding, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such Indemnified Person, other than by reason of such Indemnified Person's own dishonesty, wilful default or fraud, in or about the conduct of the Company's business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such Indemnified Person in defending (whether successfully or otherwise) any civil proceedings concerning the Company or its affairs in any court whether in the Cayman Islands or elsewhere.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Each Member agrees to waive any claim or right of action he might have, whether individually or by or in the right of the Company, against any Director on account of any action taken by such Director, or the failure of such Director to take any action in the performance of his duties with or for the Company; PROVIDED THAT such waiver shall not extend to any matter in respect of any fraud, willful default or dishonesty which may attach to such Director.

<u>FINANCIAL YEAR</u>

167. Unless otherwise determined by the Directors, the financial year of the Company shall end on the 31<sup>st</sup> of May in each year.

<u>AMENDMENT TO MEMORANDUM AND ARTICLES OF ASSOCIATION</u>

<u>AND NAME OF COMPANY</u>

168. No Article shall be rescinded, altered or amended and no new Article shall be made until the same has been approved by a special resolution of the Members. A special resolution shall be required to alter the provisions of the Memorandum of Association or to change the name of the Company.

 ****

<u>INFORMATION</u>

169. No Member shall be entitled to require discovery of or any information respecting any detail of the Company's trading or any matter which is or may be in the nature of a trade secret or secret process which may relate to the conduct of the business of the Company and which in the opinion of the Directors it will be inexpedient in the interests of the members of the Company to communicate to the public.

## Exhibit 4.1

**Exhibit 4.1**

**Share Certificate**

Certificate Number Number of Shares <br>

**Center Holdings Inc.**

**Incorporated in the Cayman Islands under the Companies Act (as Revised)**

**Authorized Share Capital is US$100 divided into**

**1,000,000,000 Ordinary Shares of a par value of US$0.0000001 each;**

This certifies that [Name] of [Address] is the registered holder of [Number] Ordinary Shares fully paid and non-assessable, subject to the Memorandum and Articles of Association of the Company.

**GIVEN under the Common Seal of the said Company this [date].**

The Common Seal of the Company was hereunto affixed.

Director

## Exhibit 10.2

**Exhibit 10.2**

[Freebit MVNO Pack] Service Agreement

Freebit Inc (hereinafter referred to as "Party A") and Zero Mobile Inc (hereinafter referred to as "Party B") hereby enter into the following usage agreement (hereinafter referred to as "Agreement").

Chapter 1. General

Article 1 (Purpose of Agreement)

In accordance with the terms and conditions of this agreement, Party A shall provide the telecommunications services provided by Party B (as defined in Article 9) to Party B. The telecommunications services provided by Party A to Party B are referred to as "the Services". The specifications separately provided by Party A shall be deemed to be part of this agreement.

Article 2 (Scope)

Matters not specified in this Agreement shall be determined by the Telecommunications Business Act (Act No. 86 of 1984) and other applicable laws and regulations, as well as through consultation between Party A and Party B.

Article 3 (Carrier Rights)

If there are any changes in the content of telecommunications services received from the carrier, Party B shall notify Party A immediately upon becoming aware of such changes.

Article 4 (Term Definitions)

Terms used in this Agreement shall be defined as follows:

Telecommunications carrier:

Persons who have received registration under Article 9 of the Telecommunications Business Law for operating a telecommunications business, and persons who have submitted notification under the provisions of Article 16 of the same law

Contracted business

A telecommunications carrier that has concluded an agreement with the first party and is engaged in the telecommunications business

Telecommunications equipment

Machines, appliances, lines, and other electrical equipment for conducting telecommunications

Wireless data communication

Wireless data communication provided by a telecommunications carrier

Terminal equipment

Communication devices prepared by the second party or user in order to use this service

SIM Card

An IC card that can store user identification numbers and other information, and is loaned by Party A for the provision of this service.

Black SIM

SIM card that has been registered with a phone number and has been activated and set up with a plan

Half Black SIM OTA

SIM card that has been registered with a phone number but not activated or set up with a plan

Wireless data communication service

Communication services provided by NTT Docomo, Inc. (hereinafter referred to as "Docomo")

Services provided by Party B

MVO service provided by Party B using this service

Users

Persons who have been approved to use the services provided by Party B

Bandwidth contract

The bandwidth contract for each service plan that Party B concludes with Party A

SIM contract

Individual contracts for SIM cards for each user that Party B concludes with Party A

Account

A combination of letters and numbers corresponding to the service group name set by Party B for the purpose of identifying users, and assigned to users in order for them to use Party B's service.

Personal Information

All information about individual users that includes information that can be used to

identify the user

User Connection Information

Of the personal information, all information that is stored on the server of Party A due to the user's use of the service, such as the user's use of the service, questionnaire information, connection time, connection destination information, and preference data.

Universal Service Fee

In order to cover the charges for securing the provision of basic telecommunications services as stipulated in the Telecommunications Business Law (Law No. 86 of 1984), the charges set by the Party A based on the amount calculated in accordance with the Rules for Calculating Grants and Charges for the Provision of Basic Telecommunications Services (Ministry of Internal Affairs and Communications Ordinance No. 64 of 2002).

Amount equivalent to sales tax

The amount of consumption tax to be levied in accordance with the provisions of the Consumption Tax Act (Act No. 108 of 1988) and the amount of local consumption tax to be levied in accordance with the provisions of the Local Tax Act (Act No. 226 of 1950)

Secondary sales

A sales method in which Party B provides Party B's provided services to other businesses, and those businesses provide MVNO services to third parties

Set sales

A sales method in which the seller sells the service and the terminal as a single package to the user.

Secondary distributor

Business operators engaged in secondary sales

Chapter 2. Service

Article 5. (Contract Unit)

Based on this agreement, Party A shall provide wireless data communication lines for each bandwidth (3G, LTE) as stipulated in Article 6 (Details of the Service), and the communication line bandwidth provided (hereinafter referred to as "bandwidth") shall be as stipulated in the specifications. In addition, a bandwidth contract shall be concluded for each bandwidth. Furthermore, Party A and Party B shall conclude a single SIM contract for each SIM card that is loaned to the user.

2. Party A will provide Party B with a SIM card by lending it to Party B.

3. Party B shall provide the SIM card provided by Party A to the user.

Article 6. (Details of the Services)

The details of this service are as specified in the specifications.

2. The main technical specifications for using this service are as described in the specifications.

Article 7. (Billing start date)

The date of commencement of billing for the bandwidth contract shall be the date of construction for each application for the bandwidth contract, and the date of construction shall be the date of commencement of billing for the bandwidth contract. Furthermore, Party A shall notify Party B of the date of commencement of billing.

2. The start date of SIM card contracts shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Black SIM - For SIM cards delivered through SIM distribution, the applicable start date shall be the day after delivery (or contact date if additional conditions apply)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Half Black SIM OTA - The start date shall be the day after SIM card setup is completed

Article 8. (Minimum Usage Period)

The Service's minimum usage period shall be one year from the contract period start date.

2. If this contract is cancelled within the minimum usage period stipulated in the previous paragraph, Party B shall pay the cancellation fee by the date stipulated by Party A, in accordance with the provisions of Article 31 (Obligation to Pay Cancellation Fee).

3. The bandwidth contract has a minimum usage bandwidth. The minimum usage bandwidth is 10Mbps. During the term of this contract, even if the bandwidth used by Party B for this service falls below the prescribed minimum usage bandwidth, Party B must pay the usage fee for the minimum usage bandwidth to Party A. This paragraph will be effective after the first bandwidth contract is concluded.

Article 9. (Service Area)

The service area for this service is the same as the communication area defined by Docomo (referred to as "the carrier" in this agreement). The communication area is as described in the specifications.

2. Wireless data communication is only possible when the connected terminal device is within the communication area. However, even within the communication area, communication may not be possible in places where radio waves do not penetrate well, such as indoors, underground parking lots, in the shade of buildings, tunnels, and mountainous areas.

Article 10. (Support)

Party A will provide Party B with technical support for the use of the service during the period of use of the service.

2. Party A is under no obligation to provide any technical services to users.

3. Party A is under no obligation to provide any technical information, except for general technical information regarding the use of the Service.

4. Party A makes no guarantees whatsoever regarding the usefulness or accuracy of the support provided in accordance with Clause 1.

Article 11. (Terminal equipment and SIM cards)

When users apply to use the Service, Party A shall investigate whether they qualify to use the Service and whether there are any credit concerns or restrictions based on their credit status, usage history, or information obtained from credit agencies. Furthermore, Party A or its designated companies may consult with credit agencies to obtain information for the purpose of making credit decisions, and the agency may record this inquiry. However, this shall not apply to minors or those using prepaid services.

(1) Their use of telecommunications services has been terminated due to payment delinquency (2) They have been found to be part of a telecommunications carrier designated as providing communications services in a way that could interfere with other carriers' operations

2. Party B shall provide SIM cards through its designated method. Party B shall complete necessary procedures within 7 days after receiving a SIM card application. The period of usage under this contract starts from the day following completion of these procedures, and Party B shall pay the specified fees to Party A.

3. After the procedures mentioned above, SIM cards can be replaced by notifying Party B, and the fees shall be paid to Party B.

4. Party B shall complete SIM card replacement procedures within one week of the request, shall properly dispose of the old SIM card, and shall hand over the new SIM card to users. When handing over SIM cards, Party B must confirm that the person receiving the card is either the contractor themselves or their legal representative. When Party B cannot confirm this, they must not hand over the SIM card. Furthermore, Party B must keep records of all SIM cards handed over and report this to Party A.

5. When the same SIM (OTA) data communication service plan has been in continuous use for the past billing period, Party B must pay 3,300 yen (excluding tax) per month for each SIM card. 6. The calculation method for continuous usage fees shall be determined separately.

Chapter 3. Contract Termination

Article 12. (Guarantees)

Party A shall request Party B to provide guarantees or additional guarantees in any of the following cases:

(1) When the creditworthiness or payment method becomes questionable

(2) When deemed necessary for guarantee-related procedures

(3) When Party A determines that guarantees are necessary, they shall be provided as specified. However, if Party B provides a portion of the guarantee or security deposit within the contract period, either all or part of the previously provided guarantee may be returned.

Article 13. (Bandwidth and SIM contracts)

Party B shall apply to Party A separately for each bandwidth or SIM card from the contact person specified in Article 54 (Contact Person) in accordance with the method separately specified by Party A, and a Bandwidth Agreement or SIM Agreement shall be formed in accordance with Article 14 (Acceptance of Application, etc.).

2. When applying for a Bandwidth Agreement and a SIM Agreement and starting a new service provided by Party B, Party B shall be responsible for the application procedures for the telecommunications business and other notifications to government agencies at its own expense.

Article 14. (Acceptance of Application)

When Party A accepts an application for a bandwidth contract, Party A shall notify the contact person specified in Article 54 (Contact Person) in writing as specified in Article 7 (Billing Commencement Date) of its acceptance.

2. Party A shall ship the SIM card to Party B or the User after the application for the SIM contract in the preceding paragraph. The delivery date of the SIM card shall be the day following three (3) calendar days from and including the date of shipment of the SIM card.

3. Party B agrees that upon application for and acceptance of the Bandwidth Agreement and SIM Agreement, Party B shall be deemed to have consented to the publication of its name, trademark, etc. on Party A's website and in various materials unless it notifies Party A to the contrary within 30 days of such acceptance.

Article 15. (Contract Changes)

When Party B requests changes based on prior notification, their subscription contract and service details may be changed. However, such changes shall be limited to what can be provided under normal operations, and changes that would significantly impact telecommunications facilities cannot be made.

Chapter 4. Assignment of rights and succession of status

Article 16. (Transfer of rights)

Party B may not assign its position under this Agreement to a third party.

Article 17. (Succession of Status)

2. In the event that Party B succeeds to the status of this Agreement pursuant to the preceding paragraph, Party B shall promptly notify the other party with documents proving that Party B has succeeded to the status of this Agreement.

3. The provisions of the preceding two paragraphs shall apply mutatis mutandis in the event of a corporate split of Party A or Party B.

Article 18. (Change of Trade Name)

Party A or Party B shall promptly notify the other party in writing of any change in its name, trade name, address or residence.

Chapter 5. Suspension of communication and termination of contract

Article 19. (Communication Suspension)

In the case of item 1, Party A may suspend communications pertaining to this Agreement for a specified period (in the case of item 1, until the fees, etc. are paid) if Party B falls under any of the following conditions.

(1) When the Service Charges, etc. are not paid after the due date, Party A may suspend the communications pertaining to this Agreement.

(1) When the User does not pay the Service Charges, etc. after the due date

(2) When the Service is used in an illegal or potentially illegal manner, or in a manner clearly offensive to public order and morals

(3) In addition to the preceding items, the User commits an act that violates any of the provisions of this Agreement and that causes or is likely to cause significant hindrance to Party A's performance of its business related to the Service or to its telecommunications facilities.

(4) When the User commits any of the prohibited acts set forth in Article 26.2 (Obligations of Party B with respect to Users). However, this shall be limited to communications related to said User or SIM Card.

(5) When the Subscriber refuses to undergo an inspection as specified in Article 11 (Terminal Equipment and SIM Card), Paragraph 1.

(6) When the User uses terminal equipment that is not deemed to conform to the technical standards stipulated in Article 11 (Terminal Equipment and SIM Cards), Paragraph 1

(7) When such communication falls under the cases specified in Article 31 of the Enforcement Regulations of the Telecommunications Business Law.

2. When Party A intends to suspend communications pursuant to the preceding paragraph, Party A shall notify Party B in advance of the reason, implementation date and period. However, this shall not apply in case of emergency or unavoidable circumstances.

Article 20. (Suspension or Change of Operation)

Party A may suspend provision of the Service for any of the following reasons

(1) When maintenance or construction of telecommunication facilities of Party A and MNO is unavoidable.

(2) When there is an unavoidable reason such as failure of telecommunication facilities installed by Party A and MNO.

(3) When Party A restricts telecommunications in accordance with the provisions of Article 22 (Restriction of Use in Emergency Situations, etc.)

(2) When Party A intends to suspend the service pursuant to the preceding paragraph, Party A shall notify Party B of the reason, the date of suspension, and the period of suspension in advance. However, this shall not apply in case of emergency.

Article 21. (Restriction of Communications)

In addition to the case under the provisions of the preceding Article, Party A may restrict the communication time or the use of communication in a certain area when communication is extremely congested.

2 In order to ensure fairness of use among users and smooth provision of the wireless data communication service, Party A may limit the speed or volume of data communications using this service, such as video playback and file exchange (P2P) applications.

3 Party A may disconnect the communication if the communication time exceeds a certain amount of time, or if the communication capacity exceeds a certain volume.

4 Party A and Party B may optimize communications to ensure fairness of use and smooth provision of the Service.

5 Party A may collect, analyze, and accumulate information related to communications in order to limit the communication time, etc. as stipulated in this Article.

6 Party A may detect a request to view a website or content identified by the child pornography address list provided by the Internet Safety Association and block such viewing by the SUPPLIER or users.

7 Party A shall take the measures described in the preceding paragraph only for information pertaining to child pornography that seriously infringes upon the rights of children, and only when it is recognized that the confidentiality of communications is not unreasonably infringed and illegality is prevented.

8 Party A may restrict the communication or reject the request for communication in the case that the communication falls under Items 6 and 7 of Paragraph 1 of Article 19 (Suspension of Communication) regarding the communication described in 1.

Article 22. (Restrictions on use in the event of an emergency)

In the event that Party A is unable to provide all of the Service due to the occurrence or threat of a natural disaster, incident, or other emergency, or due to the failure of telecommunications facilities installed by Party A or other unavoidable reasons, Party A shall take measures to restrict or suspend the Service in order to give priority to communications that are necessary for disaster prevention or relief, ensuring transportation, communications or power supply, or maintaining order, and communications that are urgent in the public interest. In such cases, Party A may take measures to restrict or suspend use of the Service in order to give priority to communications that are necessary for disaster prevention or relief, securing transportation, communication or power supply, or maintaining order, and communications that are urgent for the public interest. In such cases, Party A shall not be liable for such measures.

2. In order to prevent the spread of infringement of the rights of child victims through the distribution of child pornography on the Internet, Party A or the Internet Content Safety Association may take measures to restrict viewing of all or part of such websites without prior notice to Party B, based on the list of websites containing child pornography that have been compiled by the Association and deemed to be a serious infringement of children's rights. 3.

3 Party A shall take the measures set forth in the preceding paragraph only for information pertaining to child pornography that materially infringes upon the rights of children, and only when such measures do not unreasonably infringe upon the confidentiality of communications and the illegality is deemed to be prevented.

Article 23. (Termination of the Agreement by Party A)

Party A may terminate this Agreement, the Bandwidth Agreement, and the SIM Agreement if Party B has been suspended under Article 19 (Suspension of Communications), Paragraph 1, and if any of the items in Paragraph 1 of the same Article still apply after a reasonable period of time has passed.

2 Party A may terminate this Agreement, the Bandwidth Agreement, and the SIM Agreement immediately without suspending communications if any of the items in Paragraph 1 of Article 19 (Suspension of Communications) applies to Party B, and if such action is deemed to significantly interfere with the performance of Party A's business.

3 If Party A intends to terminate this Agreement, the Bandwidth Agreement, or the SIM Agreement pursuant to Paragraph 1 of this Article, Party A shall notify Party B to that effect in advance,

3 If Party A intends to terminate this Agreement, the Bandwidth Agreement, or the SIM Agreement pursuant to Paragraph 1 of this Article, it shall notify Party B to that effect in advance.

4 Party A may terminate this Agreement if it becomes aware of the filing of a petition for bankruptcy, civil rehabilitation, corporate reorganization, or any other similar event with respect to Party B.

5 Party A shall terminate this Agreement when it becomes aware that Party B's financial condition is clearly deteriorating and that it is objectively difficult for Party B to pay the fees for this Service or to fulfill its other obligations.

6 Party A may terminate this Agreement with respect to Party B if Party B is a member of a crime syndicate, a member of a crime syndicate, a group affiliated with a crime syndicate, a person affiliated with a crime syndicate, or any other antisocial force ("Bouryokudan etc.").

(hereinafter referred to as "Boryokudan, etc."), or that Boryokudan, etc. is a Boryokudan, etc.

Article 24. (Termination of Agreement by Party B)

If Party B intends to terminate this Agreement or the Bandwidth Agreement, it shall notify Party A in writing at least three (3) months prior to the intended termination date. If the provisions of Article 31 (Obligation to Pay Cancellation Fee) apply, Party A shall demand a cancellation fee, and Party B shall pay the cancellation fee by the date specified by Party A.

2 Party B shall be able to cancel only the SIM contract in units of one contract at the convenience of the user. If Party B wishes to cancel the SIM contract, Party B shall notify Party A of the cancellation by the method designated by Party A, and collect the SIM card in accordance with Party A's instructions. If the notice reaches Party A by the 25th of each month (the 24th in the case of February, or the previous business day in the case of Saturdays, Sundays, holidays, or holidays designated by Party A), it shall be treated as cancellation at the end of the current month. If the cancellation is received on or after the 25th (24th in the case of February, or the preceding business day in the case of Saturdays, Sundays, holidays, or holidays designated by Online Mall), it shall be treated as a cancellation at the end of the following month, and Paygate shall be obligated to pay monthly charges, etc. until the end of the following month.

3. Notwithstanding the preceding paragraph, Party B shall not be obligated to pay the monthly charge, etc. until the last day of the following month, during the period of one month from the billing start date after the acceptance of the application by Online Mall.

4 Party B may terminate this Agreement upon learning that Party A has filed for bankruptcy, civil rehabilitation, corporate reorganization, or any other similar event.

5 Party B may terminate this Agreement with respect to Party A if it becomes aware that Party A is or has been a Boryokudan (organized crime group), etc.

Chapter 6. (Obligation of Party A and Party B)

Article 25. (Repair or Restoration of Facilities)

If Party B finds any abnormality in the use of the Service, Party B shall confirm that there is no malfunction in its own facilities and shall request Party A to repair or restore such facilities.

Article 26. (Obligations of Party B with respect to Users)

Party B shall provide the User with terms and conditions, rules of use, etc. (hereinafter referred to as the "Rules of Use") that stipulate the terms and conditions of the Service, including the following and similar terms to those in Paragraph 2 of this Article, and shall require the User to comply with the Rules of Use.

(1) Party A and Party B have no control over the content of information that passes through the host computer, network center and access points (hereinafter referred to as "Network" in this Article). In addition, neither Party A nor Party B shall make any warranty regarding the aforementioned information.

(2) Users shall be responsible for their own use of information obtained through the Network.

(3) The Subscriber may not resell or provide Party B-provided services to any person other than the Subscriber.

(4) Users' personal information may be disclosed when requested by public agencies such as judicial institutions. In addition, the usage status of users may be processed as statistical information that cannot be used to identify individuals, or may be used by Party A and Party B or provided to a third party, on the condition that the user's consent is obtained.

(5) Party A and Party B shall regard all communications through wireless data communication as belonging to the User who has received such User Account.

(6) The user agrees that the user's account information and other personal information will be exchanged between Party A and Party B and carriers for the operation of this service.

(7) The user shall follow the terms, regulations, and conditions of use regarding telecommunications of the carrier and other telecommunications carriers, in addition to Party B's rules of use.

(8) The user shall maintain the equipment (precision equipment terminal) necessary for the user to use the Service at the user's own expense and responsibility.

(9) Users shall use their IDs, passwords (hereinafter referred to as "ID information"), and other rights to use the Service. (9) Users shall manage their IDs, passwords ("ID Information") and other information sufficient to recognize their rights to use the Service at their own responsibility. Party A shall not be liable for any loss or damage incurred by the User due to any error in the use of the ID Information or unauthorized use of the ID Information by any other party, regardless of whether the said User's intentional or negligent act is involved.

(10) The user acknowledges that for the proper operation of this service, the user's personal information and ID information will be exchanged between Party B, carriers, agreed operators, and contractor companies such as transportation companies.

(11) In the event that Party A or Party B continuously conducts a large volume of communication that significantly exceeds the average use of the Service and causes an excessive load to the network of Party A, Party B or a third party, Party A or Party B may control such communication or restrict the bandwidth of such communication.

(12) Party A and Party B may optimize communications to ensure fairness of use and smooth provision of the Service.

(13) In the event that a user falls under any of the prohibited items in Paragraph 2 of this Article, Party A and Party B may, without prior notice to the user, suspend the transmission or display of the information by the user.

(13) If a user falls under any of the prohibited items in Paragraph 2 of this Article, the Party A and Party B shall, without prior notice to the user, delete all or part of the information transmitted or displayed by the user, or make it unavailable to others.

2 In using the Service, Users must not engage in the following acts, and Party B must clearly state the following acts as "Prohibited Acts" in the Rules of Use.

(1) Other person (including Party A. (1) Infringing the intellectual property rights or other rights of another person (including Party A, and the same shall apply hereinafter). (1) Infringing the intellectual property rights or other rights of any other person (including Party A).

(2) Infringing the property, privacy, or portrait rights of others.

(3) Defaming, disgracing, or libeling the reputation or credibility of another person.

(4) Criminal acts such as fraud or obstruction of business, or acts that induce or incite such acts

(5) Obscenity, child pornography, transmitting or posting images or documents that constitute child abuse

(6) Drug crimes, acts that lead to or are highly likely to lead to the abuse of controlled substances, or acts that advertise unapproved drugs, etc.

(7) Advertise money loans without being registered to engage in the money lending business.

(8) Establishing or soliciting to establish a pyramid scheme.

(9) Falsifying or deleting information that can be used through the Service, such as another person's website

(10) Sharing one's own ID information with others or placing it in a state where it may be shared by others.

(11) Use of the Service by impersonating another person (including the unauthorized use of another user's ID information, or the act of altering mail headers in order to disguise oneself)

(12) Transmitting computer viruses or other harmful computer programs, or leaving such programs in a state where they can be received by others

(13) Posting advertisements or other postings on bulletin boards, etc. (including Internet news, mailing lists, chat rooms, etc.) managed by others in a manner or content that is contrary to the intent of the administrator of the bulletin board, etc.

(14) Sending advertising or solicitation e-mails, etc. without the consent of the recipient

(15) Sending mail, etc. that is or may be objectionable to the recipient (harassing mail) without the recipient's consent.

(15) Sending mail, etc. (harassing mail) that is or may be objectionable to the recipient without the recipient's consent

(16) Conducting illegal gambling or soliciting participation in illegal gambling.

(17) Contracting, mediating, or inducing (including requesting others to do so) illegal acts (e.g., transferring guns, illicitly manufacturing explosives, offering child pornography, forging official documents, murder, or persecution).

(18) Transmitting cruel information such as images of murder scenes, images of animals being killed or molested, or any other information that may cause extreme disgust to others from a socially accepted viewpoint, to an unspecified large number of persons.

(19) Inducing or soliciting a person to commit suicide, or introducing a means of suicide that is highly likely to cause harm to others.

(20) Actions that encourage unspecified persons to post information that leads to or is highly likely to lead to criminal or illegal activities, or information that unfairly slanders, defames, insults, or invades the privacy of others.

(21) Other acts that Party A deems offensive to public order and morals or infringing on the rights of others

(22) Accessing another person's facilities, equipment, or devices without authorization

(23) Use of the Service in a manner that significantly overloads servers managed by others or interferes with their operation.

(24) Linking in a manner that encourages such acts, knowing that such acts fall under any of the preceding items.

(25) Other acts that violate laws, ordinances, public order and morals, or that significantly infringe on the rights of others

(26) Any act that Party A judges to be likely to fall under any of the preceding items.

3 Party B shall be responsible for handling all claims for the user's actions. However, if data stored on Party A's servers is necessary for Party B to process a claim, Party A shall cooperate with Party B in that work.

4. If a complaint, claim, or a request for disclosure of sender's information is notified to Online Mall, Online Mall shall notify Party B of it with the necessary "Blue Report". In addition, Party B shall consent to Party A's disclosure of Party B's name to the sender of such complaint, etc.

5 Party B shall notify Party A in advance of the contact information of the contact person for handling complaints about users in order to perform the duties related to Paragraph 3 of this Article.

6 Party B shall provide the User with a contact point for the contents of the Service Agreement, fees, etc., and for technical support.

7. Party B strongly recommends that the user's identity be verified at the time of application for use.

8 Party B shall require the Subscriber to confirm that the Subscriber's terminal equipment is in compliance with the terms and conditions of Article 11 (Terminal Equipment and SIM Card).

Article 27. (Advertising)

Party B may use Carrier's trademarks (excluding logos) and service names in accordance with Carrier's guidelines (https://www.nttdocomo.co.ip/corporate/disclosure/mvno/business/brand/index.html). (). In the case of sales by a secondary distributor as stipulated in Article 62 (Secondary Distributor), Party B shall be responsible for monitoring the usage of the Carrier's trademarks by such secondary distributor to ensure that such usage is in accordance with the Guidelines. If Party A requests a report on the use of the Carrier's trademarks by Party B or the Secondary Distoributor, or if Party A requests the correction or suspension of the use of the Carrier's trademarks, Party B shall comply with KT's instructions.

If Party A requests a report on the use of the Carrier's trademarks by Party B or a secondary distributor, or if Party A requests the modification or suspension of use, Party B shall follow Party A's instructions.

Chapter 7 (Fees, etc,)

Article 28. (Fees and Cost)

The fees and expenses for the Service and the method of calculating the fees shall be as set forth in the fee schedule and specifications

2. The fees and expenses in the preceding paragraph are subject to change without prior notice or announcement by the Party A

Article 29. (Obligation to Pay Initial Fees)..

After execution of this Agreement, Party B shall pay the Initial Fees in accordance with the invoice issued by Party B

Article 30. (Obligation to Pay Monthly Fees)

Party B must pay the monthly fee from the billing start date as specified in Article 7 (Billing Start Date) when Online Mall notifies Online Mall of its acceptance of this service..

2 With respect to the monthly usage fee in Paragraph 1, Party A shall prorate it on a daily basis for bandwidth contracts.

3 Party B shall assume the obligations in the preceding paragraph even if Article 19 (Suspension of Communications), Article 20 (Suspension or Change of Operation), Article 21 (Restriction of Communications), or Article 22 (Restriction of Use in Case of Emergency, etc.) is applied.

4 The Party A shall calculate the charges for the period from the first day of the current month to the last day of the current month as one billing month. Any fraction of less than one (1) yen in the calculation of fees shall be rounded down to the nearest one (1) yen.

5 Notwithstanding the provisions of Paragraph 1 of this Article, the Universal Service Charge for this Service shall accrue from the month that includes the day after 3 calendar days (including the day of shipment) from the day Party A sends the SIM card, and shall not be prorated.

Article31. (Obligation to Pay Termination Fee)

If this Agreement is terminated pursuant to the provisions of Article 23 (Termination of Agreement by Online Mall), Article 24 (Termination of Agreement by Paygate), or Article 63 (Term of Agreement) before the expiration of the Minimum Term, Party B shall pay the cancellation fee corresponding to the remaining period of the SIM Agreement multiplied by the total number of SIM Agreements during the relevant cancellation month and the monthly fee for the SIM Agreement by the date specified by Online Mall. Party B shall pay the cancellation fee corresponding to the remaining period of the SIM contract by the date specified by Party A.

Article 32. (Obligation to Pay Fees)

In using the Service, Party B must pay the fees specified in a separate fee schedule by Party A in the event of the opening, loss, replacement or reissuance of a SIM card due to malfunction, and the suspension, resumption, or replacement of a SIM card due to malfunction. However, if the SIM card is clearly defective, or if the failure is due to Party A's negligence such as an accident during transportation from Party A to the user, Party A shall replace or reissue the SIM card free of charge.

Article 33. (Payment of Charges, etc.)

The method of payment of fees for this Service shall be as follows.

(1) Party A shall close the calculation of fees at the end of each month and issue an invoice by the 10th of the following month.

(2) Party B shall pay the invoiced amount, plus consumption tax and other taxes in effect at the time, by bank transfer to the bank account designated by Party A by the last day of the month following the closing date (or the preceding business day if the last day of the month is a bank holiday). The user shall bear the cost of the bank transfer and the cost of issuing invoices.

(3) If there is any change in the designated bank account, Party A shall notify Paygate at least 15 days prior to the payment due date.

Article34. (Collection of Charges from Users)

Party B shall be responsible for collecting the User's fees for the Party B-provided services, and Party A shall not be responsible for any uncollected or non-payment of such fees.

Article35. (Surcharge)

Party B which has illegally exempted the fees and expenses for the Service shall, in addition to the amount so exempted, pay to Party A the amount equivalent to twice the amount so exempted (not including the amount equivalent to the consumption tax). (Surcharge) Party B shall pay, in addition to the amount so exempted, a surcharge equal to twice the amount so exempted (not including the amount equivalent to the consumption tax) plus an amount equivalent to the consumption tax.

Article36. (Late Payment Charges)

If Party B fails to pay the Service Charges, etc. by the payment due date, Party B shall pay the amount calculated at an interest rate of 14.5% per annum for the number of days from the day following the designated payment due date to the day before the payment due date, together with the Service Charges and other obligations, as interest for delinquency, by the date specified by Online Mall in the manner specified by Online Mall.

2 Party B shall bear all bank transfer fees and other costs necessary for the payment in the preceding paragraph.

Chapter 8 Voice Communication Services

Article37. (Application for Voice Communication Service, etc.)

If Party B specifies and applies for voice communication service in accordance with Article 13 (Bandwidth Agreement and SIM Agreement), Paragraph 1, for each Individual Agreement, Party A shall provide Party B with a SIM card that enables voice communication using the circuit switching method (hereinafter referred to as "Voice SIM"). If the user is an individual, the SIM card that enables voice communication by circuit switching (hereinafter referred to as "Voice SIM") shall be provided to Paygate. If the user is an individual, the maximum number of Voice SIM subscriptions shall be five (5).

(2) If Party B provides voice communication service in the service provided by Party B, and the user is an individual, the maximum number of subscriptions for such user shall be five (5).

Article 38. (Definition of Terms of Voice Communication Service)

The terms used in this Chapter shall have the following meanings.

Voice communication service

means voice service using circuit switching system.

Voice SIM contract

In this Chapter, "SIM contract" means an individual contract for voice services.

SIM contract

In this Chapter, "SIM Contract" means an individual contract for data communication SIM other than Voice SIM Contract.

MNP

means mobile number portability, which allows customers to receive telecommunications services by changing telecommunications carriers without changing their phone numbers.

Interconnection Agreement

Means an agreement concluded by Party A or an interconnection carrier with another telecommunications carrier concerning the connection of telecommunications facilities.

Interconnection Point of Other Companies

Means a connection point of other telecommunications carriers for interconnection based on an interconnection agreement. International Roaming Function

A function that confirms that the terminal equipment equipped with a voice SIM is in the business area pertaining to international out-roaming and transfers incoming calls to the SIM user's telecommunications equipment when such SIM user receives an incoming call.

International Call Service Function

A telecommunications service that mediates calls made from a terminal device equipped with a voice SIM to another person's call between Japan and a foreign country and a satellite phone pertaining to the satellite phone system of a telecommunications carrier separately specified by the carrier, using the user's line.

Location information notification function

A function that enables the sending of location information (meaning information such as latitude and longitude pertaining to the location of terminal equipment connected to voice communications services) to telecommunications facilities pertaining to the location information receiving function. Location information receiving function means a function that enables the storage and reception of location information sent out by the location information function of the voice communications service upon request from the user.

Incoming call function during a call

A function that notifies the user that there is an incoming call from another party during a call, and allows the user to suspend the communication currently in progress (limited to communication in call mode) at the touch of a button on the terminal device connected to the user's line, and to receive a call from the next party. (Hereinafter referred to as "Catch phone").

Answering machine and missed call announcement function

Communications (limited to communications in Calling mode or 64kb/s digital communications mode) received on the user's line "Voice mail service" means a function that stores messages of incoming communications (limited to communications in call mode or 64kb/s digital communication mode) and plays back the stored messages or notifies the absence of the caller with a message registered in advance for the incoming communications to the user's line.

Articke 39, (Identification)

When applying for voice communications services, notwithstanding the provisions of Article 26 (Obligations of Paygate Concerning Users), Paragraph 7, Party B shall, at its own responsibility, confirm the identity of the person who wishes to use voice communications services (including the identification of the subscriber, etc. by the mobile voice communications carrier and the identification of the person who wishes to use voice communications services) when granting and providing voice communications for the services provided by Party B to the user. The identification of the person who wishes to use the service shall be confirmed as stipulated in Article 3. (This refers to the identity verification stipulated in Article 3 of the Act on the Prevention of Improper Use of Mobile Voice Communications Services). The cell phone service provider shall be required to confirm the identity of the subscriber (which means the identity confirmation prescribed in Article 9 of the Mobile Phone Improper Use Prevention Act) and the identity of the user (which means the subscriber confirmation prescribed in Article 9 of the Mobile Phone Improper Use Prevention Act). The User shall notify Party A of the fact that Party A has confirmed the identity of the User.

Article 40. (Application when MNP is applied)

Party B shall apply for MNP to Party A promptly after the user obtains an MNP reservation number. Party A shall accept the application for MNP only when the MNP reservation number is valid for at least 5 days.

(2) The details of the procedures for applying for MNP shall be determined separately.

Article 41. (Cancellation in the case of application for MNP)

If Party B wish to apply for MNP when Party B cancel Voice SIM contract, Party B shall apply for it by the method designated by Party A prior to notifying Party A of cancellation. Such cancellation notice shall be made within 10 days after obtaining the MNP reservation number. If Party B wish to cancel the MNP application, Party B shall notify Party A of such cancellation immediately.

2 In the case of MNP application, the cancellation procedure of the voice SIM contract shall be made on the date when the transfer of the phone number to another telecommunications carrier is completed.

3 If the Party A terminates the Voice SIM contract in accordance with Article 23 (Termination of Contract by Party A), Party B shall not be able to use MNP.

4 Details of the procedures for cancellation in case Party A wishes to apply for MNP shall be separately stipulated.

Article 42. (Phone Number)

The phone number for voice communication service shall be determined by Party A for each voice SIM contract, and there is no guarantee that the phone number will be continuously available to Party B. Party B cannot choose its phone number except in the case of MNP.

2 Party A may change the phone number if there is a compelling technical or business reason to do so. In this case, Party A will notify Party B in advance.

Article 43. (Caller ID notification)

When a call is made from a telecommunication line using voice communication service, Party A shall notify the telephone number to the line, etc. from which the call was received. However, this does not apply to calls specified in the following items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Calls made by dialing 184 before making an outgoing call.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Calls made from a line for which the caller has registered in advance that he/she refuses this treatment (except for calls made by dialing 186 prior to the outgoing call).

2 Party A shall not be liable for any damage arising from notification or failure to notify the calling party of the outgoing telephone number.

Article 44. (Use of International Out Roaming, etc.)

The user of voice communication service can choose to use international out-roaming service only when the user has requested to use international out-roaming service at the time of application for voice communication service or when the user has notified Party A when he/she wishes to use international out-roaming service.

2 Notwithstanding the provisions of the preceding paragraph, international out roaming may be unavailable when the voice communication service is unavailable due to suspension of use, etc., or when it is unavoidable for maintenance or construction of telecommunications facilities, in accordance with the provisions of this Agreement.

3 Party A shall pay to Party A the cumulative amount of the charges for international out roaming that are payable by Party B to Party A for each Voice SIM contract for one billing month (the amount of the charges for international out roaming usage that Party A can confirm during that billing month, excluding the amount that has already been paid to Party A). (Hereinafter referred to as "Monthly Usage Amount" in this Article.) Party A shall set a limit (hereinafter in this Article referred to as "Estimated Amount of Suspension") on the amount of monthly usage (hereinafter in this Article referred to as "Monthly Usage Amount").

4 Party A may suspend the use of International Out Roaming for a period designated by Carrier from the time Carrier confirms that the Monthly Usage Amount for International Out Roaming has exceeded the Estimated Usage Suspension Amount.

5 In addition to the provisions of the preceding paragraph, when Party A confirms that the amount of usage pertaining to international out-roaming in a specific 24-hour period exceeds the estimated amount of usage suspension, Party A may suspend the use of international out-roaming for a period until a request for re-use is received from Party B.

6 Party B shall be required to pay the International Out Roaming Charges for the portion of the International Out Roaming Charges in excess of the estimated amount of suspension of use.

7 Except as otherwise provided in this Agreement, Party A shall not be liable for any damages arising from the unavailability of international out-roaming service.

8 The business area and other conditions for international out-roaming shall be as stipulated by the carrier. In addition, the use of international out-roaming may be restricted by foreign laws and regulations or contract terms and conditions stipulated by foreign telecommunications carriers.

9 Party A shall measure the calling time, etc. by the equipment of Party A, the MNO or the PO, and calculate the international out-roaming charges based on the results of such measurement.

Article 45. (Use of International Call Service, etc.)

1 The user of voice communications service may choose to use international telephone service, and may use international telephone service only when he/she has requested to use international telephone service at the time of application for voice communications service or when he/she has notified Kou when he/she wishes to use international telephone service.

2 Calls pertaining to International Telephone Service may be made only by dialing (A call in which the connection to the other party of the call is made automatically without the need for a switching agent.).

3 Party A may set a limit on the cumulative amount of charges for international call service to be paid by Party B to Party A for each voice SIM contract in a single billing month (the amount for the use of international call service that Party A can confirm for that billing month, excluding the amount that has already been paid to Party A). (Hereinafter referred to as "Monthly Usage Amount" in this Article.). The specific amount of the Usage Limit shall be determined separately.

4 Party A may suspend the International Call Service for a period specified by the carrier after the carrier confirms that the monthly usage for the International Call Service has exceeded the Usage Limit.

5 Party A may cancel or change the usage limit upon request from Party B.

6 Party A may set the Usage Limit or change the set Usage Limit depending on the payment status of the Voice SIM subscription.

7 Party B shall be required to pay the usage charges for the portion of the International Call Service that exceeds the Usage Limit.

8 Except as otherwise provided in this Agreement, Party A shall not be liable for any damage arising out of the unavailability of the International Telephone Service.

9 The business area and other conditions of International Call Service are subject to the carrier's stipulations. In addition, the use of International Call Service may be restricted by foreign laws and regulations or contract terms and conditions stipulated by foreign telecommunications carriers.

1 0 Party A shall measure the calling time, etc. by the equipment of Party A, the MNO, or the POA, and calculate the International Call Service Charges based on the results of such measurement.

Article 46. (Location Information, etc.)

When Party A receives a request for location information from a telecommunications facility pertaining to the service provider during communications between a connection point established with the service provider and the user line pertaining to a voice SIM contract or SIM contract, in a manner separately specified by the carrier, Party A will send the location information to the service provider only when the user has made settings for sending the location information to the service provider in advance. In addition to the provisions of the preceding paragraph, the Party A will send location information to the connection point only when Party A has made settings for sending location information to the PDU in advance.

2. In addition to the provisions of the preceding paragraph, Party A will send location information to the organization involved in the emergency call at the time of the emergency call.

3 Party A shall not be liable for any damage caused by the location information sent in accordance with the preceding two paragraphs, regardless of the cause.

4 The user may receive assist information (information that is used as a reference when measuring the location of the terminal equipment connected to the user's line and is provided by Party A) pertaining to location measurement (Hereinafter referred to as "Assist Information" in this Article.) by the method specified by the carrier.

5 Party A does not guarantee the contents of the Assist Information for location measurement.

6 Party A shall not be liable for any damages related to the receipt of Assist Information by the Location Information Receiving Function, except as provided in this Agreement.

Article 47. (Catch phone)

The Catch phone function allows the user to perform the following

(1) Answer an incoming call from another telecommunication line and make a communication, and then make a pending communication again.

(2) Connect to another telecommunication line and make a call, and then place the call on hold again.

2 A separate monthly fee is required for the Catch phone function.

Article 48.(Answering machine and missed call announcement function)

Stored messages are erased after a time period determined separately by the carrier.

2 In addition to the preceding paragraph, messages that have already been stored may be erased when the use of the answering machine and the missed call announcement function is discontinued, etc. In such a case, the erased messages will be deleted. In this case, the erased messages cannot be restored.

3 Messages pertaining to 64kb/s digital communication mode can be stored only for communications from the user line of the voice communication service or the subscriber line of the telecommunication service provided by an agreed carrier.

4 Messages pertaining to 64kb/s digital communication mode cannot be stored when the coverage area for the voice communication service for which this function is provided is within the business area for international out roaming.

5 Charges for communications made for the use of message playback, etc., answering machine and missed call information functions shall be paid by Party A.

6 When the area where the terminal facilities connected to the user's line are located cannot be confirmed by the switching facilities at the exchange due to poor signal transmission or other reasons, communications to the user's line using this function shall be handled as if it were located in the area that could be confirmed immediately before the communication.

7 The number of messages that can be stored, the storage time of one message, and other conditions of service shall be determined by the carrier.

8 A separate monthly fee must be paid for the answering machine and the missed call announcement function.

Article 49. (Restriction on Communications)

Voice communication service is available only when the connected terminal equipment is within the communication area. However, even within the telecommunication area, outgoing and incoming calls may not be possible on rooftops, inside buildings, in underground parking lots, behind buildings, in tunnels, in mountainous areas, and other places where radio waves are difficult to transmit, or near devices that generate radio waves. Calling charges may be incurred even when these services are not available.

Article 50. (Communications with Other Companies' Interconnection)

1 Communications with other companies' interconnection points may be made only for communications determined by Party A based on interconnection agreements, etc.

2. In the event of suspension of interconnection based on an interconnection agreement or termination of an interconnection agreement, or in the event of suspension of telecommunications business at an Agreed Service Provider

(2) In case of suspension of interconnection based on the interconnection agreement, cancellation of the interconnection agreement, or suspension of telecommunication business of an agreed carrier, the other network interconnection communication with that agreed carrier cannot be performed.

Article 51. (Obligations of Party B with respect to Voice SIM Agreements)

In using the voice communications service, in addition to the matters set forth in Article 26 (Obligations of Paygate Concerning Users), Paragraph 2, Party B and Users must not engage in the following acts, and Party B must clearly state the following acts as "Prohibited Acts" in its usage rules.

(1) Intentionally leaving a subscription line on hold, or otherwise interfering with the transmission and exchange of communications.

(2) Actions that may cause communication congestion, such as intentionally generating a large number of incomplete calls.

(3) Commercial advertisement or solicitation to an unspecified number of third parties using the automatic dialing system or synthetic or recorded voice, etc., without the consent of the individual concerned.

(4) Using an automatic dialing system or synthetic or recorded voice communications, etc., to engage in voice communications that may be objectionable to a third party.

(5) Changing or deleting phone numbers or other information registered on the voice SIM card.

(6) If connecting a terminal device capable of acquiring location information to the user's line and allows another person to possess it, acts that infringe or may infringe on the privacy of the person possessing the device.

(7) Other acts that Kouki deems inappropriate in relation to the use of voice communications services.

Article 52. (Charges and Expenses for Voice Communication Service)

1 The fees, expenses, and the method of calculating the fees for the voice communications service set forth by Party A shall be as set forth in the Exhibit attached hereto.

2 Party B shall be obligated to pay the charges, etc. from the time when the voice SIM contract is established. Except as otherwise provided in this Chapter, Party B shall assume the obligations set forth in the preceding paragraph even in the event that the voice communications service is not available.

3 Party B shall be required to pay the calling charges for the calls made from the telecommunication line using the voice communication service. (including calls made by persons other than the user for that telecommunication line).

4 With respect to the calling charges, Party A will measure the calling time by the equipment of Party A, the connecting service provider, or the agreed-upon service provider, and calculate the calling charges based on the measurement results.

Article 53. (Disclaimer for Voice Communication Service)

Party B acknowledges that there is a possibility that the contents, etc. such as speed dial numbers, messages, etc. stored in the telecommunication facilities of Party A or Carrier may change or disappear due to maintenance or construction of telecommunication facilities as specified in Article 20 (Suspension or Change of Operation), or repair or restoration as specified in Article 25 (Repair or Restoration of Facilities). In the event that Party A causes damage to Party B, Party A shall not compensate Party B for such damage, unless such damage is caused by the willful misconduct or gross negligence of Party A. The upper limit of compensation shall be in accordance with the provisions of Article 55 (Compensation for Damages, etc.), Section 1.

Chapter 9 Miscellaneous Provisions

Article 54. (Contact Person)

1 Party A and Party B shall appoint a person in charge of liaison concerning the Service, and notify each other of any changes to the person in charge.

2 Party A and Party B shall mutually communicate with each other regarding the operation of this service through the contact person in the preceding paragraph. However, this shall not apply in case of urgent necessity.

Article 55. (Compensation for Damages, etc.)

1 In the event that Party A fails to provide the Service to Party B due to its willful misconduct or gross negligence, upon written request from Party B, Party A shall compensate Party B for damages incurred up to the total monthly charge within 3 months including the month of such failure upon mutual agreement between Party A and Party B.

2 Party A shall not be liable for any direct damage incurred by Party B and any indirect damage including lost profit related thereto, unless otherwise stipulated in this agreement in addition to the preceding paragraph.

3 Notwithstanding the preceding paragraph, Party A shall not be liable for damages caused by the registered telecommunications carrier or other telecommunications carriers (including carriers) for reasons attributable to Party A. If Party A is unable to provide the Service to Party B due to reasons attributable to the registered telecommunications carriers or other telecommunications carriers (including carriers), and if Party A is able to receive compensation from such registered telecommunications carriers or other telecommunications carriers, Party A may accept a written demand for damages from Party B up to the amount of compensation received from such carriers. In such a case, Party A may accept a written demand for damages from Party B. In this case, if there are multiple clients to be compensated and the total amount of compensation to Party B exceeds the amount of compensation received by Party A, the amount of compensation to Party B shall be the amount of damages received by Party A proportionally divided by the amount to be returned to Party B in accordance with Party A 's standards.

4 The Service is a best-effort type of service, and Party A does not guarantee the quality of communications through the Service.

5 Party A does not guarantee that the Service will be free from any defects due to the technical level of the Internet and computers, the technical level of the infrastructure such as communication lines, or the commercial complexity of the network itself.

6 Party A shall not control or guarantee the completeness, accuracy, usefulness, or legality of the information, software, etc. accessible through the Service, and shall assume no responsibility whatsoever. Party B shall use such information, etc. at Party B's own risk.

7. Party A shall not be responsible for any trouble (including trouble caused by unauthorized use of the user's account) that may occur between the user and other parties as a result of the user's use of this service. (8) Party B shall not be liable for any loss or damage arising out of or in connection with the use of the Service by the User.

8 Party B agrees to protect Party A from any loss caused by any claim or allegation from any third party arising out of or in connection with the use of the Service, and to hold Party A harmless from any such claim or allegation. 8.8 The User agrees to protect and hold harmless Party A from any and all claims or allegations made by any third party in connection with the use of the Service, unless such claims or allegations are solely due to the willful act or gross negligence of Party A.

Article 56. (Change of Service or Discontinuance of Service)

1 Party A may change or discontinue all or part of the Service at any time for its convenience.

2 When Party A discontinues all or part of the Service pursuant to the preceding paragraph, Party A shall notify Party B of such discontinuance in an appropriate manner in advance.

3 In the event of discontinuance of the Service in accordance with the provisions of Paragraph 1, Party B may request Party A to provide another Party A Service in lieu of the discontinuance. Party A shall prepare an alternative service as much as possible, but Party B agrees in advance that there may be cases where this may be for the convenience of the carrier.

4 Party A may change the fees and other terms and conditions of this service in accordance with the provisions of the carriers, relevant authorities, or related laws and regulations. In this case, Party B shall not file any complaint or claim or request for remedy concerning such change of service.

(5) If Party B discontinues the service provided by Party B for its own reasons, Party B may, for the convenience of users, transfer or direct users to another service of Party A upon mutual consultation between the Party A and Party B.

Article 57. (Handling of User Information)

Party B agrees in advance that Party A may analyze, store, use, provide to a third party, dispose of, or otherwise use and dispose of Party B 's or user's personal information and connection information for the appropriate operation of this service. However, when Party A presents such information to a third party or uses it for any purpose other than the appropriate operation of this Service, Party A shall process it as statistical information including members of other services of Party A other than this Service, so that the user cannot be identified and the user cannot be identified as a customer of Party A.

2 Party B agrees that Party A shall dispose of the user's information (including personal information) generated from the operations based on this Agreement and the agreements entered into in conjunction with this Agreement in an appropriate manner on behalf of Party B at a time deemed appropriate by Party A after Party B has provided the Party B -provided services to the user.

3 For the purpose of proper operation of the Service, Party A transfers users' personal information (including billing information) and ID information to/from carriers, partner companies, and contractors. Party A shall keep such information with the due care of a good manager, and shall be responsible for any leakage of such information due to Party B intentional or negligent act.

4 Party A agrees to retain the personal information of its user-clients for the appropriate operation of the Service as long as this Agreement is in effect.

5 If there is a legal or administrative request for disclosure, either Party A or Party B can disclose the other party's "blue data" after notifying the other party of such request in advance. However, if it is reasonably recognized that prior notice is impossible or extremely difficult due to the nature of the request, it shall be sufficient to notify the other party immediately after the disclosure that the Blue Book has been disclosed due to such request.

6. If requested by Party B, Party A may mechanically identify specific communication (service/application) data that Party B separately designates. The contents of the communication to be identified shall be as follows, and only the result of identification shall be notified to Party B, and no header information, etc. shall be provided. Party A shall not provide any header information, etc.

Party A does not guarantee the usefulness, accuracy, etc., of such identification results.

(1) IP address

(2) Port number

(3) HTTP header and a part of TLS header

6 Party B agrees that in the case of the preceding paragraph, since Party A identifies a specific communication (service/application) based on the data specifications determined in its own investigation, if the data specifications are changed by the provider of the service or application, it may not be recognized as a specific communication.

7 If Party B requests the identification survey in Paragraph 4, it shall obtain the following consent from the user before making the request to Party A, and shall assume all responsibility to the user for Party A's performance of such identification work.

(1) Analysis of the amount of data, etc. for specific communications (identification of the target application service)

(2) To perform information that falls under the category of confidential communications as stipulated in Article 4 of the Telecommunications Business Law (information stipulated in each item of Paragraph 1 of this Article) based on the consent of the communicating party.

(3) To perform analysis entrusted by Party B to Party A

(4) Other matters separately stipulated by Party A.

Article 58. (Sales Forecast)

Party B shall submit to Party A a sales plan for the Bandwidth Contract as follows

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Party A shall submit a monthly sales plan for three (3) years at the time of execution of this Agreement, and shall submit such monthly sales plan for three (3) years by the end of March of each year thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Party B shall submit monthly sales plans for three months by the end of each month.

2 Party B shall report to Party A, in principle, by the second business day of each month the estimated number of SIM rental requests for the period from the month in question to twelve (12) months thereafter.

3 In order for Party A to arrange for the arrival of SIM cards in accordance with the sales plan described in the preceding paragraph, if the number of SIM card applications significantly exceeds the sales plan, Party A will not be able to receive the SIM cards.

If you apply for a SIM contract in excess of the sales plan, Party B agrees in advance that it may take some time for the SIM card to be shipped to you.

Article 59. (Confidentiality)

1 Party B shall not disclose to any third party any confidential information of Party A(such as data provided by Party A, information related to the Service, etc.) obtained in connection with the Service without Party A's prior consent, and shall not use such information for any purpose other than receiving the Service.

2 Party A shall not disclose to any third party any confidential information of Party B obtained in connection with this Agreement without the prior consent of Party B, and shall not use such information for any purpose other than the purpose of this Agreement.

3 If there is a legal or administrative request for disclosure, either Party A or Party B can disclose the other party's information after notifying the other party of such request in advance. However, if Party A is instructed by the requester not to notify the other party in advance of such a request, Party A may disclose the information without notifying the other party in accordance with the requester's instruction.

Article 60. (Exclusion of Antisocial Forces)

Party A and Party B shall each represent and warrant to the other party the following items.

(1) That they are not, and will not become, antisocial forces, i.e., groups or individuals who pursue economic benefits by making full use of violence, power, and fraudulent methods, such as organized crime groups, members of organized crime groups, quasi-constituents of organized crime groups, companies affiliated with organized crime groups, general assemblyists, etc., anti-social groups, and other persons equivalent to these groups, etc. (hereinafter collectively referred to as "antisocial forces")

(2) Its own officers (representatives, directors, or persons who substantially control management) do not fall under the category of antisocial forces and will not become antisocial forces in the future.

(3) That it will not use antisocial forces as a subcontractor for its own operations.

(4) Not to engage in any of the following acts by themselves or by using a third party

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Violent acts of demand

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Unreasonable demands beyond legal responsibility

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Behave in a threatening manner or use violence in connection with transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Acts to damage the other party's credibility or obstruct the other party's business by spreading false rumors, using deceptive means, or using force.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any other acts equivalent to the foregoing.

(2) If it is found that the counterparty violates any of the commitments in the preceding paragraph during the effective period of this agreement, either Party A or Party B may immediately suspend all or part of the transactions or cancel all or part of this agreement without any notice to the other party, regardless of whether or not there are reasons attributable to the other party. In this case, the party that suspends transactions or cancels the Agreement shall not be liable to the other party in any way for any damages, etc. incurred by the other party arising from or in connection with the suspension of transactions or cancellation of the Agreement, and the party that cancels the Agreement shall not be precluded from claiming damages from the other party in the event that damages, etc. are incurred by the party that cancelled the Agreement.

Article 61. (Restriction on Use of Trademarks, etc.)

Except as otherwise provided in this Agreement, neither Party A nor Party B may use each other's name, trade name, trademark, or other unique symbol, etc. without prior mutual consent.

Article 62. (Secondary Seller)

1 Party B, when conducting secondary sales, shall make an application to Party A for prior approval by submitting the required information in the Secondary Sales Entity Notification designated by Party A.

2 Party A shall, at its own discretion, decide whether or not to approve Party B's application, and may request Party B or any other entity applying to Party B as a candidate for Secondary Seller to submit appropriate materials.

3 Party B may conduct secondary sales only after obtaining prior approval from Party A. Approval by Party A shall not authorize Secondary Seller to conduct tertiary sales through a telecommunications carrier other than the Subscriber

4 If Party B conducts secondary sales business, Party B shall make the secondary sales business operator assume the same obligations as those imposed on Party B by Party A, and Party B shall assume all responsibility for the actions of the secondary sales business operator. The contact point for inquiries from the Secondary Seller shall be Party B.

Article 64. (Term of contract)

The term of validity of this Agreement shall be one (1) year from the date of execution of this Agreement until the day after one (1) year has elapsed, and this Agreement shall be extended for one (1) year unless the parties agree to terminate this Agreement upon mutual consultation at least three (3) months prior to the expiration date of this Agreement, and the same shall apply thereafter.

(2) If this Agreement is terminated in accordance with the preceding paragraph, the provisions of Article 23 (Termination of Agreement by Party A) or Article 24 (Termination of Agreement by Party B) apply, and if this Agreement is terminated, the Individual Agreement shall also be terminated naturally, and Party B shall forfeit the benefit of time pertaining to the Individual Agreement and immediately pay the termination fee, if any, and any other fees stipulated. However, if there are special provisions in the individual contracts, the individual contracts shall take precedence.

3. Even in the event of termination of this Agreement, the User shall not be liable for any damages under Article 11 (Terminal Equipment and SIM Card), Paragraph 2, Article 12 (Security Deposit), Paragraph 3, Article 16 (Transfer of Rights, etc.), Article 28 (Charges and Expenses, etc.) through Article 36 (Late Payment Damages), Article 52 (Voice Communication Service Charges and Expenses, etc.), Article 53 (Disclaimer of Voice Communication Service), Article 55 (Disclaimer of Liability for Voice Communication Service), Article 56 (Liability for Damages for Voice Communication Service), Article 57 (Liability for Liability for Liability for Voice Communication Service), and Article 58 (Liability for Liability for Liability for Liability for Liability for Voice Communication Service). Article 53 (Disclaimer for Voice Communication Service), Article 55 (Compensation for Damages, etc.), Article 59 (Confidentiality), Article 60 (Exclusion of Anti-Social Forces), this Article, Article 64 (Severability), and Article 66 (Governing Law) shall remain in force and effect.

Article 64. (Severability)

If any part of this Agreement is found to be invalid or unenforceable, the validity of the remaining portions of this Agreement shall remain unaffected thereby and shall continue to be valid and enforceable in accordance with its terms.

Article 65. (Jurisdiction)

The Tokyo Summary Court or the Tokyo District Court shall have jurisdiction over any litigation relating to this Agreement.

Article 66. (Governing Law)

This Agreement shall be governed by and construed in accordance with the laws of Japan.

As evidence of the above agreement, two (2) copies of this Agreement shall be prepared, one signed and sealed by Party A and the other by Party B, and each copy shall remain in the possession of the other.

September 7, 2020

Party A: Free Bit PLC Representative Director: Ishida Nobuaki [seal]

Party B: Okinawa International Marine Communication Co., Ltd. Human Bit Building Representative Director: Morikawa Masahiko [seal]

[Appendix] Fees (All amounts exclude tax)

**[Fees Overview]**

---

| | |
|:---|:---|
| **1.** | **Initial Fee** |
|  | **Application Fee:** ¥500,000 |
|  | (Includes): |

---

○ Traffic Visualizer Setup Fee (up to 1 group)

○ Traffic Visualizer Usage Fee (available starting the following month)

○ Setup fees for installation at additional locations (pay-as-you-go option)

2. **SIM-Related Fees** 

**[Monthly Fees]**

---

| | | | |
|:---|:---|:---|:---|
| **Category** | **Item** | **Fee** | **Unit** |
| Data SIM | ¥100 | 1 unit |  |
| SMS/SIM | ¥190 | 1 unit |  |
| Voice SIM | ¥700 | 1 unit |  |

---

*(Note): The first month shall be free of charge*

**[SIM-Specific Fees]**

---

| | | |
|:---|:---|:---|
| **Category** | **Fee** | **Unit** |
| Expenses related to SIM rental (Note 1) | ¥394 | 1 unit |
| New Registration Fee (Data SMS) | ¥1,200 | 1 unit |
| New Registration Fee (Voice) | ¥1,500 | 1 unit |
| Unreturned (Note 2) | ¥1,000 | 1 unit |
| Reissuance Fee | ¥1,500 | 1 unit |
| Cancellation (Note 3) | Free | 1 unit |
| Restoring access (Note 3) | Free | 1 unit |
| Cancellation due to MNP | ¥2,000 | 1 unit |
| Contract Termination Fee | ¥0 | 1 unit |
| Universal Service Fss | ¥3 | 1 month |

---

● Monthly Service Usage Fees: ¥3,000 per month

*(Note1): This is the cost incurred when the SIM is delivered. If there is a change in the price of the Docomo wholesale mobile phone service contract terms and conditions, the amount will be the same as that amount.*

 

*(Note 2) This does not apply if the reason for not returning the SIM to Party A is not Party B's responsibility, but the user's responsibility (e.g. loss).*

 

*(Note 3) The monthly fee will still be charged even when the service is stopped.*

 ****

 ****

*(Note 4) The Universal Service Fee will be reviewed if there are any changes to the contribution amount for the Universal Service System. The fee will be charged from the month following the date of delivery. There is no pro-rata calculation. The fee will be the same as the Universal Service Fee amount stipulated in the DOCOMO FOMA Service Agreement.*

 

*(Note 5) The SIM during the bandwidth contract period shall be used only for the bandwidth contracted by Party B.*

**3.** **Fees for bandwidth contracts** 

**[Monthly fee for bandwidth connection]**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Type** | **Network Type** | **Item** | **Fee** | **Unit** |
| Bandwidth\* | 3G (FOMA) Transmission | 3G (FOM heart band rate (including transit line usage fee)) | \*¥80,000 | 1 MB/s |
|  | LTE Data Fee | LTE (Xi) bandwidth charges (including transit line usage fees) | \*¥80,000 | 1 MB/s |
| Policy | 1 Mbps Transmission Fee | Policy Group Management Fee (up to 2 groups free, applies to 3rd group onwards, maximum of 5 groups can be set) | ¥20,000 | 1 group |

---

\* If you do not start using the service at the beginning of the month, the fee will be pro-rated.

**[Construction Fee]**

---

| | | | |
|:---|:---|:---|:---|
| **Category** | **Item** | **Fee** | **Unit** |
| APN | APN Addition (in 100MB units, 1 unit per addition) | ¥250,000 | Per Unit |
| Bandwidth | Travel and Installation Fee | ¥50,000 | Per Unit |
| Policy | Optional Policy Group/Route Addition Setup | ¥1,000,000 | Per Group |
| Policy | Policy Group/Route Setup Adjustment Work | ¥50,000 | Per Group |
| Special Cases | Urgent Work (special cases) | ¥50,000 | Per Unit |
| Other Costs | Additional setup or work requested by Party B | ¥500,000 | Per Unit |

---

*(Note 1)*: Some charges may be optional depending on the scope of the setup work required.

*(Note 2)*: The conditions for additional fees are as follows:

● If operational capacity exceeds 50MB for 3 months.

● If operational capacity exceeds 100MB for 6 months.

● If operational capacity exceeds 200MB for 6 months.

**Pay-as-you-go**

---

| | | |
|:---|:---|:---|
| **Category** | **Fee** | **Unit** |
| SMS Transmission Fees (Domestic Use) (Note 1) | ¥2.1 | Per SMS |
| SMS Transmission Fees (International Not taxed) (Note 2) | ¥50 | Per SMS |
| Call Rate | ¥16 | Per 30 seconds |
| 64k Digital Call Rate | ¥30 | Per 30 seconds |
| Directory Assistance (104) (Note 3) | In accordance with docomo billing charges |  |
| Telegraph fee (Note 4) | In accordance with docomo billing charges |  |
| Other company connection service (Note 5) | In accordance with docomo billing charges |  |

---

*(Note 1) This is the fee for messages of up to 70 characters. The fee for messages of 71 characters or more is as shown in the table below.*

 ****

**Character-Based SMS Fees (for messages exceeding 70 characters):**

---

| | |
|:---|:---|
| **Text Length** | **Fee Per SMS Transmission** |
| 1–70 characters | ¥2.1 |
| 71–134 characters | ¥4.2 |
| 135–201 characters | ¥6.3 |
| 202–268 characters | ¥8.4 |
| 269–335 characters | ¥10.5 |
| 336–402 characters | ¥12.6 |
| 403–469 characters | ¥14.7 |
| 470–536 characters | ¥16.8 |
| 537–603 characters | ¥18.9 |
| 604–670 characters | ¥21 |

---

 ****

 ****

**International SMS Transmission Fees**

---

| | |
|:---|:---|
| **Character Count** | **Fee Per Message (Excluding Tax)** |
| 1–70 characters (Approx. 1–160 characters in multi-byte) | ¥50 |
| 71–134 characters (Approx. 161–306 characters in multi-byte) | ¥100 |
| 135–201 characters (Approx. 307–459 characters in multi-byte) | ¥150 |
| 202–268 characters (Approx. 460–612 characters in multi-byte) | ¥200 |
| 269–335 characters (Approx. 613–765 characters in multi-byte) | ¥250 |
| 336–402 characters (Approx. 766–918 characters in multi-byte) | ¥300 |
| 403–469 characters (Approx. 919–1071 characters in multi-byte) | ¥350 |
| 470–536 characters (Approx. 1072–1224 characters in multi-byte) | ¥400 |
| 537–603 characters (Approx. 1225–1377 characters in multi-byte) | ¥450 |
| 604–670 characters (Approx. 1378–1530 characters in multi-byte) | ¥500 |

---

*(Note 2) This is the fee for messages of up to 70 characters. The fee for messages of 71 characters or more is as shown in the table below.*

 

*(Note 3) There is a separate charge of 16 yen per 30 seconds for calls.*

 

*(Note 4) There is no charge for the call.*

 

*(Note 5) Navi dial, ad call, etc*

**5. Voice communication service end-user additional function fee**

---

| | | | |
|:---|:---|:---|:---|
| **Category** | **Item** | **Fee** | **Unit** |
|  | Voicemail | ¥300 | Per Month |
|  | Call Waiting | ¥200 | Per Month |
| Flat-rate fee | Call Forwarding | Free | Per Month |
|  | International Calls | Free | Per Month |
|  | World Call (Note 1) | Free | Per Month |
|  | World Call (Note 2) | Free | Per Month |

---

*(Note 1) A separate call charge is required.*

 

*For call charges, please see "International Calls, International Message Service Calls, Communication Charges, Service Area Search"*

 

*htt s://www.nttdocomo.co.. /service/world/worldcall/call/*

 

*(Note 2) A separate call charge is required.*

 

*For call charges, please see "Calling and Communication Charges When Using Overseas: Service Area Search"*

 

*htts://www.nttdocomo.co.. /serVICe/world/roamm /areahndex.html*

**6. SIM Shipping Fees**

---

| | | |
|:---|:---|:---|
| **Item** | **Fee** | **Unit** |
| SIM Card Shipping Fee (Half-size SIM) | ¥1,000 | Per Shipment |

---

## Exhibit 10.7

**Exhibit 10.7**

**<u>Center Holdings Inc.</u>**

**<u>Director Indemnification Agreement</u>**

Dated as of [_________], 2025

This Director Indemnification Agreement (the "Agreement") dated as of the date first set forth above (the "Effective Date") is entered into by and between Center Holdings Inc., an exempted company incorporated in the Cayman Islands ("Company"), and [______________] (the "Indemnitee"). The Company and Indemnitee may collective be referred to as the "Parties" and each individually as a "Party".

WHEREAS, Indemnitee is a director of the Company and Indemnitee's service as a director of the Company substantially benefits the Company;

WHEREAS, in order to induce Indemnitee to continue to provide services to the Company, it is reasonable, prudent and necessary for the Company to contractually obligate itself to indemnify, and to advance expenses on behalf of, Indemnitee as permitted by applicable law and the Company's Articles of Association (the "Articles"); and

WHEREAS, this Agreement is a supplement to and in furtherance of the indemnification provided in the Articles, and any resolutions adopted pursuant thereto, and this Agreement shall not be deemed a substitute therefor, nor shall this Agreement be deemed to limit, diminish or abrogate any rights of Indemnitee thereunder;

NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Indemnitee hereby agree as follows:

1. <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A
 "Change in Control" shall be deemed to occur upon the earliest to occur after the Effective Date of any of the following
 events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Acquisition
 of Shares by Third Party. Any Person (as defined below) becomes the Beneficial Owner (as defined below), directly or indirectly,
 of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company's then issued
 and outstanding securities; provided, that any acquisition that occurs as a result of any transaction that has been approved by a
 majority of the Company's board of directors shall be excluded from the definition of Change in Control;

(ii) Change
 in Board Composition. During any period of two consecutive years (not including any period prior to the execution of this Agreement),
 individuals who at the beginning of such period constitute the Company's board of directors, and any new directors (other than
 a director designated by a Person who has entered into an agreement with the Company to effect a transaction described in Section
 1(a)(i), Section 1(a)(iii) or Section 1(a)(iv)) whose election by the board of directors or nomination for election by the Company's
 shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the
 beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute
 at least a majority of the members of the Company's board of directors; provided, that changes in the composition of the Company's
 board of directors as a result of any transaction that has been approved by a majority of the Company's board of directors
 shall be excluded from the definition of Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Corporate
 Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation
 which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing
 to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50%
 of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation
 and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

(iv) Liquidation.
 The approval by the shareholders of the Company of a liquidation of the Company or the Company enters into an agreement for the sale
 or disposition by the Company of all or substantially all of the Company's assets; or

(v) Other
 Events. Any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation
 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as
 amended, whether or not the Company is then subject to such reporting requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Person"
 shall have the meaning as set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended; provided, however,
 that "Person" shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee
 benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the shareholders of the Company in substantially
 the same proportions as their ownership of stock of the Company.

(c) "Beneficial
 Owner" shall have the meaning given to such term in Rule 13d-3 under the Securities Exchange Act of 1934, as amended; provided,
 however, that "Beneficial Owner" shall exclude any Person otherwise becoming a Beneficial Owner by reason of (i) the
 shareholders of the Company approving a merger of the Company with another entity or (ii) the Company's board of directors
 approving a sale of securities by the Company to such Person.

(d) "Corporate
 Status" describes the status of a Person who is or was a director, trustee, general partner, managing member, officer, employee,
 agent or fiduciary of the Company or any other Enterprise.

(e) "Disinterested
 Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
 is sought by Indemnitee and who meets the requirements of a "disinterested director" as set forth in the laws of the
 Cayman Islands or applicable case law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Enterprise"
 means the Company and any other corporation, partnership, limited liability company, joint venture, trust, employee benefit plan
 or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, trustee, general partner,
 managing member, officer, employee, agent or fiduciary.

(g) "Expenses"
 include all reasonable and actually incurred attorneys' fees, retainers, court costs, transcript costs, fees and costs of experts,
 witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees,
 and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
 prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses
 also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the
 premium, security for, and other costs relating to any cost bond, supersedeas bond or other appeal bond or their equivalent, and
 (ii) for purposes of Section 12(d), Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense
 of Indemnitee's rights under this Agreement or under any directors' and officers' liability insurance policies
 maintained by the Company. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments
 or fines against Indemnitee.

(h) "Independent
 Counsel" means a law firm, or a partner or member of a law firm, that is experienced in matters of corporation law and neither
 presently is, nor in the past five years has been, retained to represent (i) the Company or Indemnitee in any matter material to
 either such Party (other than as Independent Counsel with respect to matters concerning Indemnitee under this Agreement, or other
 indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification
 hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any Person who, under the
 applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company
 or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

(i) "Proceeding"
 means any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation,
 inquiry, administrative hearing or proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal,
 administrative or investigative nature, including any appeal therefrom and including without limitation any such Proceeding pending
 as of the Effective Date, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party witness or otherwise
 by reason of (i) the fact that Indemnitee is or was a director or officer of the Company, (ii) any action taken by Indemnitee or
 any action or inaction on Indemnitee's part while acting as a director or officer of the Company, or (iii) the fact that he
 or she is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee,
 agent or fiduciary of the Company or any other Enterprise, in each case whether or not serving in such capacity at the time any liability
 or Expense is incurred for which indemnification or advancement of expenses can be provided under this Agreement.

(j) Reference
 to "other enterprises" shall include employee benefit plans; references to "fines" shall include any excise
 taxes assessed on a Person with respect to any employee benefit plan; references to "serving at the request of the Company"
 shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services
 by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a
 Person who acted in good faith and in a manner he or she reasonably believed to be in the best interests of the participants and
 beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the
 Company" as referred to in this Agreement.

2. <u>Indemnity in Third-Party Proceedings.</u> Subject to the terms and conditions herein, the Company shall indemnify Indemnitee in accordance
 with the provisions of this Section 2 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding,
 other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 2, Indemnitee
 shall be indemnified to the fullest extent permitted by applicable law and the Articles against all Expenses, judgments, fines and
 amounts paid in settlement actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such
 Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed
 to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable
 cause to believe that Indemnitee's conduct was unlawful other than by reason of such person's dishonesty, willful default
 or fraud.

3. <u>Indemnity in Proceedings by or in the Right of the Company</u>. Subject to the terms and conditions herein, the Company shall indemnify Indemnitee
 in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in
 any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall
 be indemnified to the fullest extent permitted by applicable law and the Articles against all Expenses actually and reasonably incurred
 by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee
 acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company. No
 indemnification for Expenses shall be made under this Section 3 in respect of any claim, issue or matter as to which Indemnitee shall
 have been adjudged by a court of competent jurisdiction to be liable to the Company, unless and only to the extent that any court
 in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all
 the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such Expenses as such court shall
 deem proper other than by reason of such person's dishonesty, willful default or fraud.

4. <u>Indemnification for Expenses of a Party Who is Wholly or Partly Successful</u>. To the extent that Indemnitee is a party to or a participant in and
 is successful (on the merits or otherwise) in defense of any Proceeding or any claim, issue or matter therein, the Company shall
 indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection
 therewith. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or
 without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

5. <u>Indemnification for Expenses of a Witness</u>. Subject to the terms and conditions herein, to the extent that Indemnitee is, by reason of Indemnitee's
 Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified to the extent permitted
 by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection
 therewith.

6. <u>Additional Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 any limitation in Section 2, Section 3 or Section 4, subject to the terms and conditions herein, the Company shall indemnify Indemnitee
 to the fullest extent permitted by applicable law and the Articles if Indemnitee is, or is threatened to be made, a party to or a
 participant in any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against
 all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on Indemnitee's
 behalf in connection with the Proceeding or any claim, issue or matter therein other than by reason of such person's dishonesty,
 willful default or fraud.

(b) For
 purposes of Section 6(a), the meaning of the phrase "to the fullest extent permitted by applicable law" shall include,
 but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 fullest extent permitted by the provision of the laws of the Cayman Islands that authorizes or contemplates additional indemnification
 by agreement, or the corresponding provision of any amendment to or replacement of the laws of the Cayman Islands; and

(ii) the
 fullest extent authorized or permitted by any amendments to or replacements of the laws of the Cayman Islands adopted after the Effective
 Date that increase the extent to which a corporation may indemnify its officers and directors.

7. <u>Exclusions</u>.
 Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in
 connection with any Proceeding (or any part of any Proceeding):

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for
 which payment has actually been made to or on behalf of Indemnitee under any statute, insurance policy, indemnity provision, vote
 or otherwise, except with respect to any excess beyond the amount paid;

(b) for
 an accounting or disgorgement of profits pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar
 provisions of federal, state or local statutory law or common law, if Indemnitee is held liable therefor (including pursuant to any
 settlement arrangements);

(c) for
 any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits
 realized by Indemnitee from the sale of securities of the Company, as required in each case under the Securities Exchange Act of
 1934, as amended (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section
 304 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), or the payment to the Company of profits arising from
 the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), if Indemnitee is held liable
 therefor (including pursuant to any settlement arrangements);

(d) initiated
 by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors,
 officers, employees, agents or other indemnitees, unless (i) the Company's board of directors authorized the Proceeding (or
 the relevant part of the Proceeding) prior to its initiation, (ii) the Company provides the indemnification, in its sole discretion,
 pursuant to the powers vested in the Company under applicable law, (iii) otherwise authorized in Section 12(d) or (iv) otherwise
 required by applicable law; or

(e) if
 prohibited by applicable law and/or the Articles.

 

 

8. <u>Advances of Expenses.</u> The Company shall advance the Expenses incurred by Indemnitee in connection with any Proceeding prior to its final
 disposition, and such advancement shall be made as soon as reasonably practicable, but in any event no later than 90 days, after
 the receipt by the Company of a written statement or statements requesting such advances from time to time (which shall include invoices
 received by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references
 to legal work performed or to expenditure made that would cause Indemnitee to waive any privilege accorded by applicable law shall
 not be included with the invoice). Advances shall be unsecured and interest free and made without regard to Indemnitee's ability
 to repay such advances. Indemnitee hereby undertakes to repay any advance to the extent that it is ultimately determined that Indemnitee
 is not entitled to be indemnified by the Company. This Section 8 shall not apply to the extent advancement is prohibited by law and
 shall not apply to any Proceeding (or any part of any Proceeding) for which indemnity is not permitted under this Agreement, but
 shall apply to any Proceeding (or any part of any Proceeding) referenced in Section 7(b) or Section 7(c) prior to a determination
 that Indemnitee is not entitled to be indemnified by the Company.

9. <u>Procedures for Notification and Defense of Claim</u>.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indemnitee
 shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement
 of Expenses as soon as reasonably practicable following the receipt by Indemnitee of notice thereof. The written notification to
 the Company shall include, in reasonable detail, a description of the nature of the Proceeding and the facts underlying the Proceeding.
 The failure by Indemnitee to notify the Company will not relieve the Company from any liability which it may have to Indemnitee hereunder
 or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of
 any rights, except to the extent that such failure or delay materially prejudices the Company.

(b) If,
 at the time of the receipt of a notice of a Proceeding pursuant to the terms hereof, the Company has directors' and officers'
 liability insurance in effect that may be applicable to the Proceeding, the Company shall give prompt notice of the commencement
 of the Proceeding to the insurers in accordance with the procedures set forth in the applicable policies. The Company shall thereafter
 take all commercially-reasonable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of
 such Proceeding in accordance with the terms of such policies.

(c) In
 the event the Company may be obligated to make any indemnity in connection with a Proceeding, the Company shall be entitled to assume
 the defense of such Proceeding with counsel approved by Indemnitee, which approval shall not be unreasonably withheld, conditioned
 or delayed, upon the delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of
 such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee for any
 fees or expenses of counsel subsequently incurred by Indemnitee with respect to the same Proceeding. Notwithstanding the Company's
 assumption of the defense of any such Proceeding, the Company shall be obligated to pay the fees and expenses of Indemnitee's
 separate counsel to the extent (i) the employment of separate counsel by Indemnitee is authorized by the Company, (ii) counsel for
 the Company or Indemnitee shall have reasonably concluded that there is a conflict of interest between the Company and Indemnitee
 in the conduct of any such defense such that Indemnitee needs to be separately represented, (iii) the Company is not financially
 or legally able to perform its indemnification obligations or (iv) the Company shall not have retained, or shall not continue to
 retain, counsel to defend such Proceeding. The Company shall have the right to conduct such defense as it sees fit in its sole discretion.
 Regardless of any provision in this Agreement, Indemnitee shall have the right to employ counsel in any Proceeding at Indemnitee's
 personal expense. The Company shall not be entitled, without the consent of Indemnitee, to assume the defense of any claim brought
 by or in the right of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indemnitee
 shall give the Company such information and cooperation in connection with the Proceeding as may be reasonably appropriate.

(e) The
 Company shall not be liable to indemnify Indemnitee for any settlement of any Proceeding (or any part thereof) without the Company's
 prior written consent, which shall not be unreasonably withheld, conditioned or delayed.

(f) The
 Company shall not settle any Proceeding (or any part thereof) in a manner that imposes any penalty or liability on Indemnitee without
 Indemnitee's prior written consent, which shall not be unreasonably withheld, conditioned or delayed.

 

10. <u>Procedures upon Application for Indemnification.</u> 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To
 obtain indemnification, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation
 and information as is reasonably available to Indemnitee and as is reasonably necessary to determine whether and to what extent Indemnitee
 is entitled to indemnification following the final disposition of the Proceeding. Any delay in providing the request will not relieve
 the Company from its obligations under this Agreement, except to the extent such failure is prejudicial.

(b) Upon
 written request by Indemnitee for indemnification pursuant to Section 10(a), a determination with respect to Indemnitee's entitlement
 thereto shall be made in the specific case (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion
 to the Company's board of directors, a copy of which shall be delivered to Indemnitee or (ii) if a Change in Control shall
 not have occurred, (A) by a majority vote of two or more of the Disinterested Directors, even though less than a quorum of the Company's
 board of directors, (B) by a committee of two or more of the Disinterested Directors designated by a majority vote of the Disinterested
 Directors, even though less than a quorum of the Company's board of directors, (C) if there are less than two Disinterested
 Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Company's board
 of directors, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Company's board of directors, by
 the shareholders of the Company. If it is determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall
 be made within ten days after such determination. Indemnitee shall cooperate with the Person or Persons making the determination
 with respect to Indemnitee's entitlement to indemnification, including providing to such Person or Persons upon reasonable
 advance request any documentation or information that is not privileged or otherwise protected from disclosure and that is reasonably
 available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys' fees and
 disbursements) actually and reasonably incurred by Indemnitee in so cooperating with the Person or Persons making such determination
 shall be borne by the Company, to the extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(b), the
 Independent Counsel shall be selected as provided in this Section 10(c). If a Change in Control shall not have occurred, the Independent
 Counsel shall be selected by the Company's board of directors, and the Company shall give written notice to Indemnitee advising
 him or her of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel
 shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Company's board of directors,
 in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity
 of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within ten days after
 such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection
 to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected
 does not meet the requirements of "Independent Counsel" as defined in Section 1(h), and the objection shall set forth
 with particularity the factual basis of such assertion. Absent a proper and timely objection, the Person so selected shall act as
 Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as
 Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.
 If, within 20 days after the later of (i) submission by Indemnitee of a written request for indemnification pursuant to Section 10(a)
 and (ii) the final disposition of the Proceeding, the Parties have not agreed upon an Independent Counsel, either the Company or
 Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company
 or Indemnitee to the other's selection of Independent Counsel and for the appointment as Independent Counsel of a Person selected
 by the court or by such other Person as the court shall designate, and the Person with respect to whom all objections are so resolved
 or the Person so appointed shall act as Independent Counsel under Section 10(b). Upon the due commencement of any judicial proceeding
 or arbitration pursuant to Section 12(a), the Independent Counsel shall be discharged and relieved of any further responsibility
 in such capacity (subject to the applicable standards of professional conduct then prevailing).

(d) The
 Company agrees to pay the reasonable fees and expenses of any Independent Counsel.

 

11. <u>Presumptions and Effect of Certain Proceedings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In
 making a determination with respect to entitlement to indemnification hereunder, the Person or Persons making such determination
 shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement,
 and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption.

 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea
 of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself create a presumption
 that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best
 interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee's
 conduct was unlawful.

(c) Neither
 the knowledge, actions nor failure to act of any other director, officer, agent or employee of the Enterprise shall be imputed to
 Indemnitee for purposes of determining the right to indemnification under this Agreement.

12. <u>Remedies of Indemnitee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to Section 12(e), in the event that (i) a determination is made pursuant to Section 10 that Indemnitee is not entitled to indemnification
 under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 or Section 12(d), (iii) no determination
 of entitlement to indemnification shall have been made pursuant to Section 10 within 90 days after the later of the receipt by the
 Company of the request for indemnification or the final disposition of the Proceeding, (iv) payment of indemnification pursuant to
 this Agreement is not made (A) within ten days after a determination has been made that Indemnitee is entitled to indemnification
 or (B) with respect to indemnification pursuant to Section 4, Section 5 and Section 12(d), within 30 days after receipt by the Company
 of a written request therefor, or (v) the Company or any other Person takes or threatens to take any action to declare this Agreement
 void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee
 the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court
 of competent jurisdiction of Indemnitee's entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee,
 at Indemnitee's option, may seek an award in arbitration with respect to Indemnitee's entitlement to such indemnification
 or advancement of Expenses, to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration
 Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following
 the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that
 the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce Indemnitee's rights under
 Section 4. The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration in accordance
 with this Agreement.

(b) Neither
 (i) the failure of the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel
 or shareholders to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee
 has met the applicable standard of conduct, nor (ii) an actual determination by the Company, its board of directors, any committee
 or subgroup of the board of directors, Independent Counsel or shareholders that Indemnitee has not met the applicable standard of
 conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct. In the event that a determination
 shall have been made pursuant to Section 10 that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration
 commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits, and Indemnitee
 shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to
 this Section 12, the Company shall, to the fullest extent not prohibited by law, have the burden of proving Indemnitee is not entitled
 to indemnification or advancement of Expenses, as the case may be.

 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To
 the fullest extent not prohibited by law, the Company shall be precluded from asserting in any judicial proceeding or arbitration
 commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable
 and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.
 If a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is entitled to indemnification,
 the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12,
 absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's
 statements not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification
 under applicable law.

(d) To
 the extent not prohibited by law, the Company shall indemnify Indemnitee against all Expenses that are incurred by Indemnitee in
 connection with any action for indemnification or advancement of Expenses from the Company under this Agreement or under any directors'
 and officers' liability insurance policies maintained by the Company to the extent Indemnitee is successful in such action,
 and, if requested by Indemnitee, shall (as soon as reasonably practicable, but in any event no later than 90 days, after receipt
 by the Company of a written request therefor) advance such Expenses to Indemnitee, subject to the provisions of Section 8.

(e) Notwithstanding
 anything in this Agreement to the contrary, no determination as to entitlement to indemnification shall be required to be made prior
 to the final disposition of the Proceeding.

13. <u>Contribution</u>.
 To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee,
 the Company, in lieu of indemnifying Indemnitee, shall contribute to the amounts incurred by Indemnitee, whether for Expenses, judgments,
 fines or amounts paid or to be paid in settlement, in connection with any claim relating to an indemnifiable event under this Agreement,
 in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i)
 the relative benefits received by the Company and Indemnitee as a result of the events and transactions giving rise to such Proceeding;
 and (ii) the relative fault of Indemnitee and the Company (and its other directors, officers, employees and agents) in connection
 with such events and transactions.

14. <u>Non-exclusivity</u>.
 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive
 of any other rights to which Indemnitee may at any time be entitled under applicable law, the Articles, any agreement, a vote of
 shareholders or a resolution of directors, or otherwise. To the extent that a change in Cayman Islands law, whether by statute or
 judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Articles
 and this Agreement, it is the intent of the Parties that Indemnitee shall enjoy by this Agreement the greater benefits so afforded
 by such change, subject to the restrictions expressly set forth herein or therein. Except as expressly set forth herein, no right
 or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative
 and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. Except
 as expressly set forth herein, the assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
 concurrent assertion or employment of any other right or remedy.

15. <u>No Duplication of Payments</u>. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable
 hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received payment
 for such amounts under any insurance policy, contract, agreement or otherwise.

16. <u>Insurance</u>.
 To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, trustees, general
 partners, managing members, officers, employees, agents or fiduciaries of the Company or any other Enterprise, Indemnitee shall be
 covered by such policy or policies to the same extent as the most favorably-insured Persons under such policy or policies in a comparable
 position.

17. <u>Subrogation.</u> In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the
 rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including
 execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

18. <u>Services to the Company</u>. Indemnitee agrees to serve as a director or officer of the Company or, at the request of the Company, as a director,
 trustee, general partner, managing member, officer, employee, agent or fiduciary of another Enterprise, for so long as Indemnitee
 is duly elected or appointed or until Indemnitee tenders Indemnitee's resignation or is removed from such position. Indemnitee
 may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed
 by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position.
 This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and
 Indemnitee. Indemnitee specifically acknowledges that any employment with the Company (or any of its subsidiaries or any Enterprise)
 is at will, and Indemnitee may be discharged at any time for any reason, with or without cause, with or without notice, except as
 may be otherwise expressly provided in any executed, written employment contract between Indemnitee and the Company (or any of its
 subsidiaries or any Enterprise), any existing formal severance policies adopted by the Company's board of directors or, with
 respect to service as a director or officer of the Company, the Articles or Cayman Islands law. No such document shall be subject
 to any oral modification thereof.

19. <u>Duration.</u> This Agreement shall continue until and terminate upon the later of (a) ten years after the date that Indemnitee shall have ceased
 to serve as a director or officer of the Company or as a director, trustee, general partner, managing member, officer, employee,
 agent or fiduciary of any other Enterprise, as applicable; or (b) one year after the final termination of any Proceeding, including
 any appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder
 and of any proceeding commenced by Indemnitee pursuant to Section 12 relating thereto.

 

 

20. <u>Successors.</u> This Agreement shall be binding upon the Company and its successors and assigns, including any direct or indirect successor,
 by purchase, merger, consolidation or otherwise, to all or substantially all of the business or assets of the Company, and shall
 inure to the benefit of Indemnitee and Indemnitee's heirs, executors and administrators. The Company shall require and cause
 any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business
 or assets of the Company, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to
 the same extent that the Company would be required to perform if no such succession had taken place. The Company shall require and
 cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the
 business or assets of the Company, by written agreement, expressly to assume and agree to perform this Agreement in the same manner
 and to the same extent that the Company would be required to perform if no such succession had taken place. Other than as set forth
 herein, no Party shall have any power or any right to assign or transfer, in whole or in part, this Agreement, or any of its rights
 or any of its obligations hereunder, including, without limitation, any right to pursue any claim for damages pursuant to this Agreement
 or the transactions contemplated herein, or to pursue any claim for any breach or default of this Agreement, or any right arising
 from the purported assignor's due performance of its obligations hereunder, without the prior written consent of the other
 Party and any such purported assignment in contravention of the provisions herein shall be null and void and of no force or effect.

21. <u>Severability; Limitation.</u> Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to
 do any act in violation of applicable law. All obligations of the Company hereunder shall be subject to any limitations in, and any
 requirements of, the laws of the Cayman Islands as it may be in place at the applicable time. The Company's inability, pursuant
 to court order or other applicable law, to perform its obligations under this Agreement shall not constitute a breach of this Agreement.
 If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
 (i) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion
 of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
 illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent
 permitted by law; (ii) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law
 and to give the maximum effect to the intent of the Parties; and (iii) to the fullest extent possible, the provisions of this Agreement
 (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal
 or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
 thereby.

22. <u>Enforcement.</u> The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby
 in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying
 upon this Agreement in serving as a director or officer of the Company.

23. <u>Entire Agreement.</u> This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and
 supersedes all prior agreements and understandings, oral, written and implied, between the Parties with respect to the subject matter
 hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Articles and applicable law.

24. <u>Modification and Waiver.</u> No supplement, modification or amendment to this Agreement shall be binding unless executed in writing by both Parties.
 No amendment, alteration or repeal of this Agreement shall adversely affect any right of Indemnitee under this Agreement in respect
 of any action taken or omitted by such Indemnitee in Indemnitee's Corporate Status prior to such amendment, alteration or repeal.
 No waiver of any of the provisions of this Agreement shall constitute or be deemed a waiver of any other provision of this Agreement
 nor shall any waiver constitute a continuing waiver.

 

 

25. <u>Governing Law and Waiver of Jury Trial.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined, and this Agreement
 shall be governed by and construed and interpreted in accordance with the laws of the State of New Yok, in each case as in effect
 from time to time and as the same may be amended from time to time.

(b) SUBJECT
 TO SECTION 26, EACH PARTY AGREES THAT ALL LEGAL PROCEEDINGS CONCERNING THIS AGREEMENT SHALL BE COMMENCED SOLELY IN THE FEDERAL COURTS
 OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF NEW YORK, IN EACH CASE LOCATED IN NEW YORK CITY, NEW YORK (THE "SELECTED
 COURTS"). EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE SELECTED COURTS FOR THE ADJUDICATION
 OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH
 RESPECT TO THE ENFORCEMENT OF THE RIGHTS OF A PARTY UNDER THIS AGREEMENT), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT
 IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH SELECTED COURTS, OR SUCH
 SELECTED COURTS ARE IMPROPER OR INCONVENIENT VENUE FOR SUCH PROCEEDING. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF
 PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED
 MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT
 AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
 SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

(c) TO
 THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
 OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES
 THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
 NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
 BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 25(c).

(d) Subject
 to the provisions of Section 26, if any Party shall commence an action or proceeding to enforce any provisions of this Agreement,
 then the prevailing Party in such action or proceeding shall be reimbursed by the other Party for its attorney's fees and other
 costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

26. <u>Arbitration.</u> Any controversy, claim or dispute arising out of or relating to this Agreement shall be resolved by arbitration in New York City,
 New York pursuant to then-prevailing National Rules for the Resolution of Employment Disputes of the American Arbitration Association.
 The arbitration shall be conducted by three arbitrators, with one arbitrator selected by each Party and the third arbitrator selected
 by the two arbitrators so selected by the Parties. The arbitrators shall be bound to follow the applicable Agreement provisions in
 adjudicating the dispute. It is agreed by both Parties that the arbitrators' decision is final, and that no Party may take
 any action, judicial or administrative, to overturn such decision. The judgment rendered by the arbitrators may be entered in the
 Selected Courts. Each Party will pay its own expenses of arbitration and the expenses of the arbitrators will be equally shared provided
 that, if in the opinion of the arbitrators any claim, defense, or argument raised in the arbitration was unreasonable, the arbitrators
 may assess all or part of the expenses of the other Party (including reasonable attorneys' fees) and of the arbitrators as
 the arbitrators deem appropriate. The arbitrators may not award either Party punitive or consequential damages.

27. <u>General Remedies.</u> Each Party acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the other Party,
 and thus each Party acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and
 agrees, in the event of a breach or threatened breach by such Party of the provisions of this Agreement, that the other Party shall
 be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein,
 to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms
 and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

28. <u>Expenses.</u> Other than as specifically set forth herein, each of the Parties will bear their own respective expenses, including legal, accounting
 and professional fees, incurred in connection with this Agreement and the transactions contemplated herein.

29. <u>Notices.</u> All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other Party, or
 by registered or certified mail, return receipt requested, postage prepaid, or by email with return receipt requested and received
 or nationally recognized overnight courier service, addressed as set forth below or to such other address as either Party shall have
 furnished to the other in writing in accordance herewith. All notices, requests, demands and other communications shall be deemed
 to have been duly given (i) when delivered by hand, if personally delivered, (ii) when delivered by courier or overnight mail, if
 delivered by commercial courier service or overnight mail, and (iii) on receipt of confirmed delivery, if sent by email.

 

If to the Company:

 

Center Holdings Inc.

Attn: Yu Asano

Realize Sakaisuji-Honmachi Building Room 507, 1-5-31 Kyutaromachi, Chuo-ku,

Osaka City, Osaka, 541-0056, Japan,

Email: [______________]

With a copy, which shall not constitute notice, to: [___________________]

Attn: [______________]

[___________________]

[___________________]

Email: [______________]

If to Indemnitee, to the address for notice as set forth in the books and records of the Company.

30. <u>Headings</u>.
 The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or
 interpretation of this Agreement.

31. <u>Counsel</u>.
 The Parties acknowledge and agree that [______________] ("Counsel") has acted as legal counsel to the Company, and that
 Counsel has prepared this Agreement at the request of the Company, and that Counsel is not legal counsel to Indemnitee individually.
 Each of the Parties acknowledges and agrees that they are aware of, and have consented to, the Counsel acting as legal counsel to
 the Company and preparing this Agreement, and that Counsel has advised each of the Parties to retain separate counsel to review the
 terms and conditions of this Agreement and the other documents to be delivered in connection herewith, and each Party has either
 waived such right freely or has otherwise sought such additional counsel as it has deemed necessary. Each of the Parties acknowledges
 and agrees that Counsel does not owe any duties to Indemnitee in Indemnitee's individual capacity in connection with this Agreement
 and the transactions contemplated herein. Each of the Parties hereby waives any conflict of interest which may apply with respect
 to Counsel's actions as set forth herein, and the Parties confirm that the Parties have previously negotiated the material
 terms of the agreements as set forth herein.

32. <u>Rule of Construction</u>. The general rule of construction for interpreting a contract, which provides that the provisions of a contract
 should be construed against the Party preparing the contract, is waived by the Parties hereto. Each Party acknowledges that such
 Party was represented by separate legal counsel in this matter who participated in the preparation of this Agreement or such Party
 had the opportunity to retain counsel to participate in the preparation of this Agreement but elected not to do so.

33. <u>Execution in Counterparts, Electronic Transmission</u>. This Agreement may be executed in any number of counterparts, each of which shall be
 deemed an original. The signature of any Party which is transmitted by any reliable electronic means such as, but not limited to,
 a photocopy, electronically scanned or facsimile machine, for purposes hereof, is to be considered as an original signature, and
 the document transmitted is to be considered to have the same binding effect as an original signature or an original document.

 

*[Signatures appear on following page]*

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| Center Holdings Inc. | Center Holdings Inc. |
| By: |  |
| Name: | Yu Asano |
| Title: | Chief Executive Officer |
| [_______________] | [_______________] |
| By: |  |
| Name: | [____________________] |
| Address for notices: | Address for notices: |
| [__________________] | [__________________] |

---

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

---

| | |
|:---|:---|
| ![](ex23-1_001.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Onestop Assurance PAC**<br> **10 Anson Road**<br> **#06-15 International Plaza**<br> **Singapore 079903** <br> **Email: <u>audit@onestop-ca.com</u>**<br> **Website: <u>www.onestop-ca.com</u>** |

---

We consent to the inclusion of our report dated October 21, 2024, except for Note 10, 16 and 18, as to which the date is May 2, 2025 in this Registration Statement on Amendment No. 1 to Form F-1, with respect to the consolidated financial statements of Center Holding Inc. and its subsidiaries. We also consent to the reference to our firm under the heading "Experts" in this Registration Statement.

/s/ Onestop Assurance PAC

Singapore

June 13, 2025

## Exhibit 23.3

**Exhibit 23.3**

![](ex23-3_001.jpg)

June 13, 2025

**LETTER OF CONSENT**

Ladies and Gentlemen:

We hereby consent to the reference to our firm's name under the captions of "Enforceability of Civil Liabilities" and "Legal Matters" in the registration statement of Center Holdings Inc., as amended from time to time (the "Registration Statement"), and the use of this consent letter as an exhibit to the Registration Statement. Despite such consent, we do not admit that we come within the category of persons where consent is required under Section 7 of the Securities Act or the rules and regulations of the Securities and Exchange Commission.

Sincerely yours,

*/s/ TMI Associates*

## Exhibit 99.1

**Exhibit 99.1**

**CODE OF BUSINESS CONDUCT AND ETHICS**

**OF**

**CENTER HOLDINGS INC.**

**INTRODUCTION**

**Purpose**

This Code of Business Conduct and Ethics contains general guidelines for conducting the business of Center Holdings Inc., an exempted company limited by shares incorporated under the laws of the Cayman Islands (the "<u>Company</u>"), consistent with the highest standards of business ethics. To the extent this Code requires a higher standard than required by commercial practice or applicable laws, rules or regulations, we adhere to these higher standards.

This Code applies to all of the directors, officers, and employees of the Company and its subsidiaries (which, unless the context otherwise requires, are collectively referred to as the "Company" in this Code). We refer to all persons covered by this Code as "<u>Company employees</u>" or simply "<u>employees</u>." We also refer to our chief executive officer and our chief financial officer as our "<u>principal financial officers</u>."

**Seeking Help and Information**

This Code is not intended to be a comprehensive rulebook and cannot address every situation that you may face. If you feel uncomfortable about a situation or have any doubts about whether it is consistent with the Company's ethical standards, seek help. We encourage you to contact your supervisor for help first. If your supervisor cannot answer your question or if you do not feel comfortable contacting your supervisor, contact the Compliance Officer of the Company, who shall be a person appointed by the Board of Directors of the Company. Upon the effectiveness of the Company's registration statement on Form F-1 for the Company's initial public offering, the Chief Financial Officer of the Company shall be appointed by the Board of Directors of the Company as the Compliance Officer for the Company. The Company will notify you if the Board of Directors appoints a different Compliance Officer. You may remain anonymous and will not be required to reveal your identity in your communication to the Company.

**Reporting Violations of the Code**

All employees have a duty to report any known or suspected violation of this Code, including any violation of the laws, rules, regulations or policies that apply to the Company. If you know of or suspect a violation of this Code, immediately report the conduct to your supervisor. Your supervisor will contact the Compliance Officer, who will work with you and your supervisor to investigate the matter. If you do not feel comfortable reporting the matter to your supervisor or you do not get a satisfactory response, you may contact the Compliance Officer directly. Employees making a report need not leave their name or other personal information and reasonable efforts will be used to conduct the investigation that follows from the report in a manner that protects the confidentiality and anonymity of the employee submitting the report. All reports of known or suspected violations of the law or this Code will be handled sensitively and with discretion. Your supervisor, the Compliance Officer and the Company will protect your confidentiality to the extent possible, consistent with law and the Company's need to investigate your report.

It is the Company policy that any employee who violates this Code will be subject to appropriate discipline, which may include termination of employment. This determination will be based upon the facts and circumstances of each particular situation. An employee accused of violating this Code will be given an opportunity to present his or her version of the events at issue prior to any determination of appropriate discipline. Employees who violate the law or this Code may expose themselves to substantial civil damages, criminal fines and prison terms. The Company may also face substantial fines and penalties and many incur damage to its reputation and standing in the community. Your conduct as a representative of the Company, if it does not comply with the law or with this Code, can result in serious consequences for both you and the Company.

**Policy Against Retaliation**

The Company prohibits retaliation against an employee who, in good faith, seeks help or reports known or suspected violations. Any reprisal or retaliation against an employee because the employee, in good faith, sought help or filed a report will be subject to disciplinary action, including potential termination of employment.

**Waivers of the Code**

Waivers of this Code for employees may be made only by an executive officer of the Company. Any waiver of this Code for our directors, executive officers or other principal financial officers may be made only by our Board of Directors or the appropriate committee of our Board of Directors and will be disclosed to the public as required by law or the rules of the Nasdaq Capital Market.

**CONFLICTS OF INTEREST**

**Identifying Potential Conflicts of Interest**

A conflict of interest can occur when an employee's private interest interferes, or appears to interfere, with the interests of the Company as a whole. You should avoid any private interest that influences your ability to act in the interests of the Company or that makes it difficult to perform your work objectively and effectively.

Identifying potential conflicts of interest may not always be clear-cut. The following situations are examples of conflicts of interest:

● <u>Outside Employment</u>. No employee should be employed by, serve as a director of, or provide any services not in his or her capacity as a Company employee to a company that is a material customer, supplier, or competitor of the Company.

● <u>Improper Personal Benefits</u>. No employee should obtain any material (as to him or her) personal benefits or favors because of his or her position with the Company. Please see "Gifts and Entertainment" below for additional guidelines in this area.

● <u>Financial Interests</u>. No employee should have a significant financial interest (ownership or otherwise) in any company that is a material customer, supplier or competitor of the Company. A "significant financial interest" means (i) ownership of greater than 1% of the equity of a material customer, supplier or competitor or (ii) an investment in a material customer, supplier or competitor that represents more than 5% of the total assets of the employee.

● <u>Loans or Other Financial Transactions</u>. No employee should obtain loans or guarantees of personal obligations from, or enter into any other personal financial transaction with, any company that is a material customer, supplier or competitor of the Company. This guideline does not prohibit arms-length transactions with banks, brokerage firms or other financial institutions.

● <u>Service on Boards and Committees</u>. No employee should serve on a board of directors or trustees or on a committee of any entity (whether profit or not-for-profit) whose interests reasonably would be expected to conflict with those of the Company.

● <u>Actions of Family Members</u>. The actions of family members outside the workplace may also give rise to the conflicts of interest described above because they may influence an employee's objectivity in making decisions on behalf of the Company. For purposes of this Code, " <u>family members</u> " include your spouse or life-partner, brothers, sisters and parents, in-laws and children whether such relationships are by blood or adoption.

For purposes of this Code, a company is a "material" customer if that company has made payments to the Company in the past year in excess of US$100,000 or 10% of the customer's gross revenues, whichever is greater. A company is a "material" supplier if that company has received payments from the Company in the past year in excess of US$100,000 or 10% of the supplier's gross revenues, whichever is greater. A company is a "material" competitor if that company competes in the Company's line of business and has annual gross revenues from such line of business in excess of US$500,000. If you are uncertain whether a particular company is a material customer, supplier or competitor, please contact the Compliance Officer for assistance.

**Disclosure of Conflicts of Interest**

The Company requires that employees disclose any situations that reasonably would be expected to give rise to a conflict of interest. If you suspect that you have a conflict of interest, or something that others could reasonably perceive as a conflict of interest, you must report it to your supervisor or the Compliance Officer. Your supervisor and the Compliance Officer will work with you to determine whether you have a conflict of interest and, if so, how best to address it. Although conflicts of interest are not automatically prohibited, they are not desirable and may only be waived as described in "Waivers of the Code" above.

**CORPORATE OPPORTUNITIES**

As an employee of the Company, you have an obligation to advance the Company's interests when the opportunity to do so arises. If you discover or are presented with a business opportunity through the use of corporate property, information, or because of your position with the Company, you should first present the business opportunity to the Company before pursuing the opportunity in your individual capacity. No employee may use corporate property, information, or his or her position with the Company for personal gain or should compete with the Company.

You should disclose to your supervisor the terms and conditions of each business opportunity covered by this Code that you wish to pursue. Your supervisor will contact the Compliance Officer and the appropriate management personnel to determine whether the Company wishes to pursue the business opportunity. If the Company waives its right to pursue the business opportunity, you may pursue the business opportunity on the same terms and conditions as originally proposed and consistent with the other ethical guidelines set forth in this Code.

**Confidential Information and Company Property**

Employees have access to a variety of confidential information while employed at the Company. Confidential information includes all non-public information that might be of use to competitors, or, if disclosed, harmful to the Company or its customers. Every employee has a duty to respect and safeguard the confidentiality of the Company's information and the information of our suppliers and customers, except when disclosure is authorized or legally mandated. In addition, you must refrain from using any confidential information from any previous employment if, in doing so, you could reasonably be expected to breach your duty of confidentiality to your former employers. An employee's obligation to protect confidential information continues after he or she leaves the Company. Unauthorized disclosure of confidential information could cause competitive harm to the Company or its customers and could result in legal liability to you and the Company.

Employees also have a duty to protect the Company's intellectual property and other business assets. The intellectual property, business systems and the security of the Company property are critical to the Company.

Any questions or concerns regarding whether disclosure of Company information is legally mandated should be promptly referred to the Compliance Officer.

**Safeguarding Confidential Information and Company Property**

Care must be taken to safeguard and protect confidential information and Company property. Accordingly, the following measures should be adhered to:

● The Company's employees should conduct their business and social activities so as not to risk inadvertent disclosure of confidential information. For example, when not in use, confidential information should be secretly stored. Also, review of confidential documents or discussion of confidential subjects in public places (e.g., airplanes, trains, taxis, buses, etc.) should be conducted so as to prevent overhearing or other access by unauthorized persons.

● Within the Company's offices, confidential matters should not be discussed within hearing range of visitors or others not working on such matters.

● Confidential matters should not be discussed with other employees not working on such matters or with friends or relatives including those living in the same household as a Company employee.

● The Company's employees are only to access, use, and disclose confidential information that is necessary for them to have in the course of performing their duties. They are not to disclose confidential information to other employees or contractors at the Company unless it is necessary for those employees or contractors to have such confidential information in the course of their duties.

● The Company's files, personal computers, networks, software, internet access, internet browser programs, emails, voice mails, and other business equipment (e.g. desks and cabinets) and resources are provided for business use and they are the exclusive property of the Company. Misuse of such Company property is not tolerated.

**COMPETITION AND FAIR DEALING**

All employees are obligated to deal fairly with fellow employees and with the Company's customers, suppliers and competitors. Employees should not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair-dealing practice.

**Relationships with Customers**

Our business success depends upon our ability to foster lasting customer relationships. The Company is committed to dealing with customers fairly, honestly, and with integrity. Specifically, you should keep the following guidelines in mind when dealing with customers:

● Information we supply to customers should be accurate and complete to the best of our knowledge. Employees should not deliberately misrepresent information to customers.

● Employees should not refuse to sell, service, or maintain products the Company has produced simply because a customer is buying products from another supplier.

● Customer entertainment should not exceed reasonable and customary business practice. Employees should not provide entertainment or other benefits that could be viewed as an inducement to or a reward for customer purchase decisions. Please see "Gifts and Entertainment" below for additional guidelines in this area.

**Relationships with Suppliers**

The Company deals fairly and honestly with its suppliers. This means that our relationships with suppliers are based on price, quality, service, and reputation, among other factors. Employees dealing with suppliers should carefully guard their objectivity. Specifically, no employee should accept or solicit any personal benefit from a supplier or potential supplier that might compromise, or appear to compromise, their objective assessment of the supplier's products and prices. Employees can give or accept promotional items of nominal value or moderately scaled entertainment within the limits of responsible and customary business practice. Please see "Gifts and Entertainment" below for additional guidelines in this area.

**Relationships with Competitors**

The Company is committed to free and open competition in the marketplace. Employees should avoid actions that would be contrary to laws governing competitive practices in the marketplace, including antitrust laws. Such actions include misappropriation and/or misuse of a competitor's confidential information or making false statements about the competitor's business and business practices.

**PROTECTION AND USE OF COMPANY ASSETS**

Employees should protect the Company's assets and ensure their efficient use for legitimate business purposes only. Theft, carelessness and waste have a direct impact on the Company's profitability. The use of Company funds or assets, whether or not for personal gain, for any unlawful or improper purpose is prohibited.

To ensure the protection and proper use of the Company's assets, each employee should:

● exercise reasonable care to prevent theft, damage or misuse of Company property;

● report the actual or suspected theft, damage or misuse of Company property to a supervisor;

● use the Company's telephone system, other electronic communication services, written materials and other property primarily for business-related purposes;

● safeguard all electronic programs, data, communications and written materials from inadvertent access by others; and

● use Company property only for legitimate business purposes, as authorized in connection with your job responsibilities.

Employees should be aware that Company property includes all data and communications transmitted or received to or by, or contained in, the Company's electronic or telephonic systems. Company property also includes all written communications. Employees and other users of Company property should have no expectation of privacy with respect to these communications and data. To the extent permitted by law, the Company has the ability, and reserves the right, to monitor all electronic and telephonic communication. These communications may also be subject to disclosure to law enforcement or government officials.

**GIFTS AND ENTERTAINMENT**

The giving and receiving of gifts is a common business practice. Appropriate business gifts and entertainment are welcome courtesies designed to build relationships and understanding among business partners. However, gifts and entertainment should not compromise, or appear to compromise, your ability to make objective and fair business decisions.

It is your responsibility to use good judgment in this area. As a general rule, you may give or receive gifts or entertainment to or from customers or suppliers only if the gift or entertainment would not be viewed as an inducement to or reward for any particular business decision. All gifts and entertainment expenses should be properly accounted for on expense reports. The following specific examples may be helpful:

● <u>Meals and Entertainment</u>. You may occasionally accept or give meals, refreshments or other entertainment if:

● The items are of reasonable value;

● The purpose of the meeting or attendance at the event is business related; and

● The expenses would be paid by the Company as a reasonable business expense if not paid for by another party.

Entertainment of reasonable value may include food and tickets for sporting and cultural events if they are generally offered to other customers, suppliers or vendors.

● <u>Advertising and Promotional Materials</u>. You may occasionally accept or give advertising or promotional materials of nominal value.

● <u>Personal Gifts</u>. You may accept or give personal gifts of reasonable value that are related to recognized special occasions such as a graduation, promotion, new job, wedding, retirement or a holiday. A gift is also acceptable if it is based on a family or personal relationship and unrelated to the business involved between the individuals.

● <u>Gifts Rewarding Service or Accomplishment</u>. You may accept a gift from a civic, charitable or religious organization specifically related to your service or accomplishment.

You must be particularly careful that gifts and entertainment are not construed as bribes, kickbacks, or other improper payments. See "The Foreign Corrupt Practices Act" below for a more detailed discussion of our policies regarding giving or receiving gifts related to business transactions.

You should make every effort to refuse or return a gift that is beyond these permissible guidelines. If it would be inappropriate to refuse a gift or you are unable to return a gift, you should promptly report the gift to your supervisor. Your supervisor will bring the gift to the attention of the Compliance Officer, who may require you to donate the gift to an appropriate community organization. If you have any questions about whether it is permissible to accept a gift or something else of value, contact your supervisor or the Compliance Officer for additional guidance.

**COMPANY RECORDS**

Accurate and reliable records are crucial to our business. Our records are the basis of our earnings statements, financial reports and other disclosures to the public and guide our business decision-making and strategic planning. Company records include booking information, payroll, timecards, travel and expense reports, e-mails, accounting and financial data, measurement and performance records, electronic data files and all other records maintained in the ordinary course of our business.

All Company records must be complete, accurate and reliable in all material respects. Undisclosed or unrecorded funds, payments or receipts are inconsistent with our business practices and are prohibited. You are responsible for understanding and complying with our record keeping policy. Ask your supervisor if you have any questions.

**ACCURACY OF FINANCIAL REPORTS AND OTHER PUBLIC COMMUNICATIONS**

As a public company we are subject to various securities laws, regulations and reporting obligations. These laws, regulations and obligations and our policies require the disclosure of accurate and complete information regarding the Company's business, financial condition and results of operations. Inaccurate, incomplete or untimely reporting will not be tolerated and can severely damage the Company and result in legal liability.

It is essential that the Company's financial records, including all filings with the Securities and Exchange Commission ("SEC") be accurate and timely. Accordingly, in addition to adhering to the conflict of interest policy and other policies and guidelines in this Code, the principal financial officers and other senior financial officers must take special care to exhibit integrity at all times and to instill this value within their organizations. In particular, these senior officers must ensure their conduct is honest and ethical that they abide by all public disclosure requirements by providing full, fair, accurate, timely and understandable disclosures, and that they comply with all other applicable laws and regulations. These financial officers must also understand and strictly comply with generally accepted accounting principles in the U.S. and all standards, laws and regulations for accounting and financial reporting of transactions, estimates and forecasts.

In addition, U.S. federal securities law requires the Company to maintain proper internal books and records and to devise and maintain an adequate system of internal accounting controls. The SEC has supplemented the statutory requirements by adopting rules that prohibit (1) any person from falsifying records or accounts subject to the above requirements and (2) officers or directors from making any materially false, misleading, or incomplete statement to an accountant in connection with an audit or any filing with the SEC. These provisions reflect the SEC's intent to discourage officers, directors, and other persons with access to the Company's books and records from taking action that might result in the communication of materially misleading financial information to the investing public.

**COMPLIANCE WITH LAWS AND REGULATIONS**

Each employee has an obligation to comply with all laws, rules and regulations applicable to the Company's operations. These include, without limitation, laws covering bribery and kickbacks, copyrights, trademarks and trade secrets, information privacy, insider trading, illegal political contributions, antitrust prohibitions, foreign corrupt practices, offering or receiving gratuities, environmental hazards, employment discrimination or harassment, occupational health and safety, false or misleading financial information or misuse of corporate assets. You are expected to understand and comply with all laws, rules and regulations that apply to your job position. If any doubt exists about whether a course of action is lawful, you should seek advice from your supervisor or the Compliance Officer.

**COMPLIANCE WITH INSIDER TRADING LAWS**

The Company has an insider trading policy, which may be obtained from the Compliance Officer. The following is a summary of some of the general principles relevant to insider trading, and should be read in conjunction with the aforementioned specific policy.

Company employees are prohibited from trading in shares or other securities of the Company while in possession of material, nonpublic information about the Company. In addition, Company employees are prohibited from recommending, "tipping" or suggesting that anyone else buy or sell shares or other securities of the Company on the basis of material, nonpublic information. Company employees who obtain material nonpublic information about another company in the course of their employment are prohibited from trading in shares or securities of the other company while in possession of such information or "tipping" others to trade on the basis of such information. Violation of insider trading laws can result in severe fines and criminal penalties, as well as disciplinary action by the Company, up to and including termination of employment.

Information is "non-public" if it has not been made generally available to the public by means of a press release or other means of widespread distribution. Information is "material" if a reasonable investor would consider it important in a decision to buy, hold or sell stock or other securities. As a rule of thumb, any information that would affect the value of stock or other securities should be considered material. Examples of information that is generally considered "material" include:

● Financial results or forecasts, or any information that indicates the Company's financial results may exceed or fall short of forecasts or expectations;

● Important new products or services;

● Pending or contemplated acquisitions or dispositions, including mergers, tender offers or joint venture proposals;

● Possible management changes or changes of control;

● Pending or contemplated public or private sales of debt or equity securities;

● Acquisition or loss of a significant customer or contract;

● Significant write-offs;

● Initiation or settlement of significant litigation; and

● Changes in the Company's auditors or a notification from its auditors that the Company may no longer rely on the auditor's report.

The laws against insider trading are specific and complex. Any questions about information you may possess or about any dealings you have had in the Company's securities should be promptly brought to the attention of the Compliance Officer.

**PUBLIC COMMUNICATIONS AND PREVENTION OF SELECTIVE DISCLOSURE**

**Public Communications Generally**

The Company places a high value on its credibility and reputation in the community. What is written or said about the Company in the news media and investment community directly impacts our reputation, positively or negatively. Our policy is to provide timely, accurate and complete information in response to public requests (media, analysts, etc.), consistent with our obligations to maintain the confidentiality of competitive and proprietary information and to prevent selective disclosure of market-sensitive financial data. To ensure compliance with this policy, all news media or other public requests for information regarding the Company should be directed to the Company's Investor Relations Department. The Investor Relations Department will work with you and the appropriate personnel to evaluate and coordinate a response to the request.

**Prevention of Selective Disclosure**

Preventing selective disclosure is necessary to comply with United States securities laws and to preserve the reputation and integrity of the Company as well as that of all persons affiliated with it. "Selective disclosure" occurs when any person provides potentially market-moving information to selected persons before the news is available to the investing public generally. Selective disclosure is a crime under United States law and the penalties for violating the law are severe.

The following guidelines have been established to avoid improper selective disclosure. Every employee is required to follow these procedures:

● All contact by the Company with investment analysts, the press and/or members of the media shall be made through the chief executive officer, chief financial officer or persons designated by them (collectively, the "Media Contacts").

● Other than the Media Contacts, no officer, director or employee shall provide any information regarding the Company or its business to any investment analyst or member of the press or media.

● All inquiries from third parties, such as industry analysts or members of the media, about the Company or its business should be directed to a Media Contact. All presentations to the investment community regarding the Company will be made by us under the direction of a Media Contact.

● Other than the Media Contacts, any employee who is asked a question regarding the Company or its business by a member of the press or media shall respond with "No comment" and forward the inquiry to a Media Contact.

These procedures do not apply to the routine process of making previously released information regarding the Company available upon inquiries made by investors, investment analysts and members of the media.

Please contact the Compliance Officer if you have any questions about the scope or application of the Company's policies regarding selective disclosure.

**THE FOREIGN CORRUPT PRACTICES ACT**

**Foreign Corrupt Practices Act**

The Foreign Corrupt Practices Act (the "FCPA") prohibits the Company and its employees and agents from offering or giving money or any other item of value to win or retain business or to influence any act or decision of any governmental official, political party, candidate for political office or official of a public international organization. Stated more concisely, the FCPA prohibits the payment of bribes, kickbacks or other inducements to foreign officials. This prohibition also extends to payments to a sales representative or agent if there is reason to believe that the payment will be used indirectly for a prohibited payment to foreign officials. Violation of the FCPA is a crime that can result in severe fines and criminal penalties, as well as disciplinary action by the Company, up to and including termination of employment.

Certain small facilitation payments to foreign officials may be permissible under the FCPA if customary in the country or locality and intended to secure routine governmental action. Governmental action is "routine" if it is ordinarily and commonly performed by a foreign official and does not involve the exercise of discretion. For instance, "routine" functions would include setting up a telephone line or expediting a shipment through customs. To ensure legal compliance, all facilitation payments must receive prior written approval from the Compliance Officer and must be clearly and accurately reported as a business expense.

**ENVIRONMENT, HEALTH AND SAFETY**

The Company is committed to providing a safe and healthy working environment for its employees and to avoiding adverse impact and injury to the environment and the communities in which we do business. Company employees must comply with all applicable environmental, health and safety laws, regulations and Company standards. It is your responsibility to understand and comply with the laws, regulations and policies that are relevant to your job. Failure to comply with environmental, health and safety laws and regulations can result in civil and criminal liability against you and the Company, as well as disciplinary action by the Company, up to and including termination of employment. You should contact the Compliance Officer if you have any questions about the laws, regulations and policies that apply to you.

**Environment**

All Company employees should strive to conserve resources and reduce waste and emissions through recycling and other energy conservation measures. You have a responsibility to promptly report any known or suspected violations of environmental laws or any events that may result in a discharge or emission of hazardous materials. Employees whose jobs involve manufacturing have a special responsibility to safeguard the environment. Such employees should be particularly alert to the storage, disposal and transportation of waste, and handling of toxic materials and emissions into the land, water or air.

**Health and Safety**

The Company is committed not only to complying with all relevant health and safety laws, but also to conducting business in a manner that protects the safety of its employees. All employees are required to comply with all applicable health and safety laws, regulations and policies relevant to their jobs. If you have a concern about unsafe conditions or tasks that present a risk of injury to you, please report these concerns immediately to your supervisor or the Human Resources Department.

**EMPLOYMENT PRACTICES**

The Company pursues fair employment practices in every aspect of its business. The following is intended to be a summary of our employment policies and procedures. Copies of our detailed policies are available from the Human Resources Department. Company employees must comply with all applicable labor and employment laws, including anti-discrimination laws and laws related to freedom of association, privacy and collective bargaining. It is your responsibility to understand and comply with the laws, regulations and policies that are relevant to your job. Failure to comply with labor and employment laws can result in civil and criminal liability against you and the Company, as well as disciplinary action by the Company, up to and including termination of employment. You should contact the Compliance Officer or the Human Resources Department if you have any questions about the laws, regulations and policies that apply to you.

**Harassment and Discrimination**

The Company is committed to providing equal opportunity and fair treatment to all individuals on the basis of merit, without discrimination because of race, color, religion, national origin, gender (including pregnancy), sexual orientation, age, disability, veteran status or other characteristic protected by law. The Company prohibits harassment in any form, whether physical or verbal and whether committed by supervisors, non-supervisory personnel or non-employees. Harassment may include, but is not limited to, offensive sexual flirtations, unwanted sexual advances or propositions, verbal abuse, sexually or racially degrading words, or the display in the workplace of sexually suggestive objects or pictures.

If you have any complaints about discrimination or harassment, report such conduct to your supervisor or the Human Resources Department. All complaints will be treated with sensitivity and discretion. Your supervisor, the Human Resources Department and the Company will protect your confidentiality to the extent possible, consistent with law and the Company's need to investigate your concern. Where our investigation uncovers harassment or discrimination, we will take prompt corrective action, which may include disciplinary action by the Company, up to and including, termination of employment. The Company strictly prohibits retaliation against an employee who, in good faith, files a compliant.

Any member of management who has reason to believe that an employee has been the victim of harassment or discrimination or who receives a report of alleged harassment or discrimination is required to report it to the Human Resources Department immediately.

**CONCLUSION**

This Code of Business Conduct and Ethics contains general guidelines for conducting the business of the Company consistent with the highest standards of business ethics. If you have any questions about these guidelines, please contact your supervisor or the Compliance Officer. We expect all Company employees to adhere to these standards.

*This Code of Business Conduct and Ethics, as applied to the Company's principal financial officers, shall be the Company's "code of ethics" within the meaning of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder.*

*This Code and the matters contained herein are neither a contract of employment nor a guarantee of continuing Company policy. We reserve the right to amend, supplement or discontinue this Code and the matters addressed herein, without prior notice, at any time.*

## Exhibit 99.2

**Exhibit 99.2**

June 13, 2025

<u>Via EDGAR</u>

Division of Corporation Finance

Office of Technology

U.S. Securities and Exchange Commission

100 F Street, NE

Washington, D.C., 20549

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| | |
|:---|:---|
| Attention: | Joseph Cascarano |
|  | Robert Littlepage |
|  | Mariam Mansaray |
|  | Matthew Derby |

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| | |
|:---|:---|
| **Re:** | **Center Holdings Inc.** |
|  | **Registration Statement on Form F-1**<br> **File No. 333-286966** |
|  | **Request for Waiver and Representation under Item 8.A.4 of Form 20-F** |

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Ladies and Gentlemen:

The undersigned, Center Holdings Inc., a foreign private issuer organized under the laws of Cayman Islands (the "Company"), is submitting this letter to the U.S. Securities and Exchange Commission (the "Commission") in connection with the Company's registration statement on Form F-1, initially filed on May 2, 2025 (the "Registration Statement") relating to a proposed initial public offering and listing of the Company's Ordinary Shares in the United States.

The Company has included in the Registration Statement its audited consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States, as of May 31, 2024 and 2023, and for each of the two fiscal years ended May 31, 2024 and 2023, and unaudited interim consolidated financial statements as of November 30, 2024, and for each of the six-month periods ended November 30, 2024 and 2023.

The Company respectfully requests that the Commission waive the requirement of Item 8.A.4 of Form 20-F, which states that in the case of a company's initial public offering, the registration statement on Form F-1 must contain audited financial statements of a date not older than 12 months from the date of the offering (the "12-Month Requirement"). *See also* Division of Corporation Finance, *Financial Reporting Manual*, Section 6220.3.

The Company is submitting this waiver request pursuant to Instruction 2 to Item 8.A.4 of Form 20-F, which provides that the Commission will waive the 12-Month Requirement "in cases where the company is able to represent adequately to us that it is not required to comply with this requirement in any other jurisdiction outside the United States and that complying with this requirement is impracticable or involves undue hardship." *See also* the 2004 release entitled *International Reporting and Disclosure Issues in the Division of Corporation Finance* (available on the Commission's website at http://www.sec.gov/divisions/corpfin/internatl/cfirdissues1104.htm) by the staff of the Division of Corporation Finance of the Commission at Section III.B.c, in which the staff notes that:

"the instruction indicates that the staff will waive the 12-month requirement where it is not applicable in the registrant's other filing jurisdictions and is impracticable or involves undue hardship. As a result, we expect that the vast majority of IPOs will be subject only to the 15-month rule. The only times that we anticipate audited financial statements will be filed under the 12-month rule are when the registrant must comply with the rule in another jurisdiction, or when those audited financial statements are otherwise readily available."

In connection with this waiver request, the Company represents to the Commission that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Company is not required by any jurisdiction outside the United States to prepare consolidated financial statements audited under
 any generally accepted auditing standards for any interim period.

2. Full
 compliance with Item 8.A.4 of Form 20-F at present is impracticable and involves undue hardship for the Company.

3. The
 Company does not anticipate that its audited financial statements for the fiscal year ended May 31, 2025 will be available until
 September 2025.

4. In
 no event will the Company seek effectiveness of the Registration Statement if its audited financial statements are older than 15
 months at the time of the Company's initial public offering.

The Company will file this letter as an exhibit to the Registration Statement pursuant to Instruction 2 to Item 8.A.4 of Form 20-F.

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| |
|:---|
| Sincerely, |
| */s/ Yu Asano* |
| Yu Asano, Representative Director and Chief Executive Officer |

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