To Whom It May Concern
Today’s morning edition of the Asahi Shimbun reported that our company may have falsified its financial results through a scheme known as circular trading, allegedly inflating our sales by as much as 70%.
As announced in our "Notice Regarding Establishment of Third-Party Committee and Delay in Disclosure of First Quarter Financial Results for Fiscal Year Ending December 2025 Beyond 45 Days from Quarter End" dated April 25, 2025, we identified potential overstatement of revenues related to paid accounts for our AI GIJIROKU. Specifically, we found that some revenues recorded from orders received through certain sales partners may have been overstated, as the paid accounts were not actually being utilized. Consequently, we established a third-party committee to conduct an investigation. The committee's investigation is currently ongoing, and we have not yet ascertained the specific facts of the matter.
We will promptly disclose the results of the third-party committee's investigation upon receipt of their investigation report.
We deeply apologize to our shareholders, investors, market participants, business partners, and all other stakeholders for the significant concern and inconvenience this matter has caused.