米国証券取引所に提出されたように 2024 年 10 月 30 日発売。

登録番号 333 — [●]

アメリカ合衆国
証券取引委員会
ワシントン D. C. 20549

表F-1

登録声明
UNDER
1933 年の証券法

BloomZ Inc.
(登録者の正確な氏名はその定款に記載)

赤坂 4 — 5 — 19 東洋レコーディング 1F
〒 107 — 0052 東京都港区
日本
+ 81 050 — 3138 — 4984
（ 郵便番号を含む住所、市外局番を含む電話番号 ）

コーリンユニバーサル社です。
122 東 42^nd ストリート 18^{これは…。} フロア
ニューヨーク州 10168
電話番号： （800） 221 — 0102

(Name住所 （ 郵便番号を含む ） 、電話番号 エリアコードを含むサービス代理店の番号 ）

イェン 李Esq.
リサ · フォーヒトEsq. 

ハント·陶布マン·フィッシャーとLi有限責任会社 

950 3 番街 19 号^{これは…。} フロア 

ニューヨーク市郵便番号10022

212-530-2206

提案開始予定日 公開販売 ： この登録声明の有効日の直後。

本証券に登録されている場合 フォームは、 1933 年の証券法に基づく規則 415 に従って遅延または継続的に提供されます。 次のボックス」と

追加有価証券の登録のために提出する場合 証券法第 462 条 （ b ） に基づく募集については、以下のボックスにチェックし、証券法の一覧を記載してください。 同じオファリングの以前の有効登録ステートメントの登録ステートメント番号。↓ ↓

このフォームが発効後の修正案である場合 証券法規則 462 （ c ） に基づき、次のボックスをチェックし、証券法登録ステートメントをリストします。 同じオファリングの以前の有効登録ステートメントの番号

このフォームが発効後の修正案である場合 証券法規則 462 （ d ） に基づき、次のボックスをチェックし、証券法登録ステートメントをリストします。 同じオファリングの以前の有効登録ステートメントの番号

チェックマークで登録者が 1933 年証券法第 405 条に定義されている新興成長企業です。

新興成長企業

新興成長企業がその準備をする場合 米国 GAAP に準拠した財務諸表、登録者が延長移行を使用しないことを選択した場合はチェックマークで示します。 証券法第 7 条 （ a ） （ 2 ） （ B ） に基づいて定められた新規または改訂された財務会計基準を遵守するための期間 法案 ⇒

登録者はここにこの登録声明を修正します。 登録者は、特に明記した更なる修正を提出するまで、その有効日を延期するために必要とされる日付または日付 この登録声明は、その後、証券法第 8 条 （ a ） に従って効力を生じること、または 登録申告書が効力を生ずるまでの間、証券取引委員会がその規定に従って行動する 第 8 条 （ a ） 項は、決定する。

この情報の 暫定目論見書が完成しておらず、変更される場合があります。これらの有価証券は、登録申告書が提出されるまで販売できません。 米国証券取引委員会が有効です。本暫定目論見書は、売却の申し出ではなく、求めていません。 これらの有価証券の買入れの申し出または販売が許可されていない管轄区域において

41，000，000 株普通株式

この目論見書は 常時発売·転売合計41，000，000株普通株、額面$0.000002(“普通株”) 株式“)、BloomZ Inc.(”会社“、”私たち“、”私たち“または”私たち“)を通じて、販売 本募集明細書で決定された株主(各株主、1つの“売却株主”、および総称して“売却株主”と呼ぶ 株主“)(I)当社がホワイトライオンに発行可能な普通株式総数最大40，500，000株を含む 資本，本稿で述べた有限責任会社(“白獅子”)及び(Ii)当社は合計500，000株の普通株を発行する ネット1号金融証券会社(“ネットワーク1号”)とネットワーク1号のS従業員、アダム·パスホルク、カトリーナ·ゴードン、ダモン·テスタヴィッド(ネットワーク1号の“ネット1号株主”)に以下の項目に関する一部の尋ね人費用を支払う 当社と白獅子(“白獅子”)の間で2024年10月1日に締結された普通株購入協定 購入プロトコル“)(総称して”転売株式“と呼ぶ).

転売株式は、随時転売されます。 32 ページの「売却株主」に記載されている売却株主による時間。

再販株式は、 当社の発行済普通株式の数、および転売株式の販売、またはそれらの販売が行われる可能性のある認識は、 当社の普通株式の市場価格を低下させ、追加株式証券の売却による資本調達能力を損なう可能性があります。

本目論見書の対象となる特定の普通株式 ホワイトライオン購入契約に基づき、ホワイトライオンに発行されることがあります。 クレジット · エクイティ · ライン当該普通株式には、 （ a ） 当社が独自の裁量により選択することができる 4，000，000 株までの普通株式が含まれます。 ホワイトライオン購入契約に基づくコミットメント期間 （ 下記に定義 ） 中、随時ホワイトライオンに発行および販売すること （ 発行予定の普通株式が 1 株当たり 0.75 ドルで売却されると仮定 ） 、および （ b ） 50 万普通株式 （ 「コミットメント」 ） ホワイトライオン購入契約締結の対価としてホワイトライオンに発行可能 （ 株が 1 株当たり 0.75 ドルで販売されています ） 。見る > >株主売却 — ホワイトライオン取引」以下に説明します ホワイトライオン購入契約書とホワイトライオンに関する追加情報について。

発行可能普通株式の実数 ホワイトライオンへの株価は、ホワイトライオン購入によりホワイトライオンに売却された普通株式の当時の市場価格によって異なります。 ホワイトライオン購入契約に定められた更なる制限の対象となります。

本目論見書に基づく有価証券の販売は行いません。 売却株主による売却株式の収益は一切受けません。また、受付しません。 コミットメント株式の発行または販売による収益。ただし、当社から最大 3000万ドルの総収益を受け取ることがあります。 本目論見書の日付後、ホワイトライオン購入契約に基づきホワイトライオンに当社普通株式を売却すること。実際の ホワイトライオンからの収益は、販売された普通株式の数および普通株式の価格に応じて、この金額を下回る可能性があります。 株が売却される。

販売株主、またはその 各譲渡人、質権者、贈与者またはその他の利害関係者の後継者は、公的または私的を通じて転売株式を売却することができます。 現行市場価格、現行市場価格に関連する価格、または非公開交渉価格での取引です。ザ 売却株主は、本目論見書で提供される有価証券のいずれか、全部または全部を売却することがあり、いつ、どのように売却するかはわかりません。 売却株主は、本登記書の施行日以降に、本契約に基づく売却株式を売却することができます。 売却株主が再売却株式を売却する方法については、「株式売却計画」の項で詳しく説明します。 」と、 94 ページに掲載されている。ホワイトライオンは、証券法第 2 条 （a） （ 11 ） の意味における「引受人」です 行為。ネットワーク 1 の株主は、本法第 2 条 （ a ） （ 11 ） の意味において「引受人」とみなすこともあります。 証券法。

売却株主はすべての仲介を支払う 転売株式の販売に起因する手数料および手数料および類似の費用。費用 （ 証券手数料を除く ） を負担します。 手数料および手数料および類似の費用 ） 、法律手数料および会計手数料を含む、再販株式の登録に伴う費用。」と計画 配給」。

本目論見書および目論見書をご覧ください。 証券に投資する前に慎重に補足または修正してください当社の普通株式は、ナスダック資本市場で取引されています。 記号「 BLMZ 」。2024 年 10 月 30 日の当社普通株式の最終報告販売価格は 1 株当たり 0.824 ドルでした。

「私」は外国人 「新興成長企業」は、それぞれ連邦証券法で定義されるものであり、そのため、 公開会社の報告要件を削減する資格があります本稿の 7 ページから始まる開示をお読みください。 詳細は目論見書です

普通株式への投資 株式の転売には、投資全体を失うリスクを含む高いリスクが伴います。「リスク要因」を参照 転売株式を購入する前に考慮すべき要因について 10 ページから読みます。

米国証券取引所も 委員会、州証券委員会、その他の規制機関がこれらの証券を承認または承認しないか、または決定した この目論見書が真実または完全であれば反対の表現は刑事犯罪です。

本目論見書の日付は , 2024

目次ページ

本募集説明書について

本募集説明書は 売却株主は，売却株を構成する41，000，000株の普通株を随時任意の方法で提供することができる “流通計画”と題する節で述べる。あなたは本募集説明書に記載されている資料だけに依存しなければならない。 関連する証拠品、任意の目論見書の補充または修正、および参照によって組み込まれた文書、または私たちは持っている。 あなたが投資決定をする前にあなたを推薦しました。私たちも販売株主も誰にも提供することを許可していません 異なる情報ですもし誰かがあなたに違う情報や不一致の情報を提供したら、あなたはそれに依存してはいけない。この募集書は 募集説明書のいかなる補充や修正も，売却または転売を招待する要約にはならない. 本募集説明書、任意の募集説明書は、任意の司法管区において、または誰かによって提供される株式、または 当該管轄区域内で上記要約又は誘致要約を作成することは違法である。これらの情報を仮定すべきではありません 本募集説明書、任意の目論見書の補充または改訂、および私たちが以前に提出したものに含まれます。 米国証券取引委員会(“米国証券取引委員会”)は、表紙の日付ではなく、正確な任意の日付である 適用される書類。疑問を免れるため、年内に一般株の引受の申し出や招待は出されていない。 ケイマン諸島です。本募集説明書に記載されている資料は、株式募集説明書の表紙に記載されている日付にのみ適用される。 それ以来、私たちの業務、財務状況、経営結果、見通しが変化した可能性があります。

必要に応じて、具体的な方法 転売株式は、本目論見書の補足に記載され、追加、更新または変更することがあります。 この目論見書に含まれる情報のいずれかを本目論見書に記載されている情報間に矛盾がある場合 論見説明書および論見説明書補足書は、当該論見説明書補足の情報に頼る必要があります。 これらの文書のいずれかが、後の日付を持つ他の文書の記述と矛盾しています。 本目論見書または目論見書補足書に記載されている記載は、その後の日付の文書に記載されている記載を変更または置き換えます。 以前の声明です

本目論見書の交付も この目論見書に基づく転売株式の配分は、いかなる状況においても 本目論見書に記載または参照により組み込まれている情報または本目論見書の発行日以降の当社業務における変更 当社の事業、財務状況、業績および見通しは、当該日以降に変更される場合があります。

当社の機能通貨と報告通貨 日本円 （ 「 JPY 」または「 ¥」 ） は、日本の法定通貨です。「ドル」または「ドル」の用語 アメリカ合衆国の法定通貨である米ドルを指します。本目論見板に掲載されている日本語の便宜的な翻訳 円対米ドルは、 3 月 29 日の為替レートである 151.22 円 = 1.00 ドルで為替されています。 2024 年、連邦準備制度理事会 （ 「米国連邦準備制度」 ） が週刊で報告した。 2024 年 4 月 1 日に発売。過去および現在の為替レート情報は https://www.federalreserve.gov/releases/h10/.

本目論見書に適用される慣行

特に明記または文脈が要求する場合を除き その他、本目論見書における以下への言及

2023 年 12 月 11 日、当社の株主 当社の発行済普通株式の分割を 1 ： 5，000 の比率で承認し、同年 1 月 1 日付で施行 2023 年 12 月 11 日。分割の結果、当社の承認済株式資本金は 5 万ドルとなり、 2，500，000，000，000 万ドルに分割されました。 株価額はそれぞれ 0.00000002 米ドルで、分割後の発行済普通株式は 11，185，000 株です。否則 その他、本目論見書に記載されているすべての株式額および 1 株当たり金額は、 5，000 分の 1 の効果を発揮するように提示されています。 当社の普通株式の細分化。

リスク要因

私たちの普通株への投資は 高度なリスクです私たちの普通株に投資するかどうかを決める前に、以下に説明するリスクをよく考慮しなければなりません。 本募集明細書に記載されている他のすべての情報は、“経営陣の議論”というタイトルの部分を含む 財務状況と経営結果分析“および我々の連結財務諸表と関連付記。もしあれば もしこれらのリスクが実際に発生すれば、私たちの業務、財務状況、経営結果、あるいはキャッシュフローは実質的な悪影響を受ける可能性があります。 影響を受けて、私たちの普通株の取引価格の下落を招き、あなたの全部または一部の投資損失を招く可能性があります。 以下に説明するリスクおよび本募集説明書の他の部分で議論されるリスクは、私たちが直面している唯一のリスクではない。今のところ追加のリスクはありません 私たちが知っていることや私たちが現在どうでもいいと思う情報はまた私たちの業務に影響を及ぼすかもしれない。あなたは私たちの普通株に投資することだけを考慮すべきだ。 もしあなたがあなたのすべての投資損失のリスクを負うことができれば。

私たちのビジネスや産業に関するリスクは

大幅な赤字が累積しています 2024 年 3 月 31 日、 2023 年 9 月 30 日、 2022 年の時点で、継続事業として継続する能力に大きな疑問を投げかけています。うちの 事業を継続する能力は、収益を生み出す顧客を引き付け、新規顧客を獲得できることにかかっています。 契約し、追加の資金を確保します。

営業損失は 1841 万 6000 円でした。 2024 年 3 月期は 1579 万 6000 円、 2014 年 9 月期は 24 万 1000 円の利益となりました。 2023 年、 2022 年。累積赤字は 3490 万 5000 円、 1648 万 9000 円、 2021 年 3 月 31 日現在、 2023 年 9 月 30 日現在、 2022 年現在、それぞれ 693，000 円。前述の条件を踏まえ、当社の監査人、 TAAD LLP 、 継続的な事業として継続する能力に大きな疑問を投げかけています継続的な事業として続ける能力は 収益を生み出す顧客を引き付け維持し新規顧客契約を獲得し追加の資金を確保する能力

経営陣の計画では、買収 顧客契約による新たな収益の創出と、当社普通株式の発行による追加資金調達、 他の株式や負債調達やその他の手段でも成功するという保証はありません

新たな収益創出を得られない場合 お客様の契約と将来の追加資金調達を得ることができます 投資家やその他の資金源が商業的に合理的な条件で当社に資金を提供することを望まない可能性があります 全然だ

さらに、行くまま続けられない場合 事業を中止し資産を清算しなければならず、その価値を下回る金額を受け取ることを余儀なくされる可能性があります。 資産は監査済み財務諸表に計上されており、株主は投資の全部または一部を失うことになります。

競争の激しい市場で事業を展開しています 効果的に競争できないと業績に悪影響を及ぼす可能性があります

オーディオ制作とVTuber管理業界 日本では、それらは競争が激しく、分散している。この2つの業界では比較的新しい小さな会社として競争に直面しています より多くの資源を持つ大手企業や運営の歴史が長く 工業です。また、他の大型ビデオストリーミングプラットフォーム、ソーシャルメディアプラットフォーム、および他のプラットフォームからの競争にも間接的に直面しています。 私たちのVTuber管理業務に基づいて、映画、コンサート、スポーツゲーム、その他の娯楽活動のプラットフォームを提供します。“ビジネス英語コンテスト”を参照する。 私たちの現在または未来のライバルは、より長い運営履歴、より高いブランド認知度、またはより高い財務、技術、または 私たちよりも多くのマーケティング資源を持っている。競争相手は彼らのブランド認知度、経験、資源を利用して様々な面で私たちと競争するかもしれません オーディオ制作事業およびVTuberに異なるタイプおよび革新的なコンテンツの開発により多く投資することを含む方法 生放送プログラムです。また、新しい技術と強化された技術は、オーディオ制作とVTuber LIVEの競争を増やす可能性があります ストリーミング市場です。競争の激化は私たちの収益力、市場シェア、顧客基盤、ブランド認知度を低下させる可能性がある。あるかもしれない 現在または未来の競争相手との競争に成功することは保証されません。このような競争圧力は可能です。 私たちの業務、財務状況、そして経営結果に実質的な悪影響を及ぼす。

既存のものを維持できない場合 オーディオプロダクションや声優ワークショップ事業の顧客は、当社の業績に重大な悪影響を受けます。

生産委員会が支払った手数料は 総合オーディオ制作サービスとアニメ / ビデオゲーム後の投資比率に基づく利益配分 販売されたものはオーディオ制作事業の主要な収入源です既存の顧客がもはや当社の注文を行わない場合 オーディオ制作サービスまたはアニメーション / ビデオゲーム制作プロジェクトに投資して関与するよう招待し、十分な資金を取得しません。 補償のための交換注文、当社のオーディオ制作事業からの収益に影響を与え、当社の営業成績が 物質的に悪影響を受けます

会費は、登録者から徴収されます ワークショップ事業のメンバーは声優ワークショップ事業の主要な収入源です。我々は入らないので 登録会員との長期契約は、登録会員が引き続き参加するかどうかを予測できない場合があります。 参加率は満足度などの要因により低下したり変動したりする場合があります。 当社のサービス、手数料、およびパンデミック発生などの当社のコントロールを超えた要因、日本全体の 経済情勢と競合他社との競争激化です既存のメンバーが私たちの声に参加しないことを決めた場合 俳優のワークショップでは、同等の数の代替メンバーを取得したり、会員基盤を拡大したりすることはありません。 声優ワークショップ事業に影響を及ぼし、業績に重大な悪影響を及ぼす可能性があります。

既存のファンを維持できなくなった場合や ファンベースをさらに拡大させると、 VTuber 経営事業の運営、収益性、見通しが大きく悪影響を及ぼす可能性があります。 影響を受けた

ファンベースサイズとファンレベル エンゲージメントは VTuber マネジメント事業の成功に不可欠です。VTuber から生み出された収益の大部分は 管理業務はオンラインプラットフォームによって分配された利益からありました視聴者数に直接依存しています アフィリエイト VTubers ’ ライブストリーミングビデオと、スーパーチャット / ステッカー / ありがとうなどのサービスの数は、ファンが購入し、金額 当社の VTuber 管理事業によって生み出される収益のほとんどは、当社の規模を維持し拡大する能力に大きく依存しています。 ファンベースとファンエンゲージメントレベルですファンベースが小さくなったり、アクティブになくなったりすると、ファンは スーパーチャット / ステッカー / ありがとうなどのサービスに少ない費用を費やしたり、一般的にプラットフォームにアクセスしたりします。その結果、当社の財務状況は その結果、収益の減少に苦しみ、事業および業績に重大な悪影響を及ぼします。

2024 年 3 月 31 日現在、約 47 万人。 当社の VTubers の YouTube チャンネルを購読しています。

VTuber 管理による収益 ビジネスはファンエンゲージメントのレベルに大きく依存しています例えば、 2024 年 3 月 31 日までの 6 ヶ月間と会計年度 2023 年 9 月 30 日に終了した VTuber 管理事業の収益の 24.6% 、 29.0% 、 54.0% をそれぞれ達成しました。 2024 年 3 月 31 日までの 6 ヶ月間に YouTube から生み出された収益源のうち、 2023 年 9 月 30 日と 2022 年 9 月 30 日終了のスーパーチャット / ステッカー / ありがとうはそれぞれ 52.2% 、 68.3% 、 81.5% でした。これは私たちの高さを示す スーパーチャット / ステッカー / ありがとうのようなサービスを購入するファンの高いレベルのアクティビティと意欲を反映したファンエンゲージメントのレベル ライブストリーミングセッション中にアフィリエイトの VTubers と対話し、エンゲージメントします。

現在のサイズの維持と改善 私たちのファンベースとファンエンゲージメントのレベルは私たちの継続的な成功に不可欠ですこのすでに大きなサイズを維持し、改善する しかし、ファンベースと高いレベルのファンエンゲージメントは、変化に適切かつタイムリーに対応する必要があります。 ファンの嗜好を育成し、十分な人気のある VTubers を引き付け、維持し、新しいファンを引き付ける可能性のある新しい機能やコンテンツを提供します。 これらの目標のすべてを達成できる保証はありません。ファンの定着、成長、および エンゲージメントは

育成、引き付け、維持に失敗するかもしれない 有能で有能な声優や VTuber 、当社のオーディオ制作や VTuber 管理に重大な悪影響を及ぼす可能性があります。 ビジネスとオペレーションです

本募集説明書の発表日までに59社がございます 共演声優と16の付属Vtuberは、9月30日までの数より約145.8%と128.6%増加した。 2021年です私たちが協力している声優は音声制作において重要な役割を果たしています。彼らの吹き替えは個性を提供しているからです。 彼らの俳優陣。付属VTuberは生放送生態系の核心で、それらは人を引きつける主要な源だからです。 活力と高度な相互作用に満ちたファンコミュニティの内容を引き付ける。私たちが協力している声優と付属のVTubersの魅力は 彼らの吹き替えテクニックに加えて、私たちの顧客とファンの維持を確保する主な貢献者です。私たちが入ると 私たちの協力声優と付属VTuberと1年間の独占管理協定を締結し、吹き替えを禁止しました または事前の同意なしに第三者のプロジェクトを中継し、条項が満期になった場合、契約を更新しないことを選択することができます。 終わります。また、独占管理協定は、退職する声優やVTuberがすぐに私たちとの 競争相手です。良質な吹き替え俳優やVTuberの離れは、私たちの顧客やファン基盤を急速に低下させる可能性があります。 良質な吹き替え俳優とVTuberを維持するために、報酬計画のようなインセンティブを提供するために、より多くの資源を使わなければならないかもしれません。 彼らがインセンティブを改善し宣伝やブランド意識を確立するのを助けるために全面的な訓練と支援を行っています私たちが努力しても 私たちのこれらの面での運営を改善し安定させるために、私たちの共演声優や付属のVTuberは保証されません 私たちが彼らを引き留めるために最善を尽くしたにもかかわらず、離れないだろう。

協力者との契約上の紛争 声優やアフィリエイト VTubers は当社の評判を損ない、契約上の責任を負わせ、コストがかかり、時間がかかる可能性があります 解決する。

1 年間の独占経営に取り組みました。 すべてのコラボレーション声優とアフィリエイト VTuber との契約。独占経営契約の固定条件は、一般的に 交渉不可であり、任期満了の 1 ヶ月前に当事者が解約しない場合、そのような契約は自動的に更新されます。からの 当社と提携している声優またはアフィリエイトの VTuber との間には契約上の紛争が生じる場合があります。このような紛争 解決にはコストがかかり、時間がかかり、当社のオーディオ制作や提携会社が制作するコンテンツの品質を損なう可能性があります。 VTubers は、既存のクライアントがビジネス関係を終了させ、ファンベースとエンゲージメントレベルを減少させ、または 当社の事業、財務状況、業績に悪影響を及ぼします。

もはや恩恵を受けられない場合 CyberStep のサポートは、当社のビジネスに悪影響を与える可能性があります。

主要株主である CyberStep と 販売株主の 1 人で、大手ビデオゲーム制作会社です。当社の事業は CyberStep の許可の恩恵を受けています 物理的な声優のワークショップを開催するためにリースするスタジオの使用を許可することを含め 既存の販売チャネルにアクセスし、コラボレーション声優やアフィリエイトをフィーチャーした商品を販売し、配達します。 VTuber 。さらに、新しいビデオのデザインや制作など、 CyberStep の他のサポートの恩恵も受けています。 コラボレーション声優やアフィリエイト VTubers に適したゲーム、オーディオプロダクションサービスの仕事機会を提供するため、 子会社または戦略的提携関係者と関与し、働く機会を確保することにより、当社を支援します。 産業です

しかし、我々は協定を結ばないため 前述のサポートのために CyberStep と依存しており、経営陣からの口頭取り決めと非必須のサポートに依存しています。 CyberStep 、 CyberStep は、独自の裁量により、かかる許可の付与またはサポートの提供を停止することがあります。

私たちは保証できませんが 今後、 CyberStep およびその子会社との協力から利益を得ることができます。協力関係を維持できない程度 当社は、同様のサービスを提供するための他のビジネス提携を見つけるためにリソースを費やす必要がある場合があります。 資源、サービス、資産を損ない、雇用機会を失う可能性があります。 作戦の結果です

当社の限られた運用履歴は 進化する産業は、将来の業績を正確に予測し、事業見通しを評価することが困難です。

当社の運営履歴は限られています。 2017 年 10 月にオーディオ制作 · 声優ワークショップ事業を、 2021 年 12 月に VTuber 管理事業を開始しました。 当社の経営陣は、短期間で協力しており、業務はまだ初期段階にあります。ザ · 当社を運営するためのアプローチを探求し、コンセンサスに達する過程にある可能性があります。 業務の効率と結果についてです当社の運営履歴が限られているため、過去の成長率は 将来の業績です当社の将来の業績は、長い事業履歴を持つ企業よりも特定のリスクの影響を受けやすい可能性があります。 違う業界で当社の事業、見通し、今後の業績に悪影響を及ぼす要因は数多くあります。

リスクへの対処に成功しないかもしれない 事業、業績、財務等に重大な悪影響を及ぼす可能性のある上記の不確実性 状況と将来の展望です

当社の財務状況、業績、 キャッシュフローとキャッシュフローは COVID—19 のパンデミックによって悪影響を受けています

COVID—19 のパンデミックは全米に広がっています。 閉鎖、閉鎖、検疫、旅行を含む重要な政府措置の実施をもたらしました 2020 年、 2021 年、 2022 年のウイルスの拡散を制御することを目的とした禁止措置。企業も予防措置を講じました。 従業員に遠隔勤務を義務付け渡航制限を課し一時的な事業閉鎖など

私たちの業務は実質的な影響を受けていませんが 2024年3月31日までの6カ月と2023年9月30日現在の会計年度は、新冠肺炎が大流行するまで。 2022年9月30日と2021年9月30日までの財政年度内に悪影響を受けている。新型肺炎の全世界的な発生に悪影響を及ぼす 2020年初めから2023年上半期にかけて日本に影響を与えた。この間，日本政府はいくつかの声明を発表した 緊急事態部は，全国各地の不要な活動や企業を閉鎖し，これを予防とすることを求めている 新冠肺炎の伝播。このような状況は、特に教育や娯楽分野では全国各地の企業に悪影響を与えている。 私たちはその中で動作しています

音声制作

9月30日までの会計年度では 2022年と2021年には、私たちが受けた多くのオーディオ制作サービスの注文が延期されました。理由は全体です。 アニメ制作プロジェクトは政府の新冠肺炎政策に適合している。また音声制作の進捗状況もあります 私たちのいくつかの合作声優が新冠肺炎に感染したので延期した。私たちのオーディオ制作業務は実質的な影響を受けていません 2024年3月31日までの6ヶ月間と2023年9月30日現在の会計年度では、受注減少により、 オーディオ制作サービスは、財政年度に比べて延期やキャンセルされたアニメ制作項目が少ないため延期されています。 2022年と2021年9月30日までの年度。しかし、音声制作事業が事業年度終了までに生じる収入は しかし，2022年9月30日までの会計年度と比較して，2023年9月30日の減少幅は46.9%であり，原因は 新冠肺炎が大流行した。減少の主な理由はいくつかの大規模なプロジェクトに取り組んでいます 2023年9月30日までの財政年度中に完成した数年であるため、 この時期は2022年9月30日現在の年度と比較している。年内の音響制作業務からの収入 2024年3月31日までの6カ月間は前年同期比で増加した。

VTuber管理

新冠肺炎は対流メディアの影響が大きい 2022年度に感染で私たちの付属VTubersを困らせる予定です。また、私たちの付属会社を特色としたオフライン活動 私たちが計画した収入に大きな貢献をする予定のVTubersは2022年度に廃止されるか、コンプライアンスのために 政府との新冠肺炎政策や私たちの付属Vtuber感染による。私たちの付属VTuberは少ないので 私たちは新冠肺炎に感染しています感染した付属VTubeの多くは新冠肺炎から回復していますストリーミング計画は 2024年3月31日現在の6ヶ月と2023年度は2022年度ほど大きな影響を受けていない。だから、 ライブ配信に利用可能なVTuber数は、2024年3月31日までの6ヶ月と2023年9月30日現在の会計年度で使用可能 増加し、これはより高い広告収入をもたらし、VTuber管理業務による収入を大幅に増加させた。 増えました。

吹き替え俳優工房

私たちの肢体吹き替え俳優ワークショップでは 新冠肺炎の流行により、2022年9月30日と2021年9月30日までの政府の前期期間の政策に従い、廃止された。 私たちの声優スタジオ業務は2024年3月31日までの6ヶ月間新冠肺炎の実質的な影響を受けていませんが 2023年9月30日現在の会計年度は、その間に物理吹き替え俳優セミナーが何も廃止されていないため、発生した。 前年同期に比べ、吹き替え俳優職場の業務は低下している。減少の主な原因は 会社は声優セミナーのためのメンバーを募集するのではなく、VTuber管理業務の運営に集中している。 2024年3月31日までの6ヶ月間と2023年9月30日現在の会計年度。

詳細は、 Captioned セクションを参照。 「経営陣の検討 · 財務状況 · 業績分析 —COVID—19 影響 事業成果について」と、この目論見書に記載されています。

事業に重大な影響はありません。 2022 年 10 月 1 日以降の COVID—19 パンデミックによってCOVID—19 のパンデミックの評価は継続していますが、現時点では推定できません。 COVID—19 のパンデミックが当社の財務状況と今後の業績に与える影響を十分に理解します。COVID—19 の最終的な影響 パンデミック及び関連する緩和努力は、 COVID—19 パンデミックの持続期間、受容を含む将来の進展に依存する ワクチンの有効性、 COVID—19 の影響、関連する封じ込め · 緩和対策について、お客様、メンバー、協力 声優、アフィリエイトの VTuber 、従業員、労働力の可用性、および通常の経済と運営が 状況再開。COVID—19 のパンデミックが当社の事業、業績、流動性または財務に悪影響を及ぼす場合。 条件によっては、この「リスク要因」セクションに記載されている他の多くのリスクを増加させる効果もあります。

当社の事業はすべて日本国内で運営されています。 現在のお客様の減少により、当社の事業や将来の成長に重大な悪影響を及ぼす可能性があります。

オーディオ制作事業から、 VTuber 経営 声優事業は全て日本国内で事業を展開しており、現在の事業や将来の成長に重大な悪影響を及ぼす可能性があります。 日本での顧客数やファンエンゲージメントが減少した場合の影響を受けます。

日本市場の重要性により、 当社の事業は、日本固有のマクロ経済リスクも受けています。参照 “— 市場経済の衰退 当社のオーディオ制作サービス、 VTuber ライブストリーミングサービス、声優教育サービスが提供されている場合 クライアントやファンの課外教育やエンターテインメントサービスに費やす意欲は、直接的または間接的に 成長戦略を遅らせ、事業、財務状況、収益性、キャッシュフローに重大な悪影響を及ぼす」と述べた。 このセクションで

市場経済の低迷は 当社のオーディオ制作サービス、 VTuber ライブストリーミングサービス、声優教育サービスが提供されている場合 クライアントやファンの課外教育やエンターテインメントサービスに費やす意欲が、当社の成長を遅らせる可能性があります 事業、財務状況、収益性、キャッシュフローに直接的または間接的に重大な悪影響を及ぼします。

市場の経済の低迷は オーディオ制作サービス、 VTuber ライブストリーミングサービス、声優教育サービスが提供されています。 課外教育やエンターテインメントサービスに費やすクライアントやファンの意欲に悪影響を及ぼす。 その意欲に影響を与える可能性のある要因には、一般的な事業状況、雇用水準、金利および税率、 消費者信用の利用可能性と将来の経済情勢に対する消費者コンフィデンスです経済不況の場合、 消費者の支出習慣に悪影響を及ぼし、予想を下回る純利益を経験する可能性があります。 当社の成長戦略を遅らせたり減速させたり、当社の事業や財務状況に直接的または間接的に重大な悪影響を及ぼすこと。 収益性とキャッシュフローです

ここ数年経済指標は 日本国内にも一喜一憂の兆しが見られ、日本経済の将来の成長は私たちがコントロールできない多くの要因の影響を受けている。海流. 岸田文雄首相の政府および菅義偉元首相と安倍晋三首相の政府 安倍氏はすでにデフレに対抗し、経済成長を促進する政策を打ち出している。また、日銀は量的緩和計画を打ち出した。 2013年4月と質化金融緩和、2016年1月にマイナス金利政策を発表。2020年4月 日本銀行は、新冠肺炎の流行による経済低迷に対応するため、金融緩和にさらに力を入れることを決定した。しかし、 これらの政策措置が日本経済に与える長期的な影響はまだ確定していない。また大流行の発生は 新冠肺炎が大流行し、地震や台風などの大規模な自然災害が発生し、増加している。 2014年4月から2019年10月までにさらに引き上げられた消費税税率は、悪影響を及ぼす可能性もある 日本経済は、課外教育や娯楽サービスの支出に影響を与える可能性がある。どんな未来の悪化でも 消費を低下させ、私たちのサービス需要にマイナスの影響を与える可能性があります。 そして私たちが受け取ることができる価格です

管理履歴は限られています。 急速な拡張成長戦略を効果的かつ効率的に管理できなければ、事業成績や収益性が低下します。 物質的かつ悪影響を受ける。

ここ数年、私たちは急速に成長している。 (2021年9月30日現在の会計年度、われわれの経営業績は新冠肺炎のマイナス影響を受けている 大流行)、私たちの業務を拡大し、より多くのアニメやビデオゲームプロジェクトのための音声制作を提供していきたいと思います。 私たち自身のアニメやテレビ番組を企画して制作し、より多くの才能と能力を持つ声優やVTuberを獲得し、改善し、 私たちの付属VTubersのライブパフォーマンスの内容を追加して、私たちのコラボレーションを特色としたオフラインイベントを開催します 吹き替え俳優と付属のVTuberは、私たちの声優ワークショップの規模を拡大しています。この急速な拡張は新しい戦略だからです 私たちと私たちの経営陣にとって、このような拡張を管理する歴史は限られており、私たちはこのような重大な業務に迅速に適応できないかもしれません。 変化、新しい市場での競争に成功し、新しい分野で私たちのブランドを構築したり、私たちの新しい拡張された業務から十分な純収入を生み出したりします。 公事です。そのため、私たちが新たに拡大した業務と御社の経営結果を予測することは難しいです 私たちの未来の財務業績の指標として、私たちの歴史的経営業績に依存してはいけません。

この成長戦略は継続されます 私たちの管理、運営、技術、そして他の資源に実質的な要求をする。私たちの成長戦略も 私たちのブランドがどんな偏差によっても損なわれないように、私たちのサービスの質を維持することを要求します。 実際的にも知覚的にも、私たちのサービスの質にあります。私たちは成長に適応するために実施する必要があると予想しています 私たちの会計を改善することを含む、様々な新しい運営とアップグレードの運営と財務システム、プログラム、制御 他の内部管理制度。私たちはまた私たちの従業員チームを拡大、訓練、管理、激励し、私たちの関係を管理する必要があります。 会員、顧客、協力サービス提供者と。これらすべての努力はリスクに関連しており、大量の管理が必要だ。 努力と多くの追加支出。私たちは私たちの成長や実行を効果的に管理することができるという保証はできません。 私たちの戦略は有効であり、これができなければ、私たちの運営結果や収益性に実質的な悪影響を及ぼす可能性がある。

私たち、私たちのビジネスについての否定的な宣伝、 株主、関連会社、取締役、役員、その他の従業員が当社の評判および事業に重大な悪影響を及ぼす可能性があります。

当社は、随時、ネガティブな宣伝を受ける場合があります。 私たち、経営陣、ビジネスについてですこのようなネガティブな宣伝は、悪意のあるハラスメントまたは不正競争の結果である可能性があります。 第三者による行為また、そのような第三者の行為の結果として政府または規制当局の調査の対象となる場合があります。 このような第三者の行為から身を守るために多大な時間を費やし多大な費用を負担する必要があり、 合理的な期間内にそのような申し立てを決定的に反論することができるか、または全く反論することができる。私たちの評判は物質的であり ネガティブな宣伝の結果として悪影響を受け、市場シェア、顧客、ファン、ビジネスを失う可能性があります。 その結果、当社の事業、評判、財務状況、および業績に重大な悪影響を及ぼす可能性があります。 オペレーションだ

ネガティブな宣伝は、メリットに関係なく、 以下を含むが、これらに限定されない幅広い事項に関連している。

良質な製品を提供できない場合 お客様の体験、当社の事業、評判、財務状況、および事業結果が重大な悪影響を受ける可能性があります。

私たちの業務の成功は大きくかかっています 音声制作サービス、VTuberリアルタイムストリーミングサービス、音声に質の高い顧客体験を提供することができます 教育サービスを代行しているが、これは様々な要素に依存する。これらの要素には私たちの能力(I)が含まれています 競争力のある価格で良質なオーディオ制作サービス、VTuber生放送サービス、音声パフォーマンス教育サービスを提供している。 (Ii)お客様、メンバー、共演声優、付属VTubersと信頼できる関係を維持し、 CyberStepで借りたエンティティスタジオの使用を許可し，吹き替え俳優ワークショップの清潔さと安全性，および(Iii)を提供する. タイムリーで満足な顧客サービス。もしお客さんが私たちのサービス体験や私たちが提供した価格に満足しなければ 音声制作サービスと音声演技教育サービスは深刻に中断されているか、お客様のニーズに応えられません 期待、私たちの名声、そして顧客の忠誠度は不利な影響を受けるかもしれない。もし私たちが提供し続けられなければ メンテナンス、高品質の顧客サービス、私たちは既存の顧客を維持したり、新しい顧客を引き付けることができないかもしれません。これはすでに 私たちの業務、名声、財務状況、経営結果に重大な悪影響を与えます.

私たちのビジネスは継続的な成功に依存します 当社のブランドの認知度を維持し、高めることができなければ、クライアントネットワークの拡大が困難になる可能性があります。 ファン、会員、コラボレーション声優やアフィリエイト VTuber 、当社の評判や業績が損なわれる可能性があります。

当社のブランドの市場認知度は、 「 BloomZ 」は、当社の事業の成功に大きく貢献してきました。ブランドの維持と強化は クライアント、ファン、メンバー、コラボレーション声優やアフィリエイト VTubers のネットワークを増やすための取り組みです。

新しい顧客、ファン、メンバーを引き付ける私たちの能力、 声優やアフィリエイト VTubers のコラボレーションは、当社のブランドへの投資、マーケティング努力、および当社の成功に依存しています。 サービス、およびクライアント、ファン、およびメンバーが利用できる競合他社の代替品と比較した当社のサービスの知覚価値について 基地だ

当社の市場認知度を高めるために ブランドは、能力向上のために、才能のある有能な声優や VTubers の育成、誘致、維持に努めてきました。 より多くのアニメーション / ビデオゲーム制作プロジェクトに参加し、より多くのライブストリーミングビデオを制作し、オンラインライブストリーミングをホストするために イベントですこの目論見書の日付現在、コラボレーション声優の数は 2017 年の 7 人から 59 人に増加しました。 2021 年 12 月の VTuber 管理業務開始以来、アフィリエイト VTuber の数は 16 社に増加しました。さらに、 当社の VTubers の Hoshimeguri 学園提携の YouTube チャンネルの視聴回数は、 2022 年度には 2，34 6，418 人、 2023 年度には 9，47 6，466 人。

さらに、クライアント、ファン、 当社のブランドと競合他社が提供する異なるサービスを区別するためにメンバーやメンバーは、収益の減少につながる可能性があります。 利益とマージンは競合他社のサービスを選択した場合ですマーケティングイニシアチブが成功しなければ ブランド認知度を高めることができず、過剰なマーケティング · プロモーションが発生した場合 新規顧客、ファン、メンバー、コラボレーション声優やアフィリエイト VTubers の誘致ができない場合があります。 当社の事業や業績に重大な悪影響を与える可能性があります

また、事業に対するネガティブな宣伝、 株主、関連会社、取締役、役員、その他の従業員がブランドの認知を損なう可能性があります。見て下さい」と。 当社、当社の事業、株主、関連会社、取締役、役員、その他の従業員に関する否定的な宣伝は 私たちの評判とビジネスに影響します」

伝統的なメディア以外にも 日本では、インスタント·メッセージ·アプリケーション、ソーシャルメディアサイト、メディア·サイトなど、ソーシャルメディアプラットフォームや同様のデバイスの使用が増えている。 他の形態のインターネットベースの通信は，個人が幅広い消費者や他の興味のある受け手に触れることができるようにしている. 人です。インスタント·メッセージング·アプリケーションやソーシャルメディア·プラットフォーム上の情報はほぼ即座に入手できます 影響、これは私たちに少ないか、根本的に修正されたり修正されなかった機会を提供する。情報を発信する機会は 不正確な情報が随所に見られる。わが社、株主、関連会社、役員、上級管理者及びその他の人員に関する情報 従業員は、いつでもこのようなプラットフォームで発表することができます。このような否定的な宣伝や不正確な情報に関するリスクは ブランドの完全性を守る戦略で完全に解消することはできず、私たちのブランドの認知度に実質的な損害を与える可能性があります。 私たちの名声、業務、財務状況、そして経営結果。

当社の知的財産の不正利用 第三者による知的財産権の保護にかかる費用は、当社の事業、評判、 競争優位性

私達は私達の会社のロゴ、ドメイン名、著作権、 特に協力声優やアフィリエイト VTubers ’ バーチャルおよびその他の類似の知的財産に関して キャラクター、および宣伝権の使用 （ 商業的利用を制御し、商業的価値を利用するためのライセンス可能な権利であること 個人の名前、署名、画像、肖像画、および肖像画 ） 、当社のコラボレーション声優の、排他的に従って 管理契約は当社の成功にとって重要であり、知的財産法と契約上の取り決めの組み合わせに依存しています。 当社の権利を保護するための機密保持契約と非開示契約を含む。詳細は「ビジネス — インテリジェント」をご覧ください。 財産 > >

これらの措置にもかかわらず、我々の知的 財産権が異議を唱え、無効化、迂回、または不正流用される可能性、またはそのような知的財産が不十分である可能性 競争優位性を提供するために。知的財産権の維持と執行が困難です。法定法および 規制は司法的解釈と執行の対象となり一貫して適用されない可能性があります秘密保持、発明の譲渡 取引相手によって違反される可能性があり、そのような違反に対して適切な救済措置が利用できない場合があります。 したがって、すべての法域において知的財産権を効果的に保護したり、契約上の権利を執行できない場合があります。

当社の独自の技術の不正使用に対する対策 その他の知的財産権は困難で高価であり、将来的に知的財産権の執行のために訴訟が必要になる可能性があります。 財産権です今後の訴訟は、多額のコストやリソースの流用をもたらし、事業を混乱させる可能性があります。 財務状況や業績に重大な悪影響を及ぼしますさらに、潜在的に相当なコストにもかかわらず、 そのような訴訟で勝利すると保証できません

第三者が侵害を主張する場合 多大な法的費用を負担し、プロモーションを妨げる可能性があります。 当社のサービス

私たちの成功は、一部、 他人の知的財産権を侵害することなく運営します第三者は、将来、当社の現在または将来を主張する可能性があります。 著作権、商標、技術、事業方法、プロセス、またはコラボレーション声優の宣伝権の使用を侵害します。 知的財産権の有効性に異議を唱える可能性があります知的影響を受けることができる。 防衛に費用がかかり、特定の重要な著作権、商標を使用する能力を制限する可能性がある財産権侵害の請求、 ビジネス方法やコラボレーション声優の宣伝権です

必要に応じて、弁護と起訴 知的財産訴訟、干渉手続、関連する法的 · 行政手続は非常に費用がかかり、 管理職を通常の責任からそらす当社は、これらの訴訟または手続のいずれにおいても勝利しません。逆性 訴訟または弁護手続の決定は、相当な補償および懲罰的損害賠償を支払う必要があり、抑制することができます。 重要な著作権、商標、ビジネス方法、プロセス、またはコラボレーション声優の宣伝権を使用することから、 貴重な知的財産権を失うか得られない可能性があります

さらに、膨大な発見量のために、 知的財産訴訟に関連して頻繁に行われる機密情報の一部が競合他社に開示される可能性があります この種の訴訟の中でまた、公聴会、動議、その他の暫定手続の結果の公表または 訴訟の進展は投資家によって否定的に認識され、したがって当社の取引価格に悪影響を及ぼす可能性があります。 普通株。

現在の保険は提供できません すべてのクレームに対する適切なレベルのカバレッジと当社の保険でカバーされていない損失が発生する可能性があります。

私たちは保険を保っています。 私たちの規模やタイプのビジネスにとって慣例ですただし、特定の種類の損失やクレーム、または そのような保険料は法外です。未保険の損失またはクレームが発生した場合、当社の評判に重大な悪影響を及ぼす可能性があります。 事業、営業結果、財務状況、見通しです。

データセキュリティ侵害とその未遂 評判、信頼性、ビジネスに悪影響を及ぼす可能性があります。

私たちの業務運営は収集と保存です 私たちの顧客(登録会員)に関する個人情報は、彼らの個人識別情報を含む。お客様は？ インターネットを介して(または他のメカニズムを介して)送信される個人情報のセキュリティがますます注目されており，消費者 身分窃盗とユーザープライバシー。以下の個人識別情報の開示は、いかなる感知、試み、または実際に許可されていません。 私たちの会員、協力声優、付属のVTubersは私たちの名声と信頼性を損なう可能性があり、私たちの業務の収入を減少させます。 私たちのメンバー、協力声優、付属VTubersを引き付け、維持する能力を弱化させ、減少させ、訴訟を引き起こす可能性があります。 私たちに不利になったり、巨額の罰金や処罰を加えたりする。いかなる第三者サービス提供者も保証できません。 このような個人情報へのアクセスは，データのプライバシーとセキュリティに関する政策とやり方を遵守する. すべての適用された法律を遵守したり、データセキュリティ違反に遭遇したり、データセキュリティに違反しようとする行為に遭遇することはありません。これらの行為には相応のものがあるかもしれません。 私たちの業務に悪影響を与えます。

最近、よく知られたデータセキュリティ侵害に苦しんだ 企業や機関はかなりの量のメディアの注目を集め、新しい外国、国、地方または州の データのプライバシーとセキュリティに対処する現地の法律および立法提案、および課されたデータ保護義務の強化 クレジットカード発行者による商人向けですその結果、お客様情報保護のためのより広範な要件の対象となる可能性があります。 当社がサービスの購入に関連して処理するコンプライアンスコストの増加をもたらします

VTuber 管理の運営能力 ビジネスは、第三者が運営するライブストリーミングプラットフォームとインターネットインフラの開発とメンテナンスに依存しています。

VTuber 管理事業を運営しているため YouTube 、 FANBOX 、 BOOTH などの第三者が運営するライブストリーミングプラットフォームでは、これらの契約関係がある場合 当社の利用規約違反により第三者が終了した場合、当社は VTuber 管理業務を運営できなくなる場合があります。 ライブストリーミングプラットフォームでこのような場合、ビデオ配信メディアを備えたこれらのライブストリーミングプラットフォームの価値は低下します。 ユーザー数の減少により、 VTuber 管理事業に悪影響を及ぼします。

さらにインターネットのインフラは 多くの異なるネットワークおよびサービスから構成され、これらのネットワークおよびサービスは、設計上高度に分散および分散されている。このインフラストラクチャは動いています 一連の独立した第三者組織が共同でインターネットのインフラと支援サービスを提供する インターネット番号と名前割当機構(“ICANN”)とインターネット番号割当機構の管理下で 現在ICANNが管理している権威機関です。一部の破損により、インターネットは様々な中断やその他の遅延を経験しています。 そのインフラ、サービス拒否攻撃、または関連するネットワークイベントは、将来的に停止と遅延に直面する可能性がある。これらは 停止および遅延は、インターネット使用率を低下させたり、インターネット断片化をもたらしたりして、複数の独立したものをもたらす可能性がある インターネットです。これらの状況は私たちの制御下ではなく、配信のための付属VTuberのインターネット利用可能性を減少させる可能性があります。 彼らのライブストリーミングサービスですもしVTuberの生放送サービスが中断したり、私たちのファンが私たちのVTuberにアクセスできなかったら ライブ配信サービスは、潜在的または既存のファンの流出を招き、VTuber管理業務を損なう可能性があります。

将来、追加資本が必要になるかもしれません。 事業目的を追求するためです

追加の資本を集める必要があるかもしれません ビジネスの挑戦やチャンスに対応して、私たちの成長を加速させ、新しい業務製品を開発したり、私たちの技術を強化したりします。 容量です。資本市場と私たちの業界の予測不可能性のため、私たちはあなたに保証することができません 私たちに有利な条項で追加資本を調達します。もし必要であれば、あるいは全然集めません。特に私たちが失望的な状況を経験したら。 手術の結果。要求に応じて十分な資本を得ることができなければ、運営に資金を提供する能力、利用することができます。 予想外の機会、私たちのインフラを発展させたり、強化したり、競争圧力に対応することが顕著になるかもしれません。 限られています。株式や転換可能な債務証券を発行することで追加資金を調達すれば 私たちの普通株の保有者たちは深刻に希釈されるかもしれない。これらの新しく発行された証券は権利、優先権、または 既存の所有者や私たちの証券の特権より優先される。

誘致、採用、維持に失敗した場合 執行役員、上級管理職、主要従業員を含む主要人材は、継続的な事業と成長が 影響を受けた

私たちの成功は大きく左右されます 私たちの主要なスタッフは、私たちのCEOのカズサAranamiさんを含め、取締役、さん三村裕一さん、その他の人たちです。 アニメ制作業界や音響制作業界で貴重な経験、知識、人脈を持つキーパーソン。 このような重要な人たちが私たちの会社での彼らの雇用を自発的に終わらせないという保証はない。私たちは持っていないし、つもりもありません 私たちのどんな高級管理チームのためにキーパーソン保険を購入します。私たちを失った誰もが私たちに 運営を続ける。私たちの成功はまた私たちが合格した人員を引き付けて維持することができるかどうかによって、私たちの既存の業務を管理することができます。 私たちの未来の成長です私たちは重要な人員を誘致、採用、または維持することに成功できないかもしれません。これは悪影響を及ぼすかもしれません。 私たちの成長。また、私たちは私たちの販売とマーケティングチームに頼って私たちの業務成長のために新しい顧客を探しています。四つの販売部とマーケティング部があります。 本募集説明書の発表日までに、上流アニメ/ビデオゲーム制作の推進と誘致を担当した人員総数 会社は私たちのオーディオ制作サービスを購入します。販売者やマーケティング担当者を引き付けたり維持したりすることができなければ 私たちの業務は不利な影響を受けるかもしれない。

当社は、随時、クレームの対象となる場合があります。 当社の事業、見通し、業績、財務に悪影響を及ぼす可能性のある紛争、訴訟、訴訟手続 条件だ。

当社は随時、 様々なクレーム、論争、訴訟、法的手続に関与しています。しかし、訴訟の主張や脅迫は、固有の対象となります。 これらの主張が訴訟に発展するかどうかはわかりません訴訟、またはあらゆる種類の法的手続、 防衛費を負担し、資源のかなりの部分を利用し、経営陣の注意を日常からそらす可能性があります。 事業に害を及ぼす可能性もあります当社に対する和解または判決は、当社に重大な悪影響を及ぼす可能性があります。 財務状況、営業結果、キャッシュフローです。また、請求や判決に関するネガティブな宣伝 当社の評判を傷つけ、重大な悪影響を及ぼす可能性があります。

今回の発行と取引に関するリスク 市場

当社普通株式の市場価格 当社の業績にかかわらず、ボラティリティまたは下落する可能性があり、株式を転売できない場合があります。 初期公募価格です

当社普通株式の市場価格は変動する場合があります。 多くの要因に対応していますその多くは私たちのコントロールを超えています

さらに、株式市場は経験しています 多くの企業の株式証券の市場価格に影響を与え、影響を与え続けている極端な価格とボリュームの変動。 多くの企業の株価は、その業績と無関係または不釣り合いな形で変動しています。 過去には、市場のボラティリティ期間に株主が証券集団訴訟を提起してきました。もし私たちが関与すれば 証券訴訟では多額のコストを負担し経営陣のリソースや注意を事業からそらす可能性があります ビジネスに悪影響を及ぼします

極端な株価ボラティリティが発生する可能性がある 実際または予想される業績、財務状況または見通しとは無関係で、将来の投資家にとって 当社の普通株式の急激に変化する価値を評価するため。

最近、極端な例がありました。 株価の上昇に続いて、最近の株式公開が数多く行われ、急激な株価下落と強い株価ボラティリティが続き、 特に比較的小さなパブリックフロートを持つ企業では比較的小規模な資本企業として、比較的小さな公開 フローティングでは、株価のボラティリティ、極端な価格上昇、取引量の減少、大資本化よりも流動性の減少を経験する可能性があります。 会社です特に、当社普通株式は、急速かつ大幅な価格変動、取引量の少さ、および大規模な取引の影響を受ける可能性があります。 入札価格と要求価格のスプレッド株価上昇を含むこのようなボラティリティは、当社の実績または予想の業績とは無関係である可能性があります。 財務状況や見通しにより、将来の投資家が急激に変化する当社普通株式の価値を評価することは困難です。 シェア。

また一般的な取引量が 株価が低い場合、相対的に購入や売却数の少ない人は、私たちの普通株の価格に影響を与えやすい。こんなに低いですか 取引量は私たちの普通株の価格を大幅に変動させ、価格は大きな割合で変化する可能性がある。 どの取引日の取引日でも。私たちの普通株の保有者も、彼らの投資をいつでも変えることができないかもしれないし、強制されるかもしれません。 出来高が低いので安値で売っています。広範な市場変動や一般的な経済·政治的条件も可能である 私たちの普通株の市場価格に悪影響を及ぼす。このような変動により、投資家の投資は損失を受ける可能性がある。 私たちの普通株で。私たちの普通株市場価格の下落はまた私たちの新株を増発する能力に悪影響を及ぼす可能性があります。 普通株や他の証券と私たちが未来に追加融資を受ける能力。活動は保証できません 私たちの普通株式市場は発展したり持続したりするだろう。活発な市場を発展させなければ、私たちの普通株の保有者は 彼らが持っている株をいつでも売ることができない、あるいは彼らの株を売ることができないかもしれない。

当社が実施し維持できない場合 効果的な内部統制システムまたは財務報告に関する内部統制の重大な弱点を是正しないこと 報告義務を履行しないか、業務結果を正確に報告できないか、 投資家のコンフィデンスおよび当社普通株式の市場価格が著しく悪影響を及ぼす可能性があります。

統合財務諸表を作成する際には 2024年3月31日まで6ヶ月および2023年9月30日および2022年9月30日まで財政年度、私たちおよび私たちの独立 公認会計士事務所は財務報告の内部統制に重大な欠陥があることを発見しました。定義を参照してください。 上場企業会計監督委員会が制定した基準とその他の統制欠陥。特定された実質的な弱点 (1)監査人によって提出され、会社によって財務諸表に記録されたいくつかの監査調整と、(2)不足とを含む。 独立役員と監査委員会。重大な欠陥と制御欠陥を確認した後 (1)公認された定期的かつ連続的な会計原則の実行を含む救済措置を継続することを計画する アメリカでは会計·財務報告研修プログラムのための 財務報告者；(Ii)外部コンサルティング会社を招いてサバンズ-オキシリー法案のコンプライアンス評価に協力してくれる 包括的な内部統制の要求と改善；および(3)独立取締役の任命、監査委員会の設立、 会社の管理を強化する。しかし、このような措置の実施は#年の重大な弱点を完全に解決できないかもしれない。 私たちは財務報告書に対する内部統制を持っている。効果的な内部制御システムを実施し維持することができなければ いかなる重大な財務報告の欠陥も、私たちは私たちの経営結果を正確に報告し、私たちの報告義務を履行することができないかもしれません。 詐欺を防ぐことができます効果的な内部統制環境を実現し続けなければ、私たちは大きな損失を受けるかもしれません。 財務諸表の誤った陳述は、私たちの報告義務を履行できず、これは投資家の自信を失う可能性があります。 私たちが報告した財務情報にあります。これは逆に私たちが資本市場に入る機会を制限し、私たちの運営結果を損なう可能性があり、 私たちの普通株の取引価格が低下した。しかも、財務報告書に対する無効な内部統制が暴露される可能性がある。 アメリカはより大きな詐欺や会社の資産乱用のリスクに直面し、証券取引所から撤退する可能性があります。 私たちは規制調査と民事または刑事制裁をリストしている。私たちは以前の財務諸表の再説明を要求されるかもしれません ピリオド。したがって、私たちの業務、財務状況、経営業績と見通し、そして私たちの普通株の取引価格は、 実質的で不利な影響を受けるかもしれない。しかも、財務報告書に対する無効な内部統制は私たちの能力を大きく阻害している。 詐欺を防ぐために。

私たちはアメリカの上場企業です。 2002年に公布された“サバンズ-オキシリー法案”に支配されている。2002年に公布されたサバンズ·オキシリー法404節には 年報20-F表における経営陣の財務報告内部統制に関する報告は、年報から 2024年9月30日までの会計年度報告。さらに“新興成長型企業”でなくなると 雇用法案に定義されているように、私たちの独立公認会計士事務所はその有効性を証明して報告しなければならない。 私たちは財務報告書に対する内部統制を持っている。私たちの経営陣は、財務報告書に対する内部統制はそうではないと結論を出すかもしれない。 有効です。また、私たちの経営陣が財務報告の内部統制に有効であると結論しても、私たちの独立 公認会計士事務所が独立テストを行った後、満足しなければ、合格の報告を出すことができます 私たちの内部統制や私たちの制御が記録され、設計、操作、または審査されたレベル、またはそれが解釈されている場合 関連した要求は私たちとは違う。しかも、私たちが上場企業になった後、私たちの報告義務は重要なものになるかもしれません。 予測可能な未来に、私たちの管理、運営、財政資源、そしてシステムは圧力に直面するだろう。私たちはできないかもしれません 評価、テスト、そしてどんな必要な救済措置もタイムリーに行われる。

公開会社として、私たちは実質的に 民間企業だったときと比較してコストが上がりました

重大な法的、会計、その他の費用を負担します。 民間企業として負担しなかった公的企業としての費用です2002 年のサーベネス · オックスリー法およびその後の規則 SEC とナスダックによって実施され、上場企業のコーポレートガバナンス慣行に様々な要件を課しています。

これらの規則や規制の遵守が増加 法的および財務的コンプライアンスコストを削減し、一部の企業活動により時間がかかりコストがかかります。我々は追加的に 役員賠償責任保険の費用ですまた、公開会社に伴う追加費用が発生します。 報告要件。また、取締役会や執行役員に適格な人材を見つけることが困難になる場合があります。 警官たち

私たちは“新興成長型企業”です “雇用法案”の定義によると、同社は、本年度最終日(1)の早い者まで新興成長型企業となる。 (A)我々の初公募完了5周年後，(B)我々の年間総収入 少なくとも1.235ドルあるいは(C)大規模加速申請者の収入とみなされます。これは市場価値を意味します。 前年9月30日現在、非関連会社が保有する普通株が7億ドルを超え、および(2) この3年間、私たちは10億ドルを超える転換不能債券を発行した。新興成長型会社です 特定の削減報告書やその他の一般的な上場企業の要求に適用することができる。 これらの規定には，新たに出現した成長を評価する際に，404節の監査人認証要件の遵守を免除することが含まれている. 会社は財務報告の内部統制を行い、新たな会計基準の採用または改訂を延期することを許可する このような基準が民間会社に適用される時が来た。

もう「成長」ではない。 株式公開の完了後 5 年 （ いずれか早いもの ） まで、当社は、 重大な追加費用を費やし、セクション 404 の要件を確実に遵守するために実質的な経営努力を捧げます。 SEC のその他の規則と規制です例えば、上場企業として、数を増やすことが求められています。 内部統制や開示統制 · 手続に関する方針を採用します

最近公開会社になったばかりなので、 当社は、これらの規則および規制に関する進展を評価し、モニタリングし続けています。 当社は、発生する可能性のある追加費用の額やかかる費用の時期を確実に予測または見積もることはできません。

実質的な販売のための販売または可用性 当社の普通株式の金額は、市場価格に悪影響を及ぼす可能性があります。

私たちの普通株を大量に売ります。 今回の発行完了後の公開市場、あるいはこれらの販売が発生する可能性があるという見方は、 これは私たちの普通株の市価に深刻な影響を与え、将来の株式発行による資金調達能力を深刻に弱める可能性がある。♪the the the 売却株主が公開市場で売却したり，その後に再販株を売却したりすると，当社の普通株の市価につながる可能性がある 株価は下落するだろう。すべての転売株は自由に取引でき、制限されず、証券法に基づいてさらに登録されることもないだろう。 私たちの既存の株主が持っているいくつかの普通株も将来の公開市場で販売される可能性がありますが、これらの制限を受けています。 証券法におけるルール144およびルール701および適用されるロックプロトコル。本募集説明書の発表日までに。 13，429，800株の普通株が発行され、発行された。これらの普通株を市場に売ることは市場価格を招く可能性があります 私たちの普通株は減少するだろう。

当社は配当を支払うつもりはありません。 予見可能な未来

今後の収益を保持する予定です。 事業の運営 · 拡大に資金を供給するためであり、当社は当面の配当を宣言 · 支払うことは期待していません。 その結果、当社普通株式の市場価格が上昇した場合にのみ、お客様は当社普通株式への投資のリターンを受け取ることができます。

証券や業界アナリストが 当社の事業に関する調査やレポートを公表したり、当社の普通株式に関する否定的なレポートを公表した場合、当社の普通株式の価格 株価や取引量は減少する。

当社の普通株式の取引市場は 業界や証券アナリストが当社や事業について公表する調査やレポートに一部依存しています我々は制御できません これらのアナリストを当社をカバーするアナリストの 1 人以上が当社を格下げした場合、当社普通株式の価格は下落する可能性が高い。 これらのアナリストの 1 人以上が当社の取材を終了したり、当社に関する定期的なレポートを公表しなかった場合、当社の可視性が失われる可能性があります。 金融市場において、当社普通株式の価格や取引額が下落する可能性があります。

外国人個人としての資格がなくなった場合 発行者は、米国国内に適用される取引法の報告要件を完全に遵守する必要があります。 外国民間発行者として発生しない法的経理その他の費用を大幅に追加することになります

外国民間発行者として認定されています。 当社は、外国民間発行者として、代理の提供及び内容を規定する取引法上の規則から免除されています。 役員、取締役および主要株主は、報告および短期利益回収規定を免除されています。 取引法第 16 条に規定されていますまた、取引法上、定期的な報告書の提出は義務付けられていない。 米国国内の発行者と同じくらい頻繁にまたは迅速に SEC に財務諸表を提出し、当社は 米国国内の発行者が開示する必要があるすべての情報を定期報告書で開示します。現在、 外国民間発行者としての資格を有している場合、将来的に外国民間発行者としての資格を停止する可能性があります。 営業結果に重大な悪影響を及ぼす可能性のある大幅な追加費用です

私たちは外国の民間発行者であるため 米国発行者に適用される特定のナスダックコーポレートガバナンス基準から免除されているため、保護は 国内発行者だったらそうでしょう

ナスダック上場規則は上場企業に要求する 他の事項を除いて、それのほとんどの取締役会のメンバーは独立していて、これらの独立取締役は定期的に手配しています。 彼らだけが出席する会議です。しかし、外国の個人発行者として、私たちはそうすることを許可され、私たちは国内に従うことを選択した。 国家実践は上記の要求を代替した.私たちの祖国ケイマン諸島では会社の統治実践は 私たちの取締役会は大多数の独立取締役で構成されているか、あるいはこれらの独立取締役が満足することを強制的に要求します。 定期的に他のメンバーが出席しない場合。そのため，取締役は会社の最良の利益で行動しなければならないにもかかわらず，可能性がある 独立判断の取締役会メンバーが減少し、取締役会の会社経営陣に対する監督レベルが低下する可能性がある 結果はそうです。また、ナスダック上場規則は、米国と国内発行者に完全な報酬委員会で構成された委員会を持たなければならないことを要求している。 独立役員と取締役が著名人に指名される場合は独立役員の過半数が選出または推薦しなければならない 取締役または完全に独立取締役で構成された指名と会社管理委員会。私たちは外国の個人発行者として このような要求に制約されるのではなく、母国に従うことを選択する。私たちの母国のやり方は強制的ではない 給与委員会または指名委員会または指名手続きの設置に関する具体的な要求。そこで私たちはそうします 報酬委員会や指名や会社管理委員会がなければ、私たちの取締役が指名されても選ばれたり推薦されたりするわけではありません 大多数の独立役員に選択されます。ナスダック上場規則は上場企業に株主の承認も求めています。 20%以上に相当する証券(または普通株式に変換または行使可能な証券)を発行または販売する前に 会社が発行または売却前の発行済み普通株式または投票権。私たちは外国の個人発行業者として この要求ではなく、母国のやり方に従うことを選択したために、これは私たちが発行して売ることと同じようにすることを可能にします。 株主の承認を受けていない発行された普通株式または投票権の20%以上。

だから、私たちが「外国人」である限り、 民間発行者」は、上記のすべての法人の対象となる株主に与えられるのと同じ保護を受けない。 ガバナンスの要件を遵守し、国内の発行者よりも保護が少なくなります。

リストを満たすことができない場合 ナスダック資本市場の要件およびその他の規則により、当社の有価証券は上場廃止され、価格に悪影響を及ぼす可能性があります。 我々の有価証券とあなたの売る能力

Nasdaq に普通株式を上場しました。 資本市場記号「 BLMZ 」。

ナスダック上場を維持するため 資本市場では、最低株主数に関するものを含む、ナスダック資本市場の特定のルールを遵守することが求められています。 株式資本、最低株価、公開株式の最低時価額、および様々な追加要件。リストを満たしていても ナスダック資本市場の要件およびその他の適用可能な規則により、これらの要件を満たすことができない場合があります。 適用可能なルール当社がナスダック · 資本市場の上場維持基準を満たすことができない場合、当社の有価証券は 上場廃止の対象となる

2024 年 9 月 12 日、書面による通知を受けました。 (the「通知書」 ） は、 2024 年 7 月 29 日時点の当社普通株式の時価額に基づき、 2024 年 9 月 11 日現在、ナスダック上場規則 5550 （ b ） （ 2 ） に定められた上場証券の最低時価額要件を満たしていません。 (the「上場証券の最低市場価値要件」。Nasdaq 上場規則 5550 （ b ） （ 2 ） は、上場会社が 上場証券の最低時価総額 3500万ドルを維持し、ナスダック上場規則 5810 （ c ） （ 3 ） （ C ） は、 上場有価証券の最低時価額要件を満たす場合 30 年間の継続事業に欠陥がある場合 数日間

通知書は掲載に影響しません NASDAQ でナスダック上場規則 5810 （ c ） （ 3 ） （ C ） に従い、当社には 180 暦日、すなわち 2025 年 3 月 11 日までの期間が提供されました。 (the「コンプライアンス期間」 ） 、 Nasdaq 上場規則 5550 （ b ） （ 2 ） に準拠し、いつでも満たされる場合、 コンプライアンス期間中、当社の普通株式の時価額が最低 10 回の連続事業で 3500万ドル以上になります。 数日間コンプライアンス期間中、当社の普通株式は引き続きナスダックに上場 · 取引を行うものと予想します。我々は意図する 現在から 2025 年 3 月 11 日までの普通株式の時価総額をモニタリングするため、経営陣は様々なオプションを検討しています。 コンプライアンスを取り戻し、継続的な上場を維持できます。2025 年 3 月 11 日までにコンプライアンスを取り戻さない場合、 上場廃止の対象となりますが、上場廃止の決定をナスダックの審問委員会に控訴することがあります。

ナスダック · キャピタル · マーケットがその後上場廃止した場合 取引からの有価証券は以下のような重大な結果に直面する可能性があります

当社の記事における買収防止条項 管理者の変更を妨げる遅延防止する可能性があります

定款の一部規定 株主が有利と認める当社または経営陣の変更を妨害、遅延または防止すること。 取締役会が優先 · 延期その他の特別な権利 · 制限を伴い株式を発行する権限を有する規定 株主によるさらなる投票や行動

通常株式の実際の数を予測することはできません。 ホワイトライオン購入契約に基づきホワイトライオンに売却するか、またはこれらの販売から生じる実際の総収益を売却します。

ホワイトライオンの一定の制限に従う 購入契約および適用法への遵守、当社は、ホワイトライオンにいつでも通知を送付する裁量を有します。 コミットメント期間です。ホワイトライオンが本目論見書に基づき最終的に販売する転売株式の数は、 ホワイトライオン購入契約に基づきホワイトライオンに売却することを選択した普通株式の数。通常株式の実際の数 ホワイトライオンに売却される普通株式の市場価格や市場流動性など、多くの要因に依存する可能性があります。 コミットメント期間中。実際の総収益は 3000万ドル未満の可能性があります。なぜなら、 ホワイトライオンに売却された普通株式 1 株当たりの価格は、コミットメント期間中に変動するため、現在は 売却される普通株式の数、またはこれらの売却に関連して調達される実際の総収益 （ もしあれば ） を予測します。

本募集で普通株式を購入する投資家 時間はおそらく異なる価格を支払う。

本件で普通株式を購入する投資家 異なる時期に提供すると異なる価格が支払われる可能性があり、したがって異なるレベルの希釈と異なる結果を経験する可能性があります 投資結果に。ホワイトライオン購入契約に関連して、市場の需要に応じて、当社の裁量を有します。 ホワイトライオンに売却された普通株式のタイミング、価格、数を変更します。同様に、ホワイトライオン社は、転売株式を異なる価格で売却することがあります。 時間と異なる価格で。投資家は、ホワイトライオンから購入する普通株式の価値が下落する可能性があります。 ホワイトライオンへの将来の取引において、当該投資家が支払った価格よりも低い価格で当社が行った販売の結果として、この提供を行います。

ホワイトライオンへの普通株式の発行は実質的な ホワイトライオンが取得した当該普通株式の売却により、当社の普通株式の価格が 株価は減少する。

ホワイトライオンの登録をしておりますUp転売中です 40，500，000株の普通株式まで。白獅子買収協定に基づいて普通株を買収した後、白獅子はすべて販売する可能性がある。 このような普通株式の一部やすべてはそうではない。当社は白獅子買収協定により白獅子への株式売却は相当なものをもたらす可能性があります 私たちの普通株の他の保有者の利益を希釈する。白ライオンには普通株を大量に売る可能性があります 将来的に株式または株式に関連する証券を売却することをより困難にし、販売の時間と価格は私たちの予想を下回るかもしれない。 欲望です。本募集説明書によると、ホワイトライオンが最終的に転売を提供する株式数は 白獅子購入契約により白獅子に発行された普通株。市場を含めて様々な要素に依存します 私たちの普通株の流動性は、白獅子に普通株を発行することは私たちの普通株の取引価格を招く可能性があります。 断る。

当社は、受け取った純収益の使用について広い裁量権を有しています。 ホワイトライオンへの普通株式の売却から、それらを効果的に使用することができません。

当社の経営陣は、幅広い裁量権を有します。 ホワイトライオンから受け取った収益の適用 （ もしあれば ） 、「収益の使用”, 投資決定の一環として経営陣が収益を適切に使用しているかどうかを評価する機会はありません ホワイトライオン購入の下でのホワイトライオンからの収益の使用を決定する要因の数と変動性のため、 最終的な使用は、現在意図されている使用とは大きく異なる場合があります。経営陣による資金適用の失敗 事業に重大な悪影響を及ぼし、通常商品の価格を引き起こす可能性のある財政的損失を効果的に生じる可能性があります。 株価は下落する。

取締役会は登録を拒否する場合があります。 特定の状況下での普通株式の譲渡。

私たちの取締役会は自分で決めることができます 未納株式または私たちが保有権を持っている普通株の譲渡を拒否します。うちの役員も断るかもしれません。 (I)譲渡文書が証明書とともに当社に提出されない限り，任意の普通株を登録するいかなる譲渡も， 株式及び当社取締役会が譲渡者の権利を示すために合理的に要求する可能性のあるその他の証拠 譲渡を行う，(Ii)譲渡文書は1種類の株式のみに及ぶ，(Iii)譲渡文書 必要があれば、適切な印紙をキャップしなければなりません。(Iv)株式が連名所有者に譲渡された場合、株式の連名所有者数。 (V)譲渡した株式は，われわれを受益者とするいかなる留置権もない；または(Vi) ナスダック資本市場が決定する可能性のある最高対応金額、あるいは私たちの取締役会が時々確定するかもしれない小さい金額 時間の要求に応じて、これで当方に支払います。

取締役が譲渡登録を拒否した場合 彼らは、譲渡文書が提出された日から 3 ヶ月以内に、譲渡者の各人に送付し、 その拒否の譲渡人への通知。譲渡の登録は、 14 日間の通知で広告によって与えることができます 1 つ以上の新聞または電子的手段で、当社の取締役会がそのような時間および期間に停止され、登録簿が閉鎖されます。 取締役は、譲渡の登記を停止したり、登記簿を停止したりしないことを条件として、随時決定することができる。 年間 30 日以上休館しています

しかし、これは市場取引に影響を与えそうにない。 投資家が株式公開で購入した普通株式。当該普通株式の法定所有権及び登録事項 社員の登記簿に記載されている当該普通株式は、預託信託会社に留まる。すべての市場取引 当該普通株式については、市場取引として、取締役の登録を必要とせず、 すべて預託信託会社のシステムを通じて行われます。

当社は「新興成長企業」です 証券法の意味において、新興国に対して利用可能な開示要件の一定の免除を利用する場合 成長企業では他の公開企業とのパフォーマンスを比較することが難しくなります

私たちは“新興成長型企業”です “証券法”の意味では、“雇用法案”によって改正された。雇用法第102条(B)(1)条新興成長の免除 民間企業まで新しい財務会計基準を遵守または改正することを会社に要求する(すなわちそれら 証券法登録宣言の発効を宣言していないか、取引法に基づいて登録されていない証券種別) 新しいまたは修正された財政会計基準は遵守されなければならない。“雇用法案”では，会社は脱退を選択することができる 移行期間を延長し、非新興成長型会社に適用される要求を遵守するが、いずれもこのような選挙 選択が撤回されることはできない。私たちはこのような延長された過渡期から脱退することを選択しないことを選択した、これは基準が発表された時に あるいは改正され、上場企業または民間会社の申請日が異なるのに対し、我々は新興成長型企業として、新たなものを採用することができる 民間会社は、新たな基準または改正された基準を採用する場合の基準または改正された基準を採用する。これは私たちの財務諸表を比較します 新興成長型会社でも新興成長型会社でもない別の上場企業と協力し、その会社は使用しないことを選択した。 使用される会計基準に潜在的な差があるので、過渡期を延長することは困難または不可能である。

Because we are an “emerging growth company,” we may not be subject to requirements that other public companies are subject to, which could affect investor confidence in us and our Ordinary Shares.

For as long as we remain an “emerging growth company,” as defined in the JOBS Act, we will elect to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies,” including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of shareholder approval of any golden parachute payments not previously approved. Because of these lessened regulatory requirements, our shareholders would be left without information or rights available to shareholders of more mature companies. 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 share price may be more volatile. See “Implications of Our Being an ‘Emerging Growth Company.’”

You may have difficulty enforcing judgments against us.

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.”

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 in the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands and from English common law. Decisions of the Privy Council (which is the final Court of Appeal for British overseas territories such as the Cayman Islands) are binding on a court in the Cayman Islands. Decisions of the English courts, and particularly the Supreme Court and the Court of Appeal are generally of persuasive authority but are not binding in the courts of the Cayman Islands. Decisions of courts in other Commonwealth jurisdictions are similarly of persuasive but not binding authority. 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.

Cayman Islands law provides shareholders with only limited rights to requisition a general meeting, and does not provide shareholders with any right to put any proposal before a general meeting. These rights, however, may be provided in a company’s articles of association. Our articles of association allow our shareholders holding shares which carry in aggregate not less than one-tenth of all votes attaching to all of our issued and outstanding shares, to requisition an extraordinary general meeting of our shareholders, in which case our board of directors is obliged to call such meeting. Advance notice of at least five calendar days is required for the convening of any general meeting of our shareholders. A quorum required for a meeting of shareholders consists of at least two shareholders, present in person or by proxy, holding shares which carry in aggregate in excess of 50% of all votes attaching to all of our shares in issue and entitled to vote at such meeting.

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 such as ourselves will be classified as a passive foreign investment company, which is known as a PFIC, for any taxable year if, for such year, either:

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 2023 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.

For purposes of the PFIC analysis, in general, a non-U.S. corporation is deemed to own its pro rata share of the gross income and assets of any entity in which it is considered to own at least 25% of the equity by value.

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.”

Our shareholders may be held liable for claims by third parties against us to the extent of distributions received by them upon redemption of their shares.

If we are forced to enter into an insolvency liquidation, any distributions received by shareholders could be viewed as an unlawful payment if it was proved that immediately following the date on which the distribution was made, we were unable to pay our debts as they fall due in the ordinary course of business. As a result, a liquidator could seek to recover some or all amounts received by our shareholders. Furthermore, our directors may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad faith, thereby exposing themselves and our Company to claims, by paying public shareholders from the trust account prior to addressing the claims of creditors. We cannot assure you that claims will not be brought against us for these reasons. We and our directors and officers who knowingly and willfully authorized or permitted any distribution to be paid out of our share premium account while we were unable to pay our debts as they fall due in the ordinary course of business would be guilty of an offence and may be liable for a fine of 15,000 Cayman Islands Dollars and to imprisonment for five years in the Cayman Islands.

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 product and development programs. 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:

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. Except as required under the federal securities laws, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this prospectus, whether as a result of new information, future events, changes in assumptions, or otherwise.

Industry Data and Forecasts

This prospectus contains 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 counsel with respect to the laws of the Cayman Islands, and COACH Legal Professional Corporation (“COACH”), our counsel with respect to Japanese law, have advised us that there is uncertainty as to whether the courts of the Cayman Islands or Japan 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 or Japan 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 may 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 may 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. However, the Cayman Islands courts are unlikely to enforce a judgment obtained from United States courts under civil liability provisions of the U.S. federal securities law if such judgment is determined by the courts of the Cayman Islands to give rise to obligations to make payments that are penal or punitive in nature. Because such a determination has not yet been made by a court of the Cayman Islands, it is uncertain whether such civil liability judgments from U.S. courts would be enforceable in the Cayman Islands. A Cayman Islands court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

In addition, COACH has advised the Company that it is uncertain whether the Japanese courts will (i) recognize or enforce judgments of United States courts obtained against the Company or any of its directors or officers under the civil liability provisions of the securities laws of the United States or any state of the United States or (ii) accept the original action brought in Japan against the Company or any of its directors or officers under the securities laws of the United States. Japan’s Civil Execution Act (Act No. 4 of 1979, as amended) and Code of Civil Procedure (Act No. 109 of 1996, as amended) require Japanese courts to deny requests for the enforcement of judgments of foreign courts where foreign judgments does not meet the requirements set forth in the Civil Execution Act and the Code of Civil Procedure, including the following:

Reciprocity is defined as the recognition in a foreign country of the validity of a judgment of a Japanese court of the same kind as that of a foreign court in that country under conditions not different in material respects from those in Japan, just as Japan recognizes the judgment of a foreign court, and the Japanese courts will determine the existence of reciprocity on a case-by-case basis for each judgment rendered by a foreign court

For example, Japanese courts recognize reciprocity for judgments of courts in the states of Hawaii, New York, California, and Nevada (mainly for monetary claims), but there is no guarantee that reciprocity will be recognized for judgments in other states or for different types of U.S. judgments. Therefore, U.S. court judgments for civil liability premised on U.S. federal and state securities laws may not be enforceable in Japan.

USE OF PROCEEDS

All of the Resale Shares will be sold by the Selling Shareholders for their own accounts. We will not receive any of the proceeds from the resale of the Resale Shares. However, we may receive up to $30,000,000 in gross proceeds under the White Lion Purchase Agreement from sales of Ordinary Shares that we may elect to make to White Lion pursuant to the White Lion Purchase Agreement, if any, from time to time in our sole discretion, during the Commitment Period. However, we will not receive any proceeds from the issuance of the Commitment Shares.

The proceeds from White Lion that we receive under the White Lion Purchase Agreement, if any, are currently expected to be used for general corporate purposes, including working capital. Accordingly, we retain broad discretion over the use of the net proceeds from the sale of our Ordinary Shares under the White Lion Purchase Agreement. The precise amount and timing of the application of such proceeds will depend upon our liquidity needs and the availability and cost of other capital over which we have little or no control. As of the date hereof, we cannot specify with certainty the particular uses for the net proceeds from the sales of our Ordinary Shares, if any, to White Lion under the White Lion Purchase Agreement.

We will incur all costs associated with this prospectus and the registration statement of which it is a part.

DIVIDEND POLICY

Since our inception, we have not declared or paid cash dividends on our Ordinary Shares. Any decision to pay dividends in the future will be subject to a number of factors, including our financial condition, results of operations, the level of our retained earnings, capital demands, general business conditions, and other factors our board of directors may deem relevant. We currently intend to retain most, if not all, of our available funds and any future earnings after this offering to fund the operation, development, and growth of our business, and, as a result, we do not expect to pay any dividends in the foreseeable future. Consequently, we cannot give any assurance that any dividends may be declared and paid in the future.

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 due in the ordinary course of business.

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, BloomZ 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 BloomZ 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, if any, on our Ordinary Shares will be paid in U.S. dollars.

SELLING SHAREHOLDERS

This prospectus relates to the possible resale from time to time by (i) White Lion of any or all of the Ordinary Shares that may be issued by us to White Lion under the White Lion Purchase Agreement and (ii) the Network 1 Shareholders of any or all of the 500,000 Ordinary Shares issued by us to the Network 1 Shareholders as a portion of the finder’s fee in connection with the White Lion Purchase Agreement. We are registering the Resale Shares pursuant to the provisions of the RRA we entered into with White Lion on October 1, 2024, in order to permit White Lion and the Network 1 Shareholders to offer the Resale Shares for resale from time to time. Neither White Lion nor any of the Network 1 Shareholders have had any material relationship with us within the past three years, other than (i) White Lion regarding the transactions contemplated by the White Lion Purchase Agreement and the RRA, (ii) the Network 1 Shareholders regarding the White Lion Purchase Agreement, the RRA and the IPO, in which Network 1 was the lead underwriter, or (iii) as otherwise expressly disclosed in this prospectus.

The table below presents information regarding each Selling Shareholder and the Resale Shares that it may offer from time to time under this prospectus. This table is prepared based on information supplied to us by the Selling Shareholders, and reflects holdings as of October 30, 2024. The number of Ordinary Shares in the column “Maximum Number of Ordinary Shares to be Offered Pursuant to this Prospectus” represents all of the Resale Shares that the Selling Shareholders may offer under this prospectus. The Selling Shareholders may sell some, all or none of its Resale Shares in this offering. We do not know how long the Selling Shareholders will hold the Resale Shares before selling them, and we currently have no agreements, arrangements or understandings with the Selling Shareholders regarding the sale of any of the Resale Shares.

Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes Ordinary Shares with respect to which a Selling Shareholder has voting and investment power. The percentage of Ordinary Shares beneficially owned by each Selling Shareholder prior to the offering shown in the table below is based on an aggregate of 13,429,800 Ordinary Shares outstanding as of the date of this prospectus. Because the purchase price of the Ordinary Shares issuable under the White Lion Purchase Agreement is determined on the closing date with respect to each purchase, the number of Ordinary Shares that may actually be sold by the Company under the White Lion Purchase Agreement may be fewer than the number of the Resale Shares. The column “Number of Ordinary Shares Owned After Offering” assumes the sale of all of the Resale Shares offered by the Selling Shareholders pursuant to this prospectus.

The Company may require the Selling Shareholders to suspend the sales of the Resale 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.

White Lion Transaction

On October 1, 2024, the Company entered into the White Lion Purchase Agreement with White Lion and a related Registration Rights Agreement (the “RRA”). Pursuant to the White Lion Purchase Agreement, the Company has the right, but not the obligation, to require White Lion to purchase, from time to time, up to $30,000,000 in aggregate gross purchase price of newly issued Ordinary Shares, subject to certain limitations and conditions set forth in the White Lion Purchase Agreement.

Subject to the satisfaction of certain customary conditions including, without limitation, the effectiveness of a registration statement registering the resale of the Ordinary Shares issuable pursuant to the White Lion Purchase Agreement, the Company’s right to sell Ordinary Shares to White Lion commenced on the date of the execution of the White Lion Purchase Agreement and extends until the earlier of (i) White Lion having purchased Ordinary Shares equal to $30,000,000 or (ii) one year from the date of execution of the White Lion Purchase Agreement.

During the Commitment Period, subject to the terms and conditions of the White Lion Purchase Agreement, the Company may exercise its right to sell its Ordinary Shares. The Company may deliver a Fixed Purchase Notice (as such term is defined in the White Lion Purchase Agreement), pursuant to which the Company can require White Lion to purchase up to a number of Ordinary Shares equal to the lesser of (i) $150,000 or (ii) 100% of the Average Daily Trading Volume (as such term is defined in the White Lion Purchase Agreement). The Company may also deliver a Rapid Purchase Notice (as such term is defined in the White Lion Purchase Agreement), pursuant to which the Company may require White Lion to purchase up to a number of Ordinary Shares equal to the lesser of (i) 100% of the Average Daily Trading Volume and (ii) $2,000,000 divided by the highest closing price of the Ordinary Shares over the most recent five business days immediately prior to the receipt of the Rapid Purchase Notice. White Lion may waive such limits under any notice at its discretion and purchase additional Ordinary Shares.

The price to be paid by White Lion for any Ordinary Shares that the Company requires White Lion to purchase will depend on the type of purchase notice that the Company delivers. For Ordinary Shares being issued pursuant to a Fixed Purchase Notice, the purchase price per share will be equal to 87% of the lowest VWAP of the Ordinary Shares that occurs during the five consecutive business days prior to the purchase notice. For Ordinary Shares being issued pursuant to a Rapid Purchase Notice, the purchase price per share will be equal to the average of the three lowest traded prices of the Ordinary Shares on the date that the Rapid Purchase Notice is delivered.

No purchase notice shall result in White Lion beneficially owning (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, and Rule 13d-3 thereunder) more than 9.99% of the number of Ordinary Shares outstanding immediately prior to the issuance of Ordinary Shares issuable pursuant to a purchase notice.

Either the Company or White Lion has the right to terminate the White Lion Purchase Agreement at any time in the event of a material breach of the White Lion Purchase Agreement by the other party, which shall be effected by written notice being sent by non-breaching party to the breaching party, provided however, that the Company shall have effectively delivered the Commitment Shares to White Lion prior to any such termination. The White Lion Purchase Agreement also automatically terminates on the earlier of (i) the end of the Commitment Period, (ii) the date that the Company commences a voluntary bankruptcy proceeding, a custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors, or (iii) immediately upon the delisting of the Ordinary Shares from the Nasdaq Capital Market.

In consideration for the commitment of White Lion, as described above, the Company has agreed that it will issue to White Lion Ordinary Shares (“Commitment Shares”) in an amount equal to $375,000 divided by the closing price of the Ordinary Shares on the Commitment Shares Determination Date (as such term is defined in the White Lion Purchase Agreement). The Commitment Shares will be fully earned by White Lion as of the execution date of the White Lion Purchase Agreement, and the issuance of the Commitment Shares is not contingent upon any other event or condition, including, without limitation, the Company’s submission of a purchase notice to White Lion, the filing of a registration statement, and irrespective of any termination of the White Lion Purchase Agreement.

Concurrently with the White Lion Purchase Agreement, the Company entered into the RRA with White Lion, pursuant to which the Company agreed to file, within 15 days following the execution of the White Lion Purchase Agreement, a resale registration statement with the SEC covering the resale by White Lion of the maximum number of Ordinary Shares permitted to be included therein in accordance with applicable SEC rules, regulations and interpretations and the Commitment Shares. The RRA also contains usual and customary damages provisions for failure to file and failure to have the registration statement declared effective by the SEC within the time periods specified therein.

The White Lion Purchase Agreement and the RRA contain customary representations, warranties, conditions and indemnification obligations of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties.

CORPORATE HISTORY AND STRUCTURE

Our Corporate History

BloomZ Japan was established on October 17, 2017, as a limited liability company organized under the laws of Japan.

On December 1, 2020, CyberStep (TSE: 3810), a Japanese public company, acquired 100% of the equity interests in BloomZ Japan from its original shareholders. BloomZ Japan became CyberStep’s wholly owned subsidiary.

In connection with the IPO, we undertook a reorganization of our corporate structure (the “Reorganization”) in the following steps:

On July 25, 2024, we completed the IPO of 1,250,000 Ordinary Shares at a public offering price of $4.30 per share. The gross proceeds raised from the IPO were approximately $5.38 million prior to deducting underwriting discounts and other offering expenses payable by us.

On August 26, 2024, we issued 497,400 Ordinary Shares to HeartCore Enterprises, Inc., a Delaware corporation, and 497,400 Ordinary Shares to Spirit Advisors, LLC, a Delaware limited liability company, in consideration of the services they provided to the Company in connection with our IPO.

Recent Development

Consulting Agreement

On January 11, 2023 (the “Effective Date”), the Company entered into a Consulting and Services Agreement, as amended on September 14, 2023 (the “Consulting Agreement”), with HeartCore Enterprises, Inc., a Selling Shareholder (“HeartCore”). Pursuant to the terms of the Consulting Agreement, HeartCore agreed to provide the Company certain services, including the following (collectively, the “Services”):

Pursuant to the terms of the Consulting Agreement, the Company agreed to compensate HeartCore US$500,000, to be paid as follows, in return for the provision of the Services during the eight-month term (the “Term”):

For any services performed by HeartCore beyond the Term, the Company agreed to compensate HeartCore for such services at the rate of US$150 per hour, based on the hours spent by personnel of HeartCore.

The Term of the Consulting Agreement expired.

White Lion Transaction

On October 1, 2024, the Company entered into the White Lion Purchase Agreement with White Lion and the RRA. Pursuant to the White Lion Purchase Agreement, the Company has the right, but not the obligation, to require White Lion to purchase, from time to time, up to $30,000,000 in aggregate gross purchase price of newly issued Ordinary Shares, subject to certain limitations and conditions set forth in the White Lion Purchase Agreement.

Subject to the satisfaction of certain customary conditions including, without limitation, the effectiveness of a registration statement registering the resale of the Ordinary Shares issuable pursuant to the White Lion Purchase Agreement, the Company’s right to sell Ordinary Shares to White Lion commenced on the date of the execution of the White Lion Purchase Agreement and extends until the earlier of (i) White Lion having purchased Ordinary Shares equal to $30,000,000 or (ii) one year from the date of execution of the White Lion Purchase Agreement.

During the Commitment Period, subject to the terms and conditions of the White Lion Purchase Agreement, the Company may exercise its right to sell its Ordinary Shares. The Company may deliver a Fixed Purchase Notice (as such term is defined in the White Lion Purchase Agreement), pursuant to which the Company can require White Lion to purchase up to a number of Ordinary Shares equal to the lesser of (i) $150,000 or (ii) 100% of the Average Daily Trading Volume (as such term is defined in the White Lion Purchase Agreement). The Company may also deliver a Rapid Purchase Notice (as such term is defined in the White Lion Purchase Agreement), pursuant to which the Company may require White Lion to purchase up to a number of Ordinary Shares equal to the lesser of (i) 100% of the Average Daily Trading Volume and (ii) $2,000,000 divided by the highest closing price of the Ordinary Shares over the most recent five business days immediately prior to the receipt of the Rapid Purchase Notice. White Lion may waive such limits under any notice at its discretion and purchase additional Ordinary Shares.

The price to be paid by White Lion for any Ordinary Shares that the Company requires White Lion to purchase will depend on the type of purchase notice that the Company delivers. For Ordinary Shares being issued pursuant to a Fixed Purchase Notice, the purchase price per share will be equal to 87% of the lowest VWAP of the Ordinary Shares that occurs during the five consecutive business days prior to the purchase notice. For Ordinary Shares being issued pursuant to a Rapid Purchase Notice, the purchase price per share will be equal to the average of the three lowest traded prices of the Ordinary Shares on the date that the Rapid Purchase Notice is delivered.

No purchase notice shall result in White Lion beneficially owning (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, and Rule 13d-3 thereunder) more than 9.99% of the number of Ordinary Shares outstanding immediately prior to the issuance of Ordinary Shares issuable pursuant to a purchase notice.

Either the Company or White Lion has the right to terminate the White Lion Purchase Agreement at any time in the event of a material breach of the White Lion Purchase Agreement by the other party, which shall be effected by written notice being sent by non-breaching party to the breaching party, provided however, that the Company shall have effectively delivered the Commitment Shares to White Lion prior to any such termination. The White Lion Purchase Agreement also automatically terminates on the earlier of (i) the end of the Commitment Period, (ii) the date that the Company commences a voluntary bankruptcy proceeding, a custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors, or (iii) immediately upon the delisting of the Ordinary Shares from the Nasdaq Capital Market.

In consideration for the commitment of White Lion, as described above, the Company has agreed that it will issue to White Lion Commitment Shares in an amount equal to $375,000 divided by the closing price of the Ordinary Shares on the Commitment Shares Determination Date (as such term is defined in the White Lion Purchase Agreement). The Commitment Shares will be fully earned by White Lion as of the execution date of the White Lion Purchase Agreement, and the issuance of the Commitment Shares is not contingent upon any other event or condition, including, without limitation, the Company’s submission of a purchase notice to White Lion, the filing of a registration statement, and irrespective of any termination of the White Lion Purchase Agreement.

Concurrently with the White Lion Purchase Agreement, the Company entered into the RRA with White Lion, pursuant to which the Company agreed to file, within 15 days following the execution of the White Lion Purchase Agreement, a resale registration statement with the SEC covering the resale by White Lion of the maximum number of Ordinary Shares permitted to be included therein in accordance with applicable SEC rules, regulations and interpretations and the Commitment Shares. The RRA also contains usual and customary damages provisions for failure to file and failure to have the registration statement declared effective by the SEC within the time periods specified therein.

The White Lion Purchase Agreement and the RRA contain customary representations, warranties, conditions and indemnification obligations of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties.

Our Corporate Structure

The following diagram illustrates our corporate structure as of the date of this prospectus.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We conduct all of our operations through our subsidiary in Japan, BloomZ Japan. BloomZ Japan is an audio producing and voice actor managing company, which aims to promote voice acting to the world stage, as an essential component of animation and an aspect of Japanese culture. Since our inception in 2017, we have been devoting ourselves to providing audio production services as well as voice acting educational services to Japanese youth who wish to become professional voice actors.

COVID-19 Affecting Our Results of Operations

While our business was not materially affected by the COVID-19 pandemic during the six months ended March 31, 2024 and 2023 and during the fiscal year ended September 30, 2023, it was substantially and adversely affected during the fiscal years ended September 30, 2022 and 2021. The COVID-19 pandemic adversely impacted Japan between the beginning of 2020 and the first half of 2023. During such period, the Japanese government issued several Declarations of Emergency, requesting the closing of non-essential activities and businesses across the country as a preemptive safeguard against the spread of COVID-19. This situation adversely impacted businesses across the country, particularly in the education and entertainment fields in which we operate.

Audio Production

During the fiscal years ended September 30, 2022 and 2021, many of the orders for audio production services we had received were postponed, due to the cessation of the entirety of animation production projects in compliance with the government COVID-19 policies. In addition, the progress of a few audio productions was delayed, as some of our collaborating voice actors were infected with COVID-19. Our audio production business was not materially affected by the COVID-19 pandemic during the six months ended March 31, 2024 and 2023 and during the fiscal year ended September 30, 2023, because fewer orders for audio production services were postponed, as fewer animation production projects were deferred or canceled compared to the fiscal years ended September 30, 2022 and 2021. However, the revenue generated from the audio production business during the fiscal year ended September 30, 2023 nevertheless decreased by 46.9% compared to the fiscal year ended September 30, 2022, due to a reason unrelated to the COVID-19 pandemic. The decrease was mainly because we were devoting ourselves to several large projects that are expected to take a few years to complete during the fiscal year ended September 30, 2023, and thus, fewer revenue-generating projects were completed during such period compared to the fiscal year ended September 30, 2022. The revenue generated from the audio production business during the six months ended March 31, 2024 increased compared to the same period in the prior year.

VTuber Management

COVID-19 significantly affected the streaming schedule due to infections afflicting our affiliated VTubers during fiscal year 2022. In addition, offline events featuring our affiliated VTubers we planned to hold and expected to significantly contribute to the revenue were canceled in fiscal year 2022, either in compliance with the government’s COVID-19 policies or due to the infection of our affiliated VTubers. Since fewer of our affiliated VTubers were infected with COVID-19 and most of our infected affiliated VTubers had recovered from COVID-19, the streaming schedule during the six months ended March 31, 2024 and 2023 and during the fiscal year 2023 was not as significantly affected as it was during the fiscal year 2022. Consequently, during the six months ended March 31, 2024 and 2023 and during the fiscal year ended September 30, 2023, the number of VTubers available for live streaming increased, which led to higher advertisement revenue, and thus, the revenue generated from the VTuber management business significantly increased.

Voice Actor Workshops

Our physical voice actor workshops were frequently canceled, in compliance with the government policies during the fiscal years ended September 30, 2022 and 2021, due to the COVID-19 pandemic. While our voice actor workshop business was not materially affected by the COVID-19 pandemic during the six months ended March 31, 2024 and during the fiscal year ended September 30, 2023, as no physical voice actor workshops were canceled during these periods, the revenue generated from the voice actor workshop business decreased compared to the same period in the prior year. The decrease is primarily because the Company focused on the operation of the VTuber management business rather than the recruitment of members for the voice actor workshops during the six months ended March 31, 2024 and during the fiscal year ended September 30, 2023.

The extent of any future impact of the COVID-19 pandemic on our business is still highly uncertain and cannot be predicted as of the date of this prospectus. Any potential impact to our operating results will depend, to a large extent, on future developments and new information that may emerge regarding the duration and severity of the COVID-19 pandemic and the actions taken by government authorities to contain the spread of the COVID-19 pandemic, almost all of which are beyond our control.

See “Risk Factors — Risks Related to Our Business and Industry — Our financial condition, results of operations, and cash flows have been adversely affected by the COVID-19 pandemic.”

Key Operating Metrics

In assessing the performance of our businesses, we review and focus on our key financial performance indicators — revenue, gross profit and gross margin, and operating income and operating margin.

Revenue

Revenue includes the proceeds from the audio production business, the VTuber management business, and the voice actor workshop business, whereas the cost of goods sold primarily includes the labor outsourcing costs incurred in delivering revenue.

Operating Profit and Operating Margin

Operating profit is the difference between our revenue and cost of revenue, selling, general, and administrative (“SG&A”) expenses, and depreciation and amortization. Operating margin is the operating profit expressed as a percentage of revenue.

Results of Operations

Comparison of Results of Operations for the Six Months Ended March 31, 2024 and 2023

The following table sets forth our statements of operations for the six months ended March 31, 2024 and 2023:

Revenue

Revenue increased by ¥60,248 thousand ($399 thousand) or 97.0% to ¥122,377 thousand ($809 thousand), primarily due to the following factors:

Cost of Revenue

Total cost of revenue increased by ¥34,728 thousand ($229 thousand), or 73.7%, to ¥81,850 thousand ($541 thousand), reflecting the change in the direct costs associated with the fluctuation in revenue.

SG&A Expenses and Depreciation and Amortization Expenses and Operating Margin

Total selling, general, and administrative, or SG&A, expenses increased by ¥32,612 thousand ($216 thousand), or 165.9%, to ¥52,274 thousand ($346 thousand), primarily due to the following factors:

Depreciation and amortization expenses increased by ¥2,753 thousand ($18 thousand), or 70.9%, to ¥6,635 thousand ($44 thousand), primarily due to the additional joint investments the Company acquired during the six months ended March 31, 2024.

Operating loss increased by ¥9,845 thousand ($64 thousand), or 115.3%, to an operating loss of ¥18,382 thousand ($122 thousand) during the six months ended March 31, 2024 from an operating loss of ¥8,537 thousand ($58 thousand) during the six months ended March 31, 2023. Operating margin decreased from a loss of 13.7% to a loss of 15.0%.

Interest Expenses, Net

Net interest expenses decreased by ¥591 thousand ($4 thousand), or 86.5%, to ¥92 thousand ($1 thousand), mainly because the ¥200,000 thousand loan that the Company borrowed from CyberStep in January 2023 was repaid in June 2023.

Other Income/Expenses, net

Other income was ¥58 thousand ($0.4 thousand), primarily consists of income received from the short-term loan receivable and consumption taxes paid.

Net Loss

As a result, net loss was ¥18,416 thousand ($123 thousand) during the six months ended March 31, 2024 compared to a net loss of ¥9,140 thousand ($62 thousand) during the six months ended March 31, 2023.

Cash Flows/Liquidity

As of March 31, 2024 and 2023, we had cash of ¥29,070 thousand ($192 thousand) and ¥59,955 thousand ($396 thousand), respectively. Liquidity is a measure of our ability to meet potential cash requirements. We generally funded our operations with cash flow from operations and, when needed, with borrowings from Japanese financial institutions or capital injections from our principal shareholders. Our principal uses for liquidity have been to fund media rights bids for animation projects in our audio production business and for daily operations and working capital. We expect that our cash and cash equivalents will be sufficient to fund our operating expenses and cash obligations for the next 12 months; however, our ability to continue as a going concern depends upon our ability to attract and retain revenue generating customers, acquire new customer contracts, and secure additional financing.

Operating Activities

Net cash generated by operating activities increased from ¥8,736 thousand ($58 thousand) during the six months ended March 31, 2023 to ¥63,036 thousand ($413 thousand) during the six months ended March 31, 2024, primarily due to the increase in deferred revenue.

Investing Activities

Net cash used in investing activities increased from ¥35,640 thousand ($236 thousand) during the six months ended March 31, 2023 to ¥79,950 thousand ($529 thousand) during the six months ended March 31, 2024, mainly due to higher spending related to the acquisition of joint investments during the six months ended March 31, 2024.

Financing Activities

Net cash provided by financing activities decreased from a cash inflow of ¥186,289 thousand ($1,232 thousand) during the six months ended March 31, 2023 to a cash outflow of ¥13,971 ($92 thousand) during the six months ended March 31, 2024, primarily due to the reduction in the amount of loan proceeds the Company received from a related party during the six months ended March 31, 2024.

Debt

The Company’s borrowings as of March 31, 2024 and September 30, 2023, including short-term and long-term positions, consisted of the following:

Contractual Obligations and Commitments

Comparison of Results of Operations for the Fiscal Years Ended September 30, 2023 and 2022

The following table sets forth our statements of operations for the fiscal years ended September 30, 2023 and 2022:

Revenue

Revenue decreased by 11.8% year-over-year to ¥128,313 thousand ($858 thousand) primarily due to the following factors:

Cost of Revenue

Total cost of revenue decreased by 22.6% year-over-year to ¥83,308 thousand ($558 thousand), reflecting the change in the direct costs associated with the fluctuation in revenue.

SG&A Expenses and Depreciation and Amortization Expenses and Operating Margin

Total selling, general, and administrative, or SG&A, expenses increased by 85.6% year-over-year to ¥51,626 thousand ($345 thousand), primarily due to the following factors:

Depreciation and amortization expenses increased by 161.9% year-over-year to ¥8,264 thousand ($55 thousand), primarily due to the additional joint investments the Company acquired during the fiscal year ended September 30, 2023.

Operating income decreased by 318.2% to an operating loss of ¥14,885 thousand ($100 thousand) during the fiscal year ended September 30, 2023 from an operating income of ¥6,821 thousand ($47 thousand) during the fiscal year ended September 30, 2022. Operating margin decreased from a profit of 4.7% to a loss of 11.6%.

Interest Expenses, Net

Net interest expenses increased by 2,109.0% year-over-year to ¥1,723 thousand ($12 thousand), mainly due to the ¥200,000 thousand loan that the Company borrowed from CyberStep in January 2023. The loan was repaid in June 2023.

Other Income/Expenses, net

Other income was ¥812 thousand ($5 thousand), reflecting interest income from short-term loan receivable.

Income Tax Expense

Income tax expense decreased by 100.0% year-over-year to ¥0 ($0) due to the pre-tax loss the Company had during the fiscal year ended September 30, 2023.

Net Loss

As a result, net loss was ¥15,796 thousand ($107 thousand) during the fiscal year ended September 30, 2023 compared to a net income of ¥241 thousand ($2 thousand) during the fiscal year ended September 30, 2022.

Cash Flows/Liquidity

As of September 30, 2023 and 2022, we had cash of ¥59,955 thousand ($401 thousand) and ¥65,480 thousand ($438 thousand), respectively. Liquidity is a measure of our ability to meet potential cash requirements. We generally funded our operations with cash flow from operations and, when needed, with borrowings from Japanese financial institutions or capital injections from our principal shareholders. Our principal uses for liquidity have been to fund media rights bids for animation projects in our audio production business and for daily operations and working capital. We expect that our cash and cash equivalents will be sufficient to fund our operating expenses and cash obligations for the next 12 months; however our ability to continue as a going concern depends upon our ability to attract and retain revenue generating customers, acquire new customer contracts, and secure additional financing.

Operating Activities

Net cash generated by operating activities decreased from ¥52,819 thousand ($398 thousand) generated by operating activities during the fiscal year ended September 30, 2022 to the net cash use of ¥41,825 thousand ($280 thousand) during the fiscal year ended September 30, 2023, primarily due to the following factors:

Investing Activities

Net cash used in investing activities increased from ¥6,434 thousand ($48 thousand) used in investing activities during the fiscal year ended September 30, 2022 to ¥20,147 thousand ($135 thousand) during the fiscal year ended September 30, 2023, primarily due to higher spending related to the acquisition of joint investments totaling ¥19,828 thousand ($133 thousand) during the fiscal year ended September 30, 2023 compared to ¥6,068 thousand ($41 thousand) during the fiscal year ended September 30, 2022.

Financing Activities

Net cash provided by financing activities increased from ¥2,240 thousand ($17 thousand) used in financing activities during the fiscal year ended September 30, 2022 to ¥56,447 ($378 thousand) provided by financing activities during the fiscal year ended September 30, 2023, primarily due to the proceeds the Company received from issuance of shares during the fiscal year ended September 30, 2023 while the Company did not issue new shares during the fiscal year ended September 30, 2022. The increase was partially offset by the payments of deferred offering costs made during the fiscal year ended September 30, 2023.

Debt

The Company’s borrowings as of September 30, 2023 and 2022, including short-term and long-term positions, consisted of the following:

Contractual Obligations and Commitments

Critical Accounting Polices and use of Estimates

Basis of Presentation

The accompanying financial statements appearing elsewhere in this prospectus are presented in Japanese yen, the currency of the country in which the Company is incorporated and primarily operates. The accompanying financial statements are prepared in accordance with U.S. GAAP.

Going Concern

The Company had a loss of ¥18,416 thousand, ¥15,796 thousand and a profit of ¥241 thousand for the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, respectively. The operating income and loss resulted in an accumulated deficit of ¥34,905 thousand, ¥16,489 thousand and ¥693 thousand as of March 31, 2024, September 30, 2023 and 2022, respectively.

The Company’s financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company’s ability to continue as a going concern is dependent upon the Company’s ability to attract and retain revenue generating customers, acquire new customer contracts, and secure additional financing.

The Company may consider obtaining additional financing in the future through the issuance of the Company’s Ordinary Shares, other equity or debt financings, or other means. The Company, however, is dependent upon its ability to obtain new revenue generating customer contracts, secure equity and/or debt financing and there are no assurances that the Company will be successful. The financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts, or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Use of Estimates

The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the reporting date, and the reported amounts of revenue and expense during the reporting period. These estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future and include, but are not limited to, useful lives of property and equipment, deferred costs, and valuation allowance against net deferred tax assets. Actual results could differ from those estimates.

Revenue Recognition

The Company applies ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) for all periods presented in the financial statements. To determine the appropriate amount of revenue to be recognized in accordance with ASC 606, the Company follows a five-step model as follows:

1 — Identification of the contract with a customer

2 — Identification of the performance obligation in the contract

3 — Determination of the transaction price

4 — Allocation of the transaction price to the performance obligation in the contract

5 — Recognition of revenue when, or as, a performance obligation is satisfied

The Company’s revenue is primarily derived from audio production and provision of talent management business, internet business, and workshop business. The Company assesses the contract term as the period in which the parties to the contract have enforceable rights and obligations. Customer contracts are generally standardized and non-cancellable for the duration of the stated contract term. Consumption taxes collected and remitted to tax authorities are excluded from revenue.

The Company may use third-party vendors to provide certain goods or services to its customers. The Company evaluates those relationships to determine whether revenue should be reported gross or net. The Company recognizes revenue on a gross basis where it acts as principal and controls the goods and services used to fulfill the performance obligations to the customer and on a net basis where it acts as an agent.

Regarding revenue derived from audio production and talent management business, the Company did not act as an agent during the fiscal years ended September 30, 2023 and 2022. During the fiscal year ended September 30, 2023, the Company started sales of novel games as part of their Internet business. The Company evaluated the relationships with retailers and recognized revenue on a gross basis when the Company acted as principal and recognized in net when the Company acted as an agent.

Leases

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities — current, and operating lease liabilities — noncurrent on the balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term.

Leases with a lease term of 12 months or less at inception are not recorded on our balance sheet and are expensed on a straight-line basis over the lease term in our statement of operations.

Quantitative and Qualitative Disclosure about Market Risk

Currency Risk

We transact our operating activities in Japanese yen. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities, and net investments in foreign operations. We acknowledge the recent deterioration and volatility of the Japanese yen relative to U.S. dollars, but believe we are relatively insulated from foreign exchange risk, as primarily all of our economical transactions are conducted within Japan and using Japanese yen.

Market Risk

We derive revenue primarily from animation content and other visual and entertainment mediums which feature animation or digital content. We believe the end-market demands for such content will continue to increase in the foreseeable future and believe that products such as merchandises and film adaptations that serve this demand will continue to be in demand.

BUSINESS

Overview

We conduct all of our operations through our subsidiary in Japan, BloomZ Japan. BloomZ Japan is an audio producing and voice actor managing company, which aims to promote voice acting to the world stage, as an essential component of animation and an aspect of Japanese culture. Since our inception in 2017, we have been devoting ourselves to providing audio production services as well as voice acting educational services to Japanese youth who wish to become professional voice actors.

We are currently engaged in three lines of businesses: (i) the audio production business; (ii) the VTuber management business; and (iii) the voice actor workshop business.

Audio Production Business

Since our inception in 2017, we have provided comprehensive audio production services for animations and video games. The procedure of comprehensive audio production begins once the animation/video game-producing company initially completes the visual works of the animation/video game and generally consists of dubbing, BGM producing, and mixing.

We have developed certain cooperating models with animation/video game-producing companies, under which we receive the audio production fees from the production committee/video game-producing companies for our comprehensive audio production services. In particular, we can choose to invest in the whole animation-producing project under the cooperating model for animation production and would be entitled to share the profit based on our investment ratio after the animations are sold.

The fees paid by the production committee/video game-producing companies for our comprehensive audio production services are the primary income of our audio production business, and they amounted to approximately JPY54,650 thousand, JPY63,835 thousand and JPY120,121 thousand during the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, which accounted for approximately 44.7%, 49.8% and 83.2% of our total revenue for those periods, respectively.

VTuber Management Business

We commenced our VTuber management business in December 2021. A “VTuber” is a virtual character (animated character) we create by utilizing motion-capture technology for our streamers to provide their voice to stream real-time videos featuring human facial expressions and gestures, which can also communicate and interact with audiences through the chat function by embedding in live-streaming platforms.

“Hoshimeguri Gakuen” is a VTuber group consisting of 16 of the affiliated VTubers, as of the date of this prospectus, we have managed and operated since its debut in December 2021. Our affiliated VTubers mainly focus on real-time live streaming on online platforms such as YouTube, FANBOX and BOOTH, such as chatting, singing, and game live streaming. Besides interactive real-time live streaming, we also sell goods and digital merchandise featuring the virtual characters of our affiliated VTubers on FANBOX and BOOTH. In addition, our affiliated VTubers participate and perform in online live streaming events held by other companies, such as VirtualThruLens.

Most of the revenue of the VTuber management business was from the profits distributed by the online platforms and the performing fees distributed by the host companies of live streaming events. For the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, the revenue generated from the VTuber management business was JPY59,083 thousand, JPY57,442 thousand and JPY18,630 thousand, which accounted for approximately 48.3%, 44.8% and 12.8% of our total revenue for those periods, respectively. Among the sources of revenue generated from the VTuber management business during the six months ended March 31, 2024, 24.6%, 51.0%, 1.4%, and 23.0% came from YouTube, BOOTH, FANBOX, and others, respectively. During the fiscal year ended September 30, 2023, 29.0%, 42.5%, 2.1%, and 26.3% came from YouTube, BOOTH, FANBOX, and others, respectively. During the fiscal year ended September 30, 2022, 54.0%, 26.4%, 6.6%, and 13% came from YouTube, BOOTH, FANBOX, and others, respectively.

Voice Actor Workshop Business

We have provided professional and practical voice acting educational services through our voice actor workshops since our inception in 2017. In cooperation with active professional voice actors, we regularly host physical voice actor workshops four times a month in the studios leased by CyberStep in Tokyo, Japan, which CyberStep permits such use at no charge.

To cultivate young voice actors and their abilities to work as a professional, we provide our members basic vocalization-related lessons and combine actual animation and video game scripts into the training sections to equip them with practical skills and mannerisms in dubbing and audio production. As of March 31, 2024, we had 70 registered members who had participated in our workshops.

We generally charge every registered member a membership fee of JPY22 thousand monthly for four lessons in one month. Membership fees from the registered members provide the primary income of our voice actor workshop business, and they amounted to approximately JPY2,040 thousand, JPY5,054 thousand and JPY5,805 thousand during the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, which accounted for approximately 1.7%, 3.9% and 4.0% of our total revenue for those periods, respectively.

Our Competitive Strengths

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

Visionary and Experienced Management Team with Strong Technical and Operational Expertise

Our senior management team has extensive experience in the audio production industry, extending to both the animation and video game production industry. Ms. Kazusa Aranami, our founder and chief executive officer, is known for her achievement as a voice actress. As an entrepreneur with a strong voice acting background and over 10 years of experience in the audio production industry, Ms. Aranami has led us to establish an optimized and robust standard of procedure to ensure the high quality and efficiency of our audio production services and secured the main sources of the orders for our audio production services with her insight into the industry trends and her deep connections within the industry. Having worked in the animation production industry for more than 10 years, Mr. Yuhi Mimura, our director, had been involved in all stages of animation production in his career. With his profound experience in the animation production industry, Mr. Mimura is capable of casting any genre of audio work, which allows us to adjust our operation with respect to audio production flexibly within the client’s budget. Under the leadership of our senior management members, we have identified trends in the audio production industry and seized opportunities for growth and innovation.

Innovative Vision and Operating Philosophy

Our goal and operating philosophy are to promote voice acting to the world, as an aspect of Japanese culture that is similar to animation, which is an essential component of animation and an aspect of Japanese culture. Based on this goal and operating philosophy, we are actively challenging new fields unparalleled in the closed voice acting industry — VTubers, a spin-off and an innovative application of voice acting — leading to achievements, for example, we have managed and operated a VTuber group, “Hoshimeguri Gakuen,” which, together with our affiliated VTubers’ individual YouTube channels, had approximately 470,000 subscribers on its YouTube channel as of March 31, 2024. Since VTubers are operating under virtual characters, streamers can be engaged in streaming with fewer real world constraints regarding geographic distance, gender, age, nationality, etc., as opposed to the constraints physical individuals would encounter. In addition, since we own the intellectual property rights of the VTubers’ virtual characters, we may efficiently conduct business by leveraging the intellectual property rights in designing and selling physical and virtual merchandise featuring the VTubers’ virtual characters.

Close Connections with a Large Variety of Talented Voice Actors and VTubers

As Ms. Kazusa Aranami, our chief executive officer, a well-known voice actress and VTuber with profound experience and achievement, has been leading the operations of our audio production business and VTuber management business since our inception, we have developed close connections with a large variety of talented voice actors and VTubers. As of the date of this prospectus, we have 59 collaborating voice actors and 16 affiliated VTubers. We believe close connections with a large variety of talented and experienced voice actors and VTubers would enable us to provide more efficient, flexible, and diverse as well as high-quality services to our existing clients and attract potential clients.

Strong Support from a Large Video Game-Producing Company

One of our principal shareholders, CyberStep, is a large video game-producing company. Since video game production is one of the upstream industries of our audio production business and VTuber management business, CyberStep is competent in quickly and efficiently designing and producing novel video games suitable for our collaborating voice actors and affiliated VTubers with specific teams. While we do not enter into agreements with CyberStep on a regular basis, from time to time, when CyberStep takes into account our collaborating voice actors’ or affiliated VTubers’ vocal characteristics, skills and experiences when designing characters in the video games, including the characters’ personalities, backgrounds and genders, it enters into service agreements with us for our audio production services that feature our collaborating voice actors or affiliated VTubers. For example, the video game “Onigiri,” which Cyberstep launched in 2013, features one voice actor from our Company, and the video game “CosmicBreak Universal,” which CyberStep launched in 2020, features two voice actors from our Company. This has also been a significant attraction point of our voice actor workshops.

In addition, as a large video game-producing company that has invested in and cooperated with various companies and developed strategic alliances from different industries, including retail sales, logistics, and event planning, CyberStep has granted us access to its resources and assets, such as using the studios it leases to host physical voice actor workshops and its existing sales channels to sell and deliver the merchandise featuring our collaborating voice actors and affiliated VTubers. In addition, CyberStep has been assisting us in engaging with and securing opportunities to work with its subsidiaries or strategic alliances. For instance, since CyberStep invested in TechnoBlood eSports Inc., a Japanese e-sports company (“TechnoBlood”), in December 2022, TechnoBlood and BloomZ Japan jointly worked on an e-sports program broadcasted in June 2023 on TOKYO MX, a TV channel that is available to be watched by approximately 15 million households and 37.35 million people in the Kanto area of Japan, in which BloomZ Japan was responsible for hosting for the events and casting performers.

However, since we do not enter into an agreement with CyberStep specifically granting us access to its resources and assets, assisting us in generating work opportunities or providing us with any support, we have been dependent on oral permission and non-obligatory assistance and support from the management of CyberStep, which CyberStep may cease providing at its own discretion in the future. Please see “Risk Factors — Risks Related to Risks Related to Our Business and Industry — If we are no longer able to benefit from CyberStep’s support, our business may be adversely affected.”

Our Growth Strategy

Continue to focus on maintaining and improving the quality and quantity of our audio production services

The audio production business is our core business and is the key to our continued growth and building our reputation and brand awareness. Therefore, we intend to continue to focus on maintaining and improving the quality of our audio production service. Our initiatives include further optimizing the standard of procedure for our audio production and enhancing the training of and quality control over the collaborating voice actors. We also intend to increase the quantity of our audio production services by investing in and undertaking audio production for more animation and video game productions and acquiring the intellectual property rights to audio production, voice actor casting, and digital content production.

Maintain and further develop business relationships with our existing and potential clients in the animation and video game industries

Due to the abundant business connections with the animation and video game industries, our CEO, Ms. Aranami, and our director, Mr. Mimura, have established during their long and successful careers in the field, we have developed deep cooperating relationships with many upstream entities of the animation and video game industry. Our senior management team has built solid connections with Nihon Falcom Corporation, CyberStep, ZERO-G Inc., and other well-known animation or video game-producing companies in Japan. We plan to further develop business relationships with potential clients by investing in and undertaking audio production for more animation and video game productions so as to cooperate with new clients and build our reputation and brand awareness. We also anticipate the increase in our visibility and brand recognition as a consequence of our recent listing on Nasdaq may benefit us in attracting more potential clients to place orders for our audio production service.

Continue to invest in securing talented and competent voice actors and VTubers

A large variety of talented and competent voice actors and VTubers are the root of our audio production business and VTuber management business. Therefore, we intend to continue to invest in securing talented and competent voice actors and VTubers by enhancing the training of our collaborating voice actors and affiliated VTubers, headhunting for experienced voice actors and VTubers who have already accomplished certain achievement, and holding more and larger scale auditions to discover talented newcomers.

In addition to targeting individual experienced voice actors and VTubers, we also intend to acquire currently existing VTuber groups from their operating and managing companies in Japan.

Through the preceding approaches, we aim to have VTuber groups consisting of more than 100 affiliated VTubers by 2025.

Expand into the fields of planning and producing our own animation and TV programs

It has long been our desire and goal to plan and produce our own original animated films. Having our own animation production projects will set a milestone for our growth and development, which we believe will enable us to vertically integrate our resources and enable us to form a more efficient corporate structure.

While we will continue to invest in other companies’ animation production projects, we also intend to move forward to expand into the fields of planning and producing our own animation and TV programs. Since the beginning of the fiscal year 2023, we have received a few orders, including an order to produce a 12 episodes of three-minute animation broadcasted from January 2024 to March 2024 with a total producing budget of JPY32 million, and have developed an administrating structure capable of planning and producing our own animation production, under which our CEO, Ms. Aranami, leverages her keen insight on the industry trends and her deep connections within the animation industry to conduct sales activities and our director, Ms. Mimura, who is proficient in animation production management, has established a system to manage the progress of the animation production with his profound experience in animation production and know-how.

Investment in animation production committees to acquire rights outside of comprehensive audio production

In the Japanese animation production industry, “animation production committees” are usually established as an external joint venture or partnership by several companies, including animation-producing companies, audio production companies, and other investors, to produce animation. To establish an animation production committee, the companies enter into a joint venture or partnership agreement specifying the distribution and fees for work, the date of the first broadcast, the total project cost, the ownership of intellectual property rights, the method of profit allocation, the amount of investment by each company, and their respective roles. Generally, only the companies investing in the animation production committee may obtain the right to provide their services for the project. Therefore, we usually invest in an animation production committee to acquire the right and work opportunity to provide our audio production services for the project. In addition, once the animation is sold, the animation production committee would allocate the profit to the investors pursuant to the joint venture or partnership agreement or, if not stipulated, on the basis of the investment ratio of each party.

As of the date of this prospectus, in addition to acquiring the rights to the comprehensive audio production through our investment in animation production committees, we have also acquired the rights to the comprehensive animation production, the overseas copyrights and the rights for goods merchandising.

As we believe that overseas copyrights are one of the highest sales and revenue-generating rights obtainable in the animation production business, we expect that, in addition to the rights to the comprehensive audio production, acquiring such copyrights would enhance our total revenues and consequently contribute to the growth of our business. As of the date of this prospectus, we have acquired the rights to adapt seven popular Japanese manga into animation and plan to use them as leverage to form animation production committees, subject to the condition that we will exclusively own the overseas copyrights of the seven animations produced. Among the seven animations, one has been broadcast from January 2024 to March 2024, two are scheduled for broadcast in the second half of the calendar year 2024, and the others are scheduled in the calendar year 2025, and we expect to start generating revenues from their overseas copyrights thereafter.

Our Business

Our business contains three core parts: the audio production business, the VTuber management business, and the voice actor and VTuber workshop business.

Audio Production

The audio production business has been our main business since our inception in 2017.

High-quality audio production takes an animation/video game to a different level. For video game production, we have developed a cooperating model with the video game-producing companies.

The cooperating model for video game production is illustrated as follows:

Under this cooperating model, we are responsible for comprehensive audio production for the video game, including auditioning and determining which of our collaborating voice actors to dub for the characters in the video game, while in some cases, video game-producing companies may designate specific voice actors that are not affiliated with us to dub, and organizing and arranging schedules for the voice actors to record. Generally, video game-producing companies pay a lump sum audio production fee directly to us, and we will then distribute the casting/performance fee to our collaborating voice actors pursuant to our exclusive management agreements with them or to the voice actors’ agencies for the unaffiliated voice actors.

As for the animation production, since we are responsible for providing one of the most significant and indispensable parts of animation production, we have been leveraging our audio production services to develop a cooperating model with animation-producing companies, in which we are an investor (among other investors) of the whole animation/video game production, as well as an outsourced contractor engaged by the production committee (in which we are an investor).

The cooperating model for animation production is illustrated as follows:

Under this cooperating model, we invest in and establish a production committee with the animation-producing company and other investors. Through the production committee, we are in charge of the comprehensive audio production once the animation-producing company is initially finished with the visual works of the animation. An animation usually contains 12 episodes, with one episode being recorded, edited, and produced each week. The production committee generally pays us the audio production fee weekly for each episode, although on some occasions, the audio production fee is paid after the production of the whole animation is completed. After receiving the audio production fee from the production committee, we will distribute the casting/performance fee to our collaborating voice actors pursuant to our exclusive management agreements with them or to the voice actors’ agencies for the unaffiliated voice actors. As of the date of this prospectus, in addition to acquiring the rights to comprehensive audio production through our investment in animation production committees, we have also acquired the rights to the comprehensive animation production, the overseas copyrights and the rights for goods merchandising. As we believe that overseas copyrights are one of the highest sales and revenue-generating rights obtainable in the animation production business, we expect that, in addition to the rights to the comprehensive audio production, acquiring such copyrights would enhance our total revenues and, consequently, contribute to the growth of our business. As of the date of this prospectus, we have acquired the rights to adapt seven popular Japanese manga into animations and plan to use them as leverage to form animation production committees, subject to the condition that we will exclusively own the overseas copyrights of the seven animations. Among the seven animations, one has been broadcast from January 2024 to March 2024, two are scheduled for broadcast in the second half of the calendar year 2024, and the others are scheduled in the calendar year 2025, and we expect to start generating revenues from their overseas copyrights thereafter.

The comprehensive audio production consists of dubbing, BGM producing, and mixing.

Dubbing

After reviewing the visual works of the animation/video game, we will select from our collaborating voice actors we deem the best fit, or sometimes we select unaffiliated voice actors designated by the production committee, to dub for specific characters in the animation/video game, based on their vocal characteristics, ability, experience, pay rate, and popularity among audiences, among other factors. Once the voice actors are determined, we contact the voice actors or the agents of the unaffiliated voice actors to arrange the schedules for dubbing in the recording studio provided by the production committee/video game-producing company.

BGM Producing

We often outsource to music companies that specialize in BGM production to provide the BGM for the animation/video games under production. Such companies, along with their composers and lyricists, work with the audio director of the animation/video game hired by the animation/video game-producing company to create and edit the audio effects and BGM in their own recording studio.

Mixing

In general, dubbing and BGM producing are parallel and progress simultaneously. After the dubbing and BGM production are both completed, the mixer we contract with mix the dubbed soundtrack and the BGM with the visual works of the animation/video game.

We have contributed to the production of one, zero, one and three animations, and zero, one, one and one video game in the six months ended March 31, 2024 and the fiscal years ended September 30, 2023, 2022 and 2021, respectively, under this cooperating model. The following table summarizes the information of the animations/video games we completed in the six months ended March 31, 2024 and the fiscal years ended September 30, 2023, 2022 and 2021:

Once an animation is sold, the production committee allocates the profit to us, the animation-producing company, and other investors on the basis of the investment ratio of each party. For the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, we were distributed JPY6,604 thousand, JPY1,982 thousand and JPY847 thousand, respectively.

Collaborating Voice Actors

While we enter into exclusive management agreements stipulating similar terms with each of our collaborating voice actors, we generally classify them into three levels: “Affiliated,” “Semi-Affiliated,” and “Entrusted.” Affiliated and Semi-Affiliated voice actors are those who have reached a certain level of achievement in the industry and made contributions to us, while newcomers who have just joined us are classified as Entrusted voice actors.

Generally, Affiliated voice actors have had longer careers and have higher rates of compensation than Semi-Affiliated voice actors. As of March 31, 2024, September 30, 2023 and 2022, we had 11, nine and nine Affiliated voice actors, seven, 10 and 10 Semi-Affiliated voice actors and 30, 33 and 24 Entrusted voice actors, respectively.

The material terms stipulated in our exclusive management agreements are as follows:

Scope of the Exclusive Management Agreement

The following entertainment activities performed and conducted by our collaborating voice actor as a voice actor are subject to the exclusive management agreement, which the voice actor’s exclusive rights belong to us worldwide:

Obligations and Rights

We are the manager of our collaborating voice actor for worldwide entertainment activities, and the collaborating voice actors are our exclusive voice actors and perform pursuant to our instructions.

Intellectual Property Rights

All intellectual property rights, including, but not limited to, copyrights, trademarks, design rights, and ownership rights arising from the collaborating voice actor’s entertainment activities during the effective term of the exclusive management agreements, belong exclusively to us worldwide, including Japan. We may use and dispose of them at our own discretion.

Right to Receive Performance Fees

We have the right to receive the performance fee of the collaborating voice actor’s entertainment activities from third parties on his/her behalf. We are entitled to 20% of the performance fee as compensation for our management services.

Term

During the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, the exclusive management agreements entered were generally for a period of one year. The exclusive management agreement is automatically extended for one year if neither we nor the collaborating voice actor delivers notice of termination at least one month prior to the expiration date of the exclusive management agreement.

Termination

We may immediately terminate the exclusive management agreement if the collaborating voice actor:

Both we and the collaborating voice actor may immediately terminate the exclusive management agreement if either of us violates the representations and warranties that either party is not or will not be affiliated with any organized crime group or any other antisocial force.

Clients and Marketing

While our clients are mainly animation and video game-producing companies in Japan, we sometimes receive orders from foreign movie companies for Japanese dubbing services. We recruit new clients via existing client referrals, personal networking, online advertisements, promotions, and digital marketing. Since we are relatively new to the audio production industry, our marketing strategy has been, as of the date of this prospectus, to work on as many projects as we can within our capacity, regardless of the scale of the projects, as we strive to build our reputation and brand awareness. For the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, we had 33, 59 and 56 clients, respectively.

During the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, approximately 40%, 90% and 90% of the orders we received came from our existing clients, respectively. We believe that such high reorder rate demonstrates the quality and client satisfaction of the comprehensive audio production services we provide.

Set out below is a breakdown of the revenue generated from our audio production business contributed by our top five clients during the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022:

For the Six Months Ended March 31, 2024

For the Fiscal Year Ended September 30, 2023

For the Fiscal Year Ended September 30, 2022

Material terms of our service agreements with the top five clients are as follows:

Scope of Services

We generally enter into written service agreements with clients that set out the scope of services as follows:

Individual Contract

We generally enter into a written individual contract for a specific project; either an animation or a video game, with clients to stipulate the contents and details of the service, the delivery date, the amount of consideration, the payment schedule, and other necessary matters.

Term

During the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, the service agreements entered were generally for a period of one year. The service agreements are generally automatically extended for one year if neither we nor the client make a written request to change or terminate the agreement at least one month prior to the expiration date of the agreement.

Termination

The service agreements generally grant both us and the clients the right to terminate the service agreement or individual contracts by providing the other party one-month prior written notice.

If an individual contract terminates in the middle of the term, due to termination or other reasons, the clients are required to pay us the consideration in proportion to the ratio of the performance of our services.

VTuber Management

We commenced our VTuber management business in December 2021. The term “VTuber” is an abbreviation of virtual YouTuber, which is a virtual (animated) character, in lieu of a physical individual, we create by utilizing motion-capture technology for our streamers to provide their voices, in order to stream real-time videos featuring human facial expressions and gestures, which can also communicate and interact with audiences through the chat function by embedding in live-streaming platforms.

“Hoshimeguri Gakuen” is a VTuber group we have managed and operated since its debut in December 2021. As of the date of this prospectus, we have 16 affiliated VTubers in the group. Focusing on real-time live streaming, our affiliated VTubers mainly broadcast chatting, singing, and game live streaming on YouTube, FANBOX, and BOOTH. Besides interactive real-time live streaming, we also strive to build and grow our fan bases through sales of goods and digital merchandise featuring the virtual characters of our affiliated VTubers on FANBOX, and BOOTH. As of March 31, 2024, Hoshimeguri Gakuen, together with our affiliated VTubers’ individual YouTube channels, had approximately 470,000 subscribers on its YouTube channel. In addition, our affiliated VTubers participate and perform in online live streaming events held by other companies, such as VirtualThruLens.

Our revenue generated from YouTube mainly contains three parts: Google AdSense revenue, membership, and Super Chats/Stickers/Thanks. Google AdSense revenue is the revenue that we can receive from Google LLC by having ads displayed on our affiliated VTubers’ live streaming videos on YouTube, by which we receive a rate ranging from JPY200 to JPY600 per 1,000 viewers based on ad impressions recognized by Google. YouTube Membership is a service provided by YouTube that allows a subscriber to register as a member of our YouTube Channel and gain membership privileges, such as access to exclusive videos and other exclusive items to the channel, by paying a monthly fee. Super Chats and Super Stickers are services provided by YouTube that allow audiences to interact with our affiliated VTubers during their real-time live streaming. Audiences can purchase Super Chats to highlight their message and thus increase the chance of getting our affiliated VTuber’s attention within the live chat box. Audiences can also purchase Super Stickers to see a digital or animated image that pops up in the live chat feed. Audiences may also directly tip our affiliated VTubers via Super Thanks, which is a service provided by YouTube, formerly known as Viewer applause, to show extra gratitude for our affiliated VTubers’ live streaming videos. Among the revenue sources generated from YouTube during the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, 4.8%, 7.8% and 3.0% was from Google AdSense revenue, 42.9%, 23.9% and 15.6% was from memberships, and 52.2%, 68.3% and 81.5% was from Super Chats/Stickers/Thanks, respectively. 

Our revenue generated from BOOTH and FANBOX mainly consists of the sales of the merchandise featuring our affiliated VTubers’ virtual characters. Among all the merchandise we sold, including acrylic figures, illustrations, and stickers during the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, the recorded voice data of our affiliated VTubers’ virtual characters were the most popular genre.

Our revenue generated from online live streaming events, such as VirtualThruLens, mainly consists of the performing fees of our affiliated VTubers distributed by the host companies of the events. For the fiscal year ended September 30, 2023, we received JPY1,469 thousand from the host company of VirtualThruLens, Avex Entertainment Inc.

For the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, the revenue generated from the VTuber management business was JPY59,083 thousand, JPY57,442 thousand and JPY18,630 thousand, which accounted for approximately 48.3%, 44.8% and 12.8% of our total revenue for those periods, respectively. Among the sources of revenue generated from the VTuber management business during the six months ended March 31, 2024, 24.6%, 51.0%, 1.4%, and 23.0% came from YouTube, BOOTH, FANBOX, and others, respectively. During the fiscal year ended September 30, 2023, 29.0%, 42.5%, 2.1%, and 26.3% came from YouTube, BOOTH, FANBOX, and others, respectively. During the fiscal year ended September 30, 2022, 54.0%, 26.4%, 6.6%, and 13.0% came from YouTube, BOOTH, FANBOX, and others, respectively.

Affiliated VTubers

As of the date of this prospectus, we have entered into exclusive management agreements with 16 affiliated VTubers. Pursuant to the exclusive management agreements, we provide comprehensive support to our affiliated VTubers, such as assisting in their streaming on YouTube and other individual activities, helping them create video programs as a member of Hoshimeguri Gakuen, and providing equipment intended for streaming and streaming studios leased by CyberStep available to them. In return, most of the revenue generated by our affiliated VTubers from third parties is allocated to the affiliated VTuber and us on a 50% to 50% basis.

The material terms stipulated in our exclusive management agreements are as follows:

Scope of the Exclusive Management Agreement

The following VTuber activities performed and conducted by our affiliated VTuber as a VTuber are subject to the exclusive management agreement, which the VTuber’s exclusive rights belong to us worldwide:

Obligations and Rights

We are the manager of our affiliated VTubers for VTuber activities, and the affiliated VTubers are our exclusive VTubers and perform pursuant to our instructions.

Intellectual Property Rights

All the accounts and the auxiliary rights of the social media, streaming platforms, and others necessary for us to perform the management services exclusively belong to us without any limitation as to region, period, or scope.

All intellectual property rights, including, but not limited to, copyrights, trademarks, design rights, and ownership rights arising from the affiliated VTuber’s VTuber activities, exclusively belong to us without any limitation as to region, term, or scope. We may use and dispose of them at our own discretion, provided that we obtain consent from the affiliated VTuber before using the intellectual property rights for any purpose other than VTuber activities and related advertising, promoting, and merchandise producing.

Right to Receive Performance Fees

We have the right to receive the revenue generated from the affiliated VTuber’s VTuber activities from third parties on his/her behalf. We are entitled to 50% of the revenue generated from YouTube and the sales of virtual merchandise that involves the affiliated VTuber’s performance, such as recorded voices data; 90% of the revenue generated from the sales of physical merchandise, such as acrylic figures and stickers, and virtual merchandise that does not involve the affiliated VTuber’s performance, such as illustrations, as compensation for our management services.

Term

During the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, the exclusive management agreements entered were generally for a period of one year. The exclusive management agreement is automatically extended for one year if neither we nor the affiliated VTuber delivers notice of termination at least three months prior to the expiration date of the exclusive management agreement.

Termination

Both we and the collaborating voice actor may immediately terminate the exclusive management agreement if either of us violates the representations and warranties that either party is not or will not be affiliated with any organized crime group or any other antisocial force.

One of our most famous affiliated VTuber’s virtual characters — Kuramochi Kyoko

One of our most famous affiliated VTuber’s virtual characters — Mochimochi Sakura

Our Suppliers

Before the debut of a new VTuber, we generally design the VTuber’s character settings, including its appearance and characteristics that we consider appropriate after discussing with the VTuber. We then engage with animation developers with respect to the production and output of our designed 2D or 3D virtual characters consistent with our character settings.

We do not enter into long-term production contracts with specific animation developers. Instead, we place fixed-term orders with the animation developers for the production of virtual characters. Without being bound by long-term producing contracts, we have greater flexibility to choose from several animation developers to satisfy the specifications of our demands on the basis of the factors that benefit us the most at the time we place the order, including the quality and the price of their service, the quality and efficiency of the services they provide, and the payment terms they accept.

Marketing

Targeting building and growing our fan bases, we focus on improving the content of our affiliated VTubers’ live streaming videos. We provide various types of support to our affiliated VTubers to improve the content of their live streaming videos, such as providing training in line with the guidelines to ensure the soundness of content, updating them with information about the latest popular trends, assisting them in deciding the songs to sing and the games be live-streamed, and providing suggestions for their direction in organizing and planning their live streaming videos.

We expect to further develop and maintain strong relationships between our affiliated VTubers and their fans by supporting them in increasing their public recognition, building their reputation and awareness, and gaining more fans. To this end, we are continuously planning events, activities, and TV shows that our affiliated VTubers will present, which we believe may further foster the ties between our affiliated VTubers and their fans.

Voice Actor Workshops

We have provided professional and practical training in voice acting through our voice actor workshops since our inception in 2017. In cooperation with active professional voice actors, we regularly host physical voice actor workshops four times a month in the studios leased by CyberStep in Tokyo, which CyberStep permits such use at no charge. We have determined that it is more advantageous to operate physical voice actor workshops rather than online-workshop, because it allows us to exercise greater control over the quality of our training services and overall training environment.

To cultivate young voice actors and their abilities to work as professionals, we provide our members basic vocalization-related lessons and combine actual animation and video game scripts into the training sections to equip them with practical skills and mannerisms in dubbing and audio production, which enables us to differentiate our lessons from similar services in Japan provided by competitors.

Since our inception, we have built a large base of members, which has been essential for our rapid growth. As of March 31, 2024, we had 70 registered members who had participated in our workshops since the inception of our voice actor workshop business.

We generally charge every registered member a membership fee of JPY22 thousand monthly for four lessons in one month. Membership fees from the registered members provide the primary income of our voice actor workshop business, and they amounted to approximately JPY2,040 thousand, JPY5,054 thousand and JPY5,805 thousand during the six months ended March 31, 2024 and the fiscal years ended September 30, 2023 and 2022, which accounted for approximately 1.7%, 3.9% and 4.0% of our total revenue for those periods, respectively.

Our Lessons

All of our lessons are directly instructed and lectured by our cooperating active professional voice actors who have extensive experience in dubbing for animations, foreign movies, or video games, such as Azusa Enoki, a renowned Japanese voice actress, actress, and singer who dubbed for Nagisa Saito in “Squid Girl,” Uta Yumeno in “Onegai My Melody” series, Angelene in “A Certain Magical Index II,” and Mion Takamine in “Pretty Rhythm.”

Instructors are responsible for instructing and teaching a large variety of skills within the scope of voice acting, including basic vocalization, pronunciation and intonation, practical techniques while reading out actual animation and video game scripts, nuances between acting on stage and as a voice actor, useful mannerisms for recording situations, and various domestic and international methods for opening up the emotions in a play. During our lessons, members may also experience voice acting in actual recording studios leased by CyberStep.

Our Members

We do not adopt strict conditions for applications to our voice actor workshop and generally accept every applicant, regardless of whether they want to become professional voice actors or are purely interested in voice acting.

Members who perform well and show their talent in the workshop are allowed to participate in the newcomer auditions we hold at the end of each fiscal year, in which we evaluate participants’ characteristics, interest in voice acting, expression ability, and potential performing competency from a comprehensive perspective. Once the participants pass the newcomer audition, they are given the opportunity to enter into exclusive management agreements with us and commence operation as our collaborating voice actors or affiliated VTubers, or both.

In our efforts to appeal to more applicants to join our voice actor workshop, we emphasize improving our lessons in a way that incorporates diverse and practical content. In addition, we have implemented a policy that offers outstanding members the opportunity to present in small audio production projects we operate for casting and dubbing, which has been recognized by our members as one of the most appealing factors to join our voice actor workshop.

Competition

The audio production and VTuber management industries in Japan are both highly competitive and fragmented, with many new companies joining the competition in recent years and a few leading companies, such as Magic Capsule Co., Ltd. and Techno Sound Co., Ltd., in terms of audio production, and COVER Corp. (TSE: 5253; OTCMKTS: COVCF) and ANYCOLOR Inc (TSE: 5032), in terms of VTuber management. As a relatively new and small-scale company in both industries, we face competition directly from the large-scale companies with more resources and those with a more extended operating histories and more connections to the industries they work within. In addition, we indirectly compete with other large video streaming platforms, social media platforms, and other platforms offering online entertainment with respect to our VTuber management business.

We believe that our ability to compete effectively depends upon many factors, including the high quality of our audio production services, the diverse and innovative content of our real-time live streaming, our close connections with a large variety of talented voice actors and VTubers, our capability to adjust flexibly to satisfy clients’ needs and demands, and the strength of our brand. In addition to the factors listed above, we believe that we are well-positioned to effectively compete in the audio production and VTuber management industries based on the fact that we are able to integrate our resources in our audio production business and VTuber management business and leverage the strengths of both industries and maximize synergies to support both. Some competitors, however, may have longer operating histories, greater brand recognition, or greater financial, technical, or marketing resources than we do. For a discussion of risks relating to competition. See “Risk Factors — Risks Related to Our Business and Industry — We operate in highly competitive markets and our failure to compete effectively could adversely affect our results of operations.”

Employees

We had eight, six, four, and three full-time employees as of March 31, 2024 and September 30, 2023, 2022, and 2021, respectively. The following table sets forth the number of our full-time employees categorized by areas of operations as of March 31, 2024:

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 eight, two, four, and three outsourced employees as of March 31, 2024 and September 30, 2023, 2022, and 2021, respectively. Besides assisting our full-time employees, these outsourced employees are also responsible for general administration, finance and accounting, project management, legal affairs, and the operations of VTuber management and voice actor workshops.

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

Insurance

Other than the government-mandated social and health insurance and worker’s accident compensation insurance, we do not maintain any other insurance covering our directors’ and officers’ liability, properties, equipment, or employees. We neither carry any business interruption insurance, accident insurance covering our members in respect of personal injuries or damages arising from accidents that occur during the voice actor workshops, nor any other third-party liability insurance to cover claims in respect of personal injuries or any damages arising from accidents on our properties or in relation to our operations. We believe that our insurance coverage is in line with industry practice.

Property and Equipment

We lease our headquarters location in Akasaka, Tokyo, and a work office located in Harumi, Tokyo. A summary of our leased properties as of the date of this prospectus is shown below:

We lease these premises from independent third parties under operating lease agreements. The lease agreement of our office located in Harumi is renewable from one year to six months before the lease expires.

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

Intellectual Property

We regard our company logo, domain names, copyrights, and other similar intellectual property, especially with respect to our collaborating voice actors and affiliated VTubers’ virtual characters, and use of rights of publicity of our collaborating voice actors as critical to our success. “Rights of publicity” are the licensable rights to control the commercial use and make use of the commercial value of individual’s names and portraits, etc. that are recognized through judicial precedents of the Japanese courts, which refers to the Japanese Constitution and the Japanese Civil Code. We rely on a combination of laws in Japan such as Civil Code, Copyright Law and trademark Act, judicial precedents of the Japanese courts, and confidentiality agreements with employees to protect our intellectual property rights. We also regularly monitor any infringement or misappropriation of our intellectual property rights.

Pursuant to the exclusive management agreements with our collaborating voice actors and affiliated VTubers, we own all intellectual property rights, including, but not limited to, copyrights, trademarks, design rights, and rights arising from the collaborating voice actor’s entertainment activities/affiliated VTubers’ VTuber activities, and use of rights of publicity of our collaborating voice actors.

As of the date of this prospectus, we have use of rights of publicity of our collaborating voice actors in the following animations/video games/foreign dramas:

As of the date of this prospectus, we have copyrights and other intellectual property rights, and the ownership of the social media accounts of the following affiliated VTubers’ virtual characters:

No.		Name		Original Name		Publication Date		Expiration Date		Image
1		Kyoko Kuwamochi		倉持京子		September 11, 2020		September 10, 2090
2		Oguri Mel		オグリ・メル		September 12, 2020		September 11, 2090
3		Mikado		帝		October 2, 2020		October 1, 2090
4		Kamino Hikari		神乃ひかり		November 21, 2020		November 20, 2090
5		Mochimochi Sakura		餅々さくら		February 28, 2021		February 27, 2091
6		Iori Nemea		伊織ねめあ		May 1, 2021		April 30, 2091

No.		Name		Original Name		Publication Date		Expiration Date		Image
7		Makura Rui		魔昏るい		May 15, 2022		May 14, 2092
8		Teru Umashika		馬鹿蝶		May 26, 2022		May 25, 2092
9		Aoi Heru		碧衣ヘルオグリ・メル		May 27, 2022		May 26, 2092
10		Kachiki Shakuna		勝気シャクナ		June 29, 2022		June 28, 2092
11		Michisaki Mirine		満咲ミリネ		October 22, 2022		October 21, 2092

No.		Name		Original Name		Publication Date		Expiration Date		Image
12		Hakuchoge Mahoro		六月雪まほろ		October 23, 2022		October 22, 2092
13		Kaneko Kirari		金猫きらり		October 24, 2022		October 23, 2092
14		Kirikuma Yuni		切熊ゆに		December 18, 2022		December 17, 2092
15		Somei Kairi		爽明カイリ		August 13, 2023		August 12, 2093
16		Domeki Eru		百目鬼える		August 14, 2023		August 13, 2093

In addition, as of the date of this prospectus, we have registered one domain name and 79 social media accounts in Japan relating to our business.

Seasonality

In the audio production business, although the broadcast schedule of the video game productions is affected by the seasons, Japanese animation productions, in which we are mainly involved in the audio production component, are produced throughout the year. In addition, the activities of the animation production committee, which is made up of the animation-producing company and other investors, including our Company, do not fluctuate with the seasons, and profits and distributions from the activities of the companies that own the copyrights may be generated at any time of the year.

In the VTuber management business, although the choice of content to be viewed is largely determined by the interests and preferences of individual users, the number of times video content is viewed can be expected to increase during the summer, year-end and New Year holidays, when audiences have more leisure time than in any other time of the year. In addition, events are held during each of these seasons, which have an impact on sales.

The voice actor workshop business is highly specialized and aims to improve skills over a long period of time. Therefore, there is no seasonality in the number of participants throughout the year. However, marketing efforts to attract customers tend to be more effective in April, when Japan’s new fiscal year begins.

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. As of the date of this prospectus, we are 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, is likely to have any material and adverse effect on our business, financial condition, cash flow, or results of operations.

REGULATIONS

The main Japanese laws that regulate the services provided by the Company include the Act against Unjustifiable Premiums and Misleading Representations, the Act on Specified Commercial Transactions, the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors, the Copyright Act, labor-related laws, and the Act on the Protection of Personal Information.

Act against Unjustifiable Premiums and Misleading Representations

Our business involving the sale of digital contents for consumers is subject to the Act against Unjustifiable Premiums and Misleading Representations (Act No. 134 of May 15, 1962, as amended). Under this law, we are prohibited from making representations to the general consumers that the contents of the products are significantly better than they actually are, and representations to the general consumers that the contents of our products are significantly better than those pertaining to our competitors if not true.

In addition, this law establishes regulations regarding the provision of premiums by business operators, such as a limit on the maximum amount of premiums to prevent the provision of excessive premiums.

Business operators that violate this law may be ordered by the supervisory authority to take certain actions or receive administrative guidance.

In addition, if a business operator commits an act of misrepresentation, it may be ordered to pay a surcharge.

Act on Specified Commercial Transactions

Our business involving the internet sale of digital contents for consumers is subject to the Act on Specified Commercial Transactions (Act No. 57 of June 4, 1976, as amended). Under this law, Internet sellers are obligated to indicate in their advertisements the consideration for services provided via the Internet, the time and method of payment of the consideration, etc., and are prohibited from attempting to induce customers to apply for sales contracts and service contracts related to mail order sales against their will.

Under the June 2022 amendment, Internet sellers are obliged to indicate on the final confirmation screen of the Internet ordering system the consideration for the services, the time and method of payment of the consideration, and other matters so that the customer can easily confirm the final confirmation at the stage immediately before the order is confirmed.

Business operators violating the regulations of this law may be subject to administrative penalties, such as orders to improve operations, orders to suspend operations, or orders to prohibit the operations of officers, and may also be subject to penalties.

Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors

Our business involving outsourcing content production may be subject to the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Act No. 120 of June 1, 1956, as amended). Under this law, we may be obligated to deliver order forms to subcontractors and set deadlines for payment of subcontract proceeds. In addition, after we have subcontracted work to a subcontractor, we may be prohibited from having the subcontractor pick up items related to the work, etc., unless the subcontractor is responsible for the subcontractor’s actions.

Business operators violating the regulations of this law may be subject to recommendations, publication, etc., by the regulatory authorities, and may also be subject to penalties.

Intellectual Property Laws and Regulations

Japan has a number of laws and regulations concerning intellectual property rights, including the Patent Act (Act No. 121 of 1959, as amended), the Utility Model Act (Act No. 123 of 1959, as amended), the Design Act (Act No. 125 of 1959, as amended), and the Copyright Act (Act No. 48 of 1970, as amended).

The Patent Act protects rights to inventions, the Utility Model Act protects rights to inventions such as the shape of an article, the Design Act protects rights to the design of an article, and the Copyright Act protects rights pertaining to spiritual and creative activities, such as literature, art, music, and programs, as well as the rights of performers.

Our business may be subject to various restrictions on the use of various rights under these laws and regulations.

In particular, since we sell our content, the appropriateness of copyrights may become an issue, and where we infringe on the copyrights of third parties, we may be subject to claims for injunction or damages.

Labor Laws

Japan has a variety of labor-related laws, including the Labor Standards Act (Act No. 49 of April 7, 1947, as amended), the Industrial Safety and Health Act (Act No. 57 of June 8, 1972, as amended), and the Labor Contracts Act (Act No. 128 of December 5, 2007, as amended). The Labor Standards Act stipulates minimum standards for working hours, holidays, overtime pay, and other working conditions. The Industrial Safety and Health Act requires, among other things, the implementation of measures to ensure employee safety and protect workers’ health in the workplace. The Labor Contracts Act establishes regulations regarding employment contracts, changes to work rules, dismissals, and disciplinary actions.

In particular, in Japan, the Labor Contract Law restricts the dismissal of employees, and it is necessary to properly manage and supervise employees.

In addition, the “Act on Comprehensive Promotion of Labor Measures and Stabilization of Employment and Improvement of Working Lives of Workers” (abbreviated as “Act on Comprehensive Promotion of Labor Measures”) was enacted on June 1, 2020, imposing on businesses the obligation to ensure a safe work environment.

Personal Information Protection Act

The Personal Information Protection Act of Japan (Act No. 57 of 2003, as amended) and related guidelines impose various regulations on businesses that use personal information and its databases, regarding the appropriate acquisition of such information, secure management, prohibition of use for other purposes, restrictions on information sharing with third parties, and appropriate subsequent measures in the event of information leakage.

The April 2022 amendment imposes a clear-cut obligation on businesses to prohibit the inappropriate use of personal information. The rules regarding the protection of personal information are changed, such that even non-personal information, such as website browsing history and personal location information associated with an individual, is subject to the Personal Information Protection Law in certain cases where consideration of personal privacy is required.

Business operators violating the regulations of this law may be subject to recommendations, etc., by the regulatory authorities and may also be subject to penalties.

Conclusion

We operate our services in compliance with these regulations.

Although we will continue to strengthen our legal compliance system and conduct internal training, the enactment or revision of new laws and regulations, and where the services operated by us become subject to new laws and regulations, it may affect our business, performance, and financial position.

MANAGEMENT

Set forth below is information concerning our directors and executive officers.

The following individuals are our executive management and members of the board of directors.

The following is a brief biography of each of our executive officers and directors:

Ms. Kazusa Aranami is our founder and has served as our director, chief executive officer, and chairperson since our inception in April 2023 and as BloomZ Japan’s representative director and chief executive officer since its inception in October 2017. Prior to founding BloomZ Japan and our Company, Ms. Aranami worked as a voice actress and actress at four different voice actor management companies — JTB Entertainment, Kitty Production, Apt Pro Inc, and Quatrestella Co., Ltd., between April 2008 and December 2011, May 2013 and March 2015, April 2015 and July 2015, and August 2015 and September 2017, respectively. Ms. Aranami also worked as a freelance voice actress and actress between January 2012 and April 2013. Ms. Aranami received her vocational degree in Voice Acting from Yoyogi Animation Academy in 2007.

Mr. Yuhi Mimura has served as our director since our inception in April 2023 and as BloomZ Japan’s director since its inception in October 2017. Prior to joining BloomZ Japan and our Company, Mr. Mimura worked as a staff member responsible for animation production progress at Asahi Production Inc., an animation-producing company, from December 2007 to October 2011, a manager at I Link Co., Ltd., a voice actor management company, from November 2011 to February 2014, a manager at Aksent. Co. Ltd., a voice actor management company, from March 2014 to September 2015, and a manager and a staff member responsible for audio production progress at Quatrestella Co., Ltd., a voice actor management company, from October 2015 to September 2017. Mr. Mimura received his vocational degree in Color Studies from Yoyogi Animation Academy in 2007.

Mr. Minoru Muranaga has served as our chief financial officer since August 2024 and as BloomZ Japan’s accounting manager since July 2023. Prior to joining the Company and BloomZ Japan, Mr. Muranaga worked as a manager at FORUM8 Co., Ltd., a Japanese software developer and supplier, between June 2018 and November 2022. Mr. Muranaga received his bachelor’s degree in Social Science from Waseda University in 1992 and has a certificate as a Japanese Certified Public Accountant.

Mr. Akira Sugimoto has served as our independent director since July 2024. Mr. Sugimoto is the founder and representative director of ActKnowledge Co., Ltd., a Japanese company that provides management consulting services. Prior to founding ActKnowledge Co., Ltd. in April 2023, Mr. Sugimoto worked for Mitsubishi UFJ Financial Group, Inc. (NYSE: MUFG), a Japanese bank holding and financial services company, for more than 20 years, including working as an inspector in different departments and subsidiaries and a chief consultant at Mitsubishi UFJ Research & Consulting Co., Ltd., Mitsubishi UFJ Financial Group, Inc.’s second tier subsidiary, and served as a director at Plan and D Co., Ltd., a Japanese consulting company, between January 2014 and March 2023. Mr. Sugimoto received his bachelor’s degree in Law from the University of Tokyo in 1989.

Mr. Toshiyuki Sugiyama has served as our independent director since October 2024. Mr. Sugiyama founded and has served as the representative director and the chief executive officer of CD One Limited Liability Company, a Japanese company that provides consulting services, since October 2012, founded and has served as a representative and the chief financial officer of Machete Inc., a Japanese apparel manufacturer, since June 2014, and founded and has served as a director and the chief operating officer of Chamber Management Co., Ltd., a Japanese company that provides management and marketing consulting services, since March 2021. Mr. Sugiyama received his bachelor’s degree in Business Management from Meiji University in 1990.

Pursuant to our articles of association, unless otherwise determined by our Company in a general meeting, we are required to have a minimum of two directors and the exact number of directors will be determined from time to time by our board of directors.

Under our articles of association, a director may be appointed by ordinary resolution 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.

For additional information, see “Description of Share Capital — Directors.”

Family Relationships

None of our directors or executive officers has a family relationship as defined in Item 401 of Regulation S-K.

Board of Directors

Our board of directors currently consists of three directors, including one 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, all of our directors owe three types of duties to us: (i) statutory duties, (ii) fiduciary duties, and (iii) common law duties. The Cayman Companies Act imposes a number of statutory duties on a director. Under Cayman Islands law, the fiduciary duties owed by a director to our Company include (a) a duty to act in good faith in what the director considers are in the best interests of the company, (b) a duty to exercise their powers in the company’s interests and only for the purposes for which they were given, (c) a duty to avoid improperly fettering the exercise of the director’s future discretion, (d) a duty to avoid any conflict of interest (whether actual or potential) between the director’s duty to the company and the director’s personal interests or a duty owed to a third party, and (e) a duty to exercise independent judgment. The common law duties owed by a director are those to exercise appropriate skill and care. The relevant threshold measure for such standard is that of a reasonable diligent person having both the general knowledge, skill, and experience that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company, and the general knowledge, skill, and experience that that director has. In fulfilling their duty to us, our directors must ensure compliance with our memorandum and articles of association, as amended and restated from time to time, and our shareholder resolutions. We have the right to seek damages where certain duties owed by any of our directors are breached.

The functions and powers of our board of directors include, among others:

Terms of Directors and Executive Officers

Under our articles of association, a director may be appointed by ordinary resolution 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.

Employment Agreements and Indemnification Agreements

We have entered into employment agreements with each of our executive officers. Pursuant to employment agreements, the form of which is filed as Exhibit 10.1 to the registration statement of which this prospectus is a part, we agree to employ each of our executive officers for a specified time period, which may be renewed upon both parties’ agreement 30 days before the end of the current employment term. We may terminate the employment for cause, at any time, without notice or remuneration, for certain acts of the executive officer, including the commitments of any serious or persistent breach or non-observance of the terms and conditions of the employment, conviction of a criminal offense, willful disobedience of a lawful and reasonable order, fraud or dishonesty, receipt of bribery, or severe neglect of his or her duties. An executive officer may terminate his or her employment at any time with a one-month prior written notice. Each executive officer agrees to hold, both during and after the employment agreement expires, in strict confidence and not to use or disclose to any person, corporation or other entity without written consent, any confidential information.

We have also entered into indemnification agreements with each of our directors and executive officers. Under these agreements, we agree to indemnify our directors and executive officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being a director or officer of our Company.

Compensation of Directors and Executive Officers

For the fiscal year ended September 30, 2023, we paid an aggregate of JPY15,577 thousand ($104 thousand) as compensation to our executive officers and directors. None of our non-employee directors have any service contracts with us that provide for benefits upon termination of employment. We have not set aside or accrued any amount to provide pension, retirement, or other similar benefits to our directors and executive officers.

Committees of the Board of Directors

Audit Committee

We have established an audit committee, which consists of three directors, including Kazusa Aranami, Toshiyuki Sugiyama, and Akira Sugimoto. We have determined that Akira Sugimoto and Toshiyuki Sugiyama satisfy the “independence” requirements of Section 5605(a)(2) of the Nasdaq Listing Rules and Rule 10A-3 under the Exchange Act. Therefore, Kazusa Aranami will be replaced with an independent director within one year of our listing on the Nasdaq Capital Market, so that after one year of the listing, the audit committee will consist solely of independent directors. We have also determined that Akira Sugimoto qualifies as an audit committee financial expert under the SEC rules and as a financially sophisticated audit committee member under the Nasdaq listing rules. Akira Sugimoto is the chair of the audit committee. Our audit committee has adopted a written charter (the “Charter”), which requires that each member of the Audit Committee are 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 requires 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 provides 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 provides that the Audit Committee has the following authority and responsibilities, among others:

Compensation Committee

Because we are a “foreign private issuer” within the meaning of the corporate governance standards of Nasdaq, we are not 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 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:

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 are a “foreign private issuer” within the meaning of the corporate governance standards of Nasdaq, we are not 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 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 meeting.

Code of Business Conduct and Ethics

Because we are a “foreign private issuer” within the meaning of the corporate governance standards of Nasdaq, we are not required, and do not currently expect, to adopt one or more codes of conduct applicable to all directors, officers, and employees. If and when we are no longer a “foreign private issuer,” we will be required to adopt one or more codes of conduct applicable to all directors, officers, and employees, and that such codes are publicly available. We anticipate that such a code would apply to our directors, officers, employees (including our principal executive officer, principal financial officer, and other persons performing similar functions), and our agents and would be publicly available on our website.

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 for:

Beneficial ownership includes voting or investment power with respect to the securities. 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 is based on 13,429,800 Ordinary Shares outstanding as of the date of this prospectus.

Information with respect to beneficial ownership has been furnished by each director, 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 any 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.