Temairazu, Inc.

If domestic travelers or inbound visitors to Japan decline due to unforeseen events such as natural disasters, infectious disease outbreaks, or international conflicts, revenue at accommodation facilities and booking sites would deteriorate, directly affecting the performance of the core 'TEMAIRAZU' series of services. While the travel industry as a whole has been thriving in recent years due to expanding inbound demand, this also carries the risk of a reactionary downturn. No specific countermeasures have been disclosed by the Company.

Multiple competitors exist in the accommodation booking site controller market, and the number of facilities using the Company's services could be affected by the entry of overseas site controllers into Japan or entrants from other industries. In the comparison site 'Hikaku.com' as well, barriers to entry are low, and an increase in new entrants is expected, raising concerns about declining profitability and increased advertising expenses due to intensifying competition. The Company has indicated a policy of responding through service improvement and brand strengthening.

The Company's business depends on communication networks, and servers could become inoperable due to natural disasters, surges in access, or unauthorized external intrusion, making it difficult to provide services. In addition, if user traffic growth exceeds expectations or if strengthened security measures become necessary, unexpected additional investment or increased costs could arise, materially affecting business performance. As countermeasures, the Company has implemented server and network redundancy, regular vulnerability assessments, continuous monitoring, data backups, and dual power supply systems.

The Company acquires and holds users' personal information through its web services, and if information leakage or misuse occurs, it could lead to a decline in reputation, a decrease in service users, and claims for damages, affecting business performance. The Company has formulated and operates a privacy policy based on the Act on the Protection of Personal Information, and implements SSL encrypted communication, internal access rights management, and internal education, but it explicitly states that leakage risk cannot be completely eliminated.

Sales in the core application business are managed through the Company's proprietary system, 'Temairazu System,' but because some information registration is performed manually, there is a risk that human error in data entry could compromise data accuracy and system reliability, resulting in improper revenue recognition. As a countermeasure, the Company thoroughly double-checks important information, but the persistence of manual processes remains a structural issue.

As of June 30, 2025, the Company is a small organization with 6 directors and 41 employees, and if securing personnel or enhancing internal management systems does not proceed smoothly, or if existing personnel leave the Company, business operations could be materially affected. The Company is advancing internal education and business process manualization in preparation for temporary mass absences or situations that hinder work, but the small organizational scale constrains the ability to secure substitute personnel.

Amid criticism that internet-related laws remain underdeveloped, the enactment of new regulatory legislation could constrain the Company's business development. In the accommodation industry, revisions and strengthening of the 'Hotel Business Act' and compliance with the 'Private Lodging Business Act' are necessary, and the Company has adopted a policy of cautious business development particularly with respect to the private lodging business, given its strict regulations. The content and timing of stricter regulation remain unclear, potentially leading to increased compliance costs or loss of business opportunities.

While centering on the 'TEMAIRAZU' series and 'Hikaku.com,' the Company is also considering the development of new services, but new businesses may take time to generate stable revenue, potentially leading to a decline in profit margins. There are many uncertainties regarding the profitability of new businesses, and if expected revenue is not achieved, business performance could be affected. Specific details of new businesses or the scale of investment have not been disclosed.

If technological innovation occurs with respect to reservation systems, the accommodation booking site controller market itself could be affected. In addition, if an innovative service emerges that supersedes the internet as a higher-generation platform, there is a risk that the foundations of both of the Company's business segments (the application service business and the internet media business) could be shaken. No specific technological countermeasures have been disclosed by the Company.

The Company has acquired or applied for trademark rights for 'Hikaku.com,' 'TEMAIRAZU,' 'Temairazu.NET,' and other marks, but has not obtained patent rights for its business model or technology at this time. If the Company receives claims for damages or injunctions from third parties alleging intellectual property infringement, its business continuity and performance could be affected. Additionally, if copyright infringement is found in the information content provided by the Company, this could also lead to claims for damages and a decline in credibility and brand strength.