Schoo,inc.

The core service "Schoo for Business" operates on a subscription model, and the continuation of contracts by existing customers is fundamental to sustained growth. If cancellations occur beyond expectations due to a decline in service appeal or dissatisfaction with additional features and support, this could have a material impact on business operations and financial results. As a countermeasure, the company is strengthening its customer success framework and enhancing feature development and support to maintain and improve retention rates.

The company has been actively pursuing upfront investments in customer acquisition, hiring, and marketing, and reported operating losses through FY2023 (ended September 2023). It is difficult to reliably forecast returns on such upfront investments, and if investment effects are not realized within a certain period, operating losses may continue and affect the financial position. The company aims to achieve stable operating profit generation by carefully weighing cost-effectiveness while focusing on new customer acquisition and preventing cancellations by existing customers.

The adult education market is expected to grow, and new entrants both domestic and international may enter the field. If sufficient differentiation is not achieved or competition intensifies, this could have a material impact on the company's business and performance. The company aims to establish an early position in the market by advancing its business ahead of competitors and building up a track record.

In the course of its operations, the company handles a large volume of information assets belonging to individuals and client companies. If information leakage, tampering, or unauthorized use occurs, this could result in damages to customers and a decline in service credibility, potentially having a material impact on financial results and position. The company obtained ISO/IEC 27001 certification in August 2021 and has implemented personal information protection management regulations and operations, officer and employee training, and system measures to prevent unauthorized external access.

The company's services are provided on the foundation of Amazon Web Services (AWS), and the stable operation of AWS is a critical premise for business operations. If AWS were to go down due to natural disasters, unauthorized access, or malicious acts, this could cause damage to customers and undermine service credibility, potentially impacting financial results and position. The company has established a system for continuous monitoring of AWS and a framework for immediate notification of officers and employees and prompt recovery upon detecting failures.

The company's head office and studio are concentrated in Shibuya-ku, Tokyo, and in the event of a large-scale natural disaster such as a major earthquake directly beneath the capital or a Nankai Trough earthquake, facility damage, power outages, and disruption of social infrastructure could make live broadcast distribution and content recording impossible. A halt to the live broadcasting function that characterizes the company's service could seriously impede business continuity. The company strives to minimize this risk by securing alternative studios and developing systems and security measures to support remote work.

The company has issued stock acquisition rights for the purpose of providing incentives to officers and employees and raising capital, and as of the filing date, the ratio of potential shares to total issued shares reaches 7.2%. If these stock acquisition rights are exercised, the value of shares held by existing shareholders and their voting ratio may be diluted.

As of the end of FY2025 (ended September 2025), the company had tax loss carryforwards, and corporate tax at the normal rate is currently not being levied. If performance continues to progress favorably going forward and the tax loss carryforwards are exhausted, taxation at the normal corporate tax rate will apply, potentially affecting net income/loss and cash flow for the period.

The company's strength lies in its abundant in-house planned and produced learning content, but there is a threat of new entrants backed by massive capital building large volumes of learning content in a short period. As a result, if the informational value of the company's content relatively declines and leads to a decline in service value, this could affect the business and performance. The company strives to maintain its competitive advantage by analyzing trends among peers outside Japan and promoting differentiation from other companies.

Kenshiro Mori, the Representative Director and President, is the founder and plays a critical role across overall business activities, including decisions on management policy and business strategy. If he becomes unable to carry out his duties, this could affect financial results and position. The company is currently working to reduce this risk by building out its management structure and developing personnel to avoid excessive dependence on him.