Cytori Cell Research Institute,Inc.

Business Details

Consolidated subsidiary ADR Therapeutics Inc. is the primary operator, selling the medical device "Celution Centrifuge" and the highly controlled Class III medical device "Cell Therapy Kit" to domestic medical institutions. Provides same-day cell therapy using patients' own adipose-derived regenerative cells (ADRCs). From FY2026 (ending March 2026), fully transitioned to a single reportable segment of "Medical Business" (the last real estate property in the Real Asset Business was transferred in May 2025).

Recent Overview

Net sales declined sharply to ¥51 million due to the postponed launch of the Celution Centrifuge, with material uncertainty regarding going concern assumptions.

Net sales for FY2026 (ending March 2026) were ¥51 million (down 58.3% year on year). While product development for the domestically produced Celution Centrifuge has been completed, priority was given to final adjustments for the transition to mass production and response to semiconductor supply constraints, postponing the sales launch to August 2026. Meanwhile, sales of the domestically produced Cell Therapy Kit commenced from February 2026. Extraordinary income of ¥614 million was recorded, including a ¥400 million gain on debt waiver from HG Capital Co., Ltd., resulting in net loss for the period of ¥397 million (a significant improvement from ¥2,140 million in the prior period). The last real estate property (trust beneficiary interest) in the Real Asset Business was transferred in May 2025, completing the full transition to the single segment of Medical Business. Proceeds of ¥2,944 million from the transfer of fixed assets were used to repay ¥2,348 million in long-term borrowings, improving the financial structure, but net assets of ¥22 million and an equity ratio of 6.0% remain extremely weak. Material uncertainty regarding the going concern assumption continues to be recognized. For FY2027 (ending March 2027), net sales of ¥750 million, operating profit of ¥30 million, and net income of ¥20 million are forecast.

Key Products

Growth Drivers

• Sharp recovery in sales driven by full-scale launch of the domestically produced Celution Centrifuge in August 2026 (FY2027 (ending March 2027) net sales forecast of ¥750 million, up 1,470.9% year on year)
• Achievement of stable procurement, quality improvement, and cost reduction through the domestically produced Cell Therapy Kit (sales commenced February 2026)
• Market expansion and improved patient access through achievement of insurance coverage for treatment of male stress urinary incontinence (SUI)
• Establishment of a new revenue source through the transition of the Neocella business (high-concentration exosome-containing solution) to a revenue-generation phase
• Business expansion into new medical needs such as sports medicine and joint/musculoskeletal disorders
• Securing of a funding base through maintenance of a ¥500 million commitment line by HG Capital Co., Ltd.
• Improved profitability through significant reduction in cost burden, including annual development expenses, following completion of the domestic production system
• Business contribution from the newly consolidated subsidiary ADR genesis Inc.

Risks

• Material uncertainty regarding the going concern assumption is recognized, and while countermeasures are underway, the uncertainty has not been resolved at present
• Extremely fragile financial base with net assets of ¥22 million and an equity ratio of 6.0%, presenting a risk of negative net worth in the event of additional losses
• Risk of failing to meet the FY2027 (ending March 2027) earnings forecast (net sales of ¥750 million) if the launch timing of the Celution Centrifuge is postponed again
• Risk of funding depletion due to continued operating losses (-¥906 million in FY2026, ending March 2026) and negative operating cash flow (-¥785 million)
• Low liquidity on hand with cash and cash equivalents at period-end of only ¥126 million, dependent on the availability of the commitment line (up to ¥500 million)
• Risk of delayed monetization due to the prolonged and uncertain timeline for insurance coverage procedures
• Risk of delay in the transition to mass production of the Celution Centrifuge due to continued global semiconductor supply constraints
• Risk that commercialization of new business areas such as the Neocella business does not proceed as planned
• Governance risk related to related-party transactions with HG Capital Co., Ltd. (whose representative director and president is the same individual as the Company's representative director and president)

Business Details

The Real Asset Business was a segment centered on real estate sale and purchase, investment in real estate business projects, and the hotel business. Dewey Co., Ltd. and Satellite Nagoya Co., Ltd. handled the real estate division, while the hotel division was already withdrawn from through the share transfer of Hotel Kanazawa Co., Ltd. (in the previous consolidated fiscal year). Satellite Nagoya Co., Ltd. also ended its operation of an off-track betting sales outlet in March 2024. During the current consolidated fiscal year (FY2025, ending March 2025), the last real estate property (trust beneficiary interest) was transferred in May 2025, and from the first quarter the segment was changed to a single segment (Medical Business), effectively eliminating this segment.

Recent Overview

The last real estate property was transferred in May 2025, resulting in the segment's elimination.

In FY2025 (ending March 2025, the current consolidated fiscal year), net sales in the Real Asset Business were ¥26 million (down 98.1% year on year), and an operating loss of ¥91 million was recorded (compared to an operating loss of ¥30 million in the previous consolidated fiscal year). Segment assets were ¥3,179 million (down ¥1,581 million from the end of the previous consolidated fiscal year). An impairment loss on tangible fixed assets of ¥1,091 million was recorded. In May 2025, during the first quarter of FY2026 (ending March 2026), the last held real estate property (trust beneficiary interest) was transferred, and the proceeds from the sale were used to repay long-term borrowings of approximately ¥2,293 million. As a result, fixed assets decreased by ¥2,981 million and fixed liabilities decreased by ¥2,296 million. From the first quarter, the reportable segment was changed to the single segment of Medical Business, and the Real Asset Business segment was abolished.

Key Products

Growth Drivers

Risks

• The business foundation disappeared due to withdrawal from the hotel business and the sale of all real estate, resulting in the abolition of the segment itself
• An impairment loss on tangible fixed assets of ¥1,091 million (FY2025, ending March 2025) was recorded, causing a major financial impact
• Even after repayment of long-term borrowings using proceeds from real estate sales, material uncertainty regarding the going concern assumption remains at the Group level as a whole
• A sharp decline in sales (down 98.1% year on year) occurred during the transition period from the Real Asset Business to the Medical Business

Business Details

The Group changed its reportable segment to the single segment of "Medical Business" from FY2026 (ending March 2026). This followed the transfer of the last held real estate property in the "Real Asset Business" in May 2025, and company-wide common expenses that had previously been aggregated as "Other (Corporate Expenses)" have been consolidated into the selling, general and administrative expenses of the single segment. The "Other (Corporate Expenses)" segment as an independent reconciliation category is no longer subject to disclosure from the current consolidated fiscal year.

Recent Overview

Completed transition to a single segment, and financial base was strengthened following a ¥400 million debt waiver from HG Capital.

In May 2025, the last real estate property (trust beneficiary interest) in the Real Asset Business was transferred, completing the transition to the single segment of Medical Business. Proceeds of ¥2,944 million from investing cash flow related to the transfer were used to repay long-term borrowings of ¥2,348 million. Meanwhile, as of March 27, 2026, the Company accepted financial support from HG Capital, including a debt waiver of ¥400 million (recorded as extraordinary income) and maintenance of a commitment line with a lending limit of up to ¥500 million. Material uncertainty regarding the going concern assumption remains recognized.

Key Products

Growth Drivers

• Significant increase in net sales in FY2027 (ending March 2027) (forecast of ¥750 million) driven by the full-scale launch of the domestically produced Celution Centrifuge (planned for August 2026)
• Stable sales contribution from the domestically produced Cell Therapy Kit, with sales commencing from February 2026
• Establishment of a new revenue source through the transition of the Neocella business to a revenue-generation phase
• Market expansion through advancement of the insurance coverage application for treatment of male stress urinary incontinence
• Stabilization of fund-raising through maintenance of a ¥500 million commitment line by HG Capital
• Significant reduction in cost burden, including annual development expenses, following completion of domestic production and the transition of the Neocella business phase

Risks

• Material uncertainty regarding the going concern assumption is recognized due to continuing operating losses (-¥906 million) and negative operating cash flow (-¥785 million)
• Risk that the launch of the Celution Centrifuge, already postponed once, is delayed again beyond the planned August 2026 launch
• Risk of further delay in the transition to mass production if global semiconductor supply constraints continue
• Risk that business continuity is hindered if additional fundraising is not achieved, given the minimal cash and cash equivalents balance at period-end of only ¥126 million
• Risk that the transition to a single segment reduces the transparency of the breakdown of company-wide expenses, making it difficult for investors to grasp the cost structure
• Risk that the timing of the application for and approval of insurance coverage is uncertain, significantly delaying the timing of monetization
• Risk that financial soundness has been significantly impaired, with the equity ratio having fallen to 6.0%