Remixpoint,inc.

The Group acquires, holds, and manages crypto assets centered on Bitcoin in its Digital Asset Management Business. Crypto asset prices are highly volatile and are significantly affected by economic conditions and financial market trends. When prices decline, valuation losses on crypto assets are recorded in the income statement, which could have an excessive impact on the Group's overall business results and financial position. The Group addresses this through entrusting assets to external custodians and thorough risk management, but system security risks such as hacking and unauthorized outflows also coexist.

Since the full liberalization of electricity retail sales in 2016, the number of registered retail electricity providers reached 814 as of June 2026, intensifying competition. Costs for retail electricity providers are expected to continue increasing due to surges in wholesale electricity trading prices, the obligation to procure non-fossil fuel energy certificates (requiring the non-fossil power source ratio to be at least 44% by 2030), capacity contribution burdens, and the planned "quantitative supply capacity assurance obligation" starting in 2030 (requiring securing 50% of projected demand through physical power sources three years before actual supply and demand, and 70% one year before). If these cost increases cannot be passed on to customers, the Company may be unable to secure appropriate profits. The Company is addressing this by securing long-term bilateral power sources and reviewing its product mix.

The electricity retail business is operated based on the Electricity Business Act, and unexpected legal amendments, system changes, or changes in interpretation may constrain business development. In addition, new regulations, such as the obligation to procure non-fossil fuel energy certificates under the Act on Sophisticated Methods of Energy Supply Structures, are being progressively strengthened, and there is a risk that business continuity could become impossible if licenses or registrations are revoked. Violations of various laws and regulations concerning consumer protection, privacy, labor, and fair competition may also result in administrative sanctions and a decline in social credibility.

In the Grid-Connected Storage Battery Business, which the Company has entered in earnest, prices in the supply-demand adjustment market may decline due to an increase in the number of entrant companies and changes in the system, resulting in a failure to achieve projected revenues or an extended investment recovery period. If troubles such as initial defects, malfunctions, deterioration, or accidents occur with storage batteries, the Company may lose revenue that would otherwise have been earned, and additional costs may arise from responding to complaints from nearby residents. If these risks materialize, they could adversely affect the Group's business results and financial position.

The Company engages in lending transactions in which it lends its held crypto assets to third parties. This entails risks such as the inability to recover the loan due to deterioration in the borrower's financial condition, the inability to sell in the event of a sharp price decline during the lending period, and the risk of hacking at the borrower. There is also a possibility that the return of crypto assets may be delayed or become impossible due to force majeure events such as large-scale system failures. If these occur, they could adversely affect the Group's business results and financial position.

Revenue from the electricity retail business is affected by seasonal fluctuations in electricity usage, and imbalance charges and other burdens may arise from disruptions in the electricity supply-demand balance. In the Energy-Saving Consulting Business, revenue is skewed depending on the timing of subsidy grant decisions, and there is a risk that annual revenue will fluctuate due to changes in subsidy budget scale and application requirements. The Group strives to level out periodic profit and loss through enhancing its supply-demand management system, diversifying its power procurement sources, and expanding sales of energy-related equipment.

The Group actively pursues M&A, business acquisitions, joint venture establishment, and partnerships with third parties to develop new businesses and expand existing ones, which may incur significant expenses. If an investee or joint venture experiences a significant downturn or continued poor performance, additional costs may be incurred, and impairment or valuation losses on investment securities may be recorded. Although decisions are made after considering synergy effects, investment profitability, laws and regulations, accounting, taxation, and other risks, there remains a risk that the intended objectives may not be achieved.

The Group holds confidential information and personal information of customers and business partners, and operates multiple computer systems connected via networks to customers and business partners, creating risks of information leakage or data tampering due to cyberattacks, unauthorized access, system failures, and the like. If these risks materialize, they could adversely affect business operations and financial results through damages claims, administrative sanctions, and reputational harm. The Group addresses this through establishing information management regulations, training officers and employees, and developing contingency plans, but risks associated with technological advances continue to exist.

In the procurement of equipment such as storage batteries for the Energy Storage Solutions Business, dependence on specific suppliers and disruptions in logistics due to geopolitical risk, natural disasters, cyberattacks, and other factors may cause interruptions or delays in production and supply, resulting in lost sales opportunities. If defects or malfunctions in products, including those from outsourced partners, or improper installation work cause damage to customers, this could lead to recall costs, damages costs, and loss of trust. The Group is strengthening supply chain management through diversifying its business partners and enhancing oversight of outsourced partners.

The Group grants stock acquisition rights (stock options) as incentives to directors and employees, and plans to continue utilizing them going forward. The Group may issue new shares or stock acquisition rights, or utilize treasury shares, for purposes such as business investment, growth strategy, and responding to changes in the business environment. The exercise of these rights or such issuances may dilute the per-share value and voting rights ratio for existing shareholders, potentially affecting the share price. Similar dilution risks may also arise in connection with capital alliances undertaken alongside business alliances.