Kaizen Platform, Inc.

The company recorded operating losses of ¥25,661 thousand in FY2023 (ended December 2023) and ¥28,549 thousand in FY2024 (ended December 2024), continuing a streak of consecutive losses. Although FY2025 (ended December 2025) turned to an operating profit of ¥29,196 thousand, the fourth quarter alone fell back into a loss of ¥38,852 thousand. The company intends to continue aggressive investment in personnel recruitment, marketing, and public relations activities going forward, and if the expected effects are not achieved, this may impact its financial position and operating results. As of the end of FY2025 (ended December 2025), the company has tax loss carryforwards, and if these are resolved in the future, the corporate tax burden will increase, affecting cash flow.

The group's core target market is the customer touchpoint domain of the DX market, which is projected to expand to a scale of ¥945.1 billion by 2030 (Fuji Keizai Group, "2025 Future Outlook of the Digital Transformation Market"). However, if the market does not expand as projected, this may impact business development as well as the financial position and operating results. Business and investment plans premised on market growth could be disrupted, which is a risk directly linked to the stability of the revenue base.

Multiple existing competitors already exist in the markets in which the group operates, and new entrants are expected to follow one after another as the market continues to expand. If competitors with superior business models emerge, intensifying competition could undermine the group's market advantage, potentially impacting its financial position and operating results. As countermeasures, the company is working to expand product investment and strengthen marketing and recruitment efforts, but risk remains if these measures prove insufficient.

The group's services belong to a domain where the pace of technological innovation is rapid, and the continuous acquisition of cutting-edge technical know-how is essential to maintaining competitiveness. A delayed response to technological innovation could lead to a decline in service quality and competitiveness, as well as increased additional system costs and personnel expenses to address new technologies. The company is focusing on recruiting and training engineers and improving the development environment, but if it encounters difficulty acquiring knowledge and know-how, this could impact business development as well as its financial position and operating results.

As the group expands its business, it recognizes that the continuous recruitment and training of personnel with advanced technical skills and planning capabilities, particularly in the development division, is essential. If the company fails to secure or train excellent talent meeting its hiring standards as planned, this could lead to a decline in service quality and competitiveness, potentially impacting business development and operating results. The company plans to continue aggressive recruitment investment in FY2025 (ended December 2025), and there is a coexisting risk of both increased recruitment costs and failure to meet hiring targets.

Kenji Sudo, the founder and representative director, has played a central role in determining and executing management policy and business strategy since the company's founding. If, for any reason, he becomes unable to continue executing management duties, this could have a material impact on business development and operating results. The company is strengthening its organizational structure through information sharing at board meetings and delegation of authority, but a high degree of dependence continues to exist at present.

The group holds personal information, including Growth Hacker registration data, and is subject to the Act on the Protection of Personal Information. If personal information were leaked or misused externally for any reason, this could impact the group's financial position and operating results, in addition to damaging its social credibility as a corporate group. The company addresses this through the development of personal information protection policies and regulations, as well as internal training and management systems, but it is difficult to completely eliminate external threats such as cyberattacks.

The group's services are subject to multiple laws and regulations, including the Copyright Act, the Act on the Protection of Personal Information, the Unauthorized Computer Access Law, and the Act on Regulation of Transmission of Specified Electronic Mail. If the business becomes subject to regulation due to the future enactment of new laws or the strengthening of existing laws, this could impact business development as well as the financial position and operating results. The company strives for legal compliance through internal training and structural development, but there is a risk of increasing costs to respond to changes in the regulatory environment.

The group operates its Professional Segment in the United States and other countries, and is exposed to various risks including laws, tax systems, and other regulations, economic and political instability, differences in culture and business customs, exchange rate fluctuations, difficulty securing local personnel, and competition with local competitors. If the company is unable to appropriately address these risks, this could impact business development as well as the financial position and operating results. In particular, foreign exchange fluctuation risk directly affects yen-denominated results, requiring continuous monitoring.

The group grants stock acquisition rights as incentives to officers, employees, and others, and intends to continue utilizing this system going forward. As of December 31, 2025, the number of potential shares was 720,405, equivalent to 4.2% of the total issued shares of 17,016,481. If these stock acquisition rights are exercised, the value of shares held by existing shareholders and their voting ratio may be diluted.