Mobilus Corporation

In the contact center industry, which comprises the Company Group's key customers, if software investment is significantly suppressed due to deterioration in domestic and overseas economic conditions or other factors, this may affect the Company Group's financial position and operating results. The Company Group strives to expand its customer base through active seminars and strengthened sales structures, but addressing demand fluctuation risk, including developing customers outside the contact center industry, remains a challenge.

In the BPO market for contact centers, new technology development and new service introductions occur frequently, and customer needs also change rapidly. The Company Group has established a structure for information gathering, customer needs analysis, and responding to new technologies, but if unexpected and rapid industry changes occur and the response is delayed, this may affect the financial position and operating results.

In the BPO market for contact centers, the speed of service development is fast, and if competitors develop new services or price competition further intensifies, this may affect the Company Group's financial position and operating results. The Company Group is proceeding with development that matches customer needs while grasping those needs, but maintaining competitive advantage remains an ongoing challenge.

In the course of its business, the Company Group handles personal information contained in customer companies' message data and conversation content, and if an information leak occurs, this may have a material impact on the financial position and operating results due to claims for damages from customers and loss of trust. The Company Group addresses this through obtaining Privacy Mark and ISMS certification, conducting information security education and training for officers and employees, and strengthening information management systems including at consolidated subsidiaries, but the risk cannot be completely eliminated.

The Company Group's SaaS products operate on a subscription-based recurring model, and acquiring new customers and maintaining the retention rate of existing customers are important factors for continued growth. If new customer acquisition does not progress as expected due to a decline in market competitiveness or other factors, or if cancellations increase and recurring revenue declines, this may affect the financial position and operating results. The Company Group aims to maintain and improve the retention rate through additional feature development and enhanced support, but trends in the cancellation rate are a major factor in performance fluctuations.

The Company Group has sales channels through service wholesale and OEM supply to sales partners, but the Company Group has no control over the sales activities of such partners. If new customer acquisition does not progress as expected, if recurring revenue declines due to increased cancellations, or if relationships with partners deteriorate, this may affect the business and operating results. The Company Group has established a sales team for partners and addresses this through joint proposals, customer success activities, and new feature development.

The Company Group's business depends on communication networks, servers, computer systems, and the like, and if natural disasters such as earthquakes or fires, human error, unauthorized external access, or service interruptions caused by telecommunications carriers occur, this may affect the business and operating results. The Company Group implements disaster countermeasures, system enhancements, security measures, and strives for strict operations, but the risk of a prolonged service outage cannot be eliminated.

The Company Group's services are subject to regulations such as the Telecommunications Business Act, the Unauthorized Computer Access Law, the Act on Regulation of Transmission of Specified Electronic Mail, and the Act on the Protection of Personal Information, and since this is a relatively new business area, there is a possibility that new laws and regulations will be enacted in the future, subjecting the Company Group to additional regulation. The Company Group strives to strengthen its legal compliance system through collaboration with retained attorneys and internal compliance training, but depending on legal amendments and regulatory trends, business activities may be hindered, which may affect operating results.

Due to the declining birthrate and aging population, the shrinking labor force, and rising demand for engineering talent, the talent market is becoming depleted, and the environment for securing excellent personnel and maintaining and developing existing personnel is severe. The Company Group implements measures such as diversifying recruitment channels, strengthening new graduate hiring, onboarding training, 1-on-1 meetings, and management training, but if securing and developing talent does not proceed as planned, this may affect the business and operating results.

As of the end of the fiscal year under review, the total number of potential shares related to stock acquisition rights granted to directors, employees, and others was 377,348 shares, equivalent to 6.2% of the total number of issued shares. If these stock acquisition rights are exercised, the value per share may be diluted, potentially affecting stock price formation. In addition, the Company has no track record of paying dividends since its establishment, and the possibility and timing of dividend payments remain undetermined at present, which also warrants attention from the perspective of shareholder returns.