Unite and Grow Inc.

Major customers, which are small and medium-sized enterprises, tend to reduce IT investment or shift to in-house development during economic downturns, creating a risk of decreased demand for the Company's services. While the Company expects continued growth against a backdrop of chronic IT talent shortages, a deterioration in economic conditions may directly affect business performance. The Company strives to reduce this risk through the stable provision of high-quality services.

The Corporate IT Department Business Support business is operated under quasi-delegation contracts, but amendments to the Worker Dispatch Act and related laws, or the enactment of new legislation, could impose constraints on the business. If issues arise regarding a lack of legal qualification requirements, this could have a significant impact on the business and performance. The Company works to mitigate this risk through the advance collection of information on legal amendments and prompt management decision-making.

Since the Company mainly operates its services within Tokyo, the occurrence of a large-scale earthquake, typhoon, infectious disease outbreak, terrorism, or similar event could make normal business activities difficult, potentially affecting business performance and financial condition. The geographic concentration of operations increases the structural risk of disaster impact. The Company has built a response framework through the establishment of an emergency response headquarters, the development of safety confirmation procedures, and the enhancement of telework environments.

Since the Corporate IT Department Business Support business operates in a growth market, new entrants both domestic and foreign may increase. If sufficient differentiation or functional improvement is not achieved, intensified competition could affect business performance. The Company seeks to improve service quality and competitive advantage through the accumulation of proprietary know-how and the development of specialized services and knowledge sharing.

Business expansion requires securing and developing excellent human resources; however, if recruitment plans are not achieved or if an unexpectedly large number of employees resign within the same period, this could affect the business and performance. Intensifying competition in the IT talent market poses a risk that could exacerbate recruitment difficulties. The Company strives to reduce this risk through direct recruiting, referral-based hiring, and increased focus on recruitment public relations.

Due to the nature of its services, the Company frequently handles confidential information, including personal information held by customers, and in the event of an information leakage incident, damage claim lawsuits and other consequences could significantly affect business performance and financial condition. The Company itself recognizes that it is difficult to completely eliminate the risk of information leakage. The Company strives to improve security awareness through obtaining ISO/IEC 27001 certification, developing internal regulations, and conducting internal training.

As the business expands, it becomes necessary to enhance and strengthen internal control systems; if the establishment of a system suited to the scale of the business is delayed, this could affect the business and performance. As a company in a growth phase, there is a structural tendency for gaps to arise between organizational expansion and the development of management systems. The Company's policy is to address this through the design of organizational structures and internal regulations appropriate to its growth, and the securing of necessary personnel.

The Company's main revenue is concentrated in the membership-based services within the Corporate IT Department Business Support business, resulting in a high degree of dependence on this area. If plans for this service do not proceed as scheduled due to factors such as industry and customer trends, this could directly affect business performance. The Company seeks to diversify this risk through the expansion of specialized services and new businesses based on its

The Company utilizes outsourcing contracts with certain individuals and corporations in specialized fields, and if it becomes difficult to continue these transactions, this could affect business performance. The Company explains that, through periodic reviews of outsourcing content and other measures, the impact of this risk has been reduced compared to previous fiscal years. The Company strives to reduce this risk through smooth communication via regular dialogue with outsourcing partners.

The Company grants stock acquisition rights as a stock option system for officers and employees; as of the filing date of this document, the number of shares subject to outstanding stock acquisition rights is 40,400 shares, representing a potential dilution ratio of approximately 0.5% relative to the total number of issued shares of 7,963,200 shares. If these rights are exercised, the value of shares held by existing shareholders may be diluted. The Company strives to reduce this risk by planning and implementing the design of future stock option systems based on the opinions of external experts.