EYEZ,INC.

Because the company's core business is limited to internet advertising, if reforms with a major impact on the advertising industry occur—such as technological innovation or legal amendments—this could affect operating results. Increases or decreases in advertiser spending due to economic fluctuations also represent a risk directly linked to business performance. As a countermeasure, the company is expanding the business of "Facclog," a matching platform for the financial industry, in order to reduce dependence on any particular market condition.

If the company is slow to respond appropriately—such as through proper organization of membership—to changes in user usage trends on major SNS platforms including Instagram, Facebook, X, LINE, and TikTok, or to the emergence of new SNS platforms, this could affect business performance. There is also a risk that changes to advertising-related terms of service or regulations could render conventional advertising methods unusable, as well as a risk of reduced reliability due to security deficiencies on SNS platforms. The company continuously collects information on trends across each SNS platform.

In the internet industry, the development and adoption of new technologies such as generative AI is progressing at an extremely rapid pace, and customer needs are also changing rapidly. If the company is slow to respond to unexpected and rapid technological changes, or if unplanned system investments become necessary to address new technologies, this could affect the business and operating results. The company is advancing the collection and analysis of new technologies and promoting their implementation in its advertising review system and service development.

The core service "Media Radar" is highly dependent on customer acquisition from Google and Yahoo! JAPAN, and if major changes to search algorithms render SEO measures ineffective, this could have a significant impact on the business and operating results. As a countermeasure, the company continuously implements SEO measures based on obtaining information on algorithm changes, monitoring search ranking fluctuations, access analysis, and analysis of top-ranked sites.

The company is subject to regulations such as the Pharmaceuticals and Medical Devices Act, the Health Promotion Act, the Act on the Protection of Personal Information, and the Act against Unjustifiable Premiums and Misleading Representations (including the stealth marketing regulations that took effect in October 2023), and regulations concerning advertising displays tend to be strengthened year by year. If violations of these laws and regulations occur, or if the business is constrained by the enactment of new laws or changes in the interpretation of existing laws, this could affect operating results. The company conducts its business operations with thorough compliance with laws and guidelines.

The service "Torami" depends on the quality and scale of its member network, and if there is a deterioration in the relationship of trust with members, a failure to secure members matching client needs, or difficult-to-manage situations such as members' non-compliance with review standards or online controversies, this could affect operating results and financial condition. As a countermeasure, the company has implemented a proprietary advertisement and post review tool utilizing generative AI, and has established a review system that includes attorney confirmation as needed.

The company holds personal information obtained through Torami and Media Radar, and if such personal information is leaked due to information security risks, or if problems arise in the collection process, damage such as loss of trust could occur, affecting operating results. As a countermeasure, in addition to establishing regulations such as a personal information protection policy and password policy, the company obtained Privacy Mark certification (JIPDEC) in February 2023 and has built mechanisms to prevent leakage.

Norihiro Fukushima, the founder and Representative Director and President, plays a critical role in determining management policy and business strategy and in driving the business forward, and if he becomes unable to continue his duties, this could affect the business and operating results. As a countermeasure, the company is enhancing information sharing at Board of Directors and management meetings and strengthening its management organization, working to build a system that eliminates excessive dependence on any single individual.

As of December 31, 2025, the company is a small organization with 3 directors, 3 auditors, and 64 employees, and its internal management system remains commensurate with this scale. If the company is unable to secure and develop excellent personnel as planned, or if key personnel leave for other companies, this could become a factor constraining competitiveness and business expansion, affecting operating results. As a countermeasure, the company is working on introducing an internship program, strengthening recruitment, and promoting diverse working styles such as hybrid work.

The total number of potential shares from stock options granted as incentives to directors and employees is 58,940 shares, equivalent to 5.7% of the total number of issued shares of 1,026,100 shares. If these stock options are exercised, the value of shares held by existing shareholders could be diluted. In addition, due to the company being in a growth phase, it has not paid dividends to date, and the timing of any future dividend payment remains undecided.