Fast Accounting Co.,Ltd.

Since customer accounting data contains confidential information, if information leakage occurs due to unauthorized external access or similar incidents, this could lead to liability for damages and loss of customer trust. As a countermeasure, the Company has obtained ISO/IEC 27001:2022 and ISO/IEC 27017:2015 certifications and operates an information security management system to minimize this risk.

Research and development in the AI industry is progressing rapidly both domestically and internationally, creating a risk that the technological capabilities underpinning the Group's competitiveness could become obsolete. If the Group falls behind in responding to rapid technological innovation, this could result in sluggish growth in new contracts or cancellations by existing customers, potentially affecting operating results and financial condition. The Group continuously works to gather the latest technology information and secure talented personnel.

While the AI-OCR service is designed to comply with legal requirements such as the Electronic Books Preservation Act, there is a risk that legal amendments could render the current service non-compliant with such requirements. In addition, as electronic invoicing progresses in the wake of the invoice system, AI-OCR technology may become unnecessary in the future. The Company shares information with its retained attorneys and tax accountants as needed, and is also considering new businesses such as providing a Peppol Access Point.

If the Group's services infringe on third-party patents or other intellectual property rights, this could lead to litigation with a material impact on business performance and continuity. In addition, there is a possibility that the Group's own intellectual property rights could be infringed by third parties. The Company has retained attorneys and patent attorneys with expertise in intellectual property, conducts rights investigations for new technologies and services as needed, and works to secure rights for its own technologies.

As a SaaS business, stable system operation is essential. If a system failure occurs due to a sudden surge in access, malfunction of network equipment, natural disasters, or other causes, this could disrupt service provision and affect operating results and financial condition. The Company minimizes this risk through the introduction of a server monitoring system, ongoing backup and redundancy measures, and operation of a management system that includes internal audits in accordance with ISO/IEC 27001:2022.

In the rapidly evolving AI field, securing talented personnel with cutting-edge technology and experience is essential to respond to the diversifying needs of enterprise customers. If the Group is unable to acquire the necessary personnel or fails to sufficiently develop human resources, this could lead to a decline in competitiveness and affect operating results and financial condition. The Company conducts ongoing recruitment activities, but competition to acquire AI talent is intensifying.

Keitaro Mori, Representative Director and President, plays a central role in driving the business, including devising service and business models, formulating business strategy, and conducting sales activities. If the Representative Director becomes unable to perform his duties for any reason, this could affect operating results and financial condition. The Company is working to build a structure that reduces excessive dependence on the Representative Director through the recruitment of external personnel and the development of internal talent.

The Company has issued subscription rights to shares (stock options) to enhance employee motivation and foster awareness of participation in management, and as of the end of December 2025, these represented 7.9% of the total number of issued shares. If these subscription rights to shares are exercised, the share value and voting rights ratio of existing shareholders may be diluted.

Many similar services exist for AI-OCR-based accounting document reading services, and the increase in AI-utilizing services creates a risk of declining unit sales prices due to price competition. While the Company secures a technological advantage through its focus on accounting-document-specific reading accuracy, journal entry reflection systems, and concentrated acquisition of related patents, if it becomes unable to maintain a price or technological advantage over competitors, this could affect operating results and financial condition.

In the fiscal year ended December 2025, sales through partners accounted for approximately 50% of total revenue, indicating a high degree of dependence on sales partners and OEM partners. If cancellation or non-renewal of partner contracts, or changes in partners' sales policies, cause a significant decline in sales, this could have a material impact on operating results and financial condition. The Company currently strives to maintain good relationships with each partner.