Last One Mile Co.,Ltd.

The Group holds various types of personal information, including customer data, and faces risks of information leakage from unauthorized external intrusion as well as from internal personnel or outsourcing partners. Although the Group has established management systems such as obtaining Privacy Mark certification and implementing access restrictions, if an information leak were to occur, it could damage trust and have a material impact on business operations and operating results.

If negative rumors spread through online bulletin board postings or media coverage triggered by complaints, the company's image could be damaged regardless of the accuracy of the content. Reputational damage may lead to customer attrition and difficulty in acquiring new customers, potentially affecting operating results.

The occurrence or spread of large-scale natural disasters or infectious diseases such as COVID-19 could significantly restrict business activities over a prolonged period. Although the Group strives to ensure employee safety and establish business continuity systems, if such risks materialize, they could affect the Group's financial position and operating results.

The Group applies IFRS, under which goodwill is not amortized on a straight-line basis; however, if indications of impairment arise due to deterioration in the operating results of a subsidiary or other factors, and the recoverable amount falls below the carrying amount of goodwill, an impairment loss will need to be recognized. If an impairment loss occurs, it could have a material impact on operating results and financial position.

While the Group diversifies risk by migrating systems and servers to the cloud and enhancing the redundancy of communication lines, system failures caused by unknown computer viruses, hacking, cyberattacks, or other threats could disrupt service operations. If a system failure occurs, it could have a material impact on the Group's financial position and operating results.

As the business expands, effective corporate governance functions are essential; however, if there are delays in establishing internal management systems appropriate to the scale of the business, the appropriateness of operations and the reliability of financial reporting could be compromised. Deficiencies in internal management systems could affect operating results.

The Group has developed and expanded its sales system for products and services through alliances and cooperation with business partners such as sales agencies and partner companies; however, if the expected effects are not achieved or if such alliances or partnerships are dissolved, the Group's business foundation could be damaged. Dissolution of such partnerships could affect the Group's financial position and operating results.

In the market for lifestyle-related services such as electricity, gas, water servers, and internet lines, multiple competitors exist, and intensifying competition is expected, including from new entrants from other industries. A decline in profitability or an increase in advertising expenses due to intensifying competition could affect business operations and operating results.

The Group receives commissions from service providers and upper-tier agencies as compensation for brokering contracts; however, transaction terms may be significantly changed due to changes in the business policies of such providers, among other factors. Deterioration in commission terms could directly affect the Group's financial position and operating results.

In revenue for FY2025 (ending August 2025), Life In 24 Corporation accounted for 13.7% and Premium Water Holdings Co., Ltd. accounted for 10.5%, indicating a high degree of dependence on specific business partners. Although the Group is working to develop new clients and introduce new services, if these efforts do not proceed as planned, changes in transaction terms and other factors could affect operating results.