Core Insights - Harrison Global (BLMZ) Holdings issued a strategic business update in response to recent developments and stock activity, with shares closing at $0.166, reflecting market fluctuations [1] - The company is focused on executing its strategic roadmap to create long-term shareholder value through targeted acquisitions and partnerships [1] Acquisitions and Partnerships - Acquisition of Myth Korea is expected to accelerate Harrison Global's expansion in Asia and unlock new revenue opportunities in the entertainment sector, leveraging South Korea's global pop culture influence [1] - Acquisition of Pokemon Center Korea adds high-margin merchandise, retail foot traffic, and global brand equity to Harrison's entertainment portfolio, marking a significant milestone in immersive consumer entertainment [1] - Partnership with Biotree aims to diversify the company's portfolio and unlock long-term growth potential within the health sector, focusing on advanced biotech and wellness innovations [1] - Collaboration with GRAPES is designed to strengthen Harrison's leadership in AI-driven digital entertainment and virtual artist markets, reflecting the company's focus on next-generation media platforms [1] Future Goals - By 2026, the company aims to integrate its recent initiatives into a unified digital entertainment and health-tech ecosystem, delivering sustainable growth and maximizing shareholder value [1]

TOKYO, JP / ACCESS Newswire / September 19, 2025 / Harrison Global Holdings Inc. (NASDAQ:BLMZ), a diversified holding company with active investments in entertainment, digital media, and health-tech, today issued a strategic business update in light of recent developments and short-term stock activity. Stock Price Update BLMZ shares closed at $0.166 in the latest trading session, reflecting short-term market fluctuations amid broader industry dynamics. ...

Financial Performance - As of September 30, 2024, the company reported operating losses of ¥185,902 thousand, compared to losses of ¥14,885 thousand in 2023 and a profit of ¥6,821 thousand in 2022, resulting in accumulated deficits of ¥237,512 thousand, ¥16,489 thousand, and ¥693 thousand respectively[23]. - The revenue generated from the audio production business increased by 44.5% in the fiscal year ended September 30, 2024, compared to 2023, primarily due to the resumption of anime production projects[45]. - The audio production business generated revenues of approximately JPY114,987 thousand, JPY63,835 thousand, and JPY120,121 thousand for the fiscal years ended September 30, 2024, 2023, and 2022, accounting for approximately 52.3%, 49.8%, and 83.2% of total revenue respectively[143]. - The VTuber management business reported revenues of JPY91,563 thousand, JPY57,442 thousand, and JPY18,630 thousand for the fiscal years ended September 30, 2024, 2023, and 2022, representing approximately 41.6%, 44.8%, and 12.8% of total revenue respectively[146]. - The voice actor workshop business generated revenues of approximately JPY4,679 thousand, JPY5,054 thousand, and JPY5,805 thousand for the fiscal years ended September 30, 2024, 2023, and 2022, accounting for approximately 2.1%, 3.9%, and 4.0% of total revenue respectively[149]. Revenue Sources - Revenue from the VTuber management business was significantly impacted by fan engagement, with 13.5%, 29.0%, and 54.0% of revenue generated from YouTube in the fiscal years ended September 30, 2024, 2023, and 2022 respectively[33]. - Revenue from YouTube during the fiscal years ended September 30, 2024, 2023, and 2022 showed that 52.0%, 68.3%, and 81.5% of that revenue was derived from Super Chats/Stickers/Thanks respectively[33]. - The total revenue from YouTube for the fiscal years ended September 30, 2024, 2023, and 2022 was broken down as follows: 4.1%, 7.8%, and 3.0% from Google AdSense; 43.9%, 23.9%, and 15.6% from memberships; and 52.0%, 68.3%, and 81.5% from Super Chats/Stickers/Thanks, respectively[197]. - Revenue generated from YouTube during the fiscal year ended September 30, 2024, accounted for 13.5% of the VTuber management business revenue, while BOOTH contributed 38.7%[199]. - The revenue from BOOTH primarily consists of merchandise sales featuring affiliated VTubers' virtual characters, with recorded voice data being the most popular[198]. Subscriber and Engagement Metrics - The company had approximately 486,000 subscribers on its affiliated VTubers' YouTube channels as of September 30, 2024[32]. - The aggregate number of views of the VTubers' YouTube channels affiliated with Hoshimeguri Gakuen increased significantly from 9,476,466 in fiscal year 2023 to 17,347,841 in fiscal year 2024[60]. - The Hoshimeguri Gakuen VTuber group had approximately 486,000 subscribers on its YouTube channel as of September 30, 2024[195]. - The company had 80 registered members participating in voice actor workshops as of September 30, 2024[216]. Challenges and Risks - The company faced substantial doubt about its ability to continue as a going concern, dependent on attracting revenue-generating customers and securing additional financing[23]. - The company is subject to macroeconomic risks specific to Japan, which could adversely affect clients' willingness to spend on extracurricular education and entertainment services[49]. - Future growth of the Japanese economy is uncertain and could negatively impact demand for the company's services[52]. - The company may face challenges in managing rapid expansion due to limited experience in this area, which could affect operational results[53]. - Negative publicity could materially and adversely affect the company's reputation and business, potentially leading to a loss of market share[55]. - The company may face increased compliance costs due to new data privacy and security laws, which could impact the protection of customer information[71]. - The company may be subject to various claims and legal proceedings that could harm its business and financial condition[76]. Management and Strategy - The company’s management plans to acquire new revenue-generating customer contracts and obtain additional financing through various means, including issuing ordinary shares[24]. - The company has been growing rapidly and intends to expand its business by undertaking more audio production for animation and video game projects[53]. - The company plans to continue investing in audio production services and acquiring intellectual property rights to enhance its offerings[157]. - The company aims to maintain and develop business relationships with existing and potential clients in the animation and video game industries to increase brand awareness[158]. - The company intends to secure talented voice actors and VTubers through enhanced training and larger auditions[159]. - The company aims to acquire existing VTuber groups to reach over 100 affiliated VTubers by 2025[161]. Corporate Structure and Compliance - The company is classified as an "emerging growth company" and will remain so until it meets certain revenue or market value thresholds, including total annual gross revenue of at least $1.235 billion or a market value of Ordinary Shares held by non-affiliates exceeding $700 million[90]. - The company has incurred significant additional costs as a public entity, including legal, accounting, and compliance expenses, which were not present when it was a private company[88]. - The company is incorporated as a Cayman Islands exempted company limited by shares, established on April 14, 2023[134]. - The registration of transfers of Ordinary Shares may be suspended for up to 30 days in any year, with potential extensions upon shareholder approval[108]. - Shareholders may face challenges in enforcing judgments against the company due to its incorporation in the Cayman Islands and operations primarily in Japan[112]. Shareholder and Market Information - The trading price of the company's Ordinary Shares has fluctuated between $0.35 and $4.3 since the IPO on July 23, 2024, indicating potential volatility[78]. - The company received a notification from Nasdaq indicating it did not meet the minimum market value of listed securities requirement of $35 million, with a compliance period until March 11, 2025, to regain compliance[99][100]. - The company also received a deficiency letter from Nasdaq for not meeting the minimum bid price requirement of $1.00 per share, with a compliance period until June 2, 2025[101][102]. - The company has registered for resale by White Lion up to 40,500,000 Ordinary Shares, which may cause substantial dilution to existing shareholders[106]. - The issuance of Ordinary Shares to White Lion may lead to a decline in the trading price of the company's Ordinary Shares due to potential market saturation[106]. - The company may face significant consequences if delisted from Nasdaq, including anti-takeover provisions that could discourage changes in control[103]. Production and Client Relationships - The company produced two animations and one video game in the fiscal year ended September 30, 2024, with revenues of JPY 24,794 thousand and JPY 15,000 thousand from video games and animations respectively[176]. - Approximately 82% of the orders received in the fiscal year ended September 30, 2024, came from existing clients, indicating high client satisfaction[189]. - The company has invested in animation production committees to acquire rights for comprehensive audio production and overseas copyrights, enhancing total revenue potential[165]. - The company is a member of anime production committees for seven popular Japanese manga, with four already broadcast since September 2023 and one scheduled for April 2025, expecting revenue from overseas copyrights thereafter[166]. - For the fiscal year ended September 30, 2024, the company generated JPY 92,869 thousand in revenue from its top five clients, accounting for 80.8% of total revenue[190].