Acquires ETH as part of financial strategy TOKYO, Aug. 22, 2025 (GLOBE NEWSWIRE) -- MEDIROM Healthcare Technologies Inc. (Headquarters: Minato-ku, Tokyo; CEO: Kouji Eguchi; NASDAQ: MRM) (the “Company”, “we” or “us”), which operates a diversified healthcare business, announced its participation in “World,” a “proof of human” protocol co-founded by Sam Altman and Alex Blania. The purpose of this project is to build a new digital infrastructure that will enable "proof of humanness" in the age of AI. As part of ...

Core Points - MEDIROM Healthcare Technologies Inc. has regained compliance with Nasdaq's minimum bid price requirement as of June 4, 2025 [1][3] - The company was previously notified on February 27, 2025, that it was not in compliance, needing to maintain a minimum closing bid price of $1.00 per share for at least 10 consecutive business days [2] - The closing bid price of the company's American Depositary Shares (ADSs) was $1.00 or greater for the required period from May 20, 2025, to June 3, 2025 [3] Company Overview - MEDIROM operates over 300 wellness salons in Japan, with its leading brand being Re.Ra.Ku® [4] - The company entered the health tech business in 2015 and launched an on-demand training app called "Lav®" [4] - In 2020, MEDIROM developed a smart tracker, the "MOTHER Bracelet®," and in 2023, it launched REMONY, a remote monitoring system for corporate clients across various industries [4] - MEDIROM aims to leverage its diverse portfolio to collect and manage healthcare data, positioning itself as a leader in healthcare big data in Japan [4]

Core Insights - MEDIROM Healthcare Technologies Inc. has announced that its subsidiary, MEDIROM MOTHER Labs, has surpassed 100 cumulative contracted companies and 10,000 cumulative supported individuals using its health guidance service via the "Lav" app [2][5] - The "Lav" app, launched in 2019, provides continuous health support through information and communication technology, receiving high evaluations from health insurance associations and company employees [2][11] - The total weight loss achieved by all "Lav" users since the app's implementation has reached 15,421 kilograms, equivalent to approximately 2.2 African elephants or 10 cars [7] Company Overview - MEDIROM operates over 300 wellness salons across Japan, with its leading brand being Re.Ra.Ku, and has expanded into health tech since 2015 with the launch of the "Lav" app [17] - The company also entered the device business in 2020 with the development of the "MOTHER Bracelet" and launched a remote monitoring system called REMONY in 2023, catering to various industries [17] - MEDIROM aims to leverage its diverse health-related products and services to collect and manage healthcare data, positioning itself as a leader in big data within the healthcare industry [17] Specific Health Guidance Program - The Specific Health Guidance Program, implemented by Japan's Ministry of Health, Labor and Welfare, targets medical insurance subscribers aged 40-74 to prevent lifestyle-related diseases [10] - The program includes specific health checkups and guidance from public health nurses and registered dietitians, focusing on improving diet and exercise habits for those at risk of metabolic syndrome [10] - The "Lav" app enhances this program by allowing users to track their health status and receive personalized advice from professional coaches, making health promotion more accessible [11]

Core Insights - MEDIROM Healthcare Technologies Inc. reported total revenue of $52,736,000 for the year ended December 31, 2024, representing a 22% increase from $43,388,000 in 2023 [1] - The net income for 2024 was $878,000, or $0.17 per basic share, a 20% improvement compared to $731,000, or $0.15 per basic share, in 2023 [1] Revenue Growth - The revenue growth in 2024 was primarily driven by a 23% increase in the Relaxation Salon Segment revenue, which reached $47,317,000 compared to $38,507,000 in 2023 [2] Cost Management - The increase in net income was attributed to a rise in total revenue, a decrease in the cost of revenues as a percentage of total revenues to 72.9% in 2024 from 77.0% in 2023, and a reduction in selling, general, and administrative expenses as a percentage of total revenues to 27.0% in 2024 from 28.7% in 2023 [3] Financial Position - As of December 31, 2024, MEDIROM had cash and cash equivalents of $2,093,000, up from $676,000 as of December 31, 2023 [4] - The total indebtedness increased to $11,925,000 in 2024 from $9,857,000 in 2023 [4] Cash Flow Analysis - Net cash used in operating activities was $8,462,000 in 2024, compared to $4,014,000 in 2023 [5] - Net cash provided in investing activities was $2,296,000 in 2024, while there was net cash used of $2,088,000 in 2023 [5] - Net cash provided by financing activities was $7,583,000 in 2024, an increase from $2,931,000 in 2023 [5] Strategic Developments - In 2025, MEDIROM announced the launch of its remote health monitoring system, REMONY, and the MOTHER Bracelet, targeting corporate clients [6] - The company aims to capture a significant share of the Japanese relaxation salon market and expand its Digital Preventative Healthcare business lines [6]

Core Viewpoint - MEDIROM Healthcare Technologies Inc. will host a webcast to review its financial results for the fiscal year ended December 31, 2024, on May 21, 2025, at 8:30 am Eastern Time [1] Group 1: Financial Results Announcement - The Company will issue a press release discussing its financial results after the market close on May 20, 2025 [2] - The most recent annual report on Form 20-F, covering the Company's financial results for the 2024 fiscal year, was filed on April 29, 2025, and is available on the SEC website [2] Group 2: Company Overview - MEDIROM operates 307 relaxation salons across Japan as of March 31, 2025, with its leading brand being Re.Ra.Ku [5] - The Company entered the health tech business in 2015 and launched a training app called "Lav" [5] - In 2020, MEDIROM developed a smart tracker named "MOTHER Bracelet" and launched REMONY, a remote monitoring system for corporate clients, in 2023 [5] - The Company aims to collect and manage healthcare data to become a leader in big data within the healthcare industry [5]

PART I [Key Information](index=7&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section details significant investment risks, including operational challenges, financial concerns, M&A integration issues, and risks related to ADS ownership and regulatory compliance [Risk Factors](index=7&type=section&id=D.%20Risk%20Factors) This subsection comprehensively outlines operational, financial, market, and investor-specific risks, including M&A activities and governance concerns - The company's functional and reporting currency is the Japanese yen (JPY); convenience translations to U.S. dollars are made at an exchange rate of **¥157.37 = US$1.00** as of December 31, 2024[25](index=25&type=chunk) - The company is an **'emerging growth company'** and a **'foreign private issuer'**, allowing reduced disclosure and home country governance practices, potentially offering less investor protection than U.S. domestic issuers[29](index=29&type=chunk)[140](index=140&type=chunk)[144](index=144&type=chunk) - The company faces a risk of being **delisted from the Nasdaq Capital Market** for failing to meet continued listing requirements, such as the **minimum bid price of $1.00 per share**, for which it received a notification of non-compliance on **February 27, 2025**[145](index=145&type=chunk)[147](index=147&type=chunk)[149](index=149&type=chunk) - The Chief Executive Officer, Kouji Eguchi, holds a **'golden share'** (Class A common share) with **veto rights** on key corporate matters, limiting other shareholders' ability to influence the company's business[154](index=154&type=chunk) - The company has identified several **material weaknesses in its internal control over financial reporting**, including issues with journal entry reviews, management review controls, user access controls (segregation of duties), and expertise in complex accounting transactions[159](index=159&type=chunk)[163](index=163&type=chunk) - There is a risk that the company will be classified as a **Passive Foreign Investment Company (PFIC)**, which could result in **adverse U.S. federal income tax consequences** for U.S. holders, a risk increased due to recent declines in the ADS market price[104](index=104&type=chunk)[105](index=105&type=chunk) [Information on the Company](index=69&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides a detailed overview of MEDIROM's business, history, and strategic direction across its Relaxation Salons, Luxury Beauty, and Digital Preventative Healthcare segments, including key acquisitions and growth initiatives [History and Development of the Company](index=69&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) This subsection outlines the company's corporate evolution, key milestones, strategic acquisitions, and significant reorganizations, including the spin-off of its Digital Preventative Healthcare business and the planned acquisition of JGMC - The company was incorporated in Japan on **July 13, 2000**, and listed its ADSs on The Nasdaq Capital Market in **December 2020**[209](index=209&type=chunk) - The company has grown through acquisitions, including **ZACC** (a high-end hair salon) in **2021** and **SAWAN CO. LTD.** (owner of 'Ruam Ruam' luxury relaxation salons) in **2021**[213](index=213&type=chunk)[216](index=216&type=chunk) - A significant reorganization occurred in **July 2023**, where the Digital Preventative Healthcare business was transferred to a new subsidiary, **MEDIROM MOTHER Labs Inc. (MML)**, to accelerate its growth and external financing[217](index=217&type=chunk)[219](index=219&type=chunk) - On **June 30, 2024**, the company signed an agreement to acquire **70%** of **Japan Gene Medicine Corporation (JGMC)** to expand into the prenatal diagnosis business[220](index=220&type=chunk) [Business Overview](index=72&type=section&id=B.%20Business%20Overview) The company operates three segments: Relaxation Salons, Luxury Beauty, and Digital Preventative Healthcare, with the Relaxation Salon segment being the largest contributor to FY2024 revenue, and aims for growth through network expansion and HealthTech investments Revenue by Business Segment (FY2024 vs FY2023) | Segment | FY2024 Revenue (JPY million) | FY2024 Revenue (%) | FY2023 Revenue (JPY million) | FY2023 Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Relaxation Salon | 7,446 | 89.7% | 6,060 | 88.8% | | Luxury Beauty | 699 | 8.4% | 568 | 8.3% | | Digital Preventative Healthcare | 154 | 1.9% | 200 | 2.9% | - As of **December 31, 2024**, the company's Relaxation Salon Segment had **308 locations** across Japan, primarily in the Tokyo metropolitan area[226](index=226&type=chunk) - The company is expanding its **Digital Preventative Healthcare segment**, which includes the government-sponsored Specific Health Guidance program via its **Lav® app** and the **MOTHER Bracelet®**, a fitness tracker that does not require electric charging[228](index=228&type=chunk)[278](index=278&type=chunk) - A key growth strategy is the sale of company-owned salons to investors, from whom the company then charges management fees; revenue from salon sales accounted for **26.7%** of consolidated revenue in FY2024[234](index=234&type=chunk)[235](index=235&type=chunk) [Organizational Structure](index=121&type=section&id=C.%20Organizational%20Structure) This subsection details the company's principal operating subsidiaries as of December 31, 2024, including their ownership percentages, and outlines a post-year-end reorganization effective January 1, 2025 Principal Operating Subsidiaries as of Dec 31, 2024 | Subsidiary Name | Jurisdiction | Percentage Interest Held | | :--- | :--- | :--- | | Medirom Shared Services Inc. | Japan | 100% | | WING Inc. | Japan | 100% | | JOYHANDS WELLNESS Inc. | Japan | 100% | | Medirom Human Resources Inc. | Japan | 100% | | SAWAN CO. LTD. | Japan | 100% | | ZACC Kabushiki Kaisha | Japan | 100% | | MEDIROM MOTHER Labs Inc. | Japan | 93.73% | - Effective **January 1, 2025**, WING Inc. and Medirom Human Resources Inc. merged, with WING Inc. as the surviving entity, which was renamed **'MEDIROM Wellness Co.'**; JOYHANDS WELLNESS Inc. transferred its spa business to the new entity and was subsequently sold[400](index=400&type=chunk) [Operating and Financial Review and Prospects](index=122&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes the company's financial performance, highlighting a 21.5% revenue increase in FY2024 to ¥8.30 billion, improved net income, and adjusted EBITDA, while addressing significant liquidity concerns and critical accounting estimates [Operating Results](index=133&type=section&id=A.%20Operating%20Results) In FY2024, total revenue increased by 21.5% to ¥8.30 billion, driven by growth in Relaxation Salon and Luxury Beauty segments, despite a decline in Digital Preventative Healthcare, leading to a narrowed operating loss and increased net income and Adjusted EBITDA Consolidated Statement of Operations Highlights (FY2024 vs. FY2023) | Metric (in thousands JPY) | 2024 | 2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **8,299,134** | **6,827,943** | **21.5%** | | Relaxation Salon Revenue | 7,446,200 | 6,059,851 | 22.9% | | Luxury Beauty Revenue | 699,301 | 567,695 | 23.2% | | Digital Preventative Healthcare Revenue | 153,633 | 200,397 | (23.3)% | | **Operating Income (Loss)** | **(18,102)** | **(391,579)** | **95.4%** | | **Net Income** | **138,191** | **115,049** | **20.1%** | | **Adjusted EBITDA** | **417,467** | **306,324** | **36.3%** | - The increase in Relaxation Salon revenue was primarily due to increased sales of salons under the sale-and-outsource business model, which generated **¥2.22 billion** in 2024 compared to **¥1.01 billion** in 2023[446](index=446&type=chunk) - Revenue from the **Digital Preventative Healthcare Segment** decreased primarily due to a temporary suspension of **MOTHER Bracelet®** and Gateway device shipments caused by technological issues[449](index=449&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **14.3%** in 2024, mainly due to higher professional fees, allowance for doubtful accounts, amortization of store operating rights, directors' salaries, and recruiting expenses[457](index=457&type=chunk) [Liquidity and Capital Resources](index=139&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company faces precarious liquidity with ¥329.4 million in cash as of December 31, 2024, and substantial doubt about its going concern ability due to a working capital deficit and negative operating cash flows, necessitating additional capital raising and salon sales - The company's cash and cash equivalents as of **December 31, 2024**, were **¥329.4 million**; management has concluded that **substantial doubt** exists about the company's ability to continue as a **going concern** for at least 12 months[466](index=466&type=chunk)[467](index=467&type=chunk)[468](index=468&type=chunk) Summary of Cash Flows (in thousands JPY) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | (1,331,681) | (631,737) | | Net cash provided by (used in) investing activities | 361,393 | (328,576) | | Net cash provided by financing activities | 1,193,340 | 461,206 | - As of **December 31, 2024**, total indebtedness was **¥1.88 billion**, including **¥1.04 billion** in business loans and **¥800 million** in convertible bonds[75](index=75&type=chunk)[481](index=481&type=chunk)[486](index=486&type=chunk) - The company is in negotiations for financing for its planned acquisition of **70%** of **JGMC**, which is expected to significantly increase interest costs in the future[435](index=435&type=chunk)[436](index=436&type=chunk) [Critical Accounting Estimates](index=147&type=section&id=E.%20Critical%20Accounting%20Estimates) This subsection details key accounting policies requiring significant management judgment and estimation, including revenue recognition for salon sales and franchise fees, lease accounting, impairment of long-lived assets, accounting for acquisitions, and valuation of deferred tax assets - Revenue from the sale of directly-owned salons is **recognized at a point in time** when control is transferred; the company also manages these salons for investors, recognizing management fees over the term of the service agreement[501](index=501&type=chunk)[502](index=502&type=chunk) - Initial franchise fees are recognized as revenue ratably over the expected average contract life of **7-10 years**, as there is a material right related to renewals[504](index=504&type=chunk) - The company assesses impairment of long-lived assets at the individual salon level; in 2024, an impairment loss of **¥22.9 million** was recognized on long-lived assets[517](index=517&type=chunk)[520](index=520&type=chunk) - For acquisitions, the company applies a **screen test** to determine if a transaction is a **business combination or an asset acquisition**, which requires significant judgment[523](index=523&type=chunk) [Directors, Senior Management and Employees](index=159&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's leadership, including executive officers, directors, and corporate auditors, their compensation, stock option plans, and the workforce composition as of December 31, 2024 FY2024 Compensation of Directors and Corporate Auditors | Category | Number of Persons | Total Remuneration (in thousands JPY) | | :--- | :--- | :--- | | Executive directors | 2 | 48,998 | | Outside directors | 2 | 4,200 | | Full-time corporate auditor | 1 | 3,300 | | Outside corporate auditors | 2 | 2,100 | - As of **December 31, 2024**, the company had **436,000** outstanding stock options with a weighted average exercise price of **JPY 1,193 per share**[174](index=174&type=chunk)[552](index=552&type=chunk) - The company has a **Board of Corporate Auditors**, as permitted by Japanese law for corporate governance, instead of an audit committee; this board has a statutory duty to supervise the administration of the company's affairs by the directors[557](index=557&type=chunk)[560](index=560&type=chunk) - As of **December 31, 2024**, the company employed **334 full-time**, **621 part-time**, and **96 fixed-term** employees[568](index=568&type=chunk) [Major Shareholders and Related Party Transactions](index=170&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section details the company's ownership structure, highlighting CEO Kouji Eguchi's significant stake and 'golden share' veto rights, along with various related party transactions including loan guarantees and consulting fees - As of **December 31, 2024**, CEO Kouji Eguchi beneficially owned **22.71%** of the company's common shares and holds a Class A **'golden share'** with special **veto rights**[573](index=573&type=chunk) - CEO Kouji Eguchi is a personal guarantor for five of the company's bank loans, with an outstanding amount of **¥204.1 million** as of **December 31, 2024**[578](index=578&type=chunk) - In **2023**, **COZY LLC**, a company controlled by the CEO, conducted a stock repurchase plan, acquiring **22,543 ADSs** for approximately **¥19.0 million**[581](index=581&type=chunk)[582](index=582&type=chunk) - Consulting fees were paid to entities owned by independent directors Tomoya Ogawa and Akira Nojima, and corporate auditor Osamu Sato, through **March 2023**, after which they began receiving standard director/auditor remuneration[586](index=586&type=chunk)[587](index=587&type=chunk)[588](index=588&type=chunk) [Financial Information](index=176&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section refers to the consolidated financial statements in Item 18, confirms no material legal proceedings, and states the company's policy to retain earnings for business development rather than paying cash dividends - The company is **not currently a party to any material legal proceedings**[594](index=594&type=chunk) - The company does **not intend to pay any cash dividends** in the foreseeable future, planning to retain earnings to finance business development and expansion[595](index=595&type=chunk) [Additional Information](index=178&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section covers supplementary details including the MOTHER Bracelet® development agreement, Japan's FEFTA regulations on foreign investment, and U.S. federal income tax considerations, notably the risk of Passive Foreign Investment Company (PFIC) classification - The company has a development and production agreement with **Matrix Industries, Inc.** for its **MOTHER Bracelet®**, which grants **exclusivity in the Asia territory**; the agreement was extended to **December 31, 2024**, and is under negotiation for further extension[606](index=606&type=chunk) - Under **Japan's Foreign Exchange and Foreign Trade Act (FEFTA)**, direct acquisition of the company's common shares by a 'Foreign Investor' is subject to a **prior filing requirement** due to the company's data processing activities in its Digital Preventative Healthcare Segment[611](index=611&type=chunk) - For U.S. holders, there is a significant risk that the company could be classified as a **Passive Foreign Investment Company (PFIC)**, which could lead to **adverse U.S. federal income tax consequences**; the company's risk of becoming a PFIC has increased due to declines in its ADS market price[632](index=632&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=196&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's exposure to market risks, including interest rate risk on variable debt, foreign currency exchange risk from JPY fluctuations, and credit risk from trade receivables, along with mitigation strategies - As of **December 31, 2024**, the company's bank borrowings totaled **¥1.04 billion**, with **¥295.7 million** being variable rate loans; a **100 basis point** increase in interest rates on these variable loans would increase annual interest expense by **¥719 thousand**[673](index=673&type=chunk) - The company is exposed to foreign currency risk; a hypothetical **10% depreciation** in the value of the Japanese yen against the U.S. dollar would have resulted in a **¥23.7 million** decrease in net income before tax for the year ended **December 31, 2024**[677](index=677&type=chunk) - Credit risk is managed through policies and procedures; the company believes the concentration of risk is **low** as no single customer accounted for **10%** or more of total revenue in FY2022, 2023, or 2024[685](index=685&type=chunk) PART II [Controls and Procedures](index=205&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) This section addresses the ineffectiveness of the company's disclosure controls and internal control over financial reporting due to identified material weaknesses, outlining a remediation plan involving system improvements and enhanced financial team capacity - Management concluded that the company's disclosure controls and procedures were **not effective** as of the end of the period covered by the report[708](index=708&type=chunk) - Several **material weaknesses** in internal control over financial reporting were identified[710](index=710&type=chunk) - Identified material weaknesses include: * **Insufficiency of effective processes** for review and approval of journal entries * **Insufficient management review controls** over key financial information * **Ineffective user access controls**, resulting in **insufficient segregation of duties** * **Ineffective internal controls** over complex or non-routine accounting transactions due to limited personnel and technical expertise[711](index=711&type=chunk) - A **remediation plan** is underway to address these weaknesses, involving system improvements, process streamlining, and enhancing the financial team's capacity with internal and external support[714](index=714&type=chunk) [Miscellaneous](index=207&type=section&id=ITEM%2016.%20MISCELLANEOUS) This section covers governance and compliance, including the company's Board of Corporate Auditors structure, auditor fees, a change in certifying accountant, adherence to Japanese corporate governance as a foreign private issuer, and cybersecurity risk management Principal Accountant Fees (in thousands JPY) | Fee Category | 2024 | 2023 | | :--- | :--- | :--- | | Audit Fees | 101,779 | 93,742 | | Audit-Related Fees | 18,135 | — | | Tax Fees | — | — | | All Other Fees | — | — | - The company, as a **foreign private issuer**, follows **Japanese law** in lieu of certain NASDAQ corporate governance rules, including those related to board independence, audit committee composition, and compensation/nomination committees[725](index=725&type=chunk)[727](index=727&type=chunk) - The company reported a change in its certifying accountant in **December 2024** but states there were **no disagreements** of the type required to be disclosed[723](index=723&type=chunk) - The company has processes to manage cybersecurity risks and did not identify any incidents in FY2024 that materially affected its business, operations, or financial condition[730](index=730&type=chunk)[731](index=731&type=chunk) PART III [Financial Statements](index=214&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section presents the company's audited consolidated financial statements for FY2022-2024, prepared under U.S. GAAP, highlighting the independent auditor's 'Going Concern' issue due to working capital deficiency and the need for additional funding - The independent auditor's report includes an explanatory paragraph expressing **substantial doubt** about the Company's ability to continue as a **going concern** due to a **significant working capital deficiency** and the need to raise additional funds[743](index=743&type=chunk)[750](index=750&type=chunk) Consolidated Balance Sheet Highlights (As of Dec 31) | (in thousands JPY) | 2024 | 2023 | | :--- | :--- | :--- | | Total Current Assets | 2,706,062 | 1,758,704 | | Total Assets | 8,090,671 | 6,849,189 | | Total Current Liabilities | 4,181,481 | 3,560,593 | | Total Liabilities | 6,902,613 | 6,633,228 | | Total Equity | 987,898 | 215,961 | Consolidated Statement of Operations Highlights (Year Ended Dec 31) | (in thousands JPY) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total Revenues | 8,299,134 | 6,827,943 | 6,954,057 | | Operating Income (Loss) | (18,102) | (391,579) | 96,967 | | Net Income | 138,191 | 115,049 | 148,965 | - In **2024**, the company changed its accounting estimate for the useful life of store operating rights from **three to seven years**, which reduced amortization expense by **¥150.7 million** and increased net income by **¥103.6 million**[810](index=810&type=chunk)

Core Viewpoint - MEDIROM Healthcare Technologies Inc. has secured a new unsecured short-term bank loan of JPY350 million (approximately $2.4 million) to strengthen its financial position and support the development of its Mother Bracelet product [1][2]. Financial Summary - The loan amount is JPY350 million, with JPY200 million allocated for repaying debts of MEDIROM Mother Labs Inc., a subsidiary and guarantor of the loan [1]. - The remaining funds will be used for general working capital, including the development of the Mother Bracelet [1]. - The loan carries an interest rate of 1.875% per year [1]. Company Overview - MEDIROM operates 308 relaxation salons across Japan, with its leading brand being Re.Ra.Ku® [5]. - The company entered the health tech sector in 2015 and launched healthcare programs using an on-demand training app called "Lav®" [5]. - In 2020, MEDIROM developed a smart tracker named "MOTHER Bracelet®" and in 2023, it launched REMONY, a remote monitoring system for various industries [5]. - MEDIROM aims to leverage its diverse health-related products and services to collect and manage healthcare data, aspiring to become a leader in big data within the healthcare industry [5].

Core Viewpoint - MEDIROM Healthcare Technologies Inc. has secured a new unsecured short-term bank loan of JPY350 million (approximately $2.4 million) to strengthen its financial position and support the development of its Mother Bracelet product [1][2] Financial Details - The loan amount is JPY350 million, with JPY200 million allocated for repaying debts of MEDIROM Mother Labs Inc., a subsidiary and guarantor of the loan [1] - The remaining funds will be used for general working capital, including the development of the Mother Bracelet [1] - The loan carries an interest rate of 1.875% per year [1] Company Overview - MEDIROM operates 308 relaxation salons across Japan, with its leading brand being Re.Ra.Ku® [6] - The company entered the health tech sector in 2015 and launched healthcare programs using an on-demand training app called "Lav®" [6] - In 2020, MEDIROM developed a smart tracker named "MOTHER Bracelet®" and launched a remote monitoring system called REMONY in 2023 [6] - The company aims to collect and manage healthcare data to become a leader in big data within the healthcare industry [6]

Core Insights - MEDIROM Healthcare Technologies Inc. announced a second investment by Yasuhiro Hayami, Chief Business Officer of MEDIROM Mother Labs Inc., in the Series A financing at a pre-money valuation of JPY9 billion (approximately US$60 million) [1] - This investment follows Mr. Hayami's initial investment in December 2024, indicating his commitment to the company's growth potential and alignment with MEDIROM's corporate philosophy [1] Company Overview - MEDIROM Mother Labs Inc. is a subsidiary of MEDIROM Healthcare Technologies Inc., focusing on the health-tech sector [6] - The company offers the "Specific Health Guidance Program" through the "Lav" health application and has developed the 24/7 recharge-free MOTHER Bracelet, which is a smart tracker [6][8] - The MOTHER Bracelet utilizes innovative technology to generate power based on temperature differences, allowing it to operate without recharging and recording key health metrics [8][9] Executive Background - Yasuhiro Hayami has a diverse career, including roles as Executive Officer at transcosmos inc. and founder of Wise, Inc., before becoming the Chief Business Officer of MEDIROM Mother Labs in 2024 [2][6]

Core Insights - MEDIROM Healthcare Technologies Inc. announced a second investment by Yasuhiro Hayami, Chief Business Officer of MEDIROM Mother Labs Inc., in the Series A financing at a pre-money valuation of JPY9 billion (approximately US$60 million) [1] - This investment follows Mr. Hayami's initial investment in December 2024, indicating his commitment to the company's growth potential and alignment with MEDIROM's corporate philosophy [1] Company Overview - MEDIROM Mother Labs Inc. is a subsidiary of MEDIROM Healthcare Technologies Inc., focusing on the health-tech sector [6] - The company offers the "Specific Health Guidance Program" through the "Lav" health application and has developed the MOTHER Bracelet, a 24/7 recharge-free smart tracker [6][8] - The MOTHER Bracelet utilizes innovative technology to generate power based on temperature differences, allowing it to record key health metrics without the need for recharging [8][9] Executive Background - Yasuhiro Hayami has a diverse career, including roles as Executive Officer at transcosmos inc. and founder of Wise, Inc., before becoming the Chief Business Officer of MEDIROM Mother Labs in 2024 [2][6]