Earlyworks Co., Ltd. Reports Financial and Operational Performance for the Six Months Ended October 31, 2024

Financial Performance - For the six months ended October 31, 2024, the Company's revenue increased by approximately JPY 170,039 thousand, reaching approximately JPY 224,984 thousand compared to the same period in 2023 [1][12] - Gross profit increased by approximately JPY 81,193 thousand, while net loss decreased by approximately JPY 74,789 thousand compared to the same period in 2023 [1] - Revenue from software and system development services increased by approximately JPY 212,888 thousand, attributed to the launch of the System Development Kit package for GLS [13] - Revenue from consulting and solution services increased by approximately JPY 6,016 thousand due to collaborations with large Japanese corporations [13] - Revenue from sales of NFTs decreased by approximately JPY 48,865 thousand due to a decline in demand in the NFT market [13] - Cost of revenue increased by approximately JPY 88,846 thousand, primarily due to the significant increase in revenue [14] - Total operating expenses decreased by approximately JPY 37,395 thousand, mainly due to a reduction in general and administrative expenses and research and development expenses [15] Company Developments - The Company was successfully listed on Nasdaq in July 2023, marking a significant milestone [2] - The proprietary blockchain platform, the "Grid Ledger System (GLS)," was completed in December 2023 and has been recognized for its high processing speed by multiple corporate clients [2] - The Company is preparing for a full-scale expansion of services, including system planning, development, consultation, and maintenance across various industries [3] - To accelerate growth in Web3-related businesses, the Company is promoting business alliances and collaborations to enhance GLS's reliability and market competitiveness [4] Organizational Structure - In November 2024, the Company appointed a Chief Operating Officer (COO) to drive business operations and improve sales activities [5] - A Chief Design Officer (CDO) role was established to enhance creative and design capabilities, focusing on user experience for GLS and other technologies [5] - The collaboration between the COO and CDO is expected to enable the execution of business strategies and deliver customer value [6] Financial Position - As of October 31, 2024, the Company had approximately JPY 243,979 thousand in cash and restricted cash, with total shareholders' equity decreasing to approximately JPY 220,559 thousand due to net loss [16] - Total assets as of October 31, 2024, were approximately JPY 380,153,967 [11]