Notice of impairment losses (IFRS)

CYBERDYNE Inc. (the “Company”) announces that it has recorded an impairment loss in its financial results for the second quarter of the fiscal year ending March 31, 2024, as follows.

1. Posting of the impairment loss
In the second quarter of the fiscal year ending March 31, 2024, the Company reviewed the future recoverability of fixed assets such as goodwill of the Group’s consolidated subsidiaries and other assets and recognized impairment losses. As a result, the Company posted impairment losses of ¥660 Million.
The impairment losses will be recorded in other expenses, affecting operating profit (loss).

2. Reason for posting
The Company acquired C2, Inc (“C2”), a developer and operator of the “JUKUSUI” healthcare application for smartphones, in 2021 to expand its business in the healthcare field. Through aggressive investment in advertising after the acquisition, the number of paid service users of “JUKUSUI” has doubled to over 30,000.
However, after reviewing the cost-effectiveness of C2’s advertising investment and its impact on the Company’s consolidated performance, the Board of Directors decided today to reduce the scale of advertising investment to prioritize improving operating profit.
Based on this decision, the Company recorded an impairment loss of ¥660 million for fixed assets, including goodwill and intangible assets, in the consolidated six months ended September 30, 2023, as the Company no longer expects the future earnings by C2 that were initially anticipated upon acquisition.

3. Reason for posting
Please refer to the ” Financial Results for the consolidated six months ended September 30, 2023, ” released today for the impact on financial results.

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