AnGes : Consolidated Financial Report for the Second Quater 2023

Released on August 9, 2023

Consolidated Financial Report

for the Second Quater 2023 (Unaudited)(Japan GAAP) AnGes, Inc.

https://www.anges.co.jp/en/

Listings: Growth of the Tokyo Stock Exchange, Code 4563

Head Office: 7-7-15,Saito-Asagi, Ibaraki, Osaka, 567-0085, Japan

				(Figures are rounded down to the nearest million yen)
1. Business Results for the Second Quater 2023 (From Jan. 1, 2023 to Jun. 30, 2023)
(1) Results of Operations		(Percentages indicate changes from the same period of the previous fiscal year)
	Revenues	Operating loss	Ordinary loss		Net loss
	Million yen	%	Million yen	%	Million yen	%	Million yen	%
2Q 2023	51	60.7	(5,951)	―	(4,776)	―	(4,830)	―
2Q 2022	31	38.1	(9,124)	―	(7,420)	―	(7,425)	―
*Comprehensive Income	2Q 2023 :	(3,635) million yen	2Q 2022 :	(4,121) million yen

Net loss per share	Diluted net loss
per share
		Yen		Yen
2Q 2023		(26.09)		―
2Q 2022		(48.51)		―
(2) Financial Position
Total assets	Total net assets
Jun. 30, 2023		36,790		27,887
Dec. 31, 2022		38,820		30,425
*Shareholder's equity	Jun. 30, 2023 :	27,767	million yen
		.
2. Dividend
		Dividend per share
1Q		2Q	3Q	4Q
FY 2022	―	0.00	―	0.00
FY 2023	―	0.00

*Change of dividend forecast from the most recent release: None

Shareholders'

equity ratio

75.5

78.1

Dec. 31, 2022 :

30,324 million yen

Full-year

0.00

3. Earnings Forecast for the Fiscal Year 2023 (From Jan. 1, 2023 to Dec. 31, 2023)

							Net loss per share
Full-year	190 183.3	(13,500) ―	(7,500)	―	(7,500)	―	(40.29)
*Change of earnings forecast from the most recent release:	Appricable

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Notes:

1. Change of reporting entities (change of condition of significant consolidated subsidiaries)
2. Accounting procedure peculiar to the quarterly consolidated financial statements
3. Change of significant accounting and reporting policies for consolidated financial statements

1)	Changes caused by revision of accounting standard	:	Applicable
2)	Changes in accounting policies other than 1)	:	None
3)	Changes in accounting estimates		:	None
4)	Restatement		:	None
(4) Number of shares issued and outstanding (common stock)
1)	Number of shares issued and	Jun. 30, 2023	187,223,900	shares	Dec. 31, 2022
	outstanding (including treasury shares)
2)	Number of treasury shares	Jun. 30, 2023		92	shares	Dec. 31, 2022
3)	Average number of shares issued and	2Q 2023	185,101,985	shares	2Q 2022
	outstanding

• None
• None

178,623,900 shares

92 shares

153,073,029 shares

*Performance forecasts or any other future events contained in this report are based on currently available information which are believed to be reasonable at the time of forecasts. Actual results may differ from the forecasts due to various factors.

**This financial report has been translated from Japanese original which has been prepared in accordance with generally accepted accounting principles in Japan, for reference purposes only. Also some changes are added to this report in order to present in a form more familiar to the readers outside Japan.

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AnGes, Inc

Consolidated Balance Sheets (In thousands of yen) (Unaudited)

	December 31,	June 30,
	2022	2023
Assets
Current assets
Cash and deposits	11,035,102	7,766,581
Accounts receivable - trade	9,887	23,147
Finished goods	3,453	105,682
Raw materials and supplies	1,004,996	1,439,792
Advance payments to suppliers	303,436	286,626
Prepaid expenses	91,734	74,882
Consumption taxes refund receivable	392,081	97,954
Other	55,766	50,114
Total current assets	12,896,458	9,844,782
Non-current assets
Property, plant and equipment
Buildings	209,531	218,250
Accumulated depreciation	(128,082)	(131,605)
Buildings, net	81,448	86,644
Tools, furniture and fixtures	71,195	110,258
Accumulated depreciation	(59,941)	(68,833)
Tools, furniture and fixtures, net	11,253	41,424
Right of use asset	1,318,216	1,419,909
Total property, plant and equipment	1,410,919	1,547,979
Intangible assets
Goodwill	23,254,472	23,820,172
Total intangible assets	23,254,472	23,820,172
Investments and other assets
Investment securities	921,573	1,221,475
Leasehold and guarantee deposits	97,969	98,378
Deferred tax assets	158,067	167,919
Other	81,252	90,049
Total investments and other assets	1,258,862	1,577,823
Total non-current assets	25,924,253	26,945,974
Total assets	38,820,711	36,790,757

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AnGes, Inc

Consolidated Balance Sheets (In thousands of yen) (Unaudited)

	December 31,	June 30,
	2022	2023
Liabilities
Current liabilities
Accounts payable - trade	553,252	481,565
Accounts payable - other	590,301	555,314
Accrued expenses	90,094	125,626
Income taxes payable	148,339	95,644
Advances received	5,764,004	6,401,554
Deposits received	16,865	13,908
Lease liabilities	160,743	137,631
Total current liabilities	7,323,600	7,811,244
Non-current liabilities
Deferred tax liabilities	12,416	19,585
Asset retirement obligations	64,317	64,374
Lease liabilities	994,969	1,008,212
Total non-current liabilities	1,071,704	1,092,171
Total liabilities	8,395,304	8,903,416
Net assets
Shareholders' equity
Share capital	35,146,368	34,559,954
Capital surplus	17,467,693	2,929,786
Retained earnings	(27,150,247)	(15,778,037)
Treasury shares	(31)	(31)
Total shareholders' equity	25,463,783	21,711,672
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	19,396	36,876
Foreign currency translation adjustment	4,841,242	6,018,646
Total accumulated other comprehensive income	4,860,639	6,055,522
Share acquisition rights	100,984	120,146
Total net assets	30,425,406	27,887,341
Total liabilities and net assets	38,820,711	36,790,757

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AnGes, Inc

Consolidated Statements of Operations (In thousands of yen)

(Unaudited)

	(From Jan. 1 to Jun.30)
	2022	2023
Business revenues
Net sales of finished goods	3,854	11,575
Commission income	28,032	39,650
Total business revenues	31,886	51,226
Business expenses
Cost of sales	36,733	58,333
Research and development expenses	6,617,164	3,164,114
Selling, general and administrative expenses	2,502,524	2,780,025
Total business expenses	9,156,423	6,002,473
Operating loss	(9,124,536)	(5,951,247)
Non-operating income
Interest income	1,226	7,674
Foreign exchange gains	1,489,712	1,089,771
Subsidy income	202,737	74,256
Commission income	5,112	4,175
Gain on investments in investment partnerships	-	6,511
Miscellaneous income	6,170	0
Total non-operating income	1,704,958	1,182,390
Non-operating expenses
Interest expenses	0	-
Share issuance costs	44	7,770
Loss on investments in investment partnerships	673	-
Total non-operating expenses	718	7,770
Ordinary loss	(7,420,296)	(4,776,627)
Extraordinary losses
Loss on valuation of investment securities	-	1,117
Total extraordinary losses	-	1,117
Loss before income taxes	(7,420,296)	(4,777,745)
Income taxes - current	9,805	54,211
Income taxes - deferred	(4,255)	(1,922)
Total income taxes	5,550	52,289
Loss	(7,425,846)	(4,830,034)
Loss attributable to owners of parent	(7,425,846)	(4,830,034)

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