FINDEX : Notice of Change in a Consolidated Subsidiary

	June 24, 2022
Company:	FINDEX Inc
Representative:	Teruo Aibara, President & CEO
	(Stock code: 3649, TSE Prime)
Contact:	Atsushi Fujita
	Director and Head of Administration
	(TEL: [phone])

Notice of Change in a Consolidated Subsidiary

FINDEX Inc. (the "Company") has been notified of the exercise of stock options (stock acquisition rights) by directors and employees of its consolidated subsidiary, EMC Healthcare Co., Ltd. ("EMCH").

As a result, the Company's shareholding ratio of EMCH will be decreased, and the Company has confirmed that EMCH will be excluded from its consolidated subsidiaries and become an equity method affiliate of the Company.

Even after EMCH becomes an equity-method affiliate, we are committed to working with EMCH as its shareholder to enhance its corporate value.

1. Overview of consolidated subsidiary to be changed

(1)	Company name		EMC Healthcare Co., Ltd.
(2)	Location		Kioi Royalheights 601, 3-29Kioi-choChiyoda-ku Tokyo
(3)	Representative & tittle		Yoshito Date, President & CEO
(4)	Business		Development, sales, consulting, etc. of digital transformation services in
	the healthcare field
(5)	Capital		5 million yen
(6)	Establishment		February 14, 2017
			FINDEX Inc. 53.8%
(7)	Major shareholders		Eagle Matrix Co., Ltd.	43.6%
			Directors and employees of EMCH	2.6%
			Capital			The Company owns 53.8% of the outstanding shares of
					EMCH.
			Personnel			There is a personal relationship such as dispatching a
					director.
(8)	Relationship between the		Business			There are transactions between the Company and EMCH
company and EMCH				related to the supply of information system services to the
		Transaction
				Company's customers and the development and
							maintenance of medical equipment.
			Financial			The company has underwritten a 100 million yen straight
					bond issued by EMCH.
(9)	Recent three-year performance and financial status				(JPY in Thousands)
	Fiscal year					2019			2020	2021
	Net assets					(136,766)		(8,724)	(69,846)
	Total assets					72,486		118,508	70,866
	Net assets per share			(71,868.88)	yen		(4,584.37) yen	(36,703.12) yen
	Revenue					65,839		222,562	57,415
	Operating profit (loss)					(51,528)		123,715	(64,201)
	Ordinary profit (loss)					(51,597)		127,819	(61,051)
	Profit (loss)					(54,552)		128,042	△61,121
	Net income (loss) per share			(28,666.42)	yen		67,284.51 yen	(32,118.75) yen

2. Status of the shares held by the Company before and after the exercise of the stock acquisition rights and the number of stock acquisition rights exercised by directors and employees of subsidiary

	(1)	Number of shares held by the Company	1,023 shares
		before exercise	(Number of voting rights: 1,023）
			(Percentage of voting rights: 53.8%）
	(2)	Number of exercises	2,289
			(Number of shares to be exercised: 2,289 shares）
	(3)	Number of shares held by the Company	1,023shares
		after exercise	(Number of voting rights: 1,023）
			(Percentage of voting rights: 24.4%）
3. Schedule
	(1)	Date of confirmation of the intention to	June 24, 2022
		exercise stock options
	(2)	Date of exercise of stock options by	July 1, 2022
		directors and employees of subsidiary
	(3)	Date of change to equity method affiliate	July 1, 2022

4. Outlook

In accordance with the exercise of stock options, EMCH will change to an equity-method affiliate effective July 1, 2022. This will improve the Company's consolidated operating income by approximately 30 million yen for the fiscal year ending December 31, 2022. The impact of this event on our performance for the fiscal year ending December 31, 2022, is expected to be minimal, but in a timely manner, we will appropriately announce any matters that should be disclosed.