Remixpoint : Consolidated Financial Results for the Three Months Ended June 30, 2020

Disclaimer: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document.

[Summary] Consolidated Financial Results

for the Three Months Ended June 30, 2020

[Japanese GAAP]

August 26, 2020

Company name: Remixpoint, inc.

Stock exchange listing: Tokyo Stock Exchange

Code number: 3825

URL: https://www.remixpoint.co.jp

Representative: Genki Oda, President, CEO and Representative Director

Contact: Yoshihiko Takahashi, Director

Phone: [phone]

Scheduled date of filing quarterly securities report: August 14, 2020

Scheduled date of commencing dividend payments: ―

Availability of supplementary briefing material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: ―

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended June 30, 2020 (April 1, 2020 to June 30, 2020)

(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding period.)
			Net sales		Operating profit		Ordinary profit		Profit attributable to
								owners of parent
Three months ended		Million yen		%	Million yen		%	Million yen		%		Million yen	%
June 30, 2020		2,178		(27.6)		(325)		-		(328)	-			(289)	-
June 30, 2019		3,009		(13.1)		(408)		-		(421)	-			(436)	-
(Note) Comprehensive income: Three months ended June 30, 2020: ¥(289) million [-%]
			Three months ended June 30, 2019: ¥(436) million [-%]
		Basic earnings	Diluted earnings
			per share			per share
Three months ended					Yen				Yen
June 30, 2020					(4.53)				-
June 30, 2019					(7.61)				-
(2) Consolidated Financial Position
			Total assets		Net assets		Equity ratio
					Million yen			Million yen			%
As of June 30, 2020				16,233			4,516			27.6
As of March 31, 2020				14,259			3,870			26.8

(Reference) Equity: As of June 30, 2020: ¥4,486 million As of March 31, 2020: ¥3,825 million

2. Dividends

						Annual dividends
		1st		2nd		3rd	Year-end		Total
		quarter-end		quarter-end		quarter-end
		Yen		Yen		Yen	Yen		Yen
Fiscal year ended March 31, 2020	-		0.00	-		0.00	0.00
Fiscal year ending March 31, 2021	-
Fiscal year ending March 31, 2021				-	-		-	-
(Forecast)

(Note) The forecast of dividends for fiscal year ending March 31, 2021 is currently undetermined.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)

The crypto asset exchange business of the Group's financial business is influenced by economic conditions, market environment related to crypto asset, and trends in the financial market, making it difficult to calculate an appropriate and reasonable financial results forecast. This is due to the extreme lack of clarity at the present time regarding the impact on the Group's business activities and financial position from changes in the operating environment caused by the spread of COVID-19. Looking ahead, we plan to promptly release our consolidated financial results forecast when it becomes possible to carry out the needed calculations.

* Notes:

1. Changes in significant subsidiaries during the three months ended June 30, 2020: No
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: Yes
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
5. Total number of issued shares (common stock)
6. 1. Number of issued shares at the end of the period (including treasury shares):

June 30, 2020: 71,629,300 shares

March 31, 2020: 60,917,600 shares

1. Number of treasury shares at the end of the period: June 30, 2020: 60,000 shares
   March 31, 2020: 60,000 shares
2. Average number of shares during the period:

Three months ended June 30, 2020: 64,011,135 shares

Three months ended June 30, 2019: 57,370,141 shares

• These quarterly financial results are outside the scope of quarterly review by certified public accountants or an audit corporation.
• Explanation of the proper use of financial results forecast and other special notes (Caution regarding forward-looking statements)

In these materials, the consolidated financial results forecast for the fiscal year ending March 31, 2021 is undetermined, and statements herein are based on information that is currently available and certain assumptions deemed reasonable by the Company.

In addition, regarding dividend forecasts for the fiscal year ending March 31, 2021, while currently evaluating and deciding on relevant information on performance trends, etc., the Company will promptly disclose dividend forecasts once they become available.

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

					(Million yen)
			As of March 31, 2020	As of June 30, 2020
	Assets
	Current assets
	Cash and deposits		2,777		1,741
	Accounts receivable - trade	944	926
	Merchandise		341		310
	Real estate for sale in process	116	140
	Users cryptoassets		7,306		8,886
	Owned cryptoassets	432	381
	Guarantee deposits for cryptoassets		169		103
	Cash segregated as deposits		―	1,834
	Guarantee deposits		282		121
	Other	403	355
	Allowance for doubtful accounts		(35)		(40)
	Total current assets		12,739	14,760
	Non-current assets
	Property, plant and equipment	74	77
	Intangible assets
	Software	545	483
	Software in progress		181		301
	Total intangible assets		726	785
	Investments and other assets
	Investment securities	161	184
	Leasehold and guarantee deposits		355		233
	Fixed loan	86	86
	Other		201		191
	Allowance for doubtful accounts	(86)	(86)
	Total investments and other assets		719		609
	Total non-current assets		1,519	1,472
	Total assets		14,259		16,233

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					(Million yen)
			As of March 31, 2020	As of June 30, 2020
	Liabilities
	Current liabilities
	Accounts payable - trade		268		299
	Accounts payable - other	435	324
	Deposits received		1,386		1,535
	Deposits received for cryptoassets	7,306	8,886
	Guarantee deposits received		276		191
	Income taxes payable	50	82
	Loans payable-cryptoassets		569		286
	Provision for loss on business of subsidiaries	11	2
	and associates
	Other		80		108
	Total current liabilities		10,388	11,716
	Total liabilities		10,388		11,716
	Net assets
	Shareholders' equity
	Share capital	4,085	4,561
	Capital surplus		4,107		4,582
	Retained earnings	(4,349)	(4,639)
	Treasury shares		(18)		(18)
	Total shareholders' equity		3,825	4,486
	Share acquisition rights		45		30
	Total net assets		3,870	4,516
	Total liabilities and net assets		14,259		16,233

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1. Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income
   Three Months Ended June 30

					(Million yen)
			Three months ended	Three months ended
			June 30, 2019	June 30, 2020
	Net sales		3,009		2,178
	Cost of sales	2,549	1,798
	Gross profit		459		380
	Selling, general and administrative expenses		867	705
	Operating loss		(408)		(325)
	Non-operating income
	Interest income		0		0
	Dividend income	0	0
	Gain on forfeiture of unclaimed dividends		0		―
	Subsidy income		―	0
	Other		0		0
	Total non-operating income		1	1
	Non-operating expenses
	Interest expenses	0	0
	Issuance cost of subscription rights to shares		3		2
	Share issuance costs	10	1
	Other		0		0
	Total non-operating expenses		13	4
	Ordinary loss		(421)		(328)
	Extraordinary income
	Income insurance		―		61
	Total extraordinary income		―	61
	Extraordinary losses
	Impairment loss	2		―
	Loss on valuation of investments in capital		―		9
	Total extraordinary losses		2	9
	Loss before income taxes		(423)		(277)
	Income taxes - current		21	12
	Income taxes - deferred		(9)		―
	Total income taxes		12	12
	Loss		(436)		(289)
	Loss attributable to owners of parent		(436)	(289)

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Quarterly Consolidated Statements of Comprehensive Income

Three Months Ended June 30

	(Million yen)
Three months ended	Three months ended
June 30, 2019	June 30, 2020

Profit

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling

interests

		(436)		(289)
		(436)		(289)
		(436)		(289)
		－		－

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