WirelessGate : Consolidated Financial Results for the Six Months Ended December 31, 2022 (Under Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Six Months Ended June 30, 2022
		(Based on Japanese GAAP)
				August 10, 2022
Company name:	WirelessGate, Inc.
Stock exchange listing:	Tokyo
Stock code:	9419	URL https://www.wirelessgate.co.jp/
Representative:	Representative Member of the Board and	HAMA NOBUHIRO
CEO
Inquiries:	CFO and Member of the Board, and CAO of	Minoru Harada	TEL [phone]
	the Company
Scheduled date to file Quarterly Securities Report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales			Operating profit	Ordinary profit		Profit attributable to
					owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen		%		Millions of yen		%
Six months ended June 30, 2022	4,277		(17.2)		131		-		79		-			48		-
Six months ended June 30, 2021	5,165		(5.0)		(62)		-		(69)		-			(37)		-
	Earnings per share	Diluted earnings per share
				Yen					Yen
Six months ended June 30, 2022			4.56					-
Six months ended June 30, 2021			(3.50)					-
(2) Consolidated financial position
	Total assets		Net assets		Equity ratio
	Millions of yen		Millions of yen				%
As of June 30, 2022			3,057					941				29.9
As of December 31, 2021			3,036					892				28.5
2. Cash dividends
						Annual dividends per share
	1st quarter-end		2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen		Yen			Yen				Yen			Yen
Year ended December 31, 2021			-		0.00				-				0.00			0.00
Year ending December 31, 2022			-		0.00
Year ending December 31, 2022 (Forecast)										-				0.00			0.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	9,004	(7.9)	200		-	50		-	9		-	0.91

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2022	10,779,774	shares	As of December 31, 2021	10,779,774	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	53,000	shares	As of December 31, 2021	53,000	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	10,726,774	shares	Six months ended June 30, 2021	10,726,774	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	1,360,954	1,498,682
Accounts receivable - trade	831,734	823,675
Merchandise	28,838	54,781
Advance payments to suppliers	6	-
Prepaid expenses	188,697	230,460
Income taxes receivable	1,098	-
Other	14,547	3,696
Allowance for doubtful accounts	(15,065)	(14,923)
Total current assets	2,410,811	2,596,372
Non-current assets
Property, plant and equipment	54,894	46,736
Intangible assets	6,408	4,562
Investments and other assets
Investment securities	418,765	364,332
Long-term prepaid expenses	80,923	449
Long-term accounts receivable - other	190,810	189,560
Deferred tax assets	31,335	11,441
Other	33,838	33,838
Allowance for doubtful accounts	(190,810)	(189,560)
Total investments and other assets	564,862	410,062
Total non-current assets	626,165	461,361
Total assets	3,036,977	3,057,734
Liabilities
Current liabilities
Accounts payable - trade	908,991	848,310
Short-term borrowings	500,000	500,000
Current portion of long-term borrowings	100,008	100,008
Accounts payable - other	504,563	571,400
Income taxes payable	-	17,296
Other	29,058	27,412
Total current liabilities	2,042,622	2,064,427
Non-current liabilities
Long-term borrowings	91,634	41,630
Asset retirement obligations	10,066	10,118
Total non-current liabilities	101,700	51,748
Total liabilities		2,144,322	2,116,176

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		(Thousands of yen)
	As of December 31, 2021	As of June 30, 2022
Net assets
Shareholders' equity
Share capital	908,009	908,009
Capital surplus	1,245,157	1,245,157
Retained earnings	(1,161,224)	(1,112,320)
Treasury shares	(127,657)	(127,657)
Total shareholders' equity	864,285	913,188
Share acquisition rights	28,369	28,369
Total net assets	892,655	941,558
Total liabilities and net assets	3,036,977	3,057,734

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Six months ended	Six months ended
	June 30, 2021	June 30, 2022
Net sales	5,165,064	4,277,235
Cost of sales	3,355,575	2,041,030
Gross profit	1,809,489	2,236,204
Selling, general and administrative expenses	1,872,047	2,104,532
Operating profit (loss)	(62,558)	131,672
Non-operating income
Interest income	1	1
Interest on tax refund	46	40
Reversal of allowance for doubtful accounts	300	1,249
Royalty income	793	-
Subsidy income	-	1,680
Other	334	233
Total non-operating income	1,475	3,204
Non-operating expenses
Interest expenses	5,721	1,286
Share of loss of entities accounted for using equity method	-	47,512
Loss on investments in investment partnerships	1,459	6,919
Amortization of long-term prepaid expenses	1,162	-
Other	73	0
Total non-operating expenses	8,416	55,719
Ordinary profit (loss)	(69,499)	79,157
Extraordinary losses
Loss on retirement of non-current assets	1,359	-
Total extraordinary losses	1,359	-
Profit (loss) before income taxes	(70,858)	79,157
Income taxes - current	1,286	10,359
Income taxes - deferred	4,152	19,893
Total income taxes	5,439	30,253
Profit (loss)	(76,298)	48,903
Profit attributable to
Profit (loss) attributable to owners of parent	(37,571)	48,903
Loss attributable to non-controlling interests	(38,726)	-
Comprehensive income	(76,298)	48,903
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	(37,571)	48,903
Comprehensive income attributable to non-controlling interests	(38,726)	-

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