Hello DAO members, this is Miyauchi, Chief Everything Officer!

I am pleased to report our business results from January 2023 to the end of August 2023

*1

Most of the cancellations are based on the large number of cancellations that occurred in February. Since the causes based on cancellations have already been eliminated, we do not expect such a rate to occur in the future.

*2

The SZT allowance is based on the assumption that the amount that users will walk away with in the future is 30% of sales (a figure based on scientific evidence), and not all of it has been paid.

*3

The sales commission is an affiliate commission; it is a very large figure of 47%.

*4

Other general and administrative expenses are very large. These are so-called overhead costs, most of which were incurred during the RENUME period. Since the causes of these costs have already been eliminated, the percentage will not be as high in the future.

*5

It is minus ~700,000 USD. As numbers go, this is an impossible number.

However, as noted above, there were large returns in February and large monthly costs that we have already eliminated, so without them, the figure would have been about 2 million USD higher, resulting in a large surplus.

*6

Even though the P&L figure is negative, the SZT allowance (*2 above) is a non-expenditure cost, so cash and other resources will not be negative.

Concluding Remarks

It has been exactly one year since the service started.

Once again, there have been many twists and turns over the past year, and we have worked through them to get to this point.

The most significant change was the renewal of the management team, which enabled us to become a normal company. My definition of a normal company is a company that has established corporate governance like a publicly listed company and can smoothly perform disclosure.

And next, I was able to stop the chain sales transactions and cancel the related systems. The social oppression caused by chain sales transactions is beyond my imagination, and it became clear to me that this is not a method that should be taken in today's society.

On the other hand, we replaced the commission calculation system in September 2023. Although the replacement has caused some problems, such as the inability to see the organization chart, we do not see this as a problem, as it will be corrected. In addition, we are very optimistic about October and beyond, as our services, including the application, will be renewed and the avatar service will be officially released in October.

Furthermore, we are preparing to register with the Japanese crypto asset exchange and accelerate our global expansion, so we believe that the real competition will begin from now on.

Finally, you are DAO members.

I am working for the DAO members, so please cooperate with me and make sure that you all work cooperatively so that you can enjoy the benefits of being a DAO member.

In case you think that you are a guest! and if you want to act like a big shot, then other DAO members are displeased with your attitude, so please just quit and go elsewhere.

Let's keep up the good work!