3 months ago
11
TOKYO, March 03, 2025 (GLOBE NEWSWIRE) -- Earlyworks Co., Ltd. (NASDAQ: ELWS) (the "Company”), a Japanese provider of blockchain technology solutions, today announced its financial results for the six months ended October 31, 2024.
For the six months ended October 31, 2024, the Company's revenue increased by approximately JPY 170,039 thousand, gross profit increased by approximately JPY 81,193 thousand and net loss decreased by approximately JPY 74,789 thousand, as compared to the same period in 2023.
Management Commentary
In July 2023, the Company was successfully listed on Nasdaq. After years of research and development aimed at improving the applicability for blockchain technology, we completed the development of our proprietary blockchain platform, the "Grid Ledger System (GLS),” in December 2023. The GLS has been acknowledged for its high processing speed by multiple corporate clients.
With our listing and the development of GLS as key milestones, we have gained the opportunity to provide services, including system planning, development, consultation, and maintenance, to clients in a variety of industries, such as telecommunications, transportation infrastructure, food and beverage, real estate, entertainment, and IT services. Centered on GLS, we believe our solutions have the potential to go beyond the traditional contract-based development models, and can serve as the foundation for a business model that closely supports corporate clients and their operations. Currently, we are preparing for a full-scale expansion in this area.
Get the latest news
delivered to your inbox
Sign up for The Manila Times newsletters
By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy.
Additionally, to accelerate the growth of Web3-related businesses in Japan, we are actively promoting business alliances and collaborations in new ventures to expand the adoption of GLS. Through these initiatives, we aim to enhance GLS's reliability and market competitiveness, and deliver greater value to a broader range of customers.
Following our listing, we have also focused on strengthening our organizational structure. In November 2024, we appointed a Chief Operating Officer (COO), responsible for driving our business operations. This appointment improves our ability in sales activities and the creation of new business opportunities leveraging GLS to further expand our business. Simultaneously, we established a Chief Design Officer (CDO) role to enhance our creative and design capabilities. The CDO oversees unified UX and UI design, aiming to elevate the user experience of GLS and other technologies.
Moving forward, we believe the collaboration between the COO and CDO will enable us to execute business strategies and deliver customer value in tandem. Our efforts will extend beyond conventional business models to develop innovative business frameworks powered by GLS. Our ultimate goal is not only to provide cutting-edge technology but also to contribute to the overall development of the Web3 industry and the realization of a sustainable society in collaboration with our corporate clients.
As we strive to drive technological innovation centered on GLS, we aim to strengthen our presence in the Web3 industry and advance as a trusted partner committed to enhancing the value of our corporate clients.
EARLYWORKS CO., LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF OPERATIONS
| For the six months ended October 31,2023 | For the six months ended October 31, 2024 | For the six months
ended October 31, 2024 | ||||||
| JPY | JPY | USD | ||||||
| OPERATING REVENUES | ||||||||
| Software and system development services | 4,812,000 | 217,699,635 | 1,428,944 | |||||
| Consulting and solution services | 1,267,620 | 7,284,000 | 47,811 | |||||
| Sale of NFTs | 48,864,935 | - | - | |||||
| TOTAL OPERATING REVENUES | 54,944,555 | 224,983,635 | 1,476,755 | |||||
| COST OF REVENUES | (3,336,792 | ) | (92,182,568 | ) | (605,071 | ) | ||
| GROSS PROFIT | 51,607,763 | 132,801,067 | 871,684 | |||||
| OPERATING EXPENSES: | ||||||||
| Selling and marketing expenses | (27,077,415 | ) | (37,830,288 | ) | (248,312 | ) | ||
| General and administrative expenses | (200,231,599 | ) | (176,938,483 | ) | (1,161,395 | ) | ||
| Share-based compensation expenses | (1,616,463 | ) | - | - | ||||
| Research and development expenses | (44,821,606 | ) | (21,583,147 | ) | (141,668 | ) | ||
| TOTAL OPERATING EXPENSES | (273,747,083 | ) | (236,351,918 | ) | (1,551,375 | ) | ||
| LOSS FROM OPERATIONS | (222,139,320 | ) | (103,550,851 | ) | (679,691 | ) | ||
| Gain (loss) on digital assets, net | (167,879 | ) | 81,900 | 538 | ||||
| Interest expenses, net | (1,789,278 | ) | (1,184,561 | ) | (7,775 | ) | ||
| Foreign exchange gain (loss), net | 38,823,264 | (6,768,200 | ) | (44,425 | ) | |||
| Government grants | - | 1,255,000 | 8,238 | |||||
| Other income, net | 129,617 | 1,100 | 7 | |||||
| LOSS BEFORE INCOME TAXES | (185,143,596 | ) | (110,165,612 | ) | (723,108 | ) | ||
| Provision for income taxes | ||||||||
| Current | - | - | - | |||||
| Deferred | 188,496 | - | - | |||||
| Total provision for income taxes | 188,496 | - | - | |||||
| NET LOSS | (184,955,100 | ) | (110,165,612 | ) | (723,108 | ) | ||
| LOSS PER SHARE | ||||||||
| Basic | (12.77 | ) | (7.31 | ) | (0.05 | ) | ||
| Diluted | (12.77 | ) | (7.31 | ) | (0.05 | ) | ||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING* | ||||||||
| Basic | 14,478,530 | 15,076,900 | 15,076,900 | |||||
| Diluted | 14,478,530 | 15,076,900 | 15,076,900 | |||||
The accompanying notes are an integral part of these unaudited interim condensed financial statements.
EARLYWORKS CO., LTD.
UNAUDITED INTERIM CONDENSED BALANCE SHEETS
| As of
April 30, 2024 | As of October 31, 2024 | As of
October 31, 2024 | |||||||
| JPY | JPY | USD | |||||||
| (Unaudited) | (Unaudited) | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash | 337,911,102 | 212,493,024 | 1,394,769 | ||||||
| Time deposit | 100,000,000 | - | - | ||||||
| Digital assets | 44,662 | 116,854 | 767 | ||||||
| Accounts receivable, net | 40,711,929 | 28,309,600 | 185,819 | ||||||
| Contract assets | 40,359,303 | 37,233,604 | 244,395 | ||||||
| Prepayments | 8,227,532 | 58,066,704 | 381,140 | ||||||
| Short-term deposits | 3,096,509 | 3,096,509 | 20,325 | ||||||
| Income tax receivable | 325 | - | - | ||||||
| Other current assets, net | 39,600 | 3 | - | ||||||
| TOTAL CURRENT ASSETS | 530,390,962 | 339,316,298 | 2,227,215 | ||||||
| Property and equipment, net | 1,319,884 | 1,085,713 | 7,126 | ||||||
| Operating lease right-of-use assets | 11,711,000 | 7,607,963 | 49,937 | ||||||
| Long-term deposits | 657,740 | 657,740 | 4,317 | ||||||
| Restricted cash | 31,486,253 | 31,486,253 | 206,671 | ||||||
| TOTAL ASSETS | 575,565,839 | 380,153,967 | 2,495,266 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: | |||||||||
| Bank loans - current portion, net | 119,189,500 | 15,807,000 | 103,755 | ||||||
| Other payables and accrued liabilities | 65,573,842 | 73,011,094 | 479,230 | ||||||
| Operating lease liabilities, current | 8,239,009 | 6,911,713 | 45,367 | ||||||
| Contract liabilities | - | 2,404,025 | 15,780 | ||||||
| Deferred income | - | 20,000,000 | 131,277 | ||||||
| TOTAL CURRENT LIABILITIES | 193,002,351 | 118,133,832 | 775,409 | ||||||
| Bank loans - non-current, net |
This website uses cookies. By continuing to browse the website, you are agreeing to our use of cookies. Read More. |
