REVENUE

3 Months Ended

Mar. 31, 2026

Note 3 — NET REVENUE

The Company’s net revenue consisted of the following:

Schedule of net revenue
	For the three months ended March 31,
	2025			2026		2026
	JPY			JPY		US$
	(Unaudited)			(Unaudited)		(Unaudited)
Sports school business – Membership		1,561,521,383			1,607,134,512		10,102,681
Sports school business – Events		459,767,644			431,914,954		2,715,080
Sports school business – Others		41,782,114			122,758,128		771,675
Social business		637,650,207			791,351,187		4,974,549
Subtotal		2,700,721,348			2,953,158,781		18,563,985
Add: reversal (provision) of sales refund*		(14,506,941	)		1,165,339		7,326
Total		2,686,214,407			2,954,324,120		18,571,311

For the three months ended
March 31,

2025

2026

JPY

US$

(Unaudited)

Timing of revenue recognition

Transferred over time

2,199,772,706

2,399,651,038

15,084,555

Transferred at a point in time

486,441,701

554,673,082

3,486,756

Total

2,686,214,407

2,954,324,120

18,571,311

*	*Provision and reversal for sales refund*

The “reversal (provision) of sales refund” represents the provision for refund for sports school business services. The refund liability is based on estimates made from past refund historical data. The Company will re-evaluate the provision for refund liability based on the estimates to match the actual claims and expects to make use of the refund liability over the next operating period.

The “reversal of sales refund” represents the release of refund obligations initially recorded under ASC 606-10-55-23 through 55-27 for estimated customer refunds. During the reporting period, certain customers did not exercise their refund rights, and the related refund liabilities were reversed. Such reversals are recognized as an increase in revenue in the period in which the change in estimate occurs, consistent with ASC 606-10-32-14. The amount represents the reversal of previously recognized refund liabilities as certain customer refunds were no longer expected to occur. Such reversals are recorded as an increase to revenue in the period of change in estimate.

Liabilities for refund are included in “Other current liabilities” and were JPY4,932,737 and JPY3,767,398 ($23,682) as of December 31, 2025 and March 31, 2026, respectively.