Exhibit 99.1
LEAD REAL ESTATE CO., LTD
INDEX TO CONSOLIDATED BALANCE SHEETS AND STATEMENTS
OF COMPREHENSIVE LOSS
TABLE OF CONTENTS
| CONTENTS | PAGE(S) | |
| UNAUDITED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF COMPREHENSIVE LOSS | ||
| CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2025 (UNAUDITED) AND JUNE 30, 2025 | F-2 | |
| UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 AND 2024 | F-3 |
F-1
CONSOLIDATED BALANCE SHEETS
(Japanese yen in thousands, except share data)
| December 31,
2025 | June 30, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | ¥ | 1,028,478 | ¥ | 2, 656,860 | ||||
| Accounts receivable, net | 53,262 | 38,523 | ||||||
| Real estate inventory | 15,614,502 | 10,134,739 | ||||||
| Contract assets | 223,241 | 141,418 | ||||||
| Prepaid and other current assets | 622,893 | 381,581 | ||||||
| Total current assets | 17,542,376 | 13,353,121 | ||||||
| Property and equipment, net | 6,528,923 | 5,796,381 | ||||||
| Intangible asset, net | 25,439 | 35,396 | ||||||
| Investments in marketable securities | 60,714 | 25,303 | ||||||
| Right-of-use assets, operating lease, net | 755,336 | 820,786 | ||||||
| Investments | 123,377 | 122,101 | ||||||
| Other assets | 267,131 | 326,746 | ||||||
| Total assets | ¥ | 25,303,296 | ¥ | 20,479,834 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | ¥ | 1,589,024 | ¥ | 1,035,712 | ||||
| Current portion of notes payable | 11,750,370 | 7,599,606 | ||||||
| Contract liabilities | 621,576 | 337,483 | ||||||
| Current portion of operating lease liabilities | 207,317 | 201,313 | ||||||
| Accrued expenses and other current liabilities | 254,853 | 764,920 | ||||||
| Total current liabilities | 14,423,140 | 9,939,034 | ||||||
| Notes payable, net of current portion | 5,486,818 | 4,557,855 | ||||||
| Deferred tax liabilities, net | 135,103 | 89,638 | ||||||
| Operating lease liabilities, net of current portion | 549,347 | 621,962 | ||||||
| Other liabilities | 251,107 | 240,632 | ||||||
| Total liabilities | 20,845,515 | 15,449,121 | ||||||
| COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY | ||||||||
| Ordinary shares, 50,000,000 shares authorized, 15,628,000 shares issued and 13,641,900 shares outstanding as of December 31, 2025 and June 30, 2025, with no stated par value | 1,207,055 | 1,207,055 | ||||||
| Retained earnings | 3,382,455 | 3,965,673 | ||||||
| Treasury stock, at cost, 1,986,100 shares as of December 31, 2025 and June 30, 2025 | (154,121 | ) | (154,121 | ) | ||||
| Non-controlling interest | (8,456 | ) | (8,456 | ) | ||||
| Accumulated translation gain | 30,848 | 20,562 | ||||||
| Total shareholders’ equity | 4,457,781 | 5,030,713 | ||||||
| Total liabilities and shareholders’ equity | ¥ | 25,303,296 | ¥ | 20,479,834 | ||||
F-2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Japanese yen in thousands, except share and per share data)
| Six Months Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue: | ||||||||
| Real estate sales | ¥ | 3,632,226 | ¥ | 4,812,944 | ||||
| Other revenue | 359,794 | 218,905 | ||||||
| Total revenue | 3,992,020 | 5,031,849 | ||||||
| Expenses: | ||||||||
| Cost of sales - real estate | 3,251,366 | 4,309,767 | ||||||
| Cost of sales - other | 318,969 | 125,049 | ||||||
| Selling, general, and administrative | 876,858 | 1,191,386 | ||||||
| Total expenses | 4,447,193 | 5,626,202 | ||||||
| Operating loss | (455,173 | ) | (594,353 | ) | ||||
| Other income (expense): | ||||||||
| Interest expenses | (20,195 | ) | (23,301 | ) | ||||
| Other, net | 49,560 | (8,639 | ) | |||||
| Total other income (expense), net | 29,365 | (31,940 | ) | |||||
| Loss before income taxes | (425,808 | ) | (626,293 | ) | ||||
| Income tax expense (benefit) | 20,990 | (21,980 | ) | |||||
| Net loss | (446,798 | ) | (604,313 | ) | ||||
| Net loss attributable to the noncontrolling interests | - | - | ||||||
| Net loss attributable to ordinary shareholders | (446,798 | ) | (604,313 | ) | ||||
| Foreign currency translation gain (loss) | 10,286 | (276 | ) | |||||
| Total comprehensive loss | ¥ | (436,512 | ) | ¥ | (604,589 | ) | ||
| Loss per share: | ||||||||
| Basic | ¥ | (32.75 | ) | ¥ | (44.32 | ) | ||
| Diluted | ¥ | (32.75 | ) | ¥ | (44.32 | ) | ||
| Weighted average shares outstanding: | ||||||||
| Basic | 13,641,900 | 13,641,900 | ||||||
| Diluted | 13,641,900 | 13,641,900 | ||||||
F-3