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2. LIQUIDITY AND GOING CONCERN CONSIDERATIONS The financial statements have been prepared assuming that the Company will continue as a going concern. The Company evaluated whether conditions and events, considered in the aggregate, raise substantial doubt about its ability to continue as a going concern in accordance with Accounting Standards Update (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40). For the six-month period ended March 31, 2026, the Company incurred a net loss of ¥2,593 million and had negative cash flows from operating activities of ¥134.5 million. As of March 31, 2026, the Company had cash and cash equivalents of ¥187.4 million and working capital of ¥248.6 million. In view of these circumstances and the Company’s accumulated losses to date, management concluded that substantial doubt exists about the Company’s ability to continue as a going concern. To alleviate the substantial doubt, management has pursued debt and equity financing opportunities. On July 16, 2026, the Company issued <span id="xdx_906_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20260716__20260716__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__custom--ClassAPreferredSharesMember_z9Gjvlqd6ZX6" title="Number of sold and issued">20,000,000 Class A preferred shares to an institutional investor at $<span id="xdx_906_eus-gaap--SaleOfStockPricePerShare_iI_pid_c20260716__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z0OuHksv18a5" title="Price per share">0.25 per share for gross proceeds of $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOfPreferredStockAndPreferenceStock_pn5n6_c20260716__20260716__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zNmcGsl2qbX8" title="Gross proceeds from sale of stock">5.0 million. Management intends to use the proceeds to fund the Company’s operations and working capital requirements and will continue to seek additional financing as necessary. However, there can be no assurance that additional financing will be available on acceptable terms or at all. If management is unable to execute its plans, there could be a material adverse effect on the Company’s business and financial condition. The financial statements have been prepared on a going concern basis and do not include any adjustments that might result from the outcome of this uncertainty.

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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements are presented in Japanese yen, the currency of the country in which the Company is incorporated and operates. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (the “SEC”). Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and these differences could have a significant impact on the financial statements. The significant accounting estimates include impairment of inventory and property and equipment, incentive compensation expenses, and income taxes. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”) for all periods presented. Consistent with the criteria of ASC 606, the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The consumption tax that the Company collects concurrently with revenue-producing activities is excluded from revenue. The Company recognizes revenue as it satisfies a performance obligation when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Company recognizes revenue based on the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Company is a principal and records revenue on a gross basis when the Company is primarily responsible for fulfilling the obligation, has discretion in establishing pricing and controls the promised goods before transferring those goods or services to customers. The Company derives its revenue mainly from two sources: (1) product equipment, and (2) software as a service (SaaS), maintenance and others. All of the Company’s contracts with customers do not contain cancellable or refund-type provisions. The following is a description of the accounting policy for the principal revenue streams of the Company: Product equipment The Company generally sells the product based on cost plus margin. The Company does not offer discounts, price concessions, or right of return to the customers. Performance obligations are satisfied at a point in time when control of the product is transferred to the customer, which is generally the date on which legal title to the product is transferred to the customer, or the installation is completed. The Company bills customers (i) upon the execution of the contract and (ii) when control of the product is transferred to the customer, and customers generally pay within the same day of each billing. SaaS, maintenance and others The Company provides SaaS, maintenance and other services to the customers. The Company does not offer discounts or price concessions. The only performance obligation is to provide related services stated in the SaaS or maintenance agreements the Company entered into. Fees related to the services are billed and collected monthly. The revenue is recognized over the contract term of up to six years since the customers simultaneously receive and consume the benefits provided by the services over the contract period. Disaggregation of Revenue Revenue is disaggregated among product equipment and SaaS, maintenance and others. Product (software or Wi-Fi equipment): Sales of equipment or software product delivered to the customer for revenue include: “PCWL,” our mesh Wi-Fi devices with PBE installed. These products may be customized based on the customers’ needs. Revenue is recognized at a point in time when our performance obligation is complete and control and ownership of the equipment passes to the customer or upon customer acceptance of the product delivery. The contract to deliver software or physical product equipment can be separated from a service agreement that can be provided to the customer. Customers typically purchase the equipment from the Company and can choose to use the Company’s service plan (i.e., maintenance and/or SaaS) or can have a qualified third party to perform the installation, management and maintenance services separately. The equipment and software are separate performance obligations because the equipment and software can be used separately from the SaaS and/or maintenance plans. Platform service (SaaS), maintenance and others: we provide SaaS services through PicoManager (PM), which is our SaaS platform, and web-based configuration and management, activation and customer service, and asset management. We develop and manage PM ourselves. SaaS platform’s term of use is that our customers use the service over the contract period, and revenue recognition is based on the subscription period. Revenue for maintenance service is recognized when service is rendered, and the fee for such service is invoiced monthly. The Company’s revenue, disaggregated by revenue stream for the six months ended March 31, 2026, 2025, and 2024 was as follows (in thousands): SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20251001__20260331_zcZxgSjYzsRj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20241001__20250331_z78BeWmesl86" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20231001__20240331_zqEboaKCKT15" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Six Months Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--ProductEquipmentMember_z6vfzugt0aEg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Product equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">300,913</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">202,034</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">231,069</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--SaaSMaintenanceAndOthersMember_zBODyQpQ5ny8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">SaaS, maintenance and others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">66,477</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">50,547</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,412</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_zTl6ttVUMcgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenues</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">367,390</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">252,581</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">278,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Operation and Functional Currency The Company’s reporting and functional currency is the Japanese yen and the Company operates in Japan. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that adopt new or revised accounting pronouncements on effective dates for public business entities. Concentration of Credit Risk and Significant Vendors Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains all of its bank accounts at high-quality and accredited financial institutions in Japan. Cash balances in bank accounts in Japan are insured by the Deposit Insurance Corporation of Japan, but may exceed the insured limits of ¥10 million from time to time and could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal risk. The Company has not experienced any losses of such amounts and management believes it is not exposed to any significant credit risk beyond the normal credit risk associated with its cash and cash equivalents. There were 3, 3, and 3 suppliers from whom the purchase of products individually represented greater than 10% of the total purchase from the Company for the six months ended March 31, 2026, 2025, and 2024, respectively. As of March 31, 2026, 2025, and 2024, there were no accounts payable from those suppliers. There were 4, 3, and 3 customers from whom the revenue individually represented greater than 10% of the total revenues of the Company for the six months ended March 31, 2026, 2025, and 2024, respectively. As of March 31, 2026, 2025, and 2024, accounts receivable from those customers accounted for <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20251001__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zv4tNgiOVi69" title="Concentration risk percentage">65%, <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20241001__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_z1KJhX5vGvu" title="Concentration risk percentage">67%, and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20231001__20240331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zcmAeW43stp5" title="Concentration risk percentage">79% of the Company’s total accounts receivable, respectively. Segment Reporting ASC Topic 280, Segment Reporting, operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM has been identified as the Chief Operating Officer (“COO”), who primarily evaluates performance based on the sales results. Segment profitability is measured by net income. The Company only has one operating segment. Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand, demand deposits with financial institutions, and short-term liquid investments with an initial maturity date of three months or less. Accounts Receivable The Company’s accounts receivable consists primarily of receivables from distributors of our products and direct customers, which were recorded in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). The balance is presented net of an allowance for expected credit losses. The Company monitors the financial condition of its contractors and records the allowance for expected credit losses on receivables when it believes that contractors are unable to make their required payments based on relevant information about past events, such as delinquencies and aging trends, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts. The allowance for expected credit loss is the Company’s best estimate of the amount of probable credit losses related to existing accounts receivable. Accounts receivable are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible. As of October 1, 2024, accounts receivable balance was ¥218.0 million. As of March 31, 2026 and September 30, 2025, no allowance for expected credit losses related to accounts receivable was recorded. Inventories Inventories consist of finished goods, raw materials, and work in progress (“WIP”). Inventory is stated at cost unless the carrying amount is determined not to be recoverable, in which case the affected inventory is written down to net realizable value. Inventories include the costs of finished goods, raw materials, work in progress, and direct overhead costs incurred related to the manufacturing. Indirect overhead costs are charged to selling, general, and administrative expenses as incurred. Inventories are carried at the lower of accumulated cost or net realizable value. The Company computes inventory costs on an average cost basis and adjusts for excess and obsolete inventories primarily based on future demand and market conditions, including product specific facts and circumstances that considers the Company’s customer base and an assessment of selling price in relation to product cost. Once written down, a new lower cost basis for that inventory is established. Advance payments Advancement payments represent payments made to certain vendors of raw materials in advance of receiving such raw materials. As of March 31, 2026 and September 30, 2025, advance payments were ¥40.2 million and ¥67.7 million, respectively. Property and equipment, net Property and equipment are measured using the cost model and are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: <p id="xdx_894_ecustom--ScheduleOfEstimatedUsefulLivesOfPropertyAndEquipmentTableTextBlock_zlsEUMxArsY" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in"> SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: left">Property and equipment</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: center">Useful life/Depreciation period</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Machinery and equipment</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zD8nmcYqXJrb" title="Property and equipment useful life">5 - <span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zwLUUhlCgUb6" title="Property and equipment useful life">10 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tools, furniture and fixtures</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolsFurnitureAndFixturesMember__srt--RangeAxis__srt--MinimumMember_zpjDXf7F2chc" title="Property and equipment useful life">2 - <span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolsFurnitureAndFixturesMember__srt--RangeAxis__srt--MaximumMember_zk3jlsUGo0Ol" title="Property and equipment useful life">5 years</td></tr> </table> Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and finite-lived intangible assets are reviewed for impairment whenever events and circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. In making these determinations, the Company uses certain assumptions, including, but not limited to: (i) estimated fair value of the assets; and (ii) estimated undiscounted future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of the asset being used in the Company’s operations, and (iii) estimated residual values. Fair value is determined using various valuation techniques including discounted cash flow models, depreciated replacement cost, quoted market values and third-party independent appraisals, as considered necessary. The Company’s assumptions about future conditions that are important to its assessment of potential impairment of its long-lived assets are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available. There were no impairments of property, equipment and intangible assets during the six months ended March 31, 2026, 2025, and 2024. Other intangible assets, net Intangible assets with finite lives are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of the respective assets. <p id="xdx_898_ecustom--ScheduleOfEstimatedUsefulLivesOfOtherIntangibleAssetsTableTextBlock_zDgbOGtVVpQi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The estimated useful lives of other intangible assets are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF OTHER INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: left">Other intangible assets</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: center">Useful life/Depreciation period</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Software</td><td> </td> <td style="text-align: center"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--SoftwareDevelopmentMember__srt--RangeAxis__srt--MinimumMember_zqdS9c2OoPtf" title="Intangible assets useful life">3 - <span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--SoftwareDevelopmentMember__srt--RangeAxis__srt--MaximumMember_zueO7G2mM8wd" title="Intangible assets useful life">5 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Trademarks</td><td> </td> <td style="text-align: center"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_ztfc8ZYMoyAk" title="Intangible assets useful life">10 years</td></tr> </table> Leases Lessee accounting The Company has leases classified as operating leases for corporate offices in Tokyo and Fukuoka in Japan and in Warsaw in Poland. Assets and liabilities associated with operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the Company’s balance sheets. ROU assets and related lease liabilities associated with operating leases are recognized at the commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. For leases with a term of 12 months or less, the Company makes an accounting policy election by class of underlying assets not to recognize ROU assets and lease liabilities. The Company recognizes lease expenses for such leases on a straight-line basis over the lease term. Modification to existing lease agreements, including changes to the lease term or payment amounts, are reviewed to determine whether they result in a separate contract. For modifications that do not result in a separate contract, management reviews the lease classification and re-measures the related ROU assets and lease liabilities at the effective date of the modification. Lessor accounting The Company enters into non-cancellable sales-type lease agreements for PCWL equipment with a renewal option. There is no purchase option. At the commencement date of the lease agreements, the Company derecognizes the carrying amount of the underlying assets and recognizes the net investment in the lease measured at the present value, discounted using the rate implicit in the lease, of the lease receivable and unguaranteed residual asset. The current portion of net investment in leases is included in accounts receivable-trade, net and the long-term portion of the net investment in the lease is included in other assets on the balance sheets. The Company also recognizes selling profit or selling loss at the commencement date and interest income using the effective interest method over the lease term. Revenue from the sales-type leases is included in revenue from SaaS, maintenance and others and the corresponding cost is included in cost of SaaS, maintenance and others on the statements of operations. Interest income from the sales-type leases is included in interest income (expense) on the statements of operations. The Company elected to exclude the taxes assessed and collected from the lessee from consideration in the contract and from variable payments not included in the consideration in the contract, if applicable. Deferred offering costs Deferred offering costs represent the incremental costs incurred for the Company’s issuance of common shares. These costs are deferred and will be deducted from the gross proceeds of the offering. Deferred offering costs primarily include professional fees related to the offering of common shares. As of March 31, 2026 and September 30, 2025, the deferred offering costs were nil and nil, respectively. Warranty Cost The Company provides a limited warranty for its hardware products, PCWLs, for one year. The Company’s standard warranty requires the Company or its subcontractors to repair or replace defective products during such warranty period at no cost to the customer as far as the damages or defects are not caused by the customer and the claimed defects violate our written product specifications. Warranty costs are charged to cost of revenues as incurred due to immaterial warranty costs. Contract Liabilities Contract liabilities are amounts collected from customers with the execution of the sales contract. Contract liabilities represent advances received on contracts in progress and are recognized as revenue as we provide related services. In the event of contract default or termination, the customer deposit is forfeited and recognized as revenue. <p id="xdx_841_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zxERQCNdewN8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">Stock Based Compensation The Company accounts for stock-based compensation awards in accordance with ASC Topic 718, “Compensation – Stock Compensation.” The cost of services received from employees and non-employees in exchange for awards without performance conditions is recognized in the statements of operations based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite service period or vesting period. The Company recognizes compensation cost for awards with performance conditions if and when the Company concludes that it is probable that the performance condition will be achieved. The Company records forfeitures as they occur. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares, composed of incremental common shares issuable upon the exercise of options in all periods, are included in the computation of diluted net income (loss) per share to the extent such shares are dilutive. In a period in which a loss is incurred, only the weighted average number of common shares issued and outstanding is used to compute the diluted net loss per share, as the inclusion of potential common shares would be anti-dilutive. Cost of Revenues Cost of revenues includes product costs, processing costs, and software costs of each product. Selling, general and administrative expenses Selling, general and administrative expenses consist primarily of directors’ compensations, salaries and allowances, bonuses, welfare expenses, recruitment expenses, travel expenses, advertising expenses, rent, taxes and duties, commission fees, depreciation and amortization, shipping and handling costs, research and development costs and others. Research and development costs incurred were ¥6.3 million, ¥15.1 million, and ¥39.2 million for the six months ended March 31, 2026, 2025, and 2024, respectively. Selling and Commission Costs Sales commissions are paid and expensed based on products closed, if any. Other selling costs are expensed in the period incurred. Advertising Costs Advertising costs are expensed as incurred. Advertising costs were ¥7.7 million, ¥4.4 million, and ¥4.1 million recorded as selling, general and administrative expenses in the statements of operations for the six months ended March 31, 2026, 2025, and 2024, respectively. Income Taxes Income taxes are computed in accordance with the provision of ASC, 740, Income Taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for all future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, operating loss, and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the new legislation is enacted. The Company recognizes the effect of income tax provisions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likelihood of being realized. Changes in recognition and measurement are reflected in the period in which the change in judgement occurs. The Company recognizes deferred tax assets to the extent that these assets are believed to be more likely than not to be realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Tax benefits for uncertain tax positions are based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more likely than not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more likely than not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Effective The Company has reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a material impact on the Company’s financial statements.

Basis of Presentation The accompanying financial statements are presented in Japanese yen, the currency of the country in which the Company is incorporated and operates. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (the “SEC”).

Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and these differences could have a significant impact on the financial statements. The significant accounting estimates include impairment of inventory and property and equipment, incentive compensation expenses, and income taxes.

Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”) for all periods presented. Consistent with the criteria of ASC 606, the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The consumption tax that the Company collects concurrently with revenue-producing activities is excluded from revenue. The Company recognizes revenue as it satisfies a performance obligation when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Company recognizes revenue based on the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Company is a principal and records revenue on a gross basis when the Company is primarily responsible for fulfilling the obligation, has discretion in establishing pricing and controls the promised goods before transferring those goods or services to customers. The Company derives its revenue mainly from two sources: (1) product equipment, and (2) software as a service (SaaS), maintenance and others. All of the Company’s contracts with customers do not contain cancellable or refund-type provisions. The following is a description of the accounting policy for the principal revenue streams of the Company: Product equipment The Company generally sells the product based on cost plus margin. The Company does not offer discounts, price concessions, or right of return to the customers. Performance obligations are satisfied at a point in time when control of the product is transferred to the customer, which is generally the date on which legal title to the product is transferred to the customer, or the installation is completed. The Company bills customers (i) upon the execution of the contract and (ii) when control of the product is transferred to the customer, and customers generally pay within the same day of each billing. SaaS, maintenance and others The Company provides SaaS, maintenance and other services to the customers. The Company does not offer discounts or price concessions. The only performance obligation is to provide related services stated in the SaaS or maintenance agreements the Company entered into. Fees related to the services are billed and collected monthly. The revenue is recognized over the contract term of up to six years since the customers simultaneously receive and consume the benefits provided by the services over the contract period. Disaggregation of Revenue Revenue is disaggregated among product equipment and SaaS, maintenance and others. Product (software or Wi-Fi equipment): Sales of equipment or software product delivered to the customer for revenue include: “PCWL,” our mesh Wi-Fi devices with PBE installed. These products may be customized based on the customers’ needs. Revenue is recognized at a point in time when our performance obligation is complete and control and ownership of the equipment passes to the customer or upon customer acceptance of the product delivery. The contract to deliver software or physical product equipment can be separated from a service agreement that can be provided to the customer. Customers typically purchase the equipment from the Company and can choose to use the Company’s service plan (i.e., maintenance and/or SaaS) or can have a qualified third party to perform the installation, management and maintenance services separately. The equipment and software are separate performance obligations because the equipment and software can be used separately from the SaaS and/or maintenance plans. Platform service (SaaS), maintenance and others: we provide SaaS services through PicoManager (PM), which is our SaaS platform, and web-based configuration and management, activation and customer service, and asset management. We develop and manage PM ourselves. SaaS platform’s term of use is that our customers use the service over the contract period, and revenue recognition is based on the subscription period. Revenue for maintenance service is recognized when service is rendered, and the fee for such service is invoiced monthly. The Company’s revenue, disaggregated by revenue stream for the six months ended March 31, 2026, 2025, and 2024 was as follows (in thousands): SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20251001__20260331_zcZxgSjYzsRj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20241001__20250331_z78BeWmesl86" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20231001__20240331_zqEboaKCKT15" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Six Months Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--ProductEquipmentMember_z6vfzugt0aEg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Product equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">300,913</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">202,034</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">231,069</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--SaaSMaintenanceAndOthersMember_zBODyQpQ5ny8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">SaaS, maintenance and others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">66,477</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">50,547</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,412</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_zTl6ttVUMcgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenues</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">367,390</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">252,581</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">278,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

The Company’s revenue, disaggregated by revenue stream for the six months ended March 31, 2026, 2025, and 2024 was as follows (in thousands): SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20251001__20260331_zcZxgSjYzsRj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20241001__20250331_z78BeWmesl86" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20231001__20240331_zqEboaKCKT15" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Six Months Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--ProductEquipmentMember_z6vfzugt0aEg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Product equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">300,913</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">202,034</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">231,069</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--SaaSMaintenanceAndOthersMember_zBODyQpQ5ny8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">SaaS, maintenance and others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">66,477</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">50,547</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,412</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_zTl6ttVUMcgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenues</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">367,390</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">252,581</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">278,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

300913000

202034000

231069000

66477000

50547000

47412000

367390000

252581000

278481000

Operation and Functional Currency The Company’s reporting and functional currency is the Japanese yen and the Company operates in Japan. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that adopt new or revised accounting pronouncements on effective dates for public business entities.

Concentration of Credit Risk and Significant Vendors Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains all of its bank accounts at high-quality and accredited financial institutions in Japan. Cash balances in bank accounts in Japan are insured by the Deposit Insurance Corporation of Japan, but may exceed the insured limits of ¥10 million from time to time and could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal risk. The Company has not experienced any losses of such amounts and management believes it is not exposed to any significant credit risk beyond the normal credit risk associated with its cash and cash equivalents. There were 3, 3, and 3 suppliers from whom the purchase of products individually represented greater than 10% of the total purchase from the Company for the six months ended March 31, 2026, 2025, and 2024, respectively. As of March 31, 2026, 2025, and 2024, there were no accounts payable from those suppliers. There were 4, 3, and 3 customers from whom the revenue individually represented greater than 10% of the total revenues of the Company for the six months ended March 31, 2026, 2025, and 2024, respectively. As of March 31, 2026, 2025, and 2024, accounts receivable from those customers accounted for <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20251001__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zv4tNgiOVi69" title="Concentration risk percentage">65%, <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20241001__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_z1KJhX5vGvu" title="Concentration risk percentage">67%, and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20231001__20240331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zcmAeW43stp5" title="Concentration risk percentage">79% of the Company’s total accounts receivable, respectively.

10000000

0.65

0.67

0.79

Segment Reporting ASC Topic 280, Segment Reporting, operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM has been identified as the Chief Operating Officer (“COO”), who primarily evaluates performance based on the sales results. Segment profitability is measured by net income. The Company only has one operating segment.

Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand, demand deposits with financial institutions, and short-term liquid investments with an initial maturity date of three months or less.

Accounts Receivable The Company’s accounts receivable consists primarily of receivables from distributors of our products and direct customers, which were recorded in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). The balance is presented net of an allowance for expected credit losses. The Company monitors the financial condition of its contractors and records the allowance for expected credit losses on receivables when it believes that contractors are unable to make their required payments based on relevant information about past events, such as delinquencies and aging trends, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts. The allowance for expected credit loss is the Company’s best estimate of the amount of probable credit losses related to existing accounts receivable. Accounts receivable are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible. As of October 1, 2024, accounts receivable balance was ¥218.0 million. As of March 31, 2026 and September 30, 2025, no allowance for expected credit losses related to accounts receivable was recorded.

218000000.0

Inventories Inventories consist of finished goods, raw materials, and work in progress (“WIP”). Inventory is stated at cost unless the carrying amount is determined not to be recoverable, in which case the affected inventory is written down to net realizable value. Inventories include the costs of finished goods, raw materials, work in progress, and direct overhead costs incurred related to the manufacturing. Indirect overhead costs are charged to selling, general, and administrative expenses as incurred. Inventories are carried at the lower of accumulated cost or net realizable value. The Company computes inventory costs on an average cost basis and adjusts for excess and obsolete inventories primarily based on future demand and market conditions, including product specific facts and circumstances that considers the Company’s customer base and an assessment of selling price in relation to product cost. Once written down, a new lower cost basis for that inventory is established.

Advance payments Advancement payments represent payments made to certain vendors of raw materials in advance of receiving such raw materials. As of March 31, 2026 and September 30, 2025, advance payments were ¥40.2 million and ¥67.7 million, respectively. 40200000 67700000

Property and equipment, net Property and equipment are measured using the cost model and are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: <p id="xdx_894_ecustom--ScheduleOfEstimatedUsefulLivesOfPropertyAndEquipmentTableTextBlock_zlsEUMxArsY" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in"> SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: left">Property and equipment</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: center">Useful life/Depreciation period</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Machinery and equipment</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zD8nmcYqXJrb" title="Property and equipment useful life">5 - <span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zwLUUhlCgUb6" title="Property and equipment useful life">10 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tools, furniture and fixtures</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolsFurnitureAndFixturesMember__srt--RangeAxis__srt--MinimumMember_zpjDXf7F2chc" title="Property and equipment useful life">2 - <span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolsFurnitureAndFixturesMember__srt--RangeAxis__srt--MaximumMember_zk3jlsUGo0Ol" title="Property and equipment useful life">5 years</td></tr> </table>

<p id="xdx_894_ecustom--ScheduleOfEstimatedUsefulLivesOfPropertyAndEquipmentTableTextBlock_zlsEUMxArsY" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in"> SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: left">Property and equipment</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: center">Useful life/Depreciation period</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Machinery and equipment</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zD8nmcYqXJrb" title="Property and equipment useful life">5 - <span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zwLUUhlCgUb6" title="Property and equipment useful life">10 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tools, furniture and fixtures</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolsFurnitureAndFixturesMember__srt--RangeAxis__srt--MinimumMember_zpjDXf7F2chc" title="Property and equipment useful life">2 - <span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolsFurnitureAndFixturesMember__srt--RangeAxis__srt--MaximumMember_zk3jlsUGo0Ol" title="Property and equipment useful life">5 years</td></tr> </table>

P5Y

P10Y

P2Y

P5Y

Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and finite-lived intangible assets are reviewed for impairment whenever events and circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. In making these determinations, the Company uses certain assumptions, including, but not limited to: (i) estimated fair value of the assets; and (ii) estimated undiscounted future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of the asset being used in the Company’s operations, and (iii) estimated residual values. Fair value is determined using various valuation techniques including discounted cash flow models, depreciated replacement cost, quoted market values and third-party independent appraisals, as considered necessary. The Company’s assumptions about future conditions that are important to its assessment of potential impairment of its long-lived assets are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available. There were no impairments of property, equipment and intangible assets during the six months ended March 31, 2026, 2025, and 2024.

Other intangible assets, net Intangible assets with finite lives are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of the respective assets. <p id="xdx_898_ecustom--ScheduleOfEstimatedUsefulLivesOfOtherIntangibleAssetsTableTextBlock_zDgbOGtVVpQi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The estimated useful lives of other intangible assets are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF OTHER INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: left">Other intangible assets</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: center">Useful life/Depreciation period</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Software</td><td> </td> <td style="text-align: center"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--SoftwareDevelopmentMember__srt--RangeAxis__srt--MinimumMember_zqdS9c2OoPtf" title="Intangible assets useful life">3 - <span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--SoftwareDevelopmentMember__srt--RangeAxis__srt--MaximumMember_zueO7G2mM8wd" title="Intangible assets useful life">5 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Trademarks</td><td> </td> <td style="text-align: center"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_ztfc8ZYMoyAk" title="Intangible assets useful life">10 years</td></tr> </table>

<p id="xdx_898_ecustom--ScheduleOfEstimatedUsefulLivesOfOtherIntangibleAssetsTableTextBlock_zDgbOGtVVpQi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The estimated useful lives of other intangible assets are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF OTHER INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: left">Other intangible assets</td><td style="width: 2%; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 49%; font-weight: bold; text-align: center">Useful life/Depreciation period</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Software</td><td> </td> <td style="text-align: center"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--SoftwareDevelopmentMember__srt--RangeAxis__srt--MinimumMember_zqdS9c2OoPtf" title="Intangible assets useful life">3 - <span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--SoftwareDevelopmentMember__srt--RangeAxis__srt--MaximumMember_zueO7G2mM8wd" title="Intangible assets useful life">5 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Trademarks</td><td> </td> <td style="text-align: center"><span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_ztfc8ZYMoyAk" title="Intangible assets useful life">10 years</td></tr> </table>

P3Y

P5Y

P10Y

Leases Lessee accounting The Company has leases classified as operating leases for corporate offices in Tokyo and Fukuoka in Japan and in Warsaw in Poland. Assets and liabilities associated with operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the Company’s balance sheets. ROU assets and related lease liabilities associated with operating leases are recognized at the commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. For leases with a term of 12 months or less, the Company makes an accounting policy election by class of underlying assets not to recognize ROU assets and lease liabilities. The Company recognizes lease expenses for such leases on a straight-line basis over the lease term. Modification to existing lease agreements, including changes to the lease term or payment amounts, are reviewed to determine whether they result in a separate contract. For modifications that do not result in a separate contract, management reviews the lease classification and re-measures the related ROU assets and lease liabilities at the effective date of the modification. Lessor accounting The Company enters into non-cancellable sales-type lease agreements for PCWL equipment with a renewal option. There is no purchase option. At the commencement date of the lease agreements, the Company derecognizes the carrying amount of the underlying assets and recognizes the net investment in the lease measured at the present value, discounted using the rate implicit in the lease, of the lease receivable and unguaranteed residual asset. The current portion of net investment in leases is included in accounts receivable-trade, net and the long-term portion of the net investment in the lease is included in other assets on the balance sheets. The Company also recognizes selling profit or selling loss at the commencement date and interest income using the effective interest method over the lease term. Revenue from the sales-type leases is included in revenue from SaaS, maintenance and others and the corresponding cost is included in cost of SaaS, maintenance and others on the statements of operations. Interest income from the sales-type leases is included in interest income (expense) on the statements of operations. The Company elected to exclude the taxes assessed and collected from the lessee from consideration in the contract and from variable payments not included in the consideration in the contract, if applicable.

Deferred offering costs Deferred offering costs represent the incremental costs incurred for the Company’s issuance of common shares. These costs are deferred and will be deducted from the gross proceeds of the offering. Deferred offering costs primarily include professional fees related to the offering of common shares. As of March 31, 2026 and September 30, 2025, the deferred offering costs were nil and nil, respectively.

Warranty Cost The Company provides a limited warranty for its hardware products, PCWLs, for one year. The Company’s standard warranty requires the Company or its subcontractors to repair or replace defective products during such warranty period at no cost to the customer as far as the damages or defects are not caused by the customer and the claimed defects violate our written product specifications. Warranty costs are charged to cost of revenues as incurred due to immaterial warranty costs. Contract Liabilities Contract liabilities are amounts collected from customers with the execution of the sales contract. Contract liabilities represent advances received on contracts in progress and are recognized as revenue as we provide related services. In the event of contract default or termination, the customer deposit is forfeited and recognized as revenue.

<p id="xdx_841_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zxERQCNdewN8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">Stock Based Compensation The Company accounts for stock-based compensation awards in accordance with ASC Topic 718, “Compensation – Stock Compensation.” The cost of services received from employees and non-employees in exchange for awards without performance conditions is recognized in the statements of operations based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite service period or vesting period. The Company recognizes compensation cost for awards with performance conditions if and when the Company concludes that it is probable that the performance condition will be achieved. The Company records forfeitures as they occur.

Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares, composed of incremental common shares issuable upon the exercise of options in all periods, are included in the computation of diluted net income (loss) per share to the extent such shares are dilutive. In a period in which a loss is incurred, only the weighted average number of common shares issued and outstanding is used to compute the diluted net loss per share, as the inclusion of potential common shares would be anti-dilutive.

Cost of Revenues Cost of revenues includes product costs, processing costs, and software costs of each product.

Selling, general and administrative expenses Selling, general and administrative expenses consist primarily of directors’ compensations, salaries and allowances, bonuses, welfare expenses, recruitment expenses, travel expenses, advertising expenses, rent, taxes and duties, commission fees, depreciation and amortization, shipping and handling costs, research and development costs and others. Research and development costs incurred were ¥6.3 million, ¥15.1 million, and ¥39.2 million for the six months ended March 31, 2026, 2025, and 2024, respectively.

6300000

15100000

39200000

Selling and Commission Costs Sales commissions are paid and expensed based on products closed, if any. Other selling costs are expensed in the period incurred.

Advertising Costs Advertising costs are expensed as incurred. Advertising costs were ¥7.7 million, ¥4.4 million, and ¥4.1 million recorded as selling, general and administrative expenses in the statements of operations for the six months ended March 31, 2026, 2025, and 2024, respectively.

7700000

4400000

4100000

Income Taxes Income taxes are computed in accordance with the provision of ASC, 740, Income Taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for all future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, operating loss, and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the new legislation is enacted. The Company recognizes the effect of income tax provisions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likelihood of being realized. Changes in recognition and measurement are reflected in the period in which the change in judgement occurs. The Company recognizes deferred tax assets to the extent that these assets are believed to be more likely than not to be realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Tax benefits for uncertain tax positions are based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more likely than not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more likely than not of being realized upon settlement with a taxing authority that has full knowledge of all relevant information.

Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Effective The Company has reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a material impact on the Company’s financial statements.

4. SALES-TYPE LEASES AND NET INVESTMENT IN THE LEASE For the six months ended March 31, 2026, 2025, and 2024, the Company recorded revenue from the sales-type leases of nil, nil, and ¥1,104 thousand and the corresponding cost of nil, nil, and ¥129 thousand, respectively. For the six months ended March 31, 2026, 2025, and 2024, the Company recorded interest income of ¥1,309 thousand, ¥1,696 thousand, and ¥1,743 thousand, respectively. The component of its aggregate net investment in leases is as follows (in thousands): SCHEDULE OF NET INVESTMENT IN LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260331_z7lZCMKe3xX4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zMjiBKD8NZi1" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--SalesTypeLeaseLeaseReceivable_iI_pn3n3_maSTLNIzY3z_zhxG0U0wZnkj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Lease receivable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">3,763</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">6,215</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--SalesTypeLeaseUnguaranteedResidualAsset_iI_pn3n3_maSTLNIzY3z_zyRjfA31Zqwe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Unguaranteed residual asset</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--SalesTypeLeaseNetInvestmentInLease_iTI_pn3n3_mtSTLNIzY3z_zLSVq08ivNAg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Net investment in the lease</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,763</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,215</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--SalesTypeLeaseNetInvestmentInLeaseBeforeAllowanceForCreditLossCurrent_iNI_pn3n3_di_zaWhuibY5dDa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,874</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,627</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--SalesTypeLeaseNetInvestmentInLeaseBeforeAllowanceForCreditLossNoncurrent_iI_pn3n3_zzRznYdEITU4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,889</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_890_ecustom--ScheduleOfAnnualMaturitiesOfLeaseUnderSalesTypesLeaseTableTextBlock_z5HXo2tz1Ua" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">As of March 31, 2026, the annual aggregate maturities of lease payments under sales-type leases during each of the next five fiscal years were as follows (in thousands): SCHEDULE OF ANNUAL AGGREGATE MATURITIES OF LEASE PAYMENTS UNDER SALES-TYPE LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Year Ending September 30:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260331__us-gaap--FinancialInstrumentAxis__custom--SalesTypeLeaseMember_zTlIuVlCjUd7" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40B_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueRemainderOfFiscalYear_iI_pn3n3_maLOLLPzw5o_zguVv99zXH59" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 80%">Remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">2,187</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzw5o_zggO4bjzLKv6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,405</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzw5o_zxucDiRAnEll" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,015</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPzw5o_z8v2MChFafI9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">324</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzw5o_zeWGZET0wg5f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total undiscounted lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,931</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_zGjbUoY7Eqg6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: lease amount representing interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,168</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_zlIb4yAtoY6i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net investment in the lease</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,763</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1104000

129000

1309000

1696000

1743000

The component of its aggregate net investment in leases is as follows (in thousands): SCHEDULE OF NET INVESTMENT IN LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260331_z7lZCMKe3xX4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zMjiBKD8NZi1" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--SalesTypeLeaseLeaseReceivable_iI_pn3n3_maSTLNIzY3z_zhxG0U0wZnkj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Lease receivable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">3,763</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">6,215</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--SalesTypeLeaseUnguaranteedResidualAsset_iI_pn3n3_maSTLNIzY3z_zyRjfA31Zqwe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Unguaranteed residual asset</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--SalesTypeLeaseNetInvestmentInLease_iTI_pn3n3_mtSTLNIzY3z_zLSVq08ivNAg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Net investment in the lease</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,763</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,215</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--SalesTypeLeaseNetInvestmentInLeaseBeforeAllowanceForCreditLossCurrent_iNI_pn3n3_di_zaWhuibY5dDa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,874</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,627</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--SalesTypeLeaseNetInvestmentInLeaseBeforeAllowanceForCreditLossNoncurrent_iI_pn3n3_zzRznYdEITU4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,889</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

3763000

6215000

3763000

6215000

1874000

3627000

1889000

2588000

<p id="xdx_890_ecustom--ScheduleOfAnnualMaturitiesOfLeaseUnderSalesTypesLeaseTableTextBlock_z5HXo2tz1Ua" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">As of March 31, 2026, the annual aggregate maturities of lease payments under sales-type leases during each of the next five fiscal years were as follows (in thousands): SCHEDULE OF ANNUAL AGGREGATE MATURITIES OF LEASE PAYMENTS UNDER SALES-TYPE LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Year Ending September 30:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260331__us-gaap--FinancialInstrumentAxis__custom--SalesTypeLeaseMember_zTlIuVlCjUd7" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40B_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueRemainderOfFiscalYear_iI_pn3n3_maLOLLPzw5o_zguVv99zXH59" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 80%">Remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">2,187</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzw5o_zggO4bjzLKv6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,405</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzw5o_zxucDiRAnEll" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,015</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPzw5o_z8v2MChFafI9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">324</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzw5o_zeWGZET0wg5f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total undiscounted lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,931</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_zGjbUoY7Eqg6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: lease amount representing interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,168</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_zlIb4yAtoY6i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net investment in the lease</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,763</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 2187000

2405000

1015000

324000

5931000

2168000

3763000

5. INVENTORIES Inventories consist of finished goods, raw materials, and WIP. WIP includes the cost of the developed product as well as all the direct costs incurred to manufacture the product. The cost of the product is calculated on an average cost basis. Inventories consisted of the following as of March 31, 2026 and September 30, 2025 (in thousands): SCHEDULE OF INVENTORIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20260331_zgdUnwIANvYg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zVdxgOO0UYB8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryRawMaterialsAndSupplies_iI_pn3n3_maINzvZy_zCf2D26mVWO3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Raw materials</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">41,151</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">41,391</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--InventoryWorkInProcess_iI_pn3n3_maINzvZy_zrdy8iZ30Vkh" style="vertical-align: bottom; background-color: White"> <td>WIP</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">162,938</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">213,409</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzvZy_zdwHTHHEAF6c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Finished goods</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">20,928</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,486</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryNet_iTI_pn3n3_mtINzvZy_zQbx9VCg4Zr6" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">225,017</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right"> 264,286</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Inventories consisted of the following as of March 31, 2026 and September 30, 2025 (in thousands): SCHEDULE OF INVENTORIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20260331_zgdUnwIANvYg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zVdxgOO0UYB8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryRawMaterialsAndSupplies_iI_pn3n3_maINzvZy_zCf2D26mVWO3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Raw materials</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">41,151</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">41,391</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--InventoryWorkInProcess_iI_pn3n3_maINzvZy_zrdy8iZ30Vkh" style="vertical-align: bottom; background-color: White"> <td>WIP</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">162,938</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">213,409</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzvZy_zdwHTHHEAF6c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Finished goods</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">20,928</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,486</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryNet_iTI_pn3n3_mtINzvZy_zQbx9VCg4Zr6" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">225,017</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right"> 264,286</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

41151000

41391000

162938000

213409000

20928000

9486000

225017000

264286000

6. PREPAID EXPENSES AND OTHER CURRENT ASSETS <p id="xdx_891_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zzLbAZFlg3Qe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">Prepaid expenses and other current assets as of March 31, 2026 and September 30, 2025 consisted of the following (in thousands): SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20260331_zqr2fXn0MuIe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zoh9pWnPSkWf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--PrepaidExpenseCurrent_iI_pn3n3_maPEAOAzK8F_zhqLdMxeRnRc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Prepaid expenses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">23,136</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">17,047</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--ConsumptionTaxReceivable_iI_pn3n3_maPEAOAzK8F_zkyIEZZPjr95" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consumption tax receivable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,734</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--RefundOfTaxesAndPublicDues_iI_pn3n3_maPEAOAzK8F_zih5eF5DIHf6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Refund of taxes and public dues</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">89</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OtherAssetsCurrent_iI_pn3n3_maPEAOAzK8F_zNvqz6FwhBf2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">155</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">109</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pn3n3_mtPEAOAzK8F_zp4H1aK4v1Dl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,291</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">44,979</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<p id="xdx_891_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zzLbAZFlg3Qe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">Prepaid expenses and other current assets as of March 31, 2026 and September 30, 2025 consisted of the following (in thousands): SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20260331_zqr2fXn0MuIe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zoh9pWnPSkWf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--PrepaidExpenseCurrent_iI_pn3n3_maPEAOAzK8F_zhqLdMxeRnRc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Prepaid expenses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">23,136</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">17,047</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--ConsumptionTaxReceivable_iI_pn3n3_maPEAOAzK8F_zkyIEZZPjr95" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consumption tax receivable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,734</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--RefundOfTaxesAndPublicDues_iI_pn3n3_maPEAOAzK8F_zih5eF5DIHf6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Refund of taxes and public dues</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">89</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OtherAssetsCurrent_iI_pn3n3_maPEAOAzK8F_zNvqz6FwhBf2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">155</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">109</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pn3n3_mtPEAOAzK8F_zp4H1aK4v1Dl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,291</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">44,979</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

23136000

17047000

27734000 89000

155000

109000

23291000

44979000

7. PROPERTY AND EQUIPMENT, NET In the six months ended March 31, 2026, 2025, and 2024, the Company disposed of its property and equipment and incurred disposal loss of nil, nil, and ¥28 thousand, respectively. As of March 31, 2026 and September 30, 2025, property and equipment consisted of the following (in thousands): SCHEDULE OF PROPERTY AND EQUIPMENT, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Life (years)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260331_zUB91Uss73k5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zleAsJwWCom8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--MachineryAndEquipmentGross_iI_pn3n3_maPPAENz9l1_zD8XYfHTcQel" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Machinery and equipment</td><td style="width: 2%"> </td> <td style="width: 18%; text-align: center"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zCN2os4SdCwd" title="Useful lives">5 – <span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zRfplXRUaTkh" title="Useful lives">10</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">2,565</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">2,565</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FurnitureAndFixturesGross_iI_pn3n3_maPPAENz9l1_zFI9Q2U6XlF" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tools, furniture, and fixtures</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember__srt--RangeAxis__srt--MinimumMember_z3kOE4lqW9ra" title="Useful lives">2 – <span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember__srt--RangeAxis__srt--MaximumMember_z5kRxZJiTnLe" title="Useful lives">5</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">96,068</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95,738</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PropertyPlantAndEquipmentOther_iI_pn3n3_maPPAENz9l1_zGq34lotxS8i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Vehicles</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">7</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">700</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">700</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENz9l1_z6hO4Kt9P8A4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(82,745</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(71,911</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENz9l1_zLQqnjwYJzMj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,092</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company recorded depreciation expense on property and equipment of ¥10.8 million, ¥10.1 million, and ¥7.4 million for the six months ended March 31, 2026, 2025, and 2024, respectively. The Company records depreciation expense in selling, general, and administrative expenses and cost of revenue on the statements of operations.

-28000

As of March 31, 2026 and September 30, 2025, property and equipment consisted of the following (in thousands): SCHEDULE OF PROPERTY AND EQUIPMENT, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Life (years)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260331_zUB91Uss73k5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zleAsJwWCom8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--MachineryAndEquipmentGross_iI_pn3n3_maPPAENz9l1_zD8XYfHTcQel" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Machinery and equipment</td><td style="width: 2%"> </td> <td style="width: 18%; text-align: center"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zCN2os4SdCwd" title="Useful lives">5 – <span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zRfplXRUaTkh" title="Useful lives">10</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">2,565</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">2,565</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FurnitureAndFixturesGross_iI_pn3n3_maPPAENz9l1_zFI9Q2U6XlF" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tools, furniture, and fixtures</td><td> </td> <td style="text-align: center"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember__srt--RangeAxis__srt--MinimumMember_z3kOE4lqW9ra" title="Useful lives">2 – <span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember__srt--RangeAxis__srt--MaximumMember_z5kRxZJiTnLe" title="Useful lives">5</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">96,068</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95,738</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PropertyPlantAndEquipmentOther_iI_pn3n3_maPPAENz9l1_zGq34lotxS8i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Vehicles</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">7</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">700</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">700</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENz9l1_z6hO4Kt9P8A4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(82,745</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(71,911</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENz9l1_zLQqnjwYJzMj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,092</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

P5Y

P10Y

2565000

P2Y

P5Y

96068000

95738000

P7Y

700000

82745000

71911000

16588000

27092000

10800000

10100000

7400000

8. OTHER INTANGIBLE ASSETS, NET The components of intangible assets as of March 31, 2026 and September 30, 2025 were as follows (in thousands): SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20260331_zO67Z5IL3JM8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zZVCGenBYNZ" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Intangible assets subject to amortization:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CapitalizedComputerSoftwareGross_iI_maFLIANzk4F_znhxRWLg0wY" style="vertical-align: bottom; background-color: White"> <td style="width: 60%">Software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">7,578</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">18,272</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedTrademarksGross_iI_maFLIANzk4F_ztaofwEK7Ua6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Trademark</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">500</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_di_msFLIANzk4F_znwZjM8IkALh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,845</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(13,651</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzk4F_maOIANzbdK_zPXyMJ52OItf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Net carrying amount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,233</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,121</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Intangible assets not subject to amortization:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_maOIANzbdK_z24KnGCUsvib" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Software in progress</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,225</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">42,330</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IntangibleAssetsNetIncludingGoodwill_iTI_mtOIANzbdK_zk9TlyWQfHb2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">50,458</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">47,451</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The aggregate amortization expense was ¥1.9 million, ¥1.8 million, and ¥1.9 million for the six months ended March 31, 2026, 2025, and 2024, respectively. As of March 31, 2026 and September 30, 2025, the straight-line amortization period for internal-use software and trademarks was <span id="xdx_906_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--SoftwareMember__srt--RangeAxis__srt--MinimumMember_zTTdnA5kybIj" title="Useful lives">3 to <span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--SoftwareMember__srt--RangeAxis__srt--MaximumMember_zIvyXemYUj62" title="Useful lives">5 years and 10 years, respectively. There was no impairment loss recognized on intangible assets for the six months ended March 31, 2026, 2025, and 2024. <p id="xdx_89E_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zZ0dVd525cOk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The estimated aggregate amortization expense for other intangible assets for the next five years and thereafter is as follows: SCHEDULE OF AMORTIZATION EXPENSE FOR OTHER INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20260331_zlsIIoQWhGM5" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Thousands of Yen</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Years ending September 30:</td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_maFLIANzOpK_z5Dop0NxDWAf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; width: 80%">Remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">1,832</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzOpK_zyVefCy56tB5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,214</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzOpK_z0sg76NC9Iz8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">125</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzOpK_zsnezWUoNbd6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzOpK_z8nndF5jkqi6" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_maFLIANzOpK_zuzB7EKfpBk9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzOpK_zRFCQY0kIGI5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,233</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

The components of intangible assets as of March 31, 2026 and September 30, 2025 were as follows (in thousands): SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20260331_zO67Z5IL3JM8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zZVCGenBYNZ" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Intangible assets subject to amortization:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CapitalizedComputerSoftwareGross_iI_maFLIANzk4F_znhxRWLg0wY" style="vertical-align: bottom; background-color: White"> <td style="width: 60%">Software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">7,578</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">18,272</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedTrademarksGross_iI_maFLIANzk4F_ztaofwEK7Ua6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Trademark</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">500</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_di_msFLIANzk4F_znwZjM8IkALh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,845</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(13,651</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzk4F_maOIANzbdK_zPXyMJ52OItf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Net carrying amount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,233</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,121</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Intangible assets not subject to amortization:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_maOIANzbdK_z24KnGCUsvib" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Software in progress</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">47,225</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">42,330</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IntangibleAssetsNetIncludingGoodwill_iTI_mtOIANzbdK_zk9TlyWQfHb2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">50,458</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">47,451</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

7578000

18272000

500000

4845000

13651000

3233000

5121000

47225000

42330000

50458000

47451000

1900000

1800000

1900000

P3Y

P5Y

P10Y

<p id="xdx_89E_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zZ0dVd525cOk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The estimated aggregate amortization expense for other intangible assets for the next five years and thereafter is as follows: SCHEDULE OF AMORTIZATION EXPENSE FOR OTHER INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20260331_zlsIIoQWhGM5" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Thousands of Yen</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Years ending September 30:</td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_maFLIANzOpK_z5Dop0NxDWAf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; width: 80%">Remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">1,832</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzOpK_zyVefCy56tB5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,214</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzOpK_z0sg76NC9Iz8" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">125</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzOpK_zsnezWUoNbd6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzOpK_z8nndF5jkqi6" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_maFLIANzOpK_zuzB7EKfpBk9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzOpK_zRFCQY0kIGI5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,233</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1832000

1214000

125000

50000

12000

3233000

9. OTHER ASSETS Other assets as of March 31, 2026 and September 30, 2025 consisted of the following (in thousands): SCHEDULE OF OTHER ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20260331_zW1lRLofRFb2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zDaQNay5OiSl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_400_ecustom--NetInvestmentInLeaseOtherNonCurrent_iI_maOANzam4_zYPxJAC0LND5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Net investment in the lease</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">1,889</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">2,588</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--GuaranteeDepositsOtherNonCurrent_iI_maOANzam4_zFTbekCnRaqg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Guarantee deposits(a)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,407</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,407</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--InvestmentInSecurityOtherNonCurrent_iI_maOANzam4_zY5Q6kFLKkAj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Investment in security(b)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PrepaidExpenseNoncurrent_iI_maOANzam4_ziFulyjyECRc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses (non-current)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">202</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">202</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--OtherNonCurrent_iI_maOANzam4_zeeogqRfQok2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OtherAssetsNoncurrent_iTI_mtOANzam4_ziW11xE5Y0Od" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,508</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,206</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(a)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Guarantee deposits represent deposit paid to lessors in connection with lease agreements.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(b)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Investment in security represents an investment in a non-public company for which fair value is not readily determinable. Investment in security is accounted for using the measurement alternative in accordance with ASC 321-10-35-2. For the six months ended March 31, 2026, 2025, and 2024, no upward or downward adjustments have been recorded as the Company did not identify any observable price changes in orderly transactions for any identical or similar investment of the same issuer.</td></tr> </table>

Other assets as of March 31, 2026 and September 30, 2025 consisted of the following (in thousands): SCHEDULE OF OTHER ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20260331_zW1lRLofRFb2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250930_zDaQNay5OiSl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_400_ecustom--NetInvestmentInLeaseOtherNonCurrent_iI_maOANzam4_zYPxJAC0LND5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Net investment in the lease</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">1,889</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">2,588</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--GuaranteeDepositsOtherNonCurrent_iI_maOANzam4_zFTbekCnRaqg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Guarantee deposits(a)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,407</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,407</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--InvestmentInSecurityOtherNonCurrent_iI_maOANzam4_zY5Q6kFLKkAj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Investment in security(b)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PrepaidExpenseNoncurrent_iI_maOANzam4_ziFulyjyECRc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses (non-current)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">202</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">202</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--OtherNonCurrent_iI_maOANzam4_zeeogqRfQok2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OtherAssetsNoncurrent_iTI_mtOANzam4_ziW11xE5Y0Od" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,508</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,206</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(a)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Guarantee deposits represent deposit paid to lessors in connection with lease agreements.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(b)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Investment in security represents an investment in a non-public company for which fair value is not readily determinable. Investment in security is accounted for using the measurement alternative in accordance with ASC 321-10-35-2. For the six months ended March 31, 2026, 2025, and 2024, no upward or downward adjustments have been recorded as the Company did not identify any observable price changes in orderly transactions for any identical or similar investment of the same issuer.</td></tr> </table>

1889000 2588000 4407000 4407000 3000000 3000000

202000

10000 9000

9508000

10206000

10. CONTRACT LIABILITIES As of March 31, 2026 and September 30, 2025, the contract liabilities balance was ¥189,025 thousand and ¥195,039 thousand, respectively. <p id="xdx_89C_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_z1P0HuI6aNB7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">Significant changes in the contract liabilities balances for the six months ended March 31, 2026, 2025, and 2024 were as follows (in thousands): SCHEDULE OF CONTRACT LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251001__20260331_ztvMBy8qjank" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241001__20250331_z6frrF0c51Eg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20231001__20240331_zOn109c9vyI7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Six Months Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--ContractWithCustomerLiability_iS_pn3n3_zDVD6v7I7kwa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Beginning balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">195,039</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">153,477</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">78,170</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ContractWithCustomerLiabilityChangeInTimeframePerformanceObligationSatisfiedRevenueRecognized_pn3n3_zo8RMRYw89ug" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Reclassification of the beginning contract liabilities to revenue, as a result of performance obligations satisfied</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32,805</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(23,367</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(15,018</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_ecustom--CashReceivedInAdvanceAndNotRecognizedAsRevenue_pn3n3_z7fCuGHxxojc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Cash received in advance and not recognized as revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,791</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35,046</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">45,828</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_z8zYLfRpMLef" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Net change in contract liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,014</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">11,679</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">30,810</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--ContractWithCustomerLiability_iE_pn3n3_zFHbtEy5sTi7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">189,025</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">165,156</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">108,980</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

189025000

195039000

<p id="xdx_89C_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_z1P0HuI6aNB7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">Significant changes in the contract liabilities balances for the six months ended March 31, 2026, 2025, and 2024 were as follows (in thousands): SCHEDULE OF CONTRACT LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251001__20260331_ztvMBy8qjank" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241001__20250331_z6frrF0c51Eg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20231001__20240331_zOn109c9vyI7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Six Months Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--ContractWithCustomerLiability_iS_pn3n3_zDVD6v7I7kwa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Beginning balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">195,039</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">153,477</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">78,170</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ContractWithCustomerLiabilityChangeInTimeframePerformanceObligationSatisfiedRevenueRecognized_pn3n3_zo8RMRYw89ug" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Reclassification of the beginning contract liabilities to revenue, as a result of performance obligations satisfied</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32,805</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(23,367</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(15,018</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_ecustom--CashReceivedInAdvanceAndNotRecognizedAsRevenue_pn3n3_z7fCuGHxxojc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Cash received in advance and not recognized as revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,791</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35,046</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">45,828</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_z8zYLfRpMLef" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Net change in contract liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,014</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">11,679</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">30,810</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--ContractWithCustomerLiability_iE_pn3n3_zFHbtEy5sTi7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">189,025</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">165,156</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">108,980</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

195039000

153477000

78170000

-32805000

-23367000

-15018000

26791000 35046000 45828000

-6014000

11679000

30810000

189025000

165156000

108980000

<p id="xdx_801_eus-gaap--AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock_zaaUJYr1TcYg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES <p id="xdx_890_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zXVsmYblviY9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">Accrued expenses and other current liabilities consisted of the following as of March 31, 2026 and September 30, 2025 (in thousands): SCHEDULE OF ACCRUED AND OTHER CURRENT LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260331_zd0X4lfONgs9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20250930_zQCzEqFtVnzj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--AccountsPayableOtherCurrent_iI_pn3n3_maAPAOAzYtX_zWirGC7mAKe8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Other accounts payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">31,492</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">34,634</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maAPAOAzYtX_zyBYviRTZUa9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">109,397</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90,126</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccruedVacationCurrent_iI_pn3n3_maAPAOAzYtX_zd2miRydWNoh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued vacation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,970</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,785</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--SalesAndExciseTaxPayableCurrent_iI_pn3n3_maAPAOAzYtX_z7bIvKUYlIc4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued consumption Taxes (VAT)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,707</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DepositLiabilityCurrent_iI_pn3n3_maAPAOAzYtX_zTEo3GQqU1pj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deposits received</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,441</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,744</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OtherLiabilitiesCurrent_iI_pn3n3_maAPAOAzYtX_zkTcHxftw9Eh" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,102</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccountsPayableAndOtherAccruedLiabilitiesCurrent_iTI_pn3n3_mtAPAOAzYtX_zFhX6VihPMr3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">184,109</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">139,291</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<p id="xdx_890_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zXVsmYblviY9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">Accrued expenses and other current liabilities consisted of the following as of March 31, 2026 and September 30, 2025 (in thousands): SCHEDULE OF ACCRUED AND OTHER CURRENT LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260331_zd0X4lfONgs9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20250930_zQCzEqFtVnzj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--AccountsPayableOtherCurrent_iI_pn3n3_maAPAOAzYtX_zWirGC7mAKe8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Other accounts payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">31,492</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 16%; text-align: right">34,634</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maAPAOAzYtX_zyBYviRTZUa9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">109,397</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90,126</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccruedVacationCurrent_iI_pn3n3_maAPAOAzYtX_zd2miRydWNoh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued vacation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,970</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,785</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--SalesAndExciseTaxPayableCurrent_iI_pn3n3_maAPAOAzYtX_z7bIvKUYlIc4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued consumption Taxes (VAT)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,707</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DepositLiabilityCurrent_iI_pn3n3_maAPAOAzYtX_zTEo3GQqU1pj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deposits received</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,441</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,744</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OtherLiabilitiesCurrent_iI_pn3n3_maAPAOAzYtX_zkTcHxftw9Eh" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,102</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccountsPayableAndOtherAccruedLiabilitiesCurrent_iTI_pn3n3_mtAPAOAzYtX_zFhX6VihPMr3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">184,109</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">139,291</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

31492000

34634000

109397000

90126000

8970000

9785000

11707000

10441000

4744000

12102000

2000

184109000

139291000

12. BORROWINGS The Company’s borrowings are from financial institutions in Japan and used for working capital and other general corporate purposes. Debt issuance costs related to these borrowings are immaterial and expensed as incurred. Borrowings consisted of the following as of March 31, 2026 (in thousands): SCHEDULE OF BORROWINGS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Original Amount Borrowed</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Loan Duration</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Annual Interest Rate</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 34%">Lender 1</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">36,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="text-align: center; width: 16%"> 3/10/2026-7/10/2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">3.35</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">36,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Lender 2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 6/27/2025-3/29/2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.43</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,882</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Lender 3</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 8/29/2025-8/31/2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,607</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Aggregate outstanding principal balances</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">69,489</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: current portion and short-term borrowings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(69,489</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left">Long-term portion of borrowings</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Borrowings consisted of the following as of September 30, 2025 (in thousands): <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Original Amount Borrowed</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Loan Duration</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Annual Interest Rate</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Amount</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 34%">Lender 1</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">90,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="text-align: center; width: 16%">2/20/2025-2/20/2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">5.50</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">37,500</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Lender 2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">77,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center">6/11/2025-10/11/2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.10</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">77,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Lender 3</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 7/31/2025-11/30/2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.10</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Lender 4</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 6/27/2025-3/29/2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.18</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">31,328</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Lender 5</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 8/29/2025-8/31/2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,548</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Aggregate outstanding principal balances</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">272,376</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: current portion and short-term borrowings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(261,940</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left">Long-term portion of borrowings</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,436</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The weighted average interest rate on short-term borrowings outstanding as of March 31, 2026 and September 30, 2025 was 3.65% and 3.63%, respectively. The Company entered into a line of credit agreement with a financial institution with a credit limit of ¥<span id="xdx_90C_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn6n6_c20240131__us-gaap--TypeOfArrangementAxis__custom--LineOfCreditAgreementMember_z7qzgTlRA417" title="Line of credit facility, maximum amount">200 million during the period of February 17, 2023 to January 31, 2024. The agreement is automatically renewed for successive one-year terms until the Company cancels the agreement. There are no commitment fees to maintain the line of credit agreement. As of March 31, 2026 and September 30, 2025, the Company had an unused line of credit of ¥<span id="xdx_903_eus-gaap--LineOfCreditFacilityRemainingBorrowingCapacity_iI_pn6n6_c20260331__us-gaap--TypeOfArrangementAxis__custom--LineOfCreditAgreementMember__us-gaap--FinancialInstrumentAxis__us-gaap--UnusedLinesOfCreditMember_zjAJzRRernt4" title="Unused line of credit">164 million and ¥<span id="xdx_90D_eus-gaap--LineOfCreditFacilityRemainingBorrowingCapacity_iI_pn6n6_c20250930__us-gaap--TypeOfArrangementAxis__custom--LineOfCreditAgreementMember__us-gaap--FinancialInstrumentAxis__us-gaap--UnusedLinesOfCreditMember_zI6RObIGBqZj" title="Unused line of credit">24 million, respectively. The Company had unpaid guaranty fees to Hiroshi Furukawa, the Company’s then chief executive officer (“CEO”) and representative director, of <span id="xdx_90B_eus-gaap--AccountsPayableAndOtherAccruedLiabilities_iI_dxL_c20260331__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_z93VoLW62hA8" title="Accrued expenses and other current liabilities::XDX::-">nil and <span id="xdx_904_eus-gaap--AccountsPayableAndOtherAccruedLiabilities_iI_dxL_c20250930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_zx9yHrJpAG0h" title="Accrued expenses and other current liabilities::XDX::-">nil in accrued expenses and other current liabilities as of March 31, 2026 and September 30, 2025, respectively. The Company recorded guaranty fees to Hiroshi Furukawa of <span id="xdx_907_eus-gaap--OtherNonoperatingIncomeExpense_dxL_c20251001__20260331__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_zIo1NEpJYcs1" title="Other non-operating income (expenses)::XDX::-">nil, ¥0.1 million, and <span id="xdx_90E_eus-gaap--OtherNonoperatingIncomeExpense_dxL_c20231001__20240331__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_zFPdo4VHdno8" title="Other non-operating income (expenses)::XDX::-">nil in other non-operating income (expenses) on the statements of operations for the six months ended March 31, 2026, 2025, and 2024, respectively. As of March 31, 2026, the annual aggregate maturities of borrowing during each of the next five fiscal years were as follows (in thousands): SCHEDULE OF ANNUAL AGGREGATE MATURITIES OF BORROWING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20260331_zCtDUroTkez" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Amount</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pn3n3_maLTDz3Rd_z0vmpt108iEb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 84%">Remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">59,053</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pn3n3_maLTDz3Rd_zQwN8rg6dOhj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">2027</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,436</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iTI_pn3n3_mtLTDz3Rd_zyoi4EXeYn5f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total borrowings</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">69,489</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Borrowings consisted of the following as of March 31, 2026 (in thousands): SCHEDULE OF BORROWINGS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Original Amount Borrowed</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Loan Duration</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Annual Interest Rate</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 34%">Lender 1</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">36,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="text-align: center; width: 16%"> 3/10/2026-7/10/2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">3.35</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">36,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Lender 2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 6/27/2025-3/29/2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.43</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,882</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Lender 3</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 8/29/2025-8/31/2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,607</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Aggregate outstanding principal balances</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">69,489</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: current portion and short-term borrowings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(69,489</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left">Long-term portion of borrowings</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Borrowings consisted of the following as of September 30, 2025 (in thousands): <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Original Amount Borrowed</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Loan Duration</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Annual Interest Rate</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Amount</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 34%">Lender 1</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">90,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="text-align: center; width: 16%">2/20/2025-2/20/2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">5.50</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">37,500</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Lender 2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">77,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center">6/11/2025-10/11/2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.10</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">77,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Lender 3</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 7/31/2025-11/30/2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.10</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Lender 4</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 6/27/2025-3/29/2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.18</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">31,328</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Lender 5</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> 8/29/2025-8/31/2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,548</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Aggregate outstanding principal balances</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">272,376</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: current portion and short-term borrowings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(261,940</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left">Long-term portion of borrowings</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,436</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

36000000

2026-03-10

2026-07-10

0.0335

36000000

40000000

2025-06-27

2027-03-29

0.0243

20882000

30000000

2025-08-29

2026-08-31

0.0450

12607000

69489000

90000000

2025-02-20

2026-02-20

0.0550

37500000

77000000

2025-06-11

2025-10-11

0.0310

77000000

99000000

2025-07-31

2025-11-30

0.0310

99000000

40000000

2025-06-27

2027-03-29

0.0218

31328000

30000000

2025-08-29

2026-08-31

0.0450

27548000

272376000

261940000

10436000

0.0365

0.0363

200000000

164000000

24000000

100000

As of March 31, 2026, the annual aggregate maturities of borrowing during each of the next five fiscal years were as follows (in thousands): SCHEDULE OF ANNUAL AGGREGATE MATURITIES OF BORROWING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20260331_zCtDUroTkez" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Amount</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_pn3n3_maLTDz3Rd_z0vmpt108iEb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 84%">Remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 12%; text-align: right">59,053</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_pn3n3_maLTDz3Rd_zQwN8rg6dOhj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">2027</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,436</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iTI_pn3n3_mtLTDz3Rd_zyoi4EXeYn5f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total borrowings</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">69,489</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

59053000

10436000

69489000

13. BONDS On October 16, 2023, the Company entered into convertible bond agreements for the aggregate amount of ¥299,997 thousand at par with two third-party investors for working capital. The convertible bonds bore interest of 10% per annum and had an original maturity date of October 15, 2024. The bonds were convertible to common shares between November 30, 2023 and October 15, 2024 at a conversion price of ¥96 per common share. On August 30, 2024, the convertible bond agreements were amended and the maturity on the convertible bonds was extended from October 15, 2024 to October 15, 2025, with the renewed interest rate of 15% per annum bearing from October 16, 2024. The convertible bonds’ rights to convert to common shares were amended and expired on August 30, 2024.

299997000

0.10

2024-10-15

The bonds were convertible to common shares between November 30, 2023 and October 15, 2024 at a conversion price of ¥96 per common share.

the convertible bond agreements were amended and the maturity on the convertible bonds was extended from October 15, 2024 to October 15, 2025, with the renewed interest rate of 15% per annum bearing from October 16, 2024.

0.15

14. COMMITMENTS AND CONTINGENCIES Contingencies In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with third parties, including vendors, customers, investors, and the Company’s directors and officers. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred in connection with its activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. The Company is subject to claims or proceedings from time to time relating to the products and other aspects of its product operations. Management believes that these claims include usual obligations incurred in the normal course of business. In the opinion of management, these matters will not have a material effect on the Company’s financial condition, results of operations or cash flows. Borrowings The Company has borrowings that are primarily made under general agreements. Refer to “Note 12. Borrowings” for information about future debt payments. Legal Matters From time to time in the normal course of business, the Company may be a party to various legal matters, such as threatened or pending claims or proceedings. There were no such material matters as of March 31, 2026 and September 30, 2025 and for the six months ended March 31, 2026, 2025, and 2024. Lease Obligations Operating Leases The Company entered into non-cancellable operating lease agreements for corporate offices and recognized rent expenses on a straight-line basis over the term of the lease. None of the amounts disclosed below for these leases contain variable payments or residual value guarantees. Operating lease costs included in selling, general and administrative expense in the Company’s statements of operations totaled ¥<span id="xdx_90F_eus-gaap--OperatingLeaseCost_pn5n6_c20251001__20260331__us-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingGeneralAndAdministrativeExpense_z6AZL8wUvPvb" title="Operating lease cost">4.8 million, ¥<span id="xdx_908_eus-gaap--OperatingLeaseCost_pn5n6_c20241001__20250331__us-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingGeneralAndAdministrativeExpense_zxiBbj5hjO5d" title="Operating lease cost">5.6 million, and ¥<span id="xdx_905_eus-gaap--OperatingLeaseCost_pn5n6_c20231001__20240331__us-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingGeneralAndAdministrativeExpense_zuM708Hw1sm9" title="Operating lease cost">5.5 million for the six months ended March 31, 2026, 2025, and 2024, respectively. Weighted-average discount rate was <span id="xdx_907_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_c20260331__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zHzVaI68Adgj" title="Weighted average discount percentage">2.96% and <span id="xdx_902_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_dp_c20250930__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zy9yI3ueYpy3" title="Weighted average discount percentage">3.01% as of March 31, 2026 and September 30, 2025, respectively. Weighted-average remaining lease term was <span id="xdx_900_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20260331__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_z1muEmCmWXcg" title="Weighted average remaining lease term">0.9 years and <span id="xdx_906_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20250930__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zyIJIRc65VT5" title="Weighted average remaining lease term">1.2 years as of March 31, 2026 and September 30, 2025, respectively. Cash paid for amounts included in the measurement of lease liabilities for operating leases during the six months ended March 31, 2026, 2025, and 2024 was ¥<span id="xdx_901_eus-gaap--OperatingLeasePayments_pn5n6_c20251001__20260331__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zr5Mu2OrWly7" title="Cash paid for operating lease liabilities">4.6 million, ¥<span id="xdx_902_eus-gaap--OperatingLeasePayments_pn5n6_c20241001__20250331__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zI7vnCgJFuRe" title="Cash paid for operating lease liabilities">5.6 million, and ¥<span id="xdx_90D_eus-gaap--OperatingLeasePayments_pn5n6_c20231001__20240331__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_z3mGnWLEEuNg" title="Cash paid for operating lease liabilities">5.5 million, respectively. Lease liabilities arising from obtaining right-of-use assets during the six months ended March 31, 2026, 2025, and 2024 were <span id="xdx_90F_eus-gaap--RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability_dxL_c20251001__20260331__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zwCiAQFo00c4" title="Lease liabilities arising from obtaining right-of-use::XDX::-">nil, ¥<span id="xdx_90F_eus-gaap--RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability_pn5n6_c20241001__20250331__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_zZWFVbTYVt3e" title="Lease liabilities arising from obtaining right-of-use">8.1 million, and ¥<span id="xdx_907_eus-gaap--RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability_pn5n6_c20231001__20240331__us-gaap--TypeOfArrangementAxis__custom--OperatingLeaseAgreementMember_z4bzYIHjbqnf" title="Lease liabilities arising from obtaining right-of-use">3.4 million, respectively. The Company did not have any significant lease contracts that had not yet commenced as of March 31, 2026. The following table (in thousands) presents the operating lease related assets and liabilities recorded on the Company’s balance sheets as of March 31, 2026 and September 30, 2025: SCHEDULE OF OPERATING LEASE ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260331_z46ZsiWlFo15" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20250930_zY2zkeD83Hn4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_ecustom--OperatingLeaseRightofuseAssetsNoncurrent_iI_pn3n3_maOLROUzkx4_zQhId3WaAQb6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Right-of-use assets</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">¥</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">5,324</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">¥</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">9,975</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseRightOfUseAsset_iTI_pn3n3_mtOLROUzkx4_zOE5Qsj4ZIKj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total operating lease assets</td><td> </td> <td style="text-align: left">¥</td><td style="text-align: right">5,324</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">¥</td><td style="text-align: right">9,975</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pn3n3_maOLLzVnk_zL7W54kgkXIl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease liabilities – current</td><td> </td> <td style="text-align: left">¥</td><td style="text-align: right">4,428</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">¥</td><td style="text-align: right">7,387</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pn3n3_maOLLzVnk_zGMRT8tMy9Pl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Operating lease liabilities – non-current</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">249</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,795</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_mtOLLzVnk_zxaUzEuCYVg2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,677</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,182</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_892_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zlRTZztT3e04" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The table below shows the future minimum payments under non-cancelable operating leases as of March 31, 2026 (in thousands): SCHEDULE OF FUTURE MINIMUM PAYMENT UNDER NON CANCELABLE OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Years Ending September 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20260331_zCRKjrK0HEH3" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Operating Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_maLOLLPzv3P_zowXraItEfYl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 82%">Remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">2,926</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzv3P_zlprK5M5h1z5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,811</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzv3P_z24YBZRzX4E2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,737</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_zbE6f8FS59Pb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: lease amount representing interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(60</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--OperatingLeaseLiability_iI_pn3n3_zNSlTfN2XR59" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,677</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4800000

5600000

5500000

0.0296

0.0301

P0Y10M24D

P1Y2M12D

4600000

5600000

5500000

8100000

3400000

The following table (in thousands) presents the operating lease related assets and liabilities recorded on the Company’s balance sheets as of March 31, 2026 and September 30, 2025: SCHEDULE OF OPERATING LEASE ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260331_z46ZsiWlFo15" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20250930_zY2zkeD83Hn4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_ecustom--OperatingLeaseRightofuseAssetsNoncurrent_iI_pn3n3_maOLROUzkx4_zQhId3WaAQb6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Right-of-use assets</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">¥</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">5,324</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">¥</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">9,975</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseRightOfUseAsset_iTI_pn3n3_mtOLROUzkx4_zOE5Qsj4ZIKj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total operating lease assets</td><td> </td> <td style="text-align: left">¥</td><td style="text-align: right">5,324</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">¥</td><td style="text-align: right">9,975</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pn3n3_maOLLzVnk_zL7W54kgkXIl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease liabilities – current</td><td> </td> <td style="text-align: left">¥</td><td style="text-align: right">4,428</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">¥</td><td style="text-align: right">7,387</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pn3n3_maOLLzVnk_zGMRT8tMy9Pl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Operating lease liabilities – non-current</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">249</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,795</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_mtOLLzVnk_zxaUzEuCYVg2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total operating lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,677</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,182</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 5324000 9975000

5324000

9975000

4428000

7387000

249000

1795000

4677000

9182000

<p id="xdx_892_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zlRTZztT3e04" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The table below shows the future minimum payments under non-cancelable operating leases as of March 31, 2026 (in thousands): SCHEDULE OF FUTURE MINIMUM PAYMENT UNDER NON CANCELABLE OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Years Ending September 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20260331_zCRKjrK0HEH3" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Operating Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_maLOLLPzv3P_zowXraItEfYl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 82%">Remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 14%; text-align: right">2,926</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzv3P_zlprK5M5h1z5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,811</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzv3P_z24YBZRzX4E2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,737</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_zbE6f8FS59Pb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: lease amount representing interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(60</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--OperatingLeaseLiability_iI_pn3n3_zNSlTfN2XR59" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,677</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2926000

1811000

4737000

60000

4677000

15. EQUITY As of March 31, 2026 and September 30, 2025, the Company had 16,615,220 and 4,615,224 common shares authorized. Each holder of a common share is entitled to one vote for each share held as of the record date and is entitled to receive dividends, when, as and if declared by the shareholders’ meeting or the board of directors of the Company. The number of total common shares outstanding was 4,153,805 and 1,153,806 as of March 31, 2026 and September 30, 2025, respectively. PicoCELA is subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the Companies Act that affect financial and accounting matters are summarized below: Common shares Under the Companies Act, issuances of common shares are required to be credited to the common shares account for at least <span id="xdx_90A_ecustom--GrossProceedPercentageAdditionalPaidInCaptial_iI_pid_dp_c20260331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zYDgx4vWcIT" title="Proceed from additional paid in captial percentage">50% of the proceeds and to the additional paid-in capital account for the remaining amounts. On July 8, 2024, Class A preferred shares of<span id="xdx_906_eus-gaap--ConversionOfStockSharesConverted1_pid_c20240708__20240708__us-gaap--StatementClassOfStockAxis__custom--ClassAPreferredSharesMember_zc1KHnyQ92C7" title="Conversion of preferred stock"> 120,000 units, Class B preferred shares of <span id="xdx_905_eus-gaap--ConversionOfStockSharesConverted1_pid_c20240708__20240708__us-gaap--StatementClassOfStockAxis__custom--ClassBPreferredSharesMember_zHEirO2rxHD9" title="Conversion of preferred stock">252,000 units, and Class C preferred shares of <span id="xdx_90E_eus-gaap--ConversionOfStockSharesConverted1_pid_c20240708__20240708__us-gaap--StatementClassOfStockAxis__custom--ClassCPreferredSharesMember_zB3U4voV2fgi" title="Conversion of preferred stock">132,670 units were converted into common shares of 527,324 units with no gain or loss recognized when the conversion occurred. On January 17, 2025, the Company completed its initial public offering (“IPO”) on the Nasdaq Capital Market under the symbol of “PCLA” and raised ¥773,806 thousand upon the sale of 1,750,000 common shares, in the form of American Depositary Shares (“ADSs”). Out of net proceeds of ¥406,502 thousand, after deducting the deferred offering costs of ¥367,304 thousand, ¥386,903 thousand was credited to the common shares account and ¥19,599 thousand was credited to additional paid-in capital. During the six months ended March 31, 2026, in accordance with restricted common share compensation agreements, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20251001__20260331__srt--TitleOfIndividualAxis__custom--MrHiroshiFurukawaMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zYUoGo6qMAf1" title="Number of restricted shares issued">1,666,666 common shares to Hiroshi Furukawa, the Company’s then CEO and representative director, and <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20251001__20260331__srt--TitleOfIndividualAxis__custom--MrHideakiHorikiriMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zLmvgRCOu3Qh">1,333,333 shares to Hideaki Horikiri, the Company’s then chief financial officer (“CFO”) and director in consideration for services rendered. The agreements prohibit any sale, transfer, loan or pledge of shares for a period of 20 years from the date of grant. However, the prohibition may be canceled by a resolution of the Company’s board of directors. Class A preferred shares In the event of distribution of residual assets upon dissolution of the Company, the Company shall pay to the Class A preferred shareholders as equally as to Class B and C preferred shareholders, prior to common shareholders, an amount equal to the contributed amount. At any time, Class A preferred shares are convertible into the Company’s common shares at a certain conversion price. Class A preferred shares contain terms that change the conversion prices as disclosed below. On July 8, 2024, Class A preferred shares of 120,000 units were converted into common shares of <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_pid_c20240708__20240708__us-gaap--StatementClassOfStockAxis__custom--ClassAPreferredSharesMember_zObfLsPl2eEd" title="Common shares issued upon conversion">120,000 units at a conversion price of ¥<span id="xdx_907_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_uJPYShares_c20240708__us-gaap--StatementClassOfStockAxis__custom--ClassAPreferredSharesMember_zJaSYJd21rdg" title="Conversion price">2,499.90 per share. On July 17, 2024, at the Extraordinary Shareholders Meeting, the Company’s shareholders approved a resolution to amend the articles of incorporation to eliminate Class A preferred shares. Class B preferred shares In the event of distribution of residual assets upon dissolution of the Company, the Company shall pay to the Class B preferred shareholders as equally as to Class A and C preferred shareholders, prior to common shareholders, an amount equal to the contributed amount. At any time, Class B preferred shares are convertible into the Company’s common shares at a certain conversion price. Class B preferred shares contain terms that change the conversion prices as disclosed below. On July 8, 2024, Class B preferred shares of 252,000 units were converted into common shares of <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_c20240708__20240708__us-gaap--StatementClassOfStockAxis__custom--ClassBPreferredSharesMember_zEJczDc1cli8" title="Common shares issued upon conversion">265,544 units at a conversion price of ¥<span id="xdx_905_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_uJPYShares_c20240708__us-gaap--StatementClassOfStockAxis__custom--ClassBPreferredSharesMember_zFTJ2IF67YR" title="Conversion price">4,745.10 per share. On July 17, 2024, at the Extraordinary Shareholders Meeting, the Company’s shareholders approved a resolution to amend the articles of incorporation to eliminate Class B preferred shares. Class C preferred shares In the event of distribution of residual assets upon dissolution of the Company, the Company shall pay to the Class C preferred shareholders as equally as to Class A and B preferred shareholders, prior to common shareholders, an amount equal to the contributed amount. At any time, Class C preferred shares are convertible into the Company’s common shares at a certain conversion price. Class C preferred shares contain terms that change the conversion prices as disclosed below. On July 8, 2024, Class C preferred shares of 132,670 units were converted into common shares of<span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_pid_c20240708__20240708__us-gaap--StatementClassOfStockAxis__custom--ClassCPreferredSharesMember_zSCbqLpEFoSh" title="Common shares issued upon conversion"> 141,780 units at a conversion price of ¥<span id="xdx_901_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_uJPYShares_c20240708__us-gaap--StatementClassOfStockAxis__custom--ClassCPreferredSharesMember_zkN1Alp6gGbc" title="Conversion price">6,945.00 and ¥<span id="xdx_901_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_uJPYShares_c20240708__us-gaap--StatementClassOfStockAxis__custom--ClassCPreferredSharesMember__srt--RangeAxis__srt--MaximumMember_znb1it1MNHCd" title="Conversion price">7,500.00. On July 17, 2024, at the Extraordinary Shareholders Meeting, the Company’s shareholders approved a resolution to amend the articles of incorporation to eliminate Class C preferred shares. Terms that change the conversion prices of Class A, B and C preferred shares Class A, B and C preferred shares contain a feature that requires the conversion price to be adjusted in the following events. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(a)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In the event of a stock split of common shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(b)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In the event of a reverse stock split of common shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(c)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In the event that the Company issues common shares or disposes of common shares held by the Company for an amount lower than the conversion price before adjustment</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(d)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In the event that the Company issues or disposes of shares, stock acquisition rights (including those attached to bonds with stock acquisition rights) or other securities, or shares, stock acquisition rights or other securities that may be acquired by the Company in exchange for the delivery of common shares of the Company at a price lower than the amount to be paid for such shares, stock acquisition rights, or other securities</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(e)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In the event of the issuance of stock acquisition rights (including Common Shares or shares to be acquired in exchange for delivery of Common Shares or shares that may be requested to be acquired by the Company) that would result in the issue price per share (the amount obtained by dividing the amount paid for the issuance of stock acquisition rights plus the amount of assets to be contributed upon exercise by the number of shares of the Company to be delivered upon exercise; the same shall apply hereinafter) issued upon exercise of the stock acquisition rights (including the case of gratis allotment) being less than the conversion price before adjustment</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(f)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In the events of merger, share exchange, share transfer, corporate capital, or reduction in the amount of capital</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">(g)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In the event that causes or may cause a change in the number of outstanding common shares of the Company (excluding a change caused by the number of common shares of the Company held by the Company)</td></tr> </table> Capital reduction Under the Companies Act, the Company is allowed to transfer the amounts of common shares, additional paid-in capital, and accumulated deficit among the balances of these equity accounts under certain conditions upon resolution of the shareholders. Dividends Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon a resolution approved at the shareholders’ meeting. The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to the shareholders, subject to certain limitations and additional requirements. Semi-annual interim dividends may also be paid once a year upon a resolution approved by the board of directors, if the articles of incorporation of the company stipulate so. The Companies Act provides certain limitations on the amounts available for dividends or the purchase of treasury stocks. The limitation is defined as the amount available for distribution to the shareholders, but the amount of net assets after the payment dividends must be maintained at the level that is not below ¥3 million. Increases/decreases and transfer of common shares, reserve, and surplus The Companies Act requires that an amount equal to 10% of dividends must be appropriated as legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity account charged upon the payment of such dividends until the total of the aggregate amount of legal reserve and additional paid-in capital equals 25% of common share. Under the Companies Act, the total amount of additional paid-in capital and legal reserve may be reduced without limitation. The Companies Act also provides that common share, legal reserve, additional paid-in capital, other capital surplus and retained earnings may be transferred among the accounts under certain conditions upon resolution of the shareholders. Upon resolution of shareholders at the extraordinary shareholders’ general meeting held on February 24, 2026, additional paid-in capital was offset against an accumulated deficit in the amount of ¥1,376 million with an effective date of February 25, 2026. Treasury Stocks The Companies Act also provides for companies to purchase treasury stocks and dispose of such treasury stocks by resolution of the board of directors. The amount of treasury stock purchased cannot exceed the amount available for distribution to the shareholders which is determined by a specific formula.

16615220

4615224

4153805

1153806

0.50

120000

252000

132670

527324

773806

1750000

406502000

367304000

386903000

19599000

1666666

1333333

120000

2499.90

252000

265544

4745.10

132670

141780

6945.00

7500.00

The limitation is defined as the amount available for distribution to the shareholders, but the amount of net assets after the payment dividends must be maintained at the level that is not below ¥3 million.

1376000000

16. STOCK BASED COMPENSATION The Company has historically awarded stock options to various officers, employees and consultants of the Company to purchase common shares of the Company. During the years ended September 30, 2017 to 2019, the Company issued four batches of stock options to acquire the equivalent of total 56,000 common shares of the Company. The options generally vest two years after the grant date and have a contractual term of ten years. The options became exercisable after the Company successfully completed the IPO on January 17, 2025. On May 31, 2023, the Company awarded options to purchase an aggregate of 6,000 and <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20230531__20230531__srt--TitleOfIndividualAxis__custom--DirectorsAndEmployeesMember_z5F0dOAg7RA1" title="Option to purchase common stock">11,258 common shares at an exercise price of ¥7,500 and ¥5,490 per common share, respectively, to various officers, directors and employees of the Company. The weighted-average grant-date fair value of the options was ¥<span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_uJPYShares_c20230531__20230531_zduIaT7TJDZb" title="Weighted-average grant-date fair value of option">6. The options vested on May 15, 2025, with the expiration date of May 14, 2033. The IPO, one of the performance conditions for the exercise of both options, was successfully completed on January 17, 2025. The option to purchase an aggregate of 6,000 common shares has another performance condition under which the options will be exercisable upon achieving certain pre-tax income. <p id="xdx_890_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zuj0AKKmXt05" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The table below summarized the stock option activities and related information during the six months ended March 31, 2026, 2025, and 2024. SUMMARY OF STOCK OPTION ACTIVITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(JPY)</td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(Years)</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding as of September 30, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20251001__20260331_zqwdD4B5OS2d" style="width: 14%; text-align: right" title="Options outstanding, beginning balance">36,756</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uJPYShares_c20251001__20260331_zYt2rwciTryc" style="width: 14%; text-align: right" title="Weighted average exercise price, outstanding, beginning balance">2,959</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20241001__20250930_zhzVNOhlpZN8" title="Weighted average remaining contractual term (Yrs), outstanding">4.77</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20251001__20260331_zZaA1v5s9ym2" style="text-align: right" title="Options, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20251001__20260331_z3mjJvHpbFx6" style="text-align: right" title="Weighted average exercise price, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20251001__20260331_zsoM8AjWWB4a" style="text-align: right" title="Options, forfeited/cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20251001__20260331_zS0bi9TvGS1d" style="text-align: right" title="Weighted average exercise price, forfeited/cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20251001__20260331_z5TmDovlCNY7" style="text-align: right" title="Options, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20251001__20260331_z5oYR8X5bjJb" style="text-align: right" title="Weighted average exercise price, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Outstanding as of March 31, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20251001__20260331_z9RMUJVO5Ow6" style="text-align: right" title="Options outstanding, beginning balance">36,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uJPYShares_c20251001__20260331_z4727FIt8IJe" style="text-align: right" title="Weighted average exercise price, outstanding, beginning balance">2,959</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20251001__20260331_z7R1Zq6oxK6c" title="Weighted average remaining contractual term (Yrs), outstanding">4.27</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Vested and exercisable as of March 31, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20251001__20260331_zi0LcEo514Dd" style="text-align: right" title="Options vested and exercisable, ending balance">30,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_uJPYShares_c20251001__20260331_zqMtkm0chrJ6" style="text-align: right" title="Weighted average exercise price, vested and exercisable, ending balance">2,073</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20251001__20260331_zYNEdqSovRH4" title="Weighted average remaining contractual term (Yrs), vested and exercisable outstanding">3.70</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(JPY)</td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(Years)</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding as of September 30, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20241001__20250331_zph4WcgYQoej" style="width: 14%; text-align: right" title="Options outstanding, beginning balance">36,756</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uJPYShares_c20241001__20250331_z9uS3u8t1Cec" style="width: 14%; text-align: right" title="Weighted average exercise price, outstanding, beginning balance">2,959</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20231001__20240930_zZTD6PPNoFA3" title="Weighted average remaining contractual term (Yrs), outstanding">5.77</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20241001__20250331_zRgsGuDra6P" style="text-align: right" title="Options, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20241001__20250331_zAHkMWMQH6yc" style="text-align: right" title="Weighted average exercise price, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20241001__20250331_zseAXvN2pxB2" style="text-align: right" title="Options, forfeited/cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20241001__20250331_zCDwiaPieNck" style="text-align: right" title="Weighted average exercise price, forfeited/cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20241001__20250331_z2COtLl1Vn05" style="text-align: right" title="Options, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20241001__20250331_zk1TVfEUHGK6" style="text-align: right" title="Weighted average exercise price, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Outstanding as of March 31, 2025</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20241001__20250331_zWjUTwl9M44k" style="text-align: right" title="Options outstanding, beginning balance">36,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uJPYShares_c20241001__20250331_zg40AOLIKobj" style="text-align: right" title="Weighted average exercise price, outstanding, beginning balance">2,959</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20241001__20250331_zuM0YeRoBE93" title="Weighted average remaining contractual term (Yrs), outstanding">5.27</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Vested and exercisable as of March 31, 2025</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20241001__20250331_zsSEyZL4oiQk" style="text-align: right" title="Options vested and exercisable, ending balance">24,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_uJPYShares_c20241001__20250331_ziBcKDAMHKEi" style="text-align: right" title="Weighted average exercise price, vested and exercisable, ending balance">1,180</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20241001__20250331_zUCztY6c5Tl6" title="Weighted average remaining contractual term (Yrs), vested and exercisable">3.80</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(JPY)</td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(Years)</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding as of September 30, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20231001__20240331_z2Cv2rlJN3xe" style="width: 14%; text-align: right" title="Options outstanding, beginning balance">41,158</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uJPYShares_c20231001__20240331_z3zX34W2Xyic" style="width: 14%; text-align: right" title="Weighted average exercise price, outstanding, beginning balance">3,231</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20221001__20230930_zYT83PUyhr28" title="Weighted average remaining contractual term (Yrs), outstanding">7.08</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20231001__20240331_zr4aNhNQtMRg" style="text-align: right" title="Options, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20231001__20240331_zK74kZdkMMMa" style="text-align: right" title="Weighted average exercise price, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20231001__20240331_zFnbK67xBe8f" style="text-align: right" title="Options, forfeited/cancelled">(500</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20231001__20240331_zQjJcaUYNkZg" style="text-align: right" title="Weighted average exercise price, forfeited/cancelled">5,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20231001__20240331_zXdLa5WPhcM7" style="text-align: right" title="Options, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20231001__20240331_z037ANVxkro4" style="text-align: right" title="Weighted average exercise price, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Outstanding as of March 31, 2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20231001__20240331_ztPbeITteOt4" style="text-align: right" title="Options outstanding, ending balance">40,658</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uJPYShares_c20231001__20240331_zp2V5Culc9j7" style="text-align: right" title="Weighted average exercise price, outstanding, ending balance">3,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20231001__20240331_z552bUAv97H8" title="Weighted average remaining contractual term (Yrs), outstanding">6.55</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Vested and exercisable as of March 31, 2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20231001__20240331_z0YxBF4U7MA3" style="text-align: right" title="Options vested and exercisable, ending balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_uJPYShares_c20231001__20240331_zogaGoqCAUyh" style="text-align: right" title="Weighted average exercise price, vested and exercisable, ending balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> </table> For the six months ended March 31, 2026, 2025, and 2024, the Company recognized share-based compensation expense from the stock options of nil, ¥5.0 million, and nil, respectively. As of March 31, 2026, the unrecognized stock-based compensation related to the unvested option was ¥1.0 million and is expected to be recognized when a performance condition is considered probable of achievement. During the six months ended March 31, 2026, in accordance with restricted common share compensation agreements, the Company issued <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20251001__20260331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--MrHiroshiFurukawaMember_zMy7n1igKMBc" title="Number of restricted shares issued">1,666,666 common shares to Hiroshi Furukawa, the Company’s then CEO and representative director, and <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20251001__20260331__srt--TitleOfIndividualAxis__custom--MrHideakiHorikiriMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zGYbAZXVZ7re" title="Number of restricted shares issued">1,333,333 shares to Hideaki Horikiri, the Company’s then CFO and director in consideration for services rendered. The shares were fully vested on the grant date, and no future services are required for vesting. The agreements prohibit any sale, transfer, loan or pledge of shares for a period of 20 years from the date of grant. However, the prohibition may be canceled by a resolution of the Company’s board of directors. The grant-date fair value of the restricted shares was determined based on the quoted market price of the Company’s unrestricted common shares on the respective grant dates, adjusted for a discount for lack of marketability (“DLOM”) to reflect the transfer restrictions. The DLOM was estimated using an option-pricing methodology based on the Black-Scholes Model. The significant assumptions used in estimating the DLOM included the quoted market price of the Company’s common shares, expected volatility, the 20-year restriction period, and the applicable risk-free interest rate. Based on this valuation, the grant-date fair value was determined to be ¥<span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn6n6_uJPY_c20251001__20260331__srt--TitleOfIndividualAxis__custom--MrHideakiHorikiriMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zTdmChaaVQ98" title="Value of restricted shares">1,280 million for the <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20251001__20260331__srt--TitleOfIndividualAxis__custom--MrHideakiHorikiriMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zRY9ad23tHll">1,333,333 common shares and ¥<span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn6n6_uJPY_c20251001__20260331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--MrHiroshiFurukawaMember_zs476gfOGTxk" title="Value of restricted shares">1,050 million for the <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20251001__20260331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--MrHiroshiFurukawaMember_zbvtFxTm4v2a" title="Number of restricted shares issued">1,666,666 common shares. The total grant-date fair value of ¥<span id="xdx_903_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn6n6_uJPY_c20251001__20260331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zqH21kJmqdJi" title="Value of restricted shares">2,330 million was fully recognized as stock-based compensation expense during the six months ended March 31, 2026.

56000

The options generally vest two years after the grant date and have a contractual term of ten years

6000

11258

7500

5490

The options vested on May 15, 2025, with the expiration date of May 14, 2033.

6000

<p id="xdx_890_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zuj0AKKmXt05" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The table below summarized the stock option activities and related information during the six months ended March 31, 2026, 2025, and 2024. SUMMARY OF STOCK OPTION ACTIVITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(JPY)</td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(Years)</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding as of September 30, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20251001__20260331_zqwdD4B5OS2d" style="width: 14%; text-align: right" title="Options outstanding, beginning balance">36,756</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uJPYShares_c20251001__20260331_zYt2rwciTryc" style="width: 14%; text-align: right" title="Weighted average exercise price, outstanding, beginning balance">2,959</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20241001__20250930_zhzVNOhlpZN8" title="Weighted average remaining contractual term (Yrs), outstanding">4.77</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20251001__20260331_zZaA1v5s9ym2" style="text-align: right" title="Options, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20251001__20260331_z3mjJvHpbFx6" style="text-align: right" title="Weighted average exercise price, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20251001__20260331_zsoM8AjWWB4a" style="text-align: right" title="Options, forfeited/cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20251001__20260331_zS0bi9TvGS1d" style="text-align: right" title="Weighted average exercise price, forfeited/cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20251001__20260331_z5TmDovlCNY7" style="text-align: right" title="Options, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20251001__20260331_z5oYR8X5bjJb" style="text-align: right" title="Weighted average exercise price, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Outstanding as of March 31, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20251001__20260331_z9RMUJVO5Ow6" style="text-align: right" title="Options outstanding, beginning balance">36,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uJPYShares_c20251001__20260331_z4727FIt8IJe" style="text-align: right" title="Weighted average exercise price, outstanding, beginning balance">2,959</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20251001__20260331_z7R1Zq6oxK6c" title="Weighted average remaining contractual term (Yrs), outstanding">4.27</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Vested and exercisable as of March 31, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20251001__20260331_zi0LcEo514Dd" style="text-align: right" title="Options vested and exercisable, ending balance">30,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_uJPYShares_c20251001__20260331_zqMtkm0chrJ6" style="text-align: right" title="Weighted average exercise price, vested and exercisable, ending balance">2,073</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20251001__20260331_zYNEdqSovRH4" title="Weighted average remaining contractual term (Yrs), vested and exercisable outstanding">3.70</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(JPY)</td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(Years)</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding as of September 30, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20241001__20250331_zph4WcgYQoej" style="width: 14%; text-align: right" title="Options outstanding, beginning balance">36,756</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uJPYShares_c20241001__20250331_z9uS3u8t1Cec" style="width: 14%; text-align: right" title="Weighted average exercise price, outstanding, beginning balance">2,959</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20231001__20240930_zZTD6PPNoFA3" title="Weighted average remaining contractual term (Yrs), outstanding">5.77</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20241001__20250331_zRgsGuDra6P" style="text-align: right" title="Options, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20241001__20250331_zAHkMWMQH6yc" style="text-align: right" title="Weighted average exercise price, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20241001__20250331_zseAXvN2pxB2" style="text-align: right" title="Options, forfeited/cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20241001__20250331_zCDwiaPieNck" style="text-align: right" title="Weighted average exercise price, forfeited/cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20241001__20250331_z2COtLl1Vn05" style="text-align: right" title="Options, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20241001__20250331_zk1TVfEUHGK6" style="text-align: right" title="Weighted average exercise price, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Outstanding as of March 31, 2025</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20241001__20250331_zWjUTwl9M44k" style="text-align: right" title="Options outstanding, beginning balance">36,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uJPYShares_c20241001__20250331_zg40AOLIKobj" style="text-align: right" title="Weighted average exercise price, outstanding, beginning balance">2,959</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20241001__20250331_zuM0YeRoBE93" title="Weighted average remaining contractual term (Yrs), outstanding">5.27</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Vested and exercisable as of March 31, 2025</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20241001__20250331_zsSEyZL4oiQk" style="text-align: right" title="Options vested and exercisable, ending balance">24,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_uJPYShares_c20241001__20250331_ziBcKDAMHKEi" style="text-align: right" title="Weighted average exercise price, vested and exercisable, ending balance">1,180</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20241001__20250331_zUCztY6c5Tl6" title="Weighted average remaining contractual term (Yrs), vested and exercisable">3.80</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(JPY)</td><td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center">(Years)</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Outstanding as of September 30, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20231001__20240331_z2Cv2rlJN3xe" style="width: 14%; text-align: right" title="Options outstanding, beginning balance">41,158</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uJPYShares_c20231001__20240331_z3zX34W2Xyic" style="width: 14%; text-align: right" title="Weighted average exercise price, outstanding, beginning balance">3,231</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20221001__20230930_zYT83PUyhr28" title="Weighted average remaining contractual term (Yrs), outstanding">7.08</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20231001__20240331_zr4aNhNQtMRg" style="text-align: right" title="Options, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20231001__20240331_zK74kZdkMMMa" style="text-align: right" title="Weighted average exercise price, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Forfeited/cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20231001__20240331_zFnbK67xBe8f" style="text-align: right" title="Options, forfeited/cancelled">(500</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20231001__20240331_zQjJcaUYNkZg" style="text-align: right" title="Weighted average exercise price, forfeited/cancelled">5,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20231001__20240331_zXdLa5WPhcM7" style="text-align: right" title="Options, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uJPYShares_c20231001__20240331_z037ANVxkro4" style="text-align: right" title="Weighted average exercise price, exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Outstanding as of March 31, 2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20231001__20240331_ztPbeITteOt4" style="text-align: right" title="Options outstanding, ending balance">40,658</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uJPYShares_c20231001__20240331_zp2V5Culc9j7" style="text-align: right" title="Weighted average exercise price, outstanding, ending balance">3,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20231001__20240331_z552bUAv97H8" title="Weighted average remaining contractual term (Yrs), outstanding">6.55</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Vested and exercisable as of March 31, 2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20231001__20240331_z0YxBF4U7MA3" style="text-align: right" title="Options vested and exercisable, ending balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_uJPYShares_c20231001__20240331_zogaGoqCAUyh" style="text-align: right" title="Weighted average exercise price, vested and exercisable, ending balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> </table>

36756

2959

P4Y9M7D

36756

2959

P4Y3M7D

30756

2073

P3Y8M12D

36756

2959

P5Y9M7D

36756

2959

P5Y3M7D

24400

1180

P3Y9M18D

41158

3231

P7Y29D

500

5500

40658

3203

P6Y6M18D

5000000.0

1000000.0

1666666

1333333

1280000000

1333333

1050000000

1666666

2330000000

17. NET LOSS PER SHARE During the six months ended March 31, 2026, 2025, and 2024, the Company recorded a net loss. Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. The Company has not included the effects of options on diluted net loss per share because to do so would be antidilutive. <p id="xdx_89C_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_z6Kyps0BJNQ7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The table below shows the computation of basic and diluted net loss per share for the six months ended March 31, 2025, 2024, and 2023 (in thousands except per share data): SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251001__20260331_zpscgEZb598c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20241001__20250331_zLUbuDZaONgb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20231001__20240331_zCryz1wEhiui" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Six Months Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--NetIncomeLoss_pn3n3_zgCGAJttFfC6" style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left">Net loss attributable to common shareholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 11%; text-align: right">(2,593,043</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 11%; text-align: right">(316,228</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 11%; text-align: right">(317,817</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted average number of common shares outstanding, basic and diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,477,981</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">788,180</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">237,138</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,046.43</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">(401.21</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,340.22</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_zDcDtKXaMozj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Antidilutive shares excluded from computation of net loss per share</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">24,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> </table>

<p id="xdx_89C_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_z6Kyps0BJNQ7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.25in">The table below shows the computation of basic and diluted net loss per share for the six months ended March 31, 2025, 2024, and 2023 (in thousands except per share data): SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251001__20260331_zpscgEZb598c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20241001__20250331_zLUbuDZaONgb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20231001__20240331_zCryz1wEhiui" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Six Months Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--NetIncomeLoss_pn3n3_zgCGAJttFfC6" style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left">Net loss attributable to common shareholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 11%; text-align: right">(2,593,043</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 11%; text-align: right">(316,228</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">¥</td><td style="width: 11%; text-align: right">(317,817</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted average number of common shares outstanding, basic and diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,477,981</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">788,180</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">237,138</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,046.43</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">(401.21</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">¥</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,340.22</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_zDcDtKXaMozj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Antidilutive shares excluded from computation of net loss per share</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,756</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">24,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> </table>

-2593043000

-316228000

-317817000

2477981

788180

237138

-1046.43

-401.21

-1340.22

30756

24400

18. INCOME TAXES The Company’s income tax benefit differs from the expected benefit from applying the national, prefectural, and municipal government rate of 33.58%, 33.58%, and 33.58% for the six months ended March 31, 2026, 2025, and 2024, respectively, due to permanent differences, change in tax rate, and valuation allowance. The Company has an effective tax rate of 0% due to its taxable losses and valuation allowance position.

0.3358

19. FAIR VALUE DISCLOSURES ASC Topic 820, Fair Value Measurements (ASC 820), defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that differs from the transaction price or market price of the asset or liability. ASC 820 provides a framework for measuring fair value under U.S. GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows: Level 1 – Fair value is based on quoted prices in active markets for identical assets or liabilities. Level 2 – Fair value is determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities, or quoted prices in markets that are not active. Level 3 – Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique. The Company utilizes fair value measurements to account for certain items and account balances within the financial statements. Fair value measurements may also be utilized on a non-recurring basis, such as for the impairment of long-lived assets. The fair value of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, current portion of borrowings and certain accrued liabilities approximate their carrying amounts due to the short-term nature of these instruments. The Company’s Level 1 assets consist of cash and cash equivalents in the accompanying balance sheets. The carrying value of the Company’s long-term borrowings and bond payable approximates fair value at each balance sheet date because the stated rate of interest of the debts approximates the market interest rate at which the Company can borrow similar debts. As of March 31, 2026 and September 30, 2025, the Company did not have any assets or liabilities measured at fair value classified as Level 2 or Level 3. The Company held investment in non-marketable equity securities of ¥3 million and ¥3 million as of March 31, 2026 and September 30, 2025, respectively. Investment in non-marketable equity securities accounted for using the measurement alternative are recorded at fair value on a non-recurring basis. When indicators of impairment exist or observable price changes of qualified transactions occur, the respective non-marketable equity security would be classified within Level 3 of the fair value hierarchy because the valuation methods include a combination of the observable transaction price at the transaction date and other unobservable inputs, including volatility, rights, and obligations of the securities the Company holds.

3000000

20. RELATED PARTY TRANSACTIONS Citibank, N.A. is a multinational bank, and a holder of more than <span id="xdx_907_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CitiBankNAMember__srt--RangeAxis__srt--MaximumMember_zQwViBwL5tB7" title="Holder, interest rate">5% of the Company’s outstanding share capital during the six months ended March 31, 2025. During the six months ended March 31, 2025, the Company incurred professional fees of ¥37,031 thousand and had accrued expenses of ¥<span id="xdx_908_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iI_pn3n3_uJPY_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CitiBankNAMember_zFBaaIUFpvG2" title="Accrued liabities">6,221 thousand as of March 31, 2025 to Citibank, N.A. EXEO Group is a multinational radio and telecommunication device distributor and held more than <span id="xdx_908_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EXEOGroupMember__srt--RangeAxis__srt--MaximumMember_zj8G9iZ2pGRg" title="Holder, interest rate"><span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20240331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EXEOGroupMember__srt--RangeAxis__srt--MaximumMember_zxdSmhkiE4Q2" title="Holder, interest rate">5% of the Company’s outstanding share capital at some point during the six months ended March 31, 2025 and 2024. During the six months ended March 31, 2025 and 2024, the Company recognized the revenue of ¥<span id="xdx_900_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_pn3n3_uJPY_c20241001__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EXEOGroupMember_zVkyehHeo4mg" title="Revenue recognized">31,047 thousand and ¥<span id="xdx_902_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_pn3n3_uJPY_c20231001__20240331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EXEOGroupMember_zdS5mlxFOyj6" title="Revenue recognized">71,320 thousand, respectively, from EXEO Group. The Company’s sale was an arm’s length transaction, and the sale price was based on the price lists distributed to other third-party distributors. SHIMIZU CORPORATION is a multinational construction company and a holder of more than <span id="xdx_909_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShimizuCorporationMember__srt--RangeAxis__srt--MaximumMember_z52aTZVX5wEg" title="Holder, interest rate"><span id="xdx_905_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20240331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShimizuCorporationMember__srt--RangeAxis__srt--MaximumMember_zGm9fh7x9ZL7" title="Holder, interest rate">5% of the Company’s outstanding share capital during the six months ended March 31, 2025 and 2024. During the six months ended March 31, 2025 and 2024, the Company recognized the revenue of <span id="xdx_90E_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_dxL_uJPY_c20241001__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShimizuCorporationMember_zcbl57ETqS2d" title="Revenue recognized::XDX::-">nil and ¥<span id="xdx_901_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_uJPY_c20231001__20240331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShimizuCorporationMember_zhqhIvXoUD48" title="Revenue recognized">1,856, respectively, from SHIMIZU CORPORATION. The Company’s sale was an arm’s length transaction, and the sale price was based on the price lists distributed to other third-party distributors. The account receivable balance from SHIMIZU CORPORATION as of September 30, 2025 was <span id="xdx_907_eus-gaap--AccountsReceivablePurchase_pn3n3_dxL_c20241001__20250930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShimizuCorporationMember_zhDJgET7Osg3" title="Accounts receivable purchase::XDX::-">nil. MCC Venture Capital Limited Liability Company (“MCC”) held more than <span id="xdx_902_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20260331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MCCVentureCapitalLimitedMember__srt--RangeAxis__srt--MaximumMember_zeH5xFjwKEt5" title="Holder, interest rate"><span id="xdx_904_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MCCVentureCapitalLimitedMember__srt--RangeAxis__srt--MaximumMember_zDCV0Gqr5d9c" title="Holder, interest rate"><span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20240331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MCCVentureCapitalLimitedMember__srt--RangeAxis__srt--MaximumMember_zWHedkjbQdr6" title="Holder, interest rate">5% of the Company’s outstanding share capital at some point during six months ended March 31, 2026, 2025, and 2024. During the six months ended March 31, 2024, MCC entered into a convertible bond agreement with the Company in the amount of ¥<span id="xdx_902_eus-gaap--ConvertibleDebtCurrent_iI_pn3n3_c20240331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MCCVentureCapitalLimitedMember__us-gaap--TypeOfArrangementAxis__custom--ConvertibleBondAgreementMember_zza7SrPpd2kk" title="Holder, interest rate">199,998 thousand. During the six months ended March 31, 2025, the convertible bond of ¥<span id="xdx_90C_eus-gaap--RepaymentsOfConvertibleDebt_pn3n3_c20241001__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MCCVentureCapitalLimitedMember__us-gaap--TypeOfArrangementAxis__custom--ConvertibleBondAgreementMember_zbZLyzGO0Alk" title="Convertible debt repaid">199,998 thousand was paid. During the six months ended March 31, 2025 and 2024, the Company incurred interest expenses of ¥<span id="xdx_90D_eus-gaap--InterestPayableCurrentAndNoncurrent_iI_pn3n3_c20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MCCVentureCapitalLimitedMember_zFN4OWoOKHx7" title="Accrued interest expenses">9,370 thousand and <span id="xdx_900_eus-gaap--InterestPayableCurrentAndNoncurrent_iI_pn3n3_dxL_c20240331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MCCVentureCapitalLimitedMember_zs3pbfeve2w8" title="Accrued interest expenses::XDX::-">nil, respectively. Nikken Lease Kogyo Co., Ltd. (“Nikken”) is a multinational leasing company and held more than <span id="xdx_907_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20260331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NikkenLeaseKogyoCoLtdMember__srt--RangeAxis__srt--MaximumMember_zbjDLol5Loyj" title="Holder, interest rate">5% of the Company’s outstanding share capital at some point during the six months ended March 31, 2026. Nikken purchased mesh Wi-Fi access points PCWL devices from the Company for a total amount of ¥10,716 thousand during the six months ended March 31, 2026. The Company also provided SaaS and maintenance related service for a total amount of ¥<span id="xdx_902_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_pn3n3_c20251001__20260331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NikkenLeaseKogyoCoLtdMember_z2cpZIqjSP86" title="Service">3,301 thousand during the six months ended March 31, 2026. The Company’s sale was an arm’s length transaction, and the sale price was based on the price lists distributed to other third-party distributors. The account receivable balance from Nikken as of March 31, 2026 and September 30, 2025 was ¥<span id="xdx_90C_eus-gaap--AccountsReceivablePurchase_pn3n3_c20251001__20260331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NikkenLeaseKogyoCoLtdMember_zmht5X3FThr4" title="Accounts receivable purchase">10,257 thousand and ¥<span id="xdx_908_eus-gaap--AccountsReceivablePurchase_pn3n3_c20241001__20250930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NikkenLeaseKogyoCoLtdMember_z5TbYm4DQ9gk" title="Accounts receivable purchase">1,077 thousand, respectively. The contract liabilities balance to Nikken as of September 30, 2025 was ¥<span id="xdx_90F_eus-gaap--ContractWithCustomerLiability_iI_pn3n3_c20250930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NikkenLeaseKogyoCoLtdMember_zqKe7VaCqVZd" title="Contract liability">136 thousand. On April 28, 2025, the Company entered into a share subscription agreement with Nikken, pursuant to which the Company agreed to issue <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250428__20250428__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NikkenLeaseKogyoCoLtdMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementsMember_zvnklx0uBAb" title="Number of shares issued">84,388 common shares to Nikken at a purchase price of JPY<span id="xdx_901_eus-gaap--SharesIssuedPricePerShare_iI_pid_uJPYShares_c20250428__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NikkenLeaseKogyoCoLtdMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementsMember_zwcSVc7o8V8k" title="Purchase price per share">2,370 per share, for an aggregate purchase price of JPY<span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pp0p0_uJPY_c20250430__20250430__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NikkenLeaseKogyoCoLtdMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementsMember_zMHfkRMpbp53" title="Total purchase price">199,999,955, on April 30, 2025. Under the subscription agreement, the shares are restricted for 18 months from being transferred, converted into the Company’s ADSs representing the Company’s common shares, or resold in the U.S. stock market where the Company’s common shares and ADSs are registered.

0.05

37031000

6221000

0.05

31047000

71320000

0.05

1856

0.05

199998000

9370000

0.05

10716000

3301000

10257000

1077000

136000

84388

2370

199999955

21. CONSULTING AGREEMENT On March 31, 2023, the Company entered into a consulting and services agreement with Spirit Advisors LLC (“Spirit Advisors”). The Company agreed to compensate Spirit Advisors with engagement fee of U.S.$<span id="xdx_90F_ecustom--EngagementFee_uUSD_c20230331__20230331__us-gaap--TypeOfArrangementAxis__custom--ConsultingAndServicesAgreementMember__dei--LegalEntityAxis__custom--SpiritAdvisorsLLCMember_zo5rr2PlK9Ub" title="Engagement fee">80,000, services fees of U.S.$<span id="xdx_902_eus-gaap--ProfessionalFees_uUSD_c20230331__20230331__us-gaap--TypeOfArrangementAxis__custom--ConsultingAndServicesAgreementMember__dei--LegalEntityAxis__custom--SpiritAdvisorsLLCMember_zHTQmX7o0XN3" title="Services fee">240,000, and <span id="xdx_903_ecustom--ContingentPerformanceFeeDescription_c20230331__20230331__us-gaap--TypeOfArrangementAxis__custom--ConsultingAndServicesAgreementMember__dei--LegalEntityAxis__custom--SpiritAdvisorsLLCMember_zQzeMzACYHYj" title="Contingent performance fee description">contingent performance fee of: (i) U.S.$200,000, if the Company’s market capitalization at the time of listing was at or below U.S.$50,000,000, or (ii) U.S.$300,000, if the Company’s market capitalization at the time of listing exceeded U.S.$50,000,000. As the Company’s market capitalization at the time of listing exceeded U.S.$50,000,000, the contingent performance fee of U.S.$300,000 was incurred upon the closing of the Company’s IPO on January 17, 2025. The Company entered into a financial advisory agreement and a follow-on advisory agreement on February 7, 2025, and March 6, 2025, respectively, with Qing “Calvin” Zhu (the “Advisor”), an individual advisor, in connection with the Company’s financing. The Company incurred and paid the Advisor U.S.$250,000 for the services pursuant to the financial advisory agreement and U.S.$250,000 for the services pursuant to the follow-on advisory agreement, on February 17 and March 14, 2025, respectively. 80000

240000

contingent performance fee of: (i) U.S.$200,000, if the Company’s market capitalization at the time of listing was at or below U.S.$50,000,000, or (ii) U.S.$300,000, if the Company’s market capitalization at the time of listing exceeded U.S.$50,000,000. As the Company’s market capitalization at the time of listing exceeded U.S.$50,000,000, the contingent performance fee of U.S.$300,000 was incurred upon the closing of the Company’s IPO on January 17, 2025.

250000

22. SUBSEQUENT EVENTS The Company and Hideaki Horikiri, the Company’s then CFO and director, currently the Company’s COO and director, entered into those certain two Restricted Common Share Compensation Agreements (collectively, the “Compensation Agreements”), each executed on April 1, 2026 and April 11, 2026, respectively, based on the Companies Act and the resolution regarding the grant of restricted common shares adopted at the meetings of the board of directors of the Company held on March 11, 2026 and March 24, 2026. Pursuant to the Compensation Agreements, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20260401__20260401__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrHideakiHorikiriMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zfnSj9v6Lji4">4,400,000 and <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20260411__20260411__srt--TitleOfIndividualAxis__custom--MrHideakiHorikiriMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zd5PKdxRM9X2" title="Number of restricted shares issued">1,060,000 common shares of the Company to Mr. Horikiri on April 1, 2026 and April 11, 2026, respectively. The issuance of the common shares was in consideration for Mr. Horikiri’s services rendered and included a prohibition on any sale, transfer, loan or pledge of the shares for a period of 20 years from the respective dates of issuance. However, the prohibition may be canceled by a resolution of the Company’s board of directors. On April 30, 2026, at an extraordinary general meeting of the shareholders of the Company, the shareholders approved, among other things, the establishment of the Class A preferred shares of the Company. On July 14, 2026, the Company entered into a Class A Preferred Share Purchase Agreement (the “Purchase Agreement”) with a certain institutional investor. Pursuant to the Purchase Agreement, on July 16, 2026, the Company sold and issued <span id="xdx_906_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20260716__20260716__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__custom--ClassAPreferredSharesMember_znM4cNV42wj3" title="Number of sold and issued">20,000,000 Class A preferred shares of the Company at the price of $<span id="xdx_906_eus-gaap--SaleOfStockPricePerShare_iI_pid_c20260716__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z65hDDr4ZNc5" title="Price per share">0.25 per share, for gross proceeds of $<span id="xdx_90A_eus-gaap--ProceedsFromIssuanceOfPreferredStockAndPreferenceStock_c20260716__20260716__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zuV8EZvLobnh" title="Gross proceeds from sale of stock">5,000,000. The Company has evaluated subsequent events after the balance sheet date through September 18, 2026, the date the financial statements were available for issuance. Management has determined that no significant events or transactions have occurred subsequent to the balance sheet date other than the events disclosed above that require both recognition and disclosure in the financial statements.

4400000

1060000

20000000

0.25

5000000

The number of shares presented above is adjusted retrospectively to reflect the 1 for 60 sub-division effected on October 24, 2024 and the 30 for 1 reverse share split effected on January 26, 2026. Giving retroactive effect to the 1 for 60 sub-division effected on October 24, 2024 and the 30 for 1 reverse share split effected on January 26, 2026. Guarantee deposits represent deposit paid to lessors in connection with lease agreements. Investment in security represents an investment in a non-public company for which fair value is not readily determinable. Investment in security is accounted for using the measurement alternative in accordance with ASC 321-10-35-2. For the six months ended March 31, 2026, 2025, and 2024, no upward or downward adjustments have been recorded as the Company did not identify any observable price changes in orderly transactions for any identical or similar investment of the same issuer.