QD Laser : Non-consolidated Financial Results for the Three Months Ended June 30, 2022

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Non-consolidated Financial Results

for the Three Months Ended June 30, 2022

[Japanese GAAP]

Company name: QD Laser, Inc.	August 10, 2022
Stock exchange listing: Tokyo
Code number: 6613
URL: https://www.qdlaser.com/
Representative: Mitsuru Sugawara	President and Chief Executive Officer
Contact: Shinji Konoya	Chief Financial Officer

Phone: [phone]

Scheduled date of filing quarterly securities report: August 10, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Non-consolidated Financial Results for the Three Months Ended June 30, 2022 (April 01, 2022 to June 30, 2022)

(1) Non-consolidated Operating Results				(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit			Net income
Three months ended	Million yen	%		Million yen	%	Million yen		%		Million yen		%
June 30, 2022	213	(4.3)		(163)	-	(148)		-		(149)		-
June 30, 2021	222	-		(200)	-	(202)		-		(206)		-
	Basic earnings	Diluted earnings per
	per share		share
Three months ended		Yen			Yen
June 30, 2022		(4.18)			-
June 30, 2021		(5.96)			-
(2) Non-consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of		Million yen			Million yen				%
June 30, 2022		3,852			3,448				89.2
March 31, 2022		4,018			3,583				88.9

(Reference) Equity: As of	June 30, 2022:		¥	3,435 million
As of	March 31, 2022:		¥	3,570 million
2. Dividends
						Annual dividends
			1st	2nd		3rd		Year-end	Total
			quarter-end	quarter-end	quarter-end
			Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2022		-		0.00	-		0.00	0.00
Fiscal year ending March 31, 2023		-
Fiscal year ending March 31, 2023				0.00	-		0.00	0.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

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3. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding period.)

	Net sales	Operating profit	Ordinary profit		Net income		Basic earnings per
				share
	Million yen	%	Million yen	%	Million yen		%	Million yen		%		Yen
Full year	1,277	16.0	(567)	-		(558)		-	(562)		-		(15.73)
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Accounting policies adopted specially for the preparation of quarterly Non-consolidated financial statements:	Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2022:	35,796,580	shares
March 31, 2022:	35,755,180	shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	181	shares
March 31, 2022:	86	shares

3) Average number of shares during the period:
Three months ended June 30, 2022:	35,782,662	shares
Three months ended June 30, 2021:	34,584,100	shares

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Quarterly Non-consolidated Financial Statements

Quarterly Non-consolidated Balance Sheets

				(Thousand yen)
			As of March 31,2022	As of June 30,2022
Assets
	Current assets
		Cash and deposits	2,821,052	2,704,187
		Accounts receivable - trade	282,514	210,762
		Merchandise and finished goods	281,550	256,166
		Work in process	72,002	77,421
		Raw materials and supplies	158,017	199,197
		Accounts receivable - other	79,166	99,266
		Prepaid expenses	16,107	17,726
		Short-term loans receivable	19,000	12,000
		Other	6	6
		Total current assets	3,729,418	3,576,736
	Non-current assets
		Property, plant and equipment
		Facilities attached to buildings, net	175,714	171,500
		Machinery and equipment, net	63,665	57,477
		Tools, furniture and fixtures, net	12,517	11,237
		Leased assets, net	2,167	1,653
		Total property, plant and equipment	254,065	241,869
		Intangible assets
		Patent right	2,887	2,784
		Trademark right	2,167	2,065
		Software	2,054	1,723
		Leased assets	1,647	1,317
		Total intangible assets	8,756	7,890
		Investments and other assets
		Shares of subsidiaries and associates	3,372	3,372
		Guarantee deposits	22,415	22,415
		Other	40	40
		Total investments and other assets	25,827	25,827
		Total non-current assets	288,649	275,588
	Total assets	4,018,067	3,852,324

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			(Thousand yen)
		As of March 31,2022	As of June 30,2022
Liabilities
	Current liabilities
	Accounts payable - trade	143,475	162,308
	Current portion of long-term borrowings	91,404	28,914
	Lease liabilities	3,867	3,400
	Accounts payable - other	61,103	61,905
	Accrued expenses	4,489	5,082
	Income taxes payable	25,879	11,062
	Deposits received	2,873	3,199
	Provision for bonuses	45,159	66,186
	Other	5,088	13,214
	Total current liabilities	383,341	355,274
	Non-current liabilities
	Long-term borrowings	15,988	13,987
	Lease liabilities	488	-
	Deferred tax liabilities	4,326	4,238
	Asset retirement obligations	30,429	30,452
	Total non-current liabilities	51,232	48,678
	Total liabilities	434,573	403,952
Net assets
	Shareholders' equity
	Share capital	2,564,185	2,571,430
	Capital surplus	5,047,956	5,055,201
	Retained earnings	(4,041,490)	(4,191,048)
	Treasury shares	(129)	(183)
	Total shareholders' equity	3,570,522	3,435,400
	Share acquisition rights	12,971	12,971
	Total net assets	3,583,494	3,448,371
Total liabilities and net assets	4,018,067	3,852,324

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Quarterly Non-consolidated Statements of Income

Quarterly Non-consolidated Statements of Income (For the three months)

		(Thousand yen)
	For the three months	For the three months
	ended June 30,2021	ended June 30,2022
Net sales	222,973	213,438
Cost of sales	186,411	157,381
Gross profit	36,561	56,057
Selling, general and administrative expenses	237,253	219,472
Operating loss	(200,691)	(163,415)
Non-operating income
Interest income	-	43
Foreign exchange gains	168	15,565
Other	-	422
Total non-operating income	168	16,030
Non-operating expenses
Interest expenses	820	274
Share issuance costs	-	172
Financing expenses	750	750
Rental expenses	652	-
Other	-	10
Total non-operating expenses	2,223	1,207
Ordinary loss	(202,745)	(148,593)
Extraordinary losses
Impairment losses	2,532	-
Total extraordinary losses	2,532	-
Loss before income taxes	(205,277)	(148,593)
Income taxes - current	1,053	1,052
Income taxes - deferred	(87)	(87)
Total income taxes	966	965
Loss	(206,244)	(149,558)

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