Pixie Dust Technologies Reports First-Half Fiscal Year 2024 Financial Results

NEW YORK and TOKYO, Feb. 12, 2024 /PRNewswire/ - Pixie Dust Technologies, Inc. (NasdaqCM: PXDT) (the "Company"), a Japanese technology company focused on commercializing innovative products and materials utilizing proprietary wave technology, reported financial results for the six months ended October 31, 2023.

• Introduced a one-time purchase model for its proprietary speaker kikippa, in addition to the current recurring subscription model
• Announced Company-sponsored experiment on the SonoRepro™ product, conducted by Dr. Akinobu Miyata, Director of Miyata Medical Clinic, in collaboration with the Japan Clinical Trial Association
• Exhibited at CES 2024 held in Las Vegas, NV and received the Innovation Award for its iwasemi™ RC-α product
• Announced collaborative research agreement with Tohoku University School of Medicine for the purpose of developing and commercializing certain non-pharmaceutical skin disease treatments using wave control technology
• Awarded the 2023 Good Design Award for the kikippa speaker

The Company's financial statements for the six months ended October 31, 2023 and the related notes, and related management's discussion and analysis of the Company's financial condition and results of operations can be found in the Company's Form 6-K filed with the SEC, a copy of which can also be found on the Company's website. The Company's functional currency and reporting currency is the Japanese yen (which we refer to as "JPY" or "¥"). The terms "dollar," "USD," "US$" or "$" refer to U.S. dollars, the legal currency of the United States. Convenience translations included herein of Japanese yen into U.S. dollars have been made at the exchange rate of ¥151.46 = US$1.00, which was the foreign exchange rate on October 31, 2023 as reported by the Board of Governors of the Federal Reserve System. All figures are expressed in Japanese yen and U.S. dollars unless otherwise stated.

• Total Revenue increased by 88.6% from approximately ¥158.6 million ($1.0 million) for the six months ended October 31, 2022 to ¥299.1 million ($2.0 million) for the six months ended October 31, 2023. The increase was primarily due to increases in product sales revenue, partially offset by decreases in revenue from commissioned research and development and revenue from membership service.
• Product Sales were approximately ¥225.7 million ($1.5 million) in the six months ended October 31, 2023, representing a ¥188.9 million ($1.2 million) increase from the same period in the prior year. The increase was attributable to the launches and sales of the following products: SonoRepro (launched in November 2022), kikippa (launched in April 2023), and iwasemi (launched in July 2022).
• Services Sales declined to ¥73.4 million ($0.5 million) in the six months ended October 31, 2023 from ¥121.9 million ($0.8 million) in the same period in the prior year. The decline was primarily due to the decrease in commissioned research and a shift in focus from the research and development of kikippa and other products to product commercialization.
• Research and Development Expenses decreased by 17.6% from ¥339.3 million ($2.2 million) in the six months ended October 31, 2022 to ¥279.4 million ($1.8 million) for the six months ended October 31, 2023. The decrease was primarily due to a shift in focus from the research and development of kikippa and VUEVO to product commercialization.
• Selling, General and Administrative Expenses increased by 63.3% from ¥643.9 million ($4.3 million) for the six months ended October 31, 2022 to ¥1.1 billion ($6.9 million) for the six months ended October 31, 2023. The increase was primarily due to increases in advertising and marketing expenses for new products, rent expense in connection with the Company's new headquarters and depreciation expenses.
• Other Income increased significantly from ¥0.1 million for the six months ended October 31, 2022 to ¥41.4 million ($0.3 million) for the six months ended October 31, 2023. The increase was primarily due to the increase of foreign exchange gains as a result of the receipt of the net proceeds from the initial public offering of the Company's common shares in U.S. dollars during the six months ended October 31, 2023.
• Net Loss was ¥1.2 billion ($7.6 million) in the six months ended October 31, 2023 compared to ¥885 million ($5.8 million) in the same period in the prior year.
• As of October 31, 2023, the Company had ¥2.4 billion ($16.0 million) in cash and cash equivalents, compared to ¥2.1 billion ($15.7 million) as of April 30, 2023, which were held and used for working capital purposes. The Company's cash and cash equivalents generally consist of cash on hand, demand deposits, and time deposits maintained at various financial institutions.

Certain statements contained in this press release are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and actual events may differ materially from current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes to the market for securities, political or financial instability and other factors which are set forth in the Company's prospectus that forms a part of the Registration Statement on Form F-1 (File No. 333-272476), as amended, and in all filings with the SEC made by the Company subsequent to the filing thereof. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Pixie Dust Technologies, Inc. is a Japanese technology company focused on commercializing innovative products and materials utilizing proprietary wave technology. The Company is currently focusing on two areas of product development: (1) "Personal Care & Diversity", where wave control technology is applied to mechanobiology and intervention/assistance in vision, hearing, and touch, and (2) "Workspace & Digital Transformation," where metamaterials (technology that creates properties through structure rather than material) and solutions to commercial design problems, such as in offices or construction sites, are applied.

SOURCE Pixie Dust Technologies