Company Description

We are a platform service provider focusing on human resource solutions with an intention to expand into legal technology and the metaverse. Our current major product is “Labor Robot,” a cloud-based human resource management system launched in September 2022. Labor Robot helps users track employee attendance and sales orders and journalize accounting items. Additionally, we provide the information relating to grant (Joseikin) applications with MHLW, which will provide grants to small and medium-sized businesses to enhance their working conditions and employee welfare. Labor Robot also facilitates users in evaluating the types of grants they may be eligible for. In addition, we connect users interested in applying for grants with Certified Consultants. In addition to grant applications, we also support users who want to apply for a subsidy (Hojokin) with METI for the information technology (IT) system installation subsidy by connecting users interested in applying for a subsidy with our partners specializing in subsidy applications. The number of Labor Robot users grew significantly to 261 users as of March 31, 2023, and to 483 users as of March 31, 2024, with 222 new users added during the fiscal year ended March 31, 2024. The number of Labor Robot users grew further to 513 as of September 30, 2024, with 30 new users added during the six months ended September 30, 2024. Labor Robot users are the users of Labor Robot who directly purchase Labor Robot from us and the users who purchase it from Nac Co., Ltd, a Japanese conglomerate that operates a water server business, sells and rental dust control products, provides architectural consulting, and manufactures and sells beauty product manufacturing (“Nac”). The largest distributor contributing to the increased numbers of Labor Robot users is Nac. Nac is a listed company in Japan that has connections with small and medium-sized businesses, who serve as our target customers. Under the distribution agreement between us and Nac, Nac has agreed to act as our primary distributor, and we have agreed to provide support to Nac’s customers in applying for IT system installation subsidies with METI. In practice, Nac directly enters into the Labor Robot licensing or sales agreement with its customers, and we receive 7% of the total sales price (including tax) of Labor Robot that Nac sold to its customers in the prior month, which we recognize as revenue from the sales of Labor Robot. This arrangement enables us to increase exposure of Labor Robot to our target customers through Nac’s pipeline. We obtained 3 and 75 new Labor Robot users through this arrangement during the six months ended September 30, 2024 and 2023, respectively, representing 10.0% and 65.2% of new users acquired during the six months ended September 30, 2024 and 2023, respectively. The total accumulated number of Labor Robot users derived from Nac was 310 and 284 for the six months ended September 30, 2024 and 2023, respectively. We obtained 98 and 209 new Labor Robot users through this arrangement during the fiscal years ended March 31, 2024 and 2023, respectively, representing 44.14% and 80.1% of new users acquired during the fiscal years ended March 31, 2024 and 2023, respectively. The total accumulated number of Labor Robot users derived from Nac were 307 and 209 for the fiscal years ended March 31, 2024 and 2023, respectively. However, we receive only 7% of the original Labor Robot’s price from Nac, as opposed to the full price we usually obtain from users directly purchasing Labor Robot from us. The percentage of the revenue derived from Nac’s customers was 4.2% and 18.3% of the total revenue of the Company for the six months ended September 30, 2024 and 2023, respectively. The percentage of the revenue derived from Nac’s customers was 1.5% and 8.21% of the total revenue of the Company for the fiscal years ended March 31, 2024 and 2023, respectively. While we plan to continue expanding the customer base for Labor Robot through our distribution agents, we also aim to create more software and services related to digital transformation, legal technology, and the metaverse. For example, we plan to launch “Robot Lawyer,” which will enable users to pose metaverse-related legal questions on certain metaverse platforms through Robot Lawyer’s chat interface powered by ChatGPT’s API (the “Chatbot”), and will allow users to (i) search legal precedents through a search engine integrating AI to enhance search quality, and (ii) will provide users with lawyer matching services for further legal consultation. As of the date of this prospectus, our current products do not include any AI technology; however, we are endeavoring to incorporate third-party generative AI technology, such as ChatGPT, into our Robot Lawyer software. In addition to Labor Robot, we also provide consulting and support services relating to digital transformation to small and medium-sized businesses. During the fiscal year ended March 31, 2024, our services included (i) e-learning services, (ii) e-commerce store set-up services, and (iii) software installation services, while during the fiscal year ended March 31, 2023, we provided only IT system installation subsidy application consulting and support services. Additionally, during the fiscal year ended March 31, 2023, we provided advertising services and outsourcing services to a certain Certified Consultant. The revenue from our products and services, excluding the sales of Labor Robot, accounted for 83.2% and 66.6% of our total revenue during the six months ended September 30, 2024, and 2023, respectively. The revenue from our products and services, excluding the sales of Labor Robot, accounted for 89.16% and 81.48% of our total revenue during the fiscal years ended March 31, 2024, and 2023, respectively. We plan to use proceeds from these services to further expand Labor Robot’s business and develop new products and services. While we have ceased providing IT system installation subsidy application consulting and support services, e-commerce store set-up services, advertising services, and outsourcing services, in order to focus our efforts on the expansion of sales of our Labor Robot, e-learning services, and software installation services, a determination as to whether such services may resume in the future has yet to be made. During the six months ended September 30, 2024 and 2023, the percentage of revenue accounted for by such discontinued products and services was nil and 66.6%, respectively, and the percentage of revenue accounted for by those products and services we continued to offer during such periods was 100.0% and 33.4%, respectively. During the fiscal years ended March 31, 2024 and 2023, the percentage of revenue accounted for by such discontinued products and services was 48.48% and 81.48%, respectively, and the percentage of revenue accounted for by those products and services we continued to offer during such periods was 51.52% and 18.52%, respectively. --- Our headquarters are located at Le Graciel Building 2, 6th Floor 5-22-6 Shinbashi, Minato Ward, Tokyo 105-0005, Japan and our phone number is +81 3-6280-547. Our website address is https://robotconsulting.net/. Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168.