TOKYO, May 01, 2024 (GLOBE NEWSWIRE) -- Earlyworks Co., Ltd. (NASDAQ:ELWS) (the "Company"), a Japanese provider of blockchain technology solutions, yesterday announced its financial results for the six months ended October 31, 2023. For the six months ended October 31, 2023, the Company's revenue increased by approximately JPY 22,738 thousand, gross profit increased by approximately JPY 39,631 thousand and net loss decreased by approximately JPY 28,393 thousand, as compared to the same period in 2022. Management Commentary The six-month period ended October 31, 2023 marks several milestones for the Company. First, the Company achieved its initial public offering and listing on the NASDAQ in the six months ended October 31, 2023. Second, the Company has been able to leverage its research and development achievements for business opportunities. In the 2023 fiscal year, the Company was dedicated to the research and development of its proprietary blockchain system (Grid Ledger System, hereinafter "GLS"). This was a strategic decision made by Company's management to contribute to its future business. During the six months ended October 31, 2023, the Company made significant efforts to promote GLS. As announced in the Company's previous press releases, the Company's research and development efforts resulted in the launch of Phase 1 of the System Development Kit package for GLS, and collaborations with large Japanese corporations, including NTT DOCOMO, INC., one of Japan's largest cell phone operators, have been implemented. The Company is hopeful that these collaborations will contribute to future business growth. Third, the Company has updated its revenue generation model. The Company's previous model centered on securing system development contracts using blockchain technology. With the development of GLS, the Company has been able to provide decentralized blockchain solutions based on GLS. Large and venture companies in Japan are currently seeking collaborations to launch new businesses, termed "co-creation new business development." The Company has sought to take full advantage of opportunities created by the "co-creation new business development" model and establish collaborations as a business partner, rather than a contracting system developer, by leveraging GLS. For example, as announced in the Company's previous press release, the Company has been selected as a co-creation business partner for MetaMe®, a meta-communication service utilizing technology from NTT DOCOMO, INC. The Company believes this initiative of updating its revenue generation model has redefined the Company's position and presented new opportunities for recurring income and revenue. Comparison Between the Six Months Ended October 31, 2023 and 2022 EARLYWORKS CO., LTD.UNAUDITED INTERIM CONDENSED STATEMENTS OF OPERATIONS       For thesix monthsendedOctober 31,2022     For thesix monthsendedOctober 31,2023     For thesix monthsendedOctober 31,2023       JPY     JPY     USD   OPERATING REVENUES                   Software and system development services     11,358,517       4,812,000       31,771   Consulting and solution services     20,847,940       1,267,620       8,369   Sale of NFTs     —       48,864,935       322,626   TOTAL OPERATING REVENUES     32,206,457       54,944,555       362,766   COST OF REVENUES     (20,229,847 )     (3,336,792 )     (22,031 ) GROSS PROFIT     11,976,610       51,607,763       340,735   OPERATING EXPENSES:                         Selling and marketing expenses     (11,366,838 )     (27,077,415 )     (178,776 ) General and administrative expenses     (162,606,424 )     (200,231,599 )     (1,322,010 ) Share-based compensation expenses     —       (1,616,463 )     (10,673 ) Research and development expenses     (50,234,955 )     (44,821,606 )     (295,930 ) TOTAL OPERATING EXPENSES     (224,208,217 )     (273,747,083 )     (1,807,389 ) LOSS FROM OPERATIONS     (212,231,607 )     (222,139,320 )     (1,466,654 ) Loss on digital assets     —       (167,879 )     (1,108 ) Interest expenses, net     (700,617 )     (1,789,278 )     (11,814 ) Foreign exchange gain, net     —       38,823,264       256,327   Other (expense) income, net     (213,799 )     129,617