Liquidity and Capital Resources

As of September 30, 2022 and September 30, 2021, we had cash in the amount of $23,822,217 and $23,056,242, respectively. The increase in cash is mainly attributed to increase in net income from operation and accounts payable. The accounts payable were mainly unpaid commissions to the Force Club premium members and these payments were completed as of the date of this report. Currently, our cash balance is sufficient to fund our operations without the need for additional funding.





Revenues

We recorded revenue of $34,690,411 for the year ended September 30, 2022 as opposed to $28,433,822 for the year ended September 30, 2021. The increase in revenue, in our opinion, is attributed to an increase in recruitment activities of the Force Club premium members.





Net income

We recorded net income of $4,138,347 for the year ended September 30, 2022 as opposed to $3,074,544 for the year ended September 30, 2021. The increase in net income is attributed to an increase in revenue.





Cash flow

For the year ended September 30, 2022, we had cash flows from operations in the amount of $6,759,449 as opposed to $5,257,817 for the year ended September 30, 2021. The increase in operating cash flow, in our opinion, is mainly attributed to an increase in net income, adjusted by changes in accrued expenses and other payables, account payable and income tax payable, offset by the cash outflow resulting from changes in fair value of marketable securities and inventories.





Working capital

As of September 30, 2022 and 2021, we had working capital of $15,273,484 and $15,695,158, respectively.





Advertising

Advertising costs are expensed as incurred and included in selling and distributions expenses. Advertising expenses were $1,493,824 and $736,195 for the years ended September 30, 2022 and 2021, respectively.

Advertising expenses were comprised of, but not limited to, sales events hosted for sales agents, exhibitions to promote and display company product offerings, signboards, and public relations activities.





Future Plans

During the year under review, economic activity in Japan gradually returned to normal as the coronavirus disease ("Covid-19") pandemic situation has become under control and social distancing measures were eased. Due to the relaxation of these restrictions, the Company was able to resume conducting its business activities, resulting in a significant increase in the number of members and a growth in sales and profit.

Over the next twelve months, the Company intends to focus on expanding its sales network to strengthen its business activities. Since the year under review has led to an increased number of members, we expect a stable growth in monthly membership fee income for the coming financial year.





Impact of COVID-19

It is expected that Japan's economy will recover and the Company will be able to continue conducting its business activities without restrictions. However, due to the high uncertainty of the evolving situation, the Company has limited visibility on the full impact brought upon by the COVID-19 pandemic, and the related financial impact to future periods cannot be estimated at this time.

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