Pixie Dust (PXDT) 6-K 31 Jan 24 Announces Interim Financial Results Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Oct. 31, 2023
Document Information Line Items
Entity Registrant Name	PIXIE DUST TECHNOLOGIES, INC.
Document Type	6-K
Current Fiscal Year End Date	--04-30
Amendment Flag	false
Entity Central Index Key	0001962845
Document Period End Date	Oct. 31, 2023
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity File Number	001-41749

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) ¥ in Thousands, $ in Thousands	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Apr. 30, 2023 JPY (¥)
Current assets:
Cash and cash equivalents	¥ 2,420,667	$ 15,982	¥ 2,135,513
Accounts receivable – trade	13,614	90	198,892
Inventories	180,022	1,189	123,119
Deferred offering costs			260,689
Prepaid expenses and other current assets	355,076	2,344	326,202
Total current assets	2,969,379	19,605	3,044,415
Property and equipment, net	490,358	3,238	507,778
Intangible assets, net	15,212	100	14,068
Operating lease right-of-use assets, net (Note 5)	466,432	3,080	46,046
Other assets	141,026	931	105,347
Total assets	4,082,407	26,954	3,717,654
Current liabilities:
Accounts payable	156,194	1,031	549,449
Accrued expenses and other current liabilities	194,890	1,287	203,842
Current portion of long-term borrowings	1,013,332	6,690	1,013,332
Total current liabilities	1,364,416	9,008	1,766,623
Long-term borrowings, net of current portion	14,447	95	21,113
Operating lease liabilities, net of current portion (Note 5)	459,071	3,031	5,956
Other liabilities	18,400	122	25,536
Total liabilities	1,856,334	12,256	1,819,228
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, no par value; 52,142,400 shares authorized; 13,035,600 shares issued and outstanding at April 30, 2023, and 14,702,267 shares issued and outstanding at October 31, 2023	1,074,970	7,097	100,000
Additional paid-in capital	6,683,382	44,127	6,180,678
Accumulated deficit	(5,532,279)	(36,526)	(4,382,252)
Total stockholders’ equity	2,226,073	14,698	1,898,426
Total liabilities and stockholders’ equity	¥ 4,082,407	$ 26,954	¥ 3,717,654

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parentheticals) - ¥ / shares	Oct. 31, 2023	Apr. 30, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in Yen per share and Dollars per share)
Common stock, shares authorized	52,142,400	52,142,400
Common stock, shares issued	14,702,267	13,035,600
Common stock, shares outstanding	14,702,267	13,035,600

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥) ¥ / shares shares	Oct. 31, 2023 USD ($) $ / shares shares	Oct. 31, 2022 JPY (¥) ¥ / shares shares
Revenue:
Total revenue	¥ 299,139	$ 1,975	¥ 158,639
Costs and Expenses:
Research and development	279,436	1,845	339,283
Selling, general and administrative expenses	1,051,796	6,944	643,892
Total costs and expenses	1,474,762	9,737	1,030,349
Loss from operations	(1,175,623)	(7,762)	(871,710)
Interest expense	(15,811)	(104)	(13,423)
Other income, net	41,407	273	133
Loss before income taxes	(1,150,027)	(7,593)	(885,000)
Income tax expense
Net loss	¥ (1,150,027)	$ (7,593)	¥ (885,000)
Weighted-average shares outstanding used to compute net loss per share, basic (in Shares)	13,455,691	13,455,691	6,000,000
Net loss per share attributable to common stockholders, basic (in Yen per share and Dollars per share) | (per share)	¥ (85.47)	$ (0.56)	¥ (147.5)
Services
Revenue:
Total revenue	¥ 73,430	$ 485	¥ 121,866
Costs and Expenses:
Total cost	16,710	111	23,121
Products
Revenue:
Total revenue	225,709	1,490	36,773
Costs and Expenses:
Total cost	¥ 126,820	$ 837	¥ 24,053

Condensed Statements of Opera_2

Condensed Statements of Operations (Unaudited) (Parentheticals)	6 Months Ended
	Oct. 31, 2023 ¥ / shares shares	Oct. 31, 2023 $ / shares shares	Oct. 31, 2022 ¥ / shares shares
Income Statement [Abstract]
Weighted-average shares outstanding used to compute net loss per share, diluted	13,455,691	13,455,691	6,000,000
Net loss per share attributable to common stockholders, diluted (in Yen per share and Dollars per share) | (per share)	¥ (85.47)	$ (0.56)	¥ (147.50)

Condensed Statements of Stockho

Condensed Statements of Stockholders’ Equity (Unaudited) ¥ in Thousands, $ in Thousands	Series C convertible Preferred Stock JPY (¥) shares	Series B convertible Preferred Stock JPY (¥) shares	Series BB convertible Preferred Stock JPY (¥) shares	Series A convertible Preferred Stock JPY (¥) shares	Series AA convertible Preferred Stock JPY (¥) shares	Common Stock JPY (¥) shares	Common Stock USD ($) shares	Additional Paid-In Capital JPY JPY (¥)	Additional Paid-In Capital JPY USD ($)	Accumulated Deficit JPY JPY (¥)	Accumulated Deficit JPY USD ($)	JPY (¥)	USD ($)
Balance (in Dollars)						¥ 100,000		¥ 3,946,038		¥ (2,416,761)		¥ 1,629,277
Balance at Apr. 30, 2022						¥ 100,000		3,946,038		(2,416,761)		1,629,277
Balance (in Shares) at Apr. 30, 2022 | shares		2,212,800	242,400	2,760,000	666,600	6,000,000	6,000,000
Issuance of convertible preferred stock, net	¥ 1,089,380							1,079,724				2,169,104
Issuance of convertible preferred stock, net (in Shares) | shares	1,153,800
Stock-based compensation								65,537				65,537
Net loss										(885,000)		(885,000)
Balance at Oct. 31, 2022	¥ 1,089,380					¥ 100,000		5,091,299		(3,301,761)		2,978,918
Balance (in Shares) at Oct. 31, 2022 | shares	1,153,800	2,212,800	242,400	2,760,000	666,600	6,000,000	6,000,000
Balance (in Dollars)	¥ 1,089,380					¥ 100,000		5,091,299		(3,301,761)		2,978,918
Balance (in Dollars)						100,000		6,180,678		(4,382,252)		1,898,426
Balance at Apr. 30, 2023						¥ 100,000		6,180,678		(4,382,252)		1,898,426
Balance (in Shares) at Apr. 30, 2023 | shares						13,035,600	13,035,600
Issuance of common stock upon initial public offering, net of offering costs (Note 1)						¥ 974,970		496,115				1,471,085
Issuance of common stock upon initial public offering, net of offering costs (Note 1) (in Shares) | shares						1,666,667	1,666,667
Stock-based compensation								3,355				3,355
Vesting of option purchase consideration								3,234				3,234
Net loss										(1,150,027)		(1,150,027)	$ (7,593)
Balance at Oct. 31, 2023						¥ 1,074,970	$ 7,097	6,683,382	$ 44,127	(5,532,279)	$ (36,526)	2,226,073	14,698
Balance (in Shares) at Oct. 31, 2023 | shares						14,702,267	14,702,267
Balance (in Dollars)						¥ 1,074,970	$ 7,097	¥ 6,683,382	$ 44,127	¥ (5,532,279)	$ (36,526)	¥ 2,226,073	$ 14,698

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 JPY (¥)
Cash flows from operating activities:
Net loss	¥ (1,150,027)	$ (7,593)	¥ (885,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	101,331	669	38,896
Stock-based compensation	3,355	22	32,768
Foreign exchange losses (gains)	(35,940)	(237)	4,043
Asset retirement obligation accretion	490	3	332
Changes in operating assets and liabilities:
Accounts receivable-trade	185,278	1,223	(39,831)
Inventories	(56,903)	(376)	(30,511)
Prepaid expenses and other current assets	(25,179)	(166)	(13,250)
Operating lease right-of-use assets, net	66,973	442	30,909
Other assets	(35,681)	(236)	(1,678)
Accounts payable	(382,095)	(2,523)	24,123
Accrued expenses and other current liabilities	(16,123)	(105)	9,501
Operating lease liabilities	(40,544)	(268)	(31,968)
Net cash used in operating activities	(1,385,065)	(9,145)	(861,666)
Cash flows from investing activities:
Purchases of property and equipment	(64,797)	(428)	(47,351)
Purchases of intangible assets	(3,963)	(26)	(1,970)
Net cash used in investing activities	(68,760)	(454)	(49,321)
Cash flows from financing activities:
Proceeds from borrowings			250,000
Repayments of borrowings	(6,666)	(44)
Repayments of finance lease liabilities	(8,022)	(53)	(6,972)
Payments of offering costs	(237,222)	(1,566)	(24,151)
Proceeds from issuance of convertible preferred stock			2,171,103
Proceeds from issuance of common stock upon initial public offering - net of underwriting discounts and commissions	1,949,940	12,874
Net cash provided by financing activities	1,698,030	11,211	2,389,980
Effect of exchange rate changes on cash and cash equivalents	40,949	270
Net increase in cash and cash equivalents	285,154	1,882	1,478,993
Cash and cash equivalents at beginning of period	2,135,513	14,100	1,795,963
Cash and cash equivalents at end of period	2,420,667	15,982	3,274,956
Non-cash investing and financing activities:
Operating lease right-of-use assets obtained in exchange for lease liabilities	487,359	3,218	2,716
Property and equipment acquired under finance leases			3,996
Purchases of property and equipment included in accounts payable	21,089	139	8,332
Offering costs included in accounts payable and, accrued expenses and other current liabilities	¥ 23,025	$ 152	¥ 23,417

Description of Business

Description of Business	6 Months Ended
	Oct. 31, 2023
Description of Business [Abstract]
Description of Business	1. Description of Business Pixie Dust Technologies, Inc. (the “Company”) was incorporated in Japan in May 2017. Since its inception, the Company has conducted research, technology development and business development based on research created through industry-academic collaborations. Additionally, the Company builds mechanisms for continuous social implementation in response to the issues and needs that exist in society. The core technology of the Company is “wave control technology” that has the potential for a variety of applications, including technologies to enhance personal care and quality of life, and for sensing and controlling space. The Company continuously performs research and development activities, and then manufactures and sells the products resulting from that research and development. The Company’s fiscal year-end is April 30. The Company is headquartered in Japan and operates in one segment. For the six months ended October 31, 2022 and 2023, there are no subsidiaries consolidated within the Company. ● Initial Public Offering (“IPO”) On August 3, 2023, the Company completed its IPO, in which the Company issued and sold 1,666,667 shares of common stock represented by American Depositary Shares (ADSs) at a price to the public of $9.00 per ADS. Each ADS represents one common stock. The Company’s ADSs are traded on the Nasdaq Capital Market under the symbol “PXDT”. The Company received aggregate net proceeds of ¥1,471,085 thousand ($9,713 thousand) after deducting underwriting discounts, commissions and other offering costs. On July 31, 2023, the Company executed a contract agreeing to issue warrants to the Representative of the underwriters to purchase 50,000 ADSs, which is equal to 3% of the 1,666,667 ADSs sold in the Offering (“Representative's Warrants”). The Representative’s Warrant is exercisable for five years from the commencement of sales of the offering. The initial exercise price of warrants is $11.25 per ADS. The fair value of the warrants has been estimated using the Black-Scholes Option Pricing Model, which requires assumptions including the Company’s estimate of expected volatility of 42% and risk-free interest rate of 4.3% at the time of valuation. The Company estimated the fair value of the warrants at the IPO date to be ($152 thousand) which was included in the offering costs as a reduction from the proceeds of the offering. The Representative’s Warrants are recorded in the accrued expenses and other current liabilities in the Condensed Balance Sheets. These estimates involve inherent uncertainties and the application of management’s judgment and classified as Level 3 of the fair value hierarchy. The Representative’s Warrants are recorded as liabilities measured at fair value at each reporting date, with change in fair value recorded in earnings. There was no significant change in the assumptions and the change in fair value of the Representative’s Warrants from the IPO date to October 31, 2023 was immaterial. The issuance of the Representative’s one of the Representative’s Warrants were legally issued or outstanding as of October 31, 2023.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Oct. 31, 2023
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies ● Basis of Presentation and Preparation The accompanying condensed interim financial statements for the six months ended October 31, 2022 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Condensed Balance Sheet as of April 30, 2023 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company believes that the disclosures are adequate to make the disclosed information not misleading. These unaudited condensed interim financial statements should be read in conjunction with the Company's audited financial statements and the notes thereto included in its Annual Report on Form 20-F as of and for the year ended April 30, 2023, which was filed with the SEC on November 16, 2023. The condensed interim financial statements and the accompanying notes have been prepared on the same basis as the annual financial statements, and management believes that these condensed interim financial statements include all adjustments, normal and recurring in nature, that are necessary to present fairly the financial position of the Company as of October 31, 2023, the results of operations for the six months ended October 31, 2022 and 2023 and cash flows for the six months ended October 31, 2022 and 2023. The results of operations for the interim period are not necessarily indicative of the results to be expected for the fiscal year ending April 30, 2024 or for any other future annual or interim period. ● Revenue Recognition Service Revenue: Commissioned research and development The Company derives its service revenue primarily by providing commissioned research and development services. For the commissioned research and development service contracts with the customers contain an acceptance right, which is considered a requirement to conclude the customer has obtained control of the submitted deliverables such as reports, prototypes and digital source code, the revenue is recognized at a point in time, when the deliverables are delivered, and acceptance is completed. For other service contracts, revenue is recognized over time using the “as invoiced” practical expedient and thereby recognized in the amount to which the entity has a right to invoice. Solution Services The Company receives compensation from customers through providing its solution services, primarily hackke services and VUEVO service. For these services, the Company identifies two performance obligations which are sales of dedicated devices and providing the system usage service to the customer. The transaction price is allocated among the performance obligations based on the estimated standalone selling price (“SSP”) of each obligation. For hackke service, the Company determines the SSP by using the adjusted market assessment approach utilizing similar equipment for the dedicated device and the residual approach for the system usage service. For VUEVO service, the SSP is determined using the cost plus margin approach. For the sales of dedicated devices, the revenue is recognized at a point in time when the devices are delivered and acceptance is completed and included in product revenue. For system usage services, revenue is recognized on a monthly basis as access rights are granted on a monthly basis and included in service revenue. Guest Speaker Services Guest speaker services are provided by the Company’s management for several media and external events managed by a third party. This service helps the Company promote its business. Revenue from guest speaker services is recognized at a point in time when the service is delivered. Product Revenue: Product sales are primarily comprised of kikippa, SonoRepro and iwasemi. Products are either sold directly to customers through e-commerce platforms, to intermediaries or directly to businesses. The Company’s product sale contracts only offer standard assurance-type warranties which are not accounted for as a separate performance obligation and do not contain acceptance clauses. The standard terms and conditions of sale do not allow for product returns other than warranty, with the exception of limited rights of return through certain e-commerce platforms. Sales returns are recorded as a reduction of revenue and cost of sales and are estimated and recorded based on historical sales and returns information. An estimated refund liability along with a right to recover assets are recorded for future product returns. As of October 31, 2023, the Company had a refund liability of ¥1,324 thousand ($9 thousand) included in accrued expense and other current liabilities in the Condensed Balance Sheets. The Company generally does not provide discounts and sales incentives that are contingent on future events. Revenue from e-commerce sales is recognized either at the time of shipment or at the time of delivery of the product to the end customer, depending on the terms of the contracts. The Company elected the practical expedient to account for shipping and handling activities that occur after the customer has obtained control of goods as a fulfillment activity. For products sold directly to businesses, the Company recognizes revenue from product sales to businesses at the point of delivery of the product to the business. All contracts with businesses have fixed consideration. The revenue generated from certain product rental arrangements were immaterial. During the six months ended October 31, 2023, the Company recognized first product sales of kikippa. The kikippa products are first sold to an intermediary which is identified as the Company’s customer. The Company recognizes product revenue at the time of delivery of the product to the intermediary, upon transferring control of the goods. The intermediary resells kikippa to the end user; however, control is transferred to the intermediary upon delivery of the product to the intermediary as evidenced by the intermediary’s ability to direct the use of and obtain substantially all of the remaining benefits from the performance obligation. The Company is the principal for the transactions with the intermediary and recognizes revenue on a gross basis. Additionally, there is no right of return for delivered products to the intermediary and payment to the Company is not contingent on sales to an end user. ● Liquidity and Going Concern The Company has incurred recurring loss from operations and negative cash flows from operating activities since inception. The Company incurred net losses of ¥1,150,027 thousand ($7,593 thousand) and negative cash flows from operations of ¥1,385,065 thousand ($9,145 thousand) for the six months ended October 31, 2023. As of October 31, 2023, the Company had an accumulated deficit of ¥5,532,279 thousand ($36,526 thousand) and cash and cash equivalents of ¥2,420,667 thousand ($15,982 thousand). The Company does not expect that its cash and cash equivalents as of October 31, 2023 will enable it to fund its operating expenses, debt obligations and capital expenditures for at least 12 months following the date of issuance of these condensed interim financial statements. As the Company focuses on developing and commercializing its own products, the Company has devoted substantial resources to research and development testing, and commercialization of its products. These operating costs have adversely affected and may continue to adversely impact financial performance. Furthermore, the outstanding principal borrowings of ¥1,000,000 thousand ($6,602 thousand) will mature on February 29, 2024. These conditions, among others, raise substantial doubt about the ability of the Company to continue as a going concern. The continuation as a going concern is dependent upon the Company’s ability to meet its financial requirements, raise additional capital and the success of its future operations. Management plans to alleviate the conditions that raise substantial doubt by raising additional capital through the issuance of common stock, including a follow-on public offering, other equity or debt financings or refinancing of existing debt obligations. Lastly, management has the ability to manage liquidity through the timing and extent of spending related to research and development, advertising and other discretionary operating expenses. However, the Company’s ability to issue equity securities or obtain debt financing on acceptable terms, or at all, will depend on, among other things, its financial performance, general economic factors, including inflation and then-current interest rates, the condition of the credit and capital markets and other events, some of which may be beyond the Company’s control. There are currently no written agreements in place for such funding or issuance of securities and there can be no assurance that such plans will be effectively implemented. Accordingly, the Company has concluded that substantial doubt exists about the Company’s ability to continue as a going concern for a period of at least 12 months following the issuance date of these condensed interim financial statements. The Company’s condensed interim financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. The condensed interim financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above. ● Convenience Translation The functional and reporting currency of the Company is the Japanese yen (JPY), the currency of the country in which the Company is incorporated and principally operates. Translations of the Condensed Balance Sheets, the Condensed Statements of Operations, Stockholders’ Equity and Cash Flows from JPY into US$ as of and for the six-month periods ended October 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=JPY151.46, representing the index rates stipulated by the federal reserve board the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on October 31, 2023. No representation is made that the JPY amounts could have been, or could be, converted, realized or settled into US$ at that rate on October 31, 2023, or at any other rate. ● Use of Estimates The preparation of these condensed interim financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed interim financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in the condensed interim financial statements include, but are not limited to, impairment of long-lived assets, revenue recognition, measuring the fair value of warrant liabilities, measuring operating lease right-of-use assets and operating lease liabilities and valuation of deferred tax assets. Actual results could materially differ from the Company’s estimates, and there may be changes to the estimates in future periods. Management bases these estimates and assumptions that it believes reasonable under the circumstances. ● Risks and Uncertainties The Company is subject to a number of risks similar to other companies in the development stage, including, but not limited to, its limited operating history, competition from other companies, limited access to additional funds, dependence on key personnel and management of potential rapid growth. To address these risks, the Company must, among other things, develop its customer base, implement and successfully execute its business and marketing strategy, develop follow-on products, provide superior customer service and attract, retain, and motivate qualified personnel. There can be no guarantee that the Company will be successful in addressing these or other such risks. The Company generated 55% and 15% of its total revenue from commissioned research and development fees from its partners for the six months ended October 31, 2022 and 2023 respectively. The Company launched multiple products from the second half of the fiscal year 2023 and on, which resulted in product sales accounting for 75% of the Company’s total revenue in the year ended October 31, 2023. For the six months ended October 31, 2023, one customer accounted for approximately 48.3% of our total revenue. The Company’s customers are primarily located in Japan. ● Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2016-13 introduced a new credit loss methodology, the Current Expected Credit Losses (“CECL”) methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to maturity debt securities, trade receivables and other receivables measured at amortized cost at the time the financial asset is originated or acquired. Subsequent to the issuance of ASU 2016-13, the FASB issued several additional ASUs to clarify implementation guidance, provide narrow-scope . The Company’s expected loss allowance methodology is developed using an aging method and historical loss rates, as well as current economic conditions and expectations of future economic conditions considering economic variables such as gross domestic product and interest rates. The Company has determined that ASU 2016-13 had

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Oct. 31, 2023
Fair Value Measurements [Abstract]
Fair Value Measurements	3. Fair Value Measurements The Company applies the provisions of Accounting Standards Codification (“ Fair Value Measurement Assets and liabilities are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 — Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Certain assets, including the right-of-use assets, property and equipment and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. For the six months ended October 31, 2022 and 2023, no impairments were identified on those assets required to be measured at fair value on a non-recurring basis. ● Fair Value of Financial Instruments The Company’s financial instruments include cash equivalents, accounts receivable-trade, accounts payable, accrued expenses, accrued warrants and long-term borrowings. The carrying values of the Company’s financial instruments, excluding long-term borrowings, approximate their fair value due to the short-term nature of those instruments. The carrying value of time deposits of ¥50,002 thousand and ¥500,436 thousand ($3,304 thousand) as of April 30, 2023 and October 31, 2023, respectively, which approximates the fair value, was included in the cash and cash equivalents in the Condensed Balance Sheets. The fair value of time deposits is based on the discounted value of contractual cash flows discounted at a rate currently offered for deposits of similar remaining maturities and is considered Level 2. The fair value of long-term borrowings is determined using the present value of future cash flows based on the borrowing rates currently available for debt with similar terms and maturities and is considered Level 2. The carrying value of long-term borrowings approximates the fair value at each balance sheet date because the contractual interest rate of the debt approximates the market interest rate at which the Company can borrow similar debt. For discussion of the Representative’s Warrants, see Note 1.

Inventories

Inventories	6 Months Ended
	Oct. 31, 2023
Inventoryt [Abstract]
Inventories	4. Inventories Inventories are comprised as follows as of April 30, 2023 and October 31, 2023: Finished goods include iwasemi products, the dedicated location measurement devices required to provide hackke services, SonoRepro devices and VUEVO devices. Work in process mainly consists of items related to the assembly of the devices. Raw materials include components related to hackke and SonoRepro. There is no reserve as of April 30, 2023 and October 31, 2023. As of April 30, 2023 October 31, 2023 JPY JPY US$ (in thousands) Finished goods ¥ 118,984 ¥ 175,018 $ 1,156 Work-in-process 37 37 0 Raw materials 4,098 4,967 33 Total ¥ 123,119 ¥ 180,022 $ 1,189

Leases

Leases	6 Months Ended
	Oct. 31, 2023
Leases [Abstract]
Leases	5. Leases New Office Lease On February 28, 2023, the Company signed a lease agreement for the new head office with a commencement date of June 1, 2023 and an expiration date of May 31, 2028, without an option to renew. This resulted in increases to the operating lease ROU asset of ¥485,848 thousand ($3,208 thousand) and operating lease liability of ¥485,848 thousand ($3,208 thousand) on June 1, 2023, which was measured using the Company’s incremental borrowing rate of 2.95%. The security deposit of ¥137,562 thousand ($908 thousand) was also recorded to the other assets, non-current, on the Condensed Balance Sheets as of October 31, 2023. The previous lease contract for the existing office will terminate on December 31, 2023. The components of the operating lease expenses reflected in the condensed statements of operations for the six months ended October 31, 2022 and 2023 were as follows: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Fixed lease cost ¥ 46,193 ¥ 74,275 $ 490 Variable lease cost 2,231 2,381 17 Short-term cost 32 60 0 Total ¥ 48,456 ¥ 76,716 $ 507 Supplemental information related to operating leases is as follows: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Cash paid for amounts included in the measurement of lease liabilities ¥ 46,193 ¥ 74,275 $ 490 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 2,716 487,359 3,218 Weighted average remaining lease term (in years) 13.6 4.5 N/A Weighted average discount rate-operating lease 2.25 % 2.95 % N/A Maturity analysis of future minimum lease payments under non-cancellable operating leases subsequent to October 31, 2023 are as follows: JPY US$ (in thousands) Year ending April 30, 2024 (remainder) ¥ 17,031 $ 112 2025 117,810 778 2026 139,615 922 2027 137,057 905 2028 136,956 904 Total 548,469 3,621 Less: Interest component (39,171 ) (258 ) Present value of minimum less payments ¥ 509,298 $ 3,363

Borrowings

Borrowings	6 Months Ended
	Oct. 31, 2023
Borrowings [Abstract]
Borrowings	6. Borrowings Long-term borrowings consisted of the following as of April 30, 2023 and October 31, 2023: As of April 30, 2023 October 31, 2023 JPY JPY US$ (in thousands) Long term borrowings, unsecured, maturing serially through 2023-2026, (weighted average: April 2023 — 2.95%, October 2023 — 2.95%) ¥ 1,034,445 ¥ 1,027,779 $ 6,785 Less: current portion (1,013,332 ) (1,013,332 ) (6,690 ) Long-term borrowings, net of current portion ¥ 21,113 ¥ 14,447 $ 95 The long-term borrowings accrue interest using fixed interest rates of 1.70% - 3.00% per annum as of April 30, 2023 and October 31, 2023. However, a certain borrowing is exempt from interest payments until November 29, 2023, due to the Tokyo Metropolitan Government’s interest subsidy policy for COVID-19. The Company has an unsecured borrowing which allows it to borrow up to ¥1,000,000 thousand ($6,602 thousand) in installments, provided that the Company meets certain financial performance targets. As of April 30, 2023 and October 31, 2023, the Company was fully funded under the borrowing facility. Debt issuance costs related to these borrowings are immaterial. Annual maturities for the years subsequent to October 31, 2023 are as follows: JPY US$ (in thousands) Year ending April 30, 2024 (remainder) (1) ¥ 1,006,666 $ 6,646 2025 13,332 88 2026 7,781 51 Total ¥ 1,027,779 $ 6,785 (1) Of the amounts due in 2024, ¥1,000,000 thousand ($6,602 thousand) is due on February 29, 2024 and the remaining ¥6,666 thousand ($44 thousand) is comprised of six monthly payments of ¥1,111 thousand ($7 thousand) each month.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Oct. 31, 2023
Commitments and Contingencies [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies From time to time, the Company may be involved in litigation related to claims that arise in the ordinary course of its business activities. The Company accrues for these matters when it is probable that losses will be incurred and these losses can be reasonably estimated. Management does not expect any liabilities from claims to have a material adverse effect on its financial position or the results of operations.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Oct. 31, 2023
Revenue Recognition [Abstract]
Revenue Recognition	8. Revenue Recognition Disaggregation of Revenue The following table provides disaggregated revenue by major source for the following periods: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Commissioned research and development ¥ 86,980 ¥ 45,699 $ 302 Solution services 14,186 12,595 83 Guest speaker services 16,603 15,136 100 Membership services 4,097 — — Product sales 36,773 225,709 1,490 Total revenue ¥ 158,639 ¥ 299,139 $ 1,975 Contract Balance Contract balances typically arise when there is a timing difference between the transfer of control to the customer and the receipt of consideration. The Company records accounts receivable when it has the unconditional right to issue an invoice and receive payment. With respect to payment terms, payments for all service revenue streams are generally collected in the following month from the invoice date. For product sales directly to businesses, the payment term is typically thirty days. For e-commerce product sales, the payment term is within a month. Certain product and service contracts require nonrefundable advance payments from the customer. If the Company receives payments before the performance obligation is satisfied, contract liabilities are recorded. Contract liabilities are included in accrued expenses and other current liabilities on the Condensed Balance Sheets and are expected to be recognized as revenue within one year. There are no significant financing components because the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service is short-term. The Company applied the practical expedient available under ASC 606 that permits the Company not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The following table summarizes the change in contract liabilities for the six months ended October 31, 2022 and 2023: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Beginning balance ¥ 12,572 ¥ 4,668 $ 31 Revenue earned (7,673 ) (9,657 ) (64 ) Deferral of revenue 22,982 11,901 79 Ending balance ¥ 27,881 ¥ 6,912 $ 46 The Company did not incur any sales commission plans and third-party referrals that meet the requirements to be capitalized, and therefore, there were no capitalized contract costs as of October 31, 2022 and 2023.

Other Income

Other Income	6 Months Ended
	Oct. 31, 2023
Other Income [Abstract]
Other income	9. Other income Other income consists of the following: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Interest income ¥ 11 ¥ 2,557 $ 17 Subsidy income 1,364 1,980 13 Foreign exchange (losses) gains, net (4,043 ) 35,940 237 Other, net 2,801 930 6 Total other income ¥ 133 ¥ 41,407 $ 273

Income Taxes

Income Taxes	6 Months Ended
	Oct. 31, 2023
Income Taxes [Abstract]
Income Taxes	10. Income Taxes The Company calculates the tax expense (benefit) for condensed interim financial statement periods using an estimated annual effective tax rate. The Company recorded no

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Oct. 31, 2023
Net Loss Per Share [Abstract]
Net Loss Per Share	11. Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands, except share and per share data) Common Stock Numerator: Net loss ¥ (885,000 ) ¥ (1,150,027 ) $ (7,593 ) Net loss attributable to stockholders (885,000 ) (1,150,027 ) (7,593 ) Denominator: Weighted average shares outstanding used to compute net loss per share, basic and diluted 6,000,000 13,455,691 13,455,691 Basic and diluted ¥ (147.50 ) ¥ (85.47 ) $ (0.56 ) The following potentially dilutive securities have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect. As of October 31, 2022 2023 Options and warrants 1,282,800 1,302,800 Series C convertible preferred stock* 1,153,800 — Series B convertible preferred stock* 2,212,800 — Series BB convertible preferred stock* 242,400 — Series A convertible preferred stock* 2,760,000 — Series AA convertible preferred stock* 666,600 — * On March 22, 2023, the Series A, AA, B, BB and C convertible preferred stock were converted to common stock upon the resolution of the board of directors.

Subsequent Events

Subsequent Events	6 Months Ended
	Oct. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events The subsequent events were evaluated through January 31, 2024, the date the condensed interim financial statements were issued. On November 22, 2023, the Company issued 162,600 shares of common stock related to the exercise of stock options for proceeds of ¥29,814 thousands ($197 thousand).

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Oct. 31, 2023
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation and Preparation	Basis of Presentation and Preparation The accompanying condensed interim financial statements for the six months ended October 31, 2022 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Condensed Balance Sheet as of April 30, 2023 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company believes that the disclosures are adequate to make the disclosed information not misleading. These unaudited condensed interim financial statements should be read in conjunction with the Company's audited financial statements and the notes thereto included in its Annual Report on Form 20-F as of and for the year ended April 30, 2023, which was filed with the SEC on November 16, 2023. The condensed interim financial statements and the accompanying notes have been prepared on the same basis as the annual financial statements, and management believes that these condensed interim financial statements include all adjustments, normal and recurring in nature, that are necessary to present fairly the financial position of the Company as of October 31, 2023, the results of operations for the six months ended October 31, 2022 and 2023 and cash flows for the six months ended October 31, 2022 and 2023. The results of operations for the interim period are not necessarily indicative of the results to be expected for the fiscal year ending April 30, 2024 or for any other future annual or interim period.
Revenue Recognition	Revenue Recognition Service Revenue: Commissioned research and development The Company derives its service revenue primarily by providing commissioned research and development services. For the commissioned research and development service contracts with the customers contain an acceptance right, which is considered a requirement to conclude the customer has obtained control of the submitted deliverables such as reports, prototypes and digital source code, the revenue is recognized at a point in time, when the deliverables are delivered, and acceptance is completed. For other service contracts, revenue is recognized over time using the “as invoiced” practical expedient and thereby recognized in the amount to which the entity has a right to invoice. Solution Services The Company receives compensation from customers through providing its solution services, primarily hackke services and VUEVO service. For these services, the Company identifies two performance obligations which are sales of dedicated devices and providing the system usage service to the customer. The transaction price is allocated among the performance obligations based on the estimated standalone selling price (“SSP”) of each obligation. For hackke service, the Company determines the SSP by using the adjusted market assessment approach utilizing similar equipment for the dedicated device and the residual approach for the system usage service. For VUEVO service, the SSP is determined using the cost plus margin approach. For the sales of dedicated devices, the revenue is recognized at a point in time when the devices are delivered and acceptance is completed and included in product revenue. For system usage services, revenue is recognized on a monthly basis as access rights are granted on a monthly basis and included in service revenue. Guest Speaker Services Guest speaker services are provided by the Company’s management for several media and external events managed by a third party. This service helps the Company promote its business. Revenue from guest speaker services is recognized at a point in time when the service is delivered. Product Revenue: Product sales are primarily comprised of kikippa, SonoRepro and iwasemi. Products are either sold directly to customers through e-commerce platforms, to intermediaries or directly to businesses. The Company’s product sale contracts only offer standard assurance-type warranties which are not accounted for as a separate performance obligation and do not contain acceptance clauses. The standard terms and conditions of sale do not allow for product returns other than warranty, with the exception of limited rights of return through certain e-commerce platforms. Sales returns are recorded as a reduction of revenue and cost of sales and are estimated and recorded based on historical sales and returns information. An estimated refund liability along with a right to recover assets are recorded for future product returns. As of October 31, 2023, the Company had a refund liability of ¥1,324 thousand ($9 thousand) included in accrued expense and other current liabilities in the Condensed Balance Sheets. The Company generally does not provide discounts and sales incentives that are contingent on future events. Revenue from e-commerce sales is recognized either at the time of shipment or at the time of delivery of the product to the end customer, depending on the terms of the contracts. The Company elected the practical expedient to account for shipping and handling activities that occur after the customer has obtained control of goods as a fulfillment activity. For products sold directly to businesses, the Company recognizes revenue from product sales to businesses at the point of delivery of the product to the business. All contracts with businesses have fixed consideration. The revenue generated from certain product rental arrangements were immaterial. During the six months ended October 31, 2023, the Company recognized first product sales of kikippa. The kikippa products are first sold to an intermediary which is identified as the Company’s customer. The Company recognizes product revenue at the time of delivery of the product to the intermediary, upon transferring control of the goods. The intermediary resells kikippa to the end user; however, control is transferred to the intermediary upon delivery of the product to the intermediary as evidenced by the intermediary’s ability to direct the use of and obtain substantially all of the remaining benefits from the performance obligation. The Company is the principal for the transactions with the intermediary and recognizes revenue on a gross basis. Additionally, there is no right of return for delivered products to the intermediary and payment to the Company is not contingent on sales to an end user.
Liquidity and Going Concern	Liquidity and Going Concern The Company has incurred recurring loss from operations and negative cash flows from operating activities since inception. The Company incurred net losses of ¥1,150,027 thousand ($7,593 thousand) and negative cash flows from operations of ¥1,385,065 thousand ($9,145 thousand) for the six months ended October 31, 2023. As of October 31, 2023, the Company had an accumulated deficit of ¥5,532,279 thousand ($36,526 thousand) and cash and cash equivalents of ¥2,420,667 thousand ($15,982 thousand). The Company does not expect that its cash and cash equivalents as of October 31, 2023 will enable it to fund its operating expenses, debt obligations and capital expenditures for at least 12 months following the date of issuance of these condensed interim financial statements. As the Company focuses on developing and commercializing its own products, the Company has devoted substantial resources to research and development testing, and commercialization of its products. These operating costs have adversely affected and may continue to adversely impact financial performance. Furthermore, the outstanding principal borrowings of ¥1,000,000 thousand ($6,602 thousand) will mature on February 29, 2024. These conditions, among others, raise substantial doubt about the ability of the Company to continue as a going concern. The continuation as a going concern is dependent upon the Company’s ability to meet its financial requirements, raise additional capital and the success of its future operations. Management plans to alleviate the conditions that raise substantial doubt by raising additional capital through the issuance of common stock, including a follow-on public offering, other equity or debt financings or refinancing of existing debt obligations. Lastly, management has the ability to manage liquidity through the timing and extent of spending related to research and development, advertising and other discretionary operating expenses. However, the Company’s ability to issue equity securities or obtain debt financing on acceptable terms, or at all, will depend on, among other things, its financial performance, general economic factors, including inflation and then-current interest rates, the condition of the credit and capital markets and other events, some of which may be beyond the Company’s control. There are currently no written agreements in place for such funding or issuance of securities and there can be no assurance that such plans will be effectively implemented. Accordingly, the Company has concluded that substantial doubt exists about the Company’s ability to continue as a going concern for a period of at least 12 months following the issuance date of these condensed interim financial statements. The Company’s condensed interim financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. The condensed interim financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.
Convenience Translation	Convenience Translation The functional and reporting currency of the Company is the Japanese yen (JPY), the currency of the country in which the Company is incorporated and principally operates. Translations of the Condensed Balance Sheets, the Condensed Statements of Operations, Stockholders’ Equity and Cash Flows from JPY into US$ as of and for the six-month periods ended October 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=JPY151.46, representing the index rates stipulated by the federal reserve board the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on October 31, 2023. No representation is made that the JPY amounts could have been, or could be, converted, realized or settled into US$ at that rate on October 31, 2023, or at any other rate.
Use of Estimates	Use of Estimates The preparation of these condensed interim financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed interim financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in the condensed interim financial statements include, but are not limited to, impairment of long-lived assets, revenue recognition, measuring the fair value of warrant liabilities, measuring operating lease right-of-use assets and operating lease liabilities and valuation of deferred tax assets. Actual results could materially differ from the Company’s estimates, and there may be changes to the estimates in future periods. Management bases these estimates and assumptions that it believes reasonable under the circumstances.
Risks and Uncertainties	Risks and Uncertainties The Company is subject to a number of risks similar to other companies in the development stage, including, but not limited to, its limited operating history, competition from other companies, limited access to additional funds, dependence on key personnel and management of potential rapid growth. To address these risks, the Company must, among other things, develop its customer base, implement and successfully execute its business and marketing strategy, develop follow-on products, provide superior customer service and attract, retain, and motivate qualified personnel. There can be no guarantee that the Company will be successful in addressing these or other such risks. The Company generated 55% and 15% of its total revenue from commissioned research and development fees from its partners for the six months ended October 31, 2022 and 2023 respectively. The Company launched multiple products from the second half of the fiscal year 2023 and on, which resulted in product sales accounting for 75% of the Company’s total revenue in the year ended October 31, 2023. For the six months ended October 31, 2023, one customer accounted for approximately 48.3% of our total revenue. The Company’s customers are primarily located in Japan.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2016-13 introduced a new credit loss methodology, the Current Expected Credit Losses (“CECL”) methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to maturity debt securities, trade receivables and other receivables measured at amortized cost at the time the financial asset is originated or acquired. Subsequent to the issuance of ASU 2016-13, the FASB issued several additional ASUs to clarify implementation guidance, provide narrow-scope . The Company’s expected loss allowance methodology is developed using an aging method and historical loss rates, as well as current economic conditions and expectations of future economic conditions considering economic variables such as gross domestic product and interest rates. The Company has determined that ASU 2016-13 had

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Oct. 31, 2023
Inventoryt [Abstract]
Schedule of Inventories	As of April 30, 2023 October 31, 2023 JPY JPY US$ (in thousands) Finished goods ¥ 118,984 ¥ 175,018 $ 1,156 Work-in-process 37 37 0 Raw materials 4,098 4,967 33 Total ¥ 123,119 ¥ 180,022 $ 1,189

Leases (Tables)

Leases (Tables)	6 Months Ended
	Oct. 31, 2023
Leases [Abstract]
Schedule of Operating Lease Expenses	The components of the operating lease expenses reflected in the condensed statements of operations for the six months ended October 31, 2022 and 2023 were as follows: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Fixed lease cost ¥ 46,193 ¥ 74,275 $ 490 Variable lease cost 2,231 2,381 17 Short-term cost 32 60 0 Total ¥ 48,456 ¥ 76,716 $ 507
Schedule of Supplemental Information Related to Operating Leases	Supplemental information related to operating leases is as follows: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Cash paid for amounts included in the measurement of lease liabilities ¥ 46,193 ¥ 74,275 $ 490 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 2,716 487,359 3,218 Weighted average remaining lease term (in years) 13.6 4.5 N/A Weighted average discount rate-operating lease 2.25 % 2.95 % N/A
Schedule of Maturity Analysis of Future Minimum Lease Payments	Maturity analysis of future minimum lease payments under non-cancellable operating leases subsequent to October 31, 2023 are as follows: JPY US$ (in thousands) Year ending April 30, 2024 (remainder) ¥ 17,031 $ 112 2025 117,810 778 2026 139,615 922 2027 137,057 905 2028 136,956 904 Total 548,469 3,621 Less: Interest component (39,171 ) (258 ) Present value of minimum less payments ¥ 509,298 $ 3,363

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Oct. 31, 2023
Borrowings [Abstract]
Schedule of Long-Term Borrowings	Long-term borrowings consisted of the following as of April 30, 2023 and October 31, 2023: As of April 30, 2023 October 31, 2023 JPY JPY US$ (in thousands) Long term borrowings, unsecured, maturing serially through 2023-2026, (weighted average: April 2023 — 2.95%, October 2023 — 2.95%) ¥ 1,034,445 ¥ 1,027,779 $ 6,785 Less: current portion (1,013,332 ) (1,013,332 ) (6,690 ) Long-term borrowings, net of current portion ¥ 21,113 ¥ 14,447 $ 95
Schedule of Annual Maturities Years	Annual maturities for the years subsequent to October 31, 2023 are as follows: JPY US$ (in thousands) Year ending April 30, 2024 (remainder) (1) ¥ 1,006,666 $ 6,646 2025 13,332 88 2026 7,781 51 Total ¥ 1,027,779 $ 6,785 (1) Of the amounts due in 2024, ¥1,000,000 thousand ($6,602 thousand) is due on February 29, 2024 and the remaining ¥6,666 thousand ($44 thousand) is comprised of six monthly payments of ¥1,111 thousand ($7 thousand) each month.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Oct. 31, 2023
Revenue Recognition [Abstract]
Schedule of Disaggregated Revenue by Major Source	The following table provides disaggregated revenue by major source for the following periods: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Commissioned research and development ¥ 86,980 ¥ 45,699 $ 302 Solution services 14,186 12,595 83 Guest speaker services 16,603 15,136 100 Membership services 4,097 — — Product sales 36,773 225,709 1,490 Total revenue ¥ 158,639 ¥ 299,139 $ 1,975
Schedule of Change in Contract Liabilities	The following table summarizes the change in contract liabilities for the six months ended October 31, 2022 and 2023: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Beginning balance ¥ 12,572 ¥ 4,668 $ 31 Revenue earned (7,673 ) (9,657 ) (64 ) Deferral of revenue 22,982 11,901 79 Ending balance ¥ 27,881 ¥ 6,912 $ 46

Other Income (Tables)

Other Income (Tables)	6 Months Ended
	Oct. 31, 2023
Other Income [Abstract]
Schedule of Other Income	Other income consists of the following: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands) Interest income ¥ 11 ¥ 2,557 $ 17 Subsidy income 1,364 1,980 13 Foreign exchange (losses) gains, net (4,043 ) 35,940 237 Other, net 2,801 930 6 Total other income ¥ 133 ¥ 41,407 $ 273

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Oct. 31, 2023
Net Loss Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders	The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Six Months Ended October 31, 2022 2023 JPY JPY US$ (in thousands, except share and per share data) Common Stock Numerator: Net loss ¥ (885,000 ) ¥ (1,150,027 ) $ (7,593 ) Net loss attributable to stockholders (885,000 ) (1,150,027 ) (7,593 ) Denominator: Weighted average shares outstanding used to compute net loss per share, basic and diluted 6,000,000 13,455,691 13,455,691 Basic and diluted ¥ (147.50 ) ¥ (85.47 ) $ (0.56 )
Schedule of Dilutive Securities have been Excluded from the Calculation of Diluted Net Loss Per Share	The following potentially dilutive securities have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect. As of October 31, 2022 2023 Options and warrants 1,282,800 1,302,800 Series C convertible preferred stock* 1,153,800 — Series B convertible preferred stock* 2,212,800 — Series BB convertible preferred stock* 242,400 — Series A convertible preferred stock* 2,760,000 — Series AA convertible preferred stock* 666,600 — * On March 22, 2023, the Series A, AA, B, BB and C convertible preferred stock were converted to common stock upon the resolution of the board of directors.

Description of Business (Detail

Description of Business (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands			6 Months Ended
	Jul. 31, 2023 JPY (¥) shares	Jul. 31, 2023 USD ($) $ / shares shares	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Aug. 03, 2023 $ / shares shares
Description of Business [Line Items]
Number of segment			1	1
Shares issued (in Shares)					1,666,667
Price per share (in Dollars per share) | $ / shares					$ 9
Net proceeds | ¥			¥ 1,471,085
Shares purchase (in Shares)	50,000	50,000
Representatives warrants of percentage	3%	3%
American depositary shares (in Shares)	1,666,667	1,666,667
Initial exercise price of warrants (in Dollars per share) | $ / shares		$ 11.25
Expected volatility	42%	42%
Risk free interest rate	4.30%	4.30%
IPO [Member]
Description of Business [Line Items]
Net proceeds | $				$ 9,713
Fair value of warrants	¥ 23,025	$ 152

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 JPY (¥)	Feb. 24, 2024 JPY (¥)	Feb. 24, 2024 USD ($)	Oct. 31, 2023 USD ($)	Apr. 30, 2023 JPY (¥)
Summary of Significant Accounting Policies [Line Items]
Refund liability	¥ 1,324					$ 9
Net losses	(1,150,027)	$ (7,593)	¥ (885,000)
Net cash used in operating activities	(1,385,065)	$ (9,145)	¥ (861,666)
Accumulated deficit	(5,532,279)					(36,526)	¥ (4,382,252)
Cash and cash equivalents	¥ 2,420,667					$ 15,982	¥ 2,135,513
Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Summary of Significant Accounting Policies [Line Items]
Revenue percentage	48.30%	48.30%
Customer [Member] | Research and Development Fees [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Summary of Significant Accounting Policies [Line Items]
Revenue percentage	15%	15%	55%
Customer [Member] | Product [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Summary of Significant Accounting Policies [Line Items]
Revenue percentage	75%	75%
United States of America, Dollars [Member]
Summary of Significant Accounting Policies [Line Items]
Foreign currency exchange rate	1					1
Japan, Yen [Member]
Summary of Significant Accounting Policies [Line Items]
Foreign currency exchange rate	151.46					151.46
Forecast [Member]
Summary of Significant Accounting Policies [Line Items]
Outstanding principal borrowings				¥ 1,000,000	$ 6,602

Fair Value Measurements (Detail

Fair Value Measurements (Details) ¥ in Thousands, $ in Thousands	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Apr. 30, 2023 JPY (¥)
Fair Value Measurements [Abstract]
Carrying value of time deposits	¥ 500,436	$ 3,304	¥ 50,002

Inventories (Details) - Schedul

Inventories (Details) - Schedule of Inventories ¥ in Thousands, $ in Thousands	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Apr. 30, 2023 JPY (¥)
Schedule of Inventories [Abstract]
Finished goods	¥ 175,018	$ 1,156	¥ 118,984
Work-in-process	37	0	37
Raw materials	4,967	33	4,098
Total	¥ 180,022	$ 1,189	¥ 123,119

Leases (Details)

Leases (Details) ¥ in Thousands, $ in Thousands	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Jun. 01, 2023 JPY (¥)	Jun. 01, 2023 USD ($)	Apr. 30, 2023 JPY (¥)
Leases [Abstract]
Operating lease ROU asset	¥ 466,432	$ 3,080	¥ 485,848	$ 3,208	¥ 46,046
Operating lease liability	509,298	3,363	¥ 485,848	$ 3,208
Borrowing rate of percentage			2.95%	2.95%
Security deposit	¥ 137,562	$ 908

Leases (Details) - Schedule of

Leases (Details) - Schedule of Operating Lease Expenses ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 JPY (¥)
Schedule of Operating Lease Expenses [Abstract]
Fixed lease cost	¥ 74,275	$ 490	¥ 46,193
Variable lease cost	2,381	17	2,231
Short-term cost	60	0	32
Total	¥ 76,716	$ 507	¥ 48,456

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of Supplemental Information Related to Operating Leases ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 JPY (¥)
Disclosure Text Block Abstract
Operating Lease, Lease Income, Lease Payments	¥ 74,275	$ 490	¥ 46,193
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	¥ 487,359	$ 3,218	¥ 2,716
Operating Lease, Weighted Average Remaining Lease Term	4 years 6 months	4 years 6 months	13 years 7 months 6 days
Operating Lease, Weighted Average Discount Rate, Percent	2.95%	2.95%	2.25%

Leases (Details) - Schedule o_3

Leases (Details) - Schedule of Maturity Analysis of Future Minimum Lease Payments ¥ in Thousands, $ in Thousands	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Jun. 01, 2023 JPY (¥)	Jun. 01, 2023 USD ($)
Schedule of Maturity Analysis of Future Minimum Lease Payments [Abstract]
2024 (remainder)	¥ 17,031	$ 112
2025	117,810	778
2026	139,615	922
2027	137,057	905
2028	136,956	904
Total	548,469	3,621
Less: Interest component	(39,171)	(258)
Present value of minimum less payments	¥ 509,298	$ 3,363	¥ 485,848	$ 3,208

Borrowings (Details)

Borrowings (Details) ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Feb. 29, 2024 JPY (¥)	Feb. 29, 2024 USD ($)	Oct. 31, 2023 USD ($)	Jun. 01, 2023	Apr. 30, 2023
Borrowings [Line Items]
Fixed interest rates						2.95%
Remaining due amounts	¥ 6,666				$ 44
Minimum [Member]
Borrowings [Line Items]
Fixed interest rates	3%				3%		1.70%
Borrowings [Member]
Borrowings [Line Items]
Unsecured borrowing	¥ 1,000,000				$ 6,602
Long Term Borrowings [Member]
Borrowings [Line Items]
Maturity date	Feb. 29, 2024	Feb. 29, 2024
Due payments	¥ 1,111	$ 7
Forecast [Member]
Borrowings [Line Items]
Unsecured borrowing			¥ 1,000,000	$ 6,602

Borrowings (Details) - Schedule

Borrowings (Details) - Schedule of Long-Term Borrowings - Long Term Borrowings [Member] ¥ in Thousands, $ in Thousands	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Apr. 30, 2023 JPY (¥)
Schedule of Long-Term Borrowings [Abstract]
Long term borrowings, unsecured, maturing serially through 2023-2026, (weighted average: April 2023 — 2.95%, October 2023 — 2.95%)	¥ 1,027,779	$ 6,785	¥ 1,034,445
Less: current portion	(1,013,332)	(6,690)	(1,013,332)
Long-term borrowings, net of current portion	¥ 14,447	$ 95	¥ 21,113

Borrowings (Details) - Schedu_2

Borrowings (Details) - Schedule of Long-Term Borrowings (Parentheticals)	Oct. 31, 2023	Apr. 30, 2023
Long Term Borrowings [Member]
Schedule of Long-Term Borrowings [Abstract]
Weighted average	2.95%	2.95%

Borrowings (Details) - Schedu_3

Borrowings (Details) - Schedule of Annual Maturities Years - Oct. 31, 2023 ¥ in Thousands, $ in Thousands		JPY (¥)	USD ($)
Schedule of Annual Maturities Years [Abstract]
2024 (remainder)	[1]	¥ 1,006,666	$ 6,646
2025		13,332	88
2026		7,781	51
Total		¥ 1,027,779	$ 6,785
[1]Of the amounts due in 2024, ¥1,000,000 thousand ($6,602 thousand) is due on February 29, 2024 and the remaining ¥6,666 thousand ($44 thousand) is comprised of six monthly payments of ¥1,111 thousand ($7 thousand) each month.

Revenue Recognition (Details) -

Revenue Recognition (Details) - Schedule of Disaggregated Revenue by Major Source ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 JPY (¥)
Disaggregation of Revenue [Line Items]
Total revenue	¥ 299,139	$ 1,975	¥ 158,639
Commissioned research and development [Member]
Disaggregation of Revenue [Line Items]
Total revenue	45,699	302	86,980
Solution services [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,595	83	14,186
Guest speaker services [Member]
Disaggregation of Revenue [Line Items]
Total revenue	15,136	100	16,603
Membership services [Member]
Disaggregation of Revenue [Line Items]
Total revenue			4,097
Product sales [Member]
Disaggregation of Revenue [Line Items]
Total revenue	¥ 225,709	$ 1,490	¥ 36,773

Revenue Recognition (Details)_2

Revenue Recognition (Details) - Schedule of Change in Contract Liabilities ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 JPY (¥)
Schedule of Change in Contract Liabilities [Abstract]
Beginning balance	¥ 4,668	$ 31	¥ 12,572
Revenue earned	(9,657)	(64)	(7,673)
Deferral of revenue	11,901	79	22,982
Ending balance	¥ 6,912	$ 46	¥ 27,881

Other Income (Details) - Schedu

Other Income (Details) - Schedule of Other Income ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 JPY (¥)
Schedule of Other Income [Abstract]
Interest income	¥ 2,557	$ 17	¥ 11
Subsidy income	1,980	13	1,364
Foreign exchange (losses) gains, net	35,940	237	(4,043)
Other, net	930	6	2,801
Total other income	¥ 41,407	$ 273	¥ 133

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Oct. 31, 2023 JPY (¥)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 JPY (¥)
Income Taxes [Abstract]
Income tax expense

Net Loss Per Share (Details) -

Net Loss Per Share (Details) - Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	6 Months Ended
	Oct. 31, 2023 JPY (¥) ¥ / shares shares	Oct. 31, 2023 USD ($) $ / shares shares	Oct. 31, 2022 JPY (¥) ¥ / shares shares
Numerator:
Net loss	¥ (1,150,027)	$ (7,593)	¥ (885,000)
Net loss attributable to stockholders	¥ (1,150,027)	$ (7,593)	¥ (885,000)
Denominator:
Weighted average shares outstanding used to compute net loss per share, basic (in Shares)	13,455,691	13,455,691	6,000,000
Basic (in Yen per share and Dollars per share) | (per share)	¥ (85.47)	$ (0.56)	¥ (147.5)

Net Loss Per Share (Details) _2

Net Loss Per Share (Details) - Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Parentheticals)	6 Months Ended
	Oct. 31, 2023 ¥ / shares shares	Oct. 31, 2023 $ / shares shares	Oct. 31, 2022 ¥ / shares shares
Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders [Abstract]
Weighted average shares outstanding used to compute net loss per share, diluted	13,455,691	13,455,691	6,000,000
Diluted (in Yen per share and Dollars per share) | (per share)	¥ (85.47)	$ (0.56)	¥ (147.50)

Net Loss Per Share (Details) _3

Net Loss Per Share (Details) - Schedule of Dilutive Securities have been Excluded from the Calculation of Diluted Net Loss Per Share - shares		6 Months Ended
		Oct. 31, 2023	Oct. 31, 2022
Options and warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options and warrants		1,302,800	1,282,800
Series C Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options and warrants	[1]		1,153,800
Series B Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options and warrants	[1]		2,212,800
Series BB Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options and warrants	[1]		242,400
Series A Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options and warrants	[1]		2,760,000
Series AA Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options and warrants	[1]		666,600
[1]On March 22, 2023, the Series A, AA, B, BB and C convertible preferred stock were converted to common stock upon the resolution of the board of directors.

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] ¥ in Thousands, $ in Thousands	Nov. 22, 2023 JPY (¥) shares	Nov. 22, 2023 USD ($) shares
Subsequent Events (Details) [Line Items]
Company issued shares	162,600	162,600
Exercise of stock value	¥ 29,814	$ 197