CTW Cayman (CTW) Registration Filing summary

Company overview and business model

• Operates a globally accessible, web-based gaming platform (G123.jp) focused on free-to-play games inspired by Japanese animation IPs, removing barriers like downloads and registration.

• Core customers are game developers, to whom it provides IP access, distribution, marketing, and support services in exchange for a share of in-game purchases.

• Holds exclusive or privileged licenses to top Japanese animation IPs, partnering with 33 IP holders as of January 2025, and collaborates with over 48 game developers.

• Asset-light model: does not develop games directly but supports developers, retaining up to 80% of gross in-game purchases after royalties.

• Revenue is highly concentrated among a few top games and developers, with Vivid Army and Queen's Blade Limited Break accounting for significant portions.

Financial performance and metrics

• Revenue for the six months ended January 31, 2025: $41.2M; for years ended July 31, 2024 and 2023: $68.4M and $62.9M, respectively.

• Net income: $0.6M (six months ended Jan 2025), $6.0M (2024), $3.4M (2023).

• Gross in-game purchase amounts: $49.1M (six months ended Jan 2025), $84.5M (2024), $81.4M (2023).

• Cash and cash equivalents as of Jan 31, 2025: $15.1M; net working capital: $6.5M.

• Monthly active users grew from 958,578 in 2021 to 2,301,929 in 2024; paying user base grew from 121,835 to 368,568 in the same period.

• ROAS: 105.8% (six months ended Jan 2025), 99.3% (2024), 130.3% (2023).

Use of proceeds and capital allocation

• Estimated net proceeds of $14.0M (or $16.3M if over-allotment is exercised) based on a $5.5/share midpoint.

• 85% of proceeds allocated for global market expansion; 15% for working capital and general corporate purposes.