CTW Cayman (CTW) Registration Filing summary

Company overview and business model

• Operates a global web-based gaming platform (G123.jp) focused on free-to-play games inspired by Japanese animation IPs, offering instant access without downloads or registration.

• Core customers are game developers, to whom it provides IP licensing, distribution, marketing, localization, and customer support services.

• Revenue is generated through a revenue-sharing model, retaining about 80% of gross in-game purchases after royalty costs, with advances provided to developers recouped from future revenue.

• Holds exclusive distribution rights for most games for three years and partners with 33 animation IP holders, including major names like KADOKAWA and Warner Bros Japan.

• Asset-light model, focusing on platform support and distribution rather than direct game development, enabling high margins and scalability.

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).

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

• ROAS: 112.6% (six months ended Jan 2025), 110.7% (2024), 131.2% (2023).

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

Use of proceeds and capital allocation

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

• Management has significant discretion over use of funds and may adjust allocation as business needs evolve.