Micware Co (MWC) Registration filing summary

Company overview and business model

• Provides software development and IT solutions for automotive and mobility sectors, focusing on in-vehicle infotainment (IVI) systems, navigation software, and location-based smartphone applications.

• Operates through three segments: Software Defined Vehicles (SDV), Location-Based Services (LBS), and Other (including B2C apps and overseas services).

• Revenue streams include software development services, licensing of proprietary modules, and after-sales/maintenance services.

• Maintains strong relationships with major Japanese OEMs and has subsidiaries in the U.S., Thailand, and Germany.

Financial performance and metrics

• For the six months ended August 31, 2025: revenue JPY10,261.1 million (~$69.9M), net income JPY702.9 million (~$4.8M).

• FY ended February 28, 2025: revenue JPY21,119.3 million (~$140.2M), net income JPY1,330.6 million (~$8.8M).

• Revenue breakdown (FY2025): 81.4% software development, 15.0% licensing, 3.6% other services.

• Major customers (FY2025): Honda Group (51.5%), Toyota Group (14.3%), Uni Electronics (14.0%).

• Gross profit margin improved from 30.4% (FY2024) to 35.0% (FY2025).

• Cash and cash equivalents as of August 31, 2025: JPY8,663.7 million (~$59.0M).

Use of proceeds and capital allocation

• Estimated net proceeds of ~$25.1M (or $29.3M if over-allotment exercised) based on $8.00/ADS.

• 44% allocated to DSMM project and micAuto-PF platform expansion; 36% for general corporate purposes; 12% for strategic investments in SDV/LBS; 8% for marketing and advertising.

• No current commitments for strategic investments; management retains discretion over allocation.