The cherry blossoms are in full bloom in Akishima City, Tokyo, where the infuse Life Science headquarters laboratory is located. Riding the warm spring breeze, our company also smoothly concluded the first quarter and has entered a new fiscal year.

I would like to share some key highlights with you.

<Financials>

• Q1 sales reached 122% against our target. Our LS (Life Science) consulting division has reliably executed support for identifying global clinical needs—a crucial starting point for developing marketable products—and for creating business plans using tools such as the Business Model Canvas. We have received very high praise for these efforts.
• Despite significant initial investments for two overseas business trips and infrastructure development, our profit resulted in only a slight deficit.
• In Q2, we anticipate a substantial deficit due to partial payment of executive compensation and a large-scale research and development consignment fee. However, this is essentially a temporary outlay for grant-funded research projects.
• We are operating with a very low cash burn rate, and if we exclude the grant-funded portion (effectively setting it to zero), our runway extends to over 200 months.

<Research and Development>

• Our ob-gyn division has been selected for two Tokyo Metropolitan Government subsidies, and we have commenced research and development in earnest.
• Under the "Femtech Development Support and Promotion Project for Women's Empowerment," we will conduct foundational development (functional prototyping) to realize a program medical device for exploring the causes of infertility.
• Under the "Medical Device Industry Entry Promotion Subsidy Project," we will manufacture a prototype of a medical device for treating the causes of infertility identified through the aforementioned subsidy project.
• In Q1, in addition to securing funding for the full-scale prototype development to be carried out in Q2, contracts and preparations with key partners progressed smoothly.

<Market Analysis and Latest Research in Reproductive Medicine>

• Technological innovation in the field of reproductive medicine is globally advancing, particularly in the United States. However, research in Japan, unfortunately, cannot be described as leading globally due to challenges such as difficulty in securing research funding, a limited number of researchers, and a small market size after commercialization.
• On the other hand, AI-driven analysis is progressing rapidly. The research on AI-based IVF planning by Olawande et al. at Eastern London University is of great interest. (DB Olawande, et al. 2025 Jan. AI in IVF. Journal of Gynecology Obstetrics and Human Reproduction. Retrieved from https://doi.org/10.1016/j.jogoh.2024.102903)
• Despite this environment in Japan, remarkable research findings have been published by researchers at Yokohama National University and others. They discovered that in individuals with male infertility, ectopic expression of mitochondrial proteins within sperm is associated with poor sperm activity. This could be a factor in improving the accuracy of IVF. (Fujisawa, et al. 2024 Oct. Ectopic expression of the mitochondrial protein COXFA4L3 in human sperm acrosome and its potential application in the selection of male infertility treatments. Reproductive Medicine and Biology. Retrieved from https://doi.org/10.1002/rmb2.12602)

<Q2 Activities>

• In Q2, we will advance the prototype development of the two projects in our ob-gyn division. We aim to complete the prototype of the device for exploring the causes of infertility to a certain level by the end of June, and for the therapeutic medical device, we aim to finalize the specifications and commence design work.
• The LS Consulting division will continue to support clients in "global product planning for marketable products" and "business model strategy development for selling them." Additionally, we will challenge ourselves with a new service: "introducing overseas partners to expand businesses." Also, we are planning to partner with a NJ/USA-based consultant who is very active, knowledgeable, experienced expert of medical device business development and its strategy building.
• Furthermore, as a new initiative, we have begun research in the cardiovascular field. Through partnering with a leading KOL in Japan, we have embarked on basic research that will be the starting point for developing a world-first medical device. We have high expectations for this idea and technology to become a significant business in the future.

Thank you for your continued support of infuse Life Science.

Sincerely,

Dai Saito

CEO of infuse Life Science, Inc.

At UCSF with my greater boss, Prof. Alan Wu.