Lead Real Estate Co., Ltd 6-K, filed Jun 30, 2025

Lead Real Estate Co., Ltd (LRE)

6-K 2025-06-30 For: 2025-06-30

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Added on April 09, 2026

About this 6-K

Lead Real Estate Co., Ltd filed this 6-K on June 30, 2025.

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Exhibit No		Description
99.1		Interim report of the Company for the six months ended December 31, 2024

	Lead Real Estate Co., Ltd

Date: June 30, 2025	By:	/s/ Eiji Nagahara
	Name:	Eiji Nagahara
	Title:	Representative Director, President, and Chief Executive Officer

CONTENTS		PAGE(S)
UNAUDITED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 (UNAUDITED) AND JUNE 30, 2024		F-2

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 AND 2023		F-3

NOTE 1 – REVISION OF UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME		F-4

	December 31, 2024			June 30, 2024
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	¥	346,260		¥	1,300,684
Accounts receivable, net		30,630			22,859
Real estate inventory		11,686,479			9,267,825
Contract assets		244,197			236,499
Prepaid and other current assets		489,312			493,819
Total current assets		12,796,878			11,321,686
Property and equipment, net		6,655,037			5,449,101
Intangible asset, net		44,593			54,138
Investments in marketable securities		20,496			20,844
Right-of-use assets, operating lease, net		181,593			154,613
Investments		46,946			46,394
Other assets		186,016			170,588
Total assets	¥	19,931,559		¥	17,217,364
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	¥	709,231		¥	602,013
Current portion of notes payable		10,054,610			6,815,181
Contract liabilities		285,143			130,259
Current portion of operating lease liabilities		91,360			67,938
Accrued expenses and other current liabilities		192,810			356,856
Total current liabilities		11,333,154			7,972,247
Notes payable, net of current portion		4,601,919			4,598,151
Deferred tax liabilities, net		75,610			85,018
Operating lease liabilities, net of current portion		94,884			91,471
Other liabilities		235,131			233,109
Total liabilities		16,340,698			12,979,996
COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY
Ordinary shares, 50,000,000 shares authorized, 15,628,000 shares issued and 13,641,900 shares outstanding as of June 30, 2025 and December 31, 2024, with no stated par value		1,206,765			1,206,765
Retained earnings		2,514,576			3,159,815
Treasury stock, at cost, 1,986,100 shares as of June 30, 2025 and December 31, 2024		(154,121	)		(154,121	)
Non-controlling interest		(8,058	)		(7,558	)
Accumulated translation gain		31,699			32,467
Total shareholders' equity		3,590,861			4,237,368
Total liabilities and shareholders' equity	¥	19,931,559		¥	17,217,364

	Six Months Ended December 31,
	2024			2023
				(Revised)
Revenue:
Real estate sales	¥	4,812,944		¥	6,438,863
Other revenue		218,905			197,535
Total revenue		5,031,849			6,636,398
Expenses:
Cost of sales - real estate		4,309,767			5,469,184
Cost of sales - other		125,049			120,785
Selling, general, and administrative		1,191,386			1,114,467
Total expenses		5,626,202			6,704,436
Operating loss		(594,353	)		(68,038	)
Other income (expense):
Interest expenses		(23,301	)		(10,008	)
Other, net		(8,639	)		199,970
Total other income (expense), net		(31,940	)		189,962
Income before income taxes		(626,293	)		121,924
Income taxes		(21,980	)		51,702
Net income		(604,313	)		70,222
Net loss attributable to the noncontrolling interests		-			(219	)
Net income (loss) attributable to ordinary shareholders		(604,313	)		70,441
Foreign currency translation loss		(276	)		-
Total comprehensive income (loss)	¥	(604,589	)	¥	70,441
Earnings per share:
Basic	¥	(44.32	)	¥	5.16
Diluted	¥	(44.32	)	¥	5.16
Weighted average shares outstanding:
Basic		13,641,900			13,641,900
Diluted		13,641,900			13,641,900

(i)	Revenue and cost of sales were understated due to not properly recognizing the revenue of a construction project and the related cost of sales. Certain payroll cost in selling, general and administrative expenses were reclassified as cost of sales due to the nature of the cost incurred directly related to construction.
(ii)	Selling, general and administrative and other expenses were overstated due to errors in sales commission and valuation of investments in marketable securities.
(iii)	Foreign currency translation loss was overstated due to calculation errors.

	Six Months Ended December 31, 2023
	As originally filed			Adjustments			As revised
Revenue:
Real estate sales	¥	6,411,863			27,000		¥	6,438,863
Other revenue		197,535			-			197,535
Total revenue		6,609,398			27,000			6,636,398
Expenses:
Cost of sales - real estate		5,419,874			49,310			5,469,184
Cost of sales – other		120,785			-			120,785
Selling, general, and administrative		1,115,915			(1,448	)		1,114,467
Total expenses		6,656,574			47,862			6,704,436
Operating loss		(47,176	)		(20,862	)		(68,038	)
Other income (expense):
Interest expenses		(10,008	)		-			(10,008	)
Other, net		203,319			(3,349	)		199,970
Total other income, net		193,311			(3,349	)		189,962
Income before income taxes		146,135			(24,211	)		121,924
Income taxes		51,702			-			51,702
Net income		94,433			(24,211	)		70,222
Net loss attributable to the noncontrolling interests		(219	)		-			(219	)
Net income attributable to ordinary shareholders		94,652			(24,211	)		70,441
Foreign currency translation loss		(2,990	)		2,990			-
Total comprehensive income	¥	91,662			(21,221	)	¥	70,441
Earnings per share:
Basic	¥	6.72			(1.56	)	¥	5.16
Diluted	¥	6.72			(1.56	)	¥	5.16
Weighted average shares outstanding:
Basic		13,641,900			13,641,900			13,641,900
Diluted		13,641,900			13,641,900			13,641,900