ＨＥＲＯＺ（4382） – [Delayed]Notice of Changes in Uses of Funds

June 10, 2022 Company Name: HEROZ, Inc. Name of Representatives: Takahiro Hayashi, Co-Chief Executive Officer: Stock Code: 4382, TSE Prime Market Contact: Hiroya Mori, Chief Financial Officer (Telephone: +81-3-6435-2495) Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Notice of Changes in Uses of Funds HEROZ, Inc. (the “Company”) hereby announces that its Board of Directors passed a resolution today to make partial changes to uses of raised funds (“Uses of Funds”) disclosed in “Notice of Issuance and Sale of New Shares” dated December 6, 2019, and “Notice of Determination of Issuance Price and Selling Price, etc.” dated December 16, 2019 (the “Public Stock Offering”), as follows. 1. Background The Company executed the Public Stock Offering to fund recruiting-related expenses, investments in servers and other equipment, telecommunications expenses relating to the use of external servers, deposits and expenses, etc. for expansion of office floor space, investments and loans to companies, etc. with peripheral technologies that can be applied to the Company’s business, and necessary working capital to business operations. As disclosed in “Notice of Capital and Business Alliance with VarioSecure Inc.” dated September 10, 2021, the Company acquired VarioSecure Inc. shares pursuant to the capital and business alliance agreement. The Company decided to change Uses of Funds raised in the Public Stock Offering after using raised funds to acquire VarioSecure Inc. shares. With respect to investments and loans to companies, etc. with peripheral technologies that can be applied to the Company’s business, the Company is monitoring market trends on a continuous basis to consider potential investments and loans. However, the Company expects that it will take some time for such projects to materialize, it decided to revise the expected date for such expenditures. 1 Changes made to Uses of Funds are as follows (changes underlined). Specific Uses Amount Expected Date for Expenditures ① Recruiting-related expenses to increase capable ¥1,967 million Dec. 2019~Apr. 2022 ② Investments in servers and other equipment and ¥1,060 million Dec. 2019~Apr. 2022 telecommunications expenses relating to the use ③ Deposits and expenses, etc. for expansion of ¥234 million Dec. 2019~Apr. 2022 ④ Investments and loans to companies, etc. with ¥300 million Dec. 2019~Nov. 2021 peripheral technologies that can be applied to the Company’s business ⑤ Necessary working capital to business operations ¥315 million Dec. 2019~Apr. 2021 Total Uses of Funds ¥3,876 million Specific Uses Amount Expected Date for Expenditures ① Recruiting-related expenses to increase capable ¥130 million Dec. 2019~Apr. 2022 ② Investments in servers and other equipment and ¥590 million Dec. 2019~Apr. 2022 telecommunications expenses relating to the use ③ Deposits and expenses, etc. for expansion of ¥100 million Dec. 2019~Apr. 2022 ④ Acquisition of VarioSecure, Inc. shares ¥1,995 million Sep. 2021 ⑤ Investments and loans to companies, etc. with ¥1,000 million May 2022~Apr. 2025 peripheral technologies that can be applied to the Company’s business ⑥ Necessary working capital to business operations ¥61 million Dec. 2019~Apr. 2021 Total Uses of Funds ¥3,876 million 2. Changes Made AI engineers, etc. of external servers office floor space AI engineers, etc. of external servers office floor space 3. Future Outlook While the impact of these changes on the Company’s performance is expected to be negligible, the Company will make timely disclosures if relevant events that may affect future performance arise.2