LEIFRAS Co., Ltd. Appoints Forvis Mazars as Its Independent Registered Public Accounting Firm

LEIFRAS (Nasdaq: LFS) has appointed Forvis Mazars Japan Audit LLC as its new independent registered public accounting firm, following approvals by its audit and supervisory committee on July 13, 2026 and board of directors on August 14, 2026.

Rhea-AI Summary

LEIFRAS (Nasdaq: LFS) has appointed Forvis Mazars Japan Audit LLC as its new independent registered public accounting firm, following approvals by its audit and supervisory committee on July 13, 2026 and board of directors on August 14, 2026.

The appointment will become effective after the current auditor completes review of Leifras' third-quarter 2026 financial information. According to Leifras, this initiates a phased transition to a unified Japan-U.S. audit framework within a single global audit organization, aiming to streamline regulatory compliance, enhance financial reporting consistency, optimize audit-related costs over the medium to long term, and support a previously announced potential dual listing on the Tokyo Stock Exchange.

Positive

• Forvis Mazars appointed auditor after July 13 and August 14, 2026 approvals
• Unified Japan-U.S. audit framework with a single global audit organization
• Audit cost optimization targeted over the medium to long term
• Governance and reporting focus aligned with potential Tokyo Stock Exchange dual listing

Negative

• None.

News Explained

The approved transition creates a planned one-organization audit structure; any related cost benefit is prospective and intended for governance investment.

The approved appointment would consolidate LEIFRAS's separate U.S. PCAOB audit and Japanese statutory audit under one global audit organization; it becomes effective only after the current auditor reviews third-quarter 2026 financial information.

In practical terms, the disclosure changes the audit structure from two separate firms to coordinated work within a single organization: the PCAOB audit follows U.S. standards, while the statutory audit follows Japan's Companies Act.

The company describes potential audit-cost optimization as a medium- to long-term expectation and says it intends to reinvest any generated savings in accounting infrastructure and governance capabilities.

Argus Aug 25 session

+1.76% close to close Open Argus

Details

News Market Reaction – LFS

On Aug 25, the day this news came out, LFS closed 1.76% above the previous close.

Data tracked by StockTitan Argus for the Aug 25 session.

Key Figures

Board approval date: Aug. 14, 2026 Committee approval date: July 13, 2026 Current audit completion: Third quarter +2 more

Board approval date

Aug. 14, 2026

Approval of Forvis Mazars appointment

Committee approval date

July 13, 2026

Audit and supervisory committee approval

Current audit completion

Third quarter

Appointment becomes effective after review of fiscal 2026 third-quarter financial information

Fiscal year end

December 31, 2026

Fiscal year ending December 31, 2026

Prior audit structure

Two separate audit firms

U.S. PCAOB audit and Japanese statutory audit

Historical Context

5 past events · Latest: Aug 20

5 events

1. Aug 20

   Service contract award

   24h Move

   +4.9%

   Nagakute City awarded Leifras a three-school weekend and holiday club management contract.

2. Aug 19

   Anniversary employee event

   24h Move

   +0.0%

   Leifras hosted Family Day 2026 for employees and their families at headquarters.

3. Aug 13

   Sports ambassador appointment

   24h Move

   -5.2%

   Former Japan national player Yoichiro Kakitani became ambassador for the SIX SHOOT tournament.

4. Aug 12

   Industry symposium conclusion

   24h Move

   +1.3%

   Leifras concluded a school sports development symposium supported by the Japan Sports Agency.

5. Aug 10

   Service contract renewal

   24h Move

   +3.0%

   Tobishima Village renewed Leifras's weekend school club activities contract for a third year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pcaob, dual listing, statutory audit

3 terms

pcaob regulatory

"standards of the Public Company Accounting Oversight Board ("PCAOB")"

The PCAOB (Public Company Accounting Oversight Board) is an independent regulator that inspects and enforces rules for the auditors who check public companies’ financial statements. Think of it as a referee for accountants: it sets standards, reviews audit work, and can punish sloppy or dishonest audits. That matters to investors because trustworthy, well-audited financial reports reduce the risk of surprises and help people make better decisions about buying, holding, or selling stocks.

dual listing financial

"supporting its previously announced potential dual listing on the Tokyo Stock Exchange"

A dual listing is when a company makes the same shares available on two different stock exchanges, often in different countries, so investors can buy and sell the same ownership stake in more than one market—like a shop opening branches in two cities that sell the same product. It matters to investors because it can widen the pool of buyers, make shares easier to trade, expose the stock to different currencies and rules, and create price differences or arbitrage opportunities that affect returns and risk.

View in glossary

statutory audit regulatory

"its statutory audit under the Companies Act of Japan"

A statutory audit is an independent, legally required examination of a company's financial statements and accounting records performed by an external auditor to confirm they follow applicable laws and accounting standards. It matters to investors because it provides an official, third‑party check on the accuracy and completeness of financial reporting—like an independent inspector certifying a building’s safety—helping users of the accounts rely on the numbers for valuations, comparisons, and risk assessment.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Appointment Supports a Unified Japan-U.S. Audit Framework, Enhancing Governance, Operational Efficiency and Long-Term Capital Markets Readiness

TOKYO, Aug. 25, 2026 /PRNewswire/ -- LEIFRAS Co., Ltd. (Nasdaq: LFS) (the "Company" or "Leifras"), a sports and social business company dedicated to youth sports and community engagement and Japan's leading operator of children's sports schools and school club activity support businesses, today announced that its audit and supervisory committee and board of directors, at meetings held on July 13, 2026 and August 14, 2026, respectively, approved the appointment of Forvis Mazars Japan Audit LLC ("Forvis Mazars") as its new independent registered public accounting firm, to be effective following completion of review of the Company's financial information for the third quarter of the fiscal year ending December 31, 2026 by the Company's current independent registered public accounting firm. The appointment marks the commencement of a phased transition toward a unified audit framework across Japan and the United States, strengthening the Company's corporate governance and operational efficiency while supporting its previously announced potential dual listing on the Tokyo Stock Exchange.

Leifras has historically engaged two separate audit firms for its audit conducted in accordance with the standards of the Public Company Accounting Oversight Board ("PCAOB") in the United States and its statutory audit under the Companies Act of Japan. By consolidating its audit activities within a single global audit organization, Leifras expects to strengthen governance oversight, streamline regulatory compliance, improve audit coordination, and enhance the consistency and efficiency of its financial reporting processes.

Forvis Mazars is selected following a comprehensive evaluation of its global audit capabilities, international network, extensive experience serving publicly listed companies, and ability to provide coordinated audit services across multiple jurisdictions. The Company believes that Forvis Mazars' combination of PCAOB expertise and strong understanding of Japan's regulatory environment positions the firm well to support Leifras' continued growth as a public company.

By streamlining audit procedures, Leifras believes the transition will also optimize audit-related costs over the medium to long term. The Company intends to reinvest the cost savings generated through the transition to further improve corporate governance, strengthening its accounting infrastructure and governance capabilities.

Looking ahead, Leifras plans to continue enhancing its governance infrastructure and financial reporting processes in accordance with international best practices. The Company remains committed to delivering sustainable growth while reinforcing the confidence of shareholders, customers, employees, regulators, and local communities it serves.

About LEIFRAS Co., Ltd.
Headquartered in Tokyo, Leifras is a sports and social business company dedicated to youth sports and community engagement. The Company primarily provides services related to the organization and operations of sports schools and sports events for children. As of December 31, 2025, Leifras was recognized as one of Japan's largest operators of children's sports schools in terms of both membership and facilities by Tokyo Shoko Research. The Company's approach to sports education emphasizes the development of non-cognitive skills, following the teaching principle "acknowledge, praise, encourage, and motivate." The holistic approach that integrates physical and mental development sets Leifras apart in the industry. Building upon deep experience and know-how in sports education, Leifras also operates a robust social business sector, dispatching sports coaches to meet various community needs with the aim to promote physical health, social inclusion, and community well-being across different demographics.

For more information, please visit the Company's website: https://ir.leifras.co.jp/.

Forward-Looking Statements
Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC"). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the annual report and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

For more information, please contact:

LEIFRAS Co., Ltd.
Investor Relations Department
Email: IR@leifras.co.jp

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

View original content:https://www.prnewswire.com/news-releases/leifras-co-ltd-appoints-forvis-mazars-as-its-independent-registered-public-accounting-firm-302858610.html

SOURCE LEIFRAS Co., Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did LEIFRAS (Nasdaq: LFS) announce about its auditor on August 25, 2026?

LEIFRAS announced the appointment of Forvis Mazars Japan Audit LLC as its new independent registered public accounting firm. According to LEIFRAS, this follows committee and board approvals in July and August 2026 and will become effective after review of third-quarter 2026 financial information is completed.

When will Forvis Mazars officially become LEIFRAS (LFS) independent registered public accounting firm?

Forvis Mazars will become LEIFRAS' independent registered public accounting firm after the current auditor completes review of third-quarter 2026 financial information. According to LEIFRAS, the appointment was approved in July and August 2026 and forms part of a phased transition to a unified audit framework.

Why did LEIFRAS (LFS) choose Forvis Mazars as its new auditor?

LEIFRAS selected Forvis Mazars after evaluating its global audit capabilities, international network and experience with listed companies. According to LEIFRAS, Forvis Mazars combines PCAOB expertise with knowledge of Japan’s regulatory environment, supporting coordinated audit services across multiple jurisdictions for the company’s ongoing growth as a public company.

How will the Forvis Mazars appointment change LEIFRAS (LFS) audit structure in Japan and the U.S.?

The appointment shifts LEIFRAS from using two separate audit firms to a single global audit organization. According to LEIFRAS, consolidating audits is expected to strengthen governance oversight, streamline regulatory compliance, improve audit coordination, and enhance consistency and efficiency in financial reporting processes across Japan and the United States.

What does the new auditor mean for LEIFRAS (LFS) potential Tokyo Stock Exchange dual listing?

LEIFRAS links the Forvis Mazars appointment to its previously announced potential dual listing on the Tokyo Stock Exchange. According to LEIFRAS, a unified Japan-U.S. audit framework and improved governance and reporting infrastructure are intended to support long-term capital markets readiness, including the potential dual listing.

Does LEIFRAS (LFS) expect cost benefits from consolidating its audits with Forvis Mazars?

LEIFRAS expects to optimize audit-related costs over the medium to long term by streamlining audit procedures. According to LEIFRAS, the company plans to reinvest resulting cost savings into strengthening corporate governance, including enhancing its accounting infrastructure and governance capabilities in line with international best practices.