AoharuNEXT Inc. (Headquarters: Chuo-ku, Tokyo; President and CEO: Rion Moriyama; hereinafter "the Company") deeply apologizes for the significant inconvenience and concern caused to our customers due to product quality issues with the FocusRay launched on March 18, 2026 (JST).

We are providing this first report to outline the background and our response policy. Additionally, today we submitted a official recall report for the items listed in "Section 4. Voluntary Recall" to the Ministry of Economy, Trade and Industry (METI). We sincerely apologize to affected customers and request that you submit your product for inspection and repair as soon as possible. Individual notifications will also be sent.

• March 18, 2026 (JST): Launched the FocusRay project on Kickstarter.

• August 13, 2026 (JST): Announced a major design change for the FocusRay Wireless Model, replacing the camera sensor to stabilize wireless video transmission. The FocusRay Wired Model specifications remained unchanged at this point.

• August 30, 2026 (JST): Began initial shipments of the FocusRay Wired Model.

• Manufacturing Issue Details: The issue where the USB Type-C cable was difficult to connect to the top port was identified during development and resolved in design. However, during the final casing order placement in August 2026 (JST), the Company mistakenly placed the order using unrevised design data.

• Emergency Measure & Impact: Re-ordering correct parts would have delayed shipment until September 2026 (JST) or later. Wishing to avoid further delays following the wireless model's specification changes, the Company opted to use the unrevised casings by removing certain camera components and securing them with strong double-sided tape. A total of 120 units (including unshipped units) were produced using this method, resulting in severe quality degradation.

• Difficulty connecting the included USB cable due to a recessed USB Type-C port.

• Loose internal circuit boards due to poor adhesion.

• Off-center camera positioning caused by improper attachment of the camera board.

• Wiring flaws obstructing infrared LED illumination.

• Improper infrared LED emission due to casing design limitations.

• Note: Feedback regarding the bolt screw lengths on the dedicated mounting bracket will be addressed separately. Further internal investigations are ongoing.

Immediate Measures:

• Temporary Suspension of Shipments: All shipments are suspended until fully resolved.

• Enhanced Customer Support: Expanded support operations to address all customer inquiries and concerns.

• Thorough Investigation: Fast-tracking comprehensive root-cause analysis and operational planning.

Future Schedule & Steps (Detailed schedule to be published on September 10, 2026 [JST]):

• Official Recall and Repair of FocusRay Wired Model: Executing a statutory recall and repair program. Manufacturing and shipments will resume only after casing and assembly improvements pass verification.

• Executive Explanatory Video/Live Stream: Executive officers will present a comprehensive explanation of the situation and details regarding the FocusRay Wireless Model via video or live broadcast.

• Updates on FocusRay Wireless Model & FocusRay Extension (including FocusRay Plus): Product specifications are under review, similar to the wired model. Shipping dates will be delayed from the original schedule. Updated timelines will be announced once finalized. Core components such as the camera sensor will not be changed.

• Regarding Other Individual Arrangements, Including Refunds

  　As previously announced on Kickstarter, the funds you contributed have already been spent on development and manufacturing costs, as well as various fees.

  
  

  　Our company is committed to fulfilling our responsibility to you by ensuring that the improved product is delivered to you reliably. However, as before, we continue to accept requests for arrangements tailored to your individual circumstances via the contact form on our website.

  
  

Executive Accountability:

To take responsibility for this incident, the President and CEO has offered to voluntarily return executive compensation, which the Company has accepted:

• President & CEO: Voluntary return of 20% of monthly base salary for 3 months.

The recall was officially filed with the Ministry of Economy, Trade and Industry (METI) under the Consumer Product Safety Act as follows:

• Defect Condition: Flaws in casing design and assembly impair internal board durability. Circuit boards may detach during use, potentially causing short circuits from board-to-board contact or broken wiring. In the worst-case scenario, this may cause smoke generation or fire.

• Corrective Action: Replace the casing with a defect-free design and correct assembly and wiring procedures.

Notes:

• Products disassembled or altered by customers may be excluded from free recall repairs.

• The warranty after repair will be 1 year from the date listed on the repair statement.

• The Company will cover all round-trip shipping costs.

• Instructions on how to check lot numbers were published today on the dedicated web page.

• Detailed submission procedures will be published on the dedicated page by September 10, 2026 (JST) and announced via our main website.

• Design Data Management System: Centralize design data versioning and mandate independent cross-verification before placing component orders.

• Pre-Mass Production Testing: Enforce mandatory prototype verification testing (evaluating appearance, fit, and durability) prior to initiating mass production.

• Clear Design Change Approval Process: Require formal documentation and executive approval for any deviation from initial design specifications.

• Prioritizing Quality Over Timelines: Reaffirming a company-wide policy that no product will be shipped unless it fully satisfies quality standards, regardless of schedule pressures. Immediate customer disclosure will be required if delays occur.