Acquisition-related expenses and goodwill amortization burden associated with the acquisition of Accelovance
First written in FY2019-Q1. 3 of 12 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2022-Q2.
Linical moved to the "Worse" side of this theme in 2018.
The whole theme swung hardest in 2019: 2 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2022-Q2MitigatedAnnual report
「As a result, the dispute was resolved, and no further related expenses will be incurred.」
The dispute concerning projects undertaken before the acquisition of LAA was resolved through a settlement, and related expenses will no longer arise, according to the disclosure. - FY2021WorsenedAnnual report
「Arbitration-related expenses 70,811 198,701」
Arbitration-related expenses increased from ¥70.811 million in the previous fiscal year to ¥198.701 million in the current fiscal year. In addition to arbitration-related costs, legal fees and other expenses associated with the acquisition price adjustment were recognized as arbitration-related expenses. - FY2021-Q3Increase in arbitration and acquisition price adjustment costsAnnual report
「Arbitration-related expenses 55,407 107,673」
Arbitration-related expenses increased from ¥55.407 million in the same period of the previous fiscal year to ¥107.673 million in the current period. In addition to arbitration-related costs, legal fees and other expenses related to the acquisition price adjustment were also recognized. - FY2021-Q2Continued recognition of arbitration and acquisition price adjustment costsAnnual report
「For the cumulative consolidated second quarter under review (1 April 2020 to 30 September 2020), in addition to legal fees and other expenses incurred in connection with the arbitration proceedings against Topical Remedy, LLC announced in the 18 October 2019 disclosure titled "Notice Regarding the Filing of Arbitration against an Overseas Subsidiary," the Company had continued discussions with the seller regarding an adjustment to the acquisition price associated with the acquisition of Accelovance, Inc. (hereinafter, ACV). As no agreement was reached, the parties reached a basic agreement that the matter would be decided by an accounting firm as a third-party arbitrator under the merger agreement. Accordingly, legal fees and other expenses arising from the adjustment to the acquisition price with the seller in connection with the ACV acquisition have been recognized as arbitration-related expenses since the first quarter of the current fiscal year.」
Arbitration-related expenses amounted to ¥60.171 million for the cumulative second quarter, with legal fees and other expenses related to the acquisition price adjustment continuing to be recognized in addition to the costs of responding to the existing arbitration. - FY2021-Q1RestatedAnnual report
「The loss attributable to owners of the parent for the quarter was ¥199 million, compared with profit attributable to owners of the parent of ¥15 million in the same period of the previous year, due to legal fees and other expenses related to arbitration concerning projects undertaken by Accelovance, Inc., the predecessor of Linical Accelovance America, Inc. (hereinafter, LAA), before the acquisition, and negotiations with LAA's seller.」
Legal fees and other expenses related to arbitration and negotiations with the seller in connection with the acquisition of LAA continued to arise and have become factors contributing to the net loss. - FY2020Elimination of some acquisition-related expenses and continuation of goodwill amortization and arbitration costsAnnual report
「In addition to the decrease in revenue for the reasons described above, profit fell short of initial expectations because of costs not directly related to operating activities, including legal fees related to arbitration concerning projects undertaken by Accelovance, Inc., the predecessor of Linical Accelovance America, Inc. (hereinafter, LAA), before the acquisition, and negotiations with LAA's seller. Foreign exchange losses also arose on foreign currency deposits and other items as the yen appreciated.」
While the burden of acquisition-related expenses disappeared from the previous fiscal year, goodwill amortization of ¥281.702 million and legal fees related to arbitration and negotiations with the seller continued to weigh on profit. - FY2020-Q2MaterialisedAnnual report
「Although operating profit was generally in line with initial expectations, it amounted to ¥571 million, down 11.7% year on year, due mainly to legal fees incurred in connection with negotiations with the seller regarding the closing price adjustment for the acquisition of the U.S. subsidiary.」
While the burden of one-time acquisition-related expenses from the previous fiscal year ended, legal fees related to negotiations with the seller regarding the closing price adjustment newly arose and became a factor reducing operating profit. - FY2020-Q1MitigatedAnnual report
「Despite higher personnel expenses from upfront investments in human resources, promotions and pay raises, as well as higher rent, operating profit increased 56.9% year on year to ¥129 million because the burden of one-time acquisition-related expenses incurred in connection with the acquisition of LAA in the previous fiscal year had ended and the effects of LAA's cost-cutting measures had begun to emerge.」
The burden of one-time acquisition-related expenses incurred in connection with the acquisition of LAA ended, reducing part of the acquisition-related cost risk. The disclosure does not state that the burden of goodwill amortization or personnel expenses had ended. - FY2019WorsenedAnnual report
「Operating profit for the fiscal year under review decreased by ¥633 million from the previous fiscal year to ¥1,212 million, down 34.3% year on year, because the increase in revenue was smaller than the increases in cost of sales, selling expenses and general and administrative expenses.」
Goodwill amortization associated with the acquisition of LAA amounted to ¥318.292 million for the full year, up from ¥96.824 million in the previous fiscal year. Together with the inclusion of the acquired company's expenses and acquisition-related expenses, it weighed on operating profit, which fell 34.3% for the full year. - FY2019-Q3WorsenedAnnual report
「Although revenue increased year on year, it fell short of initial expectations. As a result, operating profit of ¥1,001 million, down 25.7% year on year, was insufficient to absorb higher personnel expenses from upfront investments in human resources and the consolidation of LAA and its subsidiaries' cost of sales, selling, general and administrative expenses following the acquisition, as well as increased acquisition-related expenses and goodwill amortization burden.」
Acquisition-related expenses and the goodwill amortization burden associated with the acquisition of LAA continued to weigh on operating profit, which fell 25.7% year on year. In addition, goodwill amortization for the cumulative third quarter under review was ¥242.474 million, and business structure improvement expenses were ¥72.094 million, according to the disclosure. - FY2019-Q2Continuation and increase in acquisition-related burdenAnnual report
「Although revenue increased year on year, it fell short of initial expectations. As a result, operating profit of ¥651 million, down 22.3% year on year, was insufficient to absorb higher personnel expenses from upfront investments in human resources and the consolidation of LAA and its subsidiaries' cost of sales, selling, general and administrative expenses following the acquisition, as well as increased acquisition-related expenses and goodwill amortization burden.」
Acquisition-related expenses and the goodwill amortization burden associated with the acquisition of LAA continued through the cumulative second quarter and, together with the inclusion of the acquired company's expenses, became factors reducing operating profit. - FY2019-Q1MaterialisedAnnual report
「Operating profit amounted to ¥86 million, down 65.8% year on year, due to higher personnel expenses from upfront investments in human resources and other factors, as well as the increase in acquisition-related expenses and goodwill amortization burden incurred in connection with the acquisition of Accelovance, Inc. (now Linical Accelovance America, Inc.).」
Acquisition-related expenses and the goodwill amortization burden associated with the acquisition of Accelovance were incurred and became factors reducing operating profit. The disclosed amounts were ¥119.267 million in acquisition-related expenses, ¥3,356 million in goodwill and ¥78.599 million in goodwill amortization for the quarter.