Notice Regarding the Recognition of an Allowance for Doubtful Accounts (Non-operating Expense)
Kyokuto Co.,Ltd. (filing company), former director
Expenses arising from improper expense reimbursements by a former director and the costs incurred in investigating the matter
¥17 million (recognized as a provision for doubtful accounts under non-operating expenses)
First quarter of the fiscal year ending February 2027
The earnings forecasts for the second quarter and full fiscal year ending February 2027 are currently under review. If revisions become necessary, the Company will make an appropriate disclosure.
¥17 million (the full amount of the receivable to be claimed from the former director; whether there is a risk of non-collection or delayed collection is Not disclosed)
Related procedures
Claim for payment from a former director (whether a lawsuit has been filed or administrative proceedings initiated is Not disclosed)
¥17 million (planned claim amount)
Company response
The former director resigned on 30 April 2026
The Company will claim ¥17 million from the former director and review its earnings forecasts for the second quarter and full fiscal year ending February 2027. If revisions become necessary, the Company will make an appropriate disclosure.
If revisions to the earnings forecasts become necessary, the Company will make an appropriate disclosure (the specific timing is Not disclosed)
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of an Allowance for Doubtful Accounts (Non-operating Expense) |
| Date of occurrence | Early December 2025 (the date the improper expense reimbursements were discovered; the actual dates of the improper expense reimbursements are Not disclosed) |
| Date recognized / date notice received | Early December 2025 (the date the Company became aware of the improper expense reimbursements) |
| Subject Entity | Kyokuto Co.,Ltd. (filing company), former director |
| Cause | Expenses arising from improper expense reimbursements by a former director and the costs incurred in investigating the matter |
| Amount of Impact on Business Performance | ¥17 million (recognized as a provision for doubtful accounts under non-operating expenses) |
| Accounting period in which recognized | First quarter of the fiscal year ending February 2027 |
| Impact on Earnings Forecast | The earnings forecasts for the second quarter and full fiscal year ending February 2027 are currently under review. If revisions become necessary, the Company will make an appropriate disclosure. |
| Type of litigation or proceeding | Claim for payment from a former director (whether a lawsuit has been filed or administrative proceedings initiated is Not disclosed) |
| Claim amount / surcharge amount | ¥17 million (planned claim amount) |
| Amount of receivables at risk of non-collection or delayed collection | ¥17 million (the full amount of the receivable to be claimed from the former director; whether there is a risk of non-collection or delayed collection is Not disclosed) |
| Directors' and officers' liability | The former director resigned on 30 April 2026 |
| Outlook | The Company will claim ¥17 million from the former director and review its earnings forecasts for the second quarter and full fiscal year ending February 2027. If revisions become necessary, the Company will make an appropriate disclosure. |
| Planned follow-up disclosure | If revisions to the earnings forecasts become necessary, the Company will make an appropriate disclosure (the specific timing is Not disclosed) |
Items this document does not state (11)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Company will claim the expenses arising from improper expense reimbursements by a former director, which came to light in early December 2025, as well as the costs of investigating the matter, and will recognize the full amount of the resulting receivable as a provision for doubtful accounts.