Impairment losses caused by worsening prospects for monetizing new businesses
First written in FY2023-Q3. 1 of 3 entries say "Materialised", first in FY2023-Q3. Latest entry: FY2026-H1.
The whole theme swung hardest in 2019: 10 of 27 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Against the backdrop of growing demand among companies for AI talent development, from the current interim consolidated accounting period we began planning and providing training and consulting services for developing AI talent, as well as developing and providing training programs, which contributed to earnings. Going forward, we will continue working to establish a sustainable earnings base by leveraging our strengths as a Web3 development company and in AI consulting. As a result, revenue from the Web3 services business for the current interim consolidated accounting period was ¥272 million, up 650.5% year on year, and segment profit was ¥45 million, compared with a loss of ¥371 million in the previous interim consolidated accounting period.」
Compared with the previous disclosure on deteriorating prospects for monetizing new businesses and impairment losses, the company explains that AI talent development services contributed to earnings and that the Web3 services business turned from a loss in the previous corresponding period to a ¥45 million profit. Establishing a sustainable earnings base remains a challenge. - FY2025WorsenedAnnual report
「The assets for the Web3 services business consisted of software development costs and related trademark rights and other assets. Following a review of the business's profitability, we reduced their carrying amount to their recoverable amount because profitability was not expected.」
We recorded impairment losses of ¥171.695 million, including ¥151.385 million in assets for the Web3 services business. The risk associated with the prospects for monetizing the new business has once again materialized as a specific loss. - FY2023-Q3MaterialisedAnnual report
「Assets used in the on-demand economy business consisted of software development costs and related trademark rights associated with a new business. Because the prospects for monetizing the new business were unclear, the carrying amount of these assets was reduced to their recoverable amount.」
Reduced the carrying amount of assets used in the on-demand economy business because the prospects for monetizing the new business were unclear.