Risk of Upfront Investment in New Product Development and New Businesses
First written in FY2016. 5 of 10 entries say "Materialised", first in FY2023. Latest entry: 2026-05-01.
System Location moved to the "Worse" side of this theme in 2023, 2 years before the typical company in this theme (2025).
The whole theme swung hardest in 2019: 6 of 26 companies on the "Worse" side.
10 other companies' latest entry also says "Materialised".
- 2026-05-01MaterialisedOccurring Fact
「By the end of the fiscal year ending March 2026, we had invested in several venture companies. In accordance with accounting standards, we determined that the fair value of certain of the investment securities had declined significantly and was not expected to recover, and therefore recorded impairment losses on investment securities as an extraordinary loss.」
For venture investments intended to create business opportunities and expand collaboration, the company disclosed investment securities impairment losses of ¥134.953 million, further specifying the losses associated with these upfront investments. - FY2025MaterialisedAnnual report
「Because it was determined that the assets recorded as software in progress, buildings, tools, fixtures and equipment, and software would not generate any cash flow in the future, we recognised the entire balance of each account as an impairment loss under extraordinary losses.」
Regarding the risk of upfront investment related to new products and new businesses, the company recognised ¥10.586 million in impairment losses, including software in progress. - FY2025-H1MaterialisedAnnual report
「Impairment of shares in Pyrenee Inc., a startup developing an AI driving assistant, in which the company invested during the first quarter」
The company discloses that it recognised an impairment of shares associated with an investment in a new startup, making the risk of valuation losses arising from upfront investment concrete. - FY2024MaterialisedAnnual report
「Because it was determined that the software-in-progress asset would not generate any cash flow in the future, we recognised the entire balance of software in progress as an impairment loss under extraordinary losses.」
Regarding the risk of upfront investment related to new products and new businesses, the company fully impaired ¥41.6 million in software in progress on the grounds that it would not generate future cash flows. - FY2023MaterialisedAnnual report
「We had recognised goodwill arising from the acquisition of a business by our consolidated subsidiary, ジェイ・コア㈱. Following a review of the business plan, we determined that achieving the revenue initially anticipated would be difficult, and recognised the entire unamortised balance as an impairment loss under extraordinary losses.」
Regarding the risk associated with upfront investment in new product development and new businesses, the company states that it fully impaired ¥2.815 million in goodwill arising from ジェイ・コア㈱'s acquisition of a business because achieving the initially anticipated revenue was considered difficult. - FY2021RestatedAnnual report
「To secure growth for our group, we are developing new business support services for a broad range of automotive-related businesses, not only automotive finance businesses, and are entering new businesses associated with those services. We may make the upfront investments required for such development and new business entry.」
The company is reaffirming the upfront investment associated with developing new services and entering new businesses, as well as the risk of an impact on operating results and financial position if revenue falls short. - FY2020RestatedAnnual report
「To secure growth for our group, we are developing new business support services for a broad range of automotive-related businesses, not only automotive finance businesses, and are entering new businesses associated with those services. We may make the upfront investments required for such development and new business entry.」
The company is reaffirming the upfront investment associated with developing new business support services and entering new businesses, as well as the risk of an impact on operating results and financial position if revenue falls short of expectations. - FY2018RestatedAnnual report
「To secure growth for our group, we are developing new business support services for a broad range of automotive-related businesses, not only automotive finance businesses, and are entering new businesses associated with those services. We may make the upfront investments required for such development and new business entry.」
The company continues to disclose the upfront investment associated with developing new business support services and entering new businesses, as well as the potential impact on operating results and financial position if revenue falls short of expectations. - FY2017RestatedAnnual report
「To secure growth for our group, we are developing new business support services for a broad range of automotive-related businesses, not only automotive finance businesses, and are entering new businesses associated with those services. We may make the upfront investments required for such development and new business entry. If we make such upfront investments and are unable to generate the revenue initially forecast within a certain period, this may adversely affect the operating results and financial position of our group.」
The company continues to disclose the upfront investment associated with developing new business support services and entering new businesses, as well as the risk of revenue falling short of expectations. - FY2016First statedAnnual report
「If we make such upfront investments and are unable to generate the revenue initially forecast within a certain period, this may adversely affect the operating results and financial position of our group.」
The company states that upfront investment associated with developing new services for automotive-related businesses and entering new businesses may result in revenue falling short of expectations.