Delisting risk from continuing negative net worth, operating losses and negative operating cash flow
First written in FY2017. 1 of 5 entries say "Worsened", first in FY2018-Q3. Latest entry: FY2027-H1.
1 other company's latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「There are no applicable matters.」
No matters concerning the going concern assumption are applicable, and the delisting risk based on the excess of liabilities over assets, operating losses and other factors described in prior years has not re-emerged. - FY2019AchievedAnnual report
「In the securities report for the fiscal year ended January 2018 filed on 26 April 2018, the company confirmed that either operating profit or operating cash flow was positive and that the excess of liabilities over assets had been eliminated, and was therefore removed from the securities designated for the delisting grace period.」
Following confirmation that either operating profit or operating cash flow was positive and that the excess of liabilities over assets had been eliminated, the company was removed from the securities subject to a delisting grace period. - FY2018MitigatedAnnual report
「The operating cash flow deficit that had continued since the preceding fiscal year and earlier turned positive in the current consolidated fiscal year, and the excess of liabilities over assets had been eliminated as of the end of the current consolidated fiscal year.」
The negative operating cash flow and excess of liabilities over assets that had formed the basis for the delisting risk were eliminated. However, the operating loss continues. - FY2018-Q3WorsenedAnnual report
「The capital increase was also intended to eliminate the excess of liabilities over assets for the fiscal year ended January 2018. However, because the existing business and the uniform business operated by the Chinese subsidiary failed to meet their targets during the 9-month period of the current consolidated fiscal year, it has become difficult to eliminate the excess of liabilities over assets by the end of the current consolidated fiscal year using earnings from those businesses.」
Although the capital increase was intended to eliminate the excess of liabilities over assets, the company states that failure to meet the targets of the existing business and the Chinese subsidiary's uniform business has made it difficult to eliminate the excess of liabilities over assets at the end of the fiscal year. - FY2017First statedAnnual report
「The company was in a state of insolvency in the fiscal year ended January 2017. As a result, its listing could be delisted if the excess of liabilities over assets was not eliminated within 1 year. In addition, operating profit and operating cash flow had been negative for 4 consecutive years. Accordingly, the company's listing could be delisted if both operating profit and operating cash flow remained negative in the earnings announcement for the end of the following fiscal year.」
The company explicitly identifies as risks the possibility of delisting based on net liabilities of ¥99.931 million and operating profit and operating cash flow being negative for 4 consecutive years, if the excess of liabilities over assets is not eliminated within 1 year or the performance conditions at the end of the following fiscal year are not met.