Material Doubt Regarding Going Concern
First written in FY2017-Q1. 4 of 15 entries say "Mitigated", first in FY2023-Q1. Latest entry: FY2025.
The whole theme swung hardest in 2025: 26 of 48 companies on the "Worse" side.
21 other companies' latest entry also says "Dropped".
- FY2025DroppedAnnual reportThe body of the consolidated fiscal year report contains no explicit disclosure of events or circumstances that raise substantial doubt about the going-concern assumption, or of material uncertainty related to them.
- FY2025-Q1AdvancedAnnual report
「With respect to borrowings due on 20 May 2024, the Company obtained the consent of all financial institutions to repay the total borrowings of ¥485 million in equal amounts based on each institution's outstanding loan balance and to maintain the post-repayment loan balances through 20 May 2025. The Company has determined that it is in a position to sufficiently fund working capital and investments.」
Although material events regarding the going-concern assumption and the excess of current liabilities over current assets remain, the Company repaid ¥485 million in borrowings that had become due and obtained the consent of all financial institutions to maintain the post-repayment balances through 20 May 2025. Its cash management measures have progressed from the previous fiscal year. - FY2024MitigatedAnnual report
「In the current consolidated fiscal year, the Group implemented business structural reforms and expense reductions under the business restructuring plan formulated in March 2022, recording operating profit of ¥362 million, ordinary profit of ¥336 million and net income attributable to owners of the parent of ¥411 million. However, total current liabilities continue to exceed total current assets, and depending on the support provided by financial institutions, significant concerns may arise regarding cash management. The Group therefore recognizes that events or circumstances exist that raise substantial doubt about the going-concern assumption.」
Although the Company recovered to a full-year profit, net assets of ¥1,642 million and an equity ratio of 19.3%, the excess of current liabilities over current assets and material events continued. The Company obtained the consent of financial institutions to maintain outstanding loan balances after repayment through 20 May 2025 and stated that it had determined that no material uncertainty exists. - FY2024-Q3RestatedAnnual report
「In the previous consolidated fiscal year, the Group implemented business structural reforms and expense reductions under the business restructuring plan formulated in March 2022, recording operating profit of ¥527 million, ordinary profit of ¥580 million and net income attributable to owners of the parent of ¥562 million. However, total current liabilities continue to exceed total current assets, and depending on the support provided by financial institutions, significant concerns may arise regarding cash management. The Group therefore recognizes that events or circumstances exist that raise substantial doubt about the going-concern assumption.」
The Company disclosed a profit for the previous consolidated fiscal year and the consent of financial institutions to maintain outstanding loan balances, while the excess of current liabilities over current assets and material events regarding the going-concern assumption continued. It also maintained its determination that no material uncertainty exists at this time. - FY2024-Q2RestatedAnnual report
「In the previous consolidated fiscal year, the Group implemented business structural reforms and expense reductions under the business restructuring plan formulated in March 2022, recording operating profit of ¥527 million, ordinary profit of ¥580 million and net income attributable to owners of the parent of ¥562 million. However, total current liabilities continue to exceed total current assets, and depending on the support provided by financial institutions, significant concerns may arise regarding cash management. The Group therefore recognizes that events or circumstances exist that raise substantial doubt about the going-concern assumption.」
The Company disclosed that it recorded a profit and obtained the consent of financial institutions to maintain outstanding loan balances, while the excess of current liabilities over current assets and material events regarding the going-concern assumption continued from the previous quarter. It also maintained its determination that no material uncertainty exists at this time. - FY2024-Q1MitigatedAnnual report
「In the previous consolidated fiscal year, the Group implemented business structural reforms and expense reductions under the business restructuring plan formulated in March 2022, recording operating profit of ¥527 million, ordinary profit of ¥580 million and net income attributable to owners of the parent of ¥562 million. However, total current liabilities continue to exceed total current assets, and depending on the support provided by financial institutions, significant concerns may arise regarding cash management. The Group therefore recognizes that events or circumstances exist that raise substantial doubt about the going-concern assumption.」
Although circumstances raising substantial doubt about the going-concern assumption remain, as in the previous fiscal year, the Company recorded a full-year profit through business restructuring and expense reductions and obtained the consent of all financial institutions at the bank meeting held on 12 May 2023 to maintain outstanding loan balances after repayment through 20 May 2024. It has therefore determined that no material uncertainty exists at this time. - FY2023-Q3RestatedAnnual report
「During the nine-month period ended 20 November 2022 (21 February 2022 to 20 November 2022), the Company recorded operating profit of ¥442.200 million, ordinary profit of ¥497.992 million and quarterly net income attributable to owners of the parent of ¥422.262 million. Although the Group's performance is recovering, total current liabilities of ¥7,428.263 million exceeded total current assets of ¥5,969.336 million at the end of the third quarter. If an unforeseen event occurs, the Company may have difficulty securing sufficient funds to maintain liquidity.」
Although the Company continued to record operating profit, ordinary profit and quarterly net income and its performance continued to recover, current liabilities exceeded current assets, and circumstances raising substantial doubt about the going-concern assumption and material uncertainty remained. - FY2023-Q2MitigatedAnnual report
「During the six-month period ended 20 August 2022 (21 February 2022 to 20 August 2022), the Company recorded operating profit of ¥422.828 million, ordinary profit of ¥486.114 million and quarterly net income attributable to owners of the parent of ¥461.874 million. Although the Group's performance is recovering, total current liabilities of ¥7,305.753 million exceeded total current assets of ¥5,961.433 million at the end of the second quarter. If an unforeseen event occurs, the Company may have difficulty securing sufficient funds to maintain liquidity.」
The Company recorded operating profit, ordinary profit and quarterly net income, improving its performance from a loss in the same period of the previous fiscal year. However, current liabilities exceed current assets, and material doubt and material uncertainty regarding the going-concern assumption remain. - FY2023-Q1MitigatedAnnual report
「At the bank meeting held on 25 May 2022, the Company obtained the consent of all financial institutions to maintain the outstanding loan balance through 19 May 2023. As a result, short-term borrowings and the portion of long-term borrowings due for repayment within one year, totaling ¥2,787.500 million, are due for repayment on 19 May 2023. During the three-month period ended 20 May 2022, the Company recorded operating profit of ¥172.340 million, ordinary profit of ¥165.546 million and net income attributable to owners of the parent of ¥153.398 million, and the Group's performance is recovering, although」
The Company recorded operating profit, ordinary profit and quarterly net income attributable to owners of the parent for the quarter, and obtained the consent of all financial institutions to maintain outstanding loan balances. Its financial position and operating performance therefore improved from the previous fiscal year-end. However, current liabilities still exceed current assets, and circumstances raising substantial doubt about the going-concern assumption and material uncertainty remain. - FY2022WorsenedAnnual report
「During the consolidated fiscal year ended 20 February 2022 (21 February 2021 to 20 February 2022), the impact of the prolonged state of emergency associated with COVID-19 was greater than expected, among other factors. The Company recorded an operating loss of ¥709.581 million, an ordinary loss of ¥674.885 million, a net loss attributable to owners of the parent of ¥1,393.794 million and negative operating cash flow of ¥158.578 million. At the end of the fiscal year, net assets on the consolidated balance sheet were ¥418.479 million and the equity ratio was 4.2%. In addition, total current liabilities of ¥7,498.506 million exceeded total current assets of ¥5,707.871 million at the end of the fiscal year.」
Although the operating loss, ordinary loss and net loss narrowed from the previous fiscal year, net assets fell to ¥418.479 million and the equity ratio declined to 4.2%, while current liabilities exceeded current assets. Violations of financial covenants also continued, and circumstances raising substantial doubt about the going-concern assumption persisted on a full-year basis. - FY2022-Q3WorsenedAnnual report
「During the nine-month period ended 20 November 2021 (21 February 2021 to 20 November 2021), the impact of the prolonged state of emergency associated with COVID-19 was greater than expected, among other factors. The Company recorded an operating loss of ¥682.063 million, an ordinary loss of ¥691.729 million and a quarterly net loss attributable to owners of the parent of ¥1,096.238 million. At the end of the third quarter, net assets on the quarterly consolidated balance sheet were ¥714.769 million and the equity ratio was 7.0%. In addition, total current liabilities of ¥7,079.999 million exceeded total current assets of ¥5,278.595 million at the end of the third quarter. Furthermore, with respect to the ¥600.000 million overdraft agreement that became due for repayment on 17 September 2021, the Company was unable to reach an agreement to renew the contract.」
While material doubt regarding the going-concern assumption continues, the Company disclosed operating, ordinary and net losses, net assets, the equity ratio, excess current liabilities, failure to agree on renewal of the overdraft agreement and suspension of repayments, indicating that its financial position has become more severe. - FY2022-Q2WorsenedAnnual report
「During the six-month period ended 20 August 2021 (21 February 2021 to 20 August 2021), the impact of the prolonged state of emergency associated with COVID-19 was greater than expected, among other factors. The Company recorded an operating loss of ¥311.679 million, an ordinary loss of ¥317.962 million and a quarterly net loss attributable to owners of the parent of ¥506.137 million. At the end of the second quarter, net assets on the quarterly consolidated balance sheet were ¥1,303.605 million and the equity ratio was 13.4%. In addition, total current liabilities of ¥5,463.627 million exceeded total current assets of ¥4,825.693 million at the end of the second quarter.」
While material doubt regarding the going-concern assumption continues, the Company provided specific figures for its operating loss, ordinary loss, quarterly net loss, net assets, equity ratio and excess of current liabilities over current assets. In addition to violations of financial covenants, discussions on renewing the overdraft agreement are continuing, and the disclosure regarding material uncertainty has become more extensive. - FY2022-Q1Material doubt regarding the going-concern assumption has recurred.Annual report
「At the end of the first quarter of the current consolidated fiscal year, events or circumstances exist that raise substantial doubt about the going-concern assumption. Under these circumstances, the Group has determined that no material uncertainty exists regarding the going-concern assumption because it is implementing the measures described below to eliminate these material events, etc.」
The Company states that material doubt regarding the going-concern assumption, which had once ceased to exist in a prior fiscal year, has re-emerged against the backdrop of continuing operating losses since the previous fiscal year, uncertainty over when the COVID-19 pandemic will subside, and violations of financial covenants. At the same time, it also states that it has determined that no material uncertainty exists as a result of implementing countermeasures. - FY2017-Q2DroppedAnnual report
「The Company expects its performance to continue recovering from the previous fiscal year and expects to record net income in the current fiscal year alongside growth in operating profit. Accordingly, it has determined that no events or circumstances currently exist that raise substantial doubt about the going-concern assumption. The sections titled “1. Business and Other Risks: Material Events, etc. Regarding the Going-Concern Assumption” and “7. Analysis of Financial Position, Operating Results and Cash Flows: Analysis and Consideration of Material Events, etc. Described under Business and Other Risks, and Measures to Eliminate or Improve Such Material Events, etc.” included in the annual securities report for the previous fiscal year are therefore no longer applicable.」
The Company explicitly states that the material events, etc., and related measures regarding the going-concern assumption have ceased to exist. - FY2017-Q1First statedAnnual report
「The Company recognizes that, in the fiscal year ended February 2015, it recorded an operating loss and a net loss for the second consecutive fiscal year, and that in the fiscal year ended February 2016 it recorded a net loss for the third consecutive fiscal year. Accordingly, events or circumstances exist that raise substantial doubt about the going-concern assumption.」
The Company recognizes material events, etc., against the backdrop of consecutive losses in prior fiscal years. At the same time, it has determined that no material uncertainty exists regarding the going-concern assumption, as it is implementing measures to restore earnings and closing unprofitable stores.