Material Doubt Regarding the Going Concern Assumption and Liquidity Risk
First written in FY2025. 2 of 5 entries say "Mitigated", first in 2026-05-15. Latest entry: FY2026.
The whole theme swung hardest in 2022: 4 of 13 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2026Material matters continue despite the return to profitabilityAnnual report
「During the current consolidated fiscal year, the Group recorded an operating loss of ¥74,890 thousand, ordinary income of ¥17,990 thousand and net income attributable to owners of the parent of ¥5,545 thousand. As a result, the Company is in breach of covenants attached to loan agreements executed with certain financial institutions. In light of these circumstances, events or conditions existed as of the end of the current consolidated fiscal year that raised significant doubt about the going concern assumption. However, based on the availability of cash on hand during the current consolidated fiscal year, the expected future income and expenditure trends under the Company's annual business plan, discussions and borrowings with financial institutions, requests for financial support from related parties, and cash management including that of consolidated subsidiaries, the Company determined that no material uncertainty related to the going concern assumption exists.」
Although the Company turned profitable at the ordinary income and net income levels, the operating loss and breach of financial covenants remain, and significant doubt about the going concern assumption continues to exist. However, the Company continues to determine that no material uncertainty exists. - FY2025First statedAnnual report
「At the end of the consolidated fiscal year, events or circumstances existed that could raise significant doubt about the going-concern assumption. However, based on the availability of cash on hand during the consolidated fiscal year, the projected future income and expenditure trends under the Company's annual business plan, discussions and borrowings with its financial institutions, requests for financial support from related parties, and the funding position including that of its consolidated subsidiaries, the Company has determined that no material uncertainty regarding the going-concern assumption exists.」
The Company recorded an operating loss of ¥1,443,128 thousand, an ordinary loss of ¥1,629,152 thousand and a net loss of ¥2,976,832 thousand, and also breached its financial covenants. As a result, material doubt regarding the going-concern assumption was newly disclosed. The Company, however, has determined that no material uncertainty exists.