Decision and Details
Disclaimer of opinion on the financial statements and accompanying schedules and consolidated financial statements for the fiscal year ending March 2026
Because cash constraints are severe, the effects of the material uncertainty regarding the going concern assumption on the financial statements and related documents are both material and pervasive, and sufficient appropriate audit evidence could not be obtained.
The Company and its group recognized an operating loss, ordinary loss and net loss for the period (net loss attributable to owners of the parent). Cash constraints are severe, and a material uncertainty exists regarding the going concern assumption. No audit opinion will be expressed.
| Item | Details |
|---|---|
| Matter Covered | Disclaimer of opinion on the financial statements and accompanying schedules and consolidated financial statements for the fiscal year ending March 2026 |
| Decision Date | 24 June 2026 (date the audit report was received) |
| Implementation Date | 24 June 2026 (actual date the audit report disclaiming an audit opinion was received) |
| Period Covered | The 23rd fiscal year and consolidated fiscal year from 1 April 2025 to 31 March 2026 |
| Amount | Approximately ¥109 million in liabilities to 株式会社FitFounder and approximately ¥29 million in overdue social insurance premiums owed to the Japan Pension Service |
| Impact on Business Performance | The Company and its group recognized an operating loss, ordinary loss and net loss for the period (net loss attributable to owners of the parent). Cash constraints are severe, and a material uncertainty exists regarding the going concern assumption. No audit opinion will be expressed. |
| Reason | Because cash constraints are severe, the effects of the material uncertainty regarding the going concern assumption on the financial statements and related documents are both material and pervasive, and sufficient appropriate audit evidence could not be obtained. |
| Governing Rule | Article 436(2)(i) and Article 444(4) of the Companies Act |
| Related previous disclosures | “Summary of Financial Results for the Fiscal Year Ended March 2026 [Japanese GAAP] (Consolidated),” dated 15 May 2026, and “Notice Regarding the Policy for Holding a Continued Session of the 23rd Annual General Meeting of Shareholders,” dated 25 June 2026 |
| Future plans | The Company plans to hold a continued session of the Annual General Meeting of Shareholders and submit the approval of the financial statements for deliberation. The statutory financial statement audit will continue, and any matters requiring disclosure will be disclosed promptly when identified. Details regarding the continued session will be disclosed promptly once determined. |
Items this document does not state (2)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The auditor was unable to complete the necessary audit procedures because sufficient audit evidence could not be obtained regarding the Company’s continued losses, severe cash constraints resulting from attachments relating to liabilities and overdue social insurance premiums, and the measures being pursued by management.