Disclaimers of opinion in the audit report relating to the Annual Securities Report for the fiscal year ending March 2026 and in the internal control audit report
kaihan co.,Ltd. (filing company) and the Company Group
The Company has continued to record operating losses, ordinary losses and net losses attributable to owners of the parent, and its funds have become strained due to debts of approximately ¥109 million owed to 株式会社FitFounder and attachments relating to unpaid social insurance premiums. In addition, the auditors were unable to obtain sufficient audit evidence regarding the measures being pursued by management or other factors that could lead to improvement.
The impact on results of the disclaimer of opinion itself is Not disclosed. The related amounts stated are approximately ¥109 million in debt owed to 株式会社FitFounder and approximately ¥39 million in total unpaid social insurance premiums subject to attachment. The Internal Control Audit Report states that the total amount of delayed payments of employees' social insurance premiums was approximately ¥68 million.
The fiscal year ending March 2026 (from 1 April 2025 to 31 March 2026) and the Internal Control Report as of 31 March 2026
Related procedures
Attachment orders and attachment of assets
Nagoya District Court and Japan Pension Service
Company response
No information on a third-party committee, special investigation committee or similar body is disclosed. The audit firm that conducted the audit was プログレス監査法人.
We take the circumstances that led to the present disclaimer of opinion seriously and will address them appropriately.
| Item | Details |
|---|---|
| Event name | Disclaimers of opinion in the audit report relating to the Annual Securities Report for the fiscal year ending March 2026 and in the internal control audit report |
| Date of occurrence | 26 June 2026 (date of receipt of the audit report) |
| Date recognized / date notice received | 26 June 2026 (date of receipt of the audit report) |
| Subject Entity | kaihan co.,Ltd. (filing company) and the Company Group |
| Cause | The Company has continued to record operating losses, ordinary losses and net losses attributable to owners of the parent, and its funds have become strained due to debts of approximately ¥109 million owed to 株式会社FitFounder and attachments relating to unpaid social insurance premiums. In addition, the auditors were unable to obtain sufficient audit evidence regarding the measures being pursued by management or other factors that could lead to improvement. |
| Amount of Impact on Business Performance | The impact on results of the disclaimer of opinion itself is Not disclosed. The related amounts stated are approximately ¥109 million in debt owed to 株式会社FitFounder and approximately ¥39 million in total unpaid social insurance premiums subject to attachment. The Internal Control Audit Report states that the total amount of delayed payments of employees' social insurance premiums was approximately ¥68 million. |
| Accounting period in which recognized | The fiscal year ending March 2026 (from 1 April 2025 to 31 March 2026) and the Internal Control Report as of 31 March 2026 |
| Type of litigation or proceeding | Attachment orders and attachment of assets |
| Court or authority | Nagoya District Court and Japan Pension Service |
| Date of filing / date of action | 27 April 2026 (attachment order), 11 May 2026 and 9 June 2026 (attachments) |
| Investigation structure | No information on a third-party committee, special investigation committee or similar body is disclosed. The audit firm that conducted the audit was プログレス監査法人. |
| Outlook | We take the circumstances that led to the present disclaimer of opinion seriously and will address them appropriately. |
Items this document does not state (13)
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 Company has incurred operating losses, ordinary losses and net losses on an ongoing basis, and its funds have become strained due to attachments relating to debts owed to 株式会社FitFounder and unpaid social insurance premiums. As a result, the auditors were unable to obtain sufficient appropriate audit evidence regarding the measures being pursued by management and other factors that could lead to improvement.