Negative Net Worth and Material Doubt About Going Concern
First written in FY2021-Q2. 9 of 22 entries say "Mitigated", first in FY2021. Latest entry: 2026-06-26.
The whole theme swung hardest in 2020: 2 of 9 companies on the "Worse" side.
1 other company's latest entry also says "Achieved".
- 2026-06-26AchievedBusiness PlanSuggests it is closing out
「Net assets at the end of the fiscal year ending March 2026 were ¥1,124 million, eliminating negative net assets and bringing the company into compliance with the listing-maintenance criteria for net assets.」
The company confirmed that the negative net assets arising at the end of the fiscal year ended March 2025 had been eliminated and that the listing-maintenance criteria had been met as a result of the various measures, business-structure plan and capital-strengthening measures. - FY2026MitigatedAnnual report
「Negative net assets were eliminated during the consolidated fiscal year, and the Company was not in breach of any financial covenants.」
Regarding the negative net assets that arose in the previous fiscal year, the Company states that net assets were ¥1,124 million and the equity ratio was 14.0% in the current fiscal year, indicating that the negative net assets had been eliminated. - FY2026-H1MitigatedAnnual report
「Net assets for the interim consolidated accounting period increased by ¥654 million from the previous consolidated fiscal year, resulting in total net assets of ¥604 million. This was mainly attributable to interim net income of ¥630 million attributable to owners of the parent. (Equity ratio) The equity ratio for the interim consolidated accounting period was 8.4%, an increase of 9.2 percentage points from the previous consolidated fiscal year.」
Net assets improved to ¥604 million and the equity ratio to 8.4%, recovering from the negative net assets and negative equity ratio at the end of the previous fiscal year. - FY2025-H1Net assets contracted and the equity ratio turned negativeAnnual report
「Net assets decreased by ¥153 million from the previous consolidated fiscal year, resulting in total net assets of ¥13 million.」
While maintaining its determination that no material uncertainty regarding the going-concern assumption exists, total net assets declined from ¥167 million to ¥13 million, and the equity ratio fell from 1.3% to negative 0.1%. - FY2024MitigatedAnnual report
「In addition, the exercise of the fourth and fifth series of stock acquisition rights issued by way of a third-party allotment resulted in consolidated net assets of ¥167 million for the consolidated accounting period. The Company's relationship financial institutions will continue to provide support through cooperation with the Company, and the Company expects its near-term funding position to remain stable by restraining cash flows in line with its financing conditions. Based on these factors, the Company determined that no material uncertainty regarding its overall financial position exists.」
Consolidated net assets reached ¥167 million through the exercise of stock acquisition rights and other measures, preventing negative net assets at the end of the consolidated fiscal year. The Company states that no material uncertainty regarding its overall financial position exists, assuming support from financial institutions and restraint of cash flows. - FY2024-Q3MitigatedAnnual report
「In addition, the exercise of the fourth series of stock acquisition rights issued by way of a third-party allotment, which began in June 2023, was completed, resulting in consolidated net assets of ¥351 million for the cumulative third quarter.」
Following the completion of the exercise of the fourth series of stock acquisition rights and the strengthening of its capital base, consolidated net assets at the end of the third quarter reached ¥351 million, an improvement from the negative-net-assets state at the end of the previous quarter. - FY2024-Q2MitigatedAnnual report
「In addition, the exercise of the fourth through sixth series of stock acquisition rights issued by way of a third-party allotment, which began in June 2023, progressed more smoothly than expected, resulting in consolidated net assets of ¥55 million for the cumulative second quarter.」
As the exercise of stock acquisition rights issued by way of a third-party allotment progressed, consolidated net assets at the end of the second quarter reached ¥55 million. The Company determined that its financial position had improved from the negative-net-assets state and that no material uncertainty regarding its overall financial position exists. - FY2024-Q1MaterialisedAnnual report
「As a result, the Company became insolvent on a net-assets basis as of the end of the first quarter and recognizes that events or circumstances exist that raise material doubt regarding the going-concern assumption.」
Net assets declined from ¥118 million at the end of the previous consolidated fiscal year to negative ¥56 million, while the equity ratio declined from 0.4% to negative 1.7%, resulting in negative net assets at the end of the first quarter. - FY2023MitigatedAnnual report
「However, based on the funding plan it had formulated, the Company deepened and expanded its cooperation with its relationship financial institutions and other parties, and eliminated its negative net assets as of the end of the consolidated fiscal year through the issuance of new shares by way of a third-party allotment.」
Although the Company states that it became insolvent on a net-assets basis at the end of the third quarter, it explains that it eliminated its negative net assets by the end of the consolidated fiscal year through a third-party allotment capital increase and other measures. - FY2023-Q3MaterialisedAnnual report
「As a result of a substantial decline in net sales and a significant loss caused by factors including a decrease in customer traffic associated with the spread of COVID-19, the Company became insolvent on a net-assets basis and recognizes that events or circumstances exist that raise material doubt regarding the going-concern assumption.」
Although the Company had previously stated that its negative net assets had been eliminated, net assets at the end of the third quarter were negative ¥212 million and the equity ratio was negative 3.3%, with negative net assets having reappeared in the actual results. - FY2023-Q2Net assets contracted while the explanation that the negative net assets had been eliminated was maintainedAnnual report
「However, based on the funding plan it had formulated, the Company deepened and expanded its cooperation with its relationship financial institutions and other parties, and eliminated its negative net assets through the issuance of new shares by way of a third-party allotment.」
The Company continues to state that its negative net assets have been eliminated and that no material uncertainty regarding the going-concern assumption exists. However, net assets at the end of the second quarter were ¥40 million, and the equity ratio was negative 0.5%. - FY2023-Q1RestatedAnnual report
「However, based on the funding plan it had formulated, the Company deepened and expanded its cooperation with its relationship financial institutions and other parties, and eliminated its negative net assets through the issuance of new shares by way of a third-party allotment.」
While continuing to disclose temporary negative net assets and material doubt regarding the going-concern assumption, the Company continues to explain that it eliminated its negative net assets through a third-party allotment capital increase and other measures. Net assets at the end of the first quarter were ¥403 million, and the equity ratio was 3.3%. - FY2022-Q3RestatedAnnual report
「During the previous consolidated fiscal year, the Company temporarily became insolvent on a net-assets basis and recognized that events or circumstances existed that raised material doubt regarding the going-concern assumption, as a result of a substantial decline in net sales and a significant loss caused by factors including a decrease in customer traffic resulting from measures to prevent the spread of COVID-19 and shortened business hours in response to requests from administrative authorities. However, based on the funding plan it had formulated, the Company deepened and expanded its cooperation with its relationship financial institutions and other parties, and eliminated its negative net assets as of the end of the previous consolidated fiscal year through the issuance of new shares by way of a third-party allotment.」
While recognizing temporary negative net assets and material doubt regarding the going-concern assumption, the Company continues to explain that it eliminated its negative net assets at the end of the previous consolidated fiscal year through a third-party allotment capital increase and other measures. - FY2022-Q2RestatedAnnual report
「However, based on the funding plan it had formulated, the Company deepened and expanded its cooperation with its relationship financial institutions and other parties, and eliminated its negative net assets as of the end of the previous consolidated fiscal year through the issuance of new shares by way of a third-party allotment.」
The Company reconfirmed that its negative net assets had been eliminated as of the end of the previous consolidated fiscal year through the issuance of new shares by way of a third-party allotment and cooperation with financial institutions and other parties. - FY2022-Q1MitigatedAnnual report
「However, based on the funding plan it had formulated, the Company deepened and expanded its cooperation with its relationship financial institutions and other parties, and eliminated its negative net assets as of the end of the previous consolidated fiscal year through the issuance of new shares by way of a third-party allotment.」
The Company reconfirmed that its negative net assets had been eliminated as of the end of the previous consolidated fiscal year through the issuance of new shares by way of a third-party allotment and cooperation with financial institutions and other parties. It determined that no material uncertainty regarding the going-concern assumption exists. - FY2021MitigatedAnnual report
「However, based on the funding plan it had formulated, the Company deepened and expanded its cooperation with its relationship financial institutions and other parties, and eliminated its negative net assets as of the end of the consolidated fiscal year through the issuance of new shares by way of a third-party allotment.」
The Company states that, after temporarily becoming insolvent on a net-assets basis and recognizing material doubt regarding the going-concern assumption, it eliminated its negative net assets at the end of the consolidated fiscal year through a third-party allotment capital increase and other measures. - FY2021-Q3WorsenedAnnual report
「During the cumulative third quarter of the consolidated fiscal year, the Company recorded a substantial decline in net sales and a significant loss due to factors including a decrease in customer traffic resulting from the voluntary suspension of operations at most of the Group's stores for approximately 2 months to prevent the spread of COVID-19, as well as shortened business hours in response to requests from administrative authorities. As a result, the Company became insolvent on a net-assets basis. Accordingly, the Company recognizes that events or circumstances exist that raise material doubt regarding the going-concern assumption.」
Material doubt regarding the going-concern assumption due to negative net assets persists. Net assets have deteriorated to negative ¥1,317 million, and the equity ratio has deteriorated to negative 14.8%. However, the Company has determined that no material uncertainty exists based on its funding plan and other measures. - FY2021-Q2First statedAnnual report
「During the cumulative second quarter, the Company recorded a substantial decline in net sales and a significant loss due to factors including a decrease in customer traffic resulting from the voluntary suspension of operations at most of the Group's stores for approximately 2 months to prevent the spread of COVID-19, as well as shortened business hours in response to requests from administrative authorities. As a result, the Company became insolvent on a net-assets basis. Accordingly, the Company recognizes that events or circumstances exist that raise material doubt regarding the going-concern assumption.」
As a result of the spread of COVID-19, voluntary store closures and reduced business hours, net assets were negative ¥856 million, and events or circumstances raising material doubt regarding the going-concern assumption were recognized. However, the Company expects to resolve these conditions through discussions with financial institutions based on its funding plan and efforts to strengthen its financial base, and states that no material uncertainty regarding the going-concern assumption exists.