Risk of collection failure on receivables and other assets
AXEL MARK INC. (the filing company) and the business partner (a corporation whose name has not been disclosed)
Security deposits, accounts receivable and inventory (the value of inventory held on consignment). The inventory is under the management of the business partner.
The deterioration in the business partner's cash flow position, the partner becoming unreachable, and its response to payment demands, among other factors
¥104.931 million. An allowance for doubtful accounts was recorded for the full amounts of the ¥78.655 million in security deposits and ¥4.931 million in accounts receivable, and an inventory valuation loss was recorded for the full ¥21.344 million value of the inventory. These amounts have already been reflected in the consolidated results for the fiscal year ended September 2025.
The consolidated accounting period for the third quarter of the fiscal year ended September 2025 and the consolidated results for the fiscal year ended September 2025
The impact on, and any revision to, the earnings forecast is not disclosed. The loss has already been reflected in the consolidated results for the fiscal year ended September 2025.
¥104.931 million (against the business partner)
Related procedures
The procedures currently underway are not disclosed. Legal measures under consideration include civil claims and the filing of a criminal complaint or a victim report, among others.
We will continue demanding payment from the business partner, consider legal measures including civil claims and the filing of a criminal complaint or a victim report, and work to maximize collection of the receivables. If legal insolvency proceedings, such as bankruptcy proceedings, are commenced, we will appropriately file proofs of claim and take other necessary measures.
| Item | Details |
|---|---|
| Event name | Risk of collection failure on receivables and other assets |
| Date of occurrence | not disclosed (no specific date on which the risk of collection failure was determined is stated) |
| Date recognized / date notice received | Around June 2025 (when the business partner's cash flow position deteriorated) and December 2025 (when the partner became unreachable after the last meeting) |
| Subject Entity | AXEL MARK INC. (the filing company) and the business partner (a corporation whose name has not been disclosed) |
| Target Locations / Products | Security deposits, accounts receivable and inventory (the value of inventory held on consignment). The inventory is under the management of the business partner. |
| Cause | The deterioration in the business partner's cash flow position, the partner becoming unreachable, and its response to payment demands, among other factors |
| Amount of Impact on Business Performance | ¥104.931 million. An allowance for doubtful accounts was recorded for the full amounts of the ¥78.655 million in security deposits and ¥4.931 million in accounts receivable, and an inventory valuation loss was recorded for the full ¥21.344 million value of the inventory. These amounts have already been reflected in the consolidated results for the fiscal year ended September 2025. |
| Accounting period in which recognized | The consolidated accounting period for the third quarter of the fiscal year ended September 2025 and the consolidated results for the fiscal year ended September 2025 |
| Impact on Earnings Forecast | The impact on, and any revision to, the earnings forecast is not disclosed. The loss has already been reflected in the consolidated results for the fiscal year ended September 2025. |
| Type of litigation or proceeding | The procedures currently underway are not disclosed. Legal measures under consideration include civil claims and the filing of a criminal complaint or a victim report, among others. |
| Amount of receivables at risk of non-collection or delayed collection | ¥104.931 million (against the business partner) |
| Outlook | We will continue demanding payment from the business partner, consider legal measures including civil claims and the filing of a criminal complaint or a victim report, and work to maximize collection of the receivables. If legal insolvency proceedings, such as bankruptcy proceedings, are commenced, we will appropriately file proofs of claim and take other necessary measures. |
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 business partner's cash flow position deteriorated around June 2025. Even after the business partnership agreement was terminated, the partner did not respond to payment demands or requests for meetings, and has remained unreachable since the last meeting in December 2025.