Recognition of non-operating expenses, extraordinary losses and adjustments to corporate income taxes in the consolidated financial statements
AXEL MARK INC., consolidated subsidiary 株式会社crafty, and consolidated subsidiary アクセルメディカ株式会社
Physical store for the trading card business, “cardéria Ikebukuro Store” (Toshima-ku, Tokyo); Pokémon Card Game; ONE PIECE Card Game; 株式会社crafty's e-commerce oripa service, “アイリストレカ”; and cosmetics and other products under the Company's own brand, “≒4.7”
The decline in trading card prices from July 2026 onward; lower sales and profitability at the cardéria Ikebukuro Store and crafty Inc. accompanying that decline; developments including tighter regulations and self-regulation concerning oripa products and restrictions on payment methods; product disposal; the risk that loans may become uncollectible; and the expectation that crafty Inc. will not generate taxable income for the foreseeable future. The share issuance costs are issuance expenses associated with the issuance of new shares through a third-party allotment dated 29 May 2026.
¥26 million in new share issuance costs (non-operating expenses); ¥46 million in impairment losses, ¥12 million in inventory valuation losses and ¥3 million in provision for doubtful accounts (extraordinary losses); and a ¥29 million reversal of deferred tax assets (adjustments to corporate income taxes). Adjustments to corporate income taxes recorded in the consolidated income statement for the fiscal year ending September 2026 amounted to ¥11 million.
The fourth quarter accounting period of the fiscal year ending September 2026 (1 July 2026–30 September 2026) and the consolidated financial results for the fiscal year ending September 2026
For the difference between the forecast and actual consolidated results for the fiscal year ending September 2026, see the “Notice Regarding the Difference Between the Full-Year Consolidated Earnings Forecast and Actual Results for the Fiscal Year Ending September 2026” released today. For the fiscal year ending December 2027, the Company forecasts an operating loss of ¥613 million and a net loss attributable to owners of the parent of ¥634 million.
Loans of ¥3 million held by アクセルメディカ株式会社. The provision for doubtful accounts recorded for the fiscal year ending September 2026 was ¥97 million, including the ¥94 million recorded in the second quarter.
Trading card prices have continued to decline since October, and the Group continues to record operating losses. Given the current product mix and inventory levels, there is no prospect of a recovery in profitability at the cardéria Ikebukuro Store, and no early recovery in profitability is expected at crafty Inc. either.
| Item | Details |
|---|---|
| Event name | Recognition of non-operating expenses, extraordinary losses and adjustments to corporate income taxes in the consolidated financial statements |
| Date of occurrence | 1 July 2026–30 September 2026 (the fourth quarter accounting period of the fiscal year ending September 2026) |
| Subject Entity | AXEL MARK INC., consolidated subsidiary 株式会社crafty, and consolidated subsidiary アクセルメディカ株式会社 |
| Target Locations / Products | Physical store for the trading card business, “cardéria Ikebukuro Store” (Toshima-ku, Tokyo); Pokémon Card Game; ONE PIECE Card Game; 株式会社crafty's e-commerce oripa service, “アイリストレカ”; and cosmetics and other products under the Company's own brand, “≒4.7” |
| Cause | The decline in trading card prices from July 2026 onward; lower sales and profitability at the cardéria Ikebukuro Store and crafty Inc. accompanying that decline; developments including tighter regulations and self-regulation concerning oripa products and restrictions on payment methods; product disposal; the risk that loans may become uncollectible; and the expectation that crafty Inc. will not generate taxable income for the foreseeable future. The share issuance costs are issuance expenses associated with the issuance of new shares through a third-party allotment dated 29 May 2026. |
| Amount of Impact on Business Performance | ¥26 million in new share issuance costs (non-operating expenses); ¥46 million in impairment losses, ¥12 million in inventory valuation losses and ¥3 million in provision for doubtful accounts (extraordinary losses); and a ¥29 million reversal of deferred tax assets (adjustments to corporate income taxes). Adjustments to corporate income taxes recorded in the consolidated income statement for the fiscal year ending September 2026 amounted to ¥11 million. |
| Accounting period in which recognized | The fourth quarter accounting period of the fiscal year ending September 2026 (1 July 2026–30 September 2026) and the consolidated financial results for the fiscal year ending September 2026 |
| Impact on Earnings Forecast | For the difference between the forecast and actual consolidated results for the fiscal year ending September 2026, see the “Notice Regarding the Difference Between the Full-Year Consolidated Earnings Forecast and Actual Results for the Fiscal Year Ending September 2026” released today. For the fiscal year ending December 2027, the Company forecasts an operating loss of ¥613 million and a net loss attributable to owners of the parent of ¥634 million. |
| Amount of receivables at risk of non-collection or delayed collection | Loans of ¥3 million held by アクセルメディカ株式会社. The provision for doubtful accounts recorded for the fiscal year ending September 2026 was ¥97 million, including the ¥94 million recorded in the second quarter. |
| Outlook | Trading card prices have continued to decline since October, and the Group continues to record operating losses. Given the current product mix and inventory levels, there is no prospect of a recovery in profitability at the cardéria Ikebukuro Store, and no early recovery in profitability is expected at crafty Inc. either. |
Items this document does not state (15)
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 reasons include issuance costs associated with the issuance of new shares through a third-party allotment, lower store sales and profitability due to the decline in trading card prices, lower profitability at crafty Inc. and the strengthening of regulations and self-regulation concerning oripa products and restrictions on payment methods, the disposal of cosmetics and other products, the risk that loans may become uncollectible, and the expectation that crafty Inc. will not generate taxable income for the foreseeable future.