Material doubt about the going-concern assumption due to operating losses and negative operating cash flow
First written in FY2018. 14 of 27 entries say "Worsened", first in FY2019-Q1. Latest entry: 2026-10-22.
Axel Mark moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
23 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「In the previous fiscal year, the group recorded significant operating losses, ordinary losses and net losses. It also continued to record significant operating losses, ordinary losses and net losses attributable to owners of the parent during the current consolidated fiscal year. In light of these circumstances, the group recognizes that events or conditions exist that could raise material doubt about the going-concern assumption.」
The report states that, following the previous fiscal year, the Group also posted significant losses during the current consolidated fiscal year and that substantial doubt about the going-concern assumption continued. The response measures were still being implemented, and the report states that material uncertainty existed. - FY2025-H1WorsenedAnnual report
「In the previous fiscal year, the group recorded significant operating losses, ordinary losses and net losses. It also continued to record significant operating losses, ordinary losses and interim net losses attributable to owners of the parent during the current interim consolidated accounting period. In light of these circumstances, the group recognizes that events or conditions exist that could raise material doubt about the going-concern assumption.」
The report states that, following the previous fiscal year, the Group also posted operating, ordinary and interim net losses during the current interim consolidated fiscal period, and that substantial doubt about the going-concern assumption continued. It also states that the response measures were still being implemented and that material uncertainty existed. - FY2024MaterialisedAnnual report
「During the fiscal year, the company recorded significant operating losses, ordinary losses and net losses. In light of these circumstances, the company recognizes that events or conditions exist that could raise material doubt about the going-concern assumption.」
Regarding the circumstances material to the going-concern assumption, which the Company had previously determined had been resolved, the report states that they had re-emerged against a backdrop of an operating loss of ¥305.452 million, an ordinary loss of ¥250.164 million and a net loss of ¥388.567 million. The response measures were still being implemented, and the report states that material uncertainty existed. - FY2021MitigatedAnnual report
「Based on the foregoing, the company determined that, as of the end of the third quarter accounting period of the fiscal year, the circumstances that could raise material doubt about the going-concern assumption had been resolved.」
Regarding the circumstances material to the going-concern assumption, under which operating losses and a net-asset deficit had continued, the Company stated that the situation had been resolved as of the end of the third quarter, based on improvements to its earnings structure, financing and the increase in capital. - FY2021-Q3MitigatedAnnual report
「Based on the foregoing, the company determined that, as of the end of the third quarter accounting period, the circumstances that could raise material doubt about the going-concern assumption had been resolved.」
Regarding the circumstances material to the going-concern assumption, under which operating losses and a net-asset deficit had continued, the Company determined that the situation had been resolved as of the end of the third quarter of the current fiscal year, based on progress in financing, the increase in capital and improvements to its earnings structure. - FY2021-Q2MitigatedAnnual report
「The Company continued to post operating losses through the first 2 quarters of the current fiscal year and became insolvent on a net-asset basis, creating circumstances that raised substantial doubt about the going-concern assumption.” “As a result, operating cash flow turned positive during the first 2 quarters of the current fiscal year. In addition, the Company raised ¥559.841 million through the issuance of the second series of unsecured convertible bonds with stock acquisition rights and the 23rd series of stock acquisition rights, which was resolved by the Board of Directors on 26 March 2021 and completed on 28 April 2021. Capital also increased by ¥267.484 million as a result of the exercise of part of the second series of unsecured convertible bonds with stock acquisition rights on 30 April 2021. These measures are expected to eliminate the net-asset deficit and stabilize the financial base.” “The Company has determined that no material uncertainty related to the going-concern assumption exists because it is adapting and implementing these measures in response to changes in the operating environment.”」
Although the operating loss and net-asset deficit continued, the Company stated that the net-asset deficit was expected to be eliminated through the return to positive operating cash flow, financing and the increase in capital, and that no material uncertainty existed. - FY2021-Q1WorsenedAnnual report
「The Company continued to post operating losses and negative operating cash flow through the first quarter of the current fiscal year and became insolvent on a net-asset basis, creating circumstances that raised substantial doubt about the going-concern assumption.」
The report states that operating losses and negative operating cash flow continued and that the Company remained insolvent on a net-asset basis in the first quarter of the current fiscal year. - FY2020WorsenedAnnual report
「In the current consolidated fiscal year, the Company again posted an operating loss and negative operating cash flow. In addition, partly because it recorded extraordinary losses including impairment losses on fixed assets, the Company posted a net loss attributable to owners of the parent and became insolvent on a net-asset basis.」
Circumstances raising substantial doubt about the going-concern assumption continued throughout the fiscal year, and the Company posted an operating loss of ¥652.729 million, a ¥660.062 million decrease in operating cash flow, and a net loss for the fiscal year of ¥825.066 million, resulting in a net-asset deficit of ¥171.939 million. - FY2020-Q3MaterialisedAnnual report
「During the cumulative third quarter of the consolidated fiscal year as well, the company recorded an operating loss and negative operating cash flow. In addition, it recorded extraordinary losses, including impairment losses on fixed assets, resulting in a quarterly net loss attributable to owners of the parent and a negative net worth.」
Circumstances raising substantial doubt about the going-concern assumption continued, and in addition to operating losses and negative operating cash flow, the Company became insolvent on a net-asset basis. - FY2020-Q2WorsenedAnnual report
「During the first 2 quarters of the current consolidated fiscal year, the Company also posted an operating loss and negative operating cash flow. In addition, partly because it recorded extraordinary losses including impairment losses on fixed assets, the Company posted a quarterly net loss attributable to owners of the parent, and net assets could be substantially impaired temporarily depending on the amount recorded.」
The Company posted an operating loss of ¥444.600 million, a ¥443.909 million decrease in operating cash flow, and a quarterly net loss of ¥636.193 million, and circumstances material to the going-concern assumption continued. - FY2020-Q1WorsenedAnnual report
「Through the previous consolidated fiscal year, the Group had posted operating losses for 4 consecutive fiscal years and negative operating cash flow, creating circumstances that raised substantial doubt about the going-concern assumption. During the first quarter of the current consolidated fiscal year, the Group again posted an operating loss and negative operating cash flow. In addition, partly because it recorded extraordinary losses including impairment losses on fixed assets, the Group posted a quarterly net loss attributable to owners of the parent, and net assets could be substantially impaired temporarily depending on the amount recorded.」
Operating losses and negative operating cash flow continued for 4 consecutive fiscal years through the previous consolidated fiscal year, and operating losses and negative operating cash flow continued in the current quarter. The report also states that net assets could be substantially impaired temporarily due to impairment losses and other factors. As before, it states that the Company determined that no material uncertainty existed. - FY2019WorsenedAnnual report
「Through the previous consolidated fiscal year, the Group had posted operating losses for 3 consecutive fiscal years and negative operating cash flow, creating circumstances that raised substantial doubt about the going-concern assumption. In the current consolidated fiscal year, the Group again posted an operating loss of ¥697.899 million and negative operating cash flow. In addition, partly due to impairment losses on fixed assets, profit or loss attributable to owners of the parent included a net loss for the fiscal year of ¥1,200.326 million.」
Circumstances raising substantial doubt about the going-concern assumption continued throughout the fiscal year, and the Company posted an operating loss of ¥697.899 million and a net loss of ¥1,200.326 million. However, the report also states that the Company determined that no material uncertainty existed because of measures including financing. - FY2019-Q3WorsenedAnnual report
「During the first 3 quarters of the current consolidated fiscal year, the Company posted an operating loss of ¥470.114 million and negative operating cash flow. In addition, partly due to impairment losses on fixed assets, profit or loss attributable to owners of the parent included a quarterly net loss of ¥964.996 million.」
Circumstances raising substantial doubt about the going-concern assumption continued, and the Company posted an operating loss of ¥470.114 million and a quarterly net loss attributable to owners of the parent of ¥964.996 million. At the same time, the report states that the Company determined that no material uncertainty existed because it was advancing its response measures. - FY2019-Q2RestatedAnnual report
「During the cumulative second quarter of the consolidated fiscal year as well, the company recorded an operating loss of ¥287.040 million and negative operating cash flow.」
The report states that the operating losses and negative operating cash flow recorded for 3 consecutive fiscal years through the previous consolidated fiscal year continued in the second quarter of the current fiscal year. - FY2019-Q1WorsenedAnnual report
「Through the previous consolidated fiscal year, the Group had posted operating losses for 3 consecutive fiscal years and negative operating cash flow, creating circumstances that raised substantial doubt about the going-concern assumption. During the first quarter of the current consolidated fiscal year, the Group also posted an operating loss and negative operating cash flow.」
The report states that operating losses and negative operating cash flow continued for 3 consecutive fiscal years through the previous consolidated fiscal year and that the same situation continued in the first quarter of the current fiscal year. - FY2018First statedAnnual report
「Through the previous consolidated fiscal year, the Group had posted operating losses for 2 consecutive fiscal years and negative operating cash flow, creating circumstances that raised substantial doubt about the going-concern assumption. In the current consolidated fiscal year, the Group has again posted an operating loss and negative operating cash flow.」
In addition to operating losses and negative operating cash flow for 2 consecutive fiscal years, the same situation occurred again in the current fiscal year and is separately disclosed as a circumstance raising substantial doubt about the going-concern assumption.