Material Doubt Regarding a Decline in Net Assets and the Going Concern Assumption
First written in FY2025. 6 of 7 entries say "Mitigated", first in FY2026-H1. Latest entry: 2026-08-05.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- 2026-08-05MitigatedEarnings
「Although circumstances exist that could raise significant doubt about the going concern assumption, we have determined that no material uncertainty exists and therefore that a note regarding the going concern assumption is not required.」
While circumstances raising significant doubt continue, the Company reaffirmed its view that no material uncertainty exists, citing secured borrowing facilities and other factors. - FY2026MitigatedAnnual report
「The Group's net assets decreased to ¥476 million due to the recognition of impairment losses and other factors in the previous consolidated fiscal year, resulting in situations that raise substantial doubt about the going concern assumption. To improve this situation, the Group has continued to work on improving its business structure since the previous consolidated fiscal year. In addition to reducing fixed costs through business efficiency improvements and the consolidation of operating bases already implemented, the Group improved its earnings structure as the recognition of impairment losses in the previous consolidated fiscal year substantially reduced its amortization burden, achieving a return to profitability in the current consolidated fiscal year.」
While situations that raise substantial doubt about the going concern assumption still exist, the company states that net assets increased from ¥221 million to ¥476 million and that it achieved a return to profitability in the current fiscal year through business efficiency improvements, the consolidation of operating bases, and a reduced amortization burden. - FY2026-H1MitigatedAnnual report
「Although circumstances exist that could raise significant doubt about the going concern assumption, we have determined that no material uncertainty exists and therefore that a note regarding the going concern assumption is not required.」
While situations that raise substantial doubt about the going concern assumption still exist, the company has determined that no material uncertainty exists due to business efficiency improvements, the consolidation of operating bases, improvements to its earnings structure, and the securing of borrowing facilities from financial institutions and the parent company. - FY2025First statedAnnual report
「As the Group recognized an impairment loss during the current consolidated fiscal year, its net assets had declined to ¥221 million at the end of the current consolidated fiscal year, and circumstances existed that raised material uncertainty regarding the going concern assumption.」
The decrease in net assets to ¥221 million has been identified for the first time as a key risk, as it creates a situation that raises substantial doubt about the going concern assumption. However, the company states that no material uncertainty exists, citing factors including the securing of borrowing facilities.