Notice Regarding the Recognition of Non-operating Expenses and Extraordinary Losses, Increase in Valuation Difference on Other Securities, and Differences Between Earnings Forecasts and Actual Results
V-cube,Inc., consolidated subsidiary Wizlearn Technologies Pte. Ltd., TEN Holdings, Inc., whose exclusion from the consolidated accounts was being pursued, and equity-method affiliate Exena Learning Hub Pte. Ltd.
Certain streaming studios and software related to the domestic Event DX business, software held by TEN, and certain assets of businesses other than the Event DX business
The main causes were fluctuations in foreign exchange rates affecting foreign-currency-denominated assets and liabilities within the Group; the expected recoverable amount of the investment in Exena Learning Hub Pte. Ltd. falling below its carrying amount; the failure to exclude TEN from the consolidated accounts, resulting in its significantly weak performance being included in the consolidated results; declining profitability of the domestic Event DX business and software held by TEN; and the inability to reach agreement with the accounting auditor regarding the validity of the business plan and the method for determining fair value.
Foreign exchange loss of ¥97.053 million (non-operating expense); equity-method investment loss of ¥47.065 million (non-operating expense, or ¥45.546 million after offsetting equity-method investment income in the earnings report); impairment losses of ¥1,993.619 million (extraordinary loss, including ¥1,282.831 million for the domestic Event DX business and ¥627.807 million for TEN's software); gain on sale of investment securities of ¥1,121.787 million; and a ¥7.585 million increase in the valuation difference on other securities in the fourth quarter
Fiscal year ended December 2025 (including the fourth quarter of the fiscal year ended December 2025)
No revision to the earnings forecast was made, and the impact was reflected in the actual results for the fiscal year ended December 2025. Adjusted EBITDA was ¥156 million, compared with the forecast of ¥1,050 million; operating loss was ¥2,059 million, compared with the forecast of ¥700 million; and net loss attributable to owners of the parent was ¥3,173 million, compared with the forecast of net income of ¥100 million.
Company response
The Company received support in preparing the business plan from an external consulting firm and held discussions with the accounting auditor and TEN's local auditor.
TEN is expected to be excluded from the consolidated accounts in the fiscal year ending December 2026.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of Non-operating Expenses and Extraordinary Losses, Increase in Valuation Difference on Other Securities, and Differences Between Earnings Forecasts and Actual Results |
| Date of occurrence | 31 December 2025 (end of the fiscal year ended December 2025) |
| Date recognized / date notice received | December 2025 (during preliminary discussions with the accounting auditor for the year-end closing, the Company was informed of the possibility of impairment losses) |
| Subject Entity | V-cube,Inc., consolidated subsidiary Wizlearn Technologies Pte. Ltd., TEN Holdings, Inc., whose exclusion from the consolidated accounts was being pursued, and equity-method affiliate Exena Learning Hub Pte. Ltd. |
| Target Locations / Products | Certain streaming studios and software related to the domestic Event DX business, software held by TEN, and certain assets of businesses other than the Event DX business |
| Cause | The main causes were fluctuations in foreign exchange rates affecting foreign-currency-denominated assets and liabilities within the Group; the expected recoverable amount of the investment in Exena Learning Hub Pte. Ltd. falling below its carrying amount; the failure to exclude TEN from the consolidated accounts, resulting in its significantly weak performance being included in the consolidated results; declining profitability of the domestic Event DX business and software held by TEN; and the inability to reach agreement with the accounting auditor regarding the validity of the business plan and the method for determining fair value. |
| Amount of Impact on Business Performance | Foreign exchange loss of ¥97.053 million (non-operating expense); equity-method investment loss of ¥47.065 million (non-operating expense, or ¥45.546 million after offsetting equity-method investment income in the earnings report); impairment losses of ¥1,993.619 million (extraordinary loss, including ¥1,282.831 million for the domestic Event DX business and ¥627.807 million for TEN's software); gain on sale of investment securities of ¥1,121.787 million; and a ¥7.585 million increase in the valuation difference on other securities in the fourth quarter |
| Accounting period in which recognized | Fiscal year ended December 2025 (including the fourth quarter of the fiscal year ended December 2025) |
| Impact on Earnings Forecast | No revision to the earnings forecast was made, and the impact was reflected in the actual results for the fiscal year ended December 2025. Adjusted EBITDA was ¥156 million, compared with the forecast of ¥1,050 million; operating loss was ¥2,059 million, compared with the forecast of ¥700 million; and net loss attributable to owners of the parent was ¥3,173 million, compared with the forecast of net income of ¥100 million. |
| Investigation structure | The Company received support in preparing the business plan from an external consulting firm and held discussions with the accounting auditor and TEN's local auditor. |
| Outlook | TEN is expected to be excluded from the consolidated accounts in the fiscal year ending December 2026. |
Items this document does not state (14)
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 main reasons were that the planned exclusion of TEN from the consolidated accounts did not proceed as scheduled, resulting in TEN's weak performance being included in the consolidated results; the profitability and expected recoverable amounts of the domestic Event DX business and software held by TEN declined; and the Company was unable to reach agreement with the accounting auditor regarding the impairment test and the validity of the business plan. In addition, fluctuations in foreign exchange rates and fees associated with financial measures were cited as factors contributing to the increase in non-operating expenses.