Material Doubt About the Going Concern Assumption Due to Continuing Operating Losses
First written in FY2020-Q1. 10 of 19 entries say "Mitigated", first in FY2021-Q1. Latest entry: FY2025.
Digital Plus moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 26 of 48 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「As a result, revenue for the consolidated fiscal year was ¥933.135 million, up 11.3% year on year, while the operating loss was ¥3.863 million, compared with operating income of ¥56.172 million in the previous year.」
After reporting a return to operating profitability in the previous year, the company returned to an operating loss this year, and the numerical risk associated with continued operating losses has re-emerged. - FY2024MitigatedAnnual report
「As the above measures have eliminated significant liquidity concerns at this time, we have determined that the events or circumstances giving rise to significant doubt regarding the going-concern assumption have been resolved and that no significant uncertainty regarding the going-concern assumption remains.」
It was determined that significant uncertainty regarding the going-concern assumption no longer remained following the return to operating profitability, securing of funding, and early redemption and partial cancellation of the CBs. - FY2024-Q2WorsenedAnnual report
「During the second quarter consolidated cumulative period, revenue was ¥408.637 million and operating profit was ¥39.153 million. However, before the quarterly securities report was submitted, the Company again breached the CB financial covenants concerning the average daily trading value of the Company’s common shares in regular trading and the balance of cash and cash equivalents presented in the condensed quarterly consolidated financial statements. As a result, events or conditions that may raise significant doubt about the going concern assumption continue to exist.」
Although the company recorded operating income and quarterly profit, it again breached financial covenants relating to the average trading value of its CBs and its cash balance, and significant doubt regarding the going-concern assumption remains. - FY2024-Q1WorsenedAnnual report
「Our Group had been working to resolve and improve these events and conditions by implementing countermeasures. However, regarding future financing, there is a possibility that we may be unable to secure the necessary amount in accordance with our policy, depending on whether the financing succeeds, its timing, and a decline in the share price. In addition, we depend on external conditions as to whether we can continue to obtain Macquarie’s waiver, meaning its indication that it will not exercise its early redemption right, and as to the extent and duration of the impact that future operating results generated through business operations will have on cash flows. Accordingly, we recognize that material uncertainty exists regarding the going concern assumption at present.」
Previously, the Company had stated that no material uncertainty existed, but its determination changed to one recognizing material uncertainty due to a breach of the CB financial covenants, uncertainty regarding financing, and dependence on continuing to obtain the waiver. - FY2023-Q3WorsenedAnnual report
「During the third quarter consolidated cumulative period, the Company’s transition to IFRS from the first quarter consolidated accounting period and active investment in personnel, including executive hires, resulted in higher one-time expenses and an IFRS operating loss of ¥138.835 million. However, total current assets under IFRS for the third quarter consolidated cumulative period were ¥966.746 million, while total current liabilities under IFRS were ¥746.649 million, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured.」
The operating loss widened from ¥99.323 million in the previous quarter to ¥138.835 million. At the same time, the determination that no material uncertainty exists regarding the going concern assumption remains in place, based on current assets, current liabilities, and the securing of working capital. - FY2023-Q2WorsenedAnnual report
「During the second quarter consolidated cumulative period, revenue declined due to the impact of the business transfer carried out on 30 September 2022, and the Company had transitioned to IFRS from the first quarter consolidated accounting period. In addition, one-time expenses increased due to active investment in personnel, including executive hires, resulting in an IFRS operating loss of ¥99.323 million. However, total current assets under IFRS for the second quarter consolidated cumulative period were ¥981.399 million, while total current liabilities under IFRS were ¥657.440 million, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured. Accordingly, we have determined that no material uncertainty exists regarding the going concern assumption.」
An operating loss of ¥99.323 million was recorded, widening from the ¥61.059 million operating loss in the previous quarter. At the same time, the determination that no material uncertainty exists regarding the going concern assumption remains in place, based on current assets, current liabilities, and the securing of working capital. - FY2023-Q1MitigatedAnnual report
「During the first quarter consolidated cumulative period, revenue declined due to the impact of the business transfer carried out on 30 September 2022, and the Company transitioned to IFRS from the first quarter consolidated cumulative period. In addition, one-time expenses increased due to active investment in personnel, including executive hires, resulting in an IFRS operating loss of ¥61.059 million. However, total current assets under IFRS for the first quarter consolidated cumulative period were ¥1,282.016 million, while total liabilities under IFRS were ¥833.071 million, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured. Accordingly, we have determined that no material uncertainty exists regarding the going concern assumption.」
Although an operating loss of ¥61.059 million was recorded, the Company maintained its determination that no material uncertainty existed regarding the going concern assumption, based on current assets of ¥1,282.016 million, liabilities of ¥833.071 million, and the securing of working capital. - FY2022MitigatedAnnual report
「On the other hand, although operating profit for the current consolidated fiscal year was ¥3.213 million, net loss attributable to owners of the parent was ¥179.638 million due to the impact of extraordinary losses. However, total current assets for the current consolidated fiscal year were ¥1,313.278 million, while total liabilities were ¥730.217 million, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured. Accordingly, we have determined that no material uncertainty exists regarding the going concern assumption.」
Operating profit returned to positive territory, while the net loss was explained as resulting from extraordinary losses. The determination that no material uncertainty exists regarding the going concern assumption remains in place, based on the status of current assets, liabilities, and working capital. - FY2022-Q3MitigatedAnnual report
「As a result of these activities, total current assets for the third quarter consolidated accounting period were ¥1,147.571 million, while total liabilities were ¥504.380 million, maintaining a sound financial position. Cash and deposits necessary for future working capital have also been secured. Accordingly, we have determined that no material uncertainty exists regarding the going concern assumption.」
The determination that no material uncertainty exists regarding the going concern assumption remains in place, based on the return to operating profitability, financing proceeds, and the status of current assets and liabilities. - FY2022-Q2MitigatedAnnual report
「During the second quarter consolidated cumulative period, consolidated operating profit remained positive at ¥18.888 million. As a result of these activities, total current assets for the second quarter consolidated accounting period were ¥1,069.678 million, while total liabilities were ¥427.037 million, a decrease of ¥30.117 million from ¥457.154 million at the end of the previous consolidated fiscal year. The equity ratio was 71.1%, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured. Accordingly, we have determined that no material uncertainty exists regarding the going concern assumption.」
The Company reported consolidated operating profit of ¥18.888 million, liabilities of ¥427.037 million, an equity ratio of 71.1%, and the securing of working capital, maintaining its determination that no material uncertainty existed regarding the going concern assumption. - FY2022-Q1MitigatedAnnual report
「During the first quarter consolidated cumulative period, consolidated operating profit remained positive at ¥5.107 million. In addition, working capital on hand was increased through the procurement of ¥120 million from the exercise of the 8th Series Stock Acquisition Rights dated 22 November 2021 and a third-party allotment capital increase totaling ¥94.923 million paid in on 30 November 2021. As a result of these activities, total assets for the first quarter consolidated accounting period were ¥1,493.111 million, total liabilities were ¥434.842 million, and the equity ratio was 70.8%, maintaining a sound financial position.」
The Company reported operating profit of ¥5.107 million, financing proceeds, liabilities of ¥434.842 million, and an equity ratio of 70.8%, maintaining its determination that no material uncertainty existed regarding the going concern assumption. - FY2021MitigatedAnnual report
「As a result of these activities, total current assets for the current consolidated fiscal year were ¥879.854 million, while total liabilities were ¥457.154 million, a decrease of ¥156.689 million from ¥613.844 million at the end of the previous consolidated fiscal year. The equity ratio was 64.6%, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured. Accordingly, we have determined that no material uncertainty exists regarding the going concern assumption.」
Regarding the going-concern risk arising from continued operating losses, the Company stated that it had determined that no material uncertainty existed on the basis of reduced liabilities, an equity ratio of 64.6%, and the securing of working capital. - FY2021-Q3MitigatedAnnual report
「As a result of these activities, total current assets for the third quarter consolidated accounting period were ¥817.302 million, while total liabilities were ¥420.125 million, a decrease of ¥193.719 million from ¥613.844 million at the end of the previous consolidated fiscal year. The equity ratio was 67.1%, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured. Accordingly, we have determined that no material uncertainty exists regarding the going concern assumption.」
The Company cited a decrease in liabilities, an equity ratio of 67.1%, and the securing of working capital, and maintained its determination that no material uncertainty existed regarding the going concern assumption. - FY2021-Q2MitigatedAnnual report
「As a result, the financial restructuring has produced a certain level of results, and we believe that the Group can now operate its businesses from a sound financial position as it moves toward active business expansion. As a result of these activities, total current assets for the second quarter consolidated accounting period were ¥797.041 million, while total liabilities were ¥382.020 million, a decrease of ¥231.823 million from ¥613.844 million at the end of the previous consolidated fiscal year. The equity ratio was 69.4%, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured.」
The Company explained that the financial restructuring had produced a certain level of results and reported liabilities of ¥382.020 million, an equity ratio of 69.4%, and the securing of cash and deposits necessary for working capital. The determination that no material uncertainty exists regarding the going concern assumption remains in place. - FY2021-Q1MitigatedAnnual report
「As a result of these activities, total current assets for the first quarter consolidated accounting period were ¥880.375 million, while total liabilities were ¥446.778 million, a decrease of ¥167.066 million from ¥613.844 million at the end of the previous consolidated fiscal year. The equity ratio was 66.9%, maintaining a sound financial position, and cash and deposits necessary for future working capital have been secured. Accordingly, we have determined that no material uncertainty exists regarding the going concern assumption.」
The Company cited a decrease in liabilities, an equity ratio of 66.9%, and the securing of working capital, and stated that it had determined that no material uncertainty existed regarding the going concern assumption. - FY2020RestatedAnnual report
「Our Group has continued to report operating losses since the fiscal year ended September 2017, and recognizes that events or conditions exist that may raise significant doubt about the going concern assumption.」
While the continued operating losses and conditions giving rise to significant doubt about the going concern assumption have been reaffirmed, the determination that no material uncertainty exists has been maintained on the basis of improvements in the financial position and the securing of sufficient cash and deposits. - FY2020-Q3RestatedAnnual report
「Our Group has continued to report operating losses since the fiscal year ended September 2017 and recognizes that events or conditions exist that may raise significant doubt about the going concern assumption.」
The continued operating losses since the fiscal year ended September 2017 and the existence of events and conditions giving rise to significant doubt about the going concern assumption have been reaffirmed. At the same time, the determination that no material uncertainty exists as a result of the measures taken remains in place. - FY2020-Q2RestatedAnnual report
「Our Group has continued to report operating losses since the fiscal year ended September 2017, and recognizes that events or conditions exist that may raise significant doubt about the going concern assumption.」
The continued operating losses since the fiscal year ended September 2017 and the existence of events and conditions giving rise to significant doubt about the going concern assumption have been reaffirmed. At the same time, the determination that no material uncertainty exists as a result of the measures taken remains in place. - FY2020-Q1First statedAnnual report
「Our Group has continued to report operating losses since the fiscal year ended September 2017, and recognizes that events or conditions exist that may raise significant doubt about the going concern assumption. However, as described in “2. Management’s Analysis of Financial Position, Operating Results and Cash Flows, (9) Significant Events, etc.,” we have implemented measures to resolve or improve these significant events and other matters, and therefore have determined that no material uncertainty exists regarding the going concern assumption.」
Against the backdrop of continued operating losses since the fiscal year ended September 2017, the existence of events and conditions giving rise to significant doubt about the going concern assumption was explicitly stated for the first time. At the same time, the Company also stated that it had determined that no material uncertainty existed as a result of the measures implemented.