Change in status of a consolidated subsidiary (share transfer) and financial support including debt forgiveness under the policy to improve the financial position
capable Co., Ltd. (a consolidated subsidiary of the reporting company)
Live streaming business, YouTube business and store business
The business environment has become challenging due to the diversification of streaming platforms and changes in viewing trends, among other factors, resulting in continuing net losses and a state of excess liabilities. The reporting company is working to improve its business portfolio and selectively concentrate its management resources.
Debt forgiveness amounted to ¥52 million from MOMO CREATIVE PTE. LTD. and ¥52 million from Okamoto Yoshiyuki (岡本吉起), for a total of ¥104 million. The specific impact on consolidated results and the accounting classification are Not disclosed
Fiscal year ending May 2026 (an impact on consolidated results for the current fiscal year is expected)
The impact on consolidated results for the current fiscal year (fiscal year ending May 2026) is expected to be immaterial. If any matter requiring disclosure arises, it will be disclosed promptly.
Change in voting rights ownership ratio
The voting rights ownership percentage is the proportion of the voting rights exercisable at a shareholders' meeting held by the shareholder.
100,000 shares, 80% of voting rights (CAVE Interactive CO.,LTD.; record date: Not disclosed)
0 shares (voting rights ownership and record date: Not disclosed)
The company aims to improve profit margins over the medium to long term and transform its earnings structure by reducing the risk of future losses from unprofitable businesses and concentrating management resources on the core business and highly profitable business areas.
If any matter requiring disclosure arises, it will be disclosed promptly.
| Item | Details |
|---|---|
| Event name | Change in status of a consolidated subsidiary (share transfer) and financial support including debt forgiveness under the policy to improve the financial position |
| Date of occurrence | 31 March 2026 (date of execution of the debt forgiveness agreement, share transfer agreement and share transfer) |
| Subject Entity | capable Co., Ltd. (a consolidated subsidiary of the reporting company) |
| Target Locations / Products | Live streaming business, YouTube business and store business |
| Cause | The business environment has become challenging due to the diversification of streaming platforms and changes in viewing trends, among other factors, resulting in continuing net losses and a state of excess liabilities. The reporting company is working to improve its business portfolio and selectively concentrate its management resources. |
| Amount of Impact on Business Performance | Debt forgiveness amounted to ¥52 million from MOMO CREATIVE PTE. LTD. and ¥52 million from Okamoto Yoshiyuki (岡本吉起), for a total of ¥104 million. The specific impact on consolidated results and the accounting classification are Not disclosed |
| Accounting period in which recognized | Fiscal year ending May 2026 (an impact on consolidated results for the current fiscal year is expected) |
| Impact on Earnings Forecast | The impact on consolidated results for the current fiscal year (fiscal year ending May 2026) is expected to be immaterial. If any matter requiring disclosure arises, it will be disclosed promptly. |
| Voting rights ownership percentage before the change | 100,000 shares, 80% of voting rights (CAVE Interactive CO.,LTD.; record date: Not disclosed) |
| Voting rights ownership percentage after the change | 0 shares (voting rights ownership and record date: Not disclosed) |
| Outlook | The company aims to improve profit margins over the medium to long term and transform its earnings structure by reducing the risk of future losses from unprofitable businesses and concentrating management resources on the core business and highly profitable business areas. |
| Planned follow-up disclosure | If any matter requiring disclosure arises, it will be disclosed promptly. |
Items this document does not state (13)
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 aim is to improve profit margins over the medium to long term and transform the earnings structure by withdrawing from unprofitable businesses and concentrating management resources on the core business and highly profitable business areas. capable remained in a challenging situation due to the diversification of streaming platforms and changes in viewing trends, and had recorded recurring net losses while in a state of excess liabilities.