Recording of extraordinary income and extraordinary loss
SAKURA internet Inc. (the filing company)
Services for generative AI
Approval of the grant award based on the Ministry of Economy, Trade and Industry's certification of the plan to secure the supply of cloud programs, and the portion of the grant received on 24 February 2026 that will be allocated to the acquisition of fixed assets in the first quarter of the fiscal year ending March 2027
Government subsidy income (extraordinary gain): up to ¥2,587 million; loss on reduction of fixed assets (extraordinary loss): up to ¥2,587 million. The portion of the grant remaining after the amount allocated to fixed assets will be recognized as subsidy income (non-operating income).
First quarter of the fiscal year ending March 2027
The impact on consolidated results for the fiscal year ending March 2027 is expected to be immaterial.
Related procedures
Grant award approval
Ministry of Economy, Trade and Industry
The Company will finalize the accounting treatment and disclose the final amount recognized in its first-quarter results announcement for the fiscal year ending March 2027, scheduled for July 2026.
The final amount recognized is scheduled to be disclosed in the July 2026 first-quarter results announcement for the fiscal year ending March 2027.
| Item | Details |
|---|---|
| Event name | Recording of extraordinary income and extraordinary loss |
| Date of occurrence | 15 June 2026 (the date notification was received from the Ministry of Economy, Trade and Industry that the grant award had been approved) |
| Date recognized / date notice received | 15 June 2026 |
| Subject Entity | SAKURA internet Inc. (the filing company) |
| Target Locations / Products | Services for generative AI |
| Cause | Approval of the grant award based on the Ministry of Economy, Trade and Industry's certification of the plan to secure the supply of cloud programs, and the portion of the grant received on 24 February 2026 that will be allocated to the acquisition of fixed assets in the first quarter of the fiscal year ending March 2027 |
| Amount of Impact on Business Performance | Government subsidy income (extraordinary gain): up to ¥2,587 million; loss on reduction of fixed assets (extraordinary loss): up to ¥2,587 million. The portion of the grant remaining after the amount allocated to fixed assets will be recognized as subsidy income (non-operating income). |
| Accounting period in which recognized | First quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | The impact on consolidated results for the fiscal year ending March 2027 is expected to be immaterial. |
| Type of litigation or proceeding | Grant award approval |
| Court or authority | Ministry of Economy, Trade and Industry |
| Outlook | The Company will finalize the accounting treatment and disclose the final amount recognized in its first-quarter results announcement for the fiscal year ending March 2027, scheduled for July 2026. |
| Planned follow-up disclosure | The final amount recognized is scheduled to be disclosed in the July 2026 first-quarter results announcement for the fiscal year ending March 2027. |
Items this document does not state (12)
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 Company received notification on 15 June 2026 that the grant award had been approved based on the Ministry of Economy, Trade and Industry's certification of the plan to secure the supply of cloud programs. The portion of the grant allocated to the acquisition of fixed assets is expected to be recognized in equal amounts as government subsidy income and a loss on reduction of fixed assets.