Consolidated financial results for the fiscal year ended May 2026 and material uncertainty regarding the going-concern assumption
CyberStep Holdings,Inc. and the consolidated subsidiaries of the Group
The online games business, including the “Toreba” online crane game and “Teravit” online game, the entertainment business, and other product planning and wholesale businesses
Postponed releases and higher development costs due to longer development periods for new titles, intensified competition following the entry of other companies into existing titles, intensified competition to acquire users in the online games business, rising production costs, and difficulties in establishing the necessary operating structure. The material uncertainty regarding the going-concern assumption is attributable to significant losses for five consecutive periods, negative cash flow from operating activities, and uncertainty regarding additional fundraising and improvements in profitability.
Net loss attributable to owners of the parent: ¥3,417 million; operating loss: ¥1,629 million; ordinary loss: ¥1,536 million; extraordinary losses: ¥1,970 million, including impairment losses of ¥720 million and a provision for allowance for doubtful accounts of ¥1,250 million
Fiscal year ended May 2026 (1 June 2025 to 31 May 2026)
The consolidated earnings forecast for the fiscal year ending May 2027 is undetermined. As it is difficult to reasonably calculate an earnings forecast at this stage, the company will promptly disclose one once it determines that disclosure is possible.
¥1,250 million (a claim for repayment of the amount paid to the individual seller as consideration for the acquisition of shares in 株式会社3rd under the share transfer agreement dated 20 October 2025)
Company response
① Stabilisation of the financial base: pursue additional fundraising using the method most suitable for the Group. ② Improvement of earning capacity: promote measures to differentiate the Group from other companies and expand services globally. Increase the range of prizes offered through the “Toreba” online crane game, develop new content, expand the content of “Teravit,” strengthen the development structure, and promote and expand the content of other titles. ③ Cost reductions: reduce outsourcing costs by reviewing outsourcing providers, including those handling prize procurement, advertising and delivery for “Toreba”; reduce the size of sales offices; sublet temporarily unused space; cut various expenses, including sales-office rent, by reviewing personnel allocation; and reduce executive compensation. ④ Selective concentration of management resources: consider and select businesses and subsidiaries with expected future profitability, and depending on the outcome, proceed with business sales and subsidiary reorganisations.
Reduction of executive compensation (specific reduction amount and applicable persons: not disclosed)
Continue updating existing services and expanding content, managing costs, and acquiring new user segments. The company will work to stabilise its financial base, improve earning capacity, reduce expenses, and selectively concentrate management resources, aiming to resolve the material doubt regarding the going-concern assumption through additional fundraising and improvements in profitability.
The earnings forecast for the fiscal year ending May 2027 will be promptly disclosed once the company determines that disclosure is possible.
| Item | Details |
|---|---|
| Event name | Consolidated financial results for the fiscal year ended May 2026 and material uncertainty regarding the going-concern assumption |
| Date of occurrence | 15 July 2026 (date of disclosure of the financial results summary) |
| Subject Entity | CyberStep Holdings,Inc. and the consolidated subsidiaries of the Group |
| Target Locations / Products | The online games business, including the “Toreba” online crane game and “Teravit” online game, the entertainment business, and other product planning and wholesale businesses |
| Cause | Postponed releases and higher development costs due to longer development periods for new titles, intensified competition following the entry of other companies into existing titles, intensified competition to acquire users in the online games business, rising production costs, and difficulties in establishing the necessary operating structure. The material uncertainty regarding the going-concern assumption is attributable to significant losses for five consecutive periods, negative cash flow from operating activities, and uncertainty regarding additional fundraising and improvements in profitability. |
| Amount of Impact on Business Performance | Net loss attributable to owners of the parent: ¥3,417 million; operating loss: ¥1,629 million; ordinary loss: ¥1,536 million; extraordinary losses: ¥1,970 million, including impairment losses of ¥720 million and a provision for allowance for doubtful accounts of ¥1,250 million |
| Accounting period in which recognized | Fiscal year ended May 2026 (1 June 2025 to 31 May 2026) |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending May 2027 is undetermined. As it is difficult to reasonably calculate an earnings forecast at this stage, the company will promptly disclose one once it determines that disclosure is possible. |
| Amount of receivables at risk of non-collection or delayed collection | ¥1,250 million (a claim for repayment of the amount paid to the individual seller as consideration for the acquisition of shares in 株式会社3rd under the share transfer agreement dated 20 October 2025) |
| Measures to prevent recurrence | ① Stabilisation of the financial base: pursue additional fundraising using the method most suitable for the Group. ② Improvement of earning capacity: promote measures to differentiate the Group from other companies and expand services globally. Increase the range of prizes offered through the “Toreba” online crane game, develop new content, expand the content of “Teravit,” strengthen the development structure, and promote and expand the content of other titles. ③ Cost reductions: reduce outsourcing costs by reviewing outsourcing providers, including those handling prize procurement, advertising and delivery for “Toreba”; reduce the size of sales offices; sublet temporarily unused space; cut various expenses, including sales-office rent, by reviewing personnel allocation; and reduce executive compensation. ④ Selective concentration of management resources: consider and select businesses and subsidiaries with expected future profitability, and depending on the outcome, proceed with business sales and subsidiary reorganisations. |
| Directors' and officers' liability | Reduction of executive compensation (specific reduction amount and applicable persons: not disclosed) |
| Outlook | Continue updating existing services and expanding content, managing costs, and acquiring new user segments. The company will work to stabilise its financial base, improve earning capacity, reduce expenses, and selectively concentrate management resources, aiming to resolve the material doubt regarding the going-concern assumption through additional fundraising and improvements in profitability. |
| Planned follow-up disclosure | The earnings forecast for the fiscal year ending May 2027 will be promptly disclosed once the company determines that disclosure is possible. |
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 cited the postponement of new title releases and higher development costs resulting from longer development periods, intensified competition following the entry of other companies into existing titles, rising production costs, and difficulties in establishing the necessary operating structure as reasons for weak revenue. The earnings forecast for the fiscal year ending May 2027 remains undetermined because it is difficult to reasonably estimate the release timing of new titles, the addition of content and service improvements, and the progress and timing of monetisation for new businesses.