Notice Regarding the Recognition of Non-operating Income, Extraordinary Income and Extraordinary Losses, Variances in Consolidated Results from the Previous Fiscal Year’s Results, and Dividend from Surplus (No Dividend)
CyberStep Holdings,Inc. (the filing company), the Company's consolidated subsidiaries, 株式会社MAKE VALUE, 株式会社3rd, and the seller (an individual)
The online crane game "Treva," the business of trading in used goods including branded watches, and the Company's business-use assets and shared assets (tools, fixtures and equipment, and assets subject to pooled depreciation)
Competition from other companies' services in the market for "Treva," the fact that new businesses remained in the initial investment phase and had not begun contributing to earnings, the emergence of significant uncertainty in the operating environment for the business and serious doubts about the reliability of the assumptions underlying its business plan following MAKE VALUE's filing for commencement of civil rehabilitation proceedings, and the inability to obtain sufficient supporting evidence regarding the seller's financial capacity and the status of security for the consideration paid to acquire the shares of 株式会社3rd
¥59 million in subsidy income (non-operating income), ¥30 million in gains on merchandise sales (non-operating income), ¥25 million in gain on reversal of subscription rights to shares (extraordinary income), ¥211 million in valuation loss on shares of an affiliated company (extraordinary loss in the standalone financial statements, eliminated on consolidation), ¥7 million in impairment losses (extraordinary loss), the full ¥680 million carrying amount of goodwill (extraordinary loss), and ¥1,250 million in provision for allowance for doubtful accounts (extraordinary loss)
The fourth-quarter consolidated accounting period of the fiscal year ending May 2026 (1 March 2026–31 May 2026) and the fiscal year ending May 2026
¥1,250 million, representing a claim for restitution against the seller (an individual)
Related procedures
MAKE VALUE's filing for commencement of civil rehabilitation proceedings
Extremely significant uncertainties have arisen regarding the continuation of the business and maintenance of business relationships. The Company states that it will work toward an early recovery in business performance and the resumption of dividend payments for shareholders.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of Non-operating Income, Extraordinary Income and Extraordinary Losses, Variances in Consolidated Results from the Previous Fiscal Year’s Results, and Dividend from Surplus (No Dividend) |
| Date of occurrence | 1 March 2026–31 May 2026 (the fourth-quarter consolidated accounting period of the fiscal year ending May 2026 covered by the recognition); 13 July 2026 (MAKE VALUE's filing for commencement of civil rehabilitation proceedings) |
| Subject Entity | CyberStep Holdings,Inc. (the filing company), the Company's consolidated subsidiaries, 株式会社MAKE VALUE, 株式会社3rd, and the seller (an individual) |
| Target Locations / Products | The online crane game "Treva," the business of trading in used goods including branded watches, and the Company's business-use assets and shared assets (tools, fixtures and equipment, and assets subject to pooled depreciation) |
| Cause | Competition from other companies' services in the market for "Treva," the fact that new businesses remained in the initial investment phase and had not begun contributing to earnings, the emergence of significant uncertainty in the operating environment for the business and serious doubts about the reliability of the assumptions underlying its business plan following MAKE VALUE's filing for commencement of civil rehabilitation proceedings, and the inability to obtain sufficient supporting evidence regarding the seller's financial capacity and the status of security for the consideration paid to acquire the shares of 株式会社3rd |
| Amount of Impact on Business Performance | ¥59 million in subsidy income (non-operating income), ¥30 million in gains on merchandise sales (non-operating income), ¥25 million in gain on reversal of subscription rights to shares (extraordinary income), ¥211 million in valuation loss on shares of an affiliated company (extraordinary loss in the standalone financial statements, eliminated on consolidation), ¥7 million in impairment losses (extraordinary loss), the full ¥680 million carrying amount of goodwill (extraordinary loss), and ¥1,250 million in provision for allowance for doubtful accounts (extraordinary loss) |
| Accounting period in which recognized | The fourth-quarter consolidated accounting period of the fiscal year ending May 2026 (1 March 2026–31 May 2026) and the fiscal year ending May 2026 |
| Type of litigation or proceeding | MAKE VALUE's filing for commencement of civil rehabilitation proceedings |
| Date of filing / date of action | 13 July 2026 (MAKE VALUE's filing for commencement of civil rehabilitation proceedings) |
| Amount of receivables at risk of non-collection or delayed collection | ¥1,250 million, representing a claim for restitution against the seller (an individual) |
| Outlook | Extremely significant uncertainties have arisen regarding the continuation of the business and maintenance of business relationships. The Company states that it will work toward an early recovery in business performance and the resumption of dividend payments for shareholders. |
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 decrease in net sales was attributable to the increasingly competitive environment surrounding the core Treva service, which made it more difficult to acquire users and maintain their continued use, as well as the fact that new businesses remained in the initial investment phase and had not begun contributing to earnings. The operating loss narrowed through cost control and greater management efficiency, but net loss attributable to owners of the parent widened as a result of recognizing various items of non-operating income, extraordinary income and extraordinary losses. No dividend was paid because the Company recorded a net loss for the fiscal year.