Events or conditions that raise significant doubt regarding the going-concern assumption
CyberStep Holdings,Inc. and the Group
Online game business (including "Treva," "TERAVIT" and others), new services, offices and consolidated subsidiaries
The Company recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent for six consecutive periods through the previous consolidated fiscal year. Profit declined due to the postponement of new-title releases and higher development costs resulting from extended development periods, intensifying competition following other companies’ entry into existing titles, and upfront investment in service infrastructure and technology development.
Operating loss of ¥596 million, ordinary loss of ¥611 million, quarterly net loss attributable to owners of the parent of ¥631 million, and extraordinary loss (impairment loss) of ¥20 million
First quarter of the fiscal year ending May 2027 (1 June 2026 to 31 August 2026)
The consolidated earnings forecast for the fiscal year ending May 2027 is undetermined. As it is currently difficult to reasonably calculate an earnings forecast, the Company will promptly disclose one once an appropriate and reasonable forecast can be calculated. There is no revision to the most recently disclosed earnings forecast.
Company response
① Stabilizing the financial base: The Company will pursue additional financing through methods optimal for the Group, while working to improve profitability and reduce costs continuously. ② Improving profitability: The Company will implement measures to differentiate itself from competitors and expand its services globally, increase the variety of prizes offered, develop new content, expand content through collaborations with prominent influencers and other initiatives, and carry out effective promotions. ③ Reducing expenses: The Company will reduce outsourcing costs at "Treva" by reviewing its outsourcing providers, downsize its offices, sublease temporarily unused space, review personnel allocations and reduce executive compensation. ④ Selective allocation and concentration of management resources: The Company will sell businesses and reorganize subsidiaries.
Reduction of executive compensation
The Company will pursue additional financing, improve the profitability of existing titles, reduce expenses, and concentrate management resources on businesses and subsidiaries expected to generate profits in the future. The measures are still being implemented, and material uncertainty regarding the going concern assumption remains at present.
The Company will promptly disclose an appropriate and reasonable earnings forecast once one can be calculated.
| Item | Details |
|---|---|
| Event name | Events or conditions that raise significant doubt regarding the going-concern assumption |
| Date of occurrence | 31 August 2026 (end of the first quarter of the current consolidated fiscal year) |
| Subject Entity | CyberStep Holdings,Inc. and the Group |
| Target Locations / Products | Online game business (including "Treva," "TERAVIT" and others), new services, offices and consolidated subsidiaries |
| Cause | The Company recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent for six consecutive periods through the previous consolidated fiscal year. Profit declined due to the postponement of new-title releases and higher development costs resulting from extended development periods, intensifying competition following other companies’ entry into existing titles, and upfront investment in service infrastructure and technology development. |
| Amount of Impact on Business Performance | Operating loss of ¥596 million, ordinary loss of ¥611 million, quarterly net loss attributable to owners of the parent of ¥631 million, and extraordinary loss (impairment loss) of ¥20 million |
| Accounting period in which recognized | First quarter of the fiscal year ending May 2027 (1 June 2026 to 31 August 2026) |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending May 2027 is undetermined. As it is currently difficult to reasonably calculate an earnings forecast, the Company will promptly disclose one once an appropriate and reasonable forecast can be calculated. There is no revision to the most recently disclosed earnings forecast. |
| Measures to prevent recurrence | ① Stabilizing the financial base: The Company will pursue additional financing through methods optimal for the Group, while working to improve profitability and reduce costs continuously. ② Improving profitability: The Company will implement measures to differentiate itself from competitors and expand its services globally, increase the variety of prizes offered, develop new content, expand content through collaborations with prominent influencers and other initiatives, and carry out effective promotions. ③ Reducing expenses: The Company will reduce outsourcing costs at "Treva" by reviewing its outsourcing providers, downsize its offices, sublease temporarily unused space, review personnel allocations and reduce executive compensation. ④ Selective allocation and concentration of management resources: The Company will sell businesses and reorganize subsidiaries. |
| Directors' and officers' liability | Reduction of executive compensation |
| Outlook | The Company will pursue additional financing, improve the profitability of existing titles, reduce expenses, and concentrate management resources on businesses and subsidiaries expected to generate profits in the future. The measures are still being implemented, and material uncertainty regarding the going concern assumption remains at present. |
| Planned follow-up disclosure | The Company will promptly disclose an appropriate and reasonable earnings forecast once one can be calculated. |
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.Profit declined due to the postponement of new-title releases and higher development costs resulting from extended development periods, intensifying competition following other companies’ entry into existing titles, and upfront investment in service infrastructure and technology development. This resulted in six consecutive periods of losses and significant concerns over liquidity.