Establishment of an Investigation Committee into the Accounting Treatment of a Former Consolidated Subsidiary
Abit株式会社 (the Company's former consolidated subsidiary, merged with the Company effective 31 March 2025)
Transactions and similar transactions conducted by Abit in the fiscal years ended June 2019 and June 2020, as well as related accounting treatment and internal control conditions from October 2019 to March 2025, when Abit was a consolidated subsidiary of the Company
疑義 concerning fictitious sales without any underlying transactions, sales recorded for entities with no substantive operations, and the accounting treatment of bad debts. The 2 individuals who were representative directors of Abit at the time are believed to have been specifically involved.
Company response
Established on 27 April 2026. Comprises 2 external experts. Chair: Hirai Futoshi (平井太), attorney, 株式会社アカウンティング・アドバイザリー; member: Ohashi Daisuke (大橋大輔), certified public accountant, 株式会社アカウンティング・アドバイザリー
The 2 individuals who were representative directors of Abit at the time are believed to have been specifically involved in the疑義 described above. Compensation reductions, resignations and other measures: Not disclosed.
The impact on the Company's results remains undetermined. The Company will promptly disclose any material impact that is required to be disclosed once identified.
The investigation committee is scheduled to begin its investigation promptly and is expected to deliver its investigation report around late May 2026. Following receipt of the report, the Company expects to review its contents and disclose them promptly. Depending on the facts, corrections may be required to prior-year securities reports, semi-annual reports, earnings summaries and other filings.
The investigation report is expected to be received around late May 2026. The Company plans to promptly disclose the investigation report and any material impact identified. Publication of the earnings summaries for the third quarter and full year of the fiscal year ending March 2026 is expected to be postponed until around late June.
| Item | Details |
|---|---|
| Event name | Establishment of an Investigation Committee into the Accounting Treatment of a Former Consolidated Subsidiary |
| Date of occurrence | 27 April 2026 (the date the investigation committee was established) |
| Date recognized / date notice received | 21 April 2026 (the date the report of the findings was received from 有限責任中部総合監査法人) |
| Subject Entity | Abit株式会社 (the Company's former consolidated subsidiary, merged with the Company effective 31 March 2025) |
| Target Locations / Products | Transactions and similar transactions conducted by Abit in the fiscal years ended June 2019 and June 2020, as well as related accounting treatment and internal control conditions from October 2019 to March 2025, when Abit was a consolidated subsidiary of the Company |
| Cause | 疑義 concerning fictitious sales without any underlying transactions, sales recorded for entities with no substantive operations, and the accounting treatment of bad debts. The 2 individuals who were representative directors of Abit at the time are believed to have been specifically involved. |
| Impact on Earnings Forecast | The impact on the Company's results remains undetermined. The Company will promptly disclose any material impact that is required to be disclosed once identified. |
| Investigation structure | Established on 27 April 2026. Comprises 2 external experts. Chair: Hirai Futoshi (平井太), attorney, 株式会社アカウンティング・アドバイザリー; member: Ohashi Daisuke (大橋大輔), certified public accountant, 株式会社アカウンティング・アドバイザリー |
| Directors' and officers' liability | The 2 individuals who were representative directors of Abit at the time are believed to have been specifically involved in the疑義 described above. Compensation reductions, resignations and other measures: Not disclosed. |
| Outlook | The investigation committee is scheduled to begin its investigation promptly and is expected to deliver its investigation report around late May 2026. Following receipt of the report, the Company expects to review its contents and disclose them promptly. Depending on the facts, corrections may be required to prior-year securities reports, semi-annual reports, earnings summaries and other filings. |
| Planned follow-up disclosure | The investigation report is expected to be received around late May 2026. The Company plans to promptly disclose the investigation report and any material impact identified. Publication of the earnings summaries for the third quarter and full year of the fiscal year ending March 2026 is expected to be postponed until around late June. |
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.To clarify the matter concerning Abit's past accounting treatment, ensure objectivity and transparency, and determine whether and how the matter affected the Company's financial statements and other financial information.