Losses Caused by COVID-19 and Significant Doubt Regarding the Going Concern Assumption
First written in FY2021-Q2. 1 of 3 entries say "Mitigated", first in FY2021-Q3. Latest entry: FY2022-Q1.
The whole theme swung hardest in 2025: 2 of 10 companies on the "Worse" side.
8 other companies' latest entry also says "Dropped".
- FY2022-Q1DroppedAnnual report
「During the cumulative period of the first quarter of the consolidated fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The business risks section of this quarterly report does not explicitly mention events that could raise material doubt about the going concern assumption, as had been stated through the previous quarter. This alone does not establish that the risk has been eliminated. - FY2021-Q3MitigatedAnnual report
「While aiming to return to profitability in the second half of the current consolidated fiscal year, the Company Group achieved a return to profitability in the third-quarter consolidated accounting period. ... The Company has resolved to submit a proposal for the issuance of preferred shares totaling ¥2 billion.」
Although events that could raise material doubt about the going concern assumption continued to exist, the Company achieved a return to profitability in the 3-month third quarter and outlined financial measures including a ¥5,000 million commitment line, ¥1,253 million in refinancing, and a plan to issue preferred shares totaling ¥2 billion. - FY2021-Q2First statedAnnual report
「The Company Group recorded an operating loss of ¥865 million and a quarterly net loss attributable to owners of the parent of ¥1,674 million for the six months ended the second quarter of the current consolidated fiscal year, due to a substantial decline in sales caused by the spread of COVID-19. Accordingly, events or conditions that could raise material doubt about the going concern assumption exist.」
For the first time, the Company explicitly identified events and conditions that could raise material doubt about the going concern assumption, following a substantial decline in revenue and the recording of losses caused by the infectious disease. However, it determined that no material uncertainty regarding the going concern assumption existed, citing a ¥5,000 million commitment line, ¥1,253 million in refinancing, and the expected support of financial institutions.