Material doubt regarding going concern and cash-flow concerns
First written in FY2017. 11 of 18 entries say "Mitigated", first in FY2019-Q1. Latest entry: FY2023.
The whole theme swung hardest in 2020: 30 of 70 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「Funds generated from operating activities in the current consolidated fiscal year amounted to ¥121 million, compared with an inflow of ¥566 million in the previous fiscal year.」
For the full year, the company recorded operating profit, ordinary profit and net profit, and operating cash flow was an inflow of ¥121 million. There was no explicit reference to material doubt regarding the going-concern assumption. - FY2023-Q3RestatedAnnual report
「As a result, the Group's performance for the cumulative third quarter under review was as follows: net sales of ¥3,429 million, up 6.1% year on year; operating income of ¥238 million, down 22.3%; ordinary income of ¥238 million, down 27.4%; and profit attributable to owners of the parent of ¥158 million, up 7.1%.」
The company continued to record operating profit, ordinary profit and quarterly net profit attributable to owners of the parent, maintaining profitability after the improvement in performance. - FY2023-Q2MitigatedAnnual report
「As a result, the Group's performance for the cumulative second quarter under review was as follows: net sales of ¥2,354 million, up 16.6% year on year; operating income of ¥242 million, up 179.1%; ordinary income of ¥234 million, up 131.8%; and profit attributable to owners of the parent of ¥184 million, up 476.3%.」
The company recorded operating profit, ordinary profit and quarterly net profit attributable to owners of the parent, and performance continued to improve. - FY2023-Q1MitigatedAnnual report
「As a result, the Group's performance for the cumulative first quarter under review was as follows: net sales of ¥1,159 million, up 19.7% year on year; operating income of ¥105 million, compared with operating income of ¥8 million in the same quarter of the previous year; ordinary income of ¥108 million, compared with ordinary income of ¥12 million; and profit attributable to owners of the parent of ¥64 million, compared with profit attributable to owners of the parent of ¥2 million.」
In response to concerns regarding the going-concern assumption, revenue increased and the company recorded operating profit, ordinary profit and quarterly net profit attributable to owners of the parent, with performance continuing to improve. - FY2022-Q3MitigatedAnnual report
「As a result, the Group's performance for the cumulative third quarter under review was as follows: net sales of ¥3,233 million, up 15.0% year on year; operating income of ¥306 million, up ¥560 million; ordinary income of ¥328 million, up ¥557 million; and profit attributable to owners of the parent of ¥148 million, up ¥425 million.」
In response to concerns regarding the going-concern assumption, the company recorded operating profit, ordinary profit and quarterly net profit attributable to owners of the parent, indicating an improvement in performance from the losses in the same period of the previous year. - FY2022-Q2MitigatedAnnual report
「As a result, the Group's performance for the cumulative second quarter under review was as follows: net sales of ¥2,019 million, up 7.7% year on year; operating income of ¥86 million, up ¥318 million; ordinary income of ¥101 million, up ¥317 million; and profit attributable to owners of the parent of ¥32 million, up ¥273 million.」
In response to concerns regarding the going-concern assumption, the company changed from losses in the same period of the previous year to operating profit, ordinary profit and quarterly net profit, indicating an improvement in performance. - FY2022-Q1MitigatedAnnual report
「As a result, the Group's performance for the cumulative first quarter under review was as follows: net sales of ¥968 million, up 7.1% year on year; operating income of ¥8 million, up ¥161 million; ordinary income of ¥12 million, up ¥158 million; and profit attributable to owners of the parent of ¥2 million, up ¥163 million.」
In the first quarter, the company recorded operating profit, ordinary profit and quarterly net profit attributable to owners of the parent, compared with losses in the same period of the previous year, indicating an improvement in performance related to going-concern concerns. - FY2021MitigatedAnnual report
「Funds generated from operating activities in the current consolidated fiscal year amounted to ¥107 million, compared with an inflow of ¥28 million in the previous fiscal year.」
Operating cash flow was an inflow of ¥107 million. The current year's narrative and risk disclosures contained no explicit reference to material uncertainty regarding the going-concern assumption. - FY2020MitigatedAnnual report
「Funds generated from operating activities in the current consolidated fiscal year amounted to ¥28 million, compared with an inflow of ¥325 million in the previous fiscal year.」
For the full year, the company recorded operating profit of ¥73 million, ordinary profit of ¥77 million and net profit of ¥16 million, while operating cash flow was an inflow of ¥28 million. The annual report contained no explicit reference to material doubt regarding the going-concern assumption, although the operating cash flow inflow decreased from the previous fiscal year. - FY2019MitigatedAnnual report
「Funds generated from operating activities in the current consolidated fiscal year amounted to ¥325 million, compared with an outflow of ¥456 million in the previous fiscal year.」
For the full year, the company recorded operating profit, ordinary profit and net profit, and operating cash flow changed from an outflow of ¥456 million to an inflow of ¥325 million. The annual report contained no explicit reference to the material doubt previously expressed regarding the going-concern assumption, and the breach of financial covenants had also been resolved. - FY2019-Q3RestatedAnnual report
「Our group recorded operating profit of ¥61 million, ordinary profit of ¥67 million and quarterly net profit attributable to owners of the parent of ¥72 million in the nine-month period of the current consolidated fiscal year, indicating a recovery trend. However, because we recorded a significant operating loss in the consolidated fiscal year ended November 2016 and operating losses and net losses attributable to owners of the parent for 3 consecutive fiscal years thereafter, we believe it is necessary to carefully assess whether a full-scale recovery in performance has been achieved. Accordingly, we recognize that circumstances exist that raise substantial doubt about the going-concern assumption.」
Although the company recorded profit in the quarter and was described as being on a recovery trend, substantial doubt regarding the going-concern assumption continued because of losses in the previous 3 consecutive fiscal years. - FY2019-Q2MitigatedAnnual report
「Our group recorded operating profit of ¥33 million, ordinary profit of ¥40 million and quarterly net profit attributable to owners of the parent of ¥46 million in the six-month period of the current consolidated fiscal year, indicating a recovery trend. However, because we recorded a significant operating loss in the consolidated fiscal year ended November 2016 and operating losses and net losses attributable to owners of the parent for 3 consecutive fiscal years thereafter, we believe it is necessary to carefully assess whether a full-scale recovery in performance has been achieved. Accordingly, we recognize that circumstances exist that raise substantial doubt about the going-concern assumption.」
In addition to recording operating profit, ordinary profit and net profit, the company was said to be on a recovery trend, and cash flow from operating activities was an inflow of ¥41 million. However, substantial doubt continued because of losses in the previous 3 consecutive fiscal years. - FY2019-Q1MitigatedAnnual report
「As a result of implementing the measures described above, we recorded ordinary profit in the first quarter of the current consolidated fiscal year. Following discussions concerning the financial covenants on our bank borrowings, the banks agreed to waive the application of loss of the benefit of time and to continue providing support. We will continue working to strengthen our business and financial foundations and to resolve and improve the situation. However, although the measures to strengthen project progress and profit-and-loss management in the development promotion and support business have produced some results, improvement is still under way. As it is necessary to carefully assess the performance of our group, material uncertainty regarding the going-concern assumption remains at this time.」
The situation improved through the recording of ordinary profit, the waiver of the application of loss of the benefit of time under the financial covenants, and continued support from the banks. However, the company recorded an operating loss of ¥5 million, and material uncertainty remains. - FY2018WorsenedAnnual report
「In addition, during the current consolidated fiscal year, we breached financial covenants attached to some of the loan agreements entered into between our company and financial institutions. These circumstances and other factors constitute events that raise substantial doubt about the going-concern assumption.」
Amid continuing operating losses and negative operating cash flow, the company explicitly disclosed a breach of financial covenants and material uncertainty regarding the going-concern assumption. - FY2018-Q3RestatedAnnual report
「Our group has continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent in the previous consolidated fiscal year. In the nine-month period of the current consolidated fiscal year, we also recorded an operating loss of ¥831.311 million, an ordinary loss of ¥893.584 million and a quarterly net loss attributable to owners of the parent of ¥749.859 million. Operating cash flow has likewise remained negative. Accordingly, events or conditions exist that raise substantial doubt about the going-concern assumption.」
In the nine-month period, the company continued to record losses and negative operating cash flow, and substantial doubt regarding the going-concern assumption persisted. - FY2018-Q2WorsenedAnnual report
「Our group has continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent in the previous consolidated fiscal year. In the six-month period of the current consolidated fiscal year, we also recorded an operating loss of ¥675.606 million, an ordinary loss of ¥721.265 million and a quarterly net loss attributable to owners of the parent of ¥791.067 million. Operating cash flow has likewise remained negative. Accordingly, events or conditions exist that raise substantial doubt about the going-concern assumption.」
In the six-month period, operating losses, ordinary losses, quarterly net losses attributable to owners of the parent and negative operating cash flow continued, and substantial doubt regarding the going-concern assumption persisted. - FY2018-Q1WorsenedAnnual report
「Our group has continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent in the previous consolidated fiscal year. In the first quarter of the current consolidated fiscal year, we also recorded an operating loss of ¥364.477 million, an ordinary loss of ¥401.144 million and a quarterly net loss attributable to owners of the parent of ¥401.661 million. Operating cash flow has likewise remained negative. Accordingly, events or conditions exist that raise substantial doubt about the going-concern assumption.」
In the first quarter, the company continued to record an operating loss, an ordinary loss, a quarterly net loss attributable to owners of the parent and negative operating cash flow, with substantial doubt continuing. - FY2017First statedAnnual report
「In the previous consolidated fiscal year, our group recorded an operating loss of ¥411.940 million and an ordinary loss of ¥428.946 million. In the current consolidated fiscal year, we recorded an operating loss of ¥1,251.537 million and an ordinary loss of ¥1,202.755 million. Operating cash flow represented an outflow of ¥118.187 million in the previous consolidated fiscal year and an outflow of ¥792.089 million in the current consolidated fiscal year, resulting in negative operating cash flow for 2 consecutive fiscal years.」
Against the backdrop of operating losses and negative operating cash flow for 2 consecutive fiscal years, the company explicitly stated for the first time that events or conditions existed raising substantial doubt about the going-concern assumption.