Longer collection periods for receivables and operating cash flow burden from subscription device rentals and large commissioned projects
First written in FY2025-H1. 1 of 4 entries say "Materialised", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2022: 9 of 32 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Funds generated from operating activities amounted to ¥162.794 million, compared with an outflow of ¥229.160 million in the same period of the previous fiscal year.」
Operating cash flow was negative in the previous fiscal year due to factors including prolonged collection of receivables associated with large commissioned projects and terminal subscriptions, but turned to an inflow of ¥162.794 million in the current fiscal year. - FY2026-H1Operating cash flow remains negative, with changes in the underlying factorsAnnual report
「Cash used in operating activities was ¥299.174 million (¥296.130 million in the same period of the previous year).」
The negative operating cash flow widened from the same period of the previous year. The main factors disclosed were an interim net loss of ¥161.021 million and a ¥170.004 million cash outflow resulting from an increase in inventories, among others. - FY2025MaterialisedAnnual report
「The Company analyzes that operating cash flow was negative for the fiscal year because trade receivables have been increasing as contracted projects have grown in scale, and although the payment terminal portion of the subscription service is recognized as revenue at a single point in time as lease investment assets, collection of the related receivables extends over a long period.」
Operating cash flow was negative ¥229.160 million, mainly because of increased trade receivables from large contracted projects and the lengthening collection period for receivables related to payment terminal subscriptions. - FY2025-H1First statedAnnual report
「Cash used in operating activities was ¥296.130 million (negative ¥0.813 million in the same period of the previous year). This was mainly attributable to a ¥87.180 million interim net loss before income taxes, ¥15.497 million in depreciation and amortization, a negative ¥0.060 million for interest and dividend income, a negative ¥0.540 million for grant and insurance proceeds, ¥4.910 million in interest paid, ¥2.016 million in fees paid, a negative ¥0.004 million in foreign exchange gains and losses (a negative amount represents a gain), a negative ¥145.548 million from changes in trade receivables, ¥111.835 million from changes in inventories, a negative ¥126.837 million from changes in lease investment assets, a negative ¥4.386 million from changes in trade payables, a negative ¥30.046 million from changes in accounts payable, ¥6.914 million from changes in deposits received, ¥6.512 million from changes in contract liabilities, a negative ¥47.588 million from changes in unpaid consumption taxes and other taxes, and ¥3.829 million in other items. The Company analyzes that operating cash flow was negative for the interim accounting period because trade receivables have increased significantly as contracted projects have grown in scale, and although the payment terminal portion of the subscription service is recognized as revenue at a single point in time as lease investment assets, collection of the related receivables extends over a long period.」
The Company analyzes that operating cash flow deteriorated from negative ¥0.813 million in the same period of the previous year to negative ¥296.130 million, mainly because of increased trade receivables from large contracted projects and the lengthening collection period for receivables related to payment terminal subscriptions.