Negative Net Assets and Material Uncertainty Regarding Going Concern
First written in FY2023. 4 of 6 entries say "Mitigated", first in FY2024-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「(Matters related to the going concern assumption) Not applicable.」
The material uncertainty related to the going concern assumption disclosed through the previous fiscal year was no longer applicable in the notes to the consolidated financial statements for the current fiscal year. Net assets also stood at ¥4,781.875 million. - 2026-05-15MitigatedRevision of earnings forecastsSuggests it is closing out
「Not applicable.」
The absence of a note concerning the going concern assumption suggests that material uncertainties concerning going concern have been resolved. - FY2025MitigatedAnnual report
「As a result, net assets stood at ¥4,551.681 million at the end of the fiscal year ending March 2025, eliminating the negative net assets. At present, the company expects to secure positive adjusted EBITDA (*) for the fiscal year ending March 2026.」
The company concluded that the negative net assets had been eliminated through the private placement, the conversion of the EV charging business into a joint venture and financing activities, and that the material doubt regarding the going concern assumption had been resolved. However, adjusted EBITDA for the fiscal year ending March 2026 is stated as a forecast. - FY2025-H1WorsenedAnnual report
「Although the company is working to secure and maintain the funds required through these measures, a material uncertainty related to the going concern assumption exists at present, in light of the continued uncertainty over the possibility of strengthening profitability amid intensifying competition in the EV charging business and obtaining ongoing support from its lending financial institutions, the company’s response, with the understanding of those institutions, to demands from some lenders for early repayment, and the possibility that the company’s relationships with various stakeholders and the group’s brand strength may be damaged as a result of the publication of the investigation report.」
Although the negative net assets were eliminated through a private placement, a material uncertainty related to the going concern assumption continues against a backdrop of an operating loss of ¥1,421.093 million, breaches of financial covenants, early repayment, and uncertainty over improvements in profitability and support from financial institutions. - FY2024-Q1MitigatedAnnual report
「The negative net assets had been eliminated as of the end of the first quarter of the consolidated fiscal year through a private placement in February 2024. However, during the cumulative first quarter of the consolidated fiscal year, the company continued to record an operating loss of ¥748.588 million, an ordinary loss of ¥134.026 million and a quarterly net loss attributable to owners of the parent of ¥371.022 million.」
The private placement eliminated the negative net assets of ¥1,479.226 million at the end of the previous fiscal year by the end of the first quarter. However, operating losses and other losses continued, and a material uncertainty related to the going concern assumption remained. - FY2023MaterialisedAnnual report
「The group recorded operating losses for 2 consecutive fiscal years, ordinary losses for 3 consecutive fiscal years and net losses attributable to owners of the parent for 5 consecutive fiscal years through the fiscal year under review. In the fiscal year under review, it recorded a material operating loss of ¥2,125.017 million, an ordinary loss of ¥2,404.967 million and a net loss attributable to owners of the parent of ¥4,985.167 million. As a result, as of 31 December 2023, the consolidated balance sheet showed negative net assets of ¥1,479.226 million.」
Against a backdrop of operating losses for 2 consecutive fiscal years, ordinary losses for 3 consecutive fiscal years, net losses for 5 consecutive fiscal years and negative net assets of ¥1.479 billion, the company disclosed for the first time the existence of a material uncertainty related to the going concern assumption.