Doubts regarding the going concern assumption arising from losses and cash outflows
First written in FY2022. 6 of 19 entries say "Restated". Latest entry: 2026-09-15.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
23 other companies' latest entry also says "Worsened".
- FY2026AdvancedAnnual report
「Operating profit for the fourth quarter of the current consolidated fiscal year was ¥17,714 thousand, achieving quarterly operating profitability for the first time in five years.」
Although it stated that significant uncertainty regarding the going-concern assumption remained, it disclosed the improvement of achieving quarterly operating profitability for the first time in 5 years through the monetisation of the software business and the expansion of the solutions and hardware businesses. - FY2026-H1Quantifying earnings improvement measuresAnnual report
「To resolve the situation, we will pursue selective concentration through improvements in management resources and structure and in the cost structure, and advance the following initiatives to improve earnings.」
Although significant uncertainty regarding the going-concern assumption continues, the company has specified measures by dividing them into 3 areas: the Discoveriez business, the SRM Design Lab business, and new businesses and M&A, including sales growth rate targets, replacement, upselling and cost management. - FY2025Defining the three pillars of the measuresAnnual report
「To resolve the situation, we are developing the business going forward around three axes: software, solutions and hardware, and pursuing initiatives built on 3 pillars: ① monetisation of the “Discoveriez” business, ② expansion in the “SRM Design Lab,” generative AI and technology fields, and ③ entry into new businesses and growth through M&A.」
Although negative net worth was stated to have been resolved through a third-party allotment and other measures, operating losses and negative cash flow from operating activities continued, and the company remained in a position where significant uncertainty regarding the going-concern assumption was recognised. It specified 3 pillars for resolving the situation: monetising Discoveriez, expanding SRM Design Lab and generative AI, and entering new businesses and pursuing growth through M&A. - FY2025-H1Resolution of negative net worth and continued significant uncertaintyAnnual report
「As these payments and allocations were completed on 13 August 2024, the negative net worth at the end of the first-quarter accounting period has been resolved. “As these measures are still being implemented at present, significant uncertainty regarding the going-concern assumption is recognised.”」
Negative net worth at the end of the first quarter was resolved through a third-party allotment and other measures. Meanwhile, operating losses and negative cash flow from operating activities continued, and significant uncertainty also continued because the measures were still being implemented. - FY2024MaterialisedAnnual report
「In addition to incurring operating losses continuously from the 21st fiscal period (the fiscal year ended March 2022) through the current fiscal year, the company has also recorded negative cash flow from operating activities, and events or circumstances exist that raise significant doubt about the going-concern assumption. Although the company will continue to promote the measures described above and work to improve profitability and its financial position, significant uncertainty regarding the going-concern assumption is recognised at present because these measures are still being implemented.」
The explanation changed from the previous statement that “no significant uncertainty was identified,” and explicitly stated that significant uncertainty regarding the going-concern assumption was recognised because the measures were still being implemented. - FY2024-Q3RestatedAnnual report
「The company stated that operating loss for the cumulative third-quarter period was ¥107.513 million, ordinary loss was ¥108.765 million, and quarterly net loss was ¥108.633 million, due partly to delays in revitalising unprofitable businesses and projects, implementing measures to develop the market, and implementing cost management measures. Events or circumstances raising significant doubt about the going-concern assumption therefore continued to exist from the previous fiscal year.」
Events or circumstances raising significant doubt about the going-concern assumption continue to exist. At the same time, it stated that operating loss and other losses narrowed from the previous corresponding period and that cost management measures had progressed. - FY2024-Q2RestatedAnnual report
「The company stated that operating loss for the cumulative second-quarter period was ¥93.381 million, ordinary loss was ¥93.725 million, and quarterly net loss was ¥94.201 million, due partly to delays in revitalising unprofitable businesses and projects and implementing cost management measures. Events or circumstances raising significant doubt about the going-concern assumption therefore continued to exist from the previous fiscal year. The company is pursuing a policy of shifting the revenue mix principally from a flow model to a stock model to pursue a stable business model over the medium to long term, and recognises that the impact of placing emphasis on stock-based revenue, such as licence fees, was also a contributing factor.」
Losses and events or circumstances raising significant doubt about the going-concern assumption continue. The company continues to explain that delays in revitalising unprofitable businesses and projects and implementing cost management measures, as well as the shift toward prioritising stock-based revenue, are factors. - FY2024-Q1Specification of the factorsAnnual report
「The company stated that operating loss for the cumulative first-quarter period was ¥39.189 million, ordinary loss was ¥39.461 million, and quarterly net loss was ¥39.699 million, due partly to the longer decision-making lead time for clients to approve implementation and delays in revitalising unprofitable businesses and projects and implementing cost management measures. Events or circumstances raising significant doubt about the going-concern assumption therefore continued to exist from the previous fiscal year.」
Events and circumstances raising significant doubt about the going-concern assumption continue to exist. In addition to the longer implementation decision-making process, delays in revitalising unprofitable businesses and projects and implementing cost management measures were identified specifically as factors contributing to the losses. - FY2023RestatedAnnual report
「As a result, operating loss for the fiscal year was ¥252.567 million, ordinary loss was ¥242.434 million, and net loss was ¥296.351 million. Although events or circumstances existed that raised significant doubt about the going-concern assumption,」
It stated that events and circumstances raising significant doubt due to the full-year loss continued to exist, while maintaining the judgment that no significant uncertainty was identified, taking into account the special overdraft agreement and cash and deposits of ¥415.341 million. - FY2023-Q3RestatedAnnual report
「As a result, operating loss for the cumulative third-quarter period was ¥229.530 million, ordinary loss was ¥231.126 million, and quarterly net loss was ¥231.839 million. Although events or circumstances existed that raised significant doubt about the going-concern assumption, the company recognised that the main factor was the impact of placing emphasis on stock-based revenue, such as licence fees, in accordance with its policy of shifting the revenue mix principally from a flow model to a stock model to pursue a stable business model over the medium to long term.」
It continues to state that events or circumstances raising significant doubt about the going-concern assumption exist, explaining that the main factor is the shift toward prioritising stock-based revenue. - FY2023-Q2RestatedAnnual report
「As a result, operating loss for the cumulative second-quarter period was ¥148.620 million, ordinary loss was ¥149.636 million, and quarterly net loss was ¥150.111 million. Although events or circumstances existed that raised significant doubt about the going-concern assumption, the company recognised that the main factor was the impact of placing emphasis on stock-based revenue, such as licence fees, in accordance with its policy of shifting the revenue mix principally from a flow model to a stock model to pursue a stable business model over the medium to long term.」
It continues to state that events or circumstances raising significant doubt about the going-concern assumption exist, explaining that the main factor is the shift toward prioritising stock-based revenue. - FY2023-Q1RestatedAnnual report
「We believe that the events and circumstances in question will be resolved and profitability secured as the business progresses in accordance with the medium-term management plan formulated.」
It stated that events or circumstances raising significant doubt about the going-concern assumption continued to exist during the quarter, while maintaining the judgment that no significant uncertainty was identified at present. - FY2022MaterialisedAnnual report
「Operating loss for the consolidated fiscal year was ¥383.532 million, compared with operating income of ¥202.877 million in the previous corresponding period; ordinary loss was ¥388.561 million, compared with ordinary income of ¥185.254 million; and net loss attributable to owners of the parent was ¥421.744 million, compared with net income attributable to owners of the parent of ¥185.254 million. Accordingly, events or circumstances exist that raise significant doubt about the going-concern assumption, but」
It stated that events or circumstances existed that raised significant doubt about the going-concern assumption due to the substantial full-year loss. At the same time, it stated that no significant uncertainty regarding the going-concern assumption was identified at present, taking into account the special overdraft agreement with financial institutions and cash and deposits of ¥527.882 million.