Notice Concerning the Recognition of Deferred Tax Assets and an Extraordinary Loss (Impairment Loss), and the Differences Between Actual Results for the Current and Previous Fiscal Years on an Individual and Consolidated Basis
The filing company, ExaWizards Inc., and consolidated subsidiaries in the AI Solutions Services business
Software assets held by a consolidated subsidiary in the AI Solutions Services business
The recoverability of the deferred tax assets improved due to an increase in deductible temporary differences and the outlook for securing future taxable income. The impairment loss was recognized because the profitability of the asset group declined following a review of the business plan in response to changes in technology and market conditions.
Total income taxes of negative ¥411 million (deferred tax assets) and an impairment loss of ¥22 million (extraordinary loss)
Consolidated accounting period for the fourth quarter of the fiscal year ending March 2026 (1 January 2026 to 31 March 2026)
| Item | Details |
|---|---|
| Event name | Notice Concerning the Recognition of Deferred Tax Assets and an Extraordinary Loss (Impairment Loss), and the Differences Between Actual Results for the Current and Previous Fiscal Years on an Individual and Consolidated Basis |
| Date of occurrence | Consolidated accounting period for the fourth quarter of the fiscal year ending March 2026 (1 January 2026 to 31 March 2026) |
| Subject Entity | The filing company, ExaWizards Inc., and consolidated subsidiaries in the AI Solutions Services business |
| Target Locations / Products | Software assets held by a consolidated subsidiary in the AI Solutions Services business |
| Cause | The recoverability of the deferred tax assets improved due to an increase in deductible temporary differences and the outlook for securing future taxable income. The impairment loss was recognized because the profitability of the asset group declined following a review of the business plan in response to changes in technology and market conditions. |
| Amount of Impact on Business Performance | Total income taxes of negative ¥411 million (deferred tax assets) and an impairment loss of ¥22 million (extraordinary loss) |
| Accounting period in which recognized | Consolidated accounting period for the fourth quarter of the fiscal year ending March 2026 (1 January 2026 to 31 March 2026) |
Items this document does not state (18)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The deferred tax assets were recognized because deductible temporary differences increased and, based on the outlook for future performance, the Company determined that it would be able to secure future taxable income and that the recoverability of the assets had improved. The impairment loss was recognized because the profitability of the relevant asset group declined following a review of the business plan in response to changes in technology and market conditions. The differences in results were attributed to strong performance in the AI Products business, a recovery in the AI Solutions Services business, the effects of structural reforms, an increase in fees for outsourced services, and a decline in depreciation and amortization expenses following the impairment charge recognized in the previous fiscal year.