Establishment of a Third-Party Committee by Resolution of the Audit and Supervisory Committee
Accrete Inc.
Transactions related to container-type data centers and other matters in the Solutions Business segment
Audit firm Ks Lab. determined that the findings of the previous Special Investigation Committee's investigation could not be relied upon, based on factors including the scope and methodology of the investigation and the verifiability of its findings, and that additional investigation and verification were necessary. The audit firm states that it has not determined that the previous findings were erroneous, that misconduct existed, or that the parties involved acted intentionally.
Investigation costs for the third-party committee are expected to be incurred, but it is currently difficult to reasonably estimate the amount. Depending on the investigation findings, the current interim consolidated financial statements and prior-year consolidated financial statements may need to be restated. The accounting classification and amount have not been determined.
The accounting period in which the investigation costs will be recognized is Not disclosed. Regarding the possibility of restatement, the disclosure states: “the current interim consolidated financial statements and prior-year consolidated financial statements.”
Company response
A third-party committee composed of external experts who have no conflicts of interest with the company. The policy to establish the committee was decided on 12 November 2026. The members' names and profiles are still being determined.
Recommendations for preventing recurrence
Related procedures
Notification from the audit firm under Article 193-3, Paragraph 1 of the Financial Instruments and Exchange Act, and an investigation by the third-party committee
The third-party committee's investigation is expected to require a considerable amount of time. Upon receipt of the investigation report, the company will promptly disclose the investigation findings and its policy for responding going forward. The members' names and profiles will be promptly disclosed once determined.
| Item | Details |
|---|---|
| Event name | Establishment of a Third-Party Committee by Resolution of the Audit and Supervisory Committee |
| Date of occurrence | 12 November 2026 (the policy to establish a third-party committee was decided at an extraordinary meeting of the Audit and Supervisory Committee) |
| Date recognized / date notice received | 6 November 2026 (notice under Article 193-3, Paragraph 1 of the Financial Instruments and Exchange Act was received from audit firm Ks Lab.) |
| Subject Entity | Accrete Inc. |
| Target Locations / Products | Transactions related to container-type data centers and other matters in the Solutions Business segment |
| Cause | Audit firm Ks Lab. determined that the findings of the previous Special Investigation Committee's investigation could not be relied upon, based on factors including the scope and methodology of the investigation and the verifiability of its findings, and that additional investigation and verification were necessary. The audit firm states that it has not determined that the previous findings were erroneous, that misconduct existed, or that the parties involved acted intentionally. |
| Amount of Impact on Business Performance | Investigation costs for the third-party committee are expected to be incurred, but it is currently difficult to reasonably estimate the amount. Depending on the investigation findings, the current interim consolidated financial statements and prior-year consolidated financial statements may need to be restated. The accounting classification and amount have not been determined. |
| Accounting period in which recognized | The accounting period in which the investigation costs will be recognized is Not disclosed. Regarding the possibility of restatement, the disclosure states: “the current interim consolidated financial statements and prior-year consolidated financial statements.” |
| Type of litigation or proceeding | Notification from the audit firm under Article 193-3, Paragraph 1 of the Financial Instruments and Exchange Act, and an investigation by the third-party committee |
| Investigation structure | A third-party committee composed of external experts who have no conflicts of interest with the company. The policy to establish the committee was decided on 12 November 2026. The members' names and profiles are still being determined. |
| Measures to prevent recurrence | Recommendations for preventing recurrence |
| Outlook | The third-party committee's investigation is expected to require a considerable amount of time. Upon receipt of the investigation report, the company will promptly disclose the investigation findings and its policy for responding going forward. The members' names and profiles will be promptly disclosed once determined. |
| Planned follow-up disclosure | Upon receipt of the investigation report, the company will promptly disclose the investigation findings and its policy for responding going forward. |
Items this document does not state (12)
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 company received notice from audit firm Ks Lab. that there were issues with the scope and methodology of the existing Special Investigation Committee's investigation and the verifiability of its findings, that the findings could not be relied upon, and that additional investigation and verification were necessary. The Audit and Supervisory Committee determined that an investigation by a more independent third party was necessary.