Waiver of receivables from a consolidated subsidiary
System Support Holdings Inc. (creditor) and 株式会社ＳＴＳデジタル (debtor and consolidated subsidiary)
株式会社ＳＴＳデジタル's digital marketing business
ＳＴＳデジタル operates a digital marketing business but has negative net worth due to sluggish business earnings.
The amount of receivables to be waived is ¥156 million. The Company expects to record an ¥81 million bad debt loss as an extraordinary loss in its non-consolidated financial statements for the fiscal year ending June 2027. The Company has already recorded a ¥74 million allowance for doubtful accounts through the fiscal year ended June 2026.
Fiscal year ending June 2027 (non-consolidated financial statements)
The bad debt loss and the gain on debt forgiveness to be recorded by ＳＴＳデジタル will be offset and eliminated in the consolidated financial statements. Accordingly, there will be no impact on consolidated results.
The Company plans to proceed with a business restructuring under which the digital marketing business of ＳＴＳデジタル will be transferred to 株式会社イーネットソリューションズ, followed by an absorption-type merger of ＳＴＳデジタル with the Company. The Company states that it will promptly disclose any matters requiring disclosure if they arise.
We will promptly disclose any matters requiring disclosure if they arise.
| Item | Details |
|---|---|
| Event name | Waiver of receivables from a consolidated subsidiary |
| Date of occurrence | 31 October 2026 (date of implementation of the receivables waiver) |
| Date recognized / date notice received | 23 October 2026 (date on which the Company resolved at a Board of Directors meeting to waive the receivables) |
| Subject Entity | System Support Holdings Inc. (creditor) and 株式会社ＳＴＳデジタル (debtor and consolidated subsidiary) |
| Target Locations / Products | 株式会社ＳＴＳデジタル's digital marketing business |
| Cause | ＳＴＳデジタル operates a digital marketing business but has negative net worth due to sluggish business earnings. |
| Amount of Impact on Business Performance | The amount of receivables to be waived is ¥156 million. The Company expects to record an ¥81 million bad debt loss as an extraordinary loss in its non-consolidated financial statements for the fiscal year ending June 2027. The Company has already recorded a ¥74 million allowance for doubtful accounts through the fiscal year ended June 2026. |
| Accounting period in which recognized | Fiscal year ending June 2027 (non-consolidated financial statements) |
| Impact on Earnings Forecast | The bad debt loss and the gain on debt forgiveness to be recorded by ＳＴＳデジタル will be offset and eliminated in the consolidated financial statements. Accordingly, there will be no impact on consolidated results. |
| Outlook | The Company plans to proceed with a business restructuring under which the digital marketing business of ＳＴＳデジタル will be transferred to 株式会社イーネットソリューションズ, followed by an absorption-type merger of ＳＴＳデジタル with the Company. The Company states that it will promptly disclose any matters requiring disclosure if they arise. |
| Planned follow-up disclosure | We will promptly disclose any matters requiring disclosure if they arise. |
Items this document does not state (14)
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.ＳＴＳデジタル has negative net worth due to sluggish business earnings. The waiver is intended to improve its financial position and eliminate its negative net worth. In addition, the Company plans to transfer the digital marketing business and proceed with an absorption-type merger in order to make effective use of management resources within the Group and improve operating efficiency.