Material Uncertainty Regarding the Going Concern Assumption
First written in FY2025. 4 of 6 entries say "Mitigated", first in 2026-05-15. Latest entry: 2026-08-14.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- 2026-08-14MitigatedEarnings
「On the other hand, our relationships with financial institutions are extremely strong. Although the first quarter was affected by lower advertising rates, it was also a quarter in which we confirmed steady progress in strengthening our business base. Given the continuing stability of results and cash flow and the management of repayments and renewals of borrowings under continuous monitoring based on agreements with our transaction financial institutions, the funds necessary for business activities have been secured, and we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the company recognized circumstances giving rise to significant doubts because short-term interest-bearing debt remained high, it continued to determine that no material uncertainty exists based on the management of repayments and renewals and the availability of funds. - FY2026MitigatedAnnual report
「In addition to the improvement in our ability to generate funds resulting from recent improvements in business performance and cash flow, repayments and renewals of borrowings are being managed under continuous monitoring based on agreements with our financial institutions. We have therefore determined that the funds required for our business activities for the foreseeable future have been secured and that no material uncertainty related to the going-concern assumption exists.」
Although a gap remains between short-term interest-bearing debt of ¥7,489.5 million and cash of ¥1,303.068 million, our assessment changed to conclude that no material uncertainty exists as a result of the return to profitability, improved cash flow, and renewal of borrowings. - FY2026-H1RestatedAnnual report
「By continuing to maintain consolidated operating profitability and increasing the certainty of extending and renewing maturity dates, the situation in which borrowings due for repayment within 1 year are substantial relative to cash on hand will be resolved. However, depending on future business conditions, there is a possibility of a material impact on future cash management, and material uncertainty related to the going-concern assumption therefore remains at this time.」
Although operating profitability and cash flow have improved, material uncertainty regarding cash management, which depends on the repayment and renewal of borrowings, continues to remain. - FY2025First statedAnnual report
「However, depending on future business conditions, we may not be able to fully realize the effects of the measures described above, which could have a material impact on our future cash management. Accordingly, material uncertainty related to the going-concern assumption remains at this time.」
Against a backdrop of an operating loss of ¥1,911.248 million, an ordinary loss of ¥1,993.227 million, consolidated net assets of ¥319.988 million, and cash on hand of ¥542.610 million compared with borrowings of ¥3,125 million due for repayment within 1 year, material uncertainty related to the going-concern assumption was disclosed for the first time.