Insufficient Profitability of New Services and Development Cost Overruns
First written in FY2020. 1 of 3 entries say "Mitigated", first in FY2022. Latest entry: FY2026.
Lancers moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 22 of 52 companies on the "Worse" side.
38 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For software that is no longer expected to be used in the business, the Company reduced its carrying amount to its recoverable amount and recognized the resulting reduction of ¥24.577 million as an impairment loss under extraordinary losses.」
In connection with investments in developing new services and functions, the Company recognized an impairment loss on software no longer expected to be used, amounting to ¥24.577 million, resulting in an actual failure to recover development investments. - FY2022MitigatedAnnual report
「Accordingly, when developing a new service, the Company has established a framework under which development proceeds only after the service’s profitability has been thoroughly examined.」
The Company states that, in response to the risk of insufficient profitability and development cost overruns for new services, it has established a framework for assessing profitability before proceeding with development. - FY2020First statedAnnual report
「If the expected revenue can no longer be anticipated, or if system investment costs and related personnel expenses and other costs for the development exceed expectations, the Group’s business and performance may be affected.」
The Company identifies insufficient revenue from new functions and services and overruns in system investment and personnel costs as risks.