Material Doubt Regarding Going Concern Arising from Breach of Financial Covenants
First written in FY2025-Q1. 2 of 4 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2024: 2 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Cash and cash equivalents at the end of the current consolidated fiscal year were ¥5,003.357 million, and the Company has secured sufficient short-term liquidity.」
Cash and cash equivalents increased to ¥5,003.357 million from the end of the previous fiscal year. There is no individual disclosure of significant doubt regarding the going concern assumption associated with the breach of financial covenants. - FY2025MitigatedAnnual report
「Cash and cash equivalents at the end of the current consolidated fiscal year were ¥4,606.652 million, and the Company has secured sufficient short-term liquidity.」
The individual disclosure regarding the significant doubt related to the going concern assumption that had appeared previously is absent from this annual securities report, which discloses cash and cash equivalents of ¥4,606.652 million and sufficient short-term liquidity. - FY2025-H1Update to the funding outlook periodAnnual report
「On the other hand, as a measure to address these events or conditions, the Company has obtained written consent from its lending banks not to demand the loss of the benefit of time for repayment. In addition, after examining cash flows for the coming year based on its business plan and taking into account its current cash on hand, the Company determined that it is expected to have sufficient funds through the end of August 2025. Based on the foregoing, the Company determined that no material uncertainty related to the going concern assumption exists.」
While maintaining its recognition that significant doubt regarding the going concern assumption exists, the Company has updated the date through which it expects to have sufficient funds to the end of August 2025. - FY2025-Q1First statedAnnual report
「Although the Company recorded quarterly net income attributable to owners of the parent for the cumulative first quarter, in light of the fact that it breached its financial covenants at the end of the previous consolidated fiscal year as a result of recording a substantial impairment loss during that fiscal year, it recognizes that events or conditions that could give rise to significant doubt regarding the going concern assumption still existed at the end of the first quarter of the current consolidated fiscal year. On the other hand, as a measure to address these events or conditions, the Company has obtained written consent from its lending banks not to demand the loss of the benefit of time for repayment. In addition, after examining cash flows for the coming year based on its business plan and taking into account its current cash on hand, the Company determined that it is expected to have sufficient funds through the end of May 2025. Based on the foregoing, the Company determined that no material uncertainty related to the going concern assumption exists.」
The disclosure states that, following the breach of financial covenants at the end of the previous consolidated fiscal year, the Company recognizes significant doubt regarding the going concern assumption. However, based on the banks' consent and its funding outlook through the end of May 2025, it determined that no material uncertainty exists.