Risk of losses and deterioration in operating cash flow associated with strengthening basic research
First written in FY2016. 17 of 33 entries say "Mitigated", first in FY2018-Q2. Latest entry: FY2026.
Immuno-Biological Laboratories moved to the "Worse" side of this theme in 2016, 5 years before the typical company in this theme (2021).
The whole theme swung hardest in 2019: 4 of 13 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Funds generated from operating activities amounted to ¥301.093 million, compared with ¥183.495 million in the previous year.」
Cash provided by operating activities increased, and despite recording R&D expenses of ¥120.049 million, the cash burden associated with basic research and development investment decreased from the previous year. - FY2026-H1MitigatedAnnual report
「Cash provided by operating activities was ¥173.524 million, compared with an inflow of ¥76.778 million in the same period of the previous year.」
R&D expenses decreased from ¥61.169 million in the same period of the previous year to ¥55.647 million, while cash flow from operating activities increased from an inflow of ¥76.778 million to an inflow of ¥173.524 million. The cash burden associated with front-loaded R&D spending has decreased further. - FY2025MitigatedAnnual report
「Cash provided by operating activities was ¥183.495 million, compared with an inflow of ¥133.775 million in the previous year.」
R&D expenses decreased to ¥119.028 million, while operating cash flow increased to an inflow of ¥183.495 million, further reducing the loss and cash burden associated with front-loaded basic research. - FY2025-H1MitigatedAnnual report
「Cash provided by operating activities was ¥76.778 million, compared with an inflow of ¥7.081 million in the same period of the previous year.」
R&D expenses decreased to ¥61.169 million from ¥63.412 million in the same period of the previous year, while cash flow from operating activities increased from an inflow of ¥7.081 million to an inflow of ¥76.778 million, reducing the cash burden associated with front-loaded R&D spending. - FY2024MitigatedAnnual report
「R&D expenses for the Group as a whole during the fiscal year under review were ¥129.983 million, and cash flow from operating activities was an inflow of ¥133.775 million.」
R&D expenses were ¥129.983 million, while cash flow from operating activities increased from an inflow of ¥26.458 million in the previous year to an inflow of ¥133.775 million, reducing the cash burden associated with front-loaded R&D spending. - FY2024-Q2MitigatedAnnual report
「Cash provided by operating activities was ¥7.081 million, compared with an outflow of ¥50.626 million in the same period of the previous year.」
Cash flow from operating activities changed from an outflow of ¥50.626 million in the same period of the previous year to an inflow of ¥7.081 million. R&D expenses also decreased to ¥63.064 million from ¥87.966 million in the same period of the previous year, reducing the cash burden associated with front-loaded R&D spending. - FY2024-Q1MitigatedAnnual report
「Total R&D expenses for the first quarter of the fiscal year under review were ¥33.798 million.」
Although the front-loaded R&D expense burden continues, total R&D expenses in the first quarter of the fiscal year under review were ¥33.798 million, down from ¥43.019 million in the first quarter of the previous fiscal year. - FY2023MitigatedAnnual report
「Cash provided by operating activities was ¥26.458 million, compared with an outflow of ¥93.204 million in the previous year.」
Although the R&D expense burden continues, cash flow from operating activities changed from an outflow in the previous year to an inflow of ¥26.458 million through the selective concentration of research areas and cost control. - FY2023-Q2MitigatedAnnual report
「Cash used in operating activities was ¥50.626 million, compared with an outflow of ¥99.503 million in the same period of the previous year.」
The outflow in cash flow from operating activities narrowed from ¥99.503 million in the same period of the previous year to ¥50.626 million. The R&D expense burden continues at ¥87.966 million, but the extent of deterioration in operating cash flow has decreased. - FY2023-Q1MitigatedAnnual report
「This business is focusing exclusively on basic research into the development of useful proteins and improvements in the amount of those proteins produced in cocoons, while controlling costs. Total R&D expenses for the first quarter of the fiscal year under review were ¥43.019 million.」
The Company has indicated that it will continue basic research while controlling costs, and the operating loss in the genetically modified silkworm development business narrowed from the same period of the previous year. The front-loaded R&D expense burden itself continues. - FY2022-Q2MitigatedAnnual report
「On the earnings side, selling, general and administrative expenses decreased as the Company continued to control domestic and overseas travel expenses through measures to prevent the spread of COVID-19, as well as through the selective concentration of R&D activities.」
Selling, general and administrative expenses decreased through control of travel expenses and the selective concentration of R&D activities, and the outflow in cash flow from operating activities narrowed from ¥129.019 million in the same period of the previous year to ¥99.503 million. However, front-loaded R&D spending and the operating deficit continue. - FY2022-Q1Front-loaded R&D spending continues; Group-wide loss narrowsAnnual report
「In terms of profit, SG&A expenses declined as the Company continued to limit domestic and overseas travel expenses to prevent the spread of COVID-19 and applied a selective and focused approach to R&D. As a result, revenue was ¥125.150 million, up 7.3% year on year, and the operating loss was ¥73.893 million, compared with an operating loss of ¥101.611 million in the same period of the previous year.」
Although priority investment in R&D continues, selling, general and administrative expenses decreased through the selective concentration of R&D activities and reductions in travel expenses, narrowing the Group's operating loss. - FY2021MitigatedAnnual report
「Cash used in operating activities was ¥194.145 million, compared with an outflow of ¥608.746 million in the previous year.」
The outflow in cash flow from operating activities narrowed from ¥608.746 million to ¥194.145 million, reducing the cash burden associated with front-loaded R&D spending from the previous fiscal year. However, cash outflows continue. - FY2021-Q3MitigatedAnnual report
「During the first nine months of the fiscal year under review, the reduction in R&D expenses resulting from a change in the anti-HIV antibody production method in the genetically modified silkworm business was limited, but R&D expenses are expected to decrease from the fourth quarter onward.」
The effect of reducing R&D expenses through a change in the anti-HIV antibody production method was limited during the first nine months, but a decrease in R&D expenses is expected from the fourth quarter onward. Total R&D expenses were ¥212.628 million, and the operating loss narrowed from the same period of the previous year. - FY2021-Q2R&D expenses rise slightly; operating cash flow outflow narrowsAnnual report
「Total R&D expenses for the first six months of the fiscal year under review were ¥138.986 million. Cash used in operating activities was ¥129.019 million, compared with an outflow of ¥163.806 million in the same period of the previous year.」
R&D expenses increased to ¥138.986 million from ¥136.024 million in the same period of the previous year, while the outflow in cash flow from operating activities narrowed from ¥163.806 million to ¥129.019 million. The R&D expense burden continues. - FY2021-Q1R&D expenses continue to increase; operating loss narrows slightlyAnnual report
「On the earnings side, although various sales department expenses decreased as a result of measures to prevent the spread of COVID-19, selling, general and administrative expenses increased because R&D expenses rose as development progressed toward biopharmaceuticals based on anti-HIV antibodies in the genetically modified silkworm business. As a result, the operating loss was ¥101.611 million, compared with an operating loss of ¥104.480 million in the same period of the previous year.」
The increase in R&D expenses associated with the development of biopharmaceuticals based on anti-HIV antibodies and the operating deficit continue. However, the operating loss narrowed slightly year on year. - FY2020WorsenedAnnual report
「R&D expenses for the Group as a whole during the fiscal year under review were ¥318.353 million. By business, R&D expenses were ¥68.182 million in the diagnostics and reagents business, ¥240.964 million in the genetically modified silkworm business, and ¥9.206 million in the testing business.」
R&D expenses increased to ¥318.353 million, and cash flow from operating activities was an outflow of ¥608.746 million. The loss and cash burden associated with front-loaded R&D spending is increasing. - FY2020-Q3WorsenedAnnual report
「Total R&D expenses for the first nine months of the fiscal year under review were ¥214.391 million.」
R&D expenses of ¥214.391 million were recorded, and the expense burden associated with front-loaded R&D spending continues. The Group's operating loss also widened from ¥65.718 million in the same period of the previous year to ¥298.801 million. - FY2020-Q2WorsenedAnnual report
「Total R&D expenses for the first six months of the fiscal year under review were ¥136.024 million. Cash used in operating activities was ¥163.806 million, compared with an outflow of ¥92.500 million in the same period of the previous year.」
R&D expenses were ¥136.024 million, and the outflow in cash flow from operating activities widened from ¥92.500 million in the same period of the previous year to ¥163.806 million. The loss and cash burden associated with front-loaded R&D spending has worsened. - FY2020-Q1WorsenedAnnual report
「On the earnings side, R&D expenses increased as research progressed on biopharmaceuticals, including anti-HIV antibodies, in the genetically modified silkworm business. As a result, the operating loss was ¥104.480 million, compared with an operating loss of ¥35.971 million in the same period of the previous year.」
R&D expenses increased as research on anti-HIV antibodies and other projects progressed, and the Group's operating loss widened from ¥35.971 million in the same period of the previous year to ¥104.480 million. - FY2019WorsenedAnnual report
「R&D expenses for the Group as a whole were ¥236.668 million. By business, R&D expenses were ¥68.434 million in the diagnostics and reagents business, ¥164.212 million in the genetically modified silkworm business, and ¥4.021 million in the testing business.」
R&D expenses were ¥236.668 million, of which ¥164.212 million was attributable to the genetically modified silkworm business. Cash flow from operating activities also changed from an inflow of ¥73.847 million in the previous year to an outflow of ¥243.935 million, increasing the loss and cash burden associated with front-loaded R&D spending. - FY2019-Q3WorsenedAnnual report
「Total R&D expenses for the first nine months of the fiscal year under review were ¥158.887 million. As a result, revenue in this segment was ¥16.754 million, up 55.4% year on year, and the operating loss was ¥166.657 million, compared with an operating loss of ¥131.027 million in the same period of the previous year.」
R&D expenses of ¥158.887 million were recorded, and the operating loss in the genetically modified silkworm business widened from ¥131.027 million in the same period of the previous year to ¥166.657 million. The loss burden associated with front-loaded R&D spending continues to be reflected in results. - FY2019-Q2WorsenedAnnual report
「Total R&D expenses for the first six months of the fiscal year under review were ¥92.695 million. Cash used in operating activities was ¥92.500 million, compared with cash provided of ¥54.441 million in the same period of the previous year.」
While recording R&D expenses of ¥92.695 million, cash flow from operating activities changed from an inflow of ¥54.441 million in the same period of the previous year to an outflow of ¥92.500 million, worsening the loss and cash burden associated with front-loaded R&D spending. - FY2019-Q1WorsenedAnnual report
「At this stage, the Company is pursuing the development of biopharmaceuticals, including anti-HIV antibodies, and the development of manufacturing technologies to realize pharmaceutical manufacturing using genetically modified silkworms, with the business focused on R&D. As a result, revenue in this segment was ¥3.890 million, down 41.0% year on year, and the operating loss was ¥48.136 million, compared with an operating loss of ¥44.728 million in the same period of the previous year.」
While prioritizing R&D, the operating loss in the genetically modified silkworm business widened from the same period of the previous year, and the loss risk associated with front-loaded R&D spending continues to be reflected in results. - FY2018MitigatedAnnual report
「For the fiscal year under review, cash flow from operating activities was an inflow of ¥73.847 million, cash flow from investing activities was an outflow of ¥6.278 million, and cash flow from financing activities was an outflow of ¥138.300 million.」
Cash flow from operating activities changed from an outflow of ¥55.886 million in the previous year to an inflow of ¥73.847 million, reducing the risk of deterioration in operating cash flow associated with front-loaded R&D spending. However, the R&D expense burden and operating loss continue. - FY2018-Q2MitigatedAnnual report
「Cash and cash equivalents at the end of the first six months of the fiscal year under review decreased by ¥28.184 million from the end of the previous fiscal year to ¥2,493.918 million. Cash provided by operating activities was ¥54.441 million, compared with an outflow of ¥86.606 million in the same period of the previous year.」
Cash flow from operating activities changed from an outflow in the same period of the previous year to an inflow of ¥54.441 million, temporarily reducing the risk of worsening cash flow associated with R&D investment. However, the operating loss and R&D expense burden continue. - FY2018-Q1WorsenedAnnual report
「As a result, revenue for the first quarter of the fiscal year under review was ¥132.764 million, down 5.7% year on year. On the earnings side, although there was no depreciation expense burden, active investment in R&D and other activities in the genetically modified silkworm business resulted in an operating loss of ¥59.776 million, compared with an operating loss of ¥50.849 million in the same period of the previous year.」
Against a backdrop of R&D investment in the genetically modified silkworm business, the Group's operating loss widened from ¥50.849 million in the same period of the previous year to ¥59.776 million. - FY2017WorsenedAnnual report
「R&D expenses for the Group as a whole during the fiscal year were ¥1,239.563 million. By business, R&D expenses were ¥56.058 million in the diagnostics and reagents business, ¥1,175.612 million in the genetically modified silkworm business, and ¥7.892 million in the testing business.」
R&D expenses increased to ¥1,239.563 million, while cash flow from operating activities was an outflow of ¥55.886 million. - FY2017-Q3WorsenedAnnual report
「The operating loss was ¥183.599 million, compared with an operating loss of ¥101.568 million in the same period of the previous year, due to active investment in R&D and other activities for the genetically modified silkworm business.」
The cumulative operating loss widened year on year, mainly due to R&D investment and other spending on the genetically modified silkworm business. - FY2017-Q1MaterialisedAnnual report
「In terms of profitability, the operating loss was ¥50.849 million, compared with an operating loss of ¥42.507 million in the same period of the previous year, due to active investment in R&D and other activities for the genetically modified silkworm business.」
Investment in R&D for the genetically modified silkworm business resulted in an operating loss, which widened from the same period of the previous year. The risk of losses associated with strengthening basic research has materialised in the results. - FY2016First statedAnnual report
「Basic research in this business requires a substantial investment in R&D, involves a high risk regarding the outcome of the research, and does not generate revenue immediately. It could therefore worsen business performance and financial condition.」
The Company disclosed the time required to monetise basic research, the risk concerning the outcome of R&D, and the burden of R&D expenses as financial risks.