Going-concern risk due to losses for 3 consecutive periods

「As a result, in the current fiscal year, the Company reported operating and ordinary profitability for 2 consecutive fiscal years, and its financial foundation steadily improved, including the return of cash flows from operating activities to positive territory for the first time since the fiscal year ended March 2019. However, as it has yet to reach a position where it can generate profits stably, events or circumstances exist that raise substantial doubt about the going-concern assumption.」

「In the previous fiscal year, the Company returned to operating and ordinary profitability for the first time in 6 fiscal years, and operating performance continued to recover, with substantial profit improvement during the interim accounting period compared with the same period of the previous year. However, as it has yet to reach a position where it can generate profits stably and reliably, the Company recognizes that events or circumstances exist that raise substantial doubt about the going-concern assumption.」

「As a result, for the interim accounting period, sales were ¥2,679 million, down 5.8% year on year, operating loss was ¥91 million, compared with an operating loss of ¥75 million in the same period of the previous year, and ordinary loss was ¥91 million, compared with an ordinary loss of ¥74 million in the same period of the previous year.」

「In the current fiscal year, the Company reported operating and ordinary losses, but achieved operating and ordinary profitability in the second half as customer traffic and average spend per customer at existing stores improved steadily.」

「As of the end of the previous fiscal year, the Company had reported operating losses and negative cash flows from operating activities for 4 consecutive fiscal years. In addition, although operating performance continued to improve during the cumulative third quarter, the Company reported an operating loss, resulting in events or circumstances that raised substantial doubt about the going-concern assumption.」

「As of the end of the previous fiscal year, the Company had reported operating losses and negative cash flows from operating activities for 4 consecutive fiscal years. In addition, although operating performance was trending upward during the cumulative second quarter, the Company reported an operating loss, resulting in events or circumstances that raised substantial doubt about the going-concern assumption.」

「As of the end of the previous fiscal year, the Company had reported operating losses and negative cash flows from operating activities for 4 consecutive fiscal years. In addition, because it reported an operating loss during the cumulative first quarter, events or circumstances existed that raised substantial doubt about the going-concern assumption.」

「In the current fiscal year, the Company reported an operating loss of ¥619.887 million and negative cash flows from operating activities of ¥582.507 million, resulting in operating losses and negative cash flows from operating activities for 4 consecutive fiscal years.」

「In the previous fiscal year, customer traffic remained weak due to the impact of COVID-19, and sales declined significantly. As a result, the Company reported a gross loss for 2 consecutive fiscal years and operating and ordinary losses for 3 consecutive fiscal years, creating circumstances that raise substantial doubt about the going-concern assumption.」

「In the previous fiscal year, customer traffic remained weak due to the impact of COVID-19, and sales declined significantly. As a result, the Company reported a gross loss for 2 consecutive fiscal years and operating and ordinary losses for 3 consecutive fiscal years, creating circumstances that raise substantial doubt about the going-concern assumption.」

「In the previous fiscal year, customer traffic remained weak due to the impact of COVID-19, and sales declined significantly. As a result, the Company reported a gross loss for 2 consecutive fiscal years and operating and ordinary losses for 3 consecutive fiscal years, creating circumstances that raise substantial doubt about the going-concern assumption.」

「In addition, the Company continued to report operating and ordinary losses during the cumulative third quarter, and circumstances exist that raise substantial doubt about the going-concern assumption.」

「In addition, the Company continued to report operating and ordinary losses during the cumulative second quarter, and circumstances exist that raise substantial doubt about the going-concern assumption.」

「Regarding funding, the Company secured working capital for the foreseeable future in the previous fiscal year through increased cash on hand from the execution of policy-based financing and the transfer of its head office land and buildings. It will also continue to work closely with its lending financial institutions to maintain good relationships and obtain support for funds required in the future. Based on these measures, the Company judges that no material uncertainty exists regarding the going-concern assumption.」

「In the current fiscal year, the Company’s sales declined significantly because the rapid cooling of consumer sentiment caused by the spread of COVID-19 lengthened the interval between customer visits, while requests to refrain from going out and other factors reduced customer traffic. As a result, it reported operating and ordinary losses for 2 consecutive fiscal years and, as of the end of the current fiscal year, was in breach of the financial covenants under the syndicated term loan agreement and commitment line agreement entered into with its lending financial institutions in December 2016.」

「In addition, the Company continued to report a quarterly net loss during the third quarter. As a result, as of the end of the third quarter, it remained in breach of the financial covenants under the syndicated loan agreement entered into with its lending financial institutions in December 2016. If the financial covenants are applied, this could affect its cash flow management, and circumstances exist that raise substantial doubt about the going-concern assumption.」

「In addition, the Company continued to report a quarterly net loss during the cumulative second quarter. As a result, as of the end of the second quarter, it remained in breach of the financial covenants under the syndicated loan agreement entered into with its lending financial institutions in December 2016. If the financial covenants are applied, this could affect its cash flow management, and circumstances exist that raise substantial doubt about the going-concern assumption.」

「In addition, the Company continued to report a quarterly net loss during the quarter. As a result, as of the end of the quarter, it remained in breach of the financial covenants under the syndicated loan agreement entered into with its lending financial institutions in December 2016. If the financial covenants are applied, this could affect its cash flow management, and circumstances exist that raise substantial doubt about the going-concern assumption.」

「In light of these circumstances, the response measures currently being implemented to eliminate substantial doubt about the going-concern assumption are still in progress. In addition, uncertainty regarding the impact of the spread of COVID-19 on operating performance has increased, and the Company recognizes that material uncertainty regarding the going-concern assumption exists because future business progress and additional financing could have a material impact on its cash flow management.」

「The Company reported operating income and ordinary income in the previous fiscal year, but recognizes that events or circumstances that raise substantial doubt about the going-concern assumption still exist, as it has yet to establish a business foundation capable of generating stable profits.」

「The Company reported operating income and ordinary income in the previous fiscal year, but recognizes that events or circumstances that raise substantial doubt about the going-concern assumption still exist, as it has yet to establish a business foundation capable of generating stable profits.」

「The Company reported operating income and ordinary income in the previous fiscal year, but recognizes that events or circumstances that raise substantial doubt about the going-concern assumption still exist, as it has yet to establish a business foundation capable of generating stable profits.」

「The Company reported operating income and ordinary income in the current fiscal year, but recognizes that events or circumstances that raise substantial doubt about the going-concern assumption still exist, as it has yet to establish a business foundation capable of generating stable profits.」

「The Company recognizes that, because it reported an operating loss in the previous fiscal year and has reported an ordinary loss for 5 consecutive fiscal years, events or circumstances exist that raise substantial doubt about the going-concern assumption. However, as stated in “2. Analysis of Financial Position, Operating Results and Cash Flows by Management (6) Response Measures to Improve Events or Circumstances That Raise Substantial Doubt About the Going-Concern Assumption,” the Company has no concerns regarding its cash position during the cumulative third quarter of the current fiscal year or its future cash flow management. Accordingly, the Company judges that no material uncertainty exists regarding the going-concern assumption, as it is implementing response measures to eliminate these material events.」

「The Company recognizes that, because it reported an operating loss in the previous fiscal year and has reported an ordinary loss for 5 consecutive fiscal years, events or circumstances exist that raise substantial doubt about the going-concern assumption.」

「The Company recognizes that, because it reported an operating loss in the previous fiscal year and has reported an ordinary loss for 5 consecutive fiscal years, events or circumstances exist that raise substantial doubt about the going-concern assumption.」

「The company recorded an operating loss in the fiscal year under review, and its ordinary loss has continued for 5 consecutive fiscal years. It therefore recognizes that events or circumstances exist that raise significant doubt about the going concern assumption. Nevertheless, as stated in “3 [Management's Analysis of Financial Position, Operating Results and Cash Flows], (2) ⑦ Measures to Improve Material Matters Concerning the Going Concern Assumption,” it has determined that no material uncertainty related to the going concern assumption exists, as there are no concerns regarding its cash position during the fiscal year under review or future cash management and it is advancing measures to resolve the material event.」

「The company recorded operating and ordinary losses for 3 consecutive fiscal years in the fiscal year before the previous fiscal year and recorded operating profit of ¥28 million in the previous fiscal year. However, it recognizes that events or circumstances that raise significant doubt about the going concern assumption still exist, as the establishment of a performance foundation capable of generating operating profit consistently remains in progress. Nevertheless, as stated in “3. Analysis of Financial Position, Operating Results and Cash Flows, (6) Measures to Improve Events or Circumstances That Raise Significant Doubt About the Going Concern Assumption,” it has determined that no material uncertainty related to the going concern assumption exists, as there are no concerns regarding its cash position during the third quarter cumulative period or future cash management and it is advancing measures to resolve the material event.」

「The company recorded operating and ordinary losses for 3 consecutive fiscal years in the fiscal year before the previous fiscal year and recorded operating profit of ¥28 million in the previous fiscal year. However, it recognizes that events or circumstances that raise significant doubt about the going concern assumption still exist, as the establishment of a performance foundation capable of generating operating profit consistently remains in progress. Nevertheless, as stated in “3. Analysis of Financial Position, Operating Results and Cash Flows, (7) Measures to Improve Events or Circumstances That Raise Significant Doubt About the Going Concern Assumption,” it has determined that no material uncertainty related to the going concern assumption exists, as there are no concerns regarding its cash position during the second quarter cumulative period or future cash management and it is advancing measures to resolve the material event.」

「The company recorded operating and ordinary losses for 3 consecutive fiscal years in the fiscal year before the previous fiscal year and recorded operating profit of ¥28 million in the previous fiscal year. However, it recognizes that events or circumstances that raise significant doubt about the going concern assumption still exist, as the establishment of a performance foundation capable of generating operating profit consistently remains in progress. Nevertheless, it has determined that no material uncertainty related to the going concern assumption exists, as there are no concerns regarding its cash position during the first quarter cumulative period or future cash management and it is advancing measures to resolve the material event.」

「The company recorded operating and ordinary losses for 3 consecutive fiscal years in the previous fiscal year and recorded operating profit of ¥28 million in the fiscal year under review. However, it recognizes that events or circumstances that raise significant doubt about the going concern assumption still exist, as the establishment of a performance foundation capable of generating operating profit consistently remains in progress. Nevertheless, it has determined that no material uncertainty related to the going concern assumption exists, as there are no concerns regarding its cash position during the fiscal year under review or future cash management and it is advancing measures to resolve the material event.」

「In the previous fiscal year, the company recorded operating and ordinary losses for 3 consecutive fiscal years, and events or circumstances existed that raised significant doubt about the going concern assumption. However, as stated in “3. Analysis of Financial Position, Operating Results and Cash Flows, (5) Measures to Improve Events or Circumstances That Raise Significant Doubt About the Going Concern Assumption,” it has already begun measures to resolve these material events. The company has determined that no material uncertainty related to the going concern assumption exists, as it expects no financial impediment going forward by maintaining its favorable relationships with financial institutions.」

「In the previous fiscal year, the company recorded operating and ordinary losses for 3 consecutive fiscal years, and events or circumstances existed that raised significant doubt about the going concern assumption. However, as stated in “3. Analysis of Financial Position, Operating Results and Cash Flows, (6) Measures to Improve Events or Circumstances That Raise Significant Doubt About the Going Concern Assumption,” it has already begun measures to resolve these material events. The company has determined that no material uncertainty related to the going concern assumption exists, as it expects no financial impediment going forward by maintaining its favorable relationships with financial institutions.」

「In the previous fiscal year, the company recorded operating and ordinary losses for 3 consecutive fiscal years, and events or circumstances existed that raised significant doubt about the going concern assumption. However, it has already begun measures to resolve these material events and has determined that no material uncertainty related to the going concern assumption exists, as it expects no financial impediment going forward by maintaining its favorable relationships with financial institutions.」

「In the fiscal year under review, the company recorded operating and ordinary losses for 3 consecutive fiscal years, and events or circumstances existed that raised significant doubt about the going concern assumption.」