Going-concern measures through asset sales, restrained investment, and maintaining relationships with financial institutions

「資金面につきましては、当中間会計期間末の現金及び預金はM&Aによる店舗買収により低下したものの、取引金融機関より、10月以降において融資を締結しており資金を確保いたしました。」

「During the current fiscal year, funds generated from financing activities amounted to ¥460 million (¥134 million generated in the previous fiscal year). This was mainly due to proceeds of ¥270 million from the issuance of new shares and ¥272 million from the exercise of stock acquisition rights, despite ¥56 million in bond redemptions and a net decrease of ¥25 million in short- and long-term borrowings.」

「EVO FUNDを割当先とした「第三者割当による第１回新株予約権（行使価額修正条項付）」については、2025年11月27日をもって新株予約権の全ての行使が完了し、総額299,825千円の資金調達となりました。また、新たに2025年12月25日付の適時開示に記載のとおり、L&Y貿易株式会社並びにSINO PRIDE VENTURES LIMITEDを割当先とする「第三者割当による新株式の発行」を決議し、2026年１月13日付で270,000千円の払込が完了いたしました。」

「The company is also pursuing funding from sources other than financial institutions as appropriate and, as stated in the timely disclosure dated 10 January 2025, issued the "First Series of Stock Acquisition Rights through a Third-Party Allotment (with Exercise Price Adjustment Clause)" dated 27 January 2025, with EVO FUND as the allottee. If all of these rights are exercised, the company expects to raise ¥348,454 thousand, further stabilizing its funding position.」

「During the current interim accounting period, funds generated from financing activities amounted to ¥54 million (¥36 million in proceeds in the same period of the previous year). This was mainly due to ¥100 million in proceeds from long-term borrowings.」

「Regarding funding, the company continues to work closely with its lending financial institutions and exchange information with them, maintaining good relationships so that it can receive support for funds required. It will also consider funding from sources other than financial institutions as appropriate.」

「Regarding funding, the company received support for part of the funds for its business structure reform during the previous fiscal year and continues to work closely with its lending financial institutions and exchange information with them. It will maintain good relationships so that it can receive support for funds required in the future. It is also considering funding from sources other than financial institutions as appropriate.」

「During the current fiscal year, the company received support for part of the funds for its business structure reform. It will continue to work closely with its lending financial institutions and maintain good relationships so that it can receive support for funds required in the future. It will also consider funding from sources other than financial institutions as appropriate.」

「Regarding funding, the company secured working capital for the time being through the transfer of the head office land and buildings during the previous fiscal year. It will also continue to work closely with its lending financial institutions and maintain good relationships so that it can receive support for funds required in the future.」

「Regarding funding, the company secured working capital for the time being through the transfer of the head office land and buildings during the previous fiscal year. It will also continue to work closely with its lending financial institutions and maintain good relationships so that it can receive support for funds required in the future.」

「Regarding funding, the company secured working capital for the time being through the transfer of the head office land and buildings during the previous fiscal year. It will also continue to work closely with its lending financial institutions and maintain good relationships so that it can receive support for funds required in the future.」

「Regarding funding, the company expects to have sufficient working capital for the time being as a result of expanding cash on hand through the execution of policy-based loans and transferring the head office land and buildings during the previous fiscal year. It will also continue to work closely with its lending financial institutions and maintain good relationships so that it can receive support for funds required in the future.」

「During the cumulative second quarter period, funds generated from investing activities amounted to ¥3,408 million (¥123 million generated in the same quarter of the previous year). This was mainly due to ¥3,433 million in proceeds from the sale of property, plant and equipment and ¥186 million in proceeds from the recovery of deposits and guarantee deposits, despite ¥75 million in expenditures to settle asset retirement obligations.」

「Using the proceeds from the sale of the head office land and buildings described above, the company fully prepaid the borrowings under the term loan agreement and commitment line agreement that had been in breach of financial covenants as of 31 May 2021, eliminating concerns about the impact of this matter on cash flow.」

「Regarding funding, the company requested each financial institution to grant a grace period on the application of financial covenants and obtained their consent. It is also negotiating with its lending financial institutions and others for the additional funding required over the coming 1 year. To improve its financial stability, the company has secured new credit facilities as a cash flow support measure, including from its main bank.」

「Regarding funding, the company requested each financial institution to grant a grace period on the application of financial covenants and obtained their consent. It is also negotiating with its lending financial institutions and others for the additional funding required over the coming 1 year. To improve its financial stability, the company has secured new credit facilities as a cash flow support measure, including from its main bank.」

「Regarding funding, the company requested each financial institution to grant a grace period on the application of financial covenants and obtained their consent. It is also negotiating with its lending financial institutions and others for the additional funding required over the coming 1 year. To improve its financial stability, the company has secured a new credit facility from its main bank as a cash flow support measure.」

「Regarding funding, the company is currently negotiating with its lending financial institutions and others for a grace period on the application of financial covenants and for the additional funds required over the coming 1 year.」

「Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and that no material uncertainty exists regarding the going concern assumption.」

「Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and that no material uncertainty exists regarding the going concern assumption.」

「Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and that no material uncertainty exists regarding the going concern assumption.」

「Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and that no material uncertainty exists regarding the going concern assumption.」

「However, to resolve the relevant event or circumstances, the company announced the Medium-Term Management Improvement Plan (fiscal 2016 to fiscal 2018), with fiscal 2016 as its first year, to improve business performance promptly and build a corporate structure capable of transitioning to a growth strategy. Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being」

「Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being」

「Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and that no material uncertainty exists regarding the going concern assumption.」

「However, to resolve the relevant event or circumstances, the company announced the Medium-Term Management Improvement Plan (fiscal 2016 to fiscal 2018), with fiscal 2016 as its first year, to improve business performance promptly and build a corporate structure capable of transitioning to a growth strategy. Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and that no material uncertainty exists regarding the going concern assumption.」

「However, to resolve the relevant event or circumstances, the company announced the Medium-Term Management Improvement Plan (fiscal 2016 to fiscal 2018), with fiscal 2016 as its first year, to improve business performance promptly and build a corporate structure capable of transitioning to a growth strategy. Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position at the end of the current quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and that no material uncertainty exists regarding the going concern assumption.」

「Regarding funding, in December 2016 the company entered into a syndicated loan agreement with its lending financial institutions to raise funds to refinance existing borrowings and strengthen its financial position. After reviewing its cash position for the current fiscal year and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and that no material uncertainty exists regarding the going concern assumption.」

「However, after reviewing its cash position at the end of the third quarter accounting period and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being. To resolve the relevant event or circumstances, it announced the Medium-Term Management Improvement Plan (fiscal 2016 to fiscal 2018), with fiscal 2016 as its first year, to improve business performance promptly and build a corporate structure capable of transitioning to a growth strategy.」

「To resolve the relevant event or circumstances, the company announced the Medium-Term Management Improvement Plan (fiscal 2016 to fiscal 2018), with fiscal 2016 as its first year, to improve business performance promptly and build a corporate structure capable of transitioning to a growth strategy.」

「To resolve the relevant event or circumstances, the company is working to further strengthen sales initiatives to "eliminate customer losses and attract more customers," improve productivity through efficient personnel allocation, consolidate and close unprofitable stores, optimize inventories, sell assets and restrain capital investment. It is also currently formulating a fundamental medium-term improvement plan incorporating the measures described above (scheduled for publication upon completion).」

「After reviewing its cash position for the current fiscal year and its future cash flow, the company concluded that there are no concerns about the continuity of its business activities for the time being and is working to sell assets and restrain capital investment. It is also currently formulating a fundamental medium-term improvement plan, including the measures described above. By improving profitability through these initiatives and maintaining its good business relationships with its current financial institutions, the company expects no financial impediments going forward」