Carried-forward tax losses and the return of retained earnings to a deficit
First written in FY2023. 5 of 8 entries say "Worsened", first in FY2024-Q3. Latest entry: FY2027-H1.
Tms moved to the "Worse" side of this theme in 2023, 4 years after the typical company in this theme (2019).
The whole theme swung hardest in 2021: 8 of 10 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Net assets at the end of the interim accounting period decreased by ¥360,817 thousand from the previous fiscal year-end to ¥2,410,313 thousand. This mainly reflected recognition of an interim net loss of ¥393,538 thousand, despite capital stock and capital surplus each increasing by ¥9,274 thousand following warrant exercises.」
Recognition of an interim net loss of ¥393,538 thousand again increased the negative balance of retained earnings, from negative ¥716,058 thousand at the previous fiscal year-end to negative ¥1,109,597 thousand, while net assets declined to ¥2,410,313 thousand. - FY2026-H1MitigatedAnnual report
「In July 2025, the Company reduced capital stock and capital surplus by ¥702,327 thousand each, transferred the amounts to other capital surplus and then transferred ¥1,404,655 thousand of other capital surplus to retained earnings to eliminate the deficit.」
On 15 July 2025, the Company reduced capital stock and capital surplus and transferred surplus to eliminate the deficit, reducing negative retained earnings from ¥1,404,655 thousand to ¥487,473 thousand. Retained earnings nevertheless remained negative after the interim net loss. - FY2025WorsenedAnnual report
「The Company had ¥3,065 million in tax loss carryforwards at the end of the fiscal year ended February 2025.」
Tax loss carryforwards reached ¥3,065 million at the end of the fiscal year ended February 2025, highlighting the possibility that losses and delayed milestone revenue could further increase the negative balance. - FY2025-H1WorsenedAnnual report
「Net assets at the end of the interim accounting period decreased by ¥468,797 thousand from the previous fiscal year-end to ¥2,988,267 thousand, mainly because retained earnings decreased following recognition of an interim net loss of ¥477,820 thousand.」
Recognition of an interim net loss of ¥477,820 thousand reduced retained earnings and lowered net assets by ¥468,797 thousand to ¥2,988,267 thousand. - FY2025-Q1WorsenedAnnual report
「Net assets at the end of the first quarter decreased by ¥244,020 thousand from the previous fiscal year-end to ¥3,213,044 thousand, mainly because retained earnings decreased following recognition of a quarterly net loss of ¥247,670 thousand.」
R&D expenses and other costs increased the negative balance of retained earnings from ¥744,106 thousand at the previous fiscal year-end to ¥991,777 thousand, while net assets fell to ¥3,213,044 thousand. - FY2024-Q3WorsenedAnnual report
「Net assets at the end of the third quarter decreased by ¥553,986 thousand from the previous fiscal year-end to ¥3,160,067 thousand, mainly because retained earnings decreased following recognition of a quarterly net loss of ¥564,315 thousand.」
Recognition of a quarterly net loss of ¥564,315 thousand reduced retained earnings from ¥215,933 thousand to negative ¥348,381 thousand, while net assets fell to ¥3,160,067 thousand. - FY2024-Q2MaterialisedAnnual report
「Net assets at the end of the second quarter decreased by ¥337,694 thousand from the previous fiscal year-end to ¥3,376,358 thousand, mainly because retained earnings decreased following recognition of a quarterly net loss of ¥342,624 thousand.」
Recognition of a quarterly net loss of ¥342,624 thousand reduced retained earnings, which stood at negative ¥126,691 thousand as of 31 August 2023. - FY2023MaterialisedAnnual report
「The Company had ¥1,515 million in tax loss carryforwards at the end of the fiscal year ended February 2023. However, there is no guarantee that it will generate sufficient taxable income during the carryforward period to use all or part of those tax loss carryforwards.」
The Company had ¥1,515 million in tax loss carryforwards at the end of February 2023 and may again have negative retained earnings if future losses continue or revenue is insufficient.