Significant Doubt Regarding Going Concern and Remedial Measures
First written in FY2019-Q3. 15 of 24 entries say "Mitigated", first in FY2019. Latest entry: FY2026-H1.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
16 other companies' latest entry also says "Dropped".
- FY2026-H1DroppedAnnual report
「Meanwhile, among the business and other risks described in the annual securities report for the previous fiscal year, the company deleted the section on "Deferral of dividends on Class A preferred shares" from the disclosure of material events and other matters because it paid the accumulated Class A preferred dividends in July 2025.」
Following payment of the accumulated Class A preferred dividends, the company deleted the disclosure of material events and other matters concerning the "deferral of dividends on Class A preferred shares." - FY2025MitigatedAnnual report
「From a financial perspective, the equity ratio at the end of the current fiscal year was 69.2%, indicating that the company has sufficient capital. The company has determined that there is no risk of material concern arising regarding its cash flow plan for the next fiscal year and beyond.」
Although the material event of deferring dividends on Class A preferred shares continues, the company maintains its judgment that no material uncertainty exists regarding the going-concern assumption, based on its 69.2% equity ratio and funding plan. - FY2025-H1RestatedAnnual report
「As we believe that we can restore a “sound financial foundation” going forward by taking the necessary measures described above, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the material event of deferring dividends on Class A preferred shares and common shares continues, the company maintains its judgment that no material uncertainty exists, citing cost reductions, capital strengthening, reductions in interest-bearing debt, and new products planned for the second half as countermeasures. - FY2024MitigatedAnnual report
「The equity ratio at the end of the current fiscal year was 62.6%, indicating that the company has sufficient capital. The company has determined that there is no risk of material concern arising regarding its cash flow plan for the next fiscal year and beyond.」
Although the material event of having no dividend continues, the company indicates that, based on its 62.6% equity ratio and the conversion of operating cash flow to positive, there is no material concern regarding its funding plan for the next fiscal year and beyond. - FY2024-Q3MitigatedAnnual report
「In addition, in light of the upward revenue trend during the cumulative third quarter, the company has determined that there is no risk of material concern arising regarding its cash flow plan for the current fiscal year and beyond.」
Although the material event of suspending dividend payments continues to be disclosed, the company indicates that, based on the upward revenue trend and other factors, there is no material concern regarding its cash flow plan for the current fiscal year and beyond. - FY2024-Q2MitigatedAnnual report
「In addition, in light of the upward revenue trend during the cumulative second quarter, the company has determined that there is no risk of material concern arising regarding its cash flow plan for the current fiscal year and beyond.」
Although the material event of suspending dividend payments continues, the company indicates that, based on the upward revenue trend and capital strengthening, there is no material concern regarding its cash flow plan for the current fiscal year and beyond. - FY2024-Q1MitigatedAnnual report
「As we believe that we can restore a “sound financial foundation” going forward by taking the necessary measures described above, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the material event of deferring dividends on Class A preferred shares and common shares continues, the company maintains its judgment that no material uncertainty exists regarding the going-concern assumption, based on the recovery in revenue, cost reductions, inventory and credit management, and the increase in cash and deposits. - FY2023MitigatedAnnual report
「The equity ratio was 51.2% at the end of the fiscal year, indicating that the company has sufficient capital. We have determined that there is no risk of significant concern arising regarding the cash flow plan from the next fiscal year onward.」
Although the suspension of dividends on Class A preferred shares remains a material event, the company indicated that it had determined there was no significant concern regarding its financing plan from the next fiscal year onward, based on an equity ratio of 51.2% and the return to positive operating cash flow. - FY2023-Q3WorsenedAnnual report
「Meanwhile, revenue for the cumulative third-quarter period decreased 25.4% year on year, partly because there were no major new products comparable to those launched in the previous fiscal year. We have also lowered the break-even point through expense reductions. Although operating income for the cumulative third-quarter period was a loss of ¥412.277 million, we expect the operating loss for the full fiscal year to narrow because the fourth-quarter accounting period includes many new products and is expected to generate higher revenue and profit.」
While maintaining its determination that no material uncertainty exists regarding the going-concern assumption, the company recorded a 25.4% year-on-year decline in revenue and an operating loss of ¥412.277 million, indicating a deterioration in material events related to operating performance. It also stated that the operating loss is expected to narrow in the fourth quarter due to new products and expense reductions. - FY2023-Q2MitigatedAnnual report
「We had suspended dividends on both Class A preferred shares and common shares, but because the shareholders' equity ratio was 54.5% at the end of the second quarter accounting period, exceeding the 50.0% benchmark, we are considering resuming dividends at year-end.」
Although the suspension of dividends on Class A preferred and common shares remains a material event, the company stated that its equity ratio had exceeded the 50.0% benchmark for resuming dividends and that it was considering resuming dividends at the end of the fiscal year. It also maintains its determination that no material uncertainty exists regarding the going-concern assumption. - FY2023-Q1RestatedAnnual report
「As we believe that we can restore a “sound financial foundation” going forward by taking the necessary measures described above, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the suspension of dividends on Class A preferred shares continues to be disclosed as a material event, the company maintains its determination that no material uncertainty exists as a result of measures including inventory, cost and expense management and capital strengthening through stock acquisition rights. - FY2022MitigatedAnnual report
「As we believe that we can restore a “sound financial foundation” going forward by taking the necessary measures described above, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the suspension of dividends remains a material event, the company continues to determine that no material uncertainty exists as a result of measures including inventory reductions, expense reductions, the exercise of stock acquisition rights and capital strengthening. - FY2022-Q3MitigatedAnnual report
「In addition, revenue for the cumulative third-quarter period increased 11.9% year on year. We will work to understand the status of distribution inventory held by distributors and other parties, and will take preventive measures to avoid excessive inventory within the sales organization, including setting credit limits for each distributor. We have also lowered the break-even point by reducing costs and expenses. Although operating income for the cumulative third-quarter period was a loss of ¥141 million, the loss narrowed by ¥244 million compared with the cumulative third-quarter period of the previous year. As the fourth-quarter accounting period is typically a period of higher revenue and enables us to generate profit, we expect to achieve an operating profit for the full fiscal year.」
Revenue increased 11.9% year on year, and the operating loss narrowed by ¥244 million, indicating an expectation of an operating profit for the full fiscal year. Inventory management, cost reductions, expense reductions and capital strengthening through the exercise of stock acquisition rights also remain among the remedial measures. - FY2022-Q2MitigatedAnnual report
「In addition, during the second-quarter accounting period, we launched the major skincare series “IVY COSMOS II.” As a result, although sales fell short of the initial budget, revenue for the cumulative second-quarter period increased 35.1% year on year.」
Although material events continue to be disclosed, the company identified a 35.1% increase in revenue, operating profit of ¥272 million, an equity ratio of 40.1% and capital strengthening through the exercise of stock acquisition rights as factors contributing to improvement. - FY2022-Q1MitigatedAnnual report
「As we believe that we can restore a “sound financial foundation” during the current fiscal year by taking the necessary measures described above, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the suspension of dividends on Class A preferred shares remains a material event, the company indicated that it expects to restore a sound financial foundation through measures including improving inventory levels, reducing expenses, strengthening capital and recovering sales. - FY2021RestatedAnnual report
「As described above, events or circumstances exist that raise material doubt about the going-concern assumption.」
While continuing to describe the suspension of dividends on Class A preferred shares as a material event, the company maintains its determination that no material uncertainty exists as a result of the necessary measures. - FY2021-Q3MitigatedAnnual report
「Meanwhile, during the third-quarter accounting period, revenue recovered to 141.9% of the same quarter of the previous year.」
Material events concerning the going concern remain, with revenue down 13.2% and an operating loss for the cumulative third-quarter period. However, the company identified the recovery in revenue during the third-quarter accounting period, inventory reductions, expense reductions and financing measures as factors contributing to improvement. - FY2021-Q2WorsenedAnnual report
「In addition, during the cumulative second-quarter period, the spread of COVID-19 resulted in the continued existence of a material event or circumstance described as a “significant decline in revenue.”」
Material events continue, and during the cumulative second-quarter period the company recorded a 24.8% decline in revenue, an operating loss of ¥157 million, an ordinary loss of ¥171 million and a net loss of ¥160 million. At the same time, it maintains its determination that no material uncertainty exists as a result of measures including financing and expense reductions. - FY2021-Q1RestatedAnnual report
「During the cumulative first-quarter period, revenue decreased 12.9% from the cumulative first-quarter period of the previous year due to the spread of COVID-19 and the resulting declaration of a state of emergency, and performance once again came under pressure.」
Revenue decreased 12.9% year on year due to COVID-19, and material events concerning the going concern remain. At the same time, the company has outlined measures including various borrowings and expense reductions and maintains its determination that no material uncertainty exists. - FY2020-Q3MitigatedAnnual report
「During the cumulative third-quarter period, sales-support measures and advance orders placed ahead of the consumption tax increase also provided support, and revenue was 13.3% higher than in the same quarter of the previous year.」
Although events raising material doubt about the going-concern assumption remain, the company stated that revenue increased 13.3% year on year due to sales-support measures and other initiatives, indicating continued improvement. - FY2020-Q2MitigatedAnnual report
「Meanwhile, during the cumulative second-quarter period, revenue had begun to recover and the situation was improving.」
Although events raising material doubt about the going-concern assumption remain, the company stated that the situation was improving, driven by revenue recovery, a return to profitability, expense reductions and capital strengthening. - FY2020-Q1RestatedAnnual report
「As a result, events or circumstances exist that raise material doubt about the going-concern assumption.」
The company continues to describe declining revenue, losses, deteriorating financing terms and the suspension of preferred dividends as material events raising doubt about the going-concern assumption. At the same time, it continues to determine that no material uncertainty exists as a result of its remedial measures. - FY2019MitigatedAnnual report
「As we believe that we can restore a “sound financial foundation” going forward by taking the necessary measures described above, we have determined that no material uncertainty exists regarding the going-concern assumption.」
While describing material events including a substantial decline in revenue, losses and deterioration in financing terms, the company identified the issuance of preferred shares, borrowings, inventory reduction and expense reductions as remedial measures, and determined that no material uncertainty existed. - FY2019-Q3First statedAnnual report
「As a result, events or circumstances exist that raise material doubt about the going-concern assumption. Details of the analysis and consideration of these events, and the measures to resolve or improve the situation, are provided in “2. Analysis of Financial Position, Operating Results and Cash Flows by Management.”」
The company has for the first time expressly stated that events or circumstances raising material doubt about the going-concern assumption exist, against a backdrop of lower revenue due to inventory adjustments by distributors, poor operating performance and difficulty in raising funds due to a decline in equity. Subsequently, following the issuance of Class A preferred shares and other measures, the company determined that no material uncertainty existed.