Recognition of a contractual settlement payment as an extraordinary loss
SmartDrive inc. (the Company)
Telecommunications costs and telecommunications transactions (telecommunications provider not disclosed)
A temporary increase in traffic in June 2026. The specific cause of the increase in traffic was not disclosed.
¥40 million (recorded as a “contractual settlement payment” under extraordinary losses)
Fourth-quarter consolidated accounting period of the fiscal year ending September 2026 (1 July 2026 to 30 September 2026)
Not disclosed. The extraordinary loss related to this matter is reflected in the “Summary of Financial Results for the Fiscal Year Ended September 2026 [Japanese GAAP] (Consolidated)” released today.
Related procedures
Discussions with the telecommunications provider regarding the settlement terms (not disclosed whether this constitutes litigation or administrative proceedings)
Company response
Measures to prevent recurrence have been implemented.
The Company will continue discussions regarding the final settlement terms and will promptly disclose any matters requiring disclosure that arise from the terms of any future agreement.
The Company will promptly disclose any matters requiring disclosure that arise from the terms of any future agreement.
| Item | Details |
|---|---|
| Event name | Recognition of a contractual settlement payment as an extraordinary loss |
| Date of occurrence | June 2026 (specific date not disclosed) |
| Subject Entity | SmartDrive inc. (the Company) |
| Target Locations / Products | Telecommunications costs and telecommunications transactions (telecommunications provider not disclosed) |
| Cause | A temporary increase in traffic in June 2026. The specific cause of the increase in traffic was not disclosed. |
| Amount of Impact on Business Performance | ¥40 million (recorded as a “contractual settlement payment” under extraordinary losses) |
| Accounting period in which recognized | Fourth-quarter consolidated accounting period of the fiscal year ending September 2026 (1 July 2026 to 30 September 2026) |
| Impact on Earnings Forecast | Not disclosed. The extraordinary loss related to this matter is reflected in the “Summary of Financial Results for the Fiscal Year Ended September 2026 [Japanese GAAP] (Consolidated)” released today. |
| Type of litigation or proceeding | Discussions with the telecommunications provider regarding the settlement terms (not disclosed whether this constitutes litigation or administrative proceedings) |
| Measures to prevent recurrence | Measures to prevent recurrence have been implemented. |
| Outlook | The Company will continue discussions regarding the final settlement terms and will promptly disclose any matters requiring disclosure that arise from the terms of any future agreement. |
| Planned follow-up disclosure | The Company will promptly disclose any matters requiring disclosure that arise from the terms of any future agreement. |
Items this document does not state (13)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Company is discussing the settlement terms with the telecommunications provider regarding telecommunications costs associated with the temporary increase in traffic in June 2026. Its basic policy is to combine a partial waiver of the billed amount with future telecommunications transactions.