Negative Net Assets and Material Uncertainty Regarding Going Concern
First written in FY2024-H1. 5 of 9 entries say "Mitigated", first in FY2025-H1. Latest entry: FY2026-H1.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
4 other companies' latest entry also says "Other".
- FY2026-H1Doubtful circumstances continue to be disclosed while repayment deferrals remain in placeAnnual report
「Our Group recorded negative operating cash flow in the previous consolidated fiscal year. As described in “2. Management’s Analysis of Financial Position, Operating Results and Cash Flows, (1) Overview of Operating Results for the Current Period,” although we recorded operating profit during the current interim consolidated accounting period, we have received deferrals of principal repayments from lending financial institutions, and circumstances exist that raise significant doubt about the going-concern assumption. Accordingly, we judged that no material uncertainty related to the going-concern assumption existed.」
Negative operating cash flow and principal repayment deferrals were cited as circumstances raising significant doubt about going concern, while the Company maintained its judgment that no material uncertainty existed based on capital raising, cost reductions and secured liquidity. - FY2025MitigatedAnnual report
「Following the completion of the issuance and payment of ¥3,300,000 thousand of Class A Shares allocated to The San-in Godo Bank,Ltd. on 28 March 2025, net assets at the end of the current consolidated fiscal year were ¥657,445 thousand and the negative-net-assets position was eliminated.」
Payment for ¥3.3 billion of Class A Shares, capital raised through MS Warrants and other measures, and cost reductions improved total capital from negative ¥4,776,719 thousand at the previous year-end to ¥657,445 thousand. Negative net assets were eliminated, and the Company judged that no material uncertainty related to going concern existed. - FY2025-H1MitigatedAnnual report
「Following the completion of the issuance and payment of ¥3,300,000 thousand of Class A Shares allocated to The San-in Godo Bank,Ltd., capital at the end of the current interim consolidated accounting period was ¥1,234,807 thousand and the negative-net-assets position was eliminated. Regarding liquidity, cash and cash equivalents at the end of the interim consolidated accounting period were ¥4,131,709 thousand, providing sufficient funds for continued operations. Accordingly, we judged that no material uncertainty related to the going-concern assumption existed.」
The previous negative-net-assets position and material uncertainty related to going concern were addressed through capital raising and cost reductions. Capital was ¥1,234,807 thousand at the interim period-end and negative net assets were eliminated. The interim loss and principal repayment deferrals remained, so not all business and financial issues were stated to have been resolved. - FY2024WorsenedAnnual report
「As a result, we recognized impairment losses of ¥4,320,639 thousand, mainly on goodwill and fixed assets, during the current consolidated fiscal year. Because we recorded significant operating and net losses, net assets were negative by ¥4,776,719 thousand at the end of the fiscal year. Accordingly, circumstances existed that raised significant doubt about the going-concern assumption.」
Negative net assets increased from ¥2,593,909 thousand at the interim period-end to ¥4,776,719 thousand at year-end. Material uncertainty related to going concern continued to be disclosed alongside two consecutive years of significant operating losses and negative operating cash flow. - FY2024-H1First statedAnnual report
「As a result, we recognized impairment losses of ¥4,140,388 thousand, mainly on goodwill and fixed assets, during the current interim consolidated accounting period. Because we also recorded significant operating and net losses during the period, net assets were negative by ¥2,593,909 thousand at the end of the interim consolidated accounting period. Accordingly, circumstances existed that raised significant doubt about the going-concern assumption.」
Negative net assets resulting from impairment losses and interim losses were disclosed for the first time, together with significant uncertainty related to the going-concern assumption. Some response measures remained in progress and final agreements with relevant parties had not been reached.