Goodwill Impairment Risk Associated with the Acquisition of KMT Hepatech,Inc.
First written in FY2018. 2 of 14 entries say "Materialised", first in FY2020. Latest entry: FY2026-H1.
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
32 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「KMT Hepatech,Inc., the company's consolidated subsidiary that had been undergoing liquidation, completed its liquidation on 31 October 2025.」
Regarding the historical impairment and profitability risks associated with KMT Hepatech,Inc., the company disclosed that the subsidiary's liquidation was completed on 31 October 2025. - FY2025WorsenedAnnual report
「KMT Hepatech,Inc., a consolidated subsidiary, had operated as a North American production base for PXB mice and PXB-cells. However, because the yield rate for PXB mouse production was low and stable production could not be expected, the company resolved at a meeting of the Board of Directors held on 30 April 2025 to dissolve and liquidate the subsidiary.」
For KMT Hepatech,Inc., the company reached a decision to dissolve and liquidate the subsidiary after the low yield rate and lack of prospects for stable production persisted. It also recognized an impairment loss of ¥13,732 thousand and other items. - FY2023MitigatedAnnual report
「At the overseas production facility for which an impairment loss was recognized in the previous consolidated fiscal year, production of PXB mice has also begun to produce results, and the company will continue working to contribute to earnings through stable production.」
The company states that the overseas production facility for which an impairment loss was recognized in the previous fiscal year has begun to produce results and continues to target an earnings contribution through stable production. - FY2022MaterialisedAnnual report
「Due to negative cash flow, the company decided to recognize an impairment loss on the carrying amount of ¥265,027 thousand and recorded it as an extraordinary loss.」
As KMT Hepatech,Inc.'s North American production facility had not achieved sufficient production results or profitability, the company recognized an impairment loss on the carrying amounts of buildings and structures, tools, furniture and fixtures, and right-of-use assets totaling ¥265,027 thousand. - FY2021RestatedAnnual report
「Under the medium-term business plan, the group has continued to record operating losses and negative cash flow. To address this situation, it has invested in equipment at its subsidiary KMT Hepatech Inc. as a North American production base, alongside expanding its business in overseas markets, particularly North America. However, as the operation has not yet become profitable, the group plans to improve earnings by establishing a production system at this facility and a supply system for the North American market.」
For KMT's overseas production equipment, for which an impairment loss was recognized in the previous fiscal year, the company disclosed the recognized amount of ¥282,239 thousand and estimates of future cash flows based on the medium-term plan, reconfirming that the operation has not yet become profitable. - FY2020MaterialisedAnnual report
「The carrying amount was reduced to the recoverable amount, and the difference of ¥292,122 thousand from the carrying amount was recognized as an impairment loss under extraordinary losses.」
For KMT Hepatech,Inc., the company recognized an impairment loss of ¥292,122 thousand on goodwill, right-of-use assets and other assets because there was no prospect of new NIH budget funding and the North American production base had not achieved sufficient profitability. - FY2020-Q3Update to third-quarter goodwill balanceAnnual report
「This was mainly due to a ¥74,414 thousand increase in right-of-use assets resulting from the application of IFRS 16, "Leases," by certain overseas subsidiaries, while goodwill decreased by ¥23,734 thousand due to the recognition of goodwill amortization and other items.」
For the goodwill arising from the acquisition of KMT Hepatech,Inc., the company recognized a ¥23,734 thousand decrease from the end of the previous consolidated fiscal year due to goodwill amortization and other items, resulting in a balance of ¥259,932 thousand. - FY2020-Q2Update to second-quarter goodwill amortizationAnnual report
「Goodwill amortization 15,960」
For the goodwill arising from the acquisition of KMT Hepatech,Inc., the company recognized ¥15,960 thousand in amortization during the cumulative second-quarter consolidated period. - FY2020-Q1Recognition of first-quarter goodwill amortizationAnnual report
「Goodwill amortization 8,018」
For the goodwill arising from the acquisition of KMT Hepatech,Inc., the company recognized ¥8,018 thousand in amortization during the cumulative first-quarter period, resulting in an ending balance of ¥279,575 thousand. - FY2019Recognition of full-year goodwill amortizationAnnual report
「Goodwill amortization: ¥32,952 thousand」
For the goodwill arising from the acquisition of KMT Hepatech,Inc., the company recognized ¥32,952 thousand in amortization for the full year, resulting in an ending balance of ¥283,666 thousand. - FY2019-Q3Recognition of third-quarter goodwill amortizationAnnual report
「Goodwill decreased by ¥27,177 thousand due to the recognition of goodwill amortization.」
For the goodwill arising from the acquisition of KMT Hepatech,Inc., the company recognized ¥27,177 thousand in amortization during the cumulative third-quarter period, reducing the balance to ¥335,194 thousand. - FY2019-Q2Recognition of second-quarter goodwill amortizationAnnual report
「This was mainly due to a ¥14,050 thousand increase in buildings and structures resulting from an extension to the head office building, while goodwill decreased by ¥18,118 thousand due to the recognition of goodwill amortization.」
For the goodwill arising from the acquisition of KMT Hepatech,Inc., the company recognized ¥18,118 thousand in amortization during the cumulative second-quarter period, reducing the balance to ¥344,254 thousand. - FY2019-Q1Recognition of goodwill amortizationAnnual report
「This was mainly due to a ¥9,059 thousand decrease in goodwill resulting from the recognition of goodwill amortization.」
The company disclosed that it recognized ¥9,059 thousand in goodwill amortization during the first quarter in relation to goodwill arising from the acquisition of KMT Hepatech,Inc., reducing the balance. - FY2018First statedAnnual report
「The group has recognized goodwill arising from the acquisition of shares in KMT Hepatech,Inc. on its consolidated balance sheet. Amount of goodwill recognized ¥362,372 thousand The group has determined that the goodwill appropriately reflects future earnings potential. However, if the expected results are not achieved due to changes in the business environment or other factors, an impairment loss may arise and affect the group's results.」
The company recognized ¥362,372 thousand in goodwill in connection with the acquisition of KMT Hepatech,Inc. and disclosed the possibility of an impairment loss and an impact on results if the expected benefits are not realized as a new risk.