Material Doubts Regarding Going Concern Due to Two Consecutive Periods of Losses and Negative Operating Cash Flow
First written in FY2024. 3 of 7 entries say "Restated". Latest entry: 2026-10-02.
The whole theme swung hardest in 2025: 2 of 11 companies on the "Worse" side.
1 other company's latest entry also says "Restated".
- FY2026-H1Losses and breaches of financial covenants continue to worsen, while there are no concerns regarding cash managementAnnual report
「The Group continued to record operating losses (¥532,020 thousand in the fiscal year ended November 2024 and ¥254,842 thousand in the fiscal year ended November 2025), ordinary losses (¥614,400 thousand and ¥421,635 thousand, respectively), and net losses attributable to owners of the parent (¥672,018 thousand and ¥226,025 thousand, respectively) in the previous consolidated fiscal year. Operating cash flow had been negative (¥251,334 thousand in the fiscal year ended November 2024), but turned positive, albeit slightly. In addition, borrowings of ¥587,576 thousand from certain lending financial institutions as of the end of the current interim consolidated accounting period are in breach of financial covenants, although the Company has still not received notice that provisions concerning the loss of the benefit of time will be applied. As a result, events or conditions exist that raise substantial doubt about the going concern assumption.」
Material events concerning the going concern assumption continue, and the amount of the loss for the interim period also increased. Operating cash flow, however, remained positive year on year, and the amount of borrowings subject to financial covenant breaches was stated as ¥587 million. - 2026-04-03RestatedEarnings
「As a result, events or conditions exist that raise substantial doubt about the Company's ability to continue as a going concern.」
The company continued to state that events or conditions raising substantial doubt about its ability to continue as a going concern existed, against a backdrop of losses for 3 consecutive fiscal years and breaches of financial covenants. It also continued to judge that no material uncertainty existed. - FY2025Operating losses and other losses continued for 3 consecutive fiscal years, while operating cash flow turned slightly positiveAnnual report
「The Group continued to record operating losses (¥532,020 thousand in the fiscal year ended November 2024 and ¥254,842 thousand in the fiscal year ended November 2025), ordinary losses (¥614,400 thousand and ¥421,635 thousand, respectively), and net losses attributable to owners of the parent (¥672,018 thousand and ¥226,025 thousand, respectively) in the current consolidated fiscal year. Operating cash flow had been negative (¥251,334 thousand in the fiscal year ended November 2024), but turned positive, albeit slightly.」
Operating losses, ordinary losses and net losses continued for 3 consecutive fiscal years, although the amounts of the losses decreased, while operating cash flow turned from negative ¥251 million to positive ¥51 million. - FY2025-H1RestatedAnnual report
「In the fiscal year ended November 2024, the Group recorded operating losses, ordinary losses and net losses attributable to owners of the parent for two consecutive fiscal years. It also recorded negative operating cash flow for two consecutive fiscal years. Although the Company has not received notice from certain lending financial institutions that provisions concerning the loss of the benefit of time will be applied to certain borrowings, it is in breach of financial covenants. As a result, events or conditions exist that raise substantial doubt about the going concern assumption.」
The Company has again described two consecutive years of losses, negative operating cash flow and breaches of financial covenants as material events concerning the going concern assumption. At the same time, it has determined that no material uncertainty exists. - FY2024MaterialisedAnnual report
「The Group recorded operating losses for two consecutive fiscal years (¥462,420 thousand in the fiscal year ended November 2023 and ¥532,020 thousand in the fiscal year ended November 2024), ordinary losses (¥490,872 thousand and ¥614,400 thousand, respectively), and net losses attributable to owners of the parent (¥815,293 thousand and ¥672,018 thousand, respectively). It also recorded negative operating cash flow for two consecutive fiscal years (¥1,490,820 thousand and ¥251,334 thousand, respectively).」
The Company states that it recorded operating losses, ordinary losses, net losses attributable to owners of the parent and negative operating cash flow for two consecutive fiscal years, and that events or conditions exist that raise substantial doubt about the going concern assumption.