Breach of Financial Covenants and Material Events Related to Going Concern
First written in FY2017. 11 of 25 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 2 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Total commitment line ¥4,000 million Drawn balance ¥4,000 million ¥3,400 million Undrawn amount — ¥600 million」
Against the ¥4 billion total commitment line, the drawn balance decreased from ¥4 billion at the end of the previous fiscal year to ¥3.4 billion, and the undrawn balance recovered to ¥600 million. The financial covenants remain in place. - FY2026-H1MitigatedAnnual report
「Total commitment line ¥4,000 million ¥4,000 million Drawn balance ¥4,000 million ¥2,200 million Undrawn amount — ¥1,800 million」
Against the ¥4 billion total commitment line, the drawn balance decreased from ¥4 billion to ¥2.2 billion, leaving an undrawn balance of ¥1.8 billion. The financial covenants remain in place, but available capacity has recovered from the end of the previous fiscal year. - FY2025WorsenedAnnual report
「These facilities are subject to financial covenants concerning decreases in net assets and the recognition of ordinary losses. If these covenants are breached and the company is required to repay its borrowings at the request of the lenders, this could affect the financial position of the group.」
Under the commitment line subject to financial covenants, the drawn balance at fiscal year-end reached the full ¥4 billion commitment, leaving no undrawn balance. Although no breach is reported, dependence on borrowings and exposure to the covenants have increased. - FY2025-H1WorsenedAnnual report
「Total commitment line ¥4,000 million ¥4,000 million Drawn balance ¥2,450 million ¥3,100 million Undrawn amount ¥1,550 million ¥900 million (Financial covenants) The commitment line agreement entered into by the company contains the financial covenants set out below.」
The total commitment line remains at ¥4 billion, but the drawn balance increased from ¥2.45 billion to ¥3.1 billion, while the undrawn balance decreased from ¥1.55 billion to ¥900 million. The financial covenants also remain in place. - FY2024-Q2MitigatedAnnual report
「Total commitment line ¥4,000 million Drawn balance ¥2,450 million ¥950 million Undrawn amount ¥1,550 million ¥3,050 million」
The total commitment line of ¥4 billion remains in place. The drawn balance decreased from ¥2.45 billion to ¥950 million, while the undrawn balance increased from ¥1.55 billion to ¥3.05 billion. The financial covenants remain in place. - FY2024-Q1MitigatedAnnual report
「Total commitment line ¥4,000 million Drawn balance ¥2,450 million ¥950 million Undrawn amount ¥1,550 million ¥3,050 million」
The total commitment line of ¥4 billion remains in place. The drawn balance decreased from ¥2.45 billion to ¥950 million, while the undrawn balance increased from ¥1.55 billion to ¥3.05 billion. The financial covenants remain in place. - FY2023-Q3Increase in drawn balance and decrease in undrawn balanceAnnual report
「Total commitment line ¥4,000 million Drawn balance ¥2,450 million Undrawn amount ¥1,550 million」
The ¥4 billion commitment line remains in place, but the drawn balance increased from ¥1.94 billion at the end of the previous consolidated fiscal year to ¥2.45 billion, leaving an undrawn balance of ¥1.55 billion. Financial covenants restricting the maintenance of net assets and the consecutive occurrence of ordinary losses also remain in place. - FY2022-Q2RestatedAnnual report
「Total commitment line ¥4,000 million Drawn balance ¥950 million Undrawn amount ¥3,050 million」
The company maintains a ¥4 billion commitment line, a drawn balance of ¥950 million and an undrawn amount of ¥3.05 billion. Financial covenants restricting the maintenance of net assets and the consecutive occurrence of ordinary losses also remain in place. - FY2022-Q1RestatedAnnual report
「To enable flexible financing, the company has entered into a commitment line agreement with its relationship banks, and the undrawn balance as of the end of the first quarter of the current consolidated fiscal period is as follows.」
The company maintains a ¥4 billion commitment line, a drawn balance of ¥950 million and an undrawn amount of ¥3.05 billion. Financial covenants restricting the maintenance of net assets and the consecutive occurrence of ordinary losses also remain in place. - FY2021RestatedAnnual report
「The company has entered into a ¥4 billion syndicated commitment line agreement with financial institutions to respond flexibly to funding needs arising from the payment of product deliveries and unforeseen financing requirements, thereby preparing for liquidity risk.」
The ¥4 billion commitment line remains in place, with the drawn balance at fiscal year-end standing at ¥950 million and the undrawn amount at ¥3.05 billion. Financial covenants restricting the maintenance of net assets and the consecutive occurrence of ordinary losses also remain in place. - FY2021-Q2RestatedAnnual report
「To enable flexible fund-raising, the Company has entered into a commitment line agreement with its relationship banks, and the undrawn balance at the end of the second quarter is as follows.」
The disclosure continues to include a ¥4 billion commitment line, a drawn balance of ¥950 million, an undrawn amount of ¥3.05 billion, and financial covenants restricting the maintenance of net assets and the consecutive occurrence of ordinary losses. - FY2020MitigatedAnnual report
「To prepare for liquidity risk, the company has entered into a commitment line agreement with financial institutions for a total amount of ¥4,000 million, enabling it to raise funds flexibly not only for payments related to the delivery of the aforementioned products but also for unexpected funding needs.」
The total commitment line decreased from ¥4.5 billion to ¥4 billion, and the drawn balance at fiscal year-end was ¥798 million. Ordinary income was positive, and the financial covenants were changed to require maintenance of net assets at 70% and prohibit ordinary losses for 2 consecutive periods. The risk itself continues to be disclosed. - FY2020-Q3Changes in the total commitment line and drawn balanceAnnual report
「Total commitment line ¥4,500 million Drawn balance ¥2,275 million Undrawn balance ¥2,225 million」
At the end of the third quarter, the total commitment line was ¥3 billion, the drawn balance was ¥798 million, and the undrawn balance was ¥2,202 million. Financial covenants requiring the maintenance of net assets and that ordinary income or loss not be negative also remained in place. - FY2020-Q2RestatedAnnual report
「Total commitment line ¥4,500 million Drawn balance ¥508 million Undrawn balance ¥3,992 million」
The ¥4.5 billion commitment line agreement and financial covenants requiring the maintenance of net assets and that ordinary income not be negative continue to be disclosed. The drawn balance at the end of the second quarter was ¥508 million, and the undrawn balance was ¥3,992 million. - FY2020-Q1RestatedAnnual report
「The commitment line agreement entered into by the Company is subject to the financial covenants set out below.」
The ¥4.5 billion commitment line agreement and financial covenants requiring the maintenance of net assets and that ordinary income not be negative continue to be disclosed. The drawn balance at the end of June was ¥890 million, and the undrawn balance was ¥3,610 million. - FY2019-Q3RestatedAnnual report
「The commitment line agreement entered into by the Company is subject to the financial covenants set out below.」
The ¥4.5 billion commitment line agreement and financial covenants requiring the maintenance of net assets and that ordinary income not be negative continue to be disclosed. The drawn balance at the end of December was ¥1,769 million, and the undrawn balance was ¥2,731 million. - FY2019-Q2RestatedAnnual report
「The commitment line agreement entered into by the Company is subject to the financial covenants set out below.」
The ¥4.5 billion commitment line agreement and financial covenants requiring the maintenance of net assets and that ordinary income not be negative continue to be disclosed. The drawn balance at the end of September was ¥1,945 million, and the undrawn balance was ¥2,555 million. - FY2019-Q1RestatedAnnual report
「The commitment line agreement entered into by the Company is subject to the financial covenants set out below.」
The ¥4.5 billion commitment line agreement and financial covenants requiring the maintenance of net assets and that ordinary income not be negative continue to be disclosed. - FY2018MitigatedAnnual report
「To prepare for liquidity risk, the Company entered into a commitment line agreement totaling ¥4.5 billion with financial institutions, enabling it to raise funds flexibly for the purchase costs associated with the aforementioned product deliveries and unexpected funding needs.」
The Company entered into a ¥4.5 billion commitment line agreement, and operating income and ordinary income were positive for the fiscal year. Although risks related to the agreement's financial covenants remain, liquidity and performance improved from the previous fiscal year. - FY2018-Q3RestatedAnnual report
「Regarding the financial covenants under the commitment line agreement with the principal financial institutions, the Company obtained written consent from all lenders during the three-month period ended 30 June not to demand acceleration of repayment, but repaid the full amount upon maturity. In addition, as announced on 12 October 2017, the Company entered into a new commitment line agreement totaling ¥3 billion with a 3-year term, thereby securing stable funds to operate the business during the fiscal year.」
The Company reaffirmed the full repayment of the previous commitment line described in the previous quarter and the securing of funds through a new ¥3 billion, 3-year agreement. Although circumstances raising substantial doubt about the going-concern assumption continued to be disclosed, the Company determined that no material uncertainty existed. - FY2018-Q2MitigatedAnnual report
「Regarding the financial covenants under the commitment line agreement with the principal financial institutions, the Company obtained written consent from all lenders during the three-month period ended 30 June not to demand acceleration of repayment, but repaid the full amount upon maturity. In addition, as announced on 12 October 2017, the Company entered into a new commitment line agreement totaling ¥3 billion with a 3-year term, thereby securing stable funds to operate the business during the fiscal year. As a result, the Company expects operating income, ordinary income, and net income attributable to owners of the parent to be positive at the end of the fiscal year and does not expect to breach the financial covenants under the commitment line agreement.」
Although circumstances raising substantial doubt about the going-concern assumption and the recognition of losses continued, the Company repaid the previous commitment line in full and secured funding through a new ¥3 billion, 3-year agreement. It also indicated expectations of full-year profitability and no breach of financial covenants. - FY2018-Q1Going-concern uncertainty continued; breach of financial covenants resolvedAnnual report
「As in the previous fiscal year, the Group recorded an operating loss, an ordinary loss, and a quarterly net loss attributable to owners of the parent for the three-month period ended 30 June. These circumstances indicate the existence of events or conditions that raise substantial doubt about the going-concern assumption. The financial covenants under the commitment line agreement breached in the previous fiscal year have now been remedied, as written consent was obtained from all lenders not to demand acceleration of repayment.」
The circumstances raising substantial doubt about the going-concern assumption continued due to the recognition of losses, while the Company explained that the financial covenant breach from the previous fiscal year had been resolved. - FY2017MaterialisedAnnual report
「The Group has material events and other circumstances related to the going-concern assumption because it recorded an operating loss of ¥3,232 million, an ordinary loss of ¥3,401 million, and a net loss attributable to owners of the parent of ¥2,738 million for the fiscal year, resulting in a breach of the financial covenants under commitment line agreements and other contracts with its principal financial institutions.」
The recognition of losses resulted in a breach of financial covenants and material events related to the going-concern assumption. However, the Company determined that no material uncertainty existed based on the implementation of countermeasures, sufficient cash on hand, and the written consent of all lenders not to demand acceleration of repayment.