Notice Regarding the Recording of an Operating Loss, Non-operating Income, Non-operating Expenses and Extraordinary Loss
株式会社Birdman (filing company)
The kaihan Cup business for which kaihan co.,Ltd. is the customer, short-term loans to borrowers, and litigation with 合同会社revive
The Company made a conservative assessment of costs related to the kaihan Cup business, although payment was not yet due. It reviewed the collectibility of short-term loans based on the circumstances of the borrowers and other factors. Based on the contents of the litigation judgment, it reasonably estimated the potential losses to be borne by the Company.
Related procedures
An action filed by the Company seeking the return of unjust enrichment and other claims, and a counterclaim by 合同会社revive seeking payment of unpaid fees under a financial advisory agreement
Tokyo District Court
Main action: 株式会社Birdman; counterclaim: 合同会社revive
Main action: 合同会社revive; counterclaim: 株式会社Birdman
A claim by 合同会社revive for ¥33.000 million in unpaid fees and delay damages. The judgment ordered payment of ¥33.000 million and delay damages thereon.
¥137.190 million provision for loss on orders (cost of sales); ¥7.725 million in interest and dividend income from short-term loans to borrowers, ¥22 thousand in refund adjustment interest, and ¥167 thousand in other income (non-operating income); ¥6.596 million in interest paid on bank borrowings and lease obligations, ¥35 thousand in equity-method investment losses, ¥30.703 million in expenses related to the issuance of new shares, ¥312.776 million provision for doubtful accounts, and ¥1.379 million in other expenses (non-operating expenses); and ¥33.875 million provision for litigation losses (extraordinary loss). The provision for doubtful accounts totaled ¥620.792 million for the consolidated fiscal year.
The fourth quarter of the fiscal year ending June 2026 (1 April 2026 to 30 June 2026). The ¥620.792 million provision for doubtful accounts is the total for the fiscal year ending June 2026.
Reflected in the “Earnings Release for the Fiscal Year Ended June 2026 [Japanese GAAP] (Consolidated)” announced today.
Short-term loans: ¥609.999 million. Borrower: Not disclosed.
Company response
The Company held discussions with its accounting auditor. Establishment of a third-party committee or special investigation committee: Not disclosed.
The Company entered into a memorandum of understanding with the borrower concerning the short-term loans and extended the repayment date to 30 September 2026. The Company filed an appeal on 26 June 2026. For details of the litigation, see the “Notice Regarding the Judgment in the Litigation” announced today.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recording of an Operating Loss, Non-operating Income, Non-operating Expenses and Extraordinary Loss |
| Date of occurrence | The fourth quarter of the fiscal year ending June 2026 (1 April 2026 to 30 June 2026). The judgment was handed down on 11 June 2026, and an appeal was filed on 26 June 2026. |
| Subject Entity | 株式会社Birdman (filing company) |
| Target Locations / Products | The kaihan Cup business for which kaihan co.,Ltd. is the customer, short-term loans to borrowers, and litigation with 合同会社revive |
| Cause | The Company made a conservative assessment of costs related to the kaihan Cup business, although payment was not yet due. It reviewed the collectibility of short-term loans based on the circumstances of the borrowers and other factors. Based on the contents of the litigation judgment, it reasonably estimated the potential losses to be borne by the Company. |
| Amount of Impact on Business Performance | ¥137.190 million provision for loss on orders (cost of sales); ¥7.725 million in interest and dividend income from short-term loans to borrowers, ¥22 thousand in refund adjustment interest, and ¥167 thousand in other income (non-operating income); ¥6.596 million in interest paid on bank borrowings and lease obligations, ¥35 thousand in equity-method investment losses, ¥30.703 million in expenses related to the issuance of new shares, ¥312.776 million provision for doubtful accounts, and ¥1.379 million in other expenses (non-operating expenses); and ¥33.875 million provision for litigation losses (extraordinary loss). The provision for doubtful accounts totaled ¥620.792 million for the consolidated fiscal year. |
| Accounting period in which recognized | The fourth quarter of the fiscal year ending June 2026 (1 April 2026 to 30 June 2026). The ¥620.792 million provision for doubtful accounts is the total for the fiscal year ending June 2026. |
| Impact on Earnings Forecast | Reflected in the “Earnings Release for the Fiscal Year Ended June 2026 [Japanese GAAP] (Consolidated)” announced today. |
| Type of litigation or proceeding | An action filed by the Company seeking the return of unjust enrichment and other claims, and a counterclaim by 合同会社revive seeking payment of unpaid fees under a financial advisory agreement |
| Court or authority | Tokyo District Court |
| Plaintiff | Main action: 株式会社Birdman; counterclaim: 合同会社revive |
| Defendant | Main action: 合同会社revive; counterclaim: 株式会社Birdman |
| Date of filing / date of action | Date judgment was handed down: 11 June 2026. Date of appeal: 26 June 2026. Filing date: Not disclosed. |
| Claim amount / surcharge amount | A claim by 合同会社revive for ¥33.000 million in unpaid fees and delay damages. The judgment ordered payment of ¥33.000 million and delay damages thereon. |
| Amount of receivables at risk of non-collection or delayed collection | Short-term loans: ¥609.999 million. Borrower: Not disclosed. |
| Investigation structure | The Company held discussions with its accounting auditor. Establishment of a third-party committee or special investigation committee: Not disclosed. |
| Outlook | The Company entered into a memorandum of understanding with the borrower concerning the short-term loans and extended the repayment date to 30 September 2026. The Company filed an appeal on 26 June 2026. For details of the litigation, see the “Notice Regarding the Judgment in the Litigation” announced today. |
Items this document does not state (8)
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 provision for loss on orders was recognized because, although payment for costs related to the kaihan Cup business was not yet due, the Company made a conservative assessment after discussions with its accounting auditor. The provision for doubtful accounts was recognized after reviewing the collectibility of short-term loans based on the circumstances of the borrowers and other factors. The provision for litigation losses was recognized after reasonably estimating the potential losses to be borne by the Company based on the contents of the judgment.