Differences with the audit firm over revenue recognition for リージョンプライム and deferral of recognition

「For the elderly-care facility opening support consulting service Region Prime, the company decided that it could not recognise revenue during the current consolidated fiscal year despite its view that the facility opening in Nishi Ward, Fukuoka City had been decided, the services with a total contract value of approximately ¥200 million had been completed, the consulting client had recognised completion of the services, and the receivable had been established. There was a difference between the Group and the accounting auditor regarding the interpretation of the revenue recognition criteria, specifically satisfaction of the performance obligation. The contract-based project is still in progress, and discussions with the accounting auditor continue toward an agreement.」

「The company had expected to recognise approximately ¥200 million in revenue and operating profit from the large consulting project Region Prime, for which the contract was signed in September 2025. However, differences with the audit firm regarding revenue recognition mean that it will not be recognised in the second quarter of the fiscal year ending March 2026. The company expects to recognise it in the second half of the fiscal year ending March 2026.」