Circumstances Raising Significant Doubt About the Going Concern Assumption
First written in FY2022. 7 of 12 entries say "Mitigated", first in FY2023-Q1. Latest entry: 2026-11-13.
The whole theme swung hardest in 2025: 30 of 61 companies on the "Worse" side.
34 other companies' latest entry also says "Mitigated".
- FY2026-H1WorsenedAnnual report
「The number of paid restaurant-member establishments under the fixed and usage-based plans declined during the interim accounting period compared with the end of the previous fiscal year. The number of establishments under the fixed restaurant-member plan, which has a higher unit price, also declined during the interim accounting period, and the number of restaurant-member establishments had yet to enter a phase of strong growth. As a result, revenue for the interim accounting period decreased by 6.2% compared with the previous interim accounting period. Although the Company recorded operating income of ¥20 million for the interim accounting period, this was still insufficient, and it determined that conditions existed that raised substantial doubt about its ability to continue as a going concern.」
Although the Company recorded operating income of ¥20 million, the number of paid restaurant members and establishments under the fixed plan declined, and revenue decreased by 6.2% year on year. Conditions raising substantial doubt about the Company's ability to continue as a going concern continued. - FY2025MitigatedAnnual report
「Although the Company recorded operating income of ¥19 million in the fiscal year, it determined that conditions existed that raised substantial doubt about its ability to continue as a going concern, given that it had continued to record operating losses through the previous fiscal year and operating cash flow had remained negative. However, based on the measures described above, it determined that no material uncertainty existed regarding its ability to continue as a going concern.」
Although improvements included full-year operating income of ¥19 million, an increase in the number of paid restaurant-member establishments and a decline in the sales ratio of high-cancellation-rate agencies to 0.7%, the Company stated that significant events continued to exist because of negative operating cash flow and operating losses in prior fiscal years. - FY2025-H1MitigatedAnnual report
「Although the Company recorded operating income of ¥19 million during the interim accounting period, it determined that conditions existed that raised substantial doubt about its ability to continue as a going concern, given that it had continued to record operating losses through the previous fiscal year.」
Although conditions raising substantial doubt about the Company's ability to continue as a going concern remained, the Company recorded operating income of ¥19 million during the interim accounting period and the number of paid establishments also increased. It maintained its determination that no material uncertainty existed, aiming to achieve full-year profitability in the current fiscal year through a higher sales mix of higher-priced products, expansion of its sales organization and maintenance of its cost structure. - FY2024-Q2AdvancedAnnual report
「The specified agency described above is being phased out, and its sales ratio within restaurant support services has already declined to approximately 4%. In addition, sales from restaurant support services excluding the specified agency have continued to show a net increase, while measures to improve LTV (*), including increasing the sales mix of higher-priced products, are continuing. Signs of a net increase in restaurant support services sales have begun to emerge. The Company will continue developing new agencies and improving LTV by increasing the sales mix of higher-priced products to promote growth in restaurant support services sales excluding the specified agency, with the aim of achieving a net increase in sales during the fiscal year ending September 2024.」
The sales ratio of the specified agency, which had a high cancellation rate, declined from just under 10% in the previous fiscal year to approximately 4%. The Company indicated a net increase in sales excluding the agency and a higher sales mix of higher-priced products, and maintained its target of achieving a net increase in sales during the fiscal year ending September 2024. - FY2024-Q1MitigatedAnnual report
「The Company's revenue had continued to decline, but turned to a slight increase during the cumulative first quarter. However, it continued to record operating and net losses, and conditions existed that raised substantial doubt about its ability to continue as a going concern.」
Although the conditions raising substantial doubt about the Company's ability to continue as a going concern and the recording of losses continued, revenue turned to a slight increase in the first quarter. The Company continued selling high-LTV products, developing new agencies and reducing fixed costs, and maintained its determination that no material uncertainty existed. - FY2023MitigatedAnnual report
「The sales ratio of the agency in question within FRM has already declined to just under 10%. In addition, FRM sales excluding the specified agency increased by approximately 15% year on year in the fourth quarter of the fiscal year, and measures to improve LTV, including increasing the sales mix of higher-priced products, are continuing. Signs of a net increase in FRM sales have begun to emerge. The Company will continue developing new agencies and improving LTV by increasing the sales mix of higher-priced products to promote growth in FRM sales excluding the specified agency, with the aim of achieving a net increase in sales during the fiscal year ending September 2024.」
Although conditions raising substantial doubt about the Company's ability to continue as a going concern remained, it indicated a reduced dependence on the specified agency, higher sales excluding that agency, LTV improvement measures and a target for a net increase in sales during the fiscal year ending September 2024, and maintained its determination that no material uncertainty existed. - FY2023-Q3WorsenedAnnual report
「The Company's revenue continued to decline as the number of paid establishments under the fixed plan decreased, and it continued to record operating and net losses as a result. Accordingly, conditions existed that raised substantial doubt about its ability to continue as a going concern.」
The number of paid establishments under the fixed plan declined to 5,676, and conditions raising substantial doubt about the Company's ability to continue as a going concern continued as revenue declined and operating and net losses continued to be recorded. However, the Company maintained its determination that no material uncertainty existed in light of funding through the capital and business alliance and other measures. - FY2023-Q2WorsenedAnnual report
「The Company's revenue continued to decline as the number of paid establishments under the fixed plan decreased, and it continued to record operating and net losses as a result. Accordingly, conditions existed that raised substantial doubt about its ability to continue as a going concern. However, based on the measures described above, the Company determined that no material uncertainty existed regarding its ability to continue as a going concern.」
Conditions raising substantial doubt about the Company's ability to continue as a going concern continued, and the number of paid establishments under the fixed plan declined to 6,186. However, the Company maintained its determination that no material uncertainty existed based on measures including sales of high-LTV products, a review of sales channels, cost reductions and financing. - FY2023-Q1MitigatedAnnual report
「The Company's revenue continued to decline as the number of paid establishments under the fixed plan decreased, and it continued to record operating and net losses as a result. Accordingly, conditions existed that raised substantial doubt about its ability to continue as a going concern. However, based on the measures described above, the Company determined that no material uncertainty existed regarding its ability to continue as a going concern.」
Although the conditions raising substantial doubt continued as the number of paid establishments declined and losses were recorded, the Company stated that it had determined that no material uncertainty existed in light of its product strategy, cost reforms and ¥685 million in funding. - FY2022First statedAnnual report
「In addition, the Company's net assets stood at ¥304 million at the end of the fiscal year ended September 2022. Because early capital reinforcement was necessary to improve its financial position while restoring business performance, conditions existed that raised substantial doubt about the Company's ability to continue as a going concern.」
Against a backdrop of three consecutive years of net losses, net assets of ¥304 million and 6,921 paid establishments under the fixed plan, the Company first disclosed separately the conditions raising substantial doubt about its ability to continue as a going concern. It determined that no material uncertainty existed as a result of the private placement and other measures.