Decision and Details
Board of DirectorsApplication for approval to extend the filing deadline for the annual securities report for the 35th fiscal year (fiscal year ending December 2025)
Additional time is required to assess the impact of the suspected embezzlement by the former CFO of funds related to advertising revenue receipts based on the investigation report of the Special Investigation Committee, finalize the accounting treatment policy, formulate an internal control improvement plan, undergo additional audits by the accounting auditor, finalize the filing documents and complete the Company's internal approval procedures.
We are considering recognizing as an allowance for doubtful accounts the portion of the unpaid difference determined to be uncollectible. The impact on the financial statements and disclosure documents, including those for prior fiscal years, is under review.
| Item | Details |
|---|---|
| Matter Covered | Application for approval to extend the filing deadline for the annual securities report for the 35th fiscal year (fiscal year ending December 2025) |
| Decision-Making Body | Board of Directors |
| Decision Date | 27 March 2026 (Board of Directors resolution); 31 March 2026 (submission of the application) |
| Implementation Date | Application to extend the filing deadline to 30 June 2026 (scheduled following approval) |
| Period Covered | 35th fiscal year (fiscal year ending December 2025) (1 January 2025 to 31 December 2025) |
| Amount | Amount that may not have been received by the Company, despite being payable to the Company: approximately ¥9 million to ¥13 million |
| Quantity / scale | Filing deadline: 31 March 2026 before the extension and 30 June 2026 after the extension. Workstreams: ① 1 April 2026 to 20 May 2026, ② 1 April 2026 to 30 June 2026, and ③ 16 June 2026 to 30 June 2026 |
| Impact on Business Performance | We are considering recognizing as an allowance for doubtful accounts the portion of the unpaid difference determined to be uncollectible. The impact on the financial statements and disclosure documents, including those for prior fiscal years, is under review. |
| Reason | Additional time is required to assess the impact of the suspected embezzlement by the former CFO of funds related to advertising revenue receipts based on the investigation report of the Special Investigation Committee, finalize the accounting treatment policy, formulate an internal control improvement plan, undergo additional audits by the accounting auditor, finalize the filing documents and complete the Company's internal approval procedures. |
| Governing Rule | Article 15-2, paragraph 1 of the Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. |
| Related previous disclosures | Disclosure dated 30 January 2026 (title: Not disclosed) |
| Future plans | The Company plans to disclose the contents of the Special Investigation Committee's investigation report and its response based on the report on 3 April 2026. The outcome of the application for approval will be announced promptly once known. If approved, the Company will take steps to enable it to file the annual securities report by 30 June 2026. |
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Regarding the suspected embezzlement by the former CFO of funds related to advertising revenue receipts, it is necessary, based on the investigation report of the Special Investigation Committee, to determine the amount of the impact on accounting treatment and disclosure documents, including prior fiscal years, finalize the accounting treatment policy, evaluate internal controls, review the closing procedures and undergo additional audits by the accounting auditor. As it is difficult to complete the audit and file the report by the statutory filing deadline, the extension is required.