Publication of the Public Version of the Special Investigation Committee's Investigation Report and Future Actions
baby calendar Inc.
Advertising revenue relating to the 3 channels concerned (α channel, β channel and γ channel) and petty cash at the Company’s head office
Multiple deficiencies in internal controls, including the concentration of authority and information in the former CFO and the failure of the accounting, internal audit and risk management systems to function adequately
The total difference between the amount of advertising revenue received from Google and the amount received by the Company from the former CFO was ¥10,559,625. Of this amount, ¥9,263,000 is strongly suspected to have been embezzled by the former CFO. The amounts affecting accounting treatment and disclosure documents are still under review
The impact on accounting treatment, including for prior fiscal years, is under review and has not been finalized
Accounts receivable relating to advertising revenue for the β channel in July 2023 remain outstanding, but the amount is Not disclosed
Company response
Special Investigation Committee, established on 4 February 2026. The chair is Kamba Masatoshi (神庭 雅俊), and the members are Yamada Yukihiro (山田 行洋) and Katayama Tomohiro (片山 智裕). Kaneuchi Isamu (金内 勇) is assisting with the investigation. AI Data Co., Ltd. is also assisting with the digital forensics investigation
Strengthening the accounting structure, strengthening the internal audit function, strengthening monitoring by the audit & supervisory board members, strengthening the segregation of authority and check-and-balance functions, and reviewing and rigorously implementing internal controls
Related procedures
Investigation by the Special Investigation Committee
The Company will continue reviewing the amounts affecting accounting treatment and disclosure documents, including for prior fiscal years, finalizing its accounting policies, and formulating measures to prevent recurrence and an internal control improvement plan. Following additional audit procedures, it plans to file its Securities Report by 30 June 2026. Matters concerning the business plan and growth potential will be disclosed promptly after the earnings disclosure
If any matter requiring disclosure arises, the Company will notify the public promptly. It also plans to separately disclose the specific details of its measures to prevent recurrence and internal control improvement plan
| Item | Details |
|---|---|
| Event name | Publication of the Public Version of the Special Investigation Committee's Investigation Report and Future Actions |
| Date of occurrence | 23 January 2026 (the date on which the discrepancy between the book balance and actual balance of accounts receivable from Google was confirmed) |
| Date recognized / date notice received | 23 January 2026 (the date on which the Company confirmed the discrepancy) |
| Subject Entity | baby calendar Inc. |
| Target Locations / Products | Advertising revenue relating to the 3 channels concerned (α channel, β channel and γ channel) and petty cash at the Company’s head office |
| Cause | Multiple deficiencies in internal controls, including the concentration of authority and information in the former CFO and the failure of the accounting, internal audit and risk management systems to function adequately |
| Amount of Impact on Business Performance | The total difference between the amount of advertising revenue received from Google and the amount received by the Company from the former CFO was ¥10,559,625. Of this amount, ¥9,263,000 is strongly suspected to have been embezzled by the former CFO. The amounts affecting accounting treatment and disclosure documents are still under review |
| Accounting period in which recognized | The impact on accounting treatment, including for prior fiscal years, is under review and has not been finalized |
| Type of litigation or proceeding | Investigation by the Special Investigation Committee |
| Amount of receivables at risk of non-collection or delayed collection | Accounts receivable relating to advertising revenue for the β channel in July 2023 remain outstanding, but the amount is Not disclosed |
| Investigation structure | Special Investigation Committee, established on 4 February 2026. The chair is Kamba Masatoshi (神庭 雅俊), and the members are Yamada Yukihiro (山田 行洋) and Katayama Tomohiro (片山 智裕). Kaneuchi Isamu (金内 勇) is assisting with the investigation. AI Data Co., Ltd. is also assisting with the digital forensics investigation |
| Measures to prevent recurrence | Strengthening the accounting structure, strengthening the internal audit function, strengthening monitoring by the audit & supervisory board members, strengthening the segregation of authority and check-and-balance functions, and reviewing and rigorously implementing internal controls |
| Outlook | The Company will continue reviewing the amounts affecting accounting treatment and disclosure documents, including for prior fiscal years, finalizing its accounting policies, and formulating measures to prevent recurrence and an internal control improvement plan. Following additional audit procedures, it plans to file its Securities Report by 30 June 2026. Matters concerning the business plan and growth potential will be disclosed promptly after the earnings disclosure |
| Planned follow-up disclosure | If any matter requiring disclosure arises, the Company will notify the public promptly. It also plans to separately disclose the specific details of its measures to prevent recurrence and internal control improvement plan |
Items this document does not state (11)
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.Multiple deficiencies in internal controls, including the concentration of authority and information in the former CFO and the failure of the accounting, internal audit and risk management systems to function adequately.