Filing of a Corrected Internal Control Report for the Fiscal Year Ended December 2024
baby calendar Inc. (filing company)
Advertising revenue receipts (including YouTube and Google AdSense) and petty cash
Concentration of authority and information in the former director and CFO, deficiencies in the verification framework for advertising revenue receipts and petty cash management, insufficient checks and balances provided by the accounting, internal audit and risk management functions, and inadequate coordination among the three types of audit
Company response
On 13 February 2026, the Company established a Special Investigation Committee comprising external attorneys and certified public accountants.
Strengthening coordination among the three types of audit, clarifying the three lines of defense, reviewing the segregation of duties and authorities, strengthening approval and verification procedures for changes to collection accounts and related matters, implementing three-way reconciliations for advertising revenue, publicizing the internal whistleblowing system, and providing compliance training for officers and employees, among other measures
The former director and CFO was found to have embezzled sales proceeds and cash. Details of any reduction in compensation, resignation or disciplinary action: Not disclosed
Related procedures
Investigation by the Special Investigation Committee
Director-General of the Kanto Local Finance Bureau (recipient of the corrected report)
Fiscal year ended December 2024 (from 1 January 2024 to 31 December 2024)
The Company will continue implementing the measures described above, enhance the effectiveness of its internal controls over financial reporting, and work to prevent recurrence and restore trust.
| Item | Details |
|---|---|
| Event name | Filing of a Corrected Internal Control Report for the Fiscal Year Ended December 2024 |
| Date of occurrence | 30 June 2026 (the date on which the corrected Internal Control Report for the fiscal year ended December 2024 was filed with the Director-General of the Kanto Local Finance Bureau) |
| Date recognized / date notice received | The Company disclosed that it had publicly announced suspicions of misconduct as of 30 January 2026 and received the Special Investigation Committee’s investigation report as of 31 March 2026. |
| Subject Entity | baby calendar Inc. (filing company) |
| Target Locations / Products | Advertising revenue receipts (including YouTube and Google AdSense) and petty cash |
| Cause | Concentration of authority and information in the former director and CFO, deficiencies in the verification framework for advertising revenue receipts and petty cash management, insufficient checks and balances provided by the accounting, internal audit and risk management functions, and inadequate coordination among the three types of audit |
| Accounting period in which recognized | Fiscal year ended December 2024 (from 1 January 2024 to 31 December 2024) |
| Type of litigation or proceeding | Investigation by the Special Investigation Committee |
| Court or authority | Director-General of the Kanto Local Finance Bureau (recipient of the corrected report) |
| Investigation structure | On 13 February 2026, the Company established a Special Investigation Committee comprising external attorneys and certified public accountants. |
| Measures to prevent recurrence | Strengthening coordination among the three types of audit, clarifying the three lines of defense, reviewing the segregation of duties and authorities, strengthening approval and verification procedures for changes to collection accounts and related matters, implementing three-way reconciliations for advertising revenue, publicizing the internal whistleblowing system, and providing compliance training for officers and employees, among other measures |
| Directors' and officers' liability | The former director and CFO was found to have embezzled sales proceeds and cash. Details of any reduction in compensation, resignation or disciplinary action: Not disclosed |
| Outlook | The Company will continue implementing the measures described above, enhance the effectiveness of its internal controls over financial reporting, and work to prevent recurrence and restore trust. |
Items this document does not state (12)
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 Special Investigation Committee confirmed that the former director and CFO had embezzled sales proceeds and cash, and the Company therefore decided to revise its accounting treatment for prior fiscal years based on the audit procedures performed by the accounting auditor and other considerations. The Company recognizes the concentration of authority and information in the former director and CFO, deficiencies in the verification framework for advertising revenue receipts and petty cash management, insufficient checks and balances provided by the accounting, internal audit and risk management functions, and inadequate coordination among the three types of audit as the underlying causes.