Decision and Details
Filing and acceptance of a criminal complaint against a former director of the Company
The Special Investigation Committee’s investigation report determined that the serious compliance violation involving the fraudulent embezzlement of the Company’s accounts receivable and cash had occurred amid serious deficiencies in the control environment. The Company therefore filed the complaint to seek a rigorous investigation and appropriate action.
The Company has already completed the disclosure of amended reports for prior-year securities reports and other filings reflecting the impact of this matter, corrections to prior-year earnings releases and other disclosures, and the earnings release for the fiscal year ended December 2025 and the first quarter of the fiscal year ending December 2026.
| Item | Details |
|---|---|
| Matter Covered | Filing and acceptance of a criminal complaint against a former director of the Company |
| Implementation Date | 20 July 2026 (date the criminal complaint was accepted; actual) |
| Amount | Total amount of advertising revenue fraudulently embezzled: ¥9,263,000 |
| Impact on Business Performance | The Company has already completed the disclosure of amended reports for prior-year securities reports and other filings reflecting the impact of this matter, corrections to prior-year earnings releases and other disclosures, and the earnings release for the fiscal year ended December 2025 and the first quarter of the fiscal year ending December 2026. |
| Reason | The Special Investigation Committee’s investigation report determined that the serious compliance violation involving the fraudulent embezzlement of the Company’s accounts receivable and cash had occurred amid serious deficiencies in the control environment. The Company therefore filed the complaint to seek a rigorous investigation and appropriate action. |
| Governing Rule | Embezzlement in the course of business |
| Related previous disclosures | “Special Investigation Committee Investigation Report” dated 31 March 2026; “Measures to Prevent Recurrence and Internal Control Improvement Plan” dated 16 April 2026 |
| Future plans | The Company will continue to pursue recovery of outstanding amounts related to advertising revenue and other amounts based on the notarized deed of acknowledgment of debt and repayment agreement. The Company will make every effort to fundamentally renew its management control framework and rebuild its governance. |
Items this document does not state (4)
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’s investigation report determined that the fraudulent embezzlement of accounts receivable and cash had occurred amid serious deficiencies in the control environment. The Company therefore filed the complaint to seek a rigorous investigation and appropriate action.