Material Events Related to the Going-Concern Assumption and Breach of Financial Covenants
First written in FY2018. 11 of 27 entries say "Restated". Latest entry: 2026-08-06.
The whole theme swung hardest in 2022: 4 of 13 companies on the "Worse" side.
7 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「(Matters Related to the Going Concern Assumption) There are no applicable matters.」
There continues to be no matter to report in the note regarding the going-concern assumption. - FY2025-H1MitigatedAnnual report
「(Matters Related to the Going Concern Assumption) There are no applicable matters.」
The note regarding the going concern assumption states that there are no applicable matters, and the current interim consolidated accounting period contains no disclosure of the significant events reported through the previous fiscal year. This filing provides no individual explanation of the financial covenant status. - FY2024-Q3MitigatedAnnual report
「Through measures including regularly introducing new menu items, strengthening efforts to attract customers through digital marketing, improving customer satisfaction by enhancing QSC at all stores, reducing losses by closing unprofitable stores, and promoting low-cost operations through expense controls, the company recorded an operating profit during the third quarter consolidated accounting period, following an operating profit in the second quarter consolidated accounting period. In light of these circumstances, the company determines that no material uncertainty exists regarding the going concern assumption.」
Although the significant events caused by operating losses and excess current liabilities have continued, quarterly operating profits have also continued. After presenting new menu items, digital marketing, QSC improvements, the closure of unprofitable stores and expense controls as measures, the company determines that no material uncertainty exists. - FY2024-Q2MitigatedAnnual report
「In response to these circumstances, the company conducted a third-party allotment of shares to strengthen its equity capital.」
Although operating losses continue and current liabilities still exceed current assets, the company strengthened its equity capital through a third-party allotment of shares and, together with measures to eliminate operating losses, determines that no material uncertainty exists. - FY2024-Q1WorsenedAnnual report
「As a result, operating losses continued and, as of the end of the first quarter consolidated accounting period, the company was in breach of the financial covenants attached to its syndicated loan agreement with financial institutions. In addition, current liabilities of ¥6,883 million substantially exceeded current assets of ¥2,274 million at the end of the first quarter consolidated accounting period, creating circumstances that raise significant doubt about the going concern assumption.」
The company newly disclosed continued operating losses, a breach of the financial covenants, and current liabilities substantially exceeding current assets. Meanwhile, it determines that no material uncertainty exists based on exemptions from application of the covenants granted by financial institutions and other measures. - FY2023WorsenedAnnual report
「In addition, rising personnel-related costs due to labor shortages and higher store operating costs, including raw materials, utilities and logistics, resulted in continued operating losses. The company also recorded a net loss attributable to owners of the parent for the consolidated fiscal year, creating circumstances that raise significant doubt about the going concern assumption.」
Operating losses continued due to labor shortages and higher costs, and the company also recorded a full-year net loss attributable to owners of the parent. Accordingly, the significant events have continued. - FY2023-Q3WorsenedAnnual report
「After the lifting of the quasi-emergency measures to prevent the spread of disease in March 2022, the Group's business performance was recovering. However, the sharp increase in infections with COVID-19 variants from July, followed by the eighth wave of infections from late October onward, again strengthened the tendency to refrain from eating out, causing the impact on business performance to last longer than expected. In addition, labor shortages in the food-service industry forced some stores to shorten their operating hours or close temporarily.」
The deterioration in business performance and the significant events relating to the going concern assumption have been prolonged by the eighth wave of infections, people refraining from eating out, and shortened operating hours and store closures caused by labor shortages. Meanwhile, the financial institutions exempted the company from applying the financial covenants, and the company determines that no material uncertainty exists. - FY2023-Q2WorsenedAnnual report
「However, the sharp increase in infections with COVID-19 variants from July strengthened the tendency to refrain from eating out again, causing the impact on business performance to last longer than expected. Sales have been recovering since infections peaked in August, but rising store operating costs, including raw materials, utilities and personnel expenses, resulted in a continued operating loss during the second quarter consolidated accounting period. The company expects to record a net loss for the consolidated fiscal year.」
The sharp increase in infections with COVID-19 variants again strengthened the tendency to refrain from eating out, prolonging the impact of the pandemic on business performance beyond expectations. The company discloses continued operating losses, the prospect of a full-year net loss and the possibility of breaching the financial covenants. It also states that no material uncertainty exists. - FY2023-Q1RestatedAnnual report
「Since the spread of COVID-19 from February 2020, the Group's net sales have declined under the impact of changes in the business environment and lifestyles caused by restrictions on the movement of people. During the first quarter consolidated accounting period, net sales remained broadly flat year on year, while the Group continued to record an operating loss, creating circumstances that raise significant doubt about the going concern assumption. In response, the Group plans to eliminate its operating loss by expanding product offerings other than for eat-in consumption, revising its standard menu, implementing price revisions and reducing fixed costs. As of 31 March 2022, it had also secured sufficient working capital through commitment line agreements totaling ¥4 billion, and therefore determines that no material uncertainty exists regarding the going concern assumption.」
The company continues to disclose a situation raising significant doubt about the going concern assumption due to the decline in sales and continued operating losses caused by the COVID-19 pandemic. Meanwhile, it continues to determine that no material uncertainty exists based on expanded product offerings, menu revisions, price revisions, fixed-cost reductions and commitment lines totaling ¥4 billion. - FY2022Amendment of Financial Covenant TermsAnnual report
「From the fiscal year ending March 2022 onward, the amount of consolidated net assets on the consolidated balance sheet at the end of each fiscal year must be maintained at no less than 70% of the amount of consolidated net assets on the consolidated balance sheet at the end of the fiscal year ended March 2021.」
With respect to the financial covenants, the net asset maintenance threshold is set at no less than 70% of the level at the end of the fiscal year ended March 2021, and from the fiscal year ending March 2022 onward, the company must not record a loss for the fiscal year. - FY2022RestatedAnnual report
「Since the spread of COVID-19 from February 2020, the Group's net sales have declined under the impact of states of emergency and other measures. During the consolidated fiscal year, net sales remained broadly flat year on year, while the Group continued to record an operating loss, creating circumstances that raise significant doubt about the going concern assumption.」
The company continued to disclose during the fiscal year a situation raising significant doubt about the going concern assumption. Meanwhile, it determines that no material uncertainty exists based on a ¥4 billion commitment line and other measures. - FY2022-Q3RestatedAnnual report
「Since the spread of COVID-19 from February 2020, the Group's net sales have declined under the impact of states of emergency and other measures. During the third quarter consolidated accounting period, net sales remained broadly flat year on year, while the Group continued to record an operating loss, creating circumstances that raise significant doubt about the going concern assumption.」
The company continues to disclose a situation raising significant doubt about the going concern assumption due to declining sales and continued operating losses. Meanwhile, it continues to determine that no material uncertainty exists based on measures including offering products other than for eat-in consumption, new businesses, fixed-cost reductions and commitment lines. - FY2022-Q1RestatedAnnual report
「Although net sales increased year on year during the first quarter consolidated cumulative period, the company continued to record an operating loss, and circumstances exist that raise significant doubt about the going concern assumption.」
Despite higher sales and a narrower loss, the company continues to disclose a situation raising significant doubt about the going concern assumption because operating losses have continued. It also continues to determine that no material uncertainty exists, based on commitment lines and other measures. - FY2021MaterialisedAnnual report
「In response to two states of emergency declared during the consolidated fiscal year following the spread of COVID-19 from February 2020, the Group temporarily closed stores and shortened operating hours. As a result, net sales declined substantially and the Group recorded an operating loss, creating circumstances that raise significant doubt about the going concern assumption.」
The situation raising significant doubt about the going concern assumption continued during the fiscal year due to store closures, shortened operating hours and operating losses caused by the COVID-19 pandemic. The company states that the funding issue has been resolved through commitment lines totaling ¥4.7 billion. - FY2021-Q3MitigatedAnnual report
「As of 13 January 2021, the company had obtained written consent from the relevant financial institutions that the financial covenants would not be applied for the consolidated fiscal year. Since this enabled it to secure sufficient working capital, it determines that the funding issue has been resolved. In light of these circumstances, the company determines that no material uncertainty exists regarding the going concern assumption.」
Although the decline in sales and the possibility of breaching the financial covenants are disclosed, the financial institutions provided written consent not to apply the covenants for the relevant fiscal year. The company therefore determines that the funding issue and material uncertainty regarding the going concern assumption have been resolved. - FY2021-Q2WorsenedAnnual report
「Although sales have recovered to a level approximately 20% below the same month of the previous year, the company expects to record a net loss for the fiscal year due to the substantial decline in net sales. As a result, during the consolidated fiscal year, the company may breach the financial covenants attached to its syndicated loan agreement with financial institutions, and circumstances exist that raise significant doubt about the going concern assumption.」
Sales remained approximately 20% below the same month of the previous year, again indicating the prospect of a full-year net loss and the possibility of breaching the financial covenants. Meanwhile, the company is pursuing measures including offering products other than for eat-in consumption, new businesses, fixed-cost reductions and discussions with financial institutions, and determines that no material uncertainty exists. - FY2021-Q1RestatedAnnual report
「Accordingly, although circumstances exist that raise significant doubt about the going concern assumption, we have worked to reduce costs, including takeaway sales of boxed meals and other products and personnel expenses. In addition, by entering into a new syndicated loan (commitment line) agreement with our financial institutions in June 2020, we secured sufficient working capital and therefore determine that the funding issue has been resolved.」
While continuing to disclose a situation involving significant doubt against the backdrop of the decline in sales caused by COVID-19, the company determines that the funding issue has been resolved through takeaway sales, cost reductions and a new commitment line. - FY2020MaterialisedAnnual report
「Accordingly, although circumstances exist that raise significant doubt about the going concern assumption, we have worked to reduce costs, including takeaway sales of boxed meals and other products and personnel expenses. In addition, by entering into a new syndicated loan (commitment line) agreement with our financial institutions in June 2020, we secured sufficient working capital and therefore determine that the funding issue has been resolved.」
A situation raising significant doubt about the going concern assumption recurred because of the decline in sales caused by COVID-19 and concerns over insufficient funds. However, the company states that the funding issue has been resolved through takeaway sales, cost reductions and a ¥3 billion new commitment line. - FY2020-Q3RestatedAnnual report
「Not applicable.」
The company stated in the third quarter that no event or condition existed that could raise substantial doubt about the going concern assumption. - FY2020-Q2RestatedAnnual report
「Not applicable.」
The company stated in the second quarter that no event or condition existed that could raise substantial doubt about the going concern assumption. - FY2020-Q1RestatedAnnual report
「There are no material events or other matters.」
The company again explicitly stated in the first quarter that it considered no material events or other matters related to the going concern assumption to exist. - FY2019-Q3RestatedAnnual report
「Based on these circumstances, the company determined that no event or condition currently existed that could raise substantial doubt about the going concern assumption and removed the disclosure concerning material events and other matters related to the going concern assumption.」
For the material events and other matters related to the going concern assumption that the company determined had been resolved in the second quarter, it confirmed in the third quarter that it still considered them not to exist. - FY2019-Q2DroppedAnnual report
「Based on these circumstances, the company determined that no event or condition currently existed that could raise substantial doubt about the going concern assumption and removed the disclosure concerning material events and other matters related to the going concern assumption.」
Following two consecutive quarters of operating profit and quarterly net profit and the resolution of the financial covenant breach, the company removed the disclosure concerning material events and other matters related to the going concern assumption. - FY2019-Q1MitigatedAnnual report
「For the first quarter of the current consolidated cumulative period, the company recorded operating profit of ¥16 million, ordinary profit of ¥6 million and quarterly net profit attributable to owners of the parent of ¥27 million, indicating an improving earnings trend.」
Although circumstances raising substantial doubt about the going concern assumption remained, the company returned to profitability in the first quarter and earnings began to improve. In addition, all lenders agreed not to demand acceleration based on the financial covenant breach, reducing the related risk. - FY2018First statedAnnual report
「As of the end of the fiscal year, the company reported an operating loss of ¥72 million due to lower same-store sales than in the previous fiscal year, reflecting the impact of food-safety and security issues and adverse weather conditions, as well as higher raw-material prices and selling, general and administrative expenses. In addition, it recorded an impairment loss of ¥2,838 million due to an increase in unprofitable stores, resulting in a net loss attributable to owners of the parent of ¥3,225 million. As of the end of the fiscal year, the company was also in breach of the consolidated net assets maintenance covenant included in its syndicated loan agreement and commitment line agreement with its financial institutions.」
The company recorded an operating loss, a substantial impairment loss and a net loss attributable to owners of the parent, and breached financial covenants. These matters were disclosed independently for the first time as circumstances raising substantial doubt about the going concern assumption. With support from its financial institutions, the company determined that no material uncertainty existed.