Recurring Losses, Negative Operating Cash Flow and an Early Return to Profitability
First written in FY2017. 17 of 38 entries say "Mitigated", first in FY2019-Q1. Latest entry: FY2026.
Precision System Science moved to the "Worse" side of this theme in 2023, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 26 of 48 companies on the "Worse" side.
6 other companies' latest entry also says "Achieved".
- FY2026AchievedAnnual report
「During the consolidated fiscal year, the Company recorded operating income, ordinary income and net income attributable to owners of the parent and expects these figures, together with the sales supporting them, to continue growing steadily from the current fiscal year onward. In addition, the Company has secured the funds needed for the foreseeable future through good relationships with its financial institutions. Accordingly, it has determined that the events or circumstances that could raise significant doubt about the going-concern assumption have already been resolved.」
The company stated that the material events arising from continuing losses and negative operating cash flow had been resolved, citing the recognition of operating income, ordinary income and net income, as well as the securing of funds. - FY2026-H1MitigatedAnnual report
「For the interim consolidated accounting period, the company expects to report operating income, ordinary income and interim net income attributable to owners of the parent, with revenue, which supports these results, also expected to grow steadily. In addition, as there are no funding concerns, the company has determined that the events and circumstances that could raise substantial doubt about the going-concern assumption have been resolved.」
The company stated that the events and circumstances raising substantial doubt about the going-concern assumption had been resolved, citing improved profitability from business restructuring and other measures, the recognition of operating income, ordinary income and interim net income, and the resolution of funding concerns. - FY2025MitigatedAnnual report
「Cash flow from operating activities increased by ¥95 million, compared with a decrease of ¥106 million in the same period of the previous year.」
Although the company continues to report an operating loss, cash flow from operating activities turned positive at ¥95 million from negative in the previous fiscal year. - FY2025-H1MitigatedAnnual report
「During the current interim consolidated accounting period, the Group remained in the business revitalization phase set out in its medium-term management plan. Although the foundation for securing profits is taking shape, the Group recorded an operating loss, ordinary loss and interim net loss attributable to owners of the parent.」
Although operating losses and other losses continued, the loss narrowed year on year, and it was reported that the foundation for securing profits was taking shape through measures in the business revitalization phase. - FY2024MaterialisedAnnual report
「The current consolidated fiscal year recorded significant operating, ordinary and net losses for 2 consecutive fiscal years. As a result, the Group breached the financial covenants in borrowing agreements with certain financial institutions and lost the benefit of the term on long-term borrowings.」
It was reported that recurring losses had continued for 2 consecutive fiscal years, resulting in an actual breach of financial covenants and loss of the benefit of the term on long-term borrowings. However, as of the filing date, a waiver of the loss of the benefit of the term had been finalized. - FY2024-Q3WorsenedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, the Group continued to record operating losses, ordinary losses and quarterly net losses. In addition, as stated in the revision to the full-year consolidated earnings forecast announced on 14 February 2024, we expect to record operating and ordinary losses for 2 consecutive fiscal years at the end of the current consolidated fiscal year. This could result in a breach of the financial covenants in borrowing agreements with certain financial institutions. If the covenants are applied, we would lose the benefit of the term on long-term borrowings and other debt.」
Operating, ordinary and net losses continued through the cumulative third quarter, and operating and ordinary losses were expected to continue for 2 consecutive fiscal years on a full-year basis. The material event involving the possibility of breaching financial covenants and losing the benefit of the term continued. - FY2024-Q2WorsenedAnnual report
「At the end of the current consolidated fiscal year, we expect to record operating and ordinary losses for 2 consecutive fiscal years. This could result in a breach of the financial covenants in borrowing agreements with certain financial institutions. If the covenants are applied, we would lose the benefit of the term on long-term borrowings and other debt. In light of these circumstances, events or conditions that raise substantial doubt about the going-concern assumption exist as of the end of the current second quarter of the consolidated fiscal year.」
In addition to losses continuing from the previous consolidated fiscal year, operating and ordinary losses are expected to be recorded for 2 consecutive fiscal years at the end of the current consolidated fiscal year. The possibility of breaching financial covenants and the risk of losing the benefit of the term on long-term borrowings were explicitly stated. The disclosure has changed from the previous statement that no material uncertainty exists to recognition that material uncertainty exists this time. - FY2024-Q1Operating loss narrows; material event continuesAnnual report
「The Group continued to record an operating loss, ordinary loss and quarterly net loss in the current first quarter of the consolidated fiscal year, and events or conditions that raise substantial doubt about the going-concern assumption exist. However, as of the end of the current first quarter of the consolidated fiscal year, cash and deposits amounted to ¥2,296 million, and the Group maintains good relationships with its financial institution counterparties. There are no concerns regarding liquidity.」
Although the material event regarding the going-concern assumption continued, the loss narrowed year on year. Based on cash and deposits of ¥2,296 million and relationships with financial institutions, it was stated that there are no concerns regarding liquidity. - FY2023WorsenedAnnual report
「In addition to the decline in overseas sales as the COVID-19 pandemic moved toward containment, sales in Japan of the Group's own-brand fully automated PCR testing systems and related dedicated reagents and consumables decreased following the impact of the reclassification of COVID-19 under Japan's Infectious Diseases Control Law to Category 5, effective 8 May 2023. As a result, the Group's revenue declined significantly.」
Significant operating, ordinary and net losses were incurred due to declining overseas sales, reduced demand for PCR testing in Japan, and the cost burden associated with the second factory and new product development. Although the material event continues, it was determined that no material uncertainty exists because there are no concerns regarding liquidity. - FY2023-Q3WorsenedAnnual report
「As a result, the operating loss was ¥546 million, compared with operating profit of ¥117 million in the same period of the previous year. The ordinary loss was ¥587 million, compared with ordinary profit of ¥108 million in the same period of the previous year. In addition, due to impairment losses on fixed assets and other factors, the quarterly net loss attributable to owners of the parent was ¥646 million, compared with a quarterly net loss of ¥1 million in the same period of the previous year.」
The cumulative third quarter deteriorated from operating profit, ordinary profit and a quarterly net loss attributable to owners of the parent of ¥1 million in the same period of the previous year to an operating loss of ¥546 million, an ordinary loss of ¥587 million and a quarterly net loss of ¥646 million. The risk associated with recurring losses has become further apparent. - FY2023-Q2WorsenedAnnual report
「The operating loss was ¥381 million, compared with operating profit of ¥144 million in the same period of the previous year. The ordinary loss was ¥410 million, compared with ordinary profit of ¥133 million in the same period of the previous year. In addition, due to impairment losses on fixed assets and other factors, the quarterly net loss attributable to owners of the parent was ¥466 million, compared with quarterly net income of ¥78 million in the same period of the previous year.」
The cumulative second quarter moved from operating profit, ordinary profit and quarterly net income in the same period of the previous year to losses at each stage. However, cash flow from operating activities remained positive at ¥140 million, although down from ¥598 million in the same period of the previous year. - FY2023-Q1Return to an operating lossAnnual report
「As a result, the operating loss was ¥263 million, compared with operating profit of ¥127 million in the same quarter of the previous year. The ordinary loss was ¥259 million, compared with ordinary profit of ¥119 million in the same quarter of the previous year. In addition, due to the recognition of income tax expenses and other items, the quarterly net loss attributable to owners of the parent was ¥288 million, compared with quarterly net income of ¥100 million in the same quarter of the previous year.」
The Group moved from operating profit, ordinary profit and quarterly net income in the same period of the previous year to an operating loss, ordinary loss and quarterly net loss in the current quarter. No quarterly consolidated statement of cash flows was prepared. - FY2022MitigatedAnnual report
「Cash flow from operating activities increased by ¥869 million, compared with a decrease of ¥280 million in the previous fiscal year.」
In response to the risk of recurring losses and negative operating cash flow, the current fiscal year recorded operating profit of ¥152 million, and cash flow from operating activities turned positive, from negative in the previous fiscal year, to ¥869 million. - FY2022-Q3MitigatedAnnual report
「Events or conditions that raise substantial doubt about the going-concern assumption exist. However, in the most recent financial results for the third quarter of the fiscal year ending June 2022, the Group recorded operating profit and ordinary profit. In addition, cash and deposits at the end of the current third quarter amounted to ¥2,657 million, leaving our financial base stable. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the material event associated with negative cash flow from operating activities continued to be reported, the third quarter recorded operating profit and ordinary profit. Based on cash on hand of ¥2,657 million, it was stated that no material uncertainty exists. - FY2022-Q2MitigatedAnnual report
「However, in the most recent financial results for the second quarter of the fiscal year ending June 2022, the Group recorded positive cash flow from operating activities in the quarterly consolidated statement of cash flows, as well as operating profit, ordinary profit and quarterly net income attributable to owners of the parent in the quarterly consolidated income statement. In addition, cash and deposits at the end of the current second quarter amounted to ¥2,643 million, leaving our financial base stable. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption.」
While negative cash flow from operating activities continued to be reported as a material event, the second quarter recorded cash flow from operating activities of ¥598 million, as well as operating profit, ordinary profit and quarterly net income. Based on cash on hand of ¥2,643 million, it was determined that no material uncertainty exists. - FY2022-Q1MitigatedAnnual report
「However, in the most recent financial results for the first quarter of the fiscal year ending June 2022, the Group recorded operating profit, ordinary profit and quarterly net income attributable to owners of the parent. In addition, cash and deposits at the end of the current first quarter amounted to ¥3,801 million, leaving our financial base stable. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the material event associated with negative cash flow from operating activities continued to be reported, the Group recorded operating profit, ordinary profit and quarterly net income, and cash on hand increased to ¥3,801 million. Accordingly, the determination that no material uncertainty exists continues. - FY2021Return to profitability; operating cash flow deficit continuesAnnual report
「Cash flow from operating activities decreased by ¥280 million, compared with a decrease of ¥21 million in the previous fiscal year.」
The negative cash flow from operating activities widened from ¥21 million in the previous fiscal year to ¥280 million. However, the Group recorded operating profit, ordinary profit and net income, and determined that no material uncertainty exists regarding the going-concern assumption. - FY2021-Q3MitigatedAnnual report
「However, in the most recent financial results for the third quarter of the fiscal year ending June 2021, the Group recorded operating profit, ordinary profit and quarterly net income attributable to owners of the parent. In addition, fundraising under the syndicated loan agreement entered into on 26 February 2021 and other sources resulted in cash and deposits of ¥3,737 million at the end of the current third quarter, leaving our financial base stable. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the material event associated with negative cash flow from operating activities continued to be reported, the third quarter recorded operating profit, ordinary profit and quarterly net income. Fundraising through a syndicated loan and other sources resulted in cash on hand of ¥3,737 million, and it was determined that no material uncertainty exists. - FY2021-Q2MitigatedAnnual report
「However, in the most recent financial results for the second quarter of the fiscal year ending June 2021, the Group recorded operating profit, ordinary profit and quarterly net income attributable to owners of the parent. In addition, fundraising through the issuance of new shares upon the exercise of third-party allotment stock acquisition rights under the agreement entered into on 27 August 2018 and other sources resulted in cash and deposits of ¥3,271 million at the end of the current second quarter, leaving our financial base stable. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption. Cash flow from operating activities decreased by ¥90 million, compared with a decrease of ¥350 million in the same period of the previous year.」
Although the material event associated with negative cash flow from operating activities continued to be reported, the Group recorded operating profit, ordinary profit and quarterly net income, while the operating cash flow deficit narrowed from ¥350 million in the same period of the previous year to ¥90 million. Based on cash on hand of ¥3,271 million, it was determined that no material uncertainty exists. - FY2021-Q1MitigatedAnnual report
「As a result of these upfront investments, negative cash flow from operating activities has continued, creating events or conditions that raise substantial doubt about the going-concern assumption. However, in the most recent financial results for the first quarter of the fiscal year ending June 2021, the Group recorded operating profit, ordinary profit and quarterly net income attributable to owners of the parent. In addition, funds raised through the issuance of new shares upon the exercise of third-party allotment stock acquisition rights under the agreement entered into on 27 August 2018 resulted in cash and deposits of ¥1,438 million at the end of the current first quarter, leaving our financial base stable. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although the material event associated with negative cash flow from operating activities continued to be reported, the current first quarter recorded operating profit, ordinary profit and quarterly net income. Based on cash on hand of ¥1,438 million, it was determined that no material uncertainty exists. - FY2020Operating cash flow deficit narrows; material event continuesAnnual report
「As a result of these upfront investments, negative cash flow from operating activities has continued, creating events or conditions that raise substantial doubt about the going-concern assumption.」
Although the material event regarding the going-concern assumption continued to be reported, the operating cash flow deficit narrowed from ¥403 million in the previous fiscal year to ¥21 million. The determination that no material uncertainty exists based on fundraising and other factors also continues. - FY2020-Q3RestatedAnnual report
「The Group is conducting active research and development to expand its business around original technologies in the highly competitive biotechnology-related market, while also focusing on establishing its own sales network to expand revenue. As a result of these upfront investments, negative cash flow from operating activities has continued, creating events or conditions that raise substantial doubt about the going-concern assumption.」
Negative cash flow from operating activities associated with active research and development and the establishment of an in-house sales network, as well as the material event regarding the going-concern assumption, continued to be reported. - FY2020-Q2WorsenedAnnual report
「As a result of these upfront investments, negative cash flow from operating activities has continued, creating events or conditions that raise substantial doubt about the going-concern assumption. Cash flow from operating activities decreased by ¥350 million, compared with a decrease of ¥35 million in the same period of the previous year.」
The event raising substantial doubt about the going-concern assumption continued to be reported, and the operating cash flow deficit widened from ¥35 million in the same period of the previous year to ¥350 million. - FY2020-Q1WorsenedAnnual report
「As a result of these upfront investments, negative cash flow from operating activities has continued, creating events or conditions that raise substantial doubt about the going-concern assumption.」
Following the return to profitability for the full previous fiscal year, the current quarter recorded an operating loss of ¥103 million. As negative cash flow from operating activities continued, the event raising substantial doubt about the going-concern assumption was reported again. - FY2019Return to profitability; operating cash flow deficit widensAnnual report
「In the financial results for the fiscal year ended June 2019, the Group recorded operating profit, ordinary profit and net income attributable to owners of the parent. In addition, cash and deposits at the end of the consolidated fiscal year amounted to ¥1,845 million following recent fundraising, leaving our financial base stable. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption.」
The Group recorded operating profit, ordinary profit and net income, and determined that no material uncertainty exists regarding the going-concern assumption. However, cash flow from operating activities decreased by ¥403 million, compared with a decrease of ¥32 million in the previous fiscal year, indicating a wider deficit. - FY2019-Q3MitigatedAnnual report
「As a result of these upfront investments, we have continuously incurred operating losses, ordinary losses and quarterly net losses attributable to owners of the parent, creating events or conditions that raise substantial doubt about the going-concern assumption. Consequently, the operating loss was ¥13 million, compared with an operating loss of ¥329 million in the same period of the previous year, showing an improvement in the loss.」
Although material events arising from recurring losses continued to be reported, the operating loss narrowed significantly, from ¥329 million in the same period of the previous year to ¥13 million. - FY2019-Q2Operating loss narrows; negative operating cash flowAnnual report
「The Group is conducting active research and development to expand its business around original technologies in the highly competitive biotechnology-related market, while also focusing on establishing its own sales network to expand revenue. As a result, these upfront investments have led to recurring operating losses, ordinary losses and quarterly net losses attributable to owners of the parent, creating events or conditions that raise substantial doubt about the going-concern assumption.」
Material events arising from recurring losses continued to be reported. However, the operating loss narrowed from ¥229 million in the same period of the previous year to ¥4 million, while cash flow from operating activities decreased by ¥35 million. - FY2019-Q1MitigatedAnnual report
「As a result of these upfront investments, we have continuously incurred operating losses, ordinary losses and quarterly net losses attributable to owners of the parent, creating events or conditions that raise substantial doubt about the going-concern assumption. However, most recently, on 15 May 2017, we entered into a capital and business alliance agreement with Hitachi High-Technologies Corporation and strengthened our capital base. We also raised funds through the issuance of new shares upon the exercise of third-party allotment stock acquisition rights issued on 27 August 2018. Consequently, cash and deposits at the end of the current first quarter of the consolidated fiscal year amounted to ¥2,019 million, leaving our financial base stable. Sales of fully automated genetic testing systems supplied as OEM products to Elitech and our own sales have remained strong, and we launched the new fully automated genetic testing system geneLEAD Ⅷ and testing reagents. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Although material events arising from recurring losses continued to be reported, the operating loss narrowed to ¥1 million. Based on capital strengthening, fundraising through stock acquisition rights, cash on hand of ¥2,019 million, strong sales and the launch of new products, it was stated that no material uncertainty exists. - FY2018WorsenedAnnual report
「A loss before income taxes of ¥441 million was recorded. Following cash outflows, including a ¥206 million decrease in inventories, cash flow from operating activities decreased by ¥32 million, compared with a decrease of ¥802 million in the same period of the previous year.」
In addition to recurring operating losses, cash flow from operating activities was negative by ¥32 million for the full year. Based on cash on hand of ¥2,056 million and the capital strengthening with Hitachi High-Tech, the determination that no material uncertainty exists continues. - FY2018-Q3RestatedAnnual report
「The Group is conducting active research and development to expand its business around original technologies in the highly competitive biotechnology-related market, while also focusing on establishing its own sales network to expand revenue. As a result, these upfront investments have led to recurring operating losses. However, most recently, on 15 May 2017, we entered into a capital and business alliance agreement with Hitachi High-Technologies Corporation and strengthened our capital base. Consequently, cash and deposits at the end of the current third quarter of the consolidated fiscal year amounted to ¥2,197 million, leaving our financial base stable. Sales of fully automated genetic testing systems supplied as OEM products to Elitech and our own sales have also remained strong, and we expect to launch the new fully automated genetic testing system geneLEAD Ⅷ and diagnostic reagents. Accordingly, we have determined that no material uncertainty exists regarding the going-concern assumption.」
Recurring operating losses associated with research and development and the establishment of an in-house sales network continued to be reported. However, based on the capital strengthening through the capital and business alliance with Hitachi High-Tech, cash on hand of ¥2,197 million, strong sales in certain areas and the expected launch of new products, the determination that no material uncertainty exists continues. - FY2018-Q2Return to positive operating cash flow; operating losses continueAnnual report
「Cash flow from operating activities increased by ¥67 million, compared with a decrease of ¥290 million in the same period of the previous year.」
Cash flow from operating activities turned positive, from negative in the same period of the previous year, to ¥67 million. However, recurring operating losses from upfront investments continued to be reported as a material event, and the medium-term business plan is being implemented as a response. - FY2018-Q1RestatedAnnual report
「The Group is conducting active research and development to expand its business around original technologies in the highly competitive biotechnology-related market, while also focusing on establishing its own sales network to expand revenue. As a result, these upfront investments have led to recurring operating losses.」
Recurring operating losses associated with active research and development and the establishment of an in-house sales network continued to be reported in the current quarter. - FY2017MaterialisedAnnual report
「As a result of these upfront investments, we have continuously incurred operating losses, ordinary losses and net losses attributable to owners of the parent. In addition, operating cash flow was negative during the current consolidated fiscal year, creating events or conditions that raise substantial doubt about the going-concern assumption.」
Recurring losses and negative operating cash flow actually occurred and were reported as events raising substantial doubt about the going-concern assumption. However, based on cash on hand and the capital and business alliance with Hitachi High-Tech, it was determined that no material uncertainty exists regarding the going-concern assumption.