Risk of loss of the benefit of time under financial covenants in loan agreements
First written in FY2020. 3 of 8 entries say "Restated". Latest entry: FY2025.
- FY2025DroppedAnnual reportThe FY2025 annual securities report contains no standalone disclosure of the financial covenants under the commitment agreement or the loss of the benefit of time.
- FY2024MitigatedAnnual report
「Consolidated fiscal year (from 1 August 2023 to 31 July 2024) There were no applicable matters.」
For the financial covenants under the commitment agreement that had been disclosed through the previous fiscal year, the company stated that there were no applicable matters in the current consolidated fiscal year, indicating that the contractual situation concerning the risk of losing the benefit of time had eased. - FY2022MitigatedAnnual report
「Operating income was ¥44.344 million (operating loss of ¥138.020 million in the previous consolidated fiscal year).」
The company shifted to operating income in FY2022 after recording operating losses for 2 consecutive periods through the previous period. The operating-performance risk of breaching the financial covenants has therefore diminished, although the contractual covenants themselves remain in place. - FY2022-Q3RestatedAnnual report
「4. Negotiations with financial institutions regarding financing, including refinancing」
The company continues negotiations with financial institutions on funding, including refinancing, as a measure to resolve the material event related to the going-concern assumption. - FY2022-Q2RestatedAnnual report
「In addition, the company became subject to the financial covenants under the commitment line agreement as a result of recording operating losses for 2 consecutive periods, but has agreed with the financial institution not to exercise its right to declare the benefit of time lost as a result of the breach.」
The company continues to disclose that it became subject to the financial covenants as a result of operating losses for 2 consecutive periods and that it has agreed with the financial institution not to exercise its right to declare the benefit of time lost. - FY2022-Q1RestatedAnnual report
「In addition, the company became subject to the financial covenants under the commitment line agreement as a result of recording operating losses for 2 consecutive periods, but has agreed with the financial institution not to exercise its right to declare the benefit of time lost as a result of the breach.」
The breach of the financial covenants and the agreement that the financial institution will not exercise its right to declare the benefit of time lost continue to be disclosed. - FY2021MaterialisedAnnual report
「We have agreed with the financial institution not to exercise its right to declare the benefit of time lost as a result of a breach of the financial covenants.」
The company actually breached the financial covenants under its commitment line as a result of losses for 2 consecutive periods. However, the financial institution has waived its right to demand the loss of the benefit of time. - FY2020First statedAnnual report
「① At the end of each fiscal year, beginning with the fiscal year ending July 2018, maintain total equity in the standalone balance sheet at no less than 75% of the higher of total equity at the end of the fiscal year ending July 2017 or total equity at the end of the preceding fiscal year. ② In the standalone income statement for each fiscal year, beginning with the fiscal year ending July 2018, ensure that ordinary income or loss is not less than ¥0.」
The company has disclosed in detail for the first time the financial covenants under its commitment agreement with a financial institution, including maintaining equity at no less than 75% and remaining profitable on an ordinary income basis, as well as the possibility of losing the benefit of time if the covenants are breached. No breach of the covenants or loss of the benefit of time is reported.