Circumstances giving rise to substantial doubt about the going-concern assumption
First written in FY2019-Q3. 8 of 17 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2024.
VIA Holdings moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 4 of 13 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「(Notes on Going Concern) There are no applicable matters.」
The current period's notes state that there are no applicable matters concerning the significant doubt and uncertainty regarding the going-concern assumption that had been disclosed through the previous period. - FY2024-Q3WorsenedAnnual report
「The Group is working on business revitalization based on this business turnaround plan. However, business revitalization remains under implementation, and the number of the 26th and 27th stock acquisition rights to be exercised, their exercise prices, and the timing of exercise have not yet been determined. Accordingly, significant uncertainty regarding the going-concern assumption is recognized at this time.」
Although operating profit and ordinary profit returned to positive territory, new uncertainties have been identified, namely that business revitalization remains under implementation and the number, exercise price, and timing of the exercise of the stock acquisition rights have not been determined. - FY2024-Q2MitigatedAnnual report
「In the previous consolidated fiscal year, the Group recorded an operating loss of ¥933 million and an ordinary loss of ¥1,000 million, resulting in an ordinary loss for 5 consecutive fiscal years. However, in the cumulative second quarter of the current consolidated fiscal year, performance improved and the Group returned to profitability, recording an operating profit of ¥77 million and an ordinary profit of ¥47 million. Nevertheless, as of the end of the previous consolidated fiscal year, the Group was in breach of the financial covenants under the term loan agreement in the creditors' agreement entered into with its lending financial institutions on 20 April 2021, as well as the restrictions under the share investment agreement on the exercise by the holders of Class C preferred shares of acquisition claims payable in cash. As a result, circumstances exist that could give rise to significant doubt regarding the going-concern assumption.」
Operating profit and ordinary profit returned to positive territory during the cumulative quarter, improving the earnings situation. However, circumstances involving significant doubt regarding the going-concern assumption remain due to the breaches of the financial covenants and the restrictions on the exercise of acquisition claims by the holders of Class C preferred shares. - FY2024-Q1RestatedAnnual report
「In the previous consolidated fiscal year, the Group recorded an operating loss of ¥933 million and an ordinary loss of ¥1,000 million, resulting in an ordinary loss for 5 consecutive fiscal years. In the cumulative first quarter of the current consolidated fiscal year, the Group also recorded an operating loss of ¥28 million and an ordinary loss of ¥42 million. In addition, as of the end of the previous consolidated fiscal year, the Group was in breach of the financial covenants under the term loan agreement in the creditors' agreement entered into with its lending financial institutions on 20 April 2021, as well as the restrictions under the share investment agreement on the exercise by the holders of Class C preferred shares of acquisition claims payable in cash. As a result, circumstances exist that could give rise to significant doubt regarding the going-concern assumption.」
Circumstances involving significant doubt regarding the going-concern assumption continue due to ordinary losses for 5 consecutive fiscal years, breaches of the term loan agreement's financial covenants, and a breach of the restrictions on the exercise of acquisition claims by the holders of Class C preferred shares. - FY2023WorsenedAnnual report
「In the current consolidated fiscal year, the Group recorded an operating loss of ¥933 million, an ordinary loss of ¥1,000 million, and a net loss attributable to owners of the parent of ¥1,329 million, resulting in an ordinary loss for 5 consecutive fiscal years.」
Circumstances involving significant doubt regarding the going-concern assumption continue due to ordinary losses for 5 consecutive fiscal years, a breach of the financial covenants, and a breach of the restrictions on the exercise of the monetary acquisition claim by the holders of Class C preferred shares. The Group has obtained consent for continued support from its principal banks. - FY2023-Q3WorsenedAnnual report
「In the previous consolidated fiscal year, the Group recorded an operating loss of ¥1,123 million and an ordinary loss of ¥827 million, resulting in an ordinary loss for 4 consecutive fiscal years. In the cumulative third quarter of the current consolidated fiscal year, the Group also recorded an operating loss of ¥742 million and an ordinary loss of ¥787 million. As a result, circumstances exist that could give rise to significant doubt regarding the going-concern assumption.」
In addition to ordinary losses for 4 consecutive fiscal years, the Group recorded an operating loss of ¥742 million and an ordinary loss of ¥787 million in the cumulative third quarter, and circumstances involving significant doubt regarding the going-concern assumption continue. - FY2023-Q2RestatedAnnual report
「However, the outlook for the economy remains uncertain due to the impact of COVID-19, including changes in lifestyles such as the spread of teleworking and people refraining from going out, as well as a decline in customer visits resulting from socially distanced operations to ensure the safety and peace of mind of customers and employees. Uncertainty remains regarding the extent and duration of the impact on future sales. In addition, the business revitalization under this business turnaround plan remains under implementation. Accordingly, significant uncertainty regarding the going-concern assumption is recognized at this time.」
Significant uncertainty regarding the going-concern assumption continues to be recognized due to the decline in customer visits, uncertainty regarding the impact on sales, and the ongoing implementation of the business turnaround plan. - FY2023-Q1WorsenedAnnual report
「In the previous consolidated fiscal year, the Group recorded an operating loss of ¥1,123 million and an ordinary loss of ¥827 million, resulting in an ordinary loss for 4 consecutive fiscal years. In the cumulative first quarter of the current consolidated fiscal year, the Group also recorded an operating loss of ¥219 million and an ordinary loss of ¥230 million. As a result, circumstances exist that could give rise to significant doubt regarding the going-concern assumption.」
In addition to ordinary losses for 4 consecutive fiscal years, the Group recorded an operating loss of ¥219 million and an ordinary loss of ¥230 million in the first quarter, and circumstances involving significant doubt regarding the going-concern assumption continue. - FY2022-Q3WorsenedAnnual report
「However, although restrictions such as requests for restaurants to reduce their hours were lifted from October 2021, the quasi-emergency measures to prevent the spread of disease were applied again in January 2022. The outlook for economic recovery remains uncertain, and uncertainty remains regarding the extent and duration of the impact on future sales. In addition, the business revitalization under this business turnaround plan remains under implementation. Accordingly, significant uncertainty regarding the going-concern assumption is recognized at this time.」
After the restrictions were lifted, the quasi-emergency measures to prevent the spread of disease were applied again, and uncertainty regarding the economic recovery and the impact on sales, as well as the ongoing implementation of the business turnaround plan, continues. - FY2022-Q2RestatedAnnual report
「However, although restrictions such as requests for restaurants to reduce their hours were lifted from October 2021, the outlook for economic recovery remains uncertain, and uncertainty remains regarding the extent and duration of the impact on future sales. In addition, the business revitalization under this business turnaround plan remains under implementation. Accordingly, significant uncertainty regarding the going-concern assumption is recognized at this time.」
Even after restrictions such as requests to reduce operating hours were lifted, significant uncertainty regarding the economic recovery, the impact on sales, and the ongoing implementation of the business turnaround plan continues. - FY2021WorsenedAnnual report
「The breach of the financial covenants continued during the consolidated fiscal year, and the recognition of a net loss attributable to owners of the parent of ¥5,606 million resulted in negative net worth of ¥4,479 million at the end of the consolidated fiscal year.」
The breach of the financial covenants continued, and the recognition of a net loss of ¥5,606 million resulted in negative net worth of ¥4,479 million. The business turnaround plan under the Business Revitalization ADR remains under implementation, and significant uncertainty remains. - FY2021-Q3WorsenedAnnual report
「As the company recorded a quarterly net loss attributable to owners of the parent of ¥3,889 million during the cumulative third quarter of the current consolidated fiscal year, it was in a net liability position of ¥2,673 million at the end of the third quarter of the current consolidated accounting period.」
The quarterly net loss of ¥3,889 million resulted in negative net worth of ¥2,673 million, and significant doubt and uncertainty regarding the going-concern assumption continue. - FY2021-Q2WorsenedAnnual report
「As the company was in a net liability position at the end of the third month of the current second quarter consolidated accounting period, we recognize that circumstances that could raise substantial doubt about the Company's ability to continue as a going concern still exist.」
The company continues to recognize substantial doubt and material uncertainty regarding its ability to continue as a going concern, against a backdrop of infection-related declines in demand for eating out, a breach of financial covenants, negative operating cash flow and a net liability position of ¥707 million. - FY2021-Q1RestatedAnnual report
「As the decline in demand for eating out due to the impact of the novel coronavirus disease and the breach of financial covenants continued during the cumulative first quarter of the current consolidated fiscal year, we recognize that circumstances that could raise substantial doubt about the Company's ability to continue as a going concern still exist.」
The company stated that substantial doubt regarding its ability to continue as a going concern remains, against a backdrop of infection-related declines in demand for eating out and a breach of financial covenants. - FY2020MaterialisedAnnual report
「As a result, we recognize that circumstances exist that could raise substantial doubt about the Company's ability to continue as a going concern. As these measures are still being implemented, we recognize material uncertainty regarding the going-concern assumption at present.」
After determining at the previous fiscal year-end that no material events existed, the company again recognized material uncertainty against a backdrop of infection-related declines in sales and a breach of financial covenants. - FY2019MitigatedAnnual report
「Based on the circumstances described above, management has determined that no events or circumstances that could raise substantial doubt about the Company's ability to continue as a going concern exist at present.」
Regarding the circumstances that raised substantial doubt about the Company's ability to continue as a going concern, as described in the previous quarter, management has determined that they no longer exist at present following an agreement to amend the financial covenants. - FY2019-Q3MaterialisedAnnual report
「Although circumstances exist that could raise substantial doubt about the Company's ability to continue as a going concern, as described in “2. Analysis of Financial Position, Operating Results and Cash Flows by Management, (3) Measures to Improve Circumstances That Could Raise Substantial Doubt about the Company's Ability to Continue as a Going Concern,” management has determined that no material uncertainty regarding the going-concern assumption exists because measures to resolve the material events and other matters are being implemented.」
The company stated that circumstances raising substantial doubt about its ability to continue as a going concern exist, against a backdrop of declining net sales, a higher personnel expense ratio, an outlook for an ordinary loss and the expected breach of financial covenants. At the same time, it determined that no material uncertainty exists as a result of the measures being implemented.