Circumstances giving rise to significant doubt regarding the going concern assumption
First written in FY2022-Q2. 2 of 7 entries say "Restated". Latest entry: FY2025.
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- FY2025DroppedAnnual reportThe business and financial information for the current fiscal year contains no disclosure of circumstances that raise substantial doubt about the Company’s ability to continue as a going concern.
- FY2023-Q3MitigatedAnnual report
「During the 2 previous consolidated fiscal years, the Group was forced to record a substantial decline in revenue, an operating loss and negative operating cash flow due to restrictions on operating activities and lost sales opportunities resulting from the spread of COVID-19. The Group recorded operating profit for the first time in 4 periods during the nine-month period ended 31 December. Based on the above, the Group has determined that no material uncertainty exists regarding its ability to continue as a going concern at present.」
Although the Company continues to recognize circumstances raising substantial doubt about its ability to continue as a going concern due to declining revenue, operating losses and negative operating cash flow for the past 2 periods, it continues to determine that no material uncertainty exists, based on the recognition of operating profit for the first time in 4 periods, improved inventories and cash flow, and secured funding. - FY2023-Q2MitigatedAnnual report
「The Group recognizes that circumstances exist that raise substantial doubt about its ability to continue as a going concern. Although various uncertainties exist, including higher resource prices resulting from the situation between Russia and Ukraine, inflation concerns and the rapid depreciation of the yen, sales through various channels, including department stores and mass retailers, have remained strong, particularly for seasonal products, partly due to the recovery in foot traffic following the easing of restrictions and the impact of the exceptionally hot summer, and the Group’s sales are also recovering.」
Although the Company continues to recognize circumstances that raise substantial doubt about its ability to continue as a going concern, risk factors have eased from the previous fiscal year due to the recovery in foot traffic and sales, inventory reductions, improved operating cash flow and the recognition of operating profit for the first time in 3 periods. It continues to determine that no material uncertainty exists at present. - FY2023-Q1RestatedAnnual report
「The Group recognizes that circumstances exist that raise substantial doubt about its ability to continue as a going concern.」
Against a backdrop of declining revenue, operating losses and negative operating cash flow for the past 2 periods, the Company continues to recognize circumstances raising substantial doubt about its ability to continue as a going concern. At the same time, it continues to determine that no material uncertainty exists at present. - FY2022WorsenedAnnual report
「As the Group has recorded operating losses for 3 consecutive periods and negative operating cash flow, circumstances exist that raise substantial doubt about its ability to continue as a going concern. The Group recognizes that its challenge is to secure stability as a going concern.」
The Company explicitly states that the operating loss has continued for 3 consecutive periods and that operating cash flow remains negative. It continues to determine that no material uncertainty exists, based on its borrowing facilities and medium-term management plan. - FY2022-Q3RestatedAnnual report
「Although vaccination efforts were progressing toward containing the spread of COVID-19 during the nine-month period ended 31 December, the extension of the state of emergency through the end of September limited the recovery in sales, resulting in an operating loss. The Group recognizes that these events have created circumstances that raise substantial doubt about its ability to continue as a going concern.」
The Company states that circumstances raising substantial doubt about its ability to continue as a going concern remain due to the limited recovery in sales and the operating loss. At the same time, it continues to determine that no material uncertainty exists at present. - FY2022-Q2First statedAnnual report
「Although vaccination efforts were progressing toward containing the spread of COVID-19 during the six-month period ended 30 September, the extension of the state of emergency through the end of September limited the recovery in sales, resulting in an operating loss. The Group recognizes that these events have created circumstances that raise substantial doubt about its ability to continue as a going concern.」
The Company has for the first time explicitly disclosed circumstances raising substantial doubt about its ability to continue as a going concern, due to severely restricted sales opportunities, a substantial decline in revenue, an operating loss and negative operating cash flow. At the same time, it has determined that no material uncertainty exists at present, based on the First Medium-Term Management Plan, cost reductions and secured borrowing facilities.