Transaction Risk from Uncollectible Advertising Fees and Inadequate Contract Documentation
First written in FY2021. 2 of 6 entries say "Mitigated", first in FY2022. Latest entry: FY2025.
Digitalift moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2020: 7 of 17 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Allowance for doubtful accounts △ 6,149」
The allowance for doubtful accounts increased from ¥2.533 million in the previous fiscal year to ¥6.149 million, indicating greater financial exposure to credit risk associated with uncollectible advertising charges and other matters. - FY2024MaterialisedAnnual report
「Allowance for doubtful accounts — △ 2,533」
The company recognised an allowance for doubtful accounts of ¥2.533 million in the fiscal year, reflecting measures to address credit risk in preparation for uncollectible advertising charges and other matters. No specific cause of bad debts is stated. - FY2024-Q2MitigatedAnnual report
「As a result of incurring the costs of acquiring shares for the growth of the Group, making upfront investments in its internal control system and addressing the risk of bad debts」
The company states that it has taken measures to address bad-debt risk, providing specific details on the implementation of risk mitigation measures. It does not state that bad debts actually occurred. - FY2023WorsenedAnnual report
「To promptly avoid this risk, the Group seeks to document the terms of advertising transactions, including by requesting that customers submit purchase orders. However, some clients do not comply with requests to submit purchase orders.」
While describing its efforts to document contracts, the company makes clear that some customers do not comply with requests to submit purchase orders, leaving litigation and damages-claim risks associated with undocumented transactions. - FY2022MitigatedAnnual report
「In addition, we require contracts, including purchase orders, to be completed before starting transactions, and no transactions are conducted without a contract. In the past, there have been no cases in which disputes concerning the formation or terms of contracts for advertising transactions that had not been documented in writing developed into litigation or claims for damages.」
The company states that it requires contracts and purchase orders to be completed before transactions begin and that there has been no past litigation or other proceedings concerning undocumented transactions, providing specific details on how it addresses contract-documentation risk. - FY2021First statedAnnual report
「We bear the credit risk of clients. If a dispute arises concerning the formation or terms of a contract for an advertising transaction that has not been documented in writing, it may develop into litigation or a claim for damages」
The company uses its credit management rules, transactions with financially sound companies and requests for purchase orders as risk mitigation measures.