Material Uncertainty Related to the Going Concern Assumption and Liquidity Concerns
First written in FY2021-Q1. 5 of 15 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2025-H1.
Wagokoro moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「(Matters related to the going concern assumption) Not applicable.」
The interim consolidated accounting period also stated that there were no matters related to the going concern assumption, and the absence of material uncertainty continues. - FY2024MitigatedAnnual report
「(Matters related to the going concern assumption) Not applicable.」
The notes to the consolidated financial statements state that there is no material uncertainty related to the going concern assumption. - FY2024-H1MitigatedAnnual report
「(Matters related to the going concern assumption) Not applicable.」
The notes to the interim consolidated financial statements state that there are no matters related to the going concern assumption. - FY2023MitigatedAnnual report
「Based on a comprehensive assessment of these circumstances, the company has determined that, as of the present time, material uncertainty related to the going concern assumption no longer exists.」
In light of the recovery in consolidated net assets, the return to operating and ordinary profitability, and capital raising, the company changed its assessment at the consolidated level to conclude that no material uncertainty related to the going concern assumption exists. However, it stated that negative net assets remain on a non-consolidated basis. - FY2023-Q3Material uncertainty related to the going concern assumption continues after returning to operating and ordinary profitabilityAnnual report
「During the cumulative third quarter of the consolidated fiscal year, net sales were ¥983.643 million, operating profit was ¥50.887 million, ordinary profit was ¥18.821 million, and net loss attributable to owners of the parent was ¥1.671 million. Net assets on the quarterly consolidated balance sheet as of 30 September 2023 were ¥113.602 million. However, the company continuously recorded operating losses, ordinary losses and quarterly net losses attributable to owners of the parent through the previous fiscal year and the first quarter. As the recovery in demand and profitability is likely to take time, events or conditions exist that raise substantial doubt about the going concern assumption.」
Although operating profit, ordinary profit and net assets were positive, the company continued to disclose substantial doubt about the going concern assumption because of past losses and the possibility that the recovery in demand and profitability will take time. - FY2023-Q2Material uncertainty related to the going concern assumption continues even after returning to profitability and recovering net assetsAnnual report
「However, the company continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent through the previous fiscal year and the first quarter. As the recovery in demand and profitability is likely to take time, events or conditions exist that raise substantial doubt about the going concern assumption.」
Although the company recorded profit and positive net assets in the second quarter, it continued to disclose substantial doubt about the going concern assumption because of its loss-making results through the previous fiscal year and first quarter and the possibility that the recovery in demand and profitability will take time. - FY2023-Q1Customer visits and inbound tourism recovering, but cash-flow concerns continueAnnual report
「Revenue increased as the number of customers visiting stores was recovering to 156.3% of the year-earlier level following the gradual easing of restrictions on economic activity. The number of foreign visitors to Japan was also increasing, raising expectations for a recovery in inbound consumption. However, as the recovery in demand and profitability is likely to take time, concerns have currently arisen regarding cash flow.」
The number of customers visiting stores recovered to 156.3% of the year-earlier level, and the number of foreign visitors to Japan also increased. However, the recovery in demand and profitability is likely to take time, and concerns over cash flow and material uncertainty related to the going concern assumption continue. - FY2022WorsenedAnnual report
「Sales declined, and concerns have arisen regarding cash flow, with conditions still far from those before the spread of COVID-19.」
Although the number of customers visiting stores was recovering to 112.0% of the year-earlier level, it remained far below pre-COVID levels, while concerns over cash flow and material uncertainty related to the going concern assumption continued. The company was insolvent, with negative net assets of ¥441.820 million. - FY2022-Q3Visitor numbers recovering, but concerns about cash flow continueAnnual report
「Revenue increased as visitor numbers began to recover, reaching 117.1% of the year-earlier level as restrictions on economic activity were gradually eased. However, visitor numbers remained far below pre-pandemic levels, revenue fell sharply and concerns arose regarding cash flow.」
Visitor numbers recovered to 117.1% of the year-earlier level, resulting in higher revenue, but remained far below pre-pandemic levels. Concerns about cash flow and material uncertainty regarding the going-concern assumption remain. - FY2022-Q2RestatedAnnual report
「The Company believes that the containment of the spread of COVID-19 will take some time and that demand recovery is highly likely to take time. Accordingly, concerns about cash flow have arisen.」
The possibility that demand recovery will take time and concerns about cash flow continued, and material uncertainty regarding the going-concern assumption remained. - FY2022-Q1WorsenedAnnual report
「Revenue was ¥192.874 million, operating loss was ¥101.745 million, ordinary loss was ¥106.285 million and net loss attributable to owners of the parent was ¥107.060 million. As of 31 March 2022, the quarterly consolidated balance sheet showed an excess of liabilities over assets of ¥536.678 million.」
The significant doubt regarding the going-concern assumption and concerns about cash flow continued, and the excess of liabilities over assets increased to ¥536.678 million. - FY2021WorsenedAnnual report
「The Company believes that the containment of the spread of COVID-19 will take some time and that demand recovery is highly likely to take time. Accordingly, concerns about cash flow have arisen.」
The significant doubt regarding the going-concern assumption continued at the end of the fiscal year, and annual revenue of ¥902.142 million and an excess of liabilities over assets of ¥433.387 million were recorded. - FY2021-Q3WorsenedAnnual report
「The Company believes that the containment of the spread of COVID-19 will take some time because of the repeated issuance of states of emergency, and that demand recovery is highly likely to take time. Accordingly, concerns about cash flow have arisen. As a result, events or conditions exist that raise significant doubt about the going-concern assumption.」
Material uncertainty regarding the going-concern assumption continued, and the excess of liabilities over assets increased to ¥361.602 million as accumulated losses expanded. - FY2021-Q2WorsenedAnnual report
「The Company believes that the containment of the spread of COVID-19 will take some time because of the repeated issuance of states of emergency, and that demand recovery is highly likely to take time. Accordingly, concerns about cash flow have arisen. As a result, events or conditions exist that raise significant doubt about the going-concern assumption.」
The significant doubt regarding the going-concern assumption continued, and the Company explained that demand recovery was highly likely to take time. The excess of liabilities over assets increased to ¥309.549 million. - FY2021-Q1First statedAnnual report
「As the number of visitors to the Company’s stores declined significantly from January 2021 onward, revenue fell sharply and concerns arose regarding cash flow. As a result of these circumstances, events or conditions exist that raise significant doubt about the going-concern assumption.」
Concerns about cash flow arose as a result of a decline in inbound visitors, reduced operating hours and significant decreases in visitor numbers and revenue, and material uncertainty regarding the going-concern assumption was disclosed for the first time.