Significant Doubt Regarding the Going-Concern Assumption Due to COVID-19 and Liquidity
First written in FY2020-Q2. 4 of 15 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2023.
The whole theme swung hardest in 2025: 2 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Achieved".
- FY2023AchievedAnnual report
「Accordingly, the company concluded that, at the end of the current consolidated fiscal year, the situation giving rise to significant doubt about the going-concern assumption had been resolved.」
The company states that the situation giving rise to significant doubt about the going-concern assumption had been resolved because operating cash flow turned positive, operating income turned positive in the third quarter of the consolidated fiscal year, and operating income was also recorded in the fourth quarter. - FY2023-Q3RestatedAnnual report
「As a result, consolidated operating losses have continued for 2 or more periods and, depending on trends in future demand for overseas travel and the recovery of declining international passenger flight volumes, the group's financial condition, operating results and cash flow may be affected. These circumstances have created a situation giving rise to significant doubt about the going-concern assumption. To address this situation, the group continues to reduce selling, general and administrative expenses by temporarily suspending some operations (through 31 March 2023), using public programs (with applications for the primary employment adjustment subsidy covering periods through 31 March 2023), reducing total executive compensation, partially reviewing salaries and curbing advertising expenses.」
Consolidated operating losses have continued for 2 or more consecutive periods, and the situation giving rise to significant doubt about the going-concern assumption continues. Meanwhile, the company continues to conclude that the measures taken have secured sufficient funds to continue operations through the end of the current consolidated fiscal year and that no material uncertainty exists. - FY2023-Q2RestatedAnnual report
「As a result, consolidated operating losses have continued for 2 or more periods and, depending on trends in future demand for overseas travel and the recovery of declining international passenger flight volumes, the group's financial condition, operating results and cash flow may be affected. These circumstances have created a situation giving rise to significant doubt about the going-concern assumption. To address this situation, the group continues to reduce selling, general and administrative expenses by temporarily suspending some operations (through 31 March 2023), using public programs (with applications for the primary employment adjustment subsidy covering periods through 31 March 2023), reducing total executive compensation, partially reviewing salaries and curbing advertising expenses.」
Consolidated operating losses have continued for 2 or more consecutive periods, and the situation giving rise to significant doubt about the going-concern assumption continues. Meanwhile, the company continues to conclude that the measures taken have secured sufficient funds to continue operations through the end of the fiscal year and that no material uncertainty exists. - FY2023-Q1RestatedAnnual report
「As a result of these measures, the group has secured sufficient funds to continue operations at least through the end of the current consolidated fiscal year. In addition, cash and deposits at the end of the first quarter, less travel advances, amounted to ¥1,186 million, while total selling, general and administrative expenses for the six months ended the first quarter were ¥149 million. As there was also no debt outstanding, the company believes that there are no immediate cash flow concerns. Accordingly, the company concluded that no material uncertainty existed regarding the going-concern assumption.」
Consolidated operating losses and negative consolidated operating cash flow have continued for 2 or more consecutive periods, and the situation giving rise to significant doubt continues. Meanwhile, the company continues to conclude that it has secured sufficient funds to continue operations through the end of the current consolidated fiscal year and that no material uncertainty exists. - FY2022MitigatedAnnual report
「As a result of these measures, the group has secured sufficient funds to continue operations for at least 12 months from the day after the end of the current consolidated fiscal year. In addition, cash and deposits at the end of the current consolidated fiscal year, less travel advances, amounted to ¥1,170 million, while total selling, general and administrative expenses for the fiscal year were ¥493 million. As there was also no debt outstanding, the company believes that there are no immediate cash flow concerns. Accordingly, the company concluded that no material uncertainty existed regarding the going-concern assumption.」
Although consolidated operating losses and negative operating cash flow have continued for 2 or more periods, giving rise to significant doubt, the company has secured sufficient funds to continue operations for 12 months from the following day and has stated that no material uncertainty exists. Cash after deducting travel advances was ¥1,170 million. - FY2022-Q3Decrease in funds after deducting customer advances received for travelAnnual report
「As a result of implementing these measures, the company has secured sufficient funds to continue operations at least through the end of the current consolidated fiscal year. In addition, cash and deposits at the end of the third quarter, less travel advances, amounted to ¥1,449 million, while total selling, general and administrative expenses for the nine months ended the third quarter were ¥366 million. As there was also no debt outstanding, the company concluded that there were no immediate cash flow concerns. Accordingly, the company concluded that no material uncertainty existed regarding the going-concern assumption.」
The situation giving rise to significant doubt about the going-concern assumption continues. Cash after deducting travel advances stood at ¥1,449 million, down from ¥1,464 million in FY2022-Q2, while the company continues to conclude that there are no immediate cash flow concerns and that no material uncertainty exists. - FY2022-Q2WorsenedAnnual report
「As a result of implementing these measures, the Group has secured at least the level of funds necessary to continue operations through the end of the consolidated fiscal year. In addition, cash and deposits less travel deposits received in advance amounted to ¥1,464 million at the end of the second-quarter consolidated accounting period. Meanwhile, selling, general and administrative expenses totaled ¥245 million for the cumulative second-quarter consolidated period, and there were no borrowings outstanding. The company therefore determined that there was no issue with cash management for the foreseeable future. Based on the foregoing, it determined that no material uncertainty existed regarding the going concern assumption.」
The situation giving rise to significant doubt about the going-concern assumption continues. Cash after deducting travel advances decreased from ¥1,486 million to ¥1,464 million, while selling, general and administrative expenses were ¥245 million. Meanwhile, no material uncertainty has been identified, and the company continues to conclude that there are no immediate cash flow concerns. - FY2022-Q1SoftenedAnnual report
「As a result of implementing these measures, the Group has secured at least the level of funds necessary to continue operations through the end of the consolidated fiscal year. In addition, cash and deposits less travel deposits received in advance amounted to ¥1,486 million at the end of the first-quarter consolidated accounting period. Meanwhile, selling, general and administrative expenses totaled ¥126 million for the cumulative first-quarter consolidated period, and there were no borrowings outstanding. The company therefore determined that there was no issue with cash management for the foreseeable future. Based on the foregoing, it determined that no material uncertainty existed regarding the going concern assumption.」
Conditions giving rise to significant doubt about the going concern assumption continued. The period covered by the funds secured was described this time as “through the end of the consolidated fiscal year,” compared with “12 months from the day after the end of the consolidated fiscal year” previously. Meanwhile, the company continued to determine that no material uncertainty existed and that there was no issue with cash management for the foreseeable future. - FY2021MitigatedAnnual report
「As a result of these measures, the Group has secured at least the level of funds necessary to continue its operations for 12 months from the day after the end of the consolidated fiscal year. In addition, cash and deposits less travel deposits received in advance amounted to ¥1,531 million at the end of the consolidated fiscal year, while selling, general and administrative expenses totaled ¥532 million for the fiscal year and there were no borrowings outstanding. The company therefore considers that there is no issue with cash management for the foreseeable future. Based on the foregoing, it determined that no material uncertainty existed regarding the going concern assumption.」
Although conditions giving rise to significant doubt about the going concern assumption continued to exist, the company explains that it secured the funds necessary to continue operations for 12 months from the following day through cost reductions and the allocation of resources to the domestic travel business, among other measures. It also continued to determine that no material uncertainty existed. - FY2021-Q3WorsenedAnnual report
「As a result of implementing these measures, cash and deposits less travel deposits received in advance amounted to ¥1,508 million at the end of the third-quarter consolidated accounting period. Meanwhile, selling, general and administrative expenses totaled ¥404 million for the cumulative third-quarter consolidated period, and there were no borrowings outstanding. The company therefore determined that there was no issue with cash management for the foreseeable future. Based on the foregoing, it determined that no material uncertainty existed regarding the going concern assumption.」
Conditions giving rise to significant doubt about the going concern assumption continued to exist. Cash after deducting travel deposits received in advance decreased from ¥1,514 million to ¥1,508 million, while selling, general and administrative expenses increased from ¥278 million to ¥404 million. Meanwhile, there were no borrowings outstanding, and the company continued to determine that no material uncertainty existed. - FY2021-Q2Funds remaining after deducting travel customer advances increasedAnnual report
「As a result of implementing these measures, cash and deposits less travel deposits received in advance amounted to ¥1,514 million at the end of the second-quarter consolidated accounting period. Meanwhile, selling, general and administrative expenses totaled ¥278 million for the cumulative second-quarter consolidated period, and there were no borrowings outstanding. The company therefore determined that there was no issue with cash management for the foreseeable future. Based on the foregoing, it determined that no material uncertainty existed regarding the going concern assumption.」
The company stated that conditions giving rise to significant doubt about the going concern assumption continued to exist. Cash after deducting travel deposits received in advance amounted to ¥1,514 million, up from ¥1,407 million in FY2021-Q1, and the company continued to determine that no material uncertainty existed. - FY2021-Q1Decrease in funds after deducting customer advances received for travelAnnual report
「These circumstances give rise to conditions that may raise significant doubt about the going concern assumption. To address them, the company sought to reduce selling, general and administrative expenses by shortening operating hours, suspending some operations, using public programs such as employment adjustment subsidies, reducing total executive compensation, partially revising wages and restraining advertising expenses.」
The company stated that conditions giving rise to significant doubt about the going concern assumption continued to exist. Meanwhile, cash after deducting travel deposits received in advance was ¥1,407 million, selling, general and administrative expenses were ¥146 million, and there were no borrowings outstanding. The company continued to determine that no material uncertainty existed. - FY2020WorsenedAnnual report
「These circumstances give rise to conditions that may raise significant doubt about the going concern assumption. To address them, the company sought to reduce selling, general and administrative expenses by shortening operating hours, suspending some operations, using public programs such as employment adjustment subsidies, reducing total executive compensation, partially revising wages and restraining advertising expenses.」
Conditions giving rise to significant doubt about the going concern assumption continued to exist on a full-year basis. Cash after deducting travel deposits received in advance was ¥1,474 million, and selling, general and administrative expenses were ¥696 million, but the company continued to determine that no material uncertainty existed. - FY2020-Q3WorsenedAnnual report
「However, with respect to our group’s cash flow, funds stood at ¥1,488 million at the end of the third quarter under review after deducting travel customer advances from cash and deposits. Meanwhile, total selling, general and administrative expenses for the cumulative third quarter under review were ¥565 million, and as there were no outstanding borrowings, we determined that there were no issues with cash flow for the foreseeable future.」
The company continued to state that conditions giving rise to significant doubt about the going concern assumption existed. Cash after deducting travel deposits received in advance decreased from ¥1,756 million to ¥1,488 million, while selling, general and administrative expenses increased from ¥432 million to ¥565 million. Meanwhile, the company continued to determine that no material uncertainty existed and that there was no issue with cash management for the foreseeable future. - FY2020-Q2First statedAnnual report
「These circumstances give rise to conditions that may raise significant doubt about the going concern assumption. However, as stated in “2. Analysis of Financial Position, Operating Results and Cash Flow by Management (5) Significant Events, etc. Related to the Going Concern Assumption,” the company has determined that no material uncertainty exists regarding the going concern assumption. Regarding the Group's cash management, at the end of the second-quarter consolidated accounting period, cash and deposits less travel deposits received in advance amounted to ¥1,756 million. Meanwhile, selling, general and administrative expenses totaled ¥432 million for the cumulative second-quarter consolidated period, and there were no borrowings outstanding. The company therefore determined that there was no issue with cash management for the foreseeable future.」
For the first time, the company stated that the spread of COVID-19 had created conditions giving rise to significant doubt about the going concern assumption. However, based on cash of ¥1,756 million after deducting travel deposits received in advance, selling, general and administrative expenses of ¥432 million and no borrowings outstanding, it determined that no material uncertainty existed regarding the going concern assumption and that there was no issue with cash management for the foreseeable future.