Notice Regarding Recognition of Extraordinary Losses and Non-operating Expenses Due to Deferred Tax Assets, Deferred Tax Liabilities, Impairment Loss on Goodwill and Impairment Treatment of Shares in a Consolidated Subsidiary, Among Other Items
The Company (MicroAd,Inc.) and consolidated subsidiary PT Mahakarya Adi Indonesia
Assessment of the recoverability of deferred tax assets based on the outlook for future business performance and other factors; efforts to improve capital efficiency and the dividend policy in light of the expansion of overseas operations; a review of the plan due to changes in the business environment and other factors, resulting in the loss of expected earnings; a significant decline in the substantial value of shares in a subsidiary; and assessment of the recoverability of loans receivable
Deferred tax assets of ¥212 million and ¥222 million, deferred tax liabilities of ¥201 million, goodwill impairment loss of ¥280 million, loss on valuation of shares in a subsidiary of ¥67 million, and provision for doubtful accounts of ¥291 million. The loss on valuation of shares in a subsidiary and the provision for doubtful accounts have no impact on the consolidated income statement.
Fiscal year ending September 2026 (1 October 2025 to 30 September 2026)
Reflected in the "Summary of Financial Results for the Fiscal Year Ended September 2026 [Japanese GAAP] (Consolidated)" announced today. Impact on revisions to the earnings forecast: Not disclosed
Provision for doubtful accounts of ¥291 million for loans receivable from PT Mahakarya Adi Indonesia
The recognition of the deferred tax assets, deferred tax liabilities and goodwill impairment loss described above has been reflected in the "Summary of Financial Results for the Fiscal Year Ended September 2026 [Japanese GAAP] (Consolidated)" announced today.
| Item | Details |
|---|---|
| Event name | Notice Regarding Recognition of Extraordinary Losses and Non-operating Expenses Due to Deferred Tax Assets, Deferred Tax Liabilities, Impairment Loss on Goodwill and Impairment Treatment of Shares in a Consolidated Subsidiary, Among Other Items |
| Subject Entity | The Company (MicroAd,Inc.) and consolidated subsidiary PT Mahakarya Adi Indonesia |
| Cause | Assessment of the recoverability of deferred tax assets based on the outlook for future business performance and other factors; efforts to improve capital efficiency and the dividend policy in light of the expansion of overseas operations; a review of the plan due to changes in the business environment and other factors, resulting in the loss of expected earnings; a significant decline in the substantial value of shares in a subsidiary; and assessment of the recoverability of loans receivable |
| Amount of Impact on Business Performance | Deferred tax assets of ¥212 million and ¥222 million, deferred tax liabilities of ¥201 million, goodwill impairment loss of ¥280 million, loss on valuation of shares in a subsidiary of ¥67 million, and provision for doubtful accounts of ¥291 million. The loss on valuation of shares in a subsidiary and the provision for doubtful accounts have no impact on the consolidated income statement. |
| Accounting period in which recognized | Fiscal year ending September 2026 (1 October 2025 to 30 September 2026) |
| Impact on Earnings Forecast | Reflected in the "Summary of Financial Results for the Fiscal Year Ended September 2026 [Japanese GAAP] (Consolidated)" announced today. Impact on revisions to the earnings forecast: Not disclosed |
| Amount of receivables at risk of non-collection or delayed collection | Provision for doubtful accounts of ¥291 million for loans receivable from PT Mahakarya Adi Indonesia |
| Outlook | The recognition of the deferred tax assets, deferred tax liabilities and goodwill impairment loss described above has been reflected in the "Summary of Financial Results for the Fiscal Year Ended September 2026 [Japanese GAAP] (Consolidated)" announced today. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Additional deferred tax assets were recognized following an assessment of recoverability based on the outlook for future business performance and other factors. Deferred tax liabilities were recognized due to efforts to improve capital efficiency in light of the expansion of overseas operations and future tax burdens associated with the dividend policy for dividends from subsidiaries to the parent company. Goodwill was impaired because the review of the plan, based on changes in the business environment and other factors, showed that the earnings initially anticipated could no longer be expected. The shares in the subsidiary were impaired because their substantial value had fallen significantly, while a provision for doubtful accounts was recognized following an assessment of the recoverability of the loans receivable.