Execution of a Loan Agreement Containing Financial Covenants
Verite Co.,Ltd. (submitting company)
Borrowings under commitment line agreements and other arrangements with MUFG Bank, Ltd. and Mizuho Bank, Ltd.
We had understood that individual borrowings through rollovers that did not involve any actual movement of funds were outside the scope of timely disclosure. However, we determined that it was appropriate to interpret the contracts as establishing a separate loan agreement for each individual borrowing.
No impact on the company's results from this matter (amount not stated)
No impact on the company's earnings forecasts from this matter
Company response
For borrowings with principal amounts at or above the threshold amount, the company will disclose each borrowing whenever it decides to enter into one.
This matter has no impact on the company's results. Going forward, the company will disclose borrowings with principal amounts at or above the threshold amount whenever it decides to enter into one. Borrowings from MUFG Bank, Ltd. are scheduled to be rolled over every 3 months from 30 October 2026 onward.
For borrowings with principal amounts at or above the threshold amount, the company will disclose each borrowing whenever it decides to enter into one.
| Item | Details |
|---|---|
| Event name | Execution of a Loan Agreement Containing Financial Covenants |
| Date of occurrence | From 30 April 2025 to 30 September 2026 (the execution dates of the 24 individual borrowings listed in the appendix) |
| Subject Entity | Verite Co.,Ltd. (submitting company) |
| Target Locations / Products | Borrowings under commitment line agreements and other arrangements with MUFG Bank, Ltd. and Mizuho Bank, Ltd. |
| Cause | We had understood that individual borrowings through rollovers that did not involve any actual movement of funds were outside the scope of timely disclosure. However, we determined that it was appropriate to interpret the contracts as establishing a separate loan agreement for each individual borrowing. |
| Amount of Impact on Business Performance | No impact on the company's results from this matter (amount not stated) |
| Impact on Earnings Forecast | No impact on the company's earnings forecasts from this matter |
| Measures to prevent recurrence | For borrowings with principal amounts at or above the threshold amount, the company will disclose each borrowing whenever it decides to enter into one. |
| Outlook | This matter has no impact on the company's results. Going forward, the company will disclose borrowings with principal amounts at or above the threshold amount whenever it decides to enter into one. Borrowings from MUFG Bank, Ltd. are scheduled to be rolled over every 3 months from 30 October 2026 onward. |
| Planned follow-up disclosure | For borrowings with principal amounts at or above the threshold amount, the company will disclose each borrowing whenever it decides to enter into one. |
Items this document does not state (15)
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.We had understood that these were outside the scope of timely disclosure because they were rollovers that did not involve any actual movement of funds. However, we determined that it was appropriate to interpret the contracts as establishing a separate loan agreement for each individual borrowing.