Going-concern risk due to operating losses and negative net assets
First written in FY2016-Q3. 20 of 34 entries say "Mitigated", first in FY2017-Q1. Latest entry: 2026-09-18.
The whole theme swung hardest in 2020: 2 of 9 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Net assets increased by ¥108 million from the end of the previous fiscal year, mainly due to the recognition of interim net income and an increase in deferred hedge gains and losses, and stood at ¥1.101 billion.」
The Company recorded interim net income of ¥88 million, and net assets increased from ¥993 million at the end of the previous fiscal year to ¥1.101 billion. The financial position related to going-concern risk improved further. - FY2025MitigatedAnnual report
「Net assets increased by ¥190 million from the end of the previous fiscal year, mainly due to the recognition of net income of ¥148 million, and stood at ¥993 million.」
No matters concerning the going-concern assumption were applicable. The Company recorded net income for the full year, and net assets increased to ¥993 million. - FY2025-H1MitigatedAnnual report
「During the current interim accounting period, net sales amounted to ¥10.254 billion, compared with ¥9.571 billion in the same period of the previous year. Operating income was ¥127 million, compared with ¥105 million, ordinary income was ¥93 million, compared with ¥80 million, and interim net income was ¥80 million, compared with ¥60 million.」
Operating income, ordinary income and interim net income all exceeded the corresponding figures for the previous period, while net assets increased from ¥802 million at the end of the previous fiscal year to ¥913 million. Earnings and financial condition related to going-concern risk improved. - FY2024RestatedAnnual report
「(Matters concerning the going-concern assumption) Not applicable.」
No note concerning the going-concern assumption was included for the fiscal year, and no new emergence of going-concern risk was disclosed. - FY2024-Q2MitigatedAnnual report
「As a result, net sales for the cumulative second-quarter period amounted to ¥9.571 billion, up ¥5 million from the same period of the previous year. Operating income was ¥105 million, compared with an operating loss of ¥0 million, ordinary income was ¥80 million, compared with an ordinary loss of ¥34 million, and quarterly net income was ¥60 million, compared with a quarterly net loss of ¥38 million.」
The Company returned to profitability at all levels from an ordinary loss and quarterly net loss in the same period of the previous year, while net assets increased from ¥688 million at the end of the previous fiscal year to ¥745 million. Earnings and financial condition related to going-concern risk improved. - FY2024-Q1MitigatedAnnual report
「As a result, net sales for the cumulative first-quarter period amounted to ¥4.417 billion, down 10.5% from the same period of the previous year. Operating income was ¥64 million, up 223.9%, ordinary income was ¥49 million, compared with an ordinary loss of ¥34 million in the same period of the previous year, and quarterly net income was ¥39 million, compared with a quarterly net loss of ¥34 million.」
The Company moved from an ordinary loss and quarterly net loss in the same period of the previous year to ordinary income of ¥49 million and quarterly net income of ¥39 million in the current first quarter. Net assets also increased from ¥688 million at the end of the previous fiscal year to ¥689 million, indicating some improvement in earnings and financial condition related to going-concern risk. - FY2023-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new business risks and no material changes to the business risks described in the securities report for the previous fiscal year. Matters relating to material events and circumstances concerning the going-concern assumption: Not applicable.」
No new business risks or material changes to existing risks were identified, and no material events or circumstances concerning the going-concern assumption were applicable. - FY2023-Q1RestatedAnnual report
「Matters relating to material events and circumstances concerning the going-concern assumption Not applicable.」
The current first-quarter report did not disclose any material events or circumstances concerning the going-concern assumption. - FY2022-Q3MitigatedAnnual report
「However, considering that the Company has been granted relief from enforcement of loan terms by financial institutions and that cash and deposits at the end of the current third-quarter accounting period amounted to ¥411 million, although this reflected a temporary increase in demand for working capital, the Company determined that it had sufficient funds necessary for operations during the fiscal year and no concern regarding liquidity over the near term. Accordingly, it determined that no material uncertainty related to the going-concern assumption existed.」
Material events related to the impact of COVID-19 and limited net assets continued to be disclosed. However, during the cumulative third-quarter period, the Company recorded operating income of ¥291 million, ordinary income of ¥295 million and quarterly net income of ¥241 million, while net assets increased to ¥368 million. The conclusion that no material uncertainty existed continued, based on the relief from enforcement of loan terms granted by financial institutions. - FY2022-Q2MitigatedAnnual report
「However, considering that the Company has been granted relief from enforcement of loan terms by financial institutions and that cash and deposits at the end of the current second-quarter accounting period amounted to ¥498 million, although this reflected a temporary increase in demand for working capital, the Company determined that it had sufficient funds necessary for operations during the fiscal year and no concern regarding liquidity over the near term. Accordingly, it determined that no material uncertainty related to the going-concern assumption existed.」
Material events related to going concern continued to exist, but the Company recorded operating income of ¥132 million, ordinary income of ¥120 million and quarterly net income of ¥79 million during the cumulative second-quarter period, and net assets increased to ¥190 million. The conclusion that no material uncertainty existed continued. - FY2022-Q1MitigatedAnnual report
「In the previous fiscal year, despite the impact of COVID-19, the Company recorded operating income of ¥224 million, ordinary income of ¥171 million and net income of ¥113 million, due in part to a substantial increase in demand for its principal food-related products. Negative net assets were eliminated through a third-party allocation of shares, but net assets remained at only ¥103 million. Because the impact of COVID-19 remained uncertain, events or circumstances that raised substantial doubt about the going-concern assumption continued to exist at the end of the current first-quarter accounting period.」
Although material events related to going concern continued to be disclosed, the Company recorded operating income of ¥175 million, ordinary income of ¥162 million and quarterly net income of ¥136 million for the quarter, and net assets increased from ¥103 million at the end of the previous fiscal year to ¥234 million. The conclusion that no material uncertainty existed also continued, based on the relief from enforcement of loan terms granted by financial institutions. - FY2021WorsenedAnnual report
「In fiscal year 81, despite the impact of COVID-19, the Company recorded operating income of ¥224 million, ordinary income of ¥171 million and net income of ¥113 million, due in part to a substantial increase in demand for its principal food-related products. Negative net assets were eliminated through a third-party allocation of shares, but net assets remained limited at ¥103 million. Because the impact of COVID-19 remained uncertain, events or circumstances that raised substantial doubt about the going-concern assumption continued to exist.」
The Company returned to profitability for the full year and eliminated its negative net assets through a third-party allocation of shares. However, net assets remained limited at ¥103 million, and material events related to going concern were again expressly disclosed due to the uncertainty surrounding the impact of COVID-19. The conclusion that no material uncertainty existed was maintained based on the relief from enforcement of loan terms granted by financial institutions. - FY2021-Q3MitigatedAnnual report
「However, considering that the Company has been granted relief from enforcement of loan terms by financial institutions and that cash and deposits amounted to ¥1.416 billion at the end of the third-quarter accounting period, the Company determined that it had sufficient funds necessary for operations during the fiscal year and no concern regarding liquidity over the near term. Accordingly, it determined that no material uncertainty related to the going-concern assumption existed.」
The material events related to going concern and negative net assets continued to exist, but the Company recorded operating income of ¥108 million, ordinary income of ¥77 million and quarterly net income of ¥72 million during the cumulative third-quarter period. Negative net assets also narrowed from ¥158 million at the end of the previous fiscal year to ¥82 million. The conclusion that no material uncertainty existed continued, based on the relief from enforcement of loan terms and cash and deposits of ¥1.416 billion. - FY2021-Q2MitigatedAnnual report
「Net assets decreased by ¥5 million from the end of the previous fiscal year, resulting in negative net assets of ¥163 million.」
Negative net assets continued, but narrowed from ¥171 million at the end of the previous quarter to ¥163 million. The operating loss of ¥5 million, ordinary loss of ¥20 million and quarterly net loss of ¥10 million also narrowed year on year. However, material events related to going concern continued to exist. - FY2021-Q1WorsenedAnnual report
「In the previous fiscal year, due in part to the impact of COVID-19 and the substantial decline in demand for the Company’s principal food-related products, the Company recorded an operating loss of ¥267 million, an ordinary loss of ¥323 million and a net loss of ¥391 million. As a result, it had negative net assets of ¥158 million, and events or circumstances that raised substantial doubt about its ability to continue as a going concern continued to exist at the end of the current first-quarter accounting period.」
The material events related to going concern continued to exist at the end of the quarter, and negative net assets widened from ¥158 million at the end of the previous fiscal year to ¥171 million. However, the Company maintained its conclusion that no material uncertainty related to the going-concern assumption existed, based on the relief from enforcement of loan terms granted by financial institutions. - FY2020MaterialisedAnnual report
「In fiscal year 80, due in part to the impact of COVID-19 and the substantial decline in demand for the Company’s principal food-related products, the Company recorded an operating loss of ¥267 million, an ordinary loss of ¥323 million and a net loss of ¥391 million. As a result, it had negative net assets of ¥158 million, and events or circumstances existed that raised substantial doubt about its ability to continue as a going concern.」
The full-year operating, ordinary and net losses and negative net assets were primarily caused by the decline in demand resulting from COVID-19, and substantial doubt about the going-concern assumption was again expressly disclosed. However, after considering the granting of relief from enforcement of loan terms by financial institutions and cash and deposits of ¥1.470 billion, the Company determined that no material uncertainty existed. - FY2020-Q3WorsenedAnnual report
「Net assets decreased by ¥224 million from the end of the previous fiscal year, mainly due to the quarterly net loss, and stood at ¥12 million. The equity ratio was 0.1%, a decrease of 2.3 percentage points from the end of the previous fiscal year.」
Following the recognition of a quarterly net loss of ¥222 million, net assets declined from ¥237 million at the end of the previous fiscal year to ¥12 million, and the equity ratio fell to 0.1%. Operating, ordinary and net losses were also recorded, further weakening the financial condition related to going-concern risk. - FY2020-Q2WorsenedAnnual report
「As a result, net sales for the cumulative second-quarter period amounted to ¥8.046 billion, down 8.7% from the same period of the previous year. The Company recorded an operating loss of ¥106 million, compared with an operating loss of ¥54 million, an ordinary loss of ¥128 million, compared with an ordinary loss of ¥91 million, and a quarterly net loss of ¥130 million, compared with a quarterly net loss of ¥93 million.」
Operating, ordinary and quarterly net losses widened year on year. Net assets also declined from ¥237 million at the end of the previous fiscal year to ¥104 million, and the equity ratio fell to 1.1%. Earnings and financial condition related to going-concern risk deteriorated. - FY2020-Q1MitigatedAnnual report
「As a result, net sales for the cumulative first-quarter period amounted to ¥4.319 billion, up 5.6% from the same period of the previous year. The Company recorded an operating loss of ¥16 million, compared with an operating loss of ¥71 million, an ordinary loss of ¥30 million, compared with an ordinary loss of ¥94 million, and a quarterly net loss of ¥30 million, compared with a quarterly net loss of ¥95 million.」
Operating, ordinary and quarterly net losses continued, but each loss narrowed year on year. Net assets remained positive at ¥205 million. - FY2019RestatedAnnual report
「(Matters related to the going-concern assumption) Not applicable.」
No note regarding the going-concern assumption was included for the fiscal year, and there was no disclosure that a going-concern risk had newly emerged. - FY2019-Q3MitigatedAnnual report
「As a result, net sales for the cumulative third-quarter period amounted to ¥14.290 billion, down 4.3% year on year; operating income amounted to ¥26 million, down 68.4%; ordinary loss amounted to ¥31 million, compared with ordinary income of ¥22 million; and quarterly net loss amounted to ¥34 million, compared with quarterly net income of ¥19 million.」
The Company returned to operating profitability, and its ordinary and net losses narrowed from the cumulative second-quarter period. Net assets also recovered from ¥196 million at the end of the second quarter to ¥228 million. However, ordinary and net losses continued, and the filing did not state that the going-concern risk had been resolved. - FY2019-Q2WorsenedAnnual report
「As a result, net sales for the cumulative second-quarter period amounted to ¥8.819 billion, down 11.1% year on year; operating loss amounted to ¥54 million, compared with operating income of ¥7 million; ordinary loss amounted to ¥91 million, compared with ordinary loss of ¥37 million; and quarterly net loss amounted to ¥93 million, compared with quarterly net loss of ¥38 million.」
The Company incurred operating, ordinary and quarterly net losses, while net assets declined from ¥288 million at the end of the previous fiscal year to ¥196 million. Earnings and financial conditions relevant to going-concern risk deteriorated. - FY2019-Q1WorsenedAnnual report
「Net sales for the cumulative first-quarter period amounted to ¥4.090 billion, down 23.7% year on year; operating loss amounted to ¥71 million, compared with operating income of ¥42 million in the same period of the previous year; ordinary loss amounted to ¥94 million, compared with ordinary income of ¥21 million; and quarterly net loss amounted to ¥95 million, compared with quarterly net income of ¥18 million.」
The Company moved from operating, ordinary and quarterly net income in the first quarter of the previous fiscal year to operating, ordinary and net losses in the current first quarter. Net assets also declined from ¥288 million at the end of the previous fiscal year to ¥169 million. However, no new uncertainty regarding the going-concern assumption was disclosed in this quarterly report. - FY2018RestatedAnnual report
「(Matters related to the going-concern assumption) Not applicable.」
No note regarding the going-concern assumption was included, and the going-concern risk that had been alleviated by the previous fiscal year has not re-emerged. - FY2018-Q3MitigatedAnnual report
「As a result, net sales for the cumulative third-quarter period amounted to ¥14.943 billion, down 14.2% year on year; operating income amounted to ¥83 million, down 79.5%; ordinary income amounted to ¥22 million, down 93.7%; and quarterly net income amounted to ¥19 million, down 94.0%.」
The Company returned to positive operating, ordinary and net income in the cumulative third-quarter period after recording an ordinary loss and a quarterly net loss in the cumulative second-quarter period. However, all profit measures declined substantially year on year. - FY2018-Q2WorsenedAnnual report
「As a result, net sales for the cumulative second-quarter period amounted to ¥9.921 billion, down 8.0% year on year; operating income amounted to ¥7 million, down 96.5%; ordinary loss amounted to ¥37 million, compared with ordinary income of ¥194 million in the same period of the previous year; and quarterly net loss amounted to ¥38 million, compared with quarterly net income of ¥175 million in the same period of the previous year.」
Although the Company remained profitable at the operating level, it incurred an ordinary loss and a quarterly net loss, while net assets declined from ¥298 million at the end of the previous fiscal year to ¥197 million. No new material uncertainty regarding the going-concern assumption was disclosed in this filing. - FY2017MitigatedAnnual report
「The events and conditions that had raised substantial doubt about the going-concern assumption during the 76th fiscal year have also been resolved.」
In the 77th fiscal year, the Company recorded operating income of ¥401 million, ordinary income of ¥337 million and net income of ¥301 million, while net assets recovered to ¥298 million. The Company expressly stated that the events and conditions that had raised substantial doubt about its ability to continue as a going concern had been resolved. - FY2017-Q3MitigatedAnnual report
「Based on the foregoing, the Company has determined that no material uncertainty exists regarding the going-concern assumption. Net sales for the cumulative third-quarter period amounted to ¥17.420 billion, while the Company recorded operating income of ¥406 million, ordinary income of ¥361 million and quarterly net income of ¥318 million. Net assets also amounted to ¥303 million.」
The operating, ordinary and net losses and negative net assets from the 76th fiscal year continue to be disclosed as material events. However, all levels of profit were positive in the cumulative third-quarter period and net assets remained positive, so the determination that no material uncertainty exists regarding the going-concern assumption continues. - FY2017-Q2MitigatedAnnual report
「Based on the foregoing, the Company has determined that no material uncertainty exists regarding the going-concern assumption. Net sales for the cumulative second-quarter period amounted to ¥10.791 billion, while the Company recorded operating income of ¥221 million, ordinary income of ¥194 million and quarterly net income of ¥175 million. Net assets also amounted to ¥140 million.」
The Company continues to disclose the operating and ordinary losses and negative net assets from prior years as material events. However, all levels of profit were positive in the cumulative second-quarter period, and net assets remained positive, so the determination that no uncertainty exists regarding the going-concern assumption continues. - FY2017-Q1MitigatedAnnual report
「Based on the foregoing, the Company has determined that no material uncertainty exists regarding the going-concern assumption. Although net sales for the cumulative first-quarter period amounted to ¥5.1 billion, the Company recorded operating income of ¥67 million, ordinary income of ¥69 million and quarterly net income of ¥66 million. Net assets also amounted to ¥72 million.」
The events involving operating, ordinary and net losses and negative net assets in the 76th fiscal year continue to be disclosed. However, all levels of profit were positive in the first quarter and net assets recovered to a positive balance, resulting in a change in the determination that no material uncertainty exists regarding the going-concern assumption. - FY2016-Q3MaterialisedAnnual report
「The Company recorded an operating loss of ¥454 million, an ordinary loss of ¥528 million and a quarterly net loss of ¥530 million. In addition, due to the impact of the stronger yen, the Company recorded a deferred hedge loss of ¥130 million, resulting in net assets of negative ¥317 million. Accordingly, events or conditions exist that raise substantial doubt about the Company's ability to continue as a going concern.」
The Company incurred operating, ordinary and net losses and became overleveraged during the quarter, and disclosed material doubt regarding its ability to continue as a going concern. However, after implementing countermeasures, it determined that no material uncertainty existed regarding the going-concern assumption.