Material doubt regarding the going-concern assumption
First written in FY2016. 2 of 5 entries say "Mitigated", first in FY2017-Q1. Latest entry: FY2017.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
16 other companies' latest entry also says "Dropped".
- FY2017DroppedAnnual report
「Operating income was ¥135 million, compared with an operating loss of ¥600 million in the same period of the previous year, and ordinary income was ¥127 million, compared with an ordinary loss of ¥519 million in the same period of the previous year.」
The latest annual securities report contains no statement regarding significant doubt or material uncertainty about the going concern assumption, and both operating income and ordinary income have returned to profitability. - FY2017-Q3RestatedAnnual report
「However, because the company is implementing the measures described in “3. Analysis of Financial Position, Operating Results and Cash Flows (7) Significant Events, etc.” to resolve or improve these events or conditions, it has determined that no material uncertainty regarding the going concern assumption is recognized.」
Although operating and quarterly net losses were still recorded, the company has maintained its determination that no material uncertainty exists, citing various customer acquisition initiatives, RIZAP's marketing expertise, expense reductions, and funding secured through the private placement and the sale of the head office land and building. - FY2017-Q2MitigatedAnnual report
「In addition, the company raised ¥2.750 billion in July 2016 through a private placement approved at its annual general meeting held on 28 June 2016 for RIZAP Group, Inc. (former corporate name: Kenko Corporation), and received proceeds of ¥3.201 billion from the sale of the head office land and building in September 2016. It has therefore determined that no material uncertainty regarding the going concern assumption is recognized.」
Although operating and quarterly net losses were still recorded, the company determined that no material uncertainty regarding the going concern assumption was recognized because ¥2.750 billion was raised through the private placement and ¥3.201 billion in proceeds was realized from the sale of the head office land and building. - FY2017-Q1MitigatedAnnual report
「The company recorded an operating loss of ¥600 million and a net loss attributable to owners of the parent of ¥3.706 billion in the previous consolidated fiscal year, and also recorded an operating loss of ¥690 million and a quarterly net loss attributable to owners of the parent of ¥898 million in the cumulative first quarter. In light of these circumstances, it recognizes that events or conditions exist that may raise significant doubt about the going concern assumption. However, it has determined that no material uncertainty regarding the going concern assumption is recognized.」
Although operating and net losses have continued, the company has determined that no material uncertainty exists based on initiatives to acquire new customers, expense reductions, planned proceeds from the sale of the head office land and building, and completion of payment for the private placement. - FY2016MaterialisedAnnual report
「In light of these circumstances, we recognize that events or conditions exist that may raise significant doubt about the going concern assumption.」
The company itself states that significant doubt about the going concern assumption exists against the backdrop of operating and net losses in the previous fiscal year and the current consolidated fiscal year. At the same time, it describes measures to improve conditions and secure funding, including initiatives to acquire new customers, expense reductions, the sale of the head office land and building, and a private placement.