Going-concern risk from continued operating losses and negative operating cash flow
First written in FY2022. 4 of 9 entries say "Mitigated", first in FY2023-Q2. Latest entry: FY2024.
The whole theme swung hardest in 2025: 2 of 11 companies on the "Worse" side.
0 other companies' latest entry also says "Achieved".
- FY2024AchievedAnnual report
「We have determined that the events or conditions giving rise to significant doubt regarding the going-concern assumption have been resolved, as we returned to profitability and significantly improved operating cash flow by maintaining a sales approach focused on earnings while reducing fixed costs through an early-retirement program, reductions and relocations of office space, and the consolidation and closure of overseas sites.」
Regarding the material event relating to the going-concern assumption, the company determined that material doubt had been resolved through fixed-cost reductions, a return to profitability and improved operating cash flow. - FY2024-Q3RestatedAnnual report
「In the previous consolidated fiscal year, our group recorded negative operating cash flow for three consecutive fiscal years. As a result, we recognize that events or conditions exist that raise significant doubt about the going-concern assumption. To resolve this situation at an early stage, our group is working on the “Revitalize Plan (Plan to Restore Profitability).”」
The company reiterated its recognition of the material event arising from consecutive years of negative operating cash flow and its policy of resolving the issue through the Revitalize Plan. Operating cash flow for the cumulative current quarter increased by ¥205 million. - FY2024-Q2MitigatedAnnual report
「In the previous consolidated fiscal year, our group recorded negative operating cash flow for three consecutive fiscal years. As a result, we recognize that events or conditions exist that raise significant doubt about the going-concern assumption. To resolve this situation at an early stage, our group is working on the “Revitalize Plan (Plan to Restore Profitability).”」
Although the company continues to recognize the material event arising from negative operating cash flow for three consecutive fiscal years through the previous consolidated fiscal year, operating cash flow during the cumulative second quarter of the current consolidated fiscal year increased by ¥2,386 million, reaffirming its determination that no material uncertainty exists from a funding perspective. - FY2024-Q1RestatedAnnual report
「The Group reported negative operating cash flow for 3 consecutive fiscal years through the previous consolidated fiscal year, and negative operating cash flow continued in the cumulative first quarter of the current consolidated fiscal year. In light of these circumstances, the Group recognizes that events or conditions exist that raise significant doubt about the going-concern assumption.」
Negative operating cash flow continued into the first quarter following three consecutive fiscal years of negative operating cash flow through the previous consolidated fiscal year, and the company reiterated its recognition of events or conditions that raise significant doubt about the going-concern assumption. At the same time, based on cash and deposits of ¥4,443 million, investment securities of ¥2,993 million, land of ¥16,660 million, net assets of ¥28,899 million and an overdraft facility, it determined that no material uncertainty exists. - FY2023MitigatedAnnual report
「The Group has continued to report negative operating cash flow, for 3 consecutive fiscal years. Although operating income turned positive for the first time in 4 fiscal years in the current consolidated fiscal year, the Group reported a net loss attributable to owners of the parent for the full year.」
Although operating income returned to profitability for the first time in four fiscal years, the company recorded negative operating cash flow for the third consecutive fiscal year and a net loss attributable to owners of the parent, and continues to recognize material doubt regarding the going-concern assumption. - FY2023-Q3MitigatedAnnual report
「The Group has continued to report operating losses, for 3 consecutive fiscal years, through the previous consolidated fiscal year. Although it reported an operating profit in the cumulative third quarter of the current consolidated fiscal year, it continues to expect an operating loss for the current consolidated fiscal year. In light of these circumstances, the Group recognizes that events or conditions exist that raise significant doubt about the going-concern assumption.」
Although the company recorded an operating profit for the cumulative third quarter and its recent operating performance improved, it continues to expect a full-year operating loss and recognize material doubt regarding the going-concern assumption. - FY2023-Q2MitigatedAnnual report
「In the previous consolidated fiscal year, our group recorded operating losses for three consecutive fiscal years. Although the loss narrowed during the cumulative second quarter of the current consolidated fiscal year, we continued to record an operating loss.」
The company stated that it continued to record an operating loss, although the loss narrowed during the cumulative second quarter. It also reiterated its determination, based on cash, investment securities, land and net assets, among other items, that no material uncertainty exists. - FY2023-Q1WorsenedAnnual report
「In light of these circumstances, we recognize that events or conditions exist that raise significant doubt about the going-concern assumption.」
In addition to the three consecutive fiscal years of operating losses reported in the previous consolidated fiscal year, the company recorded an operating loss in the first quarter and stated that it recognizes events or conditions that raise significant doubt about the going-concern assumption. However, based on its funds, assets and net assets, it has determined that no material uncertainty exists. - FY2022First statedAnnual report
「The Group has continued to report operating losses, for 3 consecutive fiscal years, and negative operating cash flow, for 2 consecutive fiscal years.」
The company has, for the first time, separately disclosed three consecutive fiscal years of operating losses and two consecutive fiscal years of negative operating cash flow as material events relating to the going-concern assumption. At the same time, based on its cash and deposits, investment securities, land and net assets, it has determined that no material uncertainty exists regarding the going-concern assumption.