TOKYO, Jun 26 (Pulse News Wire) – Kubotek Corporation (7709.T) received unqualified opinions not issued for its fiscal year ending March 31, 2026, financial statements and internal control report as of March 31, 2026. The audit firm HIBISCUS found significant uncertainties regarding the company's ability to continue as a going concern due to eight consecutive operating losses and negative cash flows for two consecutive periods.
As of the end of the fiscal year, the backlog of orders for the main business had significantly decreased, and there was no clear plan for future funding. The auditor could not obtain sufficient and appropriate evidence to support the appropriateness of management’s assumption of continuing operations. For the previous fiscal year ended March 31, 2025, the prior auditor issued an unmodified opinion on the standalone and consolidated financial statements on June 27, 2025.
Management and the board of auditors are responsible for ensuring the financial statements comply with generally accepted accounting principles in Japan, while the auditor is responsible for conducting audits according to recognized auditing standards. In response to the unqualified opinions, Kubotek stated it will implement measures to improve performance and secure funds for the upcoming fiscal year. The company deeply regrets the inconvenience caused to shareholders and investors.
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