TOKYO, Jul 02 (Pulse News Wire) – Logly,inc. (6579.T) disclosed a material weakness in its internal controls related to financial reporting based on the filing submitted to the Kanto Finance Bureau on June 30, 2026.
The issue arose due to the receipt of dividend payments totaling ¥110 million from subsidiary moto Co., Ltd., which was later found to require cancellation and reduction of the carrying value of the shares held. Additionally, multiple errors were identified during the audit process of the fiscal year ended March 2026, leading to delays in the financial statement preparation and inability to present the final accounts at the annual shareholders’ meeting held on June 24, 2026. The primary causes of these issues include insufficient resources and expertise within the accounting department, inadequate documentation of monthly and closing procedures, and lack of thorough review mechanisms.
As a result, the company could not rectify these deficiencies by the end of the fiscal year. To address these weaknesses, Logly,inc. plans to implement several corrective measures, including enhancing the accounting team through recruitment, improving documentation of operational procedures, and ensuring more rigorous oversight and timely discussions with auditors to streamline the auditing schedule.
Despite these challenges, the company’s financial statements and consolidated financial statements reflect the necessary adjustments accurately, and the audit opinion remains unqualified.
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