TOKYO, Apr 30 (Pulse News Wire) – V-cube,inc. (3681.T) disclosed significant deficiencies in its internal controls over financial reporting for the fiscal year ending December 31, 2025.
According to the filing submitted to the Kanto Finance Bureau, the company’s board failed to adequately supervise TEN Holdings, Inc.’s operations, leading to unauthorized payments totaling approximately $5.4 million without requisite approvals. Additionally, V-cube struggled to manage TEN's complex accounting processes due to insufficient staffing and expertise, resulting in delays in financial reporting. The company acknowledged that these issues contributed to the delay in submitting its financial statements and securities reports.
A special investigation committee was established on April 24, 2026, to review these matters, while TEN continues to cooperate with ongoing investigations by US authorities related to its initial public offering in February 2025. Due to the ongoing nature of these inquiries, V-cube could not complete the necessary evaluation procedures for its internal control systems as of the fiscal year-end. To address these weaknesses, V-cube plans to implement several measures, including enhancing governance awareness, strengthening subsidiary management within the finance department, reinforcing audit functions, providing training aligned with regulations, and bolstering oversight by external directors.
However, pending the outcome of the investigations, there remains uncertainty regarding potential impacts on the consolidated financial statements.
🟡 Confidence: Standard AI-translated content.