ARDEPRO : Notice Concerning Allocation of Special Losses 102KB

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News Release: ARDEPRO Co., Ltd.

(8925 TSE Standard)

December 15, 2023

Notice Concerning Allocation of Special Losses

ARDEPRO Co., Ltd. ("the Company") has allocated special losses for the consolidated first quarter of the July 2024 fiscal year (August 1 to October 31, 2023) as follows.

1. Content of Special Losses Allocations

Following verification of the recoverable amount of goodwill balance for our consolidated subsidiaries, Nihon Jutaku Kaihatsu TMK and Aspa Company Limited, a total of 7.16 million yen in diminution processing was implemented and allocated as special losses.

2. Reason

When the Company evaluated the goodwill, the decision was made to allocate it as diminution losses. In addition, as noted in the "Notification Regarding the Disclaimer of Conclusions in the Quarterly Review Report" release issued today, the Company's auditors, Frontier Auditing Corporation, have pointed out at they were unable to acquire sufficient and appropriate auditing evidence to clarify whether material misstatements are present in the start-of-term goodwill balance audit for the start of the fiscal year.

3. Effects on Business Performance

The effects of the aforementioned special losses allocation are applied in the "Consolidated Financial Results for the Three Months Ended October 31, 2023 (Under Japanese GAAP)" announced today. Impact on the financial results forecast for the fiscal year ending July 2024 is currently under investigation, with an official announcement of new values planned for September 29, 2023. If further revisions to the business results forecast are needed, the Company will issue notifications promptly.

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