BlueMeme Inc.
Notice of Submission of Corrective Report for Internal Control Report
Submitted corrective reports for past internal control reports to the Kanto Local Finance Bureau. The corrections cover internal control reports for fiscal periods 16 through 19 and rectify deficiencies in evaluation results. Based on the Special Investigation Committee's report, improprieties in revenue recognition and subcontracting expense processing were identified. Remedial measures include renewing the management team, strengthening internal controls, improving corporate culture, and reorganizing business processes to prevent recurrence.
Key Figures
- 30,000 thousand yen: Overstatement of revenue recognition and related handling of uncollected/repayment
- 33,500 thousand yen: Case where promissory note-related repayment was processed by increasing subcontracting expenses
- Subject period: Fiscal Periods 16–19 Internal Control Reports (from April 1, 2021 to March 31, 2025)
AI要約
Overview and Causes
This matter concerns identification of significant deficiencies in past internal control reports and submission of corrective reports. The Special Investigation Committee revealed fraudulent revenue recognition and improper handling of subcontracting expenses, requesting corrections to accounting treatments from the fiscal year 2021 onward. Transactions led by top management and inappropriate concealment of related documents were pointed out, and defects in the financial reporting process were recognized.
Planned Responses and Remedial Measures
Announced remedial measures focusing on renewing the management structure, strengthening the internal audit framework, improving corporate culture, and reorganizing business processes. Measures to be implemented or planned include changing the representative director, increasing the number of outside directors to a majority, strengthening the checking function of the Audit and Supervisory Committee, improving the operation of the whistleblower system, reinforcing contract management, and introducing a system for prior review of price reasonableness.
BlueMeme Inc.
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