Sohgo Security discloses material weakness in internal controls

Sohgo Security Services announced that it identified a material weakness in its internal controls over financial reporting, as detailed in its internal control report submitted today to the Kanto Local Finance Bureau. The weakness stems from errors in data entry related to retirement lump-sum payments within the company and four consolidated subsidiaries, impacting financial results from the fiscal year ended March 2020 through March 2024. While the amount of the retirement benefit obligations was appropriately estimated, incorrect input of the calculation results caused the errors. The company restated past financial statements and filed amended reports on May 13, 2025. The company intends to strengthen its internal controls by improving the expertise of the accounting department and reinforcing the checking system for key accounts. All necessary corrections resulting from this deficiency have been reflected in the restated consolidated financial statements and financial statements for the relevant years. The audit opinions on the restated financials were unqualified. The material weakness has not been remediated as of today's filing of the FY2025/3 securities report and internal control report.