■Performance and financial status
2. financial status
The total assets of Kubota Pharmaceutical Holdings＜4596＞ at the end of the 2023/12 fiscal year decreased 1,402 million yen from the end of the previous fiscal year to 3,016 million yen. Looking at the main factors of change, current assets, cash and cash equivalents decreased by 1,281 million yen to 2,767 million yen due to expenditure of business activity funds, and inventory assets increased by 29 million yen to 36 million yen. Also, in terms of non-current assets, tangible fixed assets decreased by 74 million yen and other non-current assets by 16 million yen, respectively.
Total liabilities decreased by 100 million yen from the end of the previous fiscal year to 370 million yen. Lease debt decreased by 5 million yen to 142 million yen, both long and short, while unpaid debt decreased by 84 million yen and accounts payable decreased by 8 million yen, respectively. Also, total capital decreased by 1,302 million yen from the same period to 2,646 million yen. While capital and capital surpluses increased by 185 million yen due to stock issuance due to the exercise of stock acquisition rights, etc., carryforward losses expanded due to the recording of net losses of 1,489 million yen attributable to owners of the parent company.
Cash on hand at the end of the 2023/12 fiscal year continues to decline to 2,767 million yen, but funds for business activities for about 2 years have been secured. Currently, funds are being raised through the exercise of the 28th Stock Acquisition Rights, and 16 million yen was newly raised in 2024/2. The number of unexercised stock acquisition rights is 50,367 (equivalent to 5036,700 shares in terms of number of shares), and if all were exercised at a lower exercise price of 81 yen, it would be possible to raise about 400 million yen. However, until “Kubota Glass” is monetized, sales/marketing costs, clinical trial costs to build up evidence, additional development costs, etc. are required, and it is also necessary to assume development costs related to other pipelines. Therefore, it is expected that capital raising in the stock market will continue for a while while determining the status of cash on hand. In order to increase corporate value under these circumstances, we believe it is important to expand sales by improving the brand power of “Kubota Glass” and for the “eyeMo” and emixstat hydrochloride businesses to start moving towards monetization, and we would like to keep an eye on future trends.
(Author: FISCO Visiting Analyst Joe Sato)