V-cube Flags Material Weaknesses in Internal Controls Tied to U.S. Subsidiary TEN

V-cube ( (JP:3681) ) has shared an update.

V-cube has disclosed that its internal control over financial reporting for the year ended December 31, 2025, was not effective, citing material weaknesses and an inability to reach a conclusion on its internal control evaluation. The company highlighted serious deficiencies in board oversight that allowed its former representative director to promise financial support to U.S. subsidiary TEN Holdings without board approval, as well as structural overreliance on that individual that undermined checks-and-balances.

The company also reported vulnerabilities in subsidiary management and closing processes after it decided to deconsolidate TEN while still being responsible for timely consolidated reporting, leading to significant delays in identifying key facts, gathering evidence, and performing complex U.S. GAAP accounting work. Ongoing probes by an independent Special Investigation Committee and U.S. authorities into TEN’s consulting fee payments and its NASDAQ IPO have prevented V-cube from completing internal control evaluation procedures, and the group now plans remediation and recurrence-prevention measures to restore the reliability of its financial reporting.

More about V-cube

V-cube, Inc. is a Japan-based company listed on the Tokyo Stock Exchange Prime Market that provides technology-driven services, with operations that include overseas subsidiaries such as TEN Holdings in the United States. The group’s activities involve complex financial reporting requirements, including U.S. GAAP accounting and oversight of a NASDAQ-listed subsidiary, which heighten its governance and internal control demands.

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