Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 54

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 54
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, or a combination of deficiencies, in internal control over financial reporting,

such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements

will not be prevented or detected on a timely basis. A “significant deficiency” is a deficiency, or a combination of

deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important

enough to merit attention by those responsible for oversight of our financial reporting.

In connection with the preparation of our consolidated financial statements for the year ended March 31,

2023, we identified a material error related to the accounting for Marketplace transaction revenue recognition and

therefore restated our financial statements for the years ended March 31, 2021 and 2022. We had reconsidered

during our fiscal year ended March 31, 2023 our accounting policy for Marketplace platform transactions, and

reconsideration of the policy for revenue recognition was determined appropriate based upon the development of

interpretive guidance across the blockchain and digital asset industry, as well as information obtained from

conversations with our auditors, third-party consultants, and other relevant parties. Based on this reconsideration, we

determined that use of the former accounting policy had resulted in a material misstatement of Coincheck’s

marketplace transaction revenue and costs of sales for the years ended March 31, 2021 and 2022, which required our

restatement. We applied the corrected accounting policy for transaction revenue recognition in our audited financial

statements for the year ended March 31, 2023, and have continued to do so thereafter, including for this report.

Management has concluded that, even though the corrected accounting policy for transaction revenue recognition

has been applied beginning with our year-end financial statements for the year ended March 31, 2023, the material

weakness has not been completely remediated. Management’s remediation program, which includes actively

monitoring and staying informed of the latest accounting practices related to crypto assets among SEC registrants,

has not been completed and operating for a sufficient period of time while we have been a publicly traded company

(i. e., since December 11, 2024), and therefore our internal control over financial reporting was not effective in this

regard as of March 31, 2025. We intend to complete the remediation process during our current fiscal year, but we

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cannot provide assurances that we will be successful or prevent additional material weaknesses or significant

deficiencies