Key Facts
• July 28, 2025: Alt confirmed inflated revenue and released a third-party report.
• 2021 June–2024 December: Revenue overstated by ¥11.9 billion, advertising costs by ¥11.5 billion.
• Circular transactions involved funds cycling through partners and returning as revenue.
• Initiated in April 2020 under former CEO Chikaki Yonekura’s direction.
• June 2021: Yonekura documented methods for fund movement and partner invoicing.
• Advertising costs consolidated to one company to reduce expenses by 2025.
• Third-party committee cited lack of governance and integrity as root causes.
• July 28, 2025: Yonekura resigned; CFO Yusuke Hioki appointed as new CEO.
• Hioki’s involvement in the scheme was also noted by the third-party committee.
Summary
AI startup Alt, known for its meeting transcription software AI GIJIROKU, admitted to inflating its revenue by up to 90% through circular transactions. Between June 2021 and December 2024, the company overstated ¥11.9 billion in revenue, ¥11.5 billion in advertising costs, and ¥1.3 billion in R&D expenses. The scheme, initiated in April 2020 under former CEO Chikaki Yonekura, involved cycling funds through advertising agencies and sales partners to falsely boost revenue. A third-party investigation attributed the misconduct to a lack of governance, integrity, and proper internal controls. On July 28, 2025, Yonekura resigned, and CFO Yusuke Hioki assumed the CEO role, despite his alleged involvement. Alt plans to hold an emergency shareholder meeting to address organizational reforms.
