Riyadh – Mubasher: Arab Sea Information Systems Company announced that its accumulated losses have reached SAR 21.45 million as of 31 March 2026.
The amount represents 21.45% of the company’s SAR 100 million worth of total share capital, according to a bourse disclosure.
This financial milestone, disclosed following the financial results for the first quarter (Q1) period, triggers specific regulatory procedures mandated by the Saudi Capital Market Authority (CMA) for listed companies exceeding the 20% loss threshold.
Meanwhile, this breach of the set threshold is a significant event for the company, as it necessitates a set of mandatory transparency and reporting requirements designed to provide clarity to shareholders regarding the firm's financial stability.
According to the company’s management, the primary drivers behind the accumulated losses are tied to two major financial factors. First, the company reported substantial losses from its subsidiary entities, which totaled SAR 33.61 million.
These subsidiary-level losses are attributed to several key areas, including the initial expenses incurred during the establishment and pre-operating phases of these businesses.
Furthermore, Arab Sea Information Systems recognized a provision for the impairment of intangible assets within these subsidiaries, reflecting a downward adjustment in the carrying value of non-physical assets on the balance sheet.
The second major factor contributing to the fiscal deficit is a significant provision for expected credit losses, which amounted to SAR 29.02 million. This provision is a standard accounting measure used to account for potential non-payment or defaults on receivables, directly impacting the company’s net income and contributing to the overall erosion of its capital base.
