We’ve learned (via Hachima Kikou) that all of the bad rumors surrounding Imageepoch turned out to be true – the company has declared bankruptcy.

The Japanese developer and their affiliate Smile Online Game have declared bankruptcy, with a debt of roughly 1.1 billion yen (about $11 million) and 3 million yen ($30,000), respectively. The report says that Imageepoch owes debt to 43 creditors, while Smile Online Game is only indebted to 5.

In 2011, Imageepoch brought in roughly 1.751 billion yen (about $17.5 million) in regular income. However, this number plummeted to 410 million yen (about $4.1 million) in 2013, and the company went into debt because of their game development costs, and missing their sales targets. As the situation grew dire, the company stopped operations as of November of last year.

Despite this, Stella Glow, which is possibly the last game from the developer, was picked up by SEGA to be published in Japan next month – as well as Atlus for a North American release later this year.

Imageepoch’s CEO, Ryoei Mikage, is still missing.