| RELATED PARTY TRANSACTIONS |
NOTE 12 – RELATED PARTY TRANSACTIONS
The Company’s relationships with related
parties who had transactions with the Company are summarized as follows:
| Name of Related Party | | Relationship to the Company | | Mr. Mei Kanayama | | Representative director, director, and controlling shareholder | | DinnerBank Co., Ltd. (“DinnerBank”) | | An entity of which Mr. Kanayama’s wife is a director and the representative director | | Palpito | | An equity investment entity of the Company, which was sold to DinnerBank on June 30, 2023. | | Shintai Co., Ltd. | | The entity’s representative director is Mr. Kanayama’s wife before April 30, 2023. | | Tokushin G.K. | | A shareholder of the Company. | | Crossing Cards | | An equity investment entity of the Company | | Takuetsu Kokusai Co., Ltd. | | The entity’s representative director is Mr. Kanayama’s wife |
| a. | Accounts receivable, net – related parties | | | | | Accounts receivable, net – related parties consisted of the following: |
| Name | |
March 31,
2025 | | |
March 31,
2024 | |
| DinnerBank | |
$ | 105 | | |
$ | 25,704 | |
| Takuetsu Kokusai Co., Ltd. | |
| 12 | | |
| - | |
| Subtotal | |
| 117 | | |
| 25,704 | |
| Less: allowance for credit losses | |
| - | | |
| - | |
| Total accounts receivable, net –related parties | |
$ | 117 | | |
$ | 25,704 | |
| b. | Due from related parties | | | | | Due from related parties consisted of the following: |
| Name | |
March 31,
2025 | | |
March 31,
2024 | |
| Takuetsu Kokusai Co., Ltd. | |
$ | 732 | | |
$ | - | |
| DinnerBank | |
| 476 | | |
| 9,762 | |
| Total due from related parties | |
$ | 1,208 | | |
$ | 9,762 | |
| c. |
Accounts payable – related parties |
Accounts payable – related parties consisted
of the following:
| Name | |
March 31,
2025 | | |
March 31,
2024 | |
| DinnerBank | |
$ | 2,678,588 | | |
$ | 299,541 | |
| Total accounts payable –related parties | |
$ | 2,678,588 | | |
$ | 299,541 | |
| d. |
Due to related parties |
Due to related parties consisted of the following:
| Name | |
March 31,
2025 | | |
March 31,
2024 | |
| Mr. Mei Kanayama | |
$ | 13,930 | | |
$ | 29,716 | |
| DinnerBank | |
| 10,420 | | |
| 13,227 | |
| Tokushin G.K. | |
| 3,328 | | |
| - | |
| Total due to related parties | |
$ | 27,678 | | |
$ | 42,943 | |
| e. | Sales to related parties |
| | |
For the Fiscal Years Ended March 31, | |
| Name | |
2025 | | |
2024 | | |
2023 | |
| DinnerBank | |
$ | 7,840,934 | | |
$ | 5,992,219 | | |
$ | 642,018 | |
| Shintai Co., Ltd. | |
| - | | |
| - | | |
| 113,559 | |
| Palpito | |
| - | | |
| 14,774 | | |
| 87,200 | |
| Tokushin G.K. | |
| - | | |
| - | | |
| 4,950 | |
| Takuetsu Kokusai Co., Ltd. | |
| - | | |
| - | | |
| 259 | |
| Total revenue from related parties | |
$ | 7,840,934 | | |
$ | 6,006,993 | | |
$ | 847,986 | |
| f. | Purchase from related parties |
| | |
For the Fiscal Years Ended March 31, | |
| Name | |
2025 | | |
2024 | | |
2023 | |
| DinnerBank | |
$ | 9,920,906 | | |
$ | 445,980 | | |
$ | 125,496 | |
| Crossing Cards | |
| 574,048 | | |
| - | | |
| - | |
| Palpito | |
| - | | |
| - | | |
| 77,020 | |
| Total purchase from related parties | |
$ | 10,494,954 | | |
$ | 445,980 | | |
$ | 202,516 | |
| g. |
Sales of a subsidiary and an equity investment to a related party |
On June 30, 2023, the Company entered into share transfer agreements
with DinnerBank to sell its 100% equity interests in Kaika International and 40% equity interests in Palpito to DinnerBank, for cash consideration
of ¥5,000,000 ($37,595) and ¥40,000,000 ($300,760), respectively. The cash consideration was fully received and the transactions
were completed on July 1, 2023. The Company recorded a gain from disposal of Kaika International of ¥49,297,548 ($341,139) and a gain
from disposal of equity method investment of ¥27,539,183 ($190,571) for the fiscal year ended March 31, 2024, respectively.
| h. |
Other related party transactions |
Mr. Kanayama provided guarantees in connection
with certain loans the Company borrowed (see Note 11).
|