Borrowings (Tables)
|
12 Months Ended |
Mar. 31, 2025 |
|---|
| Borrowings [Abstract] |
|
| Schedule of Short-Term Borrowings |
Short-term borrowings consisted of the following:
| | | Maturity | | Interest Rate | | March 31,
2025 | | | March 31,
2024 | | | | | | | | | | | | | | | Syndicated Loans (1) | | March 2026 | | TIBOR^(3M)+0.70% - TIBOR (1M)+1.20% | | $ | 52,241,749 | | | $ | 51,912,050 | | | Resona Bank (2) | | March 2026 | | 3.40%-3.55% | | | 1,331,000 | | | | 1,322,600 | | | Best Life Technology | | July 2025 | | 5.6% | | | 2,750,743 | | | | - | | | Loan from HSBC (3) | | April 2025 – January 2026 | | 5.90% - 6.15% | | | 1,579,715 | | | | - | | | Total short-term borrowings | | | | | | $ | 57,903,207 | | | $ | 53,234,650 | | | (1) | On September 27, 2022, the Company entered into a one-year syndicated
loan agreement, which was effective from September 30, 2022, with a consortium of banks, with an aggregate credit line of ¥8.15 billion
(approximately $61.3 million), and the interest rate was adjusted to TIBOR (3M)+0.70%. As of March 31, 2023, the Company borrowed an aggregated
of ¥8.15 billion (approximately $61.3 million) under the agreement, and the net outstanding balance of this loan was approximately
¥8.1 billion (approximately $60.6 million), net off the unamortized loan service cost of ¥85.6 million ($643,438). On September
22, 2023, the Company extended the loan on a three-month basis for an additional six months with a maturity date on March 29, 2024, and
the interest rate was adjusted to TIBOR (1M)+1.20%. In March 2024, the Company repaid ¥300.0 million, and subsequently, the Company
made multiple loan extensions with the banks and extended the loans with a new maturity date of March 31, 2026. The interest rate remained
at TIBOR (1M)+1.20%. As of March 31, 2025, the total outstanding balance of this loan was approximately ¥7.85 billion (approximately
$52.2 million). The syndicated loan is guaranteed by Mr. Kanayama, the representative director, director, and controlling shareholder
of the Company. |
| (2) | The loan is guaranteed by Mr. Kanayama. The Company made multiple loan extensions with the bank and extended the loan with a new maturity date of March 31, 2026. |
| (3) | Two of the loans were fully repaid upon maturity. |
|
| Schedule of Long-Term Borrowings |
Long-term borrowings consisted of the following:
| | | Maturity | | Interest Rate | | March 31,
2025 | | | March 31,
2024 | | | | | | | | | | | | | | | Japan Finance Corporation (1) | | April 2026 | | 3.20% | | $ | 1,255,660 | | | $ | 1,247,735 | | | BOT Lease Co., Ltd. (2) | | March 2028 | | TIBOR (3M) + 6.0% | | | 1,331,000 | | | | 1,322,600 | | | MUFG Bank (3) | | August 2026 | | TIBOR (3M) + 0.8% | | | 4,192,650 | | | | 4,166,190 | | | The Hong Kong and Shanghai Banking Corporation Limited (4) | | July 2024 – February 2033 | | 2.750% - 3.375% | | | 345,303 | | | | 424,126 | | | DFL-Shutoken Leasing (Hong Kong) Company Limited | | June 2024 – October 2025 | | 2.990% | | | 83,690 | | | | 207,105 | | | Total long-term borrowings | | | | | | $ | 7,208,303 | | | $ | 7,367,756 | | | | | | | | | | | | | | | | | Current portion of long-term borrowings | | | | | | $ | 706,531 | | | $ | 1,730,796 | | | | | | | | | | | | | | | | | Non-current portion of long-term borrowings | | | | | | $ | 6,501,772 | | | $ | 5,636,960 | |
| (1) | The Company made multiple loan extensions with the bank with a new maturity
date of April 30, 2026. |
| (2) | The loan bears an interest rate of TIBOR (3M)+6.0% (in the case EBITDA
exceeds ¥0) or TIBOR (3M)+0.7% (in the case EBITDA is ¥0 or less). | | (3) | In connection with the Company’s bank borrowings from MUFG Bank, the Company pledged a piece of land of 16,165 square feet with a carrying value of ¥340.1 million (approximately $2.3 million) as of March 31, 2025 as collateral to safeguard the loan. |
| (4) | Guaranteed by Mr. Kanayama. |
|
| Schedule of Future Maturities of Long-Term Borrowings |
The future maturities of long-term borrowings
as of March 31, 2025 were as follows:
| 12 months ending March 31, | |
| |
| 2026 | |
$ | 706,531 | |
| 2027 | |
| 1,610,291 | |
| 2028 | |
| 4,666,826 | |
| 2029 | |
| 74,423 | |
| 2030 | |
| 44,280 | |
| Thereafter | |
| 105,952 | |
| Total long-term borrowings | |
$ | 7,208,303 | |
|