v3.26.1
BORROWINGS
 12 Months Ended
Feb. 28, 2026
Debt Disclosure [Abstract]  
BORROWINGS

Note 6 — BORROWINGS

 

Short-term borrowings consisted of the following:

 

                                 
    Maturity   Effective
Interest Rate		     As of
February 28,
2025		     As of
February 28,
2026		     As of
February 28,
2026		  
              JPY     JPY     US$  
              (In thousands)  
Sumitomo Mitsui Banking Corporation(1)   March 2026   1.45%       -       300,000       1,922  
MUFG Bank, Ltd.(2)   April 2026   1.51%       -       500,000       3,204  
Total short-term borrowings               -       800,000       5,126  

 

 
(1) On October 31, 2025, the Company entered into a commitment line agreement with Sumitomo Mitsui Banking Corporation with a maximum commitment of JPY 2,500.0 million. The facility’s commitment period commences on October 31, 2025, and terminates on October 31, 2026. Pursuant to the agreement, the maximum borrowing limit for this period is JPY 2,500.0 million. The borrowings are primarily used for working capital purposes. As of February 28, 2026, the unused credit line balance was JPY2,200 million ($14.1 million).
(2) On February 25, 2025, the Company entered into a revolving credit facility agreement with MUFG Bank, Ltd. with a maximum commitment of JPY3,000.0 million. The facility’s commitment period commences on February 28, 2025, and terminates on February 25, 2028.

Pursuant to the agreement, the maximum borrowing limits for the respective periods are as follows:

  ● JPY2,000.0 million for the period from February 28, 2025, to February 27, 2026;
  ● JPY2,500.0 million for the period from February 28, 2026, to February 27, 2027; and
  ● JPY3,000.0 million for the period from February 28, 2027, to the commitment termination date (February 25, 2028).

The borrowings are primarily used for working capital purposes. As of February 28, 2026, the unused credit line balance was JPY2,000 million ($12.8 million).

 

The short-term borrowings outstanding for the fiscal years ended February 29, 2024, February 28, 2025 and February 28, 2026 carried a weighted average interest rate of approximately 0.87%, 0.42%, and 0.03% per annum, respectively.

 

Long-term borrowings consisted of the following:

 

                                 
    Maturity   Effective
Interest Rate		     As of
February 28,
2025		     As of
February 28,
2026		     As of
February 28,
2026		  
              JPY     JPY     US$  
              (In thousands)  
The Awaji Shinkin Bank(1)   September 2027 - September 2030   0.60% - 1.25%       1,369,156       1,220,620       7,823  
Sumitomo Mitsui Banking Corporation(2)   November 2026 - January 2030   0.54% - 1.19%       1,974,026       1,538,700       9,860  
The Iyo Bank, Ltd.   March 2026   1.28%       83,339       11,130       71  
The Bank of Fukuoka, Ltd.   September 2025   0.86%       58,343       -       -  
MUFG Bank, Ltd.   March 2026 - March 2029   0.30% - 0.79%       1,591,683       1,291,695       8,277  
The Minato Bank, Ltd.   June 2028   0.68%       417,540       241,677       1,549  
The Hiroshima Bank, Ltd.   April 2026   1.00%       116,652       16,644       107  
The San-in Godo Bank, Ltd.   November 2026   0.80%       174,990       74,982       480  
The Kiyo Bank, Ltd.   January 2028   1.05%       291,675       191,679       1,228  
Total long-term borrowings               6,077,404       4,587,127       29,395  
                                   
Current portion of long-term borrowings               1,804,164       2,021,924       12,957  
                                   
Non-current portion of long-term borrowings               4,273,240       2,565,203       16,438  

 

 
(1) As of February 28, 2025 and February 28, 2026, JPY82.6 million and JPY66.6 million ($0.4 million) were guaranteed by Credit Guarantee Association, a Japanese governmental affiliate agency which supplements private companies with credit, respectively.
(2) As of February 28, 2025 and February 28, 2026, JPY60.0 million and JPY60.0 million ($0.4 million) were guaranteed by Credit Guarantee Association, a Japanese governmental affiliate agency which supplements private companies with credit, respectively.

 

The long-term borrowings outstanding for the fiscal years ended February 29, 2024, February 28, 2025 and February 28, 2026 carried a weighted average interest rate of approximately 0.84%, 0.97%, and 0.93% per annum, respectively.

 

As of February 28, 2026, the Company had an aggregate credit line of JPY5,000.0 million ($32.0 million) and JPY800.0 million ($5.1 million) was used for the borrowing balance.

 

Interest expenses for the fiscal years ended February 29, 2024, February 28, 2025 and February 28, 2026 amounted to JPY36.4 million, JPY52.3 million and JPY49.5 million ($0.3 million), respectively.

 

As of February 28, 2026, the Company’s future loan obligations according to the terms of the loan agreement were as follows:

 

               
    JPY     US$  
    (In thousands)  
Fiscal year                
2027     2,021,924       12,957  
2028     1,332,208       8,537  
2029     883,555       5,662  
2030     311,852       1,998  
2031     37,588       241  
Thereafter     -       -  
Total long-term borrowings     4,587,127       29,395  

 

The Company’s loan agreements contain covenants, which require compliance with financial ratios. As of February 28, 2025 and February 28, 2026, the Company was in compliance with all the financial covenants under its existing loan agreements.

 

The Company made repayments of the above-mentioned bank borrowings upon maturity in the subsequent period.