v3.26.1
BANK AND OTHER BORROWINGS
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
BANK AND OTHER BORROWINGS

NOTE 12 — BANK AND OTHER BORROWINGS

As of June 30, 2026 and December 31, 2025, the Company’s borrowings from banks and other financial institutions consist of the following:

 

Indebtedness

 

Weighted
Average
Interest
Rate*

 

 

Weighted
Average
Years to
Maturity*

 

 

June 30,
2026

 

 

December 31,
2025

 

Guaranteed loans

 

 

 

 

 

 

 

 

 

 

 

 

Fixed rate loan

 

 

1.25

%

 

 

1.32

 

 

$

40,941

 

 

$

58,412

 

Variable rate loans

 

 

1.72

%

 

 

1.71

 

 

 

7,290,698

 

 

 

7,635,865

 

Subtotal

 

 

1.72

%

 

 

1.71

 

 

 

7,331,639

 

 

 

7,694,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured loans

 

 

 

 

 

 

 

 

 

 

 

 

Fixed rate loans

 

 

2.60

%

 

 

0.17

 

 

 

125,546

 

 

 

149,204

 

Variable rate loans

 

 

1.15

%

 

 

4.23

 

 

 

29,104,943

 

 

 

33,777,069

 

Variable rate loans borrowed under revolving lines of credit

 

 

1.24

%

 

 

0.96

 

 

 

1,192,688

 

 

 

1,212,934

 

Subtotal

 

 

1.16

%

 

 

4.08

 

 

 

30,423,177

 

 

 

35,139,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

 

1.27

%

 

 

3.62

 

 

 

37,754,816

 

 

 

42,833,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: current portion

 

 

 

 

 

 

 

 

(11,816,235

)

 

 

(9,099,046

)

Non-current portion

 

 

 

 

 

 

 

$

25,938,581

 

 

$

33,734,438

 

 

* Pertained to information for loans outstanding as of June 30, 2026.

The Company borrowed funds from various banks and financial institutions for working capital, securities investments, and mergers and acquisitions (“M&A”) purposes.

Interest expense related to the borrowings presented above was $126,108 and $46,674 for the three months ended June 30, 2026 and 2025, respectively, and $237,968 and $50,635 for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026 and December 31, 2025, the Company had borrowings under revolving lines of credit as follows:

 

Line of credit *

 

June 30,
2026

 

 

December 31,
2025

 

Maximum available amounts

 

$

1,883,192

 

 

$

1,915,158

 

Borrowed amounts **

 

$

1,192,688

 

 

$

1,212,934

 

 

* These revolving lines of credit automatically renew annually unless canceled in writing.

** Borrowings typically have three-month to one-year terms.

 

The guarantee information of the Company’s outstanding loans as of June 30, 2026 and December 31, 2025 consists of the following:

 

 

 

June 30,
2026

 

 

December 31,
2025

 

Co-guaranteed by CEO of subsidiaries within the Company’s organizational structure and Tokyo Credit Guarantee Association

 

$

84,352

 

 

$

122,047

 

Guaranteed by subsidiaries within the Company’s organizational structure

 

$

7,247,287

 

 

$

7,572,230

 

 

As of June 30, 2026, future minimum payments for bank and other borrowings are as follows:

 

Years ending December 31,

 

Principal
Repayment

 

Remainder of 2026

 

$

8,257,452

 

2027

 

 

10,395,723

 

2028

 

 

7,189,992

 

2029

 

 

6,667,664

 

2030

 

 

5,243,985

 

Thereafter

 

 

—

 

Total

 

$

37,754,816