LOAN PAYABLE |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LOAN PAYABLE | NOTE 9. LOAN PAYABLE
On October 5, 2023, the Company borrowed a 10-years term loan of $475,434 (HK$3,697,002) as working capital at an annual interest rate of Hong Kong Prime Lending Rate minus 2.25% per annum under the loan agreement with HSBC (Hong Kong) signed on October 13, 2023. Repayments are to be made on a monthly basis throughout the term of the loan. The loan was under the SME Financing Guarantee Scheme (“Scheme”), the Scheme was launched on January 1, 2011 by The Hong Kong Mortgage Corporation Limited (“HKMC”), to ease the cash flow problems of Enterprises adversely affected by the outbreak of COVID-19, a Special 100% Loan Guarantee would be introduced under the Scheme. The loans under the Special 100% Loan Guarantee are fully guaranteed by the Hong Kong Government at a concessionary low-interest rate.
On January 2, 2025, due to a general decline in the market lending rate, the applicable annual interest rate was automatically adjusted by the lender from 3.125% to 3.000% pursuant to the original loan agreement. As of March 31, 2026, a principal payment of $3,317 had been made, reducing the outstanding loan balance to $470,249.
On March 2, 2026, the lender approved a revised repayment schedule under the original loan agreement. Under the revised repayment schedule, the Company was granted a 20-month principal moratorium, during which it is required to make interest-only payments. Principal repayments will resume in December 2027 in accordance with the revised repayment schedule. As of June 30, 2026, the outstanding loan balance was $469,880.
Loan payable is as follows as of June 30, 2026 and March 31, 2026:
Interest expense pertaining to the above bank borrowings for the three months ended June 30, 2026 and 2025 amounted to $3,234 and $3,542, respectively.
Maturities of the loan payable were as follows:
OFA GROUP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED JUNE 30, 2026 AND 2025
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