Short-Term Loan |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Short-Term Loan [Abstract] | |
| Short-term Loan | NOTE 14 - Short-term Loan
In June 2021, the Company entered into a loan agreement in the amount of $1,263,823 (NT $40,000,000) with a non-related party. This loan, which carries no interest, was originally set to mature on July 16, 2021, and further renewed the maturity date to March 16, 2023 with update the loan amount to $914,913 (NTD 30,000,000) with no interest. As of June 30, 2026 and December 31, 2025, the outstanding loan balance was $941,915 (NTD 30,000,000) and $956,328 (NTD 30,000,000), respectively. This loan is collateralized by 3,500,000 shares of Aerkomm Taiwan, formerly known as Ejectt Inc., before it merged into Aerkomm Taiwan, stock owned by the Company.
The temporary fundings as of June 30, 2026 and December 31, 2025, were $4,174,661 (NTD 131,219,729 and JPY 8,900,000) and $4,200,501 (NTD 131,769,729), respectively. These loans were made by multiple individual lenders arranged by Well Thrive Limited, a shareholder of the Company that entered into an agreement with the Company (and another lender) pursuant to which Well Thrive Limited agreed to provide $10 million in lending to the Company (the “Loan Commitment”). The terms of Well Thrive Limited’s commitment under the Loan Commitment were amended on March 1, 2023 to provide that, to support the Company, Well Thrive Limited would fulfill one-half of its Loan Commitment (thus, $5 million) by making itself, or by arranging from others, loans on an interest free, no fixed maturity date basis. All of the above temporary fundings that has been loaned to the Company by induvial lenders arranged by Well Thrive Limited has been on such basis. The Company plans to repay the temporary fundings as promptly as feasible given its overall obligations and in light of its repayment plans made in light of managing its working capital. The Company is also in discussion with Well Thrive about possible debt equity swaps for the Loans following closing of the planned Merger with IXAQ.
On November 29, 2021, the Company entered into a credit loan agreement (the “Credit Loan Agreement”) with Mega International Commercial Bank Co., Ltd. (“Mega”). Pursuant to the Credit Loan Agreement, Mega agreed to provide a facility of NTD 2,000,000 (approximately USD 62,500). The facility bears interest at an annual rate of 2.9% and is repayable in 48 monthly installments. The agreement includes a one-year grace period during which no payments were required, with repayments commencing in 2022 and scheduled to conclude in 2026. As of June 30, 2026 and December 31, 2025, the outstanding balance under the Credit Loan Agreement was $0 and $14,610, respectively.
On December 2, 2025, the maturity date of the Zero Coupon Bond, the Company repaid $1,792,022 including unpaid interest owed on the bonds, plus any additional accrued interest, by cash and the bank guarantee issued by BG Bank (see Note 15). The Company borrowed $1,782,704 from BG Bank under a guaranteed agreement dated November 26, 2020, pursuant to which BG Bank agreed to settle any remaining balance, including unpaid interest owed on the bonds, on behalf of the Company. The Company is obligated to repay to BG Bank for amounts paid on its behalf, together with interest at annual rate of 5% from the date of payment. In addition, BG Bank charges i) a default penalty at an annual rate of 10% for amounts outstanding for less than six months, or 20% for amounts outstanding for more than six months, and ii) a service fee on the principal at an annual rate of 1%. As of June 30, 2026 and December 31, 2025, the loan under the guaranteed agreement was $1,782,704.
Other than the short-term loan mentioned above, the Company had additional borrowings from several third parties totaling $727,863 and $527,208 as of June 30, 2026 and December 31, 2025, respectively. The Company and the third party customer mutually agreed to offset approximately $28,000 (JPY 4.5 million) of accounts receivable against the related loan payable. Accordingly, the borrowing balance as of June 30, 2026 is presented net of this amount. These loans are interest-free and payable on demand. |