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DEBT
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
DEBT

NOTE 8 — DEBT

 

Short-term debt

 

As of December 31, 2025 and 2024, the Company had short-term debt of $319,366 (¥50,000,000) and $nil, respectively.

 

Interest rate is 0.8% and reset every half year considering market interest rate.

 

Long-term debt

 

The Company’s outstanding indebtedness borrowed from banks and other financial institutions, consist of the following:

 

Loans from banks and other financial institutions  December 31,
2025		   December 31,
2024		   Effective
Interest rate (*)		   Maturities (*)
Fixed rate loans  $2,688,375   $3,195,474    0.85 - 1.30%  2026 - 2035
Variable rate loans  $812,627   $912,080    0.90 - 1.70%  2027 - 2033
Subtotal   3,501,002    4,107,554         
                   
Corporate bond                  
Secured bond with fixed rate, net of $4,686 and $6,192 bond discount  $314,681   $941,375    1.45%  2028
                   
Current portion of long-term debts, net   687,685    1,273,999         
Long-term debts, net  $3,127,998   $3,774,930         

 

*As of December 31, 2025

 

The Company borrowed loans and corporate bonds from various financial institutions for working capital purposes.

 

Interest expense for loans and corporate bonds were $68,011, $77,274 and $92,930, including $4,686, $4,225 and $4,697 of bond discount accretion, for the years ended December 31, 2025, 2024 and 2023, respectively.

 

The guaranty information for the Company’s outstanding loans and bond as of December 31, 2025 and 2024, consist of the following:

 

   December 31,   December 31, 
   2025   2024 
Loans          
Guaranteed by CEO of Sakai  $147,854   $170,312 
Guaranteed by director of Sakai  $1,255,353   $1,841,099 

 

As of December 31, 2025, future minimum payments for loans and corporate bond are as follows:

 

      
2026  $687,685 
2027   619,469 
2028   873,895 
2029   463,573 
2030   348,921 
Thereafter   826,827 
 Total   3,820,370 
Imputed interest   (4,687)
Total  $3,815,683