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LEASE
 12 Months Ended
Dec. 31, 2025
Lease  
LEASE

NOTE 9 — LEASE

 

The Company has operating leases for various store facilities in Japan and finance leases for office and medical equipment. Our leases have remaining lease terms ranging from less than 2 years to 15 years, some of which include options to extend the leases, and the Company intends to exercise renewal options and estimate the reasonable lease term to calculate right-of-use assets and lease liabilities.

 

The following table presents supplemental information related to the Company’s leases:

 

       
   Years Ended December 31, 
   2025   2024 
Lease cost          
Finance lease cost:          
Amortization of right-of-use assets  $37,569   $54,416 
Interest on lease liabilities   1,000    1,419 
Operating lease cost   358,926    709,089 
Total lease cost  $397,495   $764,924 
           
Impairment loss on right-of-use assets for operating lease  $-   $- 
           
Cash paid for amounts included in the measurement of lease liabilities:          
Financing cash flows from finance leases  $37,382   $61,788 
Operating cash flows from operating leases  $788,617   $991,251 
           
Right-of-use assets obtained in exchange for new finance lease liabilities  $11,651   $22,638 
Right-of-use assets obtained in exchange for new operating lease liabilities  $358,926   $408,451 
           
Weighted average remaining lease term (years)          
Finance leases   2.74    3.15 
Operating leases   9.16    9.85 
           
Weighted-average discount rate: (per annum)          
Finance leases   1.22%   1.20%
Operating leases   1.12%   1.10%

 

The discount rates related to the Company’s lease liabilities are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.

 

   December 31,   December 31, 
   2025   2024 
Operating lease right-of-use assets  $4,936,122   $5,265,572 
           
Finance Leases right-of-use assets  $723,818   $705,385 
Accumulated depreciation   (654,548)   (612,310)
           
Total  $69,270   $93,075 

 

As of December 31, 2025 and 2024, the Company recognized rent and lease security deposits, of $288,762 and $285,696, respectively.

 

As of December 31, 2025, the future maturity of lease liabilities is as follows:

 

Year Ending December 31,  Finance Lease   Operating Lease 
2026  $29,475   $695,760 
2027   22,479    627,892 
2028   13,819    608,320 
2029   2,905    576,987 
2030   1,341    492,909 
Thereafter   -    2,157,322 
Total lease payments   70,019    5,159,190 
Less: imputed interest   (1,205)   (268,342)
Total lease liabilities   68,814    4,890,848 
Less: current portion   29,292    650,061 
Non-current lease liabilities  $39,522   $4,240,787