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LONG-TERM DEBTS
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
LONG-TERM DEBTS

NOTE 8 — LONG-TERM DEBTS

 

The Company’s long-term debts included bond payable and loans borrowed from banks and other financial institutions, which consist of the following:

 

Name of Financial Institutions  Original Amount Borrowed (JPY)   Loan
Duration		  Annual
Interest Rate		   Balance
as of
June 30,
2022		   Balance
as of
December 31, 2021		 
Bond payable                       
Corporate bond issued through Resona Bank   100,000,000(a)(b)  1/10/2019—1/10/2024   0.430%  $293,880   $434,431 
Loans with banks and other financial institutions                       
Resona Bank, Limited.   30,000,000(a)  12/29/2017—12/30/2022   1.475%   22,041    56,476 
Resona Bank, Limited.   50,000,000(a)(b)  12/29/2017—12/29/2024   0.675%   131,291    191,454 
Resona Bank, Limited.   10,000,000(a)(b)  9/30/2020—9/30/2027   0.000%   55,110    72,411 
Resona Bank, Limited.   40,000,000(a)(b)  9/30//2020—9/30/2027   0.000%   220,439    289,644 
Resona Bank, Limited.   20,000,000(a)(b)  11/13/2020—10/31/2027   1.600%   111,968    146,890 
Sumitomo Mitsui Banking Corporation   100,000,000   12/28/2018—12/28/2023   1.475%   220,307    361,925 
Sumitomo Mitsui Banking Corporation   10,000,000(b)  12/30/2019—12/30/2026   1.975%   47,241    63,105 
The Shoko Chukin Bank, Ltd.   30,000,000   9/28/2018—8/31/2023   1.200%   51,796    92,273 
The Shoko Chukin Bank, Ltd.   50,000,000   7/27/2020—6/30/2027   1.290%   265,961    351,020 
Japan Finance Corporation   40,000,000   12/15/2017—11/30/2022   0.300%   28,066    73,940 
Japan Finance Corporation   80,000,000   11/17/2020—11/30/2027   0.210%   460,804    603,339 
Higashi-Nippon Bank   30,000,000(a)  3/31/2022—3/31/2025   1.400%   201,896    - 
Aggregate outstanding principal balances                2,110,800    2,736,908 
Less: unamortized debt issuance costs                (10,464)   (15,333)
Less: current portion                (733,235)   (849,995)
Non-current portion               $1,367,101   $1,871,580 

 

  (a) These debts are guaranteed by Sumitaka Yamamoto, the Company’s CEO and major shareholder.
  (b) These debts are guaranteed by Tokyo Credit Guarantee Association, and the Company has paid guarantee expenses for these debts.

 

In March 2022, the Company entered into a loan agreement with Higashi-Nippon Bank with a term of three years payable monthly. The loan is guaranteed by Sumitaka Yamamoto, the Company’s CEO and major shareholder.

 

Interest expense for long-term debts was $14,676 and $23,232 for the six months ended June 30, 2022 and 2021, respectively.

 

 

As of June 30, 2022, future minimum loan payments are as follows:

 

Year ending December 31,  Loan 
   Payment 
Remaining of 2022  $348,542 
2023   687,055 
2024   425,972 
2025   244,391 
2026   222,372 
Thereafter   182,468 
Total  $2,110,800