LONG-TERM LOANS

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

LONG-TERM LOANS

NOTE 12 — LONG-TERM LOANS

As of September 30, 2024 and December 31, 2023, the Company’s long-term loans from banks and other financial institution consist of the following:

Indebtedness	Weighted Average Interest Rate*			Weighted Average Years to Maturity*		September 30, 2024			December 31, 2023
Guaranteed loans
Fixed rate loans		1.12	%		3.70	$	499,555		$	575,191
Variable rate loans		0.18	%		0.43		113,574			289,226
Subtotal		1.30	%		4.13		613,129			864,417
Unsecured loans
Fixed rate loans		0.13	%		2.68		210,024			354,522
Subtotal		0.13	%		2.68		210,024			354,522
Total long-term loans		1.43	%		6.81		823,153			1,218,939
Less: current portion							(136,683	)		(156,217	)
Non-current portion						$	686,470		$	1,062,722

* Pertained to information for loans outstanding as of September 30, 2024.

The Company borrowed loans from various banks and a financial institution for working capital purposes.

Interest expense was $5,466 and $3,978 for the three months ended September 30, 2024 and 2023, respectively, and $15,898 and $37,380 for the nine months ended September 30, 2024 and 2023, respectively.

The guarantee information of the Company’s outstanding loans as of September 30, 2024 and December 31, 2023 consists of the following:

	September 30, 2024		December 31, 2023
Co-guaranteed by CEO of subsidiaries within the Company’s organizational structure and Tokyo Credit Guarantee Association	$	613,129	$	747,474
Co-guaranteed by CEO of a subsidiary within the Company’s organizational structure and Kanagawa Credit Guarantee Association	$	—	$	116,943

As of September 30, 2024, future minimum payments for long-term loans are as follows:

Years ending December 31,	Principal Repayment
Remaining of 2024	$	31,546
2025		141,934
2026		147,185
2027		140,898
2028		77,121
Thereafter		284,469
Total	$	823,153

SBC MEDICAL GROUP HOLDINGS INCORPORATED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS