BORROWINGS

12 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

BORROWINGS

11. BORROWINGS

The Company’s borrowings are from financial institutions in Japan and used for working capital and other general corporate purposes. Debt issuance costs related to these borrowings are immaterial and expensed as incurred.

Borrowings consisted of the following as of September 30, 2024 (in thousands):

	Original Amount Borrowed		Loan Duration	Annual Interest Rate			Amount
Lender 1	¥	20,000	6/1/2015-5/10/2025		1.90	%	¥	1,296
Lender 2		90,000	8/20/2024-11/20/2024		4.60	%		90,000
Lender 3		50,000	3/31/2023-3/31/2026		1.93	%		24,980
Lender 4		200,000	2/1/2024-1/31/2025		2.85	%		74,000
Lender 5		40,000	3/29/2024-3/29/2027		1.93	%		33,328
Lender 6		30,000	6/14/2024-6/30/2025		4.00	%		22,650
Aggregate outstanding principal balances								246,254
Less: current portion and short-term borrowings								(217,970	)
Long-term portion of borrowings							¥	28,284

Borrowings consisted of the following as of September 30, 2023 (in thousands):

	Original Amount Borrowed		Loan Duration	Annual Interest Rate			Amount
Lender 1	¥	20,000	6/1/2015-5/10/2025		1.90	%	¥	3,300
Lender 2		10,000	5/24/2019-5/24/2024		2.18	%		1,316
Lender 3		90,000	5/19/2023-5/19/2024		1.90	%		90,000
Lender 4		50,000	3/31/2023-3/31/2026		1.78	%		41,660
Lender 5		90,000	2/24/2023-1/31/2024		2.70	%		105,000
Aggregate outstanding principal balances								241,276
Less: current portion and short-term borrowings								(215,000	)
Long-term portion of borrowings							¥	26,276

The weighted average interest rate on short-term borrowings outstanding as of September 30, 2024 and 2023 was 3.81% and 2.70%, respectively.

The Company made a line of credit agreement with a financial institution with a credit limit of ¥200 million during the period of February 17, 2023 to January 31, 2024. The agreement automatically renews for successive one-year terms until the Company cancels the agreement. There are no commitment fees to maintain the line of credit agreement. As of September 30, 2024 and 2023, the Company had unused line of credit of ¥126 million and ¥95 million, respectively.

The guaranty information for the Company’s outstanding borrowings consisted of the following as of September 30, 2024 and 2023 (in thousands):

	As of September 30,
	2024		2023
Current portion of borrowings
Guaranteed by CEO of the Company	¥	31,320	¥	20,000
Borrowings – net of current portion
Guaranteed by CEO of the Company	¥	28,284	¥	26,276

The Company had unpaid guaranty fees to the CEO of ¥0.8 million and ¥0 million in accrued expenses and other current liabilities account on the balance sheets as of September 30, 2024 and 2023, respectively. The Company recorded guaranty fees to the CEO of ¥0.1 million, ¥1.4 million, and ¥0 million in other non-operating income (expenses) on the statements of income for the fiscal years ended September 30, 2024, 2023, and 2022, respectively. During the fiscal year ended September 30, 2023, unpaid guaranty fees to the CEO of ¥9.9 million were swapped for 53,940 common shares, which were retrospectively adjusted to reflect the 1 for 60 sub-division effected on October 24, 2024.

As of September 30, 2024, the annual aggregate maturities of borrowing during each of the next five fiscal years were as follows (in thousands):

	Amount
2025	¥	217,970
2026		21,644
2027		6,640
2028		-
2029		-
Thereafter		-
Total borrowings	¥	246,254