| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
| Dec. 31, 2022 |
| Accounting Policies [Abstract] | |
| Basis of Presentation | (a)
Basis of Presentation The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission
(“SEC”). The financial information included herein reflects the consolidated financial position of the Company as of December
31, 2022 and 2021, and the consolidated results of its operations and cash flows for the years ended December 31, 2022, 2021 and 2020.
The Company has presented the assets and liabilities of mining machine business and its operating results and cash flows as discontinued
operations in the accompanying financial statements as of and for all periods presented. All footnotes exclude balances and activity of
mining machine business unless otherwise noted. |
| Principles of Consolidation | (b)
Principles of Consolidation On
an ongoing basis, as circumstances indicate the need for reconsideration, we evaluate each of our investments and contractual relationships
to determine whether they meet the guidelines for consolidation. Our evaluation considers all of our variable interests, including equity
ownership, as well as fees paid to us for our involvement in the management of each partially owned entity or structure. In
June 2021, the Company launched its real estate crowdfunding platform which allows investors to invest through joint venture arrangements.
Our real estate joint ventures consist of anonymous partnerships, which is a structure similar to a limited partnership, and voluntary
partnerships, which is a structure similar to a general partnership. For the arrangement structured as a limited partnership or a general
partnership, our evaluation of whether the equity holders (equity partners other than the general partner or the managing member of a
joint venture) lack the characteristics of a controlling financial interest includes the evaluation of whether the limited partners or
non-managing members (the noncontrolling equity holders) lack both substantive participating rights and substantive kick-out rights,
defined as follows:
(i) Participating rights provide
the noncontrolling equity holders the ability to direct significant financial and operating decisions made in the ordinary course
of business that most significantly influence the entity’s economic performance.
(ii) Kick-out rights allow the
noncontrolling equity holders to remove the general partner or managing member without cause. If
we conclude that any of the three characteristics of a VIE (i.e., insufficiency of equity, existence of non-substantive voting rights,
or lack of a controlling financial interest) are met, including that the equity holders lack the characteristics of a controlling financial
interest because they lack both substantive participating rights and substantive kick-out rights, we conclude that the entity or structure
is a VIE and evaluate it for consolidation under the variable interest model. Variable
interest model If
an entity or structure is determined to be a VIE, we evaluate whether we are the primary beneficiary. The primary beneficiary analysis
is a qualitative analysis based on power and benefits. We consolidate a VIE if we have both power and benefits - that is, (i) we
have the power to direct the activities of a VIE that most significantly influence the VIE’s economic performance (power), and
(ii) we have the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to
the VIE (benefits). We consolidate VIEs whenever we determine that we are the primary beneficiary. If we have a variable interest in
a VIE but are not the primary beneficiary, we account for our investment using the equity method of accounting. Voting
model If
a legal entity fails to meet any of the three characteristics of a VIE, we then evaluate such entity under the voting model. Under the
voting model, we consolidate the entity if we determine that we, directly or indirectly, have greater than 50% of the voting shares and
that other equity holders do not have substantive participating rights We
consolidate anonymous partnerships, which are determined to be VIEs and we are the primary beneficiary, and account for voluntary
partnerships using equity method. The assets and liabilities of the VIEs that are included in the accompanying consolidated
financial statements as of December 31, 2022 and 2021 are as follows: SCHEDULE
OF CONSOLIDATED FINANCIAL STATEMENTS
December 31 December 31,
2022 2021
Total assets 617,631 286,476
Total liabilities 46,528 - The
consolidated financial statements include the accounts of the Company and all of its subsidiaries. VIEs, for which the Company and its
subsidiaries are the primary beneficiaries, are also included in the consolidated financial statements. All
significant intercompany accounts and transactions have been eliminated in consolidation. |
| Foreign Currency | (c)
Foreign Currency The Company maintains its books and record in its local currency, Japanese
YEN (“JPY”), which is a functional currency as being the primary currency of the economic environment in which its operation
is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at
the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the
functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting
exchange differences are recorded in other income (expenses) in the consolidated statements of operations and comprehensive income. The
Company uses JPY as its reporting currency. Assets and liabilities of entities with functional currencies other than JPY are translated
into JPY using the exchange rate on the balance sheet date. Revenues and expenses are translated into JPY at average rates prevailing
during the reporting period. The resulting foreign currency translation adjustment, if any, are recorded in accumulated other comprehensive
income (loss) within equity. Amounts
are stated in thousands of JPY, except for share and per share data and otherwise stated. |
| Noncontrolling Interests | (d)
Noncontrolling Interests Noncontrolling
interests in the consolidated balance sheets represent the portion of the equity in the subsidiary and VIEs not attributable, directly
or indirectly, to the Company. The portion of the income or loss applicable to the noncontrolling interests in subsidiaries and VIEs
is also separately reflected in the consolidated statements of operations and comprehensive income. |
| Use of Estimates | (e)
Use of Estimates In preparing the consolidated financial statements in conformity U.S. GAAP,
the management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. These estimates are based on information available as of the date of the consolidated financial statements. Significant
estimates required to be made by management include, but are not limited to, the net realizable value of solar power panels and supplies,
impairment of real estate inventories, solar power plants under construction and solar power plants held for sale, purchase price allocation
of acquired real estates, useful lives of property, plant and equipment, solar power systems and intangible assets, the impairment of
long-lived assets, valuation of stock based compensation, valuation allowance of deferred tax assets, uncertain income tax positions,
implicit interest rate of operating and finance leases and purchase
price allocation with respect to business combination. Actual results could differ from those estimates. COVID-19 While
the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time,
such as the extent and effectiveness of containment actions, it has already had an adverse effect on the global economy and the
lasting effects of the pandemic continue to be unknown. The Company may experience customer losses, including due to bankruptcy or
customers ceasing operations, which may result in delays in collections or an inability to collect accounts receivable from these
customers. The extent to which COVID-19 may continue to impact the Company’s financial condition, results of operations, or
liquidity continues to remain uncertain, and as of the date of issuance of these consolidated financial statements, the Company is
not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the
carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional
information is obtained, which will be recognized in the consolidated financial statements as soon as they become known. Actual
results could differ from those estimates, and any such differences may be material to the Company’s consolidated financial
statements. |
| Business Combinations | (f)
Business Combinations Business
combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible
assets, liabilities, identifiable intangible assets acquired and noncontrolling interests, if any, based on their estimated fair values
as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses
are expensed as incurred. Consideration
transferred in a business combination is measured at the fair value as of the date of acquisition. Where the consideration in an acquisition
includes contingent consideration, and the payment of which depends on the achievement of certain specified conditions post-acquisition,
the contingent consideration is recognized and measured at its fair value at the acquisition date and is recorded as a liability. It
is subsequently carried at fair value with changes in fair value reflected in earnings. In
a business combination achieved in stages, the Company remeasures the previously held equity interest in the acquiree immediately before
obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated statements
of operations and comprehensive income. Fair
value is determined based upon the guidance of ASC Topic 820, “Fair Value Measurements and Disclosures,” and generally are
determined using Level 2 inputs and Level 3 inputs. The determination of fair value involves the use of significant judgments and estimates.
The Company utilizes the assistance of third-party valuation appraisers to determine the fair value as of the date of acquisition. |
| Cash and Cash Equivalents | (g)
Cash and Cash Equivalents Cash
and cash equivalents include cash on hand and deposits in banks and other financial institutions that are unrestricted as to withdrawal
or use, and which have original maturities of three months or less. The Company maintains substantially all its bank accounts in Japan.
Cash balances in bank accounts in Japan are insured by the Deposit Insurance Corporation of Japan subject to certain limitations. |
| Restricted Cash | (h)
Restricted Cash Restricted
cash represents cash pledged to financial institutions as collateral for the Company’s bank loans, and cash deposits in banks that
are restricted as to withdrawal or usage according to certain agreements with investors of crowdfunding projects. The restricted cash
is not available for withdrawal or the Company’s general use until after the corresponding bank loans are repaid, or the performance
obligation is satisfied. Restricted cash is classified as either current or non-current based on when the funds will be released in accordance
with the terms of the respective agreements. |
| Term Deposits | (i)
Term Deposits Term
deposits consist of deposits placed with financial institutions with original maturities of greater than three months. Term deposit is
classified as either current if the original maturities are within one year, or as non-current if the original maturities are over one
year. |
| Accounts Receivable | (j)
Accounts Receivable Accounts
receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is
required before payment of the consideration is due). The Company’s accounts receivable balances are unsecured, bear no interest
and are due within one year from the date of the sale. The
allowance for credit losses reflects the Company’s current estimate of credit losses expected to be incurred over the life of the
receivables. The Company considers various factors in establishing, monitoring, and adjusting its allowance for credit losses including
the aging of receivables and aging trends, customer creditworthiness and specific exposures related to particular customers. The Company
also monitors other risk factors and forward-looking information, such as country specific risks and economic factors that may affect
a customer’s ability to pay in establishing and adjusting its allowance for credit losses. Accounts receivable balances are written
off after all collection efforts have ceased. |
| Inventories | (k)
Inventories Our inventories mainly consist of real estate properties inventories and
solar power plants inventories. Real estate properties inventories include real estate properties held
for sale and real estate properties under development, the vast majority of which are expected to be completed and disposed of within
one year of the balance sheet date. Real estate properties held for sale are recorded at the lower of cost or fair value less cost to
sell. If an asset’s fair value less cost to sell, based on discounted future cash flows, management estimates or market comparisons,
is less than its carrying amount, an allowance is recorded against the asset. Real estate properties under development are carried at
cost less impairment, as applicable. The amount of the impairment loss, if any, is calculated as the excess of the asset’s carrying
value over its fair value, which is determined using a discounted cash flow analysis, management estimates or market comparisons. The
cost basis of the real estate inventories includes all direct acquisition costs including but not limited to the property purchase price,
acquisition costs, construction costs, development costs, certain amenities, capitalized interest, capitalized real estate taxes and
other costs. Interests and real estate taxes are not capitalized unless active development or construction is underway. When acquiring
real estate with existing buildings, we allocate the purchase price between land, building and intangibles related to in-place leases,
if any, based on their relative fair values. Solar power plants inventories include solar power panels and supplies,
solar power plants held for sale and solar power plants under construction, the vast majority of which are expected to be completed and
disposed of within one year of the balance sheet date. Solar power panels and supplies are stated at the lower of cost and net realizable
value. Cost of solar power panels and supplies is determined using the weighted average cost method. Adjustments are recorded to write
down the cost of obsolete and excess inventories to the estimated net realizable value based on historical and forecast demand, and promotional
environment. Solar power plants held for sale are recorded at the lower of cost or fair value less cost to sell. If an asset’s fair
value less cost to sell, based on discounted future cash flows, management estimates or market comparisons, is less than its carrying
amount, an allowance is recorded against the asset. Solar power plants under construction are carried at cost less impairment, as applicable.
The cost basis of solar power plants under construction includes acquisition costs, construction and installation costs, development costs,
interest and financing costs incurred on debt during the construction phase and other costs. The amount of the impairment loss, if any,
is calculated as the excess of the asset’s carrying value over its fair value, which is determined using a discounted cash flow
analysis, management estimates or market comparisons. |
| Short-term Investments | (l)
Short-term Investments The
Company’s short-term investments consist of debt securities classified as available-for-sale as well as marketable equity securities.
The Company’s available-for-sale debt securities are measured at fair value with unrealized gains and losses included in accumulated
other comprehensive income (loss) and realized gains and losses included in other income (expenses). None of the Company’s investments
in marketable securities were impaired for the years ended December 31, 2022, 2021 and 2020. The Company’s marketable equity securities
are measured at fair value with changes in fair value recognized in other income (expenses). |
| Long-term Investments | (m)
Long-term Investments Investments in equity securities with readily
determinable fair values We hold investments in equity securities of publicly listed companies,
for which we do not have significant influence. Investments in equity securities with readily determinable fair values are measured at
fair value and any changes in fair value are recognized in other income (expenses). Investments
in funds that report net asset value (“NAV”) per share We
hold investments in Japanese pooled funds. These funds are generally readily redeemable at their net asset values. The fair value of
investment funds is measured at their net asset values per share (or its equivalent) as a practical expedient. Investments
in privately held companies and organizations that do not report NAV per share Investments
in privately held entities that do not report NAV per share are accounted for using a measurement alternative, under which these investments
are measured at cost, adjusted for observable price changes and impairments, with changes recognized in other income (expenses). Investments
accounted for under equity method We
use the equity method to account for investments in partnerships that qualify as VIEs where we are not the primary beneficiary and other
entities that we do not control or where we do not own a majority of the economic interest but have the ability to exercise significant
influence over the operating and financial policies of the investees. Under the equity method of accounting, we initially recognize our
investments at cost and subsequently adjust the carrying amount of the investments for our share of earnings or losses reported by the
investees, distributions received, and other-than-temporary impairments. Investment
income/loss recognition and classification We
recognize both realized and unrealized gain and losses in our consolidated statements of operations and comprehensive income, classified
with other income (expenses). Unrealized gains and losses represent:
(1) fair
value changes for investments in equity securities with readily determinable fair value;
(2) changes in NAV as a practical expedient to estimate fair value for investments
in funds that report NAV per share;
(3) observable price changes
for investments in privately held entities that do not report NAV per share; and
(4) our share of unrealized
gain or losses reported by our equity method investees. Realized
gains and losses on our investments represent the difference between proceeds received upon disposition of investments and their historical
or adjusted cost. For our equity method investments, realized gains and losses represent our share of realized gains or losses reported
by the investee. Impairments are realized losses, which result in an adjusted cost, and represent charges to reduce the carrying values
of investments in privately held entities that do not report NAV per share and equity method investments, if impairments are deemed other
than temporary, to their estimated fair value. |
| Property, Plant and Equipment, Net | (n)
Property, Plant and Equipment, Net Property,
plant and equipment, including real estate properties held for lease, are measured using the cost model and is stated at cost less accumulated
depreciation. Acquisition cost includes mainly the costs directly attributable to the acquisition and the initial estimated dismantlement,
removal, and restoration costs associated with the assets. Depreciation is calculated using the straight-line and declining methods over
the estimated useful lives, as more details follow. Depreciation is included in cost of revenues and selling, general and administrative
expenses and is allocated based on estimated usage for each class of asset. SCHEDULE
OF PROPERTY PLANT AND EQUIPMENT NET
Depreciation
Method Useful
Life
Buildings, including buildings held
for lease Straight-line
method 7 47
Facilities attached to buildings Straight-line or declining
balance method 5 18
Machinery and equipment Declining balance method 6
Vehicles Declining balance method 2 6
Tools, furniture and fixture Declining balance method 2 17
Land Not depreciated -
Software* Straight-line
method 5
* Represents software that is non-detachable to the hardware. Expenditures
for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures
for major renewals and betterments which substantially extend the useful life of assets are capitalized. When items are retired or otherwise
disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. |
| Solar Power Systems, Net | (o) Solar Power Systems, Net Solar power systems comprise of ground-mounted solar power projects that
the Company intends to hold for use. The solar power systems are stated at cost less accumulated depreciation. The cost consists primarily
of direct costs incurred in various stages of development prior to the commencement of operations. For a self-developed solar power system,
the actual cost capitalized is the amount of the expenditure incurred for the permits, consents, construction costs and other costs capitalized.
For a solar power system acquired from third parties, the initial costs include the consideration transferred and certain direct acquisition
costs. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged
to expense as incurred. When solar power systems are retired, or otherwise disposed of, the cost and accumulated depreciation are removed
from the consolidated balance sheets and any resulting gain or loss is included in the results of operations for the respective period.
Depreciation is recognized using the declining balance method over the estimated useful lives of the solar power systems of 11 17 |
| Intangible Assets, Net | (p)
Intangible Assets, Net Intangible
assets with an indefinite life are not amortized and are tested for impairment annually or more frequently if events or changes in circumstances
indicate that they might be impaired. Intangible
assets with finite lives are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives
of the respective assets. Acquired intangible assets from business combination are recognized and measured at fair value at the time
of acquisition. Those assets represent assets with finite lives and are further amortized on a straight-line basis over the estimated
economic useful lives of the respective assets. The
estimated useful lives of intangible assets are as follows: SCHEDULE
OF INTANGIBLE ASSETS ESTIMATED USEFUL LIVES
Technologies 10
Favorable contracts 17 |
| Corporate-owned Life Insurance Policies | (q)
Corporate-owned Life Insurance Policies The
Company has purchased corporate-owned life insurance policies to insure its Chief Executive Officer (“CEO”), Chief Operating
Officer (“COO”) and other key employees. Management considers these policies to be operating assets. These insurance policies
are recorded at their cash surrender values, included in other assets in the consolidated balance sheets with change in cash surrender
value during the period recorded in selling, general and administrative expenses. |
| Leases | (r)
Leases The
Company determines if an arrangement is or contains a lease at inception or modification of the arrangement. An arrangement is or contains
a lease if there are identified assets and the right to control the use of an identified asset is conveyed for a period in exchange for
consideration. Control over the use of the identified assets means the lessee has both the right to obtain substantially all of the economic
benefits from the use of the asset and the right to direct the use of the asset. We
classify our leases as either finance leases or operating leases if we are the lessee, or sale-type, direct financing, or operating leases
if we are the lessor. We use the following criteria to determine if a lease is a finance lease (as a lessee) or sales-type or direct
financing lease (as a lessor):
(i) ownership is transferred
from lessor to lessee by the end of the lease term;
(ii) an option to purchase is
reasonably certain to be exercised;
(iii) the lease term is for the
major part of the underlying asset’s remaining economic life;
(iv) the present value of lease
payments equals or exceeds substantially all of the fair value of the underlying assets; or
(v) the underlying asset is
specialized and is expected to have no alternative use at the end of the lease term. If
we meet any of the above criteria, we account for the lease as a finance, a sales-type, or a direct financing lease. If we do not meet
any of the criteria, we account for the lease as an operating lease. Lessee
accounting The
Company recognizes right-of-use assets and lease liabilities for all leases other than those with a term of twelve months or less as
the Company has elected to apply the short-term lease recognition exemption. Right-of-use assets represent the Company’s right
to use an underlying asset for the lease term. Lease liabilities represent the Company’s obligation to make lease payments arising
from the lease. Right-of-use assets and lease liabilities are classified and recognized at the commencement date of a lease. Lease liabilities
are measured based on the present value of fixed lease payments over the lease term. Right-of-use assets consist of (i) initial measurement
of the lease liability; (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received;
and (iii) initial direct costs incurred by the Company. As
the rates implicit on the Company’s leases for which it is the lessee are not readily determinable, the Company uses its incremental
borrowing rate based on information available at the commencement date in determining the present value of lease payments. When determining
the incremental borrowing rate, the Company assesses multiple variables such as lease term, collateral, economic conditions, and its
creditworthiness. From
time to time, we may enter into sublease agreements with third parties. Our subleases generally do not relieve us of our primary obligations
under the corresponding head lease. As a result, we account for the head lease based on the original assessment at lease inception. We
determine if the sublease arrangement is either a sales-type, direct financing, or operating lease at inception of the sublease. If the
total remaining lease cost on the head lease for the term of the sublease is greater than the anticipated sublease income, the right-of-use
asset is assessed for impairment. Our subleases are generally operating leases and we recognize sublease income on a straight-line basis
over the sublease term. Lessor
accounting – operating leases We
account for the revenue from our lease contracts by utilizing the single component accounting policy. This policy requires us to account
for, by class of underlying asset, the lease component and nonlease component(s) associated with each lease as a single component if
two criteria are met:
(i) the timing and pattern
of transfer of the lease component and the nonlease component(s) are the same; and
(ii) the lease component would
be classified as an operating lease if it were accounted for separately. Lease
components consist primarily of fixed rental payments, which represent scheduled rental amounts due under our leases. Nonlease components
consist primarily of tenant recoveries representing reimbursements of rental operating expenses, including recoveries for utilities,
repairs and maintenance and common area expenses. If
the lease component is the predominant component, we account for all revenues under such lease as a single component in accordance with
the lease accounting standard. Conversely, if the nonlease component is the predominant component, all revenues under such lease are
accounted for in accordance with the revenue recognition accounting standard. Our operating leases qualify for the single component accounting,
and the lease component in each of our leases is predominant. Therefore, we account for all revenues from our operating leases under
the lease accounting standard and classify these revenues as rental income. We
commence recognition of rental income related to the operating leases at the date the property is ready for its intended use by the tenant
and the tenant takes possession or controls the physical use of the leased asset. Income from rentals related to fixed rental payments
under operating leases is recognized on a straight-line basis over the respective operating lease terms. Amounts received currently but
recognized as revenue in future periods are classified in deferred revenue in our consolidated balance sheets. |
| Impairment of Long-Lived Assets Other Than Goodwill | (s)
Impairment of Long-Lived Assets Other Than Goodwill Long-lived assets with finite lives, primarily property, plant and equipment,
including real estate properties held for lease, solar power systems, operating lease right-of-use assets, finance lease right-of-use
assets, and technologies and favorable contracts acquired through business combination, are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use
of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written
down to its fair value. There were no impairments of these assets during the years ended December 31, 2022, 2021 and 2020. |
| Goodwill | (t)
Goodwill Goodwill represents the excess of the purchase price over the fair value
of the net identifiable assets acquired in a business combination. In accordance with ASC Topic 350, “Intangibles – Goodwill
and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances
indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow
analysis. There were no impairments of goodwill during the years ended December 31, 2022, 2021 and 2020. |
| Revenue Recognition | (u)
Revenue Recognition The Company recognizes revenues from sales of real estate properties, sales
of land, providing of real estate management services, sales of solar power plants, providing of solar power plants operation and maintenance
services and sales of electricity under ASC Topic 606, “Revenue from Contracts with Customers”. To
determine revenue recognition for contracts with customers, the Company performs the following five steps : (i) identify the contract(s)
with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable
consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price
to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance
obligation. Revenue amount represents the invoiced value, net of consumption tax and applicable local government levies, if any. The
consumption tax on sales is calculated at 10 The
Company recognizes revenue from rental services under ASC Topic 842, “Leases”. The
Company currently generates its revenue from the following main sources: Revenue
from sales of real estate properties Revenues
from the sales of real estate properties are recognized at the point in time when title to and
possession of the property has transferred to the customer and the Company has no continuing involvement with the property, which is
generally upon the delivery of the real estate properties, which generally coincides with the receipt of cash consideration from the
customer. Our contracts with customers contain a single performance obligation and we do not provide warranties for sold real estate
properties. Revenue
from sales of land Revenues
from land sales are recognized when the parties are bound by the terms of a contract, consideration has been exchanged, title and other
attributes of ownership have been conveyed to the buyer by means of a closing and the Company is not obligated to perform further significant
development of the specific property sold. In general, the Company’s performance obligation for each of these land sales is fulfilled
upon the delivery of the land, which generally coincides with the receipt of cash consideration from the customer. Revenue
from rental services Rental
income is generally recognized on a straight-line basis over the terms of the tenancy agreements. For real estate and land leases,
these contracts are treated as leases for accounting purpose, rather than contracts with customers subject to ASC Topic 606. Also
see Note 2(r). Revenue
from real estate management services Revenues
from real estate management services consist of property management services, brokerage services and value-added management services.
Property management services mainly include property management services provided to tenants or property owners with revenue recognized
during the period when services are rendered. Revenues from brokerage services are earned upon closing of brokerage transaction. Value-added
management services mainly consist of real estate consulting and registration services with revenue recognized when performance obligation
is satisfied. Revenue
from sales of solar power plants Revenues
from the sales of solar power plants are recognized at the point in time when performance obligation is satisfied, which is after the
solar power plants have been grid connected and the customers obtain control of the solar power plants. The Company’s sales arrangements
for solar power plants do not contain any forms of continuing involvement that may affect the revenue recognition of the transactions,
nor any variable considerations for energy performance guarantees, minimum electricity end subscription commitments. Revenue
from solar power plants operation and maintenance services Revenues
from solar power plants operation and maintenance services are recognized over time when customers receive and consume the benefits provided
by the Company’s performances, which typically include system inspection, performance engineering analysis, corrective maintenance
repair and environmental services, under the terms of service arrangements. Revenue
from sales of electricity Revenues from the sales of electricity are generated by the Company’s
solar power systems under the power purchase arrangements (“PPAs”) with the power grid company based on the price stated in
the PPAs when electricity has been generated and transmitted to the grid. The Company also procures electricity from wholesale electricity
providers or purchases on Japan Electric Power Exchange for some of its customers who are charged based on the actual usage of electricity
each month. |
| Cost of Revenues | (v)
Cost of Revenues Cost of revenues primarily include the real estate properties and solar
power plants purchase price, acquisition costs, construction costs, direct costs to renovate, repair and upgrade the real estate properties,
solar power plants development costs, sublease costs, depreciation, direct material costs, electricity transportation costs, and salaries
and related expenses for personnel directly involved in delivery of services to customers. |
| Advertising Expenses | (w)
Advertising Expenses The
Company expenses advertising costs as they incurred. Total advertising expenses were JPY 197,203 248,794 27,906 |
| Concentration of Credit Risk | (x)
Concentration of Credit Risk Financial
instruments that potentially subject the Company to credit risk consist primarily of accounts and other receivables. The Company does
not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition
and payment practices of its customers to minimize collection risk on accounts receivable. Customers For the years ended December 31, 2022, 2021 and 2020, customers accounting
for 10% or more of the Company’s total revenues were as follows: SCHEDULES OF CONCENTRATION OF RISK
2022 2021 2020
For the Years Ended December 31,
2022 2021 2020
Customer A 35 % 24 % - * As of December 31, 2022 and 2021, customers accounting for 10% or more
of the Company’s total current outstanding accounts receivable were as follows:
December 31, December 31,
2022 2021
Customer B - * 18 %
Customer C - * 16 % Suppliers For
the years ended December 31, 2022, 2021 and 2020, suppliers accounting for 10% or more of the Company’s total purchases were as
follows:
2022 2021 2020
For the Years Ended December 31,
2022 2021 2020
Supplier A - * - * 16 %
As
of December 31, 2022 and 2021, suppliers accounting for 10% or more of the Company’s total current outstanding accounts payable
were as follows:
December 31, December 31,
2022 2021
Supplier B 31 % - *
Supplier C 27 % - *
Concentration risk, percentage 27 % - *
* Less than 10% |
| Segment Reporting | (y)
Segment Reporting ASC Topic 280, “Segment Reporting,” requires
use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s
chief operating decision maker organizes segments within the company for making operating decisions assessing performance and allocating
resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner
in which management disaggregates a company. Management determined the Company’s operations constitute a single
reportable segment in accordance with ASC Topic 280. |
| Comprehensive Income or Loss | (z)
Comprehensive Income or Loss ASC
Topic 220, “Comprehensive Income,” establishes standards for reporting and display of comprehensive income or loss, its components
and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. |
| Net Income Per Share | (aa)
Net Income Per Share Basic
net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting
period. Diluted net income per share reflects the potential dilution that could occur if stock options and other commitments to issue
common shares were exercised or equity awards vest resulting in the issuance of common shares that could share in the net income of the
Company. |
| Stock Based Compensation | (bb)
Stock Based Compensation The
Company accounts for stock based compensation awards in accordance with ASC Topic 718, “Compensation – Stock Compensation”.
The cost of services received from employees and non-employees in exchange for awards of equity instruments is recognized in the consolidated
statements of operations and comprehensive income based on the estimated fair value of those awards on the grant date and amortized on
a straight-line basis over the requisite service period or vesting period. The Company records forfeitures as they occur. |
| Related Parties and Transactions | (cc)
Related Parties and Transactions The
Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC Topic 850, “Related
Party Disclosures” and other relevant ASC standards. Parties,
which can be an entity or individual, are considered to be related if they have the ability, directly or indirectly, to control the Company
or exercise significant influence over the Company in making financial and operational decisions. Entities are also considered to be
related if they are subject to common control or common significant influence. Transactions
involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive,
free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related
party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations
can be substantiated. |
| Income Taxes | (dd)
Income Taxes Income
taxes are accounted for using an asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income
Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current
period and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s
financial statements or tax returns. Deferred tax assets also include the prior years’ net operating losses carried forward. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred
tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or
all of the deferred tax assets will not be realized. The
Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement
of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets
and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated
with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under
the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination
by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position
that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which,
based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination,
including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions.
Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more
than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax
positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the
accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.
Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general
and administrative expenses in the statements of operations. |
| Fair Value Measurements | (ee)
Fair Value Measurements The
Company performs fair value measurements in accordance with ASC Topic 820. Fair value is defined as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic
820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon
the lowest level of input that is significant to the fair value measurement. ASC Topic 820 establishes three levels of inputs that may
be used to measure fair value:
● Level 1: quoted prices
in active markets for identical assets or liabilities;
● Level 2: inputs other than
Level 1 that are observable, either directly or indirectly; or
● Level 3: unobservable inputs
that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. As
of December 31, 2022 and 2021, the carrying values of current assets, except for short-term investments, and current liabilities approximated
their fair values reported in the consolidated balance sheets due to the short-term maturities of these instruments. Assets
measured at fair value on a recurring basis as of December 31, 2022 and 2021 are summarized below. SCHEDULE OF FAIR VALUE ASSETS AND
LIABILITIES ON RECURRING BASIS
Fair Value Measurements as of December 31, 2022
Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Fair Value at December 31, 2022
Long-term investments:
Equity investments at fair value with readily determinable fair value 144,658 - - 144,658
Fair Value Measurements as of December 31, 2021
Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Fair Value at December 31, 2021
Short-term i nvestments:
Marketable securities 182,313 - - 182,313 |
| Commitments and Contingencies | (ff)
Commitments and Contingencies Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable
that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
| Assets of Discontinued Operations Held for Sale | (gg)
Assets of Discontinued Operations Held for Sale Assets are classified as “held for sale” when all of the following
criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets;
(2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales
of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated;
(4) the sale of the assets is probable and is expected to be completed within one year; (5) the assets are being actively marketed for
a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is
unlikely that significant changes to the plan will be made or the plan will be withdrawn. When all of these criteria have been met, the
assets are classified as “held for sale” in the consolidated balance sheets. Assets classified as “held for sale”
are reported at the lower of their carrying value or fair value less costs to sell. At the end of reporting period, if the fair value
of the held for sale assets less costs to sell is lower than the carrying value of the assets, the Company will record an impairment loss.
Depreciation of assets ceases upon designation as “held for sale”. The assets and liabilities of the Company’s mining machine business
have been segregated and reported in all periods presented as the sale of the mining machine business met the “held for sale”
criteria and the “discontinued operations” criteria. |
| Recent Accounting Pronouncements | (hh)
Recent Accounting Pronouncements New Accounting Pronouncements
Recently Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations
(Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer
of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASC Topic
606, Revenue from Contracts with Customers. This ASU is expected to improve comparability for both the recognition and measurement of
acquired revenue contracts with customers at the date of and after a business combination. The new guidance is effective for fiscal years
beginning after December 15, 2022, with early adoption permitted. The Company early adopted this standard effective January 1, 2022, and
the adoption did not have any impact on our consolidated financial statements, as the effect will largely depend on the magnitude of future
acquisitions. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance
(Topic 832), Disclosures by Business Entities About Government Assistance, which improves the transparency of government assistance received
by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such
assistance; and (3) the effect of the assistance on a business entity’s financial statements. The guidance is effective for all
entities within their scope for financial statements issued for annual periods beginning after December 15, 2021, with early application
permitted. The Company adopted this standard effective January 1, 2022, and the adoption did not have any impact on our consolidated financial
statements. New Accounting Pronouncements
Not Yet Effective The Company has reviewed
all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material
impact on the Company’s consolidated financial statements. |
