| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
| Dec. 31, 2023 |
| 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, 2023 and 2022, and the consolidated results of its operations and cash flows for the years ended December 31, 2023, 2022 and 2021.
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 variable interest entity (“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, 2023 and 2022 are as follows: SCHEDULE
OF CONSOLIDATED FINANCIAL STATEMENTS
December 31 December 31,
2023 2022
Total assets 2,815,206 617,631
Total liabilities 91,069 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 and container inventories,
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. |
| 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 the Financial Accounting Standards Board’s (“FASB”) Accounting Standards
Codification (“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, solar power plants inventories and container
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 classification of cash flows associated with the purchase and sale of real estate properties is based on the
activity that is likely to be the predominant source or use of cash flows for the properties. 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. The classification of cash flows associated with the purchase and sale of solar power plants is based on the activity
that is likely to be the predominant source or use of cash flows for the items. Container
inventories represent containerized data centers powered by solar energy, which are stated at the lower of cost and net realizable
value. Cost of container inventories is determined using the weighted average cost method. Adjustments are recorded to write down
the cost of inventories to the estimated net realizable value due to slow-moving and obsolete inventories, which is dependent upon
factors such as historical and forecasted consumer demand, and promotional environment. |
| 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, 2023, 2022 and 2021. 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.
Depreciation
Method Useful
Life
Buildings,
including buildings held for lease Straight-line
method 9 47
Facilities
attached to buildings Straight-line
or declining balance method 5 18
Machinery
and equipment Declining
balance method 6 17
Vehicles Declining
balance method 4 12
Tools,
furniture and fixture Declining
balance method 2 15
Land Not
depreciated -
Software * Straight-line
method 3 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. When real estate properties held for lease are committed for sales, the assets are transferred to inventories. The
classification of cash flows associated with the purchase and sale of real estate properties held for lease is based on the activity that
is likely to be the predominant source or use of cash flows for the properties. |
| 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 10 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. For sale-leaseback arrangements, the Company is required to determine whether the transaction qualifies as a sale,
which includes assessing whether a contract exists and if so, whether control has passed to the counterparty in the contract. Control
indicators include, but are not limited to, whether the entity has a present right to payment for the asset, whether the customer has
legal title to the asset, whether the entity has transferred physical possession of the asset, whether the customer has significant risks
and rewards of ownership of the asset, and whether the customer has accepted the asset. If it is determined that a sale has occurred,
the Company recognizes an operating or finance lease based on the factors outlined in the preceding paragraphs. A finance lease would
preclude sale accounting. If the Company does not transfer the control to the counterparty, the failed sale-leaseback transaction is accounted
for as a financing arrangement where the Company does not derecognize the transferred asset and accounts for proceeds received as financing
liabilities. 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. The Company
recognized an impairment loss of JPY 11,617 nil nil |
| 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 |
| 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, sales of electricity, sales of containers
and providing of container operation and management services 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. Revenue
from sales of containers Revenues
from the sales of containers are recognized at the point in time when the control of the products has transferred to the customers. The
transfer of control is considered complete when the customers accept the products. Revenue
from container operation and management services Revenues
from container operation and management services are recognized over time when customers receive and consume the benefits provided
by the Company’s performances, which typically include containerized data center inspection, performance engineering analysis,
maintenance, repair, environmental and security services, under the terms of service arrangements. |
| Cost of Revenues | (v)
Cost of Revenues Cost
of revenues primarily include the real estate properties, solar power plants and containers 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 225,549 197,203 248,794 |
| 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, 2023, 2022 and 2021, customers accounting for 10% or more of the Company’s total revenues were as
follows: SCHEDULES OF CONCENTRATION OF RISK
For the Years Ended December 31,
2023 2022 2021
Customer A - * 35 % 24 %
Customer B 13 % - - *
Customer C 26 % - * - * As
of December 31, 2023 and 2022, customers accounting for 10% or more of the Company’s total current outstanding accounts receivable
were as follows:
December 31, December 31,
2023 2022
Customer D 20 % - * Suppliers For
the years ended December 31, 2023, 2022 and 2021, no suppliers accounted for 10% or more of the Company’s total purchases. As
of December 31, 2023 and 2022, suppliers accounting for 10% or more of the Company’s total current outstanding accounts payable
were as follows:
December 31, December 31,
2023 2022
Supplier A - * 31 %
Supplier B - * 27 %
Supplier C 48 % - *
Supplier D 10 % - *
Concentration of credit risk 10 % - *
* 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 other expenses in the statements of operations and comprehensive income. |
| 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, 2023 and 2022, 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, 2023 and 2022 are summarized below. SCHEDULE OF FAIR VALUE ASSETS AND
LIABILITIES ON RECURRING BASIS
Fair Value Measurements as of December 31, 2023
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, 2023
Short-term investments:
Marketable securities 89,482 - - 89,482
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 |
| 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. |
| Government Assistance | (hh)
Government Assistance Government
assistance, in the form of monetary grants, is not recognized until there is
reasonable assurance that the Company will comply with the conditions of the grant and the Company will receive the grant. Grants
related to assets are government grants for the purchase of certain renewable energy assets. The Company accounts for grants related
to assets as deferred income, which includes in other current liabilities and other liabilities, on the consolidated balance sheets.
The Company recognizes the deferred income on grants related to depreciable assets in the statements of operations and comprehensive
income on a systematic basis over the useful life of the assets. During the year ended December 31, 2023, the Company received the government
grants of JPY 166,021 23,058 142,963 |
| Offering Costs | (ii)
Offering Costs Offering costs amounted to JPY 81,602 |
| Recent Accounting Pronouncements | (jj)
Recent Accounting Pronouncements In
December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, to enhance the transparency
and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. ASU
No. 2023-09 is effective for public companies for annual reporting periods beginning after December 15, 2024, on a prospective basis.
For all other entities, it is effective for annual reporting periods beginning after December 15, 2025, on a prospective basis. Early
adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related
disclosures. |
