HeartCore Enterprises, Inc. Debt Disclosure
NOTE 10 – LONG-TERM DEBTS
The Company’s long-term debts represent loans borrowed from a bank and a financial institution as follows:
| Name of Bank/Financial Institution | Original
Amount Borrowed | Loan Duration | Annual Interest Rate | Balance as of December 31, 2025 | Balance
as of December 31, 2024 | |||||||||||
| First Home Bank | $ | 350,000 | (a) | 4/18/2019 – 4/18/2029 | Wall Street Journal U.S. Prime Rate + 2.75 | % | $ | 157,923 | $ | 195,766 | ||||||
| U.S. Small Business Administration | $ | 350,000 | (a) | 5/30/2020 – 5/30/2050 | 3.75 | % | 341,051 | 349,322 | ||||||||
| Aggregate outstanding principal balances | 498,974 | 545,088 | ||||||||||||||
| Less: current portion | (50,598 | ) | (46,382 | ) | ||||||||||||
| Non-current portion | $ | 448,376 | $ | 498,706 | ||||||||||||
| (a) | These debts are guaranteed by Prakash Sadasivam, the CEO and non-controlling shareholder of Sigmaways, and secured by all assets of Sigmaways. |
For the years ended December 31, 2025 and 2024, the Company recorded $31,268 and $46,291 in interest expenses related to long-term debts, respectively.
As of December 31, 2025, future minimum principal payments for long-term debts are as follows:
| Principal | ||||
| Year Ended December 31, | Payment | |||
| 2026 | $ | 50,598 | ||
| 2027 | 55,325 | |||
| 2028 | 60,471 | |||
| 2029 | 27,857 | |||
| 2030 | 9,973 | |||
| Thereafter | 294,750 | |||
| Total | $ | 498,974 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 9, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.