NOTE 19 — DISAGGREGATION OF REVENUES

Revenues generated from different revenue streams consist of the following:

 

 

 

For the Years
Ended December 31,

 

 

 

2025

 

 

2024

 

Franchising revenue

 

$

45,943,241

 

 

$

61,033,032

 

Procurement revenue

 

 

56,053,171

 

 

 

54,814,399

 

Management services revenue

 

 

29,628,534

 

 

 

53,113,155

 

Rental services revenue

 

 

23,032,651

 

 

 

16,141,714

 

Others

 

 

18,949,892

 

 

 

20,313,242

 

Total

 

$

173,607,489

 

 

$

205,415,542

 

 

During the years ended December 31, 2025 and 2024, the Company recognized revenue of $843,755 and $1,970,889 from the opening balance of advances from customers, respectively; and recognized revenue of $5,571,719 and nil from the opening balance of advances from customers — related parties, respectively.

As of December 31, 2025 and 2024, and for the years ended December 31, 2025 and 2024, substantially all of our long-lived assets and revenues generated were attributed to the Company’s operations in Japan.

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Mar 28, 2025

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.