Quarterly report [Sections 13 or 15(d)]

Bank Loan

v3.26.1
Bank Loan
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Bank Loan

Note 9 – Bank Loan

 

Lusher Holding LLC, a subsidiary of the Company entered into a term loan agreement with East West Bank (the “East West Loan”) to borrow $11,050,000, at 6.25% interest for the first 3-years, then floating at the Wall Street Journal Prime Rate plus (+) 0.25% for the remaining term, with a floor interest rate at 6.25%. The loan provides for 36 consecutive monthly principal and interest payments of approximately $68,698.64, beginning on May 1, 2026 and subsequently, 83 monthly principal and interest payments of an initially estimated amount of approximately $73,917.99 (subject to change based on Wall Street Journal Prime Rate plus 0.25%) beginning May 1, 2029. A final principal and interest payment of approximately $9,533,143.67 (subject to change based on Wall Street Journal Prime Rate plus 0.25%) is due on April 1, 2036. Focus Universal Inc. is listed as the primary guarantor of this East West Loan with Desheng Wang listed as a backup guarantor. This loan is secured by 901 Corporate Center building.

           
    June 30, 2026     December 31, 2025  
East West Bank Loan   $ 10,998,706     $ –  
Less: current portion   $ 129,290     $ –  
Long term portion   $ 10,869,416     $ –  

 

Interest expense incurred from the loan amounted to $86,103 for the six months ended June 30,2026.

 

Future maturities of payments on the bank loan are as follows as of June 30, 2026:

Future maturities of bank loan payments      
Year   Amount  
Year ending December 31, 2026   $ 412,192  
Year ending December 31, 2027     824,374  
Year ending December 31, 2028     824,384  
Year ending December 31, 2029     866,138  
Year ending December 31, 2030     887,016  
Thereafter     14,189,977  
Total     18,004,081  
Less: Amounts representing interest     (7,005,375 )
Total   $ 10,998,706