| RELATED PARTY TRANSACTIONS |
NOTE 11 — RELATED PARTY TRANSACTIONS
The following table sets forth information relating to our loans from related persons outstanding on or at any time during the nine months ended September 30, 2019 (in thousands):
|
Class
|
Lender
|
|
Interest
Rate
|
|
|
Date of
Loan
|
|
Term of Loan
|
|
Principal Amount Outstanding at September 30, 2019
|
|
|
Highest
Principal
Outstanding
|
|
|
Amount of
Principal
Repaid or
Converted
into Stock
|
|
|
Amount of
Interest
Paid
|
|
|
Conversion
Rate
|
|
|
Shares Underlying Notes September 30, 2019
|
|
|
Current, Promissory note payable to related parties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lan T. Tran (2)
|
|
10%
|
|
|
4/29/2016
|
|
Due on Demand
|
|
|
20
|
|
|
|
20
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Hope Hospice (1)
|
|
10%
|
|
|
6/3/2016
|
|
Due on Demand
|
|
|
—
|
|
|
|
250
|
|
|
|
250
|
|
|
|
78
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Lan T. Tran (2)
|
|
10%
|
|
|
2/9/2017
|
|
Due on Demand
|
|
|
—
|
|
|
|
12
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Yutaka Niihara (2)(3)
|
|
10%
|
|
|
9/14/2017
|
|
Due on Demand
|
|
|
—
|
|
|
|
904
|
|
|
|
27
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Lan T. Tran (2)
|
|
11%
|
|
|
2/10/2018
|
|
Due on Demand
|
|
|
159
|
|
|
|
159
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Lan T. Tran (2)
|
|
10%
|
|
|
2/9/2019
|
|
Due on Demand
|
|
|
14
|
|
|
|
14
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
$
|
193
|
|
|
$
|
1,359
|
|
|
$
|
277
|
|
|
$
|
80
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current, Convertible notes payable to related parties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yasushi Nagasaki (2)
|
|
10%
|
|
|
6/29/2012
|
|
Due on Demand
|
|
$
|
—
|
|
|
$
|
200
|
|
|
$
|
200
|
|
|
$
|
56
|
|
|
$
|
3.30
|
|
|
|
—
|
|
|
|
Yutaka & Soomi Niihara (2)(3)
|
|
10%
|
|
|
11/16/2015
|
|
2 years
|
|
|
—
|
|
|
|
200
|
|
|
|
200
|
|
|
|
73
|
|
|
$
|
4.50
|
|
|
|
—
|
|
|
|
Wei Peu Zen (3)
|
|
10%
|
|
|
11/6/2017
|
|
2 years
|
|
|
—
|
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
597
|
|
|
$
|
10.00
|
|
|
|
—
|
|
|
|
Profit Preview International Group, Ltd. (4)
|
|
10%
|
|
|
2/1/2018
|
|
2 years
|
|
|
—
|
|
|
|
4,037
|
|
|
|
4,037
|
|
|
|
385
|
|
|
$
|
10.00
|
|
|
|
—
|
|
|
|
Profit Preview International Group, Ltd. (4)
|
|
10%
|
|
|
3/21/2018
|
|
2 years
|
|
|
—
|
|
|
|
5,363
|
|
|
|
5,363
|
|
|
|
442
|
|
|
$
|
10.00
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
$
|
—
|
|
|
$
|
14,800
|
|
|
$
|
14,800
|
|
|
$
|
1,553
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
193
|
|
|
$
|
16,159
|
|
|
$
|
15,077
|
|
|
$
|
1,633
|
|
|
|
|
|
|
|
—
|
|
|
(1)
|
Dr. Niihara, a Director and the Chairman, and Chief Executive Officer of the Company, is also the Chief Executive Officer of Hope Hospice.
|
|
(4)
|
Mr. Zen, a Director of the Company, is the sole owner of Profit Preview International Group, Ltd.
|
The following table sets forth information relating to our loans from related persons outstanding at any time during the year ended December 31, 2018:
|
Class
|
Lender
|
|
Interest
Rate
|
|
|
Date of
Loan
|
|
Term of Loan
|
|
Principal Amount Outstanding at December 31, 2018
|
|
|
Highest
Principal
Outstanding
|
|
|
Amount of
Principal
Repaid or
Converted
into Stock
|
|
|
Amount of
Interest
Paid
|
|
|
Conversion
Rate
|
|
|
Shares Underlying Notes December 31, 2018
|
|
|
Current, Promissory note payable to related parties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Masaharu & Emiko Osato (3)
|
|
11%
|
|
|
12/29/2015
|
|
Due on Demand
|
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
300
|
|
|
$
|
76
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Lan T. Tran (2)
|
|
11%
|
|
|
2/10/2016
|
|
Due on Demand
|
|
|
—
|
|
|
|
131
|
|
|
|
131
|
|
|
|
29
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Masaharu & Emiko Osato (3)
|
|
11%
|
|
|
2/25/2016
|
|
Due on Demand
|
|
|
—
|
|
|
|
400
|
|
|
|
400
|
|
|
|
94
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Lan T. Tran (2)
|
|
10%
|
|
|
4/29/2016
|
|
Due on Demand
|
|
|
20
|
|
|
|
20
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Hope Hospice (1)
|
|
10%
|
|
|
6/3/2016
|
|
Due on Demand
|
|
|
250
|
|
|
|
250
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Lan T. Tran (2)
|
|
10%
|
|
|
2/9/2017
|
|
Due on Demand
|
|
|
12
|
|
|
|
12
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Yutaka Niihara (2)(3)
|
|
10%
|
|
|
9/14/2017
|
|
Due on Demand
|
|
|
27
|
|
|
|
904
|
|
|
|
877
|
|
|
|
95
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Lan T. Tran (2)
|
|
11%
|
|
|
2/10/2018
|
|
Due on Demand
|
|
|
159
|
|
|
|
159
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
$
|
468
|
|
|
$
|
2,176
|
|
|
$
|
1,708
|
|
|
$
|
294
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current, Convertible notes payable to related parties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yasushi Nagasaki (2)
|
|
10%
|
|
|
6/29/2012
|
|
Due on Demand
|
|
|
200
|
|
|
|
200
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
3.30
|
|
|
|
74
|
|
|
|
Yutaka & Soomi Niihara (2)(3)
|
|
10%
|
|
|
11/16/2015
|
|
2 years
|
|
|
200
|
|
|
|
200
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
4.50
|
|
|
|
58
|
|
|
|
Wei Peu Zen (3)
|
|
10%
|
|
|
11/6/2017
|
|
2 years
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
—
|
|
|
|
250
|
|
|
$
|
10.00
|
|
|
|
533
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
$
|
5,400
|
|
|
$
|
5,400
|
|
|
$
|
—
|
|
|
$
|
250
|
|
|
|
|
|
|
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non Current, Convertible notes payable to related parties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Preview International Group, Ltd. (4)
|
|
10%
|
|
|
2/1/2018
|
|
2 years
|
|
|
4,037
|
|
|
|
4,037
|
|
|
|
—
|
|
|
|
202
|
|
|
$
|
10.00
|
|
|
|
420
|
|
|
|
Profit Preview International Group, Ltd. (4)
|
|
10%
|
|
|
3/21/2018
|
|
2 years
|
|
|
5,363
|
|
|
|
5,363
|
|
|
|
—
|
|
|
|
268
|
|
|
$
|
10.00
|
|
|
|
552
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
$
|
9,400
|
|
|
$
|
9,400
|
|
|
$
|
—
|
|
|
$
|
470
|
|
|
|
|
|
|
|
972
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
15,268
|
|
|
$
|
16,976
|
|
|
$
|
1,708
|
|
|
$
|
1,014
|
|
|
|
|
|
|
|
1,637
|
|
|
(1)
|
Dr. Niihara, a Director and the Chairman, and Chief Executive Officer of the Company, is also the Chief Executive Officer of Hope Hospice.
|
|
(4)
|
Mr. Zen, a Director of the Company, is the sole owner of Profit Preview International Group, Ltd.
|
|