Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

v3.21.2
RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2020
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 12 — RELATED PARTY TRANSACTIONS

The following table sets forth information relating to our loans from related persons outstanding as of September 30, 2020 and any interest paid during the nine months ended September 30, 2020 (in thousands):

Class

Lender

 

Interest

Rate

 

 

Date of

Loan

 

Term of Loan

 

Principal Amount Outstanding at September 30, 2020

 

 

 

Amount of

Interest

Paid

 

 

Current, Promissory note payable to related parties:

 

 

 

 

 

 

 

 

 

 

 

Lan T. Tran (2)

 

10%

 

 

4/29/2016

 

Due on Demand

 

$

20

 

 

 

$

 

 

 

Lan T. Tran (2)

 

11%

 

 

2/10/2018

 

Due on Demand

 

 

 

 

 

 

35

 

 

 

Lan T. Tran (2)

 

10%

 

 

2/9/2019

 

Due on Demand

 

 

14

 

 

 

 

 

 

 

Hope International Hospice, Inc.

 

12%

 

 

9/1/2020

 

Due on Demand

 

 

189

 

 

 

 

 

 

 

Hope International Homecare, Inc.

 

12%

 

 

9/1/2020

 

Due on Demand

 

 

98

 

 

 

 

 

 

 

Soomi Niihara

 

12%

 

 

9/1/2020

 

Due on Demand

 

 

395

 

 

 

 

 

 

 

Willis Lee

 

12%

 

 

9/1/2020

 

Due on Demand

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

816

 

 

 

 

35

 

 

Revolving line of credit

 

 

 

 

 

 

 

 

 

 

 

Yutaka Niihara (2)

 

5.25%

 

 

12/27/2019

 

Due on Demand

 

 

800

 

 

 

 

27

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

800

 

 

 

 

27

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,616

 

 

 

$

62

 

 

 

The following table sets forth information relating to our loans from related persons outstanding at any time during the year ended December 31, 2019:

Class

Lender

 

Interest

Rate

 

 

Date of

Loan

 

Term of Loan

 

Principal Amount Outstanding at December 31, 2019

 

 

Highest

Principal

Outstanding

 

 

Amount of

Principal

Repaid or

Converted

into Stock

 

 

Amount of

Interest

Paid

 

 

Conversion

Rate

 

 

Current, Promissory note payable to related parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lan T. Tran (2)

 

10%

 

 

4/29/2016

 

Due on Demand

 

$

20

 

 

$

20

 

 

$

 

 

$

 

 

 

 

 

 

Hope International Hospice, Inc. (1)

 

10%

 

 

6/3/2016

 

Due on Demand

 

 

 

 

 

250

 

 

 

250

 

 

 

78

 

 

 

 

 

 

Lan T. Tran (2)

 

10%

 

 

2/9/2017

 

Due on Demand

 

 

 

 

 

12

 

 

 

 

 

 

2

 

 

 

 

 

 

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

 

 

 

82

 

 

 

 

 

 

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

 

 

 

 

 

 

Revolving line of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yutaka Niihara (2)

 

5%

 

 

12/27/2019

 

Due on Demand

 

 

600

 

 

 

600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

600

 

 

 

600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

793

 

 

$

16,759

 

 

$

15,077

 

 

$

1,635

 

 

 

 

 

 

 

(1)

Dr. Niihara, the Chairman and Chief Executive Officer of the Company, and his wife, Soomi Niihara, are the co-owners and directors of Hope International Hospice, Inc., of which Dr. Niihara is the Chief Executive Officer.

(2)

Officer.

(3)

Director.

(4)

Mr. Zen, a Director of the Company, is the sole owner of Profit Preview International Group, Ltd.

 

See Note 7 for a discussion of the Company’s revolving line of credit agreement with Dr. Niihara.

 

See Notes 6, 11 and 13 for a discussion of the Company’s distribution and supply agreements with Telcon, which holds 4,147,491 shares of the Company common stock, or approximately 8.6% of the common stock outstanding as of September 30, 2020.