Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS

v3.23.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2022
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 at any time during the year ended December 31, 2022 (in thousands except for conversion rate and share information):

Class

Lender

 

Interest
Rate

 

Date of
Loan

 

Term of Loan

 

Principal Amount Outstanding December 31, 2022

 

 

Highest
Principal
Outstanding

 

 

Amount of
Principal
Repaid

 

 

Amount of
Interest
Paid

 

Current, Promissory note payable to related parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

Willis Lee(2)

 

12%

 

10/29/2020

 

Due on Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

Soomi Niihara(1)

 

12%

 

12/7/2021

 

Due on Demand

 

 

700

 

 

 

700

 

 

 

 

 

 

 

 

Soomi Niihara(1)

 

12%

 

1/18/2022

 

Due on Demand

 

 

 

 

 

300

 

 

 

300

 

 

 

32

 

 

Yasushi Nagasaki(2)

 

10%

 

2/9/2022

 

Due on Demand

 

 

 

 

 

50

 

 

 

50

 

 

 

4

 

 

Hope International Hospice, Inc.(1)

 

10%

 

2/9/2022

 

Due on Demand

 

 

350

 

 

 

350

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

10%

 

2/15/2022

 

Due on Demand

 

 

210

 

 

 

210

 

 

 

 

 

 

 

 

Soomi Niihara(1)

 

10%

 

2/15/2022

 

Due on Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

George Sekulich(2)

 

10%

 

2/16/2022

 

Due on Demand

 

 

 

 

 

26

 

 

 

26

 

 

 

2

 

 

Soomi Niihara(1)

 

10%

 

3/7/2022

 

Due on Demand

 

 

 

 

 

200

 

 

 

200

 

 

 

15

 

 

Hope International Hospice, Inc.(1)

 

12%

 

3/15/2022

 

Due on Demand

 

 

150

 

 

 

150

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

12%

 

3/30/2022

 

Due on Demand

 

 

150

 

 

 

150

 

 

 

 

 

 

 

 

Wei Peu Derek Zen(2)

 

10%

 

3/31/2022

 

Due on Demand

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

Willis Lee(2)

 

10%

 

4/14/2022

 

Due on Demand

 

 

45

 

 

 

45

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

10%

 

5/25/2022

 

Due on Demand

 

 

40

 

 

 

40

 

 

 

 

 

 

 

 

Yutaka and Soomi Niihara(1)

 

12%

 

7/27/2022

 

5 years

 

 

402

 

 

 

402

 

 

 

 

 

 

20

 

 

Hope International Hospice, Inc.(1)

 

10%

 

8/15/2022

 

Due on Demand

 

 

50

 

 

 

50

 

 

 

 

 

 

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

250

 

 

 

250

 

 

 

 

 

 

8

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

1,669

 

 

 

1,669

 

 

 

 

 

 

56

 

 

Hope International Hospice, Inc.(1)

 

10%

 

8/17/2022

 

Due on Demand

 

 

50

 

 

 

50

 

 

 

 

 

 

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

8/17/2022

 

Due on Demand

 

 

60

 

 

 

60

 

 

 

 

 

 

 

 

Seah Lim(2)

 

6%

 

9/16/2022

 

3 years

 

 

1,200

 

 

 

1,200

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.

 

10%

 

10/20/2022

 

Due on Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

$

5,826

 

 

$

6,402

 

 

$

576

 

 

$

137

 

Revolving line of credit agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

Yutaka Niihara(2)

 

5.25% (3)

 

12/27/2019

 

Due on Demand

 

 

 

 

 

400

 

 

 

 

 

 

110

 

 

 

 

 

 

 

 

Subtotal

 

$

 

 

$

400

 

 

$

 

 

$

110

 

 

 

 

 

 

 

 

Total

 

$

5,826

 

 

$

6,802

 

 

$

576

 

 

$

247

 

 

The following table sets forth information relating to our loans from related persons outstanding at any time during the year ended December 31, 2021 (in thousands except for conversion rate and share information):

 

Class

Lender

 

Interest
Rate

 

Date of
Loan

 

Term of Loan

 

Principal Amount Outstanding December 31, 2021

 

 

Highest
Principal
Outstanding

 

 

Amount of
Principal
Repaid or
Converted
into Stock

 

 

Amount of
Interest
Paid

 

Current, Promissory note payable to related parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

Willis Lee (2)

 

12%

 

10/29/2020

 

Due on Demand

 

$

100

 

 

$

100

 

 

$

 

 

$

 

 

Soomi Niihara (1)

 

12%

 

1/20/2021

 

Due on Demand

 

 

 

 

 

700

 

 

 

700

 

 

 

13

 

 

Soomi Niihara (1)

 

12%

 

9/15/2021

 

Due on Demand

 

 

 

 

 

300

 

 

 

300

 

 

 

3

 

 

Soomi Niihara (1)

 

12%

 

12/7/2021

 

Due on Demand

 

 

700

 

 

 

700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

$

800

 

 

$

1,800

 

 

$

1,000

 

 

$

16

 

Revolving line of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

Yutaka Niihara (1)

 

5.25%

 

12/27/2019

 

Due on Demand

 

 

400

 

 

 

800

 

 

 

400

 

 

 

35

 

 

 

 

 

 

 

 

Subtotal

 

 

400

 

 

 

800

 

 

 

400

 

 

 

35

 

 

 

 

 

 

 

 

Total

 

$

1,200

 

 

$

2,600

 

 

$

1,400

 

 

$

51

 

(1) Dr. Niihara, a Director and the Chairman, and Chief Executive Officer of the Company, is also a director and the Chief Executive Officer of Hope International Hospice, Inc.

(2) Officer or director.

(3) The rate varies with changes in the prime rate and does not give effect to the “tax gross-up” described in Note 7.

 

See Note 7 for a discussion of the Company’s revolving line of credit agreement with Dr. Niihara and Note 8 for a discussion of the amendment to the previously issued warrant to Dr. Niihara.

 

See Notes 6 and 11 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 8.4% of the common stock outstanding as of December 31, 2022. The Company holds a convertible bond of Telcon in the principal amount of KRW 26.5 billion, or approximately $21.0 million as of December 31, 2022 which matures on October 16, 2030 and bears interest at 2.1% a year, payable quarterly. See Note 5 for more information regarding the convertible bond.