Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

v3.23.2
RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 12 — RELATED PARTY TRANSACTIONS

The following table sets forth information relating to loans from related parties outstanding at any time during the six months ended June 30, 2023 (in thousands):

 

Class

Lender

 

Interest
Rate

 

Date of
Loan

 

Term of Loan

 

Principal Amount Outstanding at June 30, 2023

 

 

Highest
Principal
Outstanding

 

 

Amount of
Principal
Repaid

 

 

Amount of
Interest
Paid

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

12

 

 

Hope International Hospice, Inc.(1)

 

10%

 

8/15/2022

 

Due on Demand

 

 

 

 

 

50

 

 

 

50

 

 

 

2

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

250

 

 

 

250

 

 

 

 

 

 

6

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

1,669

 

 

 

1,669

 

 

 

 

 

 

42

 

 

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.(1)

 

10%

 

10/20/2022

 

Due on Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

10%

 

3/17/2023

 

Due on Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

3/21/2023

 

Due on Demand

 

 

127

 

 

 

127

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

$

6,003

 

 

$

6,053

 

 

$

50

 

 

$

62

 

Convertible notes payable - related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

Wei Peu Derek Zen(2)

 

10%

 

1/18/2023

 

1 - 2 years

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

7,003

 

 

$

7,053

 

 

$

50

 

 

$

62

 

 

The following table sets forth information relating to loans from related parties outstanding at any time during the year ended December 31, 2022:

 

Class

Lender

 

Interest
Rate

 

Date of
Loan

 

Term of Loan

 

Principal Amount Outstanding at 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%

 

12/27/2019

 

Due on Demand

 

 

 

 

 

400

 

 

 

400

 

 

 

110

 

 

 

 

 

 

 

 

Subtotal

 

$

 

 

$

400

 

 

$

400

 

 

$

110

 

 

 

 

 

 

 

 

Total

 

$

5,826

 

 

$

6,802

 

 

$

976

 

 

$

247

 

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

 

See Notes 3, 5, 6 and 11 for a discussion of the Company’s agreements with Telcon, which holds 4,147,491 shares of common stock of the Company, or approximately 7.7% of the common stock outstanding as of June 30, 2023. As of June 30, 2023, the Company held a Telcon convertible bond in the principal amount of approximately $17.9 million as discussed in Note 5.