Annual report [Section 13 and 15(d), not S-K Item 405]

RELATED PARTY TRANSACTIONS

v3.25.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2024
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, 2024 (in thousands except for conversion rate and share information):

Class

Lender

 

Interest
Rate

 

Date of
Loan

 

Term of Loan

 

Principal Amount Outstanding December 31, 2024

 

 

Highest
Principal
Outstanding

 

 

Amount of
Principal
Repaid or
Converted
into Stock

 

 

Amount of
Interest
Paid

 

Promissory note payable - related parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

Willis Lee(2)

 

12%

 

10/29/2020

 

On Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

2

 

 

Soomi Niihara(1)

 

12%

 

12/7/2021

 

On Demand

 

 

700

 

 

 

700

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

10%

 

2/9/2022

 

On Demand

 

 

350

 

 

 

350

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

10%

 

2/15/2022

 

On Demand

 

 

210

 

 

 

210

 

 

 

 

 

 

 

 

Soomi Niihara(1)

 

10%

 

2/15/2022

 

On Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

12%

 

3/15/2022

 

On Demand

 

 

150

 

 

 

150

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

12%

 

3/30/2022

 

On Demand

 

 

150

 

 

 

150

 

 

 

 

 

 

 

 

Wei Peu Zen(2)

 

10%

 

3/31/2022

 

On Demand

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

Albert Niihara(1)

 

10%

 

4/4/2022

 

On Demand

 

 

350

 

 

 

500

 

 

 

150

 

 

 

 

 

Willis Lee(2)

 

10%

 

4/14/2022

 

On Demand

 

 

45

 

 

 

45

 

 

 

 

 

 

 

 

Albert Niihara(1)

 

10%

 

4/19/2022

 

On Demand

 

 

250

 

 

 

250

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

10%

 

5/25/2022

 

On Demand

 

 

40

 

 

 

40

 

 

 

 

 

 

 

 

Dr. Yutaka and Soomi Niihara(1)

 

12%

 

7/27/2022

 

5 years

 

 

402

 

 

 

402

 

 

 

 

 

 

44

 

 

Dr. Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

250

 

 

 

250

 

 

 

 

 

 

23

 

 

Dr. Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

1,669

 

 

 

1,669

 

 

 

 

 

 

153

 

 

Hope International Hospice, Inc.(1)

 

10%

 

8/17/2022

 

On Demand

 

 

50

 

 

 

50

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

10%

 

10/20/2022

 

On Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

Hope International Hospice, Inc.(1)

 

10%

 

3/17/2023

 

On Demand

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

Dr. Yutaka and Soomi Niihara(1)

 

10%

 

3/21/2023

 

On Demand

 

 

127

 

 

 

127

 

 

 

 

 

 

 

 

Wei Peu Zen(2)

 

60%

 

12/1/2023

 

2 months

 

 

350

 

 

 

700

 

 

 

350

 

 

 

70

 

 

 

 

 

 

 

Subtotal

 

$

5,693

 

 

$

6,193

 

 

$

500

 

 

$

292

 

 

 

 

 

 

 

 

Total

 

$

5,693

 

 

$

6,193

 

 

$

500

 

 

$

292

 

 

The following table sets forth information relating to our loans from related persons outstanding at any time during the year ended December 31, 2023 (in thousands except for conversion rate and share information):

 

Class

Lender

 

Interest
Rate

 

Date of
Loan

 

Term of Loan

 

Principal Amount Outstanding December 31, 2023

 

 

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%

 

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 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

 

 

 

 

 

 

48

 

 

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

 

 

 

 

 

 

25

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

1,669

 

 

 

1,669

 

 

 

 

 

 

167

 

 

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

 

 

 

6

 

 

Seah Lim(2)

 

6%

 

9/16/2022

 

3 years

 

 

 

 

 

1,200

 

 

 

1,200

 

 

 

90

 

 

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

 

 

 

 

 

 

 

 

Wei Peu Zen(2)

 

60%

 

12/1/2023

 

2 months

 

 

700

 

 

 

700

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

5,443

 

 

 

6,753

 

 

 

1,310

 

 

 

338

 

Convertible note payable - related parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wei Peu Zen(2)

 

10%

 

1/18/2023

 

1 - 2 years

 

 

 

 

 

1,000

 

 

 

1,000

 

 

 

91

 

 

 

 

 

 

 

 

Subtotal

 

 

 

 

 

1,000

 

 

 

1,000

 

 

 

91

 

 

 

 

 

 

 

 

Total

 

$

5,443

 

 

$

7,753

 

 

$

2,310

 

 

$

429

 

(1) Dr. Niihara, a former director, Chairman of the Board 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.

 

See Note 5 for a discussion of the sale of the Company's EJ Holdings shares to Niihara International, Inc., formed by Dr. Niihara and the related loan receivable from EJ Holdings.

 

See 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 6.5% of the common stock outstanding as of December 31, 2024. The Company holds an investment in a convertible bond of Telcon in the principal amount of KRW 20.1 billion, or approximately $13.6 million as of December 31, 2024, which matures on October 16, 2030 and bears interest at 2.1% a year, payable quarterly. See Note 5 for more information regarding the investment in convertible bond.