Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS

v3.21.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 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 at any time during the year ended December 31, 2020 (in thousands except for conversion rate and share information).

 

Class

Lender

 

Interest

Rate

 

 

Date of

Loan

 

Term of Loan

 

Principal Amount Outstanding at December 31, 2020

 

 

Highest

Principal

Outstanding

 

 

Amount of

Principal

Repaid or

Converted

into Stock

 

 

Amount of

Interest

Paid

 

Current, Promissory note payable to related parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lan T. Tran (2)

 

10%

 

 

4/29/2016

 

Due on Demand

 

$

20

 

 

$

20

 

 

$

 

 

$

 

 

Lan T. Tran (2)

 

11%

 

 

2/10/2018

 

Due on Demand

 

 

 

 

 

159

 

 

 

159

 

 

 

35

 

 

Lan T. Tran (2)

 

10%

 

 

2/9/2019

 

Due on Demand

 

 

14

 

 

 

14

 

 

 

 

 

 

 

 

Hope Int'l Hospice (1)

 

12%

 

 

9/1/2020

 

Due on Demand

 

 

 

 

 

194

 

 

 

194

 

 

 

2

 

 

Hope Int'l Homecare (1)

 

12%

 

 

9/1/2020

 

Due on Demand

 

 

 

 

 

189

 

 

 

189

 

 

 

1

 

 

Soomi Niihara

 

12%

 

 

9/1/2020

 

Due on Demand

 

 

 

 

 

98

 

 

 

98

 

 

 

4

 

 

Soomi Niihara

 

12%

 

 

10/28/2020

 

Due on Demand

 

 

 

 

 

395

 

 

 

395

 

 

 

12

 

 

Willis Lee (2)

 

12%

 

 

9/1/2020

 

Due on Demand

 

 

 

 

 

685

 

 

 

685

 

 

 

1

 

 

Willis Lee (2)

 

12%

 

 

10/29/2020

 

Due on Demand

 

 

100

 

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

$

134

 

 

$

1,854

 

 

$

1,820

 

 

$

55

 

Revolving line of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yutaka Niihara (2)

 

5.25%

 

 

12/27/2019

 

Due on Demand

 

$

800

 

 

$

800

 

 

$

200

 

 

$

37

 

 

 

 

 

 

 

 

 

 

Subtotal

 

$

800

 

 

$

800

 

 

$

200

 

 

$

37

 

 

 

 

 

 

 

 

 

 

Total

 

$

934

 

 

$

2,654

 

 

$

2,020

 

 

$

92

 

 

 

The following table sets forth information relating to our loans from related persons outstanding at any time during the year ended December 31, 2019 (in thousands except for conversion rate and share information).

 

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 Int'l Hospice (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 of the Board and Chief Executive Officer of the Company, is co-owner with his wife Soomi Niihara, a director and the Chief Executive Officer of Hope International Hospice, Inc.

(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 and 11 for a discussion of the Company’s distribution and supply agreements with Telcon, which holds 4,844,622 shares of the Company common stock, or approximately 8.5% of the common stock outstanding as of December 31, 2020. The Company also purchased a convertible bond of Telcon in the principal amount of KRW 30 billion, or approximately $27.9 million which matures on October 16, 2030 and bears interest at 2.1% a year, payable quarterly.

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