Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

v3.22.1
RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2022
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 on or at any time during the three months ended March 31, 2022 (in thousands):

 

Class

Lender

 

Interest

Rate

 

 

Date of

Loan

 

Term of Loan

 

Principal Amount Outstanding at March 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

 

 

 

 

 

 

 

 

 

Yasushi Nagasaki (2)

 

10%

 

 

2/9/2022

 

Due on Demand

 

 

50

 

 

 

50

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Soomi Niihara (1)

 

10%

 

 

3/7/2022

 

Due on Demand

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

 

Osato Medical Clinic (3)

 

12%

 

 

3/11/2022

 

Due on Demand

 

 

250

 

 

 

250

 

 

 

 

 

 

 

 

 

Alfred Lui (2)

 

12%

 

 

3/11/2022

 

Due on Demand

 

 

50

 

 

 

50

 

 

 

 

 

 

 

 

 

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 Pei Zen (2)

 

10%

 

 

3/31/2022

 

Due on Demand

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

2,836

 

 

 

2,836

 

 

 

 

 

 

 

 

Revolving line of credit agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yutaka Niihara (1)

 

5.25%

 

 

12/27/2019

 

Due on Demand

 

 

400

 

 

 

400

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

400

 

 

 

400

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

3,236

 

 

$

3,236

 

 

$

 

 

$

3

 

 

 

 

The following table sets forth information relating to loans from related parties outstanding at any time during the year ended December 31, 2021:

Class

Lender

 

Interest

Rate

 

 

Date of

Loan

 

Term of Loan

 

Principal Amount Outstanding at December 31, 2021

 

 

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%

 

 

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, the Chairman of the Board and Chief Executive Officer of Emmaus, is also a director and the Chief Executive Officer of Hope International Hospice, Inc. Soomi Niihara is Dr. Niihara’s wife.

(2)

Current officer or director.

(3)

Dr. Osato, a director of Emmaus and his wife are the sole owner of Osato Medical Clinic.

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 agreements with Telcon, which holds 4,147,491 shares of the Emmaus common stock, or approximately 8.4% of the common stock outstanding as of March 31, 2022 and, as such, may be deemed to be an affiliate of the Company. As of March 31, 2022, the Company held a Telcon convertible bond in the principal amount of approximately $23.5 million as discussed in Note 5.