Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

v3.22.2.2
RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 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 at any time during the nine months ended September 30, 2022 (in thousands):

 

Class

Lender

 

Interest

Rate

 

 

Date of

Loan

 

Term of Loan

 

Principal Amount Outstanding at September 30, 2022

 

 

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

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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 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

 

 

 

 

 

 

8

 

 

 

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

 

 

 

 

 

 

2

 

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

 

8/16/2022

 

5 years

 

 

1,669

 

 

 

1,669

 

 

 

 

 

 

14

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

$

6,302

 

 

$

6,302

 

 

$

 

 

$

24

 

 

Revolving line of credit agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yutaka Niihara(2)

 

5.25% (3)

 

 

12/27/2019

 

Due on Demand

 

 

400

 

 

 

400

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

400

 

 

 

400

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

6,702

 

 

$

6,702

 

 

$

 

 

$

40

 

 

 

 

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

 

 

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%(3)

 

 

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 13 for information regarding recent related party loans.

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 September 30, 2022. As of September 30, 2022, the Company held a Telcon convertible bond in the principal amount of approximately $18.4 million as discussed in Note 5.