Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

v3.24.3
RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2024
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, 2024 (in thousands):

 

Class

Lender

 

Interest
Rate

 

Date of
Loan

 

Term of Loan

 

Principal Amount Outstanding at September 30, 2024

 

 

Highest
Principal
Outstanding

 

 

Amount of
Principal
Repaid or
Converted to Shares

 

 

Amount of
Interest
Paid

 

Promissory notes payable to related parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

Willis Lee(2)

 

12%

 

10/29/2020

 

Due on Demand

 

 

100

 

 

 

100

 

 

 

—

 

 

 

2

 

 

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

 

 

 

—

 

 

 

36

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

250

 

 

 

250

 

 

 

—

 

 

 

19

 

 

Yutaka and Soomi Niihara(1)

 

10%

 

8/16/2022

 

5 years

 

 

1,669

 

 

 

1,669

 

 

 

—

 

 

 

125

 

 

Hope International Hospice, Inc.(1)

 

10%

 

8/17/2022

 

Due on Demand

 

 

50

 

 

 

50

 

 

 

—

 

 

 

—

 

 

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

 

 

350

 

 

 

700

 

 

 

350

 

 

 

70

 

 

 

 

 

 

 

Subtotal

 

$

5,093

 

 

$

5,443

 

 

$

350

 

 

$

252

 

 

 

 

 

 

 

 

Total

 

$

5,093

 

 

$

5,443

 

 

$

350

 

 

$

252

 

 

(1)
Dr. Niihara, a former Director and former 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.

The following table sets forth information relating to loans from related parties outstanding at any time during the year ended December 31, 2023:

 

Class

Lender

 

Interest
Rate

 

Date of
Loan

 

Term of Loan

 

Principal Amount Outstanding at December 31, 2023

 

 

Highest
Principal
Outstanding

 

 

Amount of
Principal
Repaid or
Converted to Shares

 

 

Amount of
Interest
Paid

 

Current, Promissory notes payable to related parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Willis C. 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)

 

12%

 

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)

 

10%

 

3/15/2022

 

Due on Demand

 

 

150

 

 

 

150

 

 

 

—

 

 

 

—

 

Hope International Hospice, Inc.(1)

 

10%

 

3/30/2022

 

Due on Demand

 

 

150

 

 

 

150

 

 

 

—

 

 

 

—

 

Wei Peu Zen(2)

 

10%

 

3/31/2022

 

Due on Demand

 

 

200

 

 

 

200

 

 

 

—

 

 

 

—

 

Willis C. Lee(2)

 

10%

 

4/14/2022

 

Due on Demand

 

 

45

 

 

 

45

 

 

 

—

 

 

 

—

 

Hope International Hospice, Inc.(1)

 

12%

 

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)

 

12%

 

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)

 

10%

 

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 to 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 and former 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.

 

See Note 7 for more information on recent developments with respect to certain related-party loans.

See Notes 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 6.5% of the common stock outstanding as of September 30, 2024. As of September 30, 2024, the Company held a Telcon convertible bond in the principal amount of KRW 20.1 billion, or approximately $15.3 million as discussed in Note 5.