XML 48 R29.htm IDEA: XBRL DOCUMENT v3.25.1
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 18 — RELATED PARTY TRANSACTIONS

 

The related parties that had material transactions for the years ended December 31, 2024 and 2023 consist of the following:

 

Name of Related Parties   Nature of Relationship as of December 31, 2024
Yoshiyuki Aikawa   Controlling shareholder, director and CEO of the Company
Yoshiko Aikawa   Representative director of subsidiaries of the Company
Mizuho Yamashita   Director of a subsidiary of the Company
Medical Corporation Shobikai   The relatives of the CEO of the Company being the Members of the MC
Medical Corporation Kowakai   The relatives of the CEO of the Company being the Members of the MC
Medical Corporation Nasukai   The relatives of the CEO of the Company being the Members of the MC
Medical Corporation Aikeikai   The relatives of the CEO of the Company being the Members of the MC
Medical Corporation Jukeikai   The relatives of the CEO of the Company being the Members of the MC
Medical Corporation Ritz Cosmetic Surgery   The relatives of the CEO of the Company being the Members of the MC
Medical Corporation Association Junikai   The relatives of the CEO of the Company being the Members of the MC
Medical Corporation Association Furinkai   The relatives of the CEO of the Company being the Members of the MC
Japan Medical & Beauty Inc.   Controlled by the CEO of the Company
SBC Inc., previously known as SBC China Inc.   Controlled by the CEO of the Company
Hariver Inc.   Controlled by the CEO of the Company
General Incorporated Association SBC   The CEO of the Company being the Member of General Incorporated Association SBC
Public Interest Foundation SBC Medical Promotion Foundation   The relative of CEO of the Company being a Member of Public Interest Foundation SBC Medical Promotion Foundation
AI Med Inc.  

The CEO of the Company is a principal shareholder of AI Med Inc.

Amulet Inc.   Controlled by Mizuho Yamashita, a director of a subsidiary of the Company
SBC Irvine MC   Significantly influenced by the Company
SBC Tokyo Medical University, previously known as Ryotokuji University   The CEO of the Company is the chairman of SBC Tokyo Medical University
SBC Shonan Osteopathic Clinic Inc.   The CEO of the Company is a principal shareholder of SBC Shonan Osteopathic Clinic Inc.
Waqoo Inc.   The CEO of the Company is a principal shareholder of Waqoo Inc.
General Incorporated Association Taiseikai   The relatives of CEO of the Company being the Members of General Incorporated Association Taiseikai
Skynet Academy Co., Ltd.*   Controlled by the CEO of the Company
Kijimadairakanko Inc.*   Controlled by the CEO of the Company

 

 

* Former subsidiaries of the Company that were disposed of to companies controlled by the CEO of the Company on December 23, 2024.

 

 

SBC MEDICAL GROUP HOLDINGS INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 18 — RELATED PARTY TRANSACTIONS (cont.)

 

During the years ended December 31, 2024 and 2023, the transactions with related parties are as follows:

 

Revenues from related parties  2024   2023 
   For the Years Ended
December 31,		 
Revenues from related parties  2024   2023 
Medical Corporation Shobikai  $53,862,520   $56,554,316 
Medical Corporation Kowakai   46,756,189    45,115,149 
Medical Corporation Nasukai   46,355,437    45,893,461 
Medical Corporation Aikeikai   17,997,072    21,521,302 
Medical Corporation Jukeikai   5,666,907    4,518,846 
Medical Corporation Ritz Cosmetic Surgery   7,435,446    2,603,405 
Japan Medical & Beauty Inc.   39,620    488,023 
Hariver Inc.   19,810    21,740 
SBC Inc., previously known as SBC China Inc.   2,512    467 
Public Interest Foundation SBC Medical Promotion Foundation   107    387 
General Incorporated Association SBC   801    569 
SBC Tokyo Medical University, previously known as Ryotokuji University   45,286    231,191 
Yoshiyuki Aikawa   98,445    67,516 
Mizuho Yamashita   —    19,214 
Amulet Inc.   —    3,587 
AI Med Inc.   787    556,397 
SBC Irvine MC   1,204,107    1,298,539 
Medical Corporation Association Furinkai   11,708,183    2,923,608 
Medical Corporation Association Junikai   3,923,228    851,105 
General Incorporated Association Taiseikai   692    — 
SBC Shonan Osteopathic Clinic Co., Ltd.   56,740    69,227 
Total  $195,173,889   $182,738,049 

 

 

SBC MEDICAL GROUP HOLDINGS INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 18 — RELATED PARTY TRANSACTIONS (cont.)

 

As of December 31, 2024 and 2023, the balances with related parties are as follows:

 

Accounts receivable 

December 31,

2024

  

December 31,

2023

 
Medical Corporation Shobikai  $5,091,430   $9,251,427 
Medical Corporation Nasukai   8,552,722    8,447,448 
Medical Corporation Kowakai   7,742,251    7,841,059 
Medical Corporation Aikeikai   3,071,378    4,661,649 
Medical Corporation Jukeikai   993,944    1,358,213 
Medical Corporation Association Furinkai   1,263,602    1,039,074 
Medical Corporation Ritz Cosmetic Surgery   817,283    520,891 
Medical Corporation Association Junikai   283,298    348,187 
Japan Medical & Beauty Inc.   —    139,767 
SBC Tokyo Medical University, previously known as Ryotokuji University   536    66,546 
AI Med Inc.   33    2,329 
SBC Inc., previously known as SBC China Inc.   137    45 
Public Interest Foundation SBC Medical Promotion Foundation   36    37 
SBC Shonan Osteopathic Clinic Co., Ltd.   4    — 
SBC Irvine MC   693,850    — 
Kijimadairakanko Inc.   336,176    — 
Total  $28,846,680   $33,676,672 

 

Finance lease receivables 

December 31,

2024

  

December 31,

2023

 
Medical Corporation Shobikai  $1,877,291   $2,568,709 
Medical Corporation Kowakai   2,490,705    2,779,347 
Medical Corporation Nasukai   3,872,683    2,019,117 
Medical Corporation Aikeikai   1,047,821    1,782,124 
Medical Corporation Ritz Cosmetic Surgery   2,479,771    79,439 
Medical Corporation Jukeikai   500,244    335,317 
Medical Corporation Association Furinkai   1,891,412    — 
Medical Corporation Association Junikai   197,452    — 
SBC Shonan Osteopathic Clinic Co., Ltd.   32,788    — 
Total  $14,390,167   $9,564,053 
Less: current portion   (5,992,585)    (6,143,564) 
Non-current portion  $8,397,582   $3,420,489 

 

Due from related party, net 

December 31,

2024

  

December 31,

2023

 
SBC Irvine MC  $2,836,013   $3,238,209 
Less: allowance for credit loss   (2,836,013)   (3,238,209)
Total  $—   $— 

 

Long-term investments in MCs - related parties 

December 31,

2024

  

December 31,

2023

 
Medical Corporation Shobikai  $6,378   $7,090 
Medical Corporation Kowakai   6,378    7,090 
Medical Corporation Nasukai   6,378    7,090 
Medical Corporation Aikeikai   6,378    7,090 
Medical Corporation Jukeikai   6,859,913    7,626,184 
Medical Corporation Ritz Cosmetic Surgery   10,935,485    12,157,011 
Total  $17,820,910   $19,811,555 

 

 

SBC MEDICAL GROUP HOLDINGS INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 18 — RELATED PARTY TRANSACTIONS (cont.)

 

Accounts payable 

December 31,

2024

  

December 31,

2023

 
Japan Medical & Beauty Inc.  $659,044   $— 
Total  $659,044   $— 

 

Advances from customers

 

December 31,

2024

  

December 31,

2023

 
Medical Corporation Shobikai  $5,076,300   $13,438,645 
Medical Corporation Kowakai   1,801,034    4,237,765 
Medical Corporation Nasukai   1,745,069    4,117,597 
Medical Corporation Aikeikai   379,931    1,168,947 
Medical Corporation Jukeikai   140,170    85,044 
Medical Corporation Ritz Cosmetic Surgery   45,701    10,177 
SBC Shonan Osteopathic Clinic Co., Ltd.   16,395    — 
Medical Corporation Association Furinkai   940,007    — 
Medical Corporation Association Junikai   1,594,926    — 
Total  $11,739,533   $23,058,175 

 

Notes payable – related parties 

December 31,

2024

  

December 31,

2023

 
Medical Corporation Shobikai  $4,653   $5,264,101 
Medical Corporation Kowakai   14,672    3,855,650 
Medical Corporation Nasukai   8,827    4,099,032 
Medical Corporation Aikeikai   2,236    1,561,642 
Medical Corporation Jukeikai   —    268,552 
Medical Corporation Ritz Cosmetic Surgery   1,201    268,445 
Total  $31,589   $15,317,422 
Less: current portion   (26,255)    (3,369,203) 
Non-current portion  $5,334   $11,948,219 

 

Due to related party 

December 31,

2024

  

December 31,

2023

 
Yoshiyuki Aikawa  $2,823,590   $3,583,523 
Total  $2,823,590   $3,583,523 

 

Allowance for credit loss movement 

December 31,

2024

  

December 31,

2023

 
Beginning balance  $3,238,209   $2,867,455 
Provision for credit loss   622,804    370,754 
Reversal of credit loss   (1,025,000)   — 
Ending balance  $2,836,013   $3,238,209 

 

Other income  

December 31,

2024

    

December 31,

2023

  
Medical Corporation Shobikai   $ 999,350     $                —  
Medical Corporation Kowakai     568,092       —  
Medical Corporation Nasukai     764,809       —  
Medical Corporation Aikeikai     316,352       —  
Medical Corporation Jukeikai     24,474       —  
Total   $ 2,673,077     $ —  

 

The balances of due to and due from related parties represent the outstanding loans to and from related parties, respectively, as of December 31, 2024 and 2023. These loans are non-secured, interest-free and due on demand. 

 

In February 2023, the Company paid off the retirement compensation expense accrued to Yoshiko Aikawa.

 

During the years ended December 31, 2024 and 2023, the Company purchased medical equipment and cosmetics of $8,472,202 and $2,842,588, respectively, from Japan Medical & Beauty Inc., which was recognized and included in the cost of revenues.

 

Also see Note 2(a), 5, 8, 10, 13, 14, 16, 17 and 21 for more transactions with related parties.

 

 

SBC MEDICAL GROUP HOLDINGS INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS