| RELATED PARTY TRANSACTIONS |
12.
RELATED PARTY TRANSACTIONS
The
Company had the following related party transactions:
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Due
to related party – From time to time, the Company loaned money to APIIS Financial Group, a company owned by James Chae,
who is also the majority stockholder and CEO of the Company. The balance is non-interest bearing and due on demand. As of December
31, 2024 and 2023, the balance was $732,710 and $24,176, respectively. |
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Related
party compensation - For the years ended December 31, 2024 and 2023, the compensation to James Chae was $139,769 and $339,740,
respectively. |
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Notes
payable and Convertible notes to related party –. On June 12, 2024, the Company
consummated the acquisition of certain assets in three Las Vegas restaurants from Mr. Jihyuck
Hwang. Total acquisition cost was $3.6 million, consisting of $1.8 million in cash, issuance
of a $600,000 promissory note and issuance of a $1.2 million convertible note to Mr. Hwang.
The promissory note will be repaid in two equal installments without interest, while the
convertible note was repaid by the Company on March 7, 2025 with the proceeds from a loan
made to the Company on or about March 6, 2025. As of December 31, 2024, the balances were
$600,000 and $1.2 million for the promissory note and the convertible note, respectively.
The balances were zero as of December 31, 2023.
Interest
expense was $3,024 and $0 for the year ended December 31, 2024 and 2023, respectively. |
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
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