v3.25.2
VARIABLE INTEREST ENTITY
 6 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
VARIABLE INTEREST ENTITY

NOTE 3 — VARIABLE INTEREST ENTITY

 

A VIE is defined as a legal entity whose equity owners do not have sufficient equity at risk, or, as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb expected losses or the right to receive benefits from the entity that could potentially be significant to the VIE.

 

The Company followed ASC Topic 810, “Consolidation”, utilizing a qualitative approach, and determined that it is the primary beneficiary of its VIE, Aikawa Medical Management, Inc. (“AMM”) and consolidated the result of operations, financial conditions, and cash flows of AMM in the consolidated financial statements.

 

 

SBC MEDICAL GROUP HOLDINGS INCORPORATED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 3 — VARIABLE INTEREST ENTITY (cont.)

 

The following amounts and balances of AMM were included in the Company’s unaudited consolidated financial statements as of June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and 2024:

 

   June 30,
2025		   December 31,
2024		 
ASSETS          
Current assets          
Cash and cash equivalents  $21,893   $41,247 
Accounts receivable   33,992    20,076 
Prepaid expenses and other current assets   10,831    32,493 
Total Current Assets   66,716    93,816 
           
Property and equipment, net   1,799,372    1,799,372 
Loans receivables from subsidiaries of the Company   3,072,945    3,122,157 
Other assets   2,275    2,275 
Total Non-current Assets   4,874,592    4,923,804 
           
Total Assets  $4,941,308   $5,017,620 
           
LIABILITIES          
Current Liabilities          
Accounts payable  $18,450   $18,904 
Accrued liabilities and other current liabilities   17,824    17,824 
Due to related party   2,769,076    2,797,018 
Total Current Liabilities   2,805,350    2,833,746 
           
Loan payable to a subsidiary of the Company   8,267,303    8,245,328 
Total Non-current Liabilities   8,267,303    8,245,328 
           
Total Liabilities  $11,072,653   $11,079,074 

 

   2025   2024   2025   2024 
   For the Three Months Ended
June 30,		   For the Six Months Ended
June 30,		 
   2025   2024   2025   2024 
Revenues  $41,002   $40,470   $81,472   $188,860 
Cost of revenues  $—   $—   $—   $56,510 
Total operating expenses  $116,431   $112,919   $164,231   $255,720 
Net loss  $(75,430)  $(72,449)  $(57,759)  $(123,370)

 

   2025   2024 
   For the Six Months Ended June 30, 
   2025   2024 
Net cash used in operating activities  $(75,467)  $(101,725)
Net cash provided by investing activities  $25,000   $50,000 
Net cash used in financing activities  $(27,942)  $(49,424)

 

 

SBC MEDICAL GROUP HOLDINGS INCORPORATED

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS