| SCHEDULE OF RELATED PARTY TRANSACTIONS |
During
the three and six months ended June 30, 2025 and 2024, the transactions with related parties are as follows:
SCHEDULE
OF RELATED PARTY TRANSACTIONS
| Revenues, net – related parties | |
2025 | | |
2024 |
|
|
|
2025 |
|
|
|
2024 | |
| | |
For the Three Months Ended June 30, |
|
|
|
For the Six Months Ended
June 30, | |
| Revenues, net | |
2025 | | |
2024 |
|
|
2025 |
|
|
2024 | |
| Medical Corporation Shobikai | |
$ | 10,962,737 | | |
$ | 13,086,609 |
|
|
$ |
22,515,192 |
|
|
$ |
26,205,206 | |
| Medical Corporation Kowakai | |
| 8,909,329 | | |
| 12,410,044 |
|
|
|
20,022,253 |
|
|
|
25,998,681 | |
| Medical Corporation Nasukai | |
| 10,244,692 | | |
| 12,053,758 |
|
|
|
22,535,537 |
|
|
|
24,113,981 | |
| Medical Corporation Aikeikai | |
| 3,646,228 | | |
| 5,505,514 |
|
|
|
7,288,931 |
|
|
|
11,113,976 | |
| Medical Corporation Jukeikai | |
| 890,237 | | |
| 1,792,189 |
|
|
|
2,064,207 |
|
|
|
3,698,101 | |
| Medical Corporation Ritz Cosmetic Surgery | |
| 1,044,588 | | |
| 1,764,569 |
|
|
|
2,558,211 |
|
|
|
2,672,883 | |
| Japan Medical & Beauty Inc. | |
| 10,373 | | |
| 9,608 |
|
|
|
20,206 |
|
|
|
19,713 | |
| Hariver Inc. | |
| 5,186 | | |
| 4,804 |
|
|
|
10,103 |
|
|
|
9,856 | |
| SBC Inc. | |
| 206 | | |
| 310 |
|
|
|
314 |
|
|
|
1,842 | |
| Public Interest Foundation SBC Medical Promotion Foundation | |
| 30 | | |
| 6 |
|
|
|
41 |
|
|
|
59 | |
| General Incorporated Association SBC | |
| — | | |
| 304 |
|
|
|
— |
|
|
|
304 | |
| SBC Tokyo Medical University | |
| 2,155 | | |
| 8,012 |
|
|
|
16,317 |
|
|
|
40,817 | |
| SBC Shonan Osteopathic Clinic Inc. | |
| — | | |
| 1,107 |
|
|
|
— |
|
|
|
2,880 | |
| Yoshiyuki Aikawa | |
| 800 | | |
| 10,672 |
|
|
|
29,987 |
|
|
|
54,130 | |
| AI Med Inc. | |
| 98 | | |
| 58 |
|
|
|
190 |
|
|
|
207 | |
| SBC Irvine MC | |
| 37,753 | | |
| 347,337 |
|
|
|
239,538 |
|
|
|
682,057 | |
| Medical Corporation Association Furinkai | |
| 2,304,254 | | |
| 2,587,472 |
|
|
|
4,938,946 |
|
|
|
4,880,109 | |
| Medical Corporation Association Junikai | |
| 879,282 | | |
| 1,455,672 |
|
|
|
1,948,521 |
|
|
|
2,013,450 | |
| Medical Corporation Association Taiseikai | |
| — | | |
| 993 |
|
|
|
— |
|
|
|
993 | |
| Skynet Academy Co., Ltd. | |
| 6,915 | | |
| — |
|
|
|
13,471 |
|
|
|
— | |
| Kijimadairakanko Inc. | |
| 35 | | |
| — |
|
|
|
78 |
|
|
|
— | |
| Total | |
$ | 38,944,898 | | |
$ | 51,039,038 |
|
|
$ |
84,202,043 |
|
|
$ |
101,509,245 | |
| Cost of revenues | |
2025 | | |
2024 | |
|
|
2025 |
|
|
|
2024 |
|
| | |
For the Three Months Ended June 30, | |
|
For the Six Months Ended
June 30, |
|
| Cost of revenues | |
2025 | | |
2024 | |
|
2025 |
|
|
2024 |
|
| Medical Corporation Nasukai | |
$ | 65,959 | | |
$ | — | |
|
$ |
65,959 |
|
|
$ |
— |
|
| Medical Corporation Aikeikai | |
| 3,742 | | |
| — | |
|
|
3,742 |
|
|
|
— |
|
| Japan Medical & Beauty Inc. | |
| 4,502,380 | | |
| 3,616,103 | |
|
|
7,801,736 |
|
|
|
5,413,462 |
|
| SBC Tokyo Medical University | |
| 94,295 | | |
| — | |
|
|
183,689 |
|
|
|
— |
|
| Kijimadairakanko Inc. | |
| 3,226 | | |
| — | |
|
|
71,404 |
|
|
|
— |
|
| Total | |
$ | 4,669,602 | | |
$ | 3,616,103 | |
|
$ |
8,126,530 |
|
|
$ |
5,413,462 |
|
| Selling, general and administrative expenses | |
2025 | | |
2024 | |
|
|
2025 |
|
|
|
2024 |
|
| | |
For the Three Months Ended June 30, | |
|
For the Six Months Ended
June 30, |
|
| Selling, general and administrative expenses | |
2025 | | |
2024 | |
|
2025 |
|
|
2024 |
|
| Medical Corporation Shobikai | |
$ | 354,930 | | |
$ | — | |
|
$ |
354,930 |
|
|
$ |
— |
|
| Medical Corporation Kowakai | |
| 3,697 | | |
| — | |
|
|
3,697 |
|
|
|
— |
|
| Medical Corporation Nasukai | |
| 15,178 | | |
| — | |
|
|
15,178 |
|
|
|
— |
|
| Medical Corporation Aikeikai | |
| 28,218 | | |
| — | |
|
|
28,218 |
|
|
|
— |
|
| Medical Corporation Jukeikai | |
| 791 | | |
| — | |
|
|
791 |
|
|
|
— |
|
| Medical Corporation Association Junikai | |
| 337 | | |
| — | |
|
|
337 |
|
|
|
— |
|
| Medical Corporation Association Furinkai | |
| 429 | | |
| — | |
|
|
429 |
|
|
|
— |
|
| SBC Inc. | |
| 7 | | |
| — | |
|
|
7 |
|
|
|
— |
|
| General Incorporated Association SBC | |
| 12,180 | | |
| — | |
|
|
12,180 |
|
|
|
— |
|
| Total | |
$ | 415,767 | | |
$ | — | |
|
$ |
415,767 |
|
|
$ |
— |
|
As
of June 30, 2025 and December 31, 2024, the balances with related parties are as follows:
| Accounts receivable | |
June 30, 2025 | | |
December 31, 2024 | |
| Medical Corporation Shobikai | |
$ | 14,064,516 | | |
$ | 5,091,430 | |
| Medical Corporation Nasukai | |
| 12,696,547 | | |
| 8,552,722 | |
| Medical Corporation Kowakai | |
| 12,226,967 | | |
| 7,742,251 | |
| Medical Corporation Aikeikai | |
| 4,936,342 | | |
| 3,071,378 | |
| Medical Corporation Jukeikai | |
| 1,494,312 | | |
| 993,944 | |
| Medical Corporation Association Furinkai | |
| 1,164,544 | | |
| 1,263,602 | |
| Medical Corporation Ritz Cosmetic Surgery | |
| 1,430,776 | | |
| 817,283 | |
| Medical Corporation Association Junikai | |
| 226,361 | | |
| 283,298 | |
| Hariver Inc. | |
| 1,908 | | |
| — | |
| SBC Tokyo Medical University | |
| 605 | | |
| 536 | |
| AI Med Inc. | |
| 36 | | |
| 33 | |
| SBC Inc. | |
| 288 | | |
| 137 | |
| Public Interest Foundation SBC Medical Promotion Foundation | |
| 66 | | |
| 36 | |
| SBC Shonan Osteopathic Clinic Inc. | |
| — | | |
| 4 | |
| SBC Irvine MC | |
| 677,515 | | |
| 693,850 | |
| Kijimadairakanko Inc. | |
| 60 | | |
| 336,176 | |
| Total | |
$ | 48,920,843 | | |
$ | 28,846,680 | |
| Accounts
receivable with related parties | |
$ | 48,920,843 | | |
$ | 28,846,680 | |
SBC
MEDICAL GROUP HOLDINGS INCORPORATED
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE
17 — RELATED PARTY TRANSACTIONS (cont.)
| Finance lease receivables | |
June 30, 2025 | | |
December 31, 2024 | |
| Medical Corporation Shobikai | |
$ | 4,201,316 | | |
$ | 1,877,291 | |
| Medical Corporation Kowakai | |
| 4,241,594 | | |
| 2,490,705 | |
| Medical Corporation Nasukai | |
| 6,659,496 | | |
| 3,872,683 | |
| Medical Corporation Aikeikai | |
| 1,580,515 | | |
| 1,047,821 | |
| Medical Corporation Ritz Cosmetic Surgery | |
| 2,333,678 | | |
| 2,479,771 | |
| Medical Corporation Jukeikai | |
| 407,692 | | |
| 500,244 | |
| Medical Corporation Association Furinkai | |
| 1,947,518 | | |
| 1,891,412 | |
| Medical Corporation Association Junikai | |
| 928,218 | | |
| 197,452 | |
| SBC Shonan Osteopathic Clinic Inc. | |
| 26,883 | | |
| 32,788 | |
| Total | |
| 22,326,910 | | |
| 14,390,167 | |
| Finance
lease receivables | |
| 22,326,910 | | |
| 14,390,167 | |
| Less: current portion | |
| (9,128,931 | ) | |
| (5,992,585 | ) |
| Finance
lease receivables Less: current portion | |
| (9,128,931 | ) | |
| (5,992,585 | ) |
| Non-current portion | |
$ | 13,197,979 | | |
$ | 8,397,582 | |
| Finance
lease receivables Non-current portion | |
$ | 13,197,979 | | |
$ | 8,397,582 | |
| Other receivables | |
June 30, 2025 | | |
December 31, 2024 | |
| Medical Corporation Shobikai | |
$ | 672,427 | | |
$ | — | |
| Medical Corporation Kowakai | |
| 443,278 | | |
| — | |
| Medical Corporation Nasukai | |
| 419,358 | | |
| — | |
| Medical Corporation Aikeikai | |
| 215,926 | | |
| — | |
| Medical Corporation Jukeikai | |
| 75,800 | | |
| — | |
| Medical Corporation Ritz Cosmetic Surgery | |
| 64,619 | | |
| — | |
| Total | |
$ | 1,891,408 | | |
$ | — | |
| Due from related party, net | |
June 30, 2025 | | |
December 31, 2024 | |
| SBC Irvine MC | |
$ | 2,766,013 | | |
$ | 2,836,013 | |
| Less: allowance for credit loss | |
| (2,766,013 | ) | |
| (2,836,013 | ) |
| Total | |
$ | — | | |
$ | — | |
| Due from related
party, net | |
$ | — | | |
$ | — | |
| Long-term investments in MCs | |
June 30, 2025 | | |
December 31, 2024 | |
| Medical Corporation Shobikai | |
$ | 6,936 | | |
$ | 6,378 | |
| Medical Corporation Kowakai | |
| 6,936 | | |
| 6,378 | |
| Medical Corporation Nasukai | |
| 6,936 | | |
| 6,378 | |
| Medical Corporation Aikeikai | |
| 6,936 | | |
| 6,378 | |
| Medical Corporation Jukeikai | |
| 7,460,610 | | |
| 6,859,913 | |
| Medical Corporation Ritz Cosmetic Surgery | |
| 11,893,068 | | |
| 10,935,485 | |
| Total | |
$ | 19,381,422 | | |
$ | 17,820,910 | |
| Long-term investments
in MCs – related parties | |
$ | 19,381,422 | | |
$ | 17,820,910 | |
| Accounts payable | |
June 30, 2025 | | |
December 31, 2024 | |
| Japan Medical & Beauty Inc. | |
$ | 1,993,737 | | |
$ | 659,044 | |
| SBC Tokyo Medical University | |
| 34,682 | | |
| — | |
| Kijimadairakanko Inc. | |
| 3,568 | | |
| — | |
| Medical Corporation Shobikai | |
| 305,853 | | |
| — | |
| Medical Corporation Nasukai | |
| 292,118 | | |
| — | |
| Medical Corporation Kowakai | |
| 362,910 | | |
| — | |
| Medical Corporation Aikeikai | |
| 112,416 | | |
| — | |
| Medical Corporation Jukeikai | |
| 33,611 | | |
| — | |
| Medical Corporation Association Furinkai | |
| 39,926 | | |
| — | |
| Medical Corporation Ritz Cosmetic Surgery | |
| 13,146 | | |
| — | |
| Medical Corporation Association Junikai | |
| 50,855 | | |
| — | |
| SBC Shonan Osteopathic Clinic Inc. | |
| 2,584 | | |
| — | |
| General Incorporated Association SBC | |
| 583 | | |
| — | |
| Total | |
$ | 3,245,989 | | |
$ | 659,044 | |
| Accounts
payable | |
$ | 3,245,989 | | |
$ | 659,044 | |
| Advances from customers | |
June 30, 2025 | | |
December 31, 2024 | |
| Medical Corporation Shobikai | |
$ | 4,389,144 | | |
$ | 5,076,300 | |
| Medical Corporation Kowakai | |
| 529,366 | | |
| 1,801,034 | |
| Medical Corporation Nasukai | |
| 726,562 | | |
| 1,745,069 | |
| Medical Corporation Aikeikai | |
| 158,652 | | |
| 379,931 | |
| Medical Corporation Jukeikai | |
| 57,179 | | |
| 140,170 | |
| Medical Corporation Ritz Cosmetic Surgery | |
| 22,214 | | |
| 45,701 | |
| SBC Shonan Osteopathic Clinic Inc. | |
| 21,716 | | |
| 16,395 | |
| Medical Corporation Association Furinkai | |
| 1,700,347 | | |
| 940,007 | |
| Medical Corporation Association Junikai | |
| 2,727,827 | | |
| 1,594,926 | |
| Total | |
$ | 10,333,007 | | |
$ | 11,739,533 | |
| Advances from
customers | |
$ | 10,333,007 | | |
$ | 11,739,533 | |
SBC
MEDICAL GROUP HOLDINGS INCORPORATED
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE
17 — RELATED PARTY TRANSACTIONS (cont.)
| Notes
and other payables |
|
June
30,
2025 |
|
|
December
31,
2024 |
|
| Medical
Corporation Shobikai |
|
$ |
710,513 |
|
|
$ |
4,653 |
|
| Medical
Corporation Kowakai |
|
|
582,673 |
|
|
|
14,672 |
|
| Medical
Corporation Nasukai |
|
|
621,202 |
|
|
|
8,827 |
|
| Medical
Corporation Aikeikai |
|
|
228,791 |
|
|
|
2,236 |
|
| Medical
Corporation Jukeikai |
|
|
66,495 |
|
|
|
— |
|
| Medical
Corporation Ritz Cosmetic Surgery |
|
|
82,767 |
|
|
|
1,201 |
|
| General
Incorporated Association SBC |
|
|
979,607 |
|
|
|
— |
|
| Total |
|
|
3,272,048 |
|
|
|
31,589 |
|
| Notes
payable – related parties |
|
|
3,272,048 |
|
|
|
31,589 |
|
| Less:
current portion |
|
|
(3,272,048 |
) |
|
|
(26,255 |
) |
| Notes
payable – related parties Less: current portion |
|
|
(3,272,048 |
) |
|
|
(26,255 |
) |
| Non-current
portion |
|
$ |
— |
|
|
$ |
5,334 |
|
| Due to related party | |
June 30, 2025 | | |
December 31, 2024 | |
| Yoshiyuki Aikawa | |
$ | 2,810,647 | | |
$ | 2,823,590 | |
| Total | |
$ | 2,810,647 | | |
$ | 2,823,590 | |
| Due to related
party | |
$ | 2,810,647 | | |
$ | 2,823,590 | |
| | |
| | |
| |
| | |
For the Six Months Ended June 30, | |
| Allowance for credit loss movement | |
2025 | | |
2024 | |
| Beginning balance | |
$ | 2,836,013 | | |
$ | 3,238,209 | |
| Provision for credit loss | |
| — | | |
| 62,804 | |
| Reversal of credit loss | |
| (70,000 | ) | |
| — | |
| Ending balance | |
$ | 2,766,013 | | |
$ | 3,301,013 | |
|