| RELATED PARTY TRANSACTIONS |
14.
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 June 30,
2025 and December 31, 2024, the balance was $1,544,897 and $732,710, respectively. |
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Related
party compensation - For the three months ended June 30, 2025 and 2024, the compensation to James Chae was $42,154, 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 10, 2025
with the proceeds from a loan made to the Company on or about March 7, 2025. As of June 30, 2025, the balances were $600,000 and
$0 for the promissory note and the convertible note, respectively. The balances were $600,000 and $1,200,000, respectively, as of
December 31, 2024. |
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Interest
expense was $0 for the three and six months ended June 30, 2025 and 2024. |
NOTES
TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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