| RELATED PARTIES TRANSACTIONS |
6. RELATED PARTIES TRANSACTIONS
The related parties of the company with whom transactions
are reported in these financial statements are as follows:
| Name of entity or Individual | | Relationship with the Company and its subsidiaries | | ABVC BioPharma, Inc. (“ABVC”) | | Sole shareholder of BioKey Cayman | | BioLite Inc. (“BioLite”) | | A majority owned subsidiary of ABVC | | AiBtloPharma Inc. (“AiBtl”) | | A majority owned subsidiary of ABVC | | Rgene Corporation (the “Rgene”) | | The Chairman of Rgene is Mr. Tsung-Shann Jiang | | The Jiangs | | Mr. Tsung-Shann Jiang, the controlling beneficiary shareholder of Rgene, the Chief Scientific Officer (CSO) of ABVC, the Chairman and CEO of BioLite Holding Inc. and BioLite Inc. and the President and a member of board of directors of BioFirst Ms. Shu-Ling Jiang, a member of board of directors of ABVC and BioLite Inc. | Interest expense – related parties
During the six months ended June 30, 2026 and 2025, the Company
incurred interest expenses due to loans from ABVC. The interest expense recognized is as follows:
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30 | | |
June 30 | | |
June 30 | | |
June 30 | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| ABVC | |
$ | 42,270 | | |
$ | 36,264 | | |
$ | 83,766 | | |
$ | 77,392 | |
Operating sublease income – related parties
During the six months ended June 30, 2026 and
2025, the Company subleased certain facility and office spaces to ABVC and AiBtl. The sublease income recognized is as follows:
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30 | | |
June 30 | | |
June 30 | | |
June 30 | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| ABVC | |
$ | 3,000 | | |
$ | 2,400 | | |
$ | 6,000 | | |
$ | 4,800 | |
| AiBtl | |
| 3,000 | | |
| 3,000 | | |
| 6,000 | | |
| 6,000 | |
| Total | |
$ | 6,000 | | |
$ | 5,400 | | |
$ | 12,000 | | |
$ | 10,800 | |
Due from related parties
| | |
June 30,
2026
(Unaudited) | | |
December 31,
2025 | |
| AiBtl | |
$ | 12,558 | | |
$ | 24,558 | |
Amount due from AiBtl and ABVC includes certain
operating expenses paid on behalf of AiBtl and ABVC.
Due to related parties
Amount due to related parties consisted of the
following as of the periods indicated:
| | |
June 30,
2026
(Unaudited) | | |
December 31,
2025 | |
| ABVC (1) | |
$ | 4,363,201 | | |
$ | 4,089,971 | |
| BioLite (2) | |
| 211,068 | | |
| 208,798 | |
| AiBtl | |
| 18,000 | | |
| - | |
| Management(3) | |
| 38,000 | | |
| - | |
| Total | |
$ | 4,630,269 | | |
$ | 4,298,769 | |
| Accrued interest payable to ABVC (1) | |
$ | 667,613 | | |
$ | 583,847 | |
| (1) | Since 2020, the Company has been relying on ABVC’s recurring loans to support the Company’s operation. These loans bore an interest rate of 1.5% to 6.5% per annum. As of June 30, 2026 and December 31, 2025, the loan principal amounted to $2,665,911 and $2,629,911, respectively. The remaining balances are accrued interest and operating expenses paid by ABVC on behalf of the Company. This amount is due and payable upon demand by ABVC. | | | | | (2) | Mainly payables to clinical development services, offsetting by certain payments made by the Company on behalf of BioLite. The advances bear no interest. | | | | | (3) | In June 2026, management of Biokey advanced $38,000 to Biokey for working
capital purposes. The advances bear an interest rate of 3.75% per annum, starting from June 3, 2026 for 6 months. |
|