| SCHEDULE OF RELATED PARTY TRANSACTIONS |
During the three and nine months ended September 30, 2025 and 2024, the transactions with related parties are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30, |
|
|
For the Nine Months
Ended September 30, |
|
Revenues, net |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Medical Corporation Shobikai |
|
$ |
10,289,857 |
|
|
$ |
17,432,767 |
|
|
$ |
32,805,049 |
|
|
$ |
43,637,973 |
|
Medical Corporation Kowakai |
|
|
8,663,847 |
|
|
|
11,847,370 |
|
|
|
28,686,100 |
|
|
|
37,846,051 |
|
Medical Corporation Nasukai |
|
|
9,784,466 |
|
|
|
10,608,288 |
|
|
|
32,320,003 |
|
|
|
34,722,269 |
|
Medical Corporation Aikeikai |
|
|
3,380,455 |
|
|
|
3,911,210 |
|
|
|
10,669,386 |
|
|
|
15,025,186 |
|
Medical Corporation Jukeikai |
|
|
1,126,342 |
|
|
|
1,121,440 |
|
|
|
3,190,549 |
|
|
|
4,819,541 |
|
Medical Corporation Ritz Cosmetic Surgery |
|
|
852,589 |
|
|
|
1,343,935 |
|
|
|
3,410,800 |
|
|
|
4,016,818 |
|
Japan Medical & Beauty Inc. |
|
|
10,173 |
|
|
|
10,063 |
|
|
|
30,379 |
|
|
|
29,776 |
|
Hariver Inc. |
|
|
5,087 |
|
|
|
5,032 |
|
|
|
15,190 |
|
|
|
14,888 |
|
SBC Inc. |
|
|
221 |
|
|
|
324 |
|
|
|
535 |
|
|
|
2,166 |
|
Public Interest Foundation SBC Medical Promotion Foundation |
|
|
14 |
|
|
|
26 |
|
|
|
55 |
|
|
|
85 |
|
General Incorporated Association SBC |
|
|
— |
|
|
|
498 |
|
|
|
— |
|
|
|
802 |
|
SBC Tokyo Medical University |
|
|
74,946 |
|
|
|
3,975 |
|
|
|
91,263 |
|
|
|
44,792 |
|
SBC Shonan Osteopathic Clinic Inc. |
|
|
— |
|
|
|
17,837 |
|
|
|
— |
|
|
|
20,717 |
|
Yoshiyuki Aikawa |
|
|
69 |
|
|
|
23,244 |
|
|
|
30,056 |
|
|
|
77,374 |
|
AI Med Inc. |
|
|
95 |
|
|
|
519 |
|
|
|
285 |
|
|
|
726 |
|
SBC Irvine MC |
|
|
— |
|
|
|
278,881 |
|
|
|
239,538 |
|
|
|
960,938 |
|
Medical Corporation Association Furinkai |
|
|
3,182,443 |
|
|
|
3,104,905 |
|
|
|
8,121,389 |
|
|
|
7,985,014 |
|
Medical Corporation Association Junikai |
|
|
2,040,455 |
|
|
|
1,497,395 |
|
|
|
3,988,976 |
|
|
|
3,510,845 |
|
General Incorporated Association Taiseikai |
|
|
— |
|
|
|
1,534 |
|
|
|
— |
|
|
|
2,527 |
|
Skynet Academy Co., Ltd. |
|
|
6,782 |
|
|
|
— |
|
|
|
20,253 |
|
|
|
— |
|
Kijimadairakanko Inc. |
|
|
— |
|
|
|
— |
|
|
|
78 |
|
|
|
— |
|
Medical Corporation Misakikai |
|
|
184,517 |
|
|
|
— |
|
|
|
184,517 |
|
|
|
— |
|
General Incorporated Association Miotokai |
|
|
15,190 |
|
|
|
— |
|
|
|
15,190 |
|
|
|
— |
|
Total |
|
$ |
39,617,548 |
|
|
$ |
51,209,243 |
|
|
$ |
123,819,591 |
|
|
$ |
152,718,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30, |
|
|
For the Nine Months
Ended September 30, |
|
Cost of revenues |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Medical Corporation Nasukai |
|
$ |
10,980 |
|
|
$ |
— |
|
|
$ |
76,939 |
|
|
$ |
— |
|
Medical Corporation Aikeikai |
|
|
836 |
|
|
|
— |
|
|
|
4,578 |
|
|
|
— |
|
Japan Medical & Beauty Inc. |
|
|
3,637,091 |
|
|
|
2,039,492 |
|
|
|
11,438,827 |
|
|
|
7,452,954 |
|
SBC Tokyo Medical University |
|
|
61,798 |
|
|
|
— |
|
|
|
245,487 |
|
|
|
— |
|
Kijimadairakanko Inc. |
|
|
6,881 |
|
|
|
— |
|
|
|
78,285 |
|
|
|
— |
|
Waqoo, Inc. |
|
|
300,479 |
|
|
|
— |
|
|
|
300,479 |
|
|
|
— |
|
Co-medical Co., Ltd. |
|
|
312 |
|
|
|
— |
|
|
|
312 |
|
|
|
— |
|
Total |
|
$ |
4,018,377 |
|
|
$ |
2,039,492 |
|
|
$ |
12,144,907 |
|
|
$ |
7,452,954 |
|
NOTE 18 — RELATED PARTY TRANSACTIONS (cont.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30, |
|
|
For the Nine Months
Ended September 30, |
|
Selling, general and administrative expenses |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Medical Corporation Shobikai |
|
$ |
123,331 |
|
|
$ |
— |
|
|
$ |
478,261 |
|
|
$ |
— |
|
Medical Corporation Kowakai |
|
|
1,939 |
|
|
|
— |
|
|
|
5,636 |
|
|
|
— |
|
Medical Corporation Nasukai |
|
|
2,098 |
|
|
|
— |
|
|
|
17,276 |
|
|
|
— |
|
Medical Corporation Aikeikai |
|
|
19,196 |
|
|
|
— |
|
|
|
47,414 |
|
|
|
— |
|
Medical Corporation Jukeikai |
|
|
— |
|
|
|
— |
|
|
|
791 |
|
|
|
— |
|
Medical Corporation Association Junikai |
|
|
— |
|
|
|
— |
|
|
|
337 |
|
|
|
— |
|
Medical Corporation Association Furinkai |
|
|
— |
|
|
|
— |
|
|
|
429 |
|
|
|
— |
|
SBC Inc. |
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
General Incorporated Association SBC |
|
|
6,333 |
|
|
|
— |
|
|
|
18,513 |
|
|
|
— |
|
Co-medical Co., Ltd. |
|
|
1,166 |
|
|
|
— |
|
|
|
1,166 |
|
|
|
— |
|
Total |
|
$ |
154,063 |
|
|
$ |
— |
|
|
$ |
569,830 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30, |
|
|
For the Nine Months
Ended September 30, |
|
Other income |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Skynet Academy Co., Ltd. |
|
$ |
3,069 |
|
|
$ |
— |
|
|
$ |
3,069 |
|
|
$ |
— |
|
Total |
|
$ |
3,069 |
|
|
$ |
— |
|
|
$ |
3,069 |
|
|
$ |
— |
|
As of September 30, 2025 and December 31, 2024, the balances with related parties are as follows:
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
September 30,
2025 |
|
|
December 31,
2024 |
|
Medical Corporation Shobikai |
|
$ |
15,386,034 |
|
|
$ |
5,091,430 |
|
Medical Corporation Nasukai |
|
|
15,923,131 |
|
|
|
8,552,722 |
|
Medical Corporation Kowakai |
|
|
15,876,461 |
|
|
|
7,742,251 |
|
Medical Corporation Aikeikai |
|
|
6,032,102 |
|
|
|
3,071,378 |
|
Medical Corporation Jukeikai |
|
|
1,727,954 |
|
|
|
993,944 |
|
Medical Corporation Association Furinkai |
|
|
1,404,431 |
|
|
|
1,263,602 |
|
Medical Corporation Ritz Cosmetic Surgery |
|
|
1,534,151 |
|
|
|
817,283 |
|
Medical Corporation Association Junikai |
|
|
578,993 |
|
|
|
283,298 |
|
SBC Tokyo Medical University |
|
|
80,379 |
|
|
|
536 |
|
AI Med Inc. |
|
|
35 |
|
|
|
33 |
|
SBC Inc. |
|
|
442 |
|
|
|
137 |
|
Public Interest Foundation SBC Medical Promotion Foundation |
|
|
64 |
|
|
|
36 |
|
SBC Shonan Osteopathic Clinic Inc. |
|
|
— |
|
|
|
4 |
|
SBC Irvine MC |
|
|
— |
|
|
|
693,850 |
|
Kijimadairakanko Inc. |
|
|
— |
|
|
|
336,176 |
|
Medical Corporation Misakikai |
|
|
35,525 |
|
|
|
— |
|
General Incorporated Association Miotokai |
|
|
5,571 |
|
|
|
— |
|
Total |
|
$ |
58,585,273 |
|
|
$ |
28,846,680 |
|
NOTE 18 — RELATED PARTY TRANSACTIONS (cont.)
|
|
|
|
|
|
|
|
|
Finance lease receivables |
|
September 30,
2025 |
|
|
December 31,
2024 |
|
Medical Corporation Shobikai |
|
$ |
4,626,376 |
|
|
$ |
1,877,291 |
|
Medical Corporation Kowakai |
|
|
4,601,042 |
|
|
|
2,490,705 |
|
Medical Corporation Nasukai |
|
|
7,303,110 |
|
|
|
3,872,683 |
|
Medical Corporation Aikeikai |
|
|
1,795,887 |
|
|
|
1,047,821 |
|
Medical Corporation Ritz Cosmetic Surgery |
|
|
2,009,829 |
|
|
|
2,479,771 |
|
Medical Corporation Jukeikai |
|
|
699,403 |
|
|
|
500,244 |
|
Medical Corporation Association Furinkai |
|
|
1,814,218 |
|
|
|
1,891,412 |
|
Medical Corporation Association Junikai |
|
|
1,595,407 |
|
|
|
197,452 |
|
SBC Shonan Osteopathic Clinic Inc. |
|
|
22,344 |
|
|
|
32,788 |
|
Total |
|
|
24,467,616 |
|
|
|
14,390,167 |
|
Less: current portion |
|
|
(9,757,901 |
) |
|
|
(5,992,585 |
) |
Non-current portion |
|
$ |
14,709,715 |
|
|
$ |
8,397,582 |
|
|
|
|
|
|
|
|
|
|
Due from related party, net |
|
September 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 |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Long-term investments in MCs |
|
September 30,
2025 |
|
|
December 31,
2024 |
|
Medical Corporation Shobikai |
|
$ |
6,753 |
|
|
$ |
6,378 |
|
Medical Corporation Kowakai |
|
|
6,753 |
|
|
|
6,378 |
|
Medical Corporation Nasukai |
|
|
6,753 |
|
|
|
6,378 |
|
Medical Corporation Aikeikai |
|
|
6,753 |
|
|
|
6,378 |
|
Medical Corporation Jukeikai |
|
|
7,263,511 |
|
|
|
6,859,913 |
|
Medical Corporation Ritz Cosmetic Surgery |
|
|
11,578,867 |
|
|
|
10,935,485 |
|
Total |
|
$ |
18,869,390 |
|
|
$ |
17,820,910 |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
September 30,
2025 |
|
|
December 31,
2024 |
|
Japan Medical & Beauty Inc. |
|
$ |
2,083,510 |
|
|
$ |
659,044 |
|
Medical Corporation Shobikai |
|
|
175,064 |
|
|
|
— |
|
Medical Corporation Nasukai |
|
|
101,259 |
|
|
|
— |
|
Medical Corporation Kowakai |
|
|
79,905 |
|
|
|
— |
|
Medical Corporation Aikeikai |
|
|
47,243 |
|
|
|
— |
|
Medical Corporation Jukeikai |
|
|
6,726 |
|
|
|
— |
|
Medical Corporation Association Furinkai |
|
|
16,609 |
|
|
|
— |
|
Medical Corporation Ritz Cosmetic Surgery |
|
|
11,060 |
|
|
|
— |
|
General Incorporated Association SBC |
|
|
567 |
|
|
|
— |
|
Waqoo, Inc. |
|
|
320,792 |
|
|
|
— |
|
Co-medical Co., Ltd. |
|
|
142 |
|
|
|
— |
|
Total |
|
$ |
2,842,877 |
|
|
$ |
659,044 |
|
NOTE 18 — RELATED PARTY TRANSACTIONS (cont.)
|
|
|
|
|
|
|
|
|
Advances from customers |
|
September 30,
2025 |
|
|
December 31,
2024 |
|
Medical Corporation Shobikai |
|
$ |
3,895,895 |
|
|
$ |
5,076,300 |
|
Medical Corporation Kowakai |
|
|
383,401 |
|
|
|
1,801,034 |
|
Medical Corporation Nasukai |
|
|
475,795 |
|
|
|
1,745,069 |
|
Medical Corporation Aikeikai |
|
|
24,812 |
|
|
|
379,931 |
|
Medical Corporation Jukeikai |
|
|
7,081 |
|
|
|
140,170 |
|
Medical Corporation Ritz Cosmetic Surgery |
|
|
5,845 |
|
|
|
45,701 |
|
SBC Shonan Osteopathic Clinic Inc. |
|
|
16,627 |
|
|
|
16,395 |
|
Medical Corporation Association Furinkai |
|
|
787,891 |
|
|
|
940,007 |
|
Medical Corporation Association Junikai |
|
|
1,360,130 |
|
|
|
1,594,926 |
|
Total |
|
$ |
6,957,477 |
|
|
$ |
11,739,533 |
|
|
|
|
|
|
|
|
|
|
Notes and other payables |
|
September 30,
2025 |
|
|
December 31,
2024 |
|
Medical Corporation Shobikai |
|
$ |
263,566 |
|
|
$ |
4,653 |
|
Medical Corporation Kowakai |
|
|
178,975 |
|
|
|
14,672 |
|
Medical Corporation Nasukai |
|
|
170,790 |
|
|
|
8,827 |
|
Medical Corporation Aikeikai |
|
|
33,700 |
|
|
|
2,236 |
|
Medical Corporation Jukeikai |
|
|
16,196 |
|
|
|
— |
|
Medical Corporation Ritz Cosmetic Surgery |
|
|
20,416 |
|
|
|
1,201 |
|
General Incorporated Association SBC |
|
|
953,727 |
|
|
|
— |
|
Total |
|
|
1,637,370 |
|
|
|
31,589 |
|
Less: current portion |
|
|
(1,637,370 |
) |
|
|
(26,255 |
) |
Non-current portion |
|
$ |
— |
|
|
$ |
5,334 |
|
|
|
|
|
|
|
|
|
|
Due to related party |
|
September 30,
2025 |
|
|
December 31,
2024 |
|
Yoshiyuki Aikawa |
|
$ |
2,791,808 |
|
|
$ |
2,823,590 |
|
Total |
|
$ |
2,791,808 |
|
|
$ |
2,823,590 |
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended September 30, |
|
Allowance for credit loss movement |
|
2025 |
|
|
2024 |
|
Beginning balance |
|
$ |
2,836,013 |
|
|
$ |
3,238,209 |
|
Provision for credit loss |
|
|
— |
|
|
|
617,804 |
|
Reversal of credit loss |
|
|
(70,000 |
) |
|
|
(745,000 |
) |
Ending balance |
|
$ |
2,766,013 |
|
|
$ |
3,111,013 |
|
|