SBC SBC Medical Group Holdings Incorporated

SBC Medical Group Holdings Incorporated (NASDAQ: SBC, “SBC Medical” or the “Company”), a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced its financial results for -the three months ended December 31, 2024 and full year 2024.

Fourth Quarter 2024 Highlights

• Total revenues were $44 million, representing a 29% year-over-year decrease.
• Gross profit was $34 million, representing a 22% year-over-year decrease.
• Income from operations was $5 million, representing an 80% year-over-year decrease.
• EBITDA1, which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $21 million, representing a 22% year-over-year decrease. EBITDA margin1 was 47% for the fourth quarter of 2024, compared to 43% for the fourth quarter of 2023.
• Net income attributable to SBC Medical Group was $7 million, representing a 54% year-over-year decrease.
• Earnings per share, which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.06 for the three months ended December 31, 2024, representing a year-over-year decrease of 58%.

Full Year 2024 Highlights

• Total revenues were $205 million, representing a 6% year-over-year increase.
• Gross Profit was $156 million, representing a 14% year-over-year increase.
• Income from operations was $70 million, representing a 1% year-over-year decrease.
• EBITDA1, which is calculated by adding depreciation and amortization expense and impairment loss to income from operations was $89 million, representing an 8% year-over-year increase. EBITDA margin1 was 43% for the year of 2024, compared to 43% for the year of 2023.
• Net Income attributable to SBC Medical Group was $47 million, representing an 18% year-over-year increase.
• Return on equity, which is defined as net income attributable to the Company divided by the average of shareholder’s equity as of December 31, 2023, and December 31, 2024, was 28% representing a year-over-year decrease of 4 percentage points.
• Earnings per share, which is defined as net income attributable to the Company divided by the weighted average number of outstanding shares, was $0.48 for the twelve months ended December 31, 2024, representing a year-over-year increase of 14%.
• Number of partner clinics was 251 as of December 31, 2024, representing an increase of 43 clinics from December 31, 2023.
• Number of customers2 in the last twelve months ended December 31, 2024, was 6.03 million, representing a 15% year-over-year increase.
• Repeat rate for customers3 who visited franchisee’s clinics twice or more was 71 %.

Yoshiyuki Aikawa, Chairman and Chief Executive Officer of SBC Medical, said, “The year of 2024 was a momentous year for us, showcasing our solid performance and sustained growth, culminating in our successful Nasdaq listing. We delivered strong 2024 results with top line growing by 6% while bottom line surged 18% year over year. More encouragingly, supported by our extensive network of 251 clinics, we served 6.0 million loyal customers over the last twelve months, with a repeat rate exceeding 70%. As we continue to see increasing global demand for aesthetic medical services, we remain committed to developing a strong franchising structure and network, and expanding our business both domestically and internationally. Looking ahead, we remain dedicated to not only maintaining, but expanding, our competitive edge while capturing the significant growth opportunities both at home and abroad. With these goals we aim to create long-term value and drive sustainable growth for our shareholders.”

Full Year 2024 Financial Results

Total revenues were $205 million, an increase of 6% year-over-year despite the negative impact of the discontinuation of the staffing business, driven by the expansion of franchise clinics.

EBITDA was $89 million, an increased 8% year-over-year due to one-time factors such as stock-based compensation expenses (USD 13.0 million). However, excluding these one-time factors and foreign exchange impacts (USD 6.9 million), EBITDA increased 32% year-over-year.

Non-operating income and expenses totaled USD 3 million, primarily driven by the gain on the sale of Cellpro Japan, partially offset by an impairment loss on certain equity holdings. Consequently, net income attributable to SBC increased 18% year-over-year, achieving both revenue and profit growth compared to the previous fiscal year.

Business Highlights

In 2024, Japan’s Ministry of Health, Labor and Welfare, the regulator of the medical industry, raised concerns regarding the expansion of aesthetic medical business, and intensified competition, which led to the shake out of some hair removal clinics. Despite such a challenging competitive environment, SBC Medical maintained its market leadership by driving market expansion through an appropriate pricing strategy for franchise clinics. As a result, the number of customers reached 6 million, a 15% year-over-year increase, while the number of unique customers4 grew 11% year-over-year to 1.9 million.

On the overseas business, SBC Medical acquired Aesthetic Healthcare Holdings Pte. and its subsidiaries (“AHH”) in Singapore, securing a strategic footprint to function as the Company’s business hub in Asia. Additionally, SBC Medical launched the “SBC Wellness” employee benefit program and entered into a strategic partnership with B4A, a SaaS company for aesthetic clinics in Japan, executing key initiatives to expand its business.

Outlook for FY2025

In FY2025, while the aesthetic dermatology market is expected to continue expanding, competition is also expected to intensify. To solidify its dominant market position, SBC Medical will implement strategic price revision and other initiatives.

Furthermore, to support the long-term expansion of our franchise clinic network, the Company will revise its franchise fee structure starting in April 2025. This revision aims to alleviate the initial financial burden on franchisees while introducing a tiered fee system aligned with clinic scale and the consulting services provided by SBC Medical Group Co., Ltd.

If the revised fee structure had been applied starting in April 2024, it is estimated that total revenues for fiscal year 2024 would have decreased by approximately 10%. However, the Company expects the impact on total revenues and income from operations for fiscal year 2025 to be offset by the absence of one-time losses that were recorded in fiscal year 2024, which were impairment loss on intangible assets and stock-based compensation. Nevertheless, the ultimate financial impact remains uncertain and will depend on a number of factors, many of which are beyond the Company’s control.

Conference Call

The Company will hold a conference call on Friday, March 28, 2025, at 8:00 am Eastern Time (or Friday, March 28, 2025, at 9:00 pm Japan Time) to discuss the financial results and take questions live.

Please register in advance of the conference using the link provided below. It will automatically direct you to the registration page of “SBC 2024 Full Year Financial Results Briefing”. Please follow the steps to enter your registration details, then click “Submit”. Upon registration, you will be able to access the dedicated Conference Call viewing site. In addition to viewing the conference call, this site provides access to information about the speakers as well as past investor relations materials.

Pre-registration is accessible online at https://edge.media-server.com/mmc/p/demkfxps/.

Starting 10 minutes before the conference call begins, you will be able to view the full-year earnings presentation materials on the site. The materials will also be available for download.

A replay of the conference call will be accessible until March 28, 2026.

Additionally, a live and archived webcast of this conference call will be available at https://ir.sbc-holdings.com/ .

About SBC Medical

SBC Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment centers. The Company is primarily focused on providing comprehensive management services to franchise clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchise clinic customers, assistance with franchise employee housing rentals and facility rentals, construction and design of franchise clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic products to franchise clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies, trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchise clinic’s customer rewards program (customer loyalty point program), and payment tools for the franchise clinics.

For more information, visit https://sbc-holdings.com/

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as EBITDA, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Forward Looking Statements

This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company’s beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s financial performance; growth in revenue and earnings; business prospects and opportunities; and capital deployment plans and liquidity. In some cases, forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management’s current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading “Risk Factors” and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.

1 EBITDA and EBITDA Margin are non-GAAP financial measures. For more information on non-GAAP financial measure, please see the section of “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.” 2 The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics 3 The number of customers takes into account customers of SBC brand clinics, Rize Clinic and Gorilla Clinic, but does not take account customers of AHH Clinics, but excluding free counseling 4 The number of unique customers account for each individual customer only once, regardless of how many times they have used our clinics or franchise clinics

SBC MEDICAL GROUP HOLDINGS INCORPORATED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

125,044,092

 

 

$

103,022,932

 

Accounts receivable

 

 

1,413,433

 

 

 

1,437,077

 

Accounts receivable – related parties

 

 

28,846,680

 

 

 

33,676,672

 

Inventories

 

 

1,494,891

 

 

 

3,090,923

 

Finance lease receivables, current – related parties

 

 

5,992,585

 

 

 

6,143,564

 

Customer loans receivable, current

 

 

10,382,537

 

 

 

8,484,753

 

Prepaid expenses and other current assets

 

 

11,276,802

 

 

 

10,050,005

 

Total current assets

 

 

184,451,020

 

 

 

165,905,926

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

8,771,902

 

 

 

13,582,017

 

Intangible assets, net

 

 

1,590,052

 

 

 

19,739,276

 

Long-term investments, net

 

 

3,049,972

 

 

 

849,434

 

Goodwill, net

 

 

4,613,784

 

 

 

3,590,791

 

Finance lease receivables, non-current – related parties

 

 

8,397,582

 

 

 

3,420,489

 

Operating lease right-of-use assets

 

 

5,267,056

 

 

 

5,919,937

 

Deferred tax assets

 

 

9,798,071

 

 

 

—

 

Customer loans receivable, non-current

 

 

5,023,551

 

 

 

6,444,025

 

Long-term prepayments

 

 

1,745,801

 

 

 

4,099,763

 

Long-term investments in MCs – related parties

 

 

17,820,910

 

 

 

19,811,555

 

Other assets

 

 

15,553,453

 

 

 

15,442,058

 

Total non-current assets

 

 

81,632,134

 

 

 

92,899,345

 

Total assets

 

$

266,083,154

 

 

$

258,805,271

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

13,875,179

 

 

$

26,531,944

 

Accounts payable – related party

 

 

659,044

 

 

 

—

 

Current portion of long-term loans

 

 

96,824

 

 

 

156,217

 

Notes payable, current – related parties

 

 

26,255

 

 

 

3,369,203

 

Advances from customers

 

 

820,898

 

 

 

2,074,457

 

Advances from customers – related parties

 

 

11,739,533

 

 

 

23,058,175

 

Income tax payable

 

 

18,705,851

 

 

 

8,782,930

 

Operating lease liabilities, current

 

 

4,341,522

 

 

 

3,885,812

 

Accrued liabilities and other current liabilities

 

 

8,103,194

 

 

 

21,009,009

 

Due to related party

 

 

2,823,590

 

 

 

3,583,523

 

Total current liabilities

 

 

61,191,890

 

 

 

92,451,270

 

 

 

As of December 31,

 

 

 

2024

 

 

2023

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Long-term loans

 

 

6,502,682

 

 

 

1,062,722

 

Notes payable, non-current – related parties

 

 

5,334

 

 

 

11,948,219

 

Deferred tax liabilities

 

 

926,023

 

 

 

6,013,565

 

Operating lease liabilities, non-current

 

 

1,241,526

 

 

 

2,444,316

 

Other liabilities

 

 

1,193,541

 

 

 

1,074,930

 

Total non-current liabilities

 

 

9,869,106

 

 

 

22,543,752

 

Total liabilities

 

 

71,060,996

 

 

 

114,995,022

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock ($0.0001 par value, 20,000,000 shares authorized; no shares issued and outstanding as of December 31, 2024 and 2023)**

 

 

—

 

 

 

—

 

Common stock ($0.0001 par value, 400,000,000 shares authorized, 103,020,816 and 94,192,433 shares issued, 102,750,816 and 94,192,433 shares outstanding as of December 31, 2024 and 2023, respectively)**

 

 

10,302

 

 

 

9,419

 

Additional paid-in capital**

 

 

62,513,923

 

 

 

36,879,281

 

Treasury stock (at cost, 270,000 and nil shares of common stock as of December 31, 2024 and 2023, respectively)

 

 

(2,700,000

)

 

 

—

 

Retained earnings

 

 

189,463,007

 

 

 

142,848,732

 

Accumulated other comprehensive loss

 

 

(54,178,075

)

 

 

(37,578,255

)

Total SBC Medical Group Holdings Incorporated stockholders’ equity

 

 

195,109,157

 

 

 

142,159,177

 

Non-controlling interests

 

 

(86,999

)

 

 

1,651,072

 

Total stockholders’ equity

 

 

195,022,158

 

 

 

143,810,249

 

Total liabilities and stockholders’ equity

 

$

266,083,154

 

 

$

258,805,271

 

 

** Retrospectively restated for effect of reverse recapitalization on September 17, 2024.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

SBC MEDICAL GROUP HOLDINGS INCORPORATED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

For the Years Ended

December 31,

 

 

 

2024

 

 

2023

 

Revenues, net – related parties

 

$

195,173,889

 

 

$

182,738,049

 

Revenues, net

 

 

10,241,653

 

 

 

10,804,374

 

Total revenues, net

 

 

205,415,542

 

 

 

193,542,423

 

Cost of revenues (including cost of revenues from a related party of $8,472,202 and $2,842,588 for the years ended December 31, 2024 and 2023, respectively)

 

 

49,365,035

 

 

 

56,238,385

 

Gross profit

 

 

156,050,507

 

 

 

137,304,038

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

57,665,140

 

 

 

66,234,942

 

Stock-based compensation

 

 

13,022,692

 

 

 

—

 

Impairment loss on intangible asset

 

 

15,058,965

 

 

 

—

 

Misappropriation loss

 

 

—

 

 

 

409,030

 

Total operating expenses

 

 

85,746,797

 

 

 

66,643,972

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

70,303,710

 

 

 

70,660,066

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

Interest income

 

 

19,943

 

 

 

86,748

 

Interest expense

 

 

(28,300

)

 

 

(45,292

)

Other income (including other income from related parties of $2,673,077 and nil for the years ended December 31, 2024 and 2023, respectively)

 

 

4,810,008

 

 

 

3,623,332

 

Other expenses

 

 

(5,463,153

)

 

 

(745,519

)

Gain on disposal of subsidiary

 

 

3,813,609

 

 

 

—

 

Total other income

 

 

3,152,107

 

 

 

2,919,269

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

73,455,817

 

 

 

73,579,335

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

26,765,925

 

 

 

35,018,729

 

 

 

 

 

 

 

 

 

 

Net income

 

 

46,689,892

 

 

 

38,560,606

 

Less: net income (loss) attributable to non-controlling interests

 

 

75,617

 

 

 

(809,430

)

Net income attributable to SBC Medical Group Holdings Incorporated

 

$

46,614,275

 

 

$

39,370,036

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

$

(16,557,607

)

 

$

(12,855,686

)

Reclassification of unrealized gain on available-for-sale debt security to net income when realized, net of tax effect of nil and $3,869 for the years ended December 31, 2024 and 2023, respectively

 

 

—

 

 

 

(8,760

)

Total comprehensive income

 

 

30,132,285

 

 

 

25,696,160

 

Less: comprehensive income (loss) attributable to non-controlling interests

 

 

117,830

 

 

 

(948,896

)

Comprehensive income attributable to SBC Medical Group Holdings Incorporated

 

$

30,014,455

 

 

$

26,645,056

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to SBC Medical Group Holdings Incorporated**

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.48

 

 

$

0.42

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding**

 

 

 

 

 

 

 

 

Basic and diluted

 

 

96,561,041

 

 

 

94,192,433

 

 

** Retrospectively restated for effect of reverse recapitalization on September 17, 2024.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

SBC MEDICAL GROUP HOLDINGS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

For the Years Ended

December 31,

 

 

 

2024

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

$

46,689,892

 

 

$

38,560,606

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

3,799,377

 

 

 

12,246,942

 

Non-cash lease expense

 

 

3,870,198

 

 

 

3,297,824

 

Provision for (reversal of) credit losses

 

 

(402,196

)

 

 

370,754

 

Stock-based compensation

 

 

13,022,692

 

 

 

—

 

Impairment loss on property and equipment

 

 

—

 

 

 

204,026

 

Impairment loss on intangible asset

 

 

15,058,965

 

 

 

—

 

Impairment loss on long-term investment

 

 

529,596

 

 

 

—

 

Realized gain on short-term investments

 

 

—

 

 

 

(223,164

)

Fair value change of long-term investments

 

 

2,617,435

 

 

 

—

 

Gain on disposal of subsidiary

 

 

(3,813,609

)

 

 

—

 

Loss (gain) on disposal of property and equipment and intangible assets

 

 

511,947

 

 

 

(249,532

)

Deferred income taxes

 

 

(14,417,087

)

 

 

4,113,395

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(733,219

)

 

 

(596,069

)

Accounts receivable – related parties

 

 

1,350,413

 

 

 

(22,402,301

)

Inventories

 

 

1,124,805

 

 

 

(1,825,942

)

Finance lease receivables – related parties

 

 

(5,991,486

)

 

 

16,575,319

 

Customer loans receivable

 

 

18,477,327

 

 

 

413,867

 

Prepaid expenses and other current assets

 

 

(2,268,209

)

 

 

4,102,808

 

Long-term prepayments

 

 

1,910,274

 

 

 

(3,539,280

)

Other assets

 

 

(1,692,642

)

 

 

(1,328,682

)

Accounts payable

 

 

(9,588,067

)

 

 

12,201,755

 

Accounts payable – related party

 

 

682,320

 

 

 

—

 

Notes payable – related parties

 

 

(34,756,754

)

 

 

(23,816

)

Advances from customers

 

 

(1,476,240

)

 

 

461,043

 

Advances from customers – related parties

 

 

(9,144,031

)

 

 

(4,264,184

)

Income tax payable

 

 

11,228,429

 

 

 

13,359,434

 

Operating lease liabilities

 

 

(3,950,587

)

 

 

(3,158,619

)

Accrued liabilities and other current liabilities

 

 

(12,096,825

)

 

 

4,452,022

 

Accrued retirement compensation expense – related party

 

 

—

 

 

 

(22,082,643

)

Other liabilities

 

 

40,215

 

 

 

4,759

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

20,582,933

 

 

 

50,670,322

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(2,564,643

)

 

 

(8,543,351

)

Purchase of intangible assets

 

 

—

 

 

 

(1,683,030

)

Purchase of convertible note

 

 

(1,700,000

)

 

 

(1,000,000

)

Prepayments for property and equipment

 

 

(843,740

)

 

 

(981,567

)

Advances to related parties

 

 

(622,804

)

 

 

(2,283,020

)

Payments made on behalf of a related party

 

 

(5,572,564

)

 

 

—

 

Purchase of short-term investments

 

 

—

 

 

 

(2,106,720

)

Purchase of long-term investments

 

 

(331,496

)

 

 

—

 

Long-term investments in MCs – related parties

 

 

—

 

 

 

(26,780

)

Cash received (paid) for acquisition of subsidiaries, net of cash acquired

 

 

(4,236,009

)

 

 

722,551

 

Long-term loans to others

 

 

(172,411

)

 

 

(926,020

)

Repayments from related parties

 

 

6,597,564

 

 

 

1,912,266

 

Repayments from others

 

 

176,109

 

 

 

581,274

 

Proceeds from sales of short-term investments

 

 

—

 

 

 

4,127,261

 

Proceeds from surrender of life insurance policies

 

 

—

 

 

 

3,954,760

 

Disposal of subsidiaries, net of cash disposed of

 

 

(832,416

)

 

 

—

 

Proceeds from disposal of property and equipment

 

 

—

 

 

 

8,046,007

 

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

 

(10,102,410

)

 

 

1,793,631

 

 

 

As of December 31,

 

 

 

2024

 

 

2023

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Borrowings from a long-term loan

 

 

6,603,253

 

 

 

—

 

Borrowings from related parties

 

 

5,481,787

 

 

 

12,310,106

 

Proceeds from reverse recapitalization, net of transaction costs

 

 

11,707,417

 

 

 

—

 

Proceeds from issuance of common stock

 

 

—

 

 

 

10

 

Proceeds from exercise of stock warrants

 

 

31,374

 

 

 

—

 

Repayments of long-term loans

 

 

(119,017

)

 

 

(8,730,942

)

Repayments to related parties

 

 

(739,414

)

 

 

(7,707,007

)

Deemed contribution in connection with disposal of property and equipment

 

 

—

 

 

 

9,620,453

 

Deemed contribution in connection with reorganization

 

 

—

 

 

 

642,748

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

 

22,965,400

 

 

 

6,135,368

 

 

 

 

 

 

 

 

 

 

Effect of changes in foreign currency exchange rate

 

 

(11,424,763

)

 

 

(7,314,383

)

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

22,021,160

 

 

 

51,284,938

 

CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE YEAR

 

 

103,022,932

 

 

 

51,737,994

 

CASH AND CASH EQUIVALENTS AS OF THE END OF THE YEAR

 

$

125,044,092

 

 

$

103,022,932

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 

 

 

 

 

 

 

 

Cash paid for interest expense

 

$

28,300

 

 

$

45,292

 

Net cash paid for income taxes

 

$

30,239,002

 

 

$

17,842,407

 

 

 

 

 

 

 

 

 

 

NON-CASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Property and equipment transferred from long-term prepayments

 

$

597,602

 

 

$

7,681,830

 

An intangible asset transferred from long-term prepayments

 

$

—

 

 

$

17,666,115

 

Deemed contribution in connection with disposal of subsidiaries

 

$

1,473,571

 

 

$

—

 

Settlement of loan payable to a related party in connection with disposal of property and equipment

 

$

—

 

 

$

4,163,604

 

Operating lease right-of-use assets obtained in exchange for operating lease liabilities

 

$

—

 

 

$

2,305,199

 

Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications

 

$

2,908,554

 

 

$

2,110,079

 

Issuance of common stock from conversion of convertible note

 

$

2,700,000

 

 

$

—

 

Settlement of loan payable to a related party in connection with issuance of common stock

 

$

—

 

 

$

795

 

Non-cash purchase consideration for an asset acquisition

 

$

—

 

 

$

705,528

 

Issuance of promissory notes to related parties in connection with loan services provided

 

$

20,524,499

 

 

$

15,396,709

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

SBC MEDICAL GROUP HOLDINGS INCORPORATED Reconciliations of GAAP and Non-GAAP Results

 

 

For the Three Months Ended December 31,

 

 

For the Years ended December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Income from operations

 

$

4,717,662

 

 

$

23,989,307

 

 

$

70,303,710

 

 

 

70,660,066

 

Depreciation and amortization expense

 

 

931,596

 

 

 

2,558,302

 

 

 

3,799,377

 

 

 

12,246,942

 

Impairment loss

 

 

15,058,965

 

 

 

-

 

 

 

15,058,965

 

 

 

-

 

EBITDA

 

 

20,708,223

 

 

 

26,547,609

 

 

 

89,162,052

 

 

 

82,907,008

 

EBITDA margin

 

 

47

%

 

 

43

%

 

 

43

%

 

 

43

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250328660955/en/

In Asia: SBC Medical Group Holdings Incorporated Hikaru Fukui / Head of Investor Relations E-mail: ir@sbc-holdings.com

In the US: ICR LLC Bill Zima / Managing Partner Email: bill.zima@icrinc.com