Short answer
SBC Medical Group Holdings Inc (SBC) filed its fiscal 2024 10-K annual report with the SEC on Mar 28, 2025. It reported revenue of $205M (+6.1% year over year) and net income of $47M.
- Top risk flagged: Regulatory risk from Japanese Medical Care Act limiting voting control over Medical Corporations despite equity interests
FY2024 key financial metrics · XBRL
- Revenue
- $205M
- +6.1% YoY
- Net income
- $47M
- +13619.5% YoY
- Operating margin
- 34.2%
- +35.1 pp YoY
- Gross margin
- 76.0%
- +5.0 pp YoY
- EPS (diluted)
- $0.48
- +14.3% YoY
- ROE
- 23.9%
- +29.6 pp YoY
- Operating cash flow
- $21M
- +1065.0% YoY
Source: XBRL data from the SBC Medical Group Holdings Inc (SBC) FY2024 10-K on SEC EDGAR. USD.
SBC Medical Group Holdings Inc FY2024 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Medical aesthetics franchising, procurement, management, and rental services focusing on clinic networks in Japan
- New emphasis on franchising revenue model change in 2024: fixed royalty fees per clinic replacing percentage of sales, authorized MCs to use patents/trademarks
- Strategic shift: Discontinued clinic operation staff support services and plan merger of subsidiaries (Shobikai Sub into Lange Sub) to streamline operations
- Quantitative highlight: Franchising revenue up 44.96% to $61.0M; net income increased 21.08% to $46.7M despite JPY depreciation impact of $16.0M on revenues
- Noteworthy fact: Recorded $15.1M impairment loss on intangible asset and $13.0M stock-based compensation expense related to warrants issued in 2022 upon business combination completion
Management Discussion & Analysis
- Identified material weaknesses in internal controls including control environment, activities, risk assessment, communication, monitoring
- Post-business combination internal controls inadequate, requiring significant management resources for remediation through end of 2025
- Added accounting personnel, established related party policy, improved segregation of duties, started external SOX compliance consultants engagement
Risk Factors
- Regulatory risk from Japanese Medical Care Act limiting voting control over Medical Corporations despite equity interests
- Geopolitical exposure in Japan with all 241 treatment centers operated under six related-party Medical Corporations
- Operational risk from reliance on franchisor-franchisee contracts and service contracts with Medical Corporations for clinic management
- Competitive threat from expanding "Shonan Beauty Clinic" brand in Japan, Vietnam, and the US cosmetic medical services market
- Financial risk due to significant drop in operating cash flow from $50.7M in 2023 to $20.6M in 2024 despite revenue growth
Generated from the filing text; verify against the original. How to read a 10-K
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