Jan. 6 at 10:27 PM
$CCLD found this concern on Related Party Transactions on a forum
Leasing from the Chairman: The company pays rent to the Chairman for its NJ headquarters, foreign housing, and offices in Pakistan and Dubai. The company even spent
$729,000 (combined in 2023/24) to upgrade facilities Chairman owns.
Land Purchase via Chairman: The company advanced
$330,000 to the Chairman to buy land in Kashmir because only citizens can buy land there. While repaid, this type of "commingling" of personal and corporate funds often worries investors.
Revenue from the Chairman’s Wife: The company sells its services to the Chairman’s wife’s medical practice. While the amounts are small (
$24K), it creates a circular relationship.
Variable Interest Entity (VIE): The Chairman’s wife started a telehealth company (talkMD) which CareCloud controls and pays taxes for, even though it hasn't started operating.