Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions (Tables)

v3.19.2
Related Party Transactions (Tables)
6 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
Schedule of name of related parties and relationships
Related Party   Relationship
Dmedia Holding LP ("Dmedia")   Major stockholder
Bummy Wu   Shareholder
Jeffrey Wun   Shareholder and CEO of Aerkomm and Aircom
Yih Lieh (Giretsu) Shih   President of Aircom Japan
Chien Ming Tseng   President of Aircom Taiwan
Hao Wei Peng   Employee of Aircom Taiwan and founding owner of Aircom Taiwan prior to 12/19/2017
Louis Giordimaina   COO - Aviation of Aircom
Wealth Wide Int'l Ltd. ("WWI")   Bummy Wu, a shareholder, is the Chairman
WISD Intellectual Property Agency, Ltd. ("WISD")   Patrick Li, Director of Aircom, is the Chairman; Chih-Ming (Albert) Hsu, Director of the Company, is a Director  
Schedule of significant related party transactions

    June 30,
2019
    December 31,
2018
 
    (Unaudited)        
Temporary deposit to Bummy Wu1   $ -     $ 100,067  
Loan from Dmedia2   $ 194,600     $ -  
Operating lease liability to WWI3   $ 44,494     $ -  
Other payable to:                
Yih Lieh (Giretsu) Shih4   $ 204,006     $ 15,497  
Jeffrey Wun4     74,044       46,236  
Chien Ming Tseng4     66,108       -  
Hao Wei Peng4     47,262       -  
Louis Giordimaina4     40,803       6,071  
WWI3     39,318       39,224  
Others4     59,666       66,826  
Total   $ 531,207     $ 173,854  

 

  1. In November 2018, Aircom HK’s bank account was temporarily frozen by its local bank in Hong Kong (the “HK bank”) due to Aircom HK’s failure to timely submit to the HK bank corporate documentation relating to the corporate organization and goodstanding of Aircom HK’s parent company, Aircom, and Aircom’s parent company, Aerkomm. To avoid a potential cash flow issue resulting from this temporary account freeze, Aircom HK withdrew $100,067 in cash from the HK bank and temporarily deposited it in an existing related party’s bank account at a different bank for safe keeping. The Aircom HK’s bank account with the HK bank was reactivated by the HK bank subsequently and the cash that was transferred to the related party’s account was redeposited into Aircom HK’s bank account at the HK bank in February 2019.

 

  2.

Represents short-term loan from Dmedia.  This short-term loan has an expiration date of January 30, 2020 and an annual interest rate of 3%. The Company repaid the loan in full on July 1. 2019.

 

  3. Represents rent for a warehouse in Hong Kong to store the Company’s hardware, which ended in May 2018, and rent for another Hong Kong office starting June 28, 2018.

 

  4. Represents payable to employees as a result of regular operating activities.
Schedule of expenses paid by related party

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2019     2018     2019     2018  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
Consulting expense paid to Louis Giordimaina   $ -     $ 87,275     $ -     $ 222,246  
Legal expense paid to WISD     -       1,392       -       1,392  
Amortization expense of right-of-use asset charged by WWI     11,440       -       22,872       -  
Rental expense charged by WWI     -       1,334       -       2,684  
Interest expense charged by Dmedia     1,446       1,915       1,744       3,116