| 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 |
|
|