Quarterly report pursuant to Section 13 or 15(d)

Significant Related Party Transactions

v3.20.2
Significant Related Party Transactions
3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Significant Related Party Transactions

NOTE 13 - Significant Related Party Transactions

 

  A. Name of related parties and relationships with the Company:

 

Related Party   Relationship
Dmedia Holding LP ("Dmedia")   23.45% stockholder
Sheng-Chun Chang   Shareholder; President of WTL
Well Thrive Limited ("WTL")   Shareholder; Sheng-Chun Chang, is the President
AA Twin Associates Ltd. ("AATWIN")   Georges Caldironi, COO of Aerkomm, is sole owner

 

  B. Significant related party transactions:

 

The Company has extensive transactions with its related parties. It is possible that the terms of these transactions are not the same as those which would result from transactions among wholly unrelated parties.

 

  a. As of March 31, 2020 and December 31, 2019:

 

   

March 31,

2020

    December 31,
2019
 
    (Unaudited)        
Other receivable from                
Sheng-Chun Chang1   $ 264,463     $ -  
Other     3,720       920  
    $ 268,183     $ 920  
                 
Short-term loan from WTL2   $ 2,119,669     $ -  
Other payable to:                
AATWIN3   $ 60,907     $ -  
Others4     89,062       30,971  
Total   $ 149,969     $ 30,971  

 

  1. Represents temporary payment to Sheng-Chun Chang, fully received on April 1, 2020.

 

  2. Represents short-term loan from WTL due to operation needs. The original loan amount was approximately $2.64M (NTD 80,000,000). The loan agreement will terminate on December 31, 2021. The Company has repaid $2.53M (NTD 76,000,000) of the outstanding loan amount as of July 6, 2020.

 

  3. Represents payable to AATWN due to consulting agreement on January 1, 2019. The monthly consulting fee is EUR 15,120 (approximately $17,000) and will be expired December 31, 2021.

 

  4. Represents payable to employees as a result of regular operating activities.

 

  b. For the three-month periods ended March 31, 2020 and 2019:

 

    Three Months Ended
March 31,
 
    2020     2019  
    (Unaudited)     (Unaudited)  
Consulting expense charged by AATWIN   $ 50,111     $ -  
Interest expense charged by WTL     3,987       -  
Interest expense charged by Dmedia     -       298  

 

Aircom entered a consulting agreement with AATWIN for the period between January 1, 2019 and December 31, 2021. Pursuant to the terms of this consulting agreement, Aircom pays AATWIN consulting fees of approximately $17,000 per month.

 

Aerkomm Taiwan entered into a short-term loan agreement with WTL to draw down approximately $2.64 million (NTD 80,000,000) from the Loans (see Note 1) for working capital purposes. This short-term loan carries an annual interest rate of 5%. The Company repaid NTD 76,000,000 (approximately $2,500,000) of the outstanding loan amount prior to April 9, 2020.

 

Aerkomm had short-term loans from Dmedia with an annual interest rate of 3% for the period ended December 31, 2019. The Company repaid the short-term loan in full on July 1, 2019.