| 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.
|