Quarterly report pursuant to Section 13 or 15(d)

Significant Related Party Transactions (Tables)

v3.20.2
Significant Related Party Transactions (Tables)
6 Months Ended
Jun. 30, 2020
Related Party Transactions [Abstract]  
Schedule of name of related parties and relationships

Related Party   Relationship
Dmedia Holding LP (“Dmedia”)   Major shareholder
Well Thrive Limited (“WTL”)  

Major shareholder; Sheng-Chun Chang is the President

Yuan Jiu Inc. (“Yuan Jiu”)  

Shareholder; Albert Hsu, a Director of Aerkomm, is the Chairman

AA Twin Associates Ltd. (“AATWIN”)   Georges Caldironi, COO of Aerkomm, is sole owner

Schedule of significant related party transactions

   

June 30,

2020

    December 31,
2019
 
    (Unaudited)        
Inventory prepayment to:            
Yuan Jiu1   $ 180,710     $ -  
                 
Short-term loan from WTL2   $ 272,211     $ -  
Other payable to:                
AATWIN3   $ 90,430     $ -  
Others4     63,299       30,971  
Total   $ 153,729     $ 30,971  

 

1. Represents inventory prepayment paid to Yuan Jiu. On May 11, 2020, the Company entered into a product purchase agreement with Yuan Jiu to purchase 100 sets of the AirCinema Cube to be installed on aircraft of commercial airline customers.  The total purchase amount under this agreement was $1,807,100 and the Company paid 10% of the total amount as an initial deposit.  On July 15, 2020, the Company signed a second product purchase agreement with Yuan Jiu for an additional 100 sets of the AirCinema Cube for the same purchase amount and paid a 10% initial deposit ($180,710) on this agreement as well.

 

2. Represents short-term loan from WTL due to operational 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 August 17, 2020.

 

3. Represents payable to AATWIN 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.
Schedule of expenses paid by related party

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2020     2019     2020     2019  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
Consulting expense charged by AATWIN   $ 50,110     $ -     $ 100,221     $ -  
Interest expense charged by WTL     9,067       -       9,067       -  
Interest expense charged by Dmedia     -       1,446               1,744