Quarterly report pursuant to Section 13 or 15(d)

Significant Related Party Transactions (Details) - Schedule of related party transactions

v3.22.4
Significant Related Party Transactions (Details) - Schedule of related party transactions - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Schedule Of Related Party Transactions Abstract        
Purchase from Ejectt [1] $ 1,807,100
Service income from Star Jec [2] 2,855 6,073
Consulting expense charged by AATWIN [3] 53,284 162,353
Interest expense charged by WTL [4] 249 10,155 39,027
Rental expense charged by WWI [5] 11,833 11,954 35,499 35,919
Sales to Ejectt [6] 72,000
Rental income from EESqaure JP [7] 2,149 3,643 7,023 9,206
Other income from Mepa [8] 11,331 17,544
Rental income from Mepa [8] $ 19,200 $ 55,535
[1] Represents inventory prepayment paid to Ejectt. On May 11, 2020, the Company entered into a product purchase agreement (PO1) with Ejectt 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 20% of the total amount, or $361,420, as an initial deposit. On July 15, 2020, the Company signed a second product purchase agreement (PO2) of $1,807,100 with Ejectt for an additional 100 sets of the AirCinema Cube for the same purchase amount and paid a 10% initial deposit of $180,710 on this agreement as well. In February 2021, the Company paid the remaining balance of the PO1 and received the inventory with aggregate value of $1,807,100. The deposit on PO2 was refunded by Ejectt on June 1, 2021.
[2] On December 14, 2021, Aerkomm Japan and Star Jet, a Taiwan limited liability company, signed a Housing Service Order. Further on January 22, 2022, Aerkomm Japan and Star Jet signed a Satellite Service Order. Under the two orders, Aerkomm Japan agreed to provide satellite services and housing services to Star Jec.
[3] Represents payable to AATWIN due to a consulting agreement dated January 1, 2019. The monthly consulting fee is EUR 15,120 (approximately $17,000). This agreement will expire on December 31, 2021.
[4] The Company has loans from WTL due to operational needs under the Loans (Note 1).
[5] Aircom Hong Kong has a lease agreement with WWI for warehouse space with a monthly rental cost of HK$1,000. The lease term on this property is from July 1, 2022 to June 30, 2023. Aircom Hong Kong has another lease agreement with WWI for its office space in Hong Kong. The original lease term was from June 28, 2020 to June 27, 2022 with a monthly rental cost of HKD 30,000 (approximately $3,829). The Company renewed this lease on June 27, 2020 and the current lease term is from June 28, 2022 to June 27, 2023 with a monthly rental cost of HKD 30,000 (approximately $3,823).
[6] On April 18, 2021, the Company entered into a memorandum of understanding with YuanJiu pursuant to which YuanJiu will serve as the exclusive service provider to the Company in Asia with respect to the installation and service of the Company’s Aerkomm AirCinema Cube (“ACC”) product and the related software platform (“Rayfin”) on which AAC will operate. In 2021, the Company sold ground antenna equipment to YuanJiu for the cooperation purpose.
[7] Aircom Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2019 and March 4, 2021. Pursuant to the terms of this lease agreement, EESquare JP pays Aircom Japan a rental fee of approximately $920 per month.
[8] Aircom Taiwan assisted MEPA in administrative work and charged MEPA for the work performed. Aircom entered into a sublease agreement with MEPA for the period between January 11, 2022 and January 10, 2023. Pursuant to the terms of the lease agreement, MEPA pays Aircom a rental and utility fees of $6,400 per month.