Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.10.0.1
Property and Equipment
9 Months Ended
Dec. 31, 2018
Property and Equipment [Abstract]  
Property and Equipment

NOTE 5 - Property and Equipment

 

As of December 31, 2018 and March 31, 2018, the balances of property and equipment were as follows:

 

      December 31,
2018
    March 31,
2018
 
      (Unaudited)        
  Ground station equipment   $ 1,854,027     $ -  
  Satellite equipment     275,410       275,410  
  Computer software and equipment     321,070       122,085  
  Furniture and fixture     33,344       10,006  
  Vehicle     141,971       -  
  Leasehold improvement     89,721       -  
        2,715,543       407,501  
  Accumulated depreciation     (322,049 )     (119,782 )
  Net     2,393,494       287,719  
  Prepayments - land     35,237,127       -  
  Prepayment for equipment     54,625       181,250  
  Construction in progress     1,311,245       3,254,170  
  Net   $ 38,996,491     $ 3,723,139  

 

As of December 31, 2018, the Company transferred construction in progress in the amount of $721,799 to R&D expenses.

 

On May 1, 2018, the Company and Aerkomm Taiwan entered into a binding memorandum of understanding with Tsai Ming-Yin (the “Seller”) with respect to the acquisition by Aerkomm Taiwan of a parcel of land located in Taiwan. The land is expected to be used to build a satellite ground station and data center. On July 10, 2018, the Company, Aerkomm Taiwan and the Seller entered into a certain real estate sales contract regarding this acquisition. Pursuant to the terms of the contract, and subsequent amendments on July 30, 2018, September 4, 2018, November 2, 2018 and January 3, 2019, the Company paid to the seller in installments refundable prepayment of $33.85 million as of December 31, 2018. The remaining amount of the purchase price, $624,462, which may also be paid in installments, must be paid in full by the Company and Aerkomm Taiwan in cash before January 4, 2019, which was subsequently extended to July 4, 2019. As of December 31, 2018, the estimated commission payable for the land purchase in the amount of $1,387,127 was recorded to the cost of land.

 

Construction in progress was the payment for the construction of ground station equipment relating to satellite communication system and in-flight system for the Company’s internal use.