Related Parties Transactions
|3 Months Ended|
Mar. 31, 2015
|Related Parties Transactions [Abstract]|
|RELATED PARTIES TRANSACTIONS||
NOTE 10 – RELATED PARTIES TRANSACTIONS
Prepaid expenses – related parties
At March 31, 2015 and December 31, 2014, prepaid expenses – related parties consisted of the following:
Deferred expenses – related parties
At March 31, 2015 and December 31, 2014, deferred expenses – related parties consisted of the following:
PT. Avona Mina Lestari and Hong Long act as agents to apply fishing licenses for the Company and pay the related fishing licenses application fees on behalf of the Company. Therefore, the Company either prepays or reimburses them for fishing licenses application fees paid on behalf of the Company.
Other receivable – related parties
At March 31, 2015 and December 31, 2014, other receivable – related parties consisted of the following:
In connection with the termination of VIE structure and to comply with PRC regulation, the Company paid USD 13,586,289 (RMB 83 million) in total, which is Pingtan Fishing’s registered capital, to Pingtan Fishing’s Shareholders to transfer their 100% of equity interest of Pingtan Fishing to Fujian Heyue, the Company’s subsidiary pursuant to the Equity Transfer Agreement dated February 9, 2015. Those payments are deemed to be short term advances in nature with no interest bearing and receivable upon demand in a year.
Accounts payable - related parties
At March 31, 2015 and December 31, 2014, accounts payable - related parties consisted of the following:
These accounts payable – related parties amounts are short-term in nature, non-interest bearing, unsecured and payable on demand.
Due to related parties
At March 31, 2015 and December 31, 2014, the due to related parties consisted of the following:
These advances are short-term in nature, non-interest bearing, unsecured and payable on demand.
Purchases from related parties
During the three months ended March 31, 2015 and 2014, purchases from related parties were as follows:
On July 31, 2012, Pingtan Fishing entered into a lease for office space with Ping Lin, spouse of the Company’s CEO, (the “Office Lease”). Pursuant to the Office Lease, annual payments of RMB 84,000 (approximately $14,000) are due for each year of the term. The term of the Office Lease is 3 years and expires on August 1, 2015. For the three months ended March 31, 2015 and 2014, rent expense related to the Office Lease amounted $3,423 and $3,420, respectively.
Future minimum rental payments required under the Office Lease is as follows:
Rental and related administrative service agreement
On July 1, 2013, the Company entered into a service agreement with Hai Yi Shipping Limited that provided the Company a portion of use of premises located in Hong Kong as office and provided related administrative service (the “Service Agreement”). Pursuant to the Service Agreement, monthly payments of HK$298,500 (approximately $38,000) were due for each month of the term. The term of the Service Agreement was 1.5 years and expired on December 31, 2014. In December 2014, the Company renewed the Service Agreement. Pursuant to the renewed Service Agreement, the monthly payments are HK$298,500 (approximately $38,000). The term of the renewed Service Agreement is 1 years and expires on December 31, 2015. For the three months ended March 31, 2015 and 2014, rent expense and corresponding administrative service charge related to the Service Agreement amounted to $115,602 and $115,391, respectively.
Future minimum rental and related administrative service charge payment required under the Service Agreement is as follows:
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef