Related Parties Transactions
|3 Months Ended|
Mar. 31, 2016
|Related Parties Transactions [Abstract]|
|RELATED PARTIES TRANSACTIONS||
NOTE 10 – RELATED PARTIES TRANSACTIONS
Prepaid expenses – related parties
At March 31, 2016 and December 31, 2015, prepaid expenses – related parties consisted of the following:
Other receivable – related parties
At March 31, 2016 and December 31, 2015, 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 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 will be returned in full to the Company within one year.
Accounts payable - related parties
At March 31, 2016 and December 31, 2015, 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, 2016 and December 31, 2015, the due to related parties amount consisted of the following:
The advance from Xinrong Zhuo, the Company’s Chief Executive Officer, is for working capital purpose and short-term in nature, non-interest bearing, unsecured and payable on demand.
Purchases from related parties
During the three months ended March 31, 2016 and 2015, purchases from related parties were as follows:
On July 31, 2012, the Company 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 $13,000) were due for each year of the term. The term of the Office Lease was 3 years and expired on August 1, 2015. On August 1, 2015, the Company renewed the Office Lease. Pursuant to the renewed Office Lease, the annual rent is RMB 84,000 (approximately $13,000). The term of the renewed Office Lease is 1 year and expires on August 1, 2016.
For the three months ended March 31, 2016 and 2015, rent expense related to the Office Lease amounted $3,211 and $3,423, respectively.
Future minimum rental payment required under the Office Lease is as follows:
Rental and related administrative service agreement
On July 1, 2013, the Company entered into a service agreement with Hai Yi Shipping Limited that provided the Company a portion of use of premises located in Hong Kong as office and provided related administrative service (the “Service Agreement”). Pursuant to the Service Agreement, monthly payments of Hong Kong Dollar (“HK$”) 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. The Company renewed the Service Agreement. Pursuant to the renewed Service Agreement, the monthly payments are HK$298,500 (approximately $38,000) and the renewed Service Agreement expires on December 31, 2016. For the three months ended March 31, 2016 and 2015, rent expense and corresponding administrative service charge related to the Service Agreement amounted to $115,340 and $115,602, 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