Commitments and Contingencies
|9 Months Ended|
Sep. 30, 2017
|Commitments and Contingencies [Abstract]|
|COMMITMENTS AND CONTINGENCIES||
NOTE 15 – COMMITMENTS AND CONTINGENCIES
The Company has employment agreements with certain employees that provided severance payments upon termination of employment under certain circumstances, as defined in the applicable agreements. The Company has estimated its possible severance payments of approximately $10,000 as of September 30, 2017 and December 31, 2016, which have not been reflected in its consolidated financial statements.
See note 10 for related party operating lease commitment.
Rental payment and related administrative service charge
See note 10 for related party rental and related administrative service agreement commitment.
Fishing vessels construction agreement
On February 20, 2017, the Company entered into an agreement with Huanghai Ship Construction Co., Ltd. (“Huanghai”) related to the construction of 2 squid jigging vessels. The project requires a total investment of RMB 67.0 million (approximately $10.0 million). The funds are required to be invested over the construction period of the project. As of September 30, 2017, Pingtan Fishing has paid RMB 35.5 million (approximately $5.3 million) of the total investment.
The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.
Reference 1: http://www.xbrl.org/2003/role/presentationRef