| RELATED PARTIES TRANSACTIONS |
NOTE 10 – RELATED PARTIES TRANSACTIONS
Accounts receivable- related party
At December 31, 2021 and 2020, the due from related
party amount consisted of the following:
| |
|
December 31,
2021 |
|
|
December 31,
2020 |
|
| Accounts receivable- related party |
|
|
|
|
|
|
| - Global Deep Ocean |
|
$ |
5,660,857 |
|
|
$ |
- |
|
Accounts payable - related parties
At December 31, 2021 and 2020, accounts payable
- related parties consisted of the following:
| Name of related party |
|
December 31,
2021 |
|
|
December 31,
2020 |
|
| Hong Long (1)
|
|
$ |
- |
|
|
$ |
781,225 |
|
| Global Deep Ocean |
|
|
28,209 |
|
|
|
7,602,944 |
|
| Fujian Jingfu Ocean Fishery Development Co., Ltd. (2)
|
|
|
- |
|
|
|
1,327 |
|
| Huna Lin (3)
|
|
|
4,932,091 |
|
|
|
1,581,212 |
|
| |
|
$ |
4,960,300 |
|
|
$ |
9,966,708 |
|
| (1) |
Hong Long was an affiliate
company majority owned by an immediate family member of the Company’s CEO and is no longer a related party of the Company since this
immediate family member sold his interests in Hong Long to an unrelated party on October 10, 2021. |
| (2) |
Fujian Jingfu Ocean Fishery
Development Co., Ltd. is a subsidiary of Hong Long. |
| (3) |
Huna Lin is an immediate family
of Zhiyan Lin, and Zhiyan Lin is shareholder of Pingtan Fishing, |
These accounts payable - related parties’
amounts are short-term in nature, non-interest bearing, unsecured and payable on demand.
Due to related parties
At December 31, 2021 and 2020, the due to related
parties amount consisted of the following:
| |
|
December 31,
2021 |
|
|
December 31,
2020 |
|
| Accrued compensation for LiMing Yung, Chief Financial Officer |
|
$ |
15,000 |
|
|
$ |
15,000 |
|
| Accrued compensation for Xinrong Zhuo, Chief Executive Officer |
|
|
3,354 |
|
|
|
3,354 |
|
| Advance from Xinrong Zhuo, Chief Executive Officer |
|
|
7,157,634 |
|
|
|
- |
|
| |
|
$ |
7,175,988 |
|
|
$ |
18,354 |
|
The balance of accrued compensation represents accrued compensation
for the CEO and CFO.
The advance from Xinrong Zhuo, the Company’s
Chief Executive Officer, is for working capital purposes and short-term in nature, non-interest bearing, unsecured and payable on demand.
Operating lease
On July 31, 2012, the Company
entered into a lease for office space with Ping Lin, the spouse of the Company’s CEO (the “Office Lease”). Pursuant
to the Office Lease, the annual rent is RMB84,000 (approximately US$13,000) and expired on July 31, 2021. This lease was renewed
under the same terms and t will expire on December 31, 2023.
For the years ended December 31, 2021, 2020 and
2019, rent expense related to the Office Lease amounted $13,141, $12,178 and $12,177, respectively. Future minimum rental payment required
under the Office Lease is as follows:
| Year Ending December 31: |
|
Amount |
|
| 2022 |
|
$ |
13,000 |
|
Sales to related parties
During the years ended December 31, 2021, 2020
and 2019 selling to related parties were as follows:
| |
|
Year Ended December 31, |
|
| |
|
2021 |
|
|
Percentage
of revenue |
|
|
2020 |
|
|
Percentage
of revenue |
|
|
2019 |
|
|
Percentage
of revenue |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Xiamen International Trade Honglong Industrial Co., Ltd. |
|
$ |
570,465 |
|
|
|
0.3 |
% |
|
$ |
733,318 |
|
|
|
0.8 |
% |
|
$ |
- |
|
|
|
- |
% |
Purchases from related parties
During the years ended December 31, 2021, 2020
and 2019, purchases from related parties were as follows:
| |
|
Year Ended December 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| Purchase of fuel, freight, fishing nets and other on-board consumables |
|
|
|
|
|
|
|
|
|
| Fuzhou Honglong Ocean Fishery Co., Ltd. |
|
$ |
17,986,745 |
|
|
$ |
2,001,375 |
|
|
$ |
5,021,348 |
|
| Fujian Jingfu Marine Fishery Development Co., Ltd |
|
|
2,297,533 |
|
|
|
- |
|
|
|
- |
|
| Zhiyan Lin |
|
|
- |
|
|
|
2,950 |
|
|
|
4,068 |
|
| Huna Lin |
|
|
16,814,865 |
|
|
|
11,279,793 |
|
|
|
- |
|
| |
|
|
37,099,143 |
|
|
|
13,284,118 |
|
|
|
5,025,416 |
|
| Purchase of vessel maintenance service |
|
|
|
|
|
|
|
|
|
|
|
|
| Huna Lin |
|
|
- |
|
|
|
- |
|
|
|
481,119 |
|
| Zhiyan Lin |
|
|
4,201 |
|
|
|
7,144 |
|
|
|
- |
|
| |
|
|
4,201 |
|
|
|
7,144 |
|
|
|
481,119 |
|
| Purchase of inventory |
|
|
|
|
|
|
|
|
|
|
|
|
| Xiamen International Trade Honglong Industrial Co., Ltd. |
|
|
3,421,288 |
|
|
|
|
|
|
|
|
|
| Global Deep Ocean |
|
|
14,040,989 |
|
|
|
17,186,623 |
|
|
|
- |
|
| |
|
|
17,462,277 |
|
|
|
17,186,623 |
|
|
|
- |
|
| Purchase of storage and transportation service |
|
|
|
|
|
|
|
|
|
|
|
|
| Fuzhou Honglong Ocean Fishery Co., Ltd. |
|
|
- |
|
|
|
- |
|
|
|
114,230 |
|
| Fujian Jingfu Ocean Fishery Development Co., Ltd. |
|
|
- |
|
|
|
707,153 |
|
|
|
- |
|
| |
|
|
- |
|
|
|
707,153 |
|
|
|
114,230 |
|
|