Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

v3.8.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2017
Commitments and Contingencies [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 15 – COMMITMENTS AND CONTINGENCIES

 

Severance payments

 

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 December 31, 2017 and 2016, which have not been reflected in its consolidated financial statements. 

 

Operating lease

 

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 December 31, 2017, the construction of 2 squid jigging vessels have been completed and Pingtan Fishing has paid RMB 65.5 million (approximately $9.7 million) of the total investment.