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| RELATED PARTY TRANSACTIONS | 3. RELATED PARTY TRANSACTIONS
Loan to/from SeD Intelligent Home Inc.
The Company receives advances from or loans funds to SeD Intelligent Home, the owner of 99.99% of the Company. The advances or the loans bore interest of 18% until August 30, 2017 when the interest rate was adjusted to 5% and have no set repayment terms. During the three months ended March 31, 2026 and 2025, the Company received repayment of $0 and $470,000, respectively, from SeD Intelligent Home. The accrued interest of $0 and $162,345 at March 31, 2026 and 2025, respectively, were offset against interest payable in the Company’s Balance Sheet, prior to the Distribution. Following the Distribution, the Company had no amounts outstanding with SeD Intelligent Home Inc. as of March 31, 2026 and December 31, 2025.
Below table presents the changes in the loan balances during first three months of 2025.
Management Fees
MacKenzie Equity Partners, LLC, an entity owned by Charles MacKenzie, a Director of the Company, has a consulting agreement with a majority-owned subsidiary of the Company. Pursuant to an agreement entered into in June of 2022, as supplemented in August 2023, the Company’s subsidiary pays $25,000 per month to MacKenzie Equity Partners, LLC for consulting services. In addition, MacKenzie Equity Partners, LLC has been paid certain bonuses, including a sum of $75,000 in May 2025.
The Company incurred expenses of $0 and $75,000 in the three months ended March 31, 2026 and 2025, respectively. On March 31, 2026 and December 31, 2025, the Company owed this related party $0.
Note from Alset Inc.
On January 13, 2023, the Company received a note from Alset Inc. in the amount of $11,350,933 in relation to the sale of its rental business in 2023. The note carries interest rate of 7.2% and matures on January 13, 2028. During the three months ended on March 31, 2026 and 2025, we recognized interest income of $0 and $201,518, respectively.
Alset Inc. owns 85.8% of Alset International Limited, and Alset International Limited indirectly owns approximately 99.9% of the Company. Certain members of the Company’s Board of Directors and management are also members of the Board of Directors and management of each Alset International Limited and Alset Inc. Chan Heng Fai, the Chairman, Chief Executive Officer and majority stockholder of Alset Inc., is also the Chairman and Chief Executive Officer of both the Company and Alset International Limited; Chan Tung Moe is the Co-Chief Executive Officer and a member of the Board of Directors of Alset Inc., Alset International Limited and the Company; and Charles MacKenzie, a member of the Board of Directors of the Company, is also an officer of Alset Inc. Following the Distribution, the Company had no amounts outstanding with Alset Inc. as of March 31, 2026 and December 31, 2025.
Below table presents the changes in the loan balances during first three months of 2025.
Loans for Operations
During the three months ended March 31, 2026, the Company borrowed an aggregate of $66,219 from two entities under common control and paid $5,912 towards the borrowings. These borrowings were used to support the Company’s operating activities.
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