Related Party Transactions and Balances |
9 Months Ended |
|---|---|
Oct. 31, 2024 | |
| Related Party Transactions and Balances | |
| Related Party Transactions and Balances | Note 4 – Related Party Transactions and Balances
Advances from Related Party
During the nine months ended October 31, 2024, and 2023, the Company received cash advances totaling $14,934 and $5,277, respectively, from Cheng-Hsiang Kao, the Company’s former Chief Executive Officer and a major shareholder. In addition, a related party paid operating expenses on behalf of the Company totaling $335,998 and $138,890, respectively. Amounts paid on behalf of the Company are recorded as non-cash financing activities. These advances are unsecured, non-interest-bearing, and payable on demand. As of October 31, 2024, and January 31, 2024, total advances outstanding were $776,415 and $425,482, respectively.
Due to Related Party
In prior years, the Company sources its inventory exclusively from a vendor wholly owned by shareholders who collectively hold more than 20% of the Company’s outstanding common shares as of October 31, 2024. These shareholders are also family members of the Company’s Chairman. As of October 31, 2024, and January 31, 2024, amounts due to this related party totaled $2,411,000 and are disclosed in Accounts Payable – related party on the balance sheets.
The Company does not have written agreements governing the repayment terms of related-party balances. These obligations are unsecured, non-interest-bearing, and payable on demand. No assurances can be provided that related parties will continue to provide financial support or refrain from demanding repayment. The Company has not adopted a formal related-party transaction policy, and all such transactions are approved by management. These related-party relationships and financial dependencies are further discussed under “Risk Factors–Risk Related to Related-Party Transactions and Conflicts of Interest.” |