| RELATED PARTY TRANSACTIONS AND BALANCES |
9. RELATED PARTY TRANSACTIONS AND BALANCES
a. Nature of relationships with
related parties:
| | | Relationship with the Company | | Thunder Power (Hong Kong) Limited (“TP HK”) | | Over which the spouse of Mr. Wellen Sham, the Company’s controlling shareholder, exercises significant influence | | Thunder Power Electric Vehicle (Hong Kong) Limited (“TPEV HK”) | | Over which the spouse of Mr. Wellen Sham, the Company’s controlling shareholder, exercises significant influence | | Mr. Wellen Sham | | Controlling shareholder of the Company | | Ms. Ling Houng Sham | | Spouse of Mr. Wellen Sham | | Feutune Light Sponsor LLC (“FLFV Sponsor”) | | Shareholder of the Company |
b. Related party transactions:
| | |
| |
For three months ended
March 31, | |
| | |
Nature | |
2026 | | |
2025 | |
| TP HK | |
Rental expenses | |
$ | 3,629 | | |
$ | 5,898 | |
For three months ended March
31, 2026, the Company borrowed $350,000 from Mr. Wellen Sham to support the Company’s operations. The borrowing bears an interest
rate of 8% and is payable through March 2027.
For three months ended March
31, 2025, the Company borrowed $491,470 from Mr. Wellen Sham to support the Company’s operations. The borrowing bears an interest
rate of 8% and was originally payable through March 31, 2026, and was subsequently renewed with repayment of $100,000 due January 13,
2027, $271,440 due February 18, 2027, and $120,030 due March 13, 2027.
For the three months ended March
31, 2025, the Company borrowed $100,000 from Ms. Ling Houng Sham to support the Company’s operations. The borrowing bears an interest
rate of 8% and was originally payable through March 31, 2026, and was subsequently renewed with repayment scheduled through March 28,
2027.
c. Balance with related parties:
| | |
Nature | |
March 31, 2026 | | |
December 31, 2025 | |
| TP HK(1) | |
Amount due to the related party | |
$ | 117,118 | | |
$ | 113,498 | |
| Mr. Wellen Sham(2) | |
Amount due to the related party | |
| 3,236,002 | | |
| 2,823,585 | |
| Ms. Ling Houng Sham (2) | |
Amount due to the related party | |
| 336,668 | | |
| 330,751 | |
| FLFV Sponsor(3) | |
Amount due to the related party | |
| 190,000 | | |
| 190,000 | |
| | |
| |
$ | 3,879,788 | | |
$ | 3,457,834 | |
| (1) | The balance due to TP HK represented the payments made by TP HK on behalf of TP Holdings regarding the office rental fee and employee salary expenses. The balance is interest free and is repayable on demand. |
| (2) | The balance due to Mr. Wellen Sham represented the promissory notes of $560,000 for extension of FLFV, promissory notes of $2,365,824 for the daily operation of the Company, other payable of $34,000 for payment of operating expenses on behalf of the Company and interest payable of $276,178. The balance due to Ms. Ling Houng Sham represented promissory notes of $300,000 for extension of FLFV and interest payable of $36,668. The promissory notes issued to Mr. Wellen Sham matured through March 2027
with interest rates ranging between 8% and 10%. The promissory notes issued to Ms. Ling Houng Sham matured through March 2027 with interest
rate of 8%. | | | | | (3) | In May and June 2024, FLFV issued three promissory notes to the FLFV Sponsor in exchange for an aggregated loan of $190,000 from the FLFV Sponsor, among which $50,000 was payable on closing of the Business Combination, and $140,000 was payable on July 21, 2024. As of the date of this Quarterly Report, the Company has not settled the promissory notes with FLFV Sponsor. |
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