| Significant Related Party Transactions |
NOTE 21 - Significant Related Party Transactions
In addition to the information disclosed in other
notes, the Company has significant related party transactions as follows:
| | A. | Name of related parties and relationships with the Company: |
| Related Party | | Relationship | | Well Thrive Limited (“WTL”) | | Major stockholder | | STAR JEC INC. (“StarJec”) | | Stockholder; Albert Hsu, a Director of Aerkomm, is the Chairman | | AA Twin Associates Ltd. (“AATWIN”) | | Georges Caldironi, COO of Aerkomm, is sole owner | | EESquare Japan (“EESquare JP”) | | Yih Lieh (Giretsu) Shih, President of Aerkomm Japan, is the Director | | Yih Lieh (Giretsu) Shih | | President of Aerkomm Japan | | Louis Giordimaina | | Chief Executive Officer, Interim Chief Financial Officer and Director of the Company | | Aerkomm Taiwan, Inc (“Aerkomm Taiwan”) | | 48.65% investee of the Company |
| |
B. |
Significant related party transactions: |
The Company has extensive transactions
with its related parties. It is possible that the terms of these transactions are different from those which would result from transactions
among wholly unrelated parties.
| | a. | As of March 31, 2026 and December 31, 2025: |
| | |
March 31,
2026 | | |
December 31,
2025 | |
| | |
(Unaudited) | | |
| |
| Other receivable from: | |
| | |
| |
| - Loan: | |
| | |
| |
| EESquare JP1 | |
$ | 66,005 | | |
$ | 62,500 | |
| WTL4 | |
| 2,118,728 | | |
| 4,002,727 | |
| - Others: | |
| | | |
| | |
| Aerkomm Taiwan, formerly known as Ejectt Inc., before it merged into Aerkomm Taiwan3 | |
| 512 | | |
| 520 | |
| Others6 | |
| 79,027 | | |
| 58,333 | |
| Total | |
$ | 2,264,272 | | |
$ | 4,124,080 | |
| | |
| | | |
| | |
| Prepayment to Aerkomm Taiwan, formerly known as Ejectt Inc., before it merged into Aerkomm Taiwan3 | |
$ | 736,027 | | |
$ | 736,027 | |
| | |
| | | |
| | |
| Prepayment from Aerkomm Taiwan, formerly known as Ejectt Inc., before it merged into Aerkomm Taiwan3 | |
$ | 4,739,984 | | |
| 5,452,206 | |
| | |
| | | |
| | |
| Other payable to: | |
| | | |
| | |
| AATWIN5 | |
$ | 19,047 | | |
$ | 19,047 | |
| Interest payable to WTL4 | |
| 47,285 | | |
| 57,611 | |
| Aerkomm Taiwan, formerly known as Ejectt Inc., before it merged into Aerkomm Taiwan3 | |
| 10,679,901 | | |
| 486,563 | |
| StarJec2 | |
| 98,950 | | |
| 100,389 | |
| Others6 | |
| 662,797 | | |
| 638,668 | |
| Total | |
$ | 11,507,980 | | |
$ | 1,302,278 | |
| 1. | Aerkomm Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2019 and March
4, 2023 and subsequently extended by an aggregated of 4 years
to March 4, 2027. Pursuant to the terms of this lease agreement, EESquare JP pays Aerkomm Japan a rental fee of approximately $710 per
month as of March 31, 2026. $66,005 represents other receivable loans from EESquare JP as of March 31, 2026. These loans are interest
free and have no maturity dates. |
| 2. | Aerkomm Japan entered into a housing service order on December 14, 2021 and a satellite service order on January
22, 2022 for one year period till January 21, 2023. On June 20, 2022, Aerkomm Japan also entered a teleport service order with StarJec
for a half year period from June 1, 2022 to January 14, 2023. The amount represents receivable from StarJec for monthly service provided
due to the service agreements. The monthly service charge is approximately ￥6,820,000
(approximately $51,800 as of December 31, 2022). Other payable represents deposits should be returned to Aerkomm Taiwan, formerly known
as Ejectt Inc., after service contracts ended as of March 31, 2026. |
| 3. | Represents prepayment paid by Aerkomm Taiwan, formerly known as Ejectt
Inc., before it merged into Aerkomm Taiwan, to order 6 sets of antennas from Aircom Telecom with prepayment of $736,027 as of March 31,
2026 and December 31, 2025. In 4th quarter of 2023, Aerkomm Taiwan, formerly known as Ejectt Inc., before it merged into Aerkomm Taiwan,
entered into 3 orders with Aerkomm Japan to purchase 5 sets of equipment with approximately $4,330,592 as of December 31, 2023 and $3,877,912
as of December 31, 2024. Besides, 6 months service ordered in October 2023 for NTD 5,333,333 (approximately $174,178 as of December 31,
2023 and $168,510 as of December 31, 2024) with the Company. The number also includes the equipment purchased with Aerkomm for about $133,722
in October, 2023. The prepaid expenses of $2,076,138 as of December 31, 2023 and $2,146,807 as of December 31, 2024 which represents 3
new agreements signed with AKOM different entities for AirCinema Cube orders in year 2023. |
On March 11, 2026, Aerkomm Taiwan completed its merger with Ejectt. Upon completion of the merger, Ejectt’s shares were cancelled and new shares of Aerkomm Taiwan were issued to the former shareholders of Ejectt. Aerkomm Taiwan became the surviving company (see Note 8 for details). As of March 31, 2026, $10,679,901 previous intercompany payable balance due to Aerkomm Taiwan was reclassified as a related party balance. | | 4. | The Company had loans from Well Thrive Limited (“WTL”) and paid off during 2023. The Company has interest payable balance of $47,285 as of March 31, 2026 and $57,611 as of December 31, 2025 (approximately NTD 1,515,000) from the past loans. The Company has other receivable of $2,118,728 and $4,002,727 from WTL due to operational needs as of March 31, 2026 and December 31, 2025, respectively. These other receivable loans do not have any stated interest rates or maturity dates. |
| 5. | Represents
payable to AATWIN due to consulting agreement on January 1, 2019. The monthly consulting fee is €15,120 (approximately $17,000)
and expired on December 31, 2021. |
| 6. | Represents
receivable/payable from/to management levels as a result of regular operating activities. |
| | b. | For the three months ended March 31, 2026 and 2025 |
| | |
Three Months Ended
March 31, | |
| | |
2026 | | |
2025 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Rental income charged from EESquare JP1 | |
| 1,927 | | |
| 1,969 | |
| | |
| | | |
| | |
| 1. | Aerkomm Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2019 and March
4, 2023 and it has been renewed to March 4, 2027. Pursuant to
the terms of this lease agreement, EESquare JP pays Aerkomm Japan a rental fee of approximately $710 (JPY 100,000) per month. |
|