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Related Party Transactions
9 Months Ended
Sep. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions

Note 9- Related Party Transactions

 

On September 30, 2011, Diamond Bar leased a showroom in High Point, North Carolina from the Company’s President who is currently also the Chief Executive Officer and Chairperson of the Board. The lease is renewable and has been renewed each year since 2011. On April 1, 2022, the Company renewed the lease for an additional one year term at a cost of $34,562. During the nine months ended September 30, 2022 and 2021, the Company recorded rental amounts of $17,281 and $34,561, respectively, which were included in selling expenses; and rental amounts of $8,641 and $17,280 for the three months ended September 30, 2022 and 2021, respectively.

 

On January 4, 2018, the Company entered into a sales representative agreement with a consulting firm, which is owned by the President, Chief Executive Officer and Chairperson of the Board, for sales representative service for a term of two years. On January 4, 2020, the Company renewed the agreement for an additional two years which was amended in July 2020. If not terminated during the first year, the agreement will continue until one party or the other terminates the agreement with 30 days written notice. The Company agreed to compensate the consulting firm via commission at predetermined rates of the relevant sales amount. During the nine months ended September 30, 2022 and 2021, the Company recorded $314,163 and $304,958 as commission expense to this consulting firm, respectively; and $88,149 and $93,156 for the three months ended September 30, 2022 and 2021, respectively.

 

In September 2021, Nova Malaysia entered into a consultancy agreement with an I.T. firm whose sole shareholder was a director of Nova Macao to provide E-Commerce Web Application Setup, E-Commerce Essentials Implementation, E-Commerce UIUX and other related services. During the nine and three months ended September 30, 2022, the Company recorded $317,152 and $29,181 as technology service expenses to this I.T. firm, respectively.