RELATED PARTY BALANCES AND TRANSACTIONS

12 Months Ended

Dec. 31, 2020

17. RELATED PARTY BALANCES AND TRANSACTIONS

The table below summarizes the major related parties and their relationships with the Company:


Company Name		Relationship with the Company
Renren Inc.		The controlling shareholder of the Company
Shareholder Value Fund (SVF)		A shareholder of the Company after the SPAC Transaction
Ningbo Jiusheng Automobile Sales Co., Ltd. (“Jiusheng”)		A entity untimately controlled by Mr. Lin Mingjun, who is appointed as Chief Executive Officer of the Company in November 2020

Amouns due to related parties consisted of the following:


	As of December 31,
	2019		2020
Renren and its subsidiaries ⁽¹⁾	$	—	$	2,255
Ningbo Jiusheng Automobile Sales Co., Ltd.		—		705
SVF ⁽²⁾		4,214		—
Total	$	4,214	$	2,960

Related party transactions:


	For the year ended December 31,
	2019		2020
Funds from Renren Inc. and its subsidiaries⁽¹⁾	$	113,400	$	2,140
Funds from SVF⁽²⁾		1,600		—
Operating advance from Ningbo Jiusheng Automobile Sales Co., Ltd.		—		666
Promissory notes issued to SVF⁽²⁾		2,614		—
Amounts due to SVF converted into ordinary shares of KAH ⁽²⁾		—		4,213
Repayment of funds to Renren Inc. ⁽¹⁾		115,501		—
Loan waived by Renren Inc. ⁽³⁾		76,007		—

(1)	The amount mainly represents advanced funds provided by Renren and its subsidiaries to finance the Company’s daily operations.

17. RELATED PARTY BALANCES AND TRANSACTIONS (cont.)

(2)

On April 30, 2019, KAH, KAG, Renren and SVF executed an agreement (the “Waiver Agreement”) pursuant to which KAG and Renren waived certain rights under the Share Exchange Agreement in exchange for SVF’s commitment to (i) contribute $1.6 million to KAH within two weeks after the closing of the SPAC Transaction, (ii) set a limit on the liabilities to be paid by cash (up to $4.0 million) and noncash (up to $2.6 million) consideration by KAH and (iii) use its best efforts to restructure $2.6 million KAH due to SVF prior to the SPAC Transaction, which would have become past due upon the closing of the SPAC Transaction.

On June 4, 2019, SVF paid $1,600 to the Company according to the Waiver Agreement.

On June 10, 2020, the Company and SVF entered into a subscription agreement to issue 4,213,629 ordinary shares to SVF, and cancel all the prior existing notes or agreements related to the $4.2 million balance as of December 31, 2019. The Company has issued the shares to SVF in July 2020.

(3)	On April 30, 2019, Renren also waived all the outstanding loans and receivables in the amount of $76,007 due from KAG and KAG’s subsidiaries without recourse by Renren or any of Renren’s subsidiaries upon consummation of the SPAC Transaction.