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AMOUNTS DUE FROM (TO) RELATED PARTIES

9 Months Ended

Sep. 30, 2021

NOTE－9 AMOUNTS DUE FROM (TO) RELATED PARTIES

Amounts due to related parties consisted of the following:


	September 30, 2021		December 31, 2020
		(Unaudited)
Amounts due to related parties (a)	$	24,763	$	96,940
Amounts due to shareholders (b)		—		738,964
Amount due to a director (c)		—		735,833
	$	24,763	$	1,571,737

(a) The amounts represented temporary advances to the Company including related parties (two officers), which were unsecured, interest-free and had no fixed terms of repayments. On September 30, 2021, the Company received the notifications that the outstanding amounts of $72,176 were forgiven by the related parties, the said amount was written off and accounted as capital transaction and therefore credited the additional paid in capital account as of September 30, 2021. The Company’s due to related parties balance was $24,763 and $96,940 as of September 30, 2021 and December 31, 2020, respectively.

(b) In February 2018, the Company entered into MOU with Connect Investment Pte Ltd (Enter Asia) for capital alliance for approximately 27% of shareholdings in the Company. Further, in August 2018, the said MOU was modified and shareholding was revised from 27% to 10% in the Company. However, subsequently in October 2020, it was agreed between both the parties to cease the said MOU with the understanding that there is no current and future obligation with either of them i.e. neither EnterAsia to make investment in the Company nor the Company to issue shares to EnterAsia. Further, the EnterAsia is going to get the shares of the Hottab Holdings Ltd (HHL) for the amount so far invested in the Company and therefore the amount due to EnterAsia is reclassified into the amount due to shareholder “Hottab Holdings Ltd”.

This amounts represented temporary advances to the Company by shareholder, which were unsecured, interest-free and had no fixed terms of repayments. On September 30, 2021, the Company received the notifications that the outstanding amounts of $738,964 were forgiven by the related parties, the said amount was written off and accounted as capital transaction and therefore credited the additional paid in capital account as of September 30, 2021. The Company’s due to a shareholder balance was $0 and $738,964 as of September 30, 2021 and December 31, 2020, respectively. Imputed interest is charged at 4.5% per annum, which was amounted to $36,380 and $36,381 for the nine months ended September 30, 2021 and 2020, respectively.

(c) The amount represented paid salaries and bonus to the Director which was unsecured, interest-free and had no fixed terms of repayments. As of June 30, 2021, the Director had $960,833 in accrued, but unpaid compensation which could be converted to shares by dividing that amount by the employment agreement conversion price of $0.83 to produce 1,157,630 shares. During the period ended September 30, 2021, the Company issued those shares at the fair value of $3,854,908, results into the additional compensation expenses of $2,894,075 accounted under stock based compensation account. The Company’s due to a director balance was $-0 and $735,833 as of September 30, 2021 and December 31, 2020, respectively.

Amounts due from related parties

The director has advance $97,500 during the period ended September 30, 2021, subsequently as of date, the same was recovered by the Company.