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Related Party Transactions
9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 6 – RELATED PARTY TRANSACTIONS

 

A member of the Company's board of directors ("Board") had previously advanced the Company an aggregate amount of $1,354,567 as of September 30, 2019 and December 31, 2018 which are recorded as "Other payables – related parties" on the accompanying condensed consolidated balance sheets. The advances bear interest at a rate of 1.0% per year. Total interest expenses for each of the three months ended September 30, 2019 and 2018 were $3,386 and $3,386, respectively. Total interest expenses for the nine months ended September 30, 2019 and 2018 were $10,159 and $10,159, respectively.

 

The Company received advances totaling $722,405 and $278,696 from its Chairperson, Chief Executive Officer and Interim Chief Financial Officer. These amounts are recorded as "Other payables – related parties" on the accompanying condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018, respectively. An aggregate of $230,696 was repaid during the nine months ended September 30, 2019. On July 8, 2019 the Company entered into a loan agreement to borrow cash of RMB 4,770,000 ($674,405) from its Chairperson, Chief Executive Officer and Interim Chief Financial Officer. The loan bears interest at a rate of 4.35% and is payable within one year of the loan agreement. Total interest expense related to the loan for the three and nine months ended September 30, 2019 were both $3,896. Compensation payable to the Chairperson, Chief Executive Officer and Interim Chief Financial Officer is included in "Other payables" in the accompanying condensed consolidated balance sheets totaling $2,063,186 and $2,051,186 as of September 30, 2019 and December 31, 2018, respectively.