8. Related
party transactions and balances
| Schedule of related party transactions | |
| | | |
| | |
| | |
Year Ended December 31, 2021 | |
Year Ended December 31, 2020 |
| Related party transactions included within interest expense: | |
| | | |
| | |
| Interest expense on promissory notes issued to relatives of the Chairman and Chief Executive Officer of the Company | |
$ | 316,504 | | |
$ | 315,926 | |
| Interest expense on lines of credit payable to the Chairman and Chief Executive Officer of the Company and his spouse | |
$ | 1,402,187 | | |
$ | 1,464,077 | |
| Interest expense related to the modification of stock options held by the Chairman and Chief Executive Officer of the Company and his spouse related to financing provided | |
$ | 1,287,834 | | |
$ | — | |
| Interest expense related to stock options granted to the spouse of the Chairman and Chief Executive Officer of the Company related to the increase of the borrowing limit of a line of credit | |
$ | 2,137,286 | | |
$ | — | |
| | |
| | | |
| | |
| Related party transactions included within selling, general and administration expenses: | |
| | | |
| | |
| Consulting fees to the Chairman and Chief Executive Officer of the Company accrued on the line of credit available to the Company | |
$ | 249,600 | | |
$ | 249,600 | |
| Salary for services as VP Corporate and Director of the Singapore subsidiary to the spouse of the Chairman and Chief Executive Officer of the Company | |
$ | 33,427 | | |
$ | — | |
| Rent paid to a company controlled by the spouse of the Chairman and immediate family members | |
$ | 24,390 | | |
$ | — | |
| Stock options granted to a member of the Board of Directors of the Company | |
$ | 304,692 | | |
$ | — | |
| Loss on settlement of debt to a relative of the Chairman and Chief Executive Officer of the Company | |
$ | 16,800 | | |
$ | — | |
Interest
on promissory notes payable, interest on lines of credit payable to related parties, management compensation and compensation paid to
a relative of a director have been recorded at the exchange amount, which is the amount agreed to by the parties. Stock options granted
to related parties and modification of stock options held by related parties have been recorded at their estimated fair value.
The Company also issued commitment letters
to two creditors who are relatives of the Chairman and Chief Executive Officer of the Company offering them an aggregate 20,000,000 shares
of common stock in exchange for the extinguishment of $1,511,377 in promissory notes and interest payable prior to December 31, 2021
(notes 6(b)(v) and 14). These offer letters expired on December 31, 2021 without the parties executing any settlements. On March
18, 2022, the Company extended the offer letters from December 31, 2021 to December 31, 2022 for the settlement of $1,541,000 in
promissory notes and interest payable.
|