v3.22.2.2
Related party transactions and balances
 6 Months Ended
Jun. 30, 2022
Related Party Transactions [Abstract]  
Related party transactions and balances

8.       Related party transactions and balances

 

                    
  

Three Months Ended

June 30, 2022

 

Three Months Ended

June 30, 2021

 

Six Months Ended

June 30, 2022

 

Six Months Ended

June 30, 2021

    $    $    $    $ 
Related party transactions included within interest expense:                    
Interest expenses on promissory notes issued to relatives of the Chairman and Chief Executive Officer of the Company   83,457    78,981    162,749    157,963 
Interest expense on lines of credit payable to the Chairman and Chief Executive Officer of the Company and his spouse   392,593    355,715    777,515    670,452 
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    —      1,287,834 
                     
Related party transactions including within selling, general and administrative expenses:                    
Consulting fees to the Chairman and Chief Executive Officer of the Company accrued on the line of credit available to the Company   62,400    62,400    124,800    124,800 
Consulting fees to a director of the Company settled with issuance of common stock   40,000    —      40,000    —   
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   10,890    11,254    21,981    11,254 
Loss on settlement of debt to a relative of the Chairman and Chief Executive Officer of the Company   —      16,800    —      16,800 
Rent paid to a company controlled by the spouse of the Chairman and immediate family members   8,006    —      20,206    —   

 

Interest on promissory notes 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.

 

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 (note 6(b)(vii)). 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. As of the date of these condensed consolidated financial statements, the offer letters have not been executed.

 

On June 3, 2022, the Company issued an aggregate of 1,000,000 shares of common stock at a fair value of $0.04 per share for the settlement of $40,000 for a bonus issued and recognized in consulting fees (note 6(b)(ii)).

 

On July 7, 2022, the Company granted the Chairman and Chief Executive Officer the option to acquire 115,500,000 shares of common stock of the Company at a price of $0.05 per share until December 31, 2026 (note 11(a)).