Related Party Transactions

3 Months Ended

Mar. 31, 2019

Note 5 – Related Party Transactions

Sales

During the three months ended March 31, 2019 and 2018, the Company’s Chief Executive Officer, affiliated and family members purchased certain products from the Company for $3,349 and $2,602, respectively.

Other payable

As of March 31, 2019 and December 31, 2018, the Company had a liability of $54,953 and $10,663, respectively, to its Chief Executive Officer for short-term borrowings. The liability is non-interest bearing and are payable on demand.

Lease

During the three months ended March 31, 2019 and 2018, the Company leased offices from the Company’s Chief Executive Officer. Total lease expense to the related parties during the three months ended March 31, 2019 and 2018 were $16,135 and $15,936, respectively.

Commission cost

During the three months ended March 31, 2019 and 2018, the Company incurred $833 and $140 of commission costs to a company controlled by a family member of the Company’s Chief Executive Officer. As of March 31, 2019 and December 31, 2018, amount payable to the affiliated company for commissions were $0 and $0, respectively.

KAOPU GROUP INC 10-Q