Related Party Transactions

9 Months Ended

Sep. 30, 2014

Related Party Transactions

The Company has billed Egg Tart Cafe for $50,000 for the franchise fee revenue and $5,922 royalty fee revenue for the nine months ended September 30, 2014. Egg Tart Cafe owns an 18 percent interest in the Company’s outstanding common shares.

The Company purchased $139,005 and $12,005 of food products from a food production wholesaler (“Majestic Production”) which is owned by Egg Tart Cafe above for the nine months ended September 30, 2014 and 2013, respectively, and has a receivable of $538 as of September 30, 2014. Also, the Company sub-leases the office from Majestic Production at a monthly rental rate of $3,500 per month from April 1, 2013 to February 28, 2014 and $2,000 from March 1, 2014. The Company incurred $21,000 lease expense during the nine months ended September 30, 2014 and 2013.

The Company has sales of $42,545 and $12,488 for the nine months ended September 30, 2014 and 2013, respectively, and a receivable of $31 at September 30, 2014, from Aw2gether LLC, which is majority-owned by Nikki Ma, one of our Directors, our Secretary and our COO.

The Company has sales of $119,372 and a receivable of $64,289 for the nine months ended September 30, 2014 and as of September 30, 2014, respectively from OVO Café Inc., which is 9.4% owned by Winnie Sze Wing Cheung, one of our directors and our Chief Financial Officer, 9.4% by Tommy Cheung, one of our directors and our Chief Executive Officer, and 18.8% owned by Yam Ming Chong and Yue Kwan Chong, two individual major shareholders of the Company. The Company had no activity with OVO Café Inc. during 2013.

The Company incurred $15,291 and $32,204 for consulting fee and food product purchases, respectively to Wide J2 International, which is 100% owned by 7 individual shareholders of the Company (40% owned by Yam Ming Chong, 35% owned by Yue Kwan Chong, and 5% each owned by 5 other individual shareholders of the Company) for the nine months ended September 30, 2014.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

Royal Bakery Holdings, Inc. 10-Q