RELATED PARTIES TRANSCTIONS | 9. RELATED PARTY TRANSACTIONS As of December 31, 2017 As of December 31, 2016 Amount due from related parties Ho Wah Genting Berhad (1) $ — $ 9,020 Ho Wah Genting Group Sdn Berhad (2) 18,149 — Beedo Sdn Bhd (3) 14,837 18,062 Balance at end of year $ 32,986 $ 27,082 Amount due from director Lim Wee Kiat $ — $ 1,482 Leong Yee Ming — 3,945 Balance at end of year $ — $ 5,427 Amount of due from an associated company Vitaxel Corporation (Thailand) Limited (4) $ 103,024 $ — Balance at end of year 103,024 — Total Amount due from related parties $ 136,010 $ 32,509 Amount of due to related parties Dato’ Lim Hui Boon (5) $ 40,491 $ — Ho Wah Genting Group Sdn Berhad (1) — 607,918 Ho Wah Genting Holiday Sdn Bhd (6) 1,703 8,087 Genting Highlands Taxi Services Sdn Bhd (7) 11,820 16,234 VSpark Malaysia Sdn Bhd (8) 4,967 — Grande Legacy Inc. (9) 2,311,022 — Balance at end of year $ 2,370,003 $ 632,239 Amount of due to an associated company Vitaxel Corporation (Thailand) Limited $ — $ 279,219 Balance at end of year $ — $ 279,219 Total Amount due to related parties $ 2,370,003 $ 911,458 The related parties balances are unsecured, interest-free and repayable on demand. (1) The President of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Berhad, a company listed in Bursa Malaysia Main Market. The Company recognized an expense of rent totalling $77,010 and $20,304 during the year ended December 31, 2017 and December 31, 2016 respectively. Of the total rent, $19,261 and $20,304 was paid to Ho Wah Genting Berhad during the year ended December 31, 2017 and December 31, 2016 respectively, and $57,784 and $0 was paid to its affiliate, Malaysia-Beijing Travel Services Sdn Bhd during the year ended December 31, 2017 and December 31, 2016 respectively. The operating lease commitment to Ho Wah Genting Berhad as of December 31, 2017 was $19,261 and $0 to Malaysia-Beijing Travel Services Sdn Bhd. The lease commitment are disclosed in note 10 COMMITMENTS AND CONTINGENCIES below under the heading Operation Commitments. (2) The President of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Group Sdn Berhad, subsidiary of Ho Wah Genting Group Ltd, a company listed on the US OTC Market. Amount owing to Ho Wah Genting Group Sdn Berhad in prior year were advances, whereby settlement has been performed in current year. (3) Beedo SDN BHD was a subsidiary of related company Ho Wah Genting Group Sdn Berhad from June 25, 2015 to August 12, 2016. The Company recognized an expense of $32,102 and $74,882 pertaining for website maintenance expense during the year ended December 31, 2017 and December 31, 2016 respectively, which was charged by its related party, Beedo Sdn. Bhd. The balances due from Beedo Sdn Bhd in current year was due to discount received by the Company. (4) The Company recognized an income of $0 and $172,348 pertaining to royalties during the year ended December 31, 2017 and December 31, 2016 respectively, which was paid by an associated company, Vitaxel Corp. (Thailand) Limited. In addition, the Company also recognized product sales of $455,361 and $0 to Vitaxel Corp. (Thailand) Limited during the year ended December 31, 2017 and December 31, 2016 respectively. (5) As of December 31, 2017 and December 31, 2016, the amount due to the President of the Company, Dato’ Lim Hui Boon was $40,491 and $0, respectively. These were advances made to the Company. (6) A former director of the Company, Lim Chun Hoo, is also a director of Ho Wah Genting Holiday Sdn Bhd. On March 31, 2017, Lim Chun Hoo has resigned from the Company. The Company recognized an expense of $127,728 and $110,439 pertaining to event, traveling and accommodation expenses during the year ended December 31, 2017 and December 31, 2016 respectively, which was charged by its related party, Ho Wah Genting Holiday Sdn. Bhd. (7) A director of the Company, Lim Wee Kiat, is also a director of Genting Highlands Taxi Services Sdn Bhd and of Vitaxel Sdn Bhd. The Company purchased a motor vehicle Genting Highlands Taxi Services Sdn. Bhd for $0 and $16,601 during the year ended December 31, 2017 and December 31, 2016 respectively. (8) A director of a subsidiary (Vitaxel Online Mall Sdn Bhd), Liew Jenn Lim, is also a director of VSpark Malaysia Sdn Bhd. The Company has engaged with VSpark Malaysia Sdn Bhd during the year for marketing purposes. The Company also recognize product sales of $300 and $0 to VSpark Malaysia Sdn Bhd during the year ended December 31, 2017 and December 31, 2016 respectively. (9) A director of the Company, Leong Yee Ming, is also a director of Grande Legacy Inc. On January 5, 2017, the Company executed a license agreement with Grande Legacy Inc (“GL”). The agreement grants GL exclusive use of Vitaxel Marks to operate a Vitaxel Business in countries other than Malaysia, Singapore and Thailand. However, GL is still in the process of obtaining online payment gateway for its credit card sales, GL is currently engaging Vitaxel Sdn Bhd, a wholly-owned subsidiary of the Company, to collect credit card sales proceeds on behalf. On January 22, 2018, the Company has acquired 100% of Grande Legacy Inc. Refer note 12 SUBSEQUENT EVENTS for further details on the acquisition. |