Related-Party Transactions

9 Months Ended

Sep. 30, 2014

14.

RELATED–PARTY TRANSACTIONS

On April 10, 2013, the Company entered into a service agreement with its 20% unconsolidated investee, Xun Yun Tian Technologies (Zhejiang). Services provided by the Company include (1.) monthly recurring management services for providing technology, business team formation and training, initial contract solicitation to potential customers, in order to create business opportunities and transactional contracts for RMB 120,000 per month, (2.) non-recurring technical labor service for transferring high-end wireless technology and achieving business contracts which would allow Xun Yun Tian Technologies secure leading wireless technology position in PRC for RMB 1,000,000 every four months. The agreement will expire in October, 2014. As of September 30, 2014 and December 31, 2013, the Company had accounts receivable from Xun Yun Tian Technologies in aggregated amount of $382,337 and $0, respectively, which arouse from provided service revenue amounted of $611,353 and $597,990 for the nine-month ended September 30, 2014 and for the year ended December 31, 2013, respectively.

- 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

Teletronics International, Inc. 10-Q