Related Party Transactions

3 Months Ended

Sep. 30, 2017

Note 6 – Related Party Transactions

Related Parties

Related parties with whom the Company had transactions are:

Related Parties	Relationship	Related Party Transactions	Business Purpose of Transactions
Tiffany Aguayo	Founder, Former President and Former CEO (Until September 30, 2016)	Divestiture of Predecessor	Disposal of non-operating business
Ming-Shu Tsai	Chief Executive Officer, Board member, and significant shareholder	Advances to the Company	Working capital funding
Jin-Xia Wu	Family member of Matthew Tsai	Office space at approximately $1,300 per month	Providing Office space in Taiwan

On July 5, 2016, Ms. Aguayo entered into two separate Stock Purchase Agreements for the sale of 13,000,000 and 3,000,000 shares of the Company’s common stock equivalent to her complete ownership of the Company with Ying-Chien Lin and LCG, respectively. Pursuant to the execution of the Stock Purchase Agreements, Mr. Lin and LCG owned approximately 62.5% and 14.4% of the total voting rights of the Company, respectively.

On December 15, 2016, the Company entered into a Divestment Agreement with Ms. Aguayo, pursuant to which Ms. Aguayo agreed to cancel all amounts due to her by the Company in exchange for the acquisition and purchase of all of the Predecessor’s business. The transaction was closed on December 15, 2016. The Company recorded a gain on disposal of subsidiary of $12,315, and a capital contribution of $3,030, for the year ended June 30, 2017. Such divestment and disposal of the Predecessor does not constitute a discontinued operation as it does not represent a strategic shift of the Company’s business.

During the three months period ended September 30, 2017 and 2016, Ms. Aguayo advanced to the Company $0 and $305, respectively, and no repayment was made for both periods. The advances were non-interest bearing and due on demand. As of September 30, 2017 and June 30, 2017, the balance of debt payable to Ms. Aguayo was $0 and $0, respectively.

Advances from Related-Parties

From time to time, certain officers of the Company advances funds to the Company for working capital purpose.

Ming-Shu Tsai advanced the Company $10,795 and $25,902 for the three months period ended September 30, 2017 and 2016, respectively. Ming-Shu Tsai also paid expenses on behalf of the Company for the amount of $420 and $0, for the three months period ended September 30, 2017 and 2016, respectively. The amounts are non-interest bearing and due on demand.

Ming-Shu Tsai has paid $1,574 on behalf of Atlas China during the year ended June 30, 2017. The amount was presented as due to related party included in the Company’s consolidated balance sheets as of June 30, 2017. During the three months ended September 30, 2017, Ming-Shu Tsai signed a debt agreement with the Company regarding the payment. The Company therefore reclassified the amount to loans from related parties.

As of September 30, 2017 and June 30, 2017, the balance of loans from related party is $409,982 and 397,143, respectively.

Office Space

One of the Company’s office is located at 1/F No. 103 Xin Yi Road, Lu Zhou District, Xin Bei, Taiwan. The office is rented from Jin-Xia Wu, a family member of Ming-Shu Tsai, for approximately $1,300 per month ($10,000 Hong Kong dollars). The space of the office is 90 square meters, and the purpose of this office is to continue to focus on the Company’s research and development efforts.

Atlas Technology International, Inc. 10-Q