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3. RELATED PARTY TRANSACTIONS
3 Months Ended
Dec. 31, 2018
Notes  
3. RELATED PARTY TRANSACTIONS

3. RELATED PARTY TRANSACTIONS

 

Sales, Purchases and Operating Expenses

 

For the three months ended December 31, 2018 and 2017, NuZee JP sold their products to EHCL, and the sales to them totaled approximately $741 and $924, respectively. The corresponding accounts receivable balance from EHCL was $1,390 and $222 as of December 31, 2018 and September 30, 2018, respectively.

 

EHCL leased an employee to NuZee JP with no fee during the three months ended December 31, 2018.

 

NuZee JP leased an employee to NuZee Co., Ltd. for Contlus during October 2016 to January 2017 for $10,936 and sold greeting cards to NuZee Co., Ltd. for $7,418 during the year ended September 30, 2017. The related receivables outstanding was $6,019 as of September 30, 2017.

 

NuZee JP leased an employee to Contlus. Contlus is the Company’s related party as the Company holds 50% of their issued shares. Contlus has payable balance of $34,568 as of December 31, 2018.

 

Rent

 

During October 2016, NuZee JP entered into a rental agreement of an office space with NuZee Co., Ltd.   The Company agrees to pay $1,169 per month for the office on the last day of each month. There is no set expiration date on the agreement.

 

During September 2016, the Company entered into a rental agreement of an office space and warehouse with EHCL. The Company agrees to pay $1,213 per month for the office and the warehouse on the last day of each month. The term of this agreement is 3 years and will be automatically renewed. At December 31, 2018, the payable balance under this lease was $2,875.

 

During February 2015, the Company entered into a rental agreement of a warehouse with Eguchi Steel Co.,Ltd (“ESCL”). The Company agrees to pay $449 per month for the warehouse on the last day of each month. There is no set expiration date on the agreement. ESCL is the Company’s related party as they are controlled by Katsuyoshi Eguchi who is a director and the minority owner of NuZee JP.