Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Jan. 18, 2024 | |
Document Information Line Items | ||
Entity Registrant Name | AERKOMM INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 16,869,613 | |
Amendment Flag | false | |
Entity Central Index Key | 0001590496 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55925 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 46-3424568 | |
Entity Address, Address Line One | 44043 Fremont Blvd. | |
Entity Address, City or Town | Fremont | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | (877) | |
Local Phone Number | 742-3094 | |
Title of 12(b) Security | None | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE | |
Entity Interactive Data Current | Yes |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash | $ 253,278 | $ 6,878,362 |
Short-term investment | 3,614,358 | 2,009,238 |
Inventories, net | 1,366,282 | 1,366,282 |
Prepaid expenses | 9,994,150 | 6,030,516 |
Other receivable – related parties | 1,440,369 | 308,544 |
Other current assets | 149,920 | 152,349 |
Total Current Assets | 16,818,357 | 16,745,291 |
Long-term Investment | 4,047,767 | 4,572,243 |
Property and Equipment | ||
Cost | 4,078,306 | 4,011,883 |
Accumulated depreciation | (3,000,979) | (2,486,836) |
Total Property and Equipment | 1,077,327 | 1,525,047 |
Prepayment for land | 34,074,113 | 35,748,435 |
Prepayment for equipment | 308,542 | 458,998 |
Net Property and Equipment | 35,459,982 | 37,732,480 |
Other Assets | ||
Prepaid expenses – non-current | 2,239,552 | 1,995,937 |
Restricted cash | 3,224,355 | 3,223,558 |
Intangible asset, net | 1,031,250 | 1,402,500 |
Goodwill | 21,236,856 | 4,561,037 |
Right-of-use assets, net | 245,498 | 92,451 |
Deposits | 538,565 | 315,015 |
Total Other Assets | 28,516,076 | 11,590,498 |
Total Assets | 84,842,182 | 70,640,512 |
Current Liabilities | ||
Short-term loans | 982,468 | 1,316,253 |
Accounts payable | 1,564,627 | 1,950,939 |
Accrued expenses | 4,171,413 | 2,433,400 |
Other payable – related parties | 884,382 | 340,467 |
Other payable – others | 11,214,678 | 5,017,040 |
Prepayment from customer – related party | 2,163,034 | 1,258,786 |
Long-term loan - current | 7,575 | 11,271 |
Lease liability – current | 150,818 | 131,181 |
Total Current Liabilities | 21,138,995 | 12,459,337 |
Long-term Liabilities | ||
Long-term bonds payable | 9,517,690 | 9,137,006 |
Convertible long-term note payable | 23,173,200 | 23,173,200 |
Long-term loan – non-current | 79,242 | 5,027 |
Contract liability – non-current | 762,000 | 762,000 |
Lease liability – non-current | 145,236 | 35,172 |
Restricted stock deposit liability | 1,000 | 1,000 |
Total Long-Term Liabilities | 33,678,368 | 33,113,405 |
Total Liabilities | 54,817,363 | 45,572,742 |
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2023 and December 31, 2022 | ||
Common stock, $0.001 par value, 90,000,000 shares authorized, 16,720,451 shares and 9,720,003 shares (excluding 149,162 unvested restricted shares) issued and outstanding as of September 30, 2023 and December 31, 2022 | 16,720 | 9,720 |
Additional paid in capital | 96,425,743 | 79,078,005 |
Accumulated deficits | (65,191,369) | (53,645,981) |
Accumulated other comprehensive loss | (1,226,275) | (373,974) |
Total Stockholders’ Equity | 30,024,819 | 25,067,770 |
Total Liabilities and Stockholders’ Equity | $ 84,842,182 | $ 70,640,512 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | ||
Preferred stock, outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 90,000,000 | 90,000,000 |
Common stock, issued | 16,720,451 | 9,720,003 |
Common stock, outstanding | 16,720,451 | 9,720,003 |
Unvested restricted shares | 149,162 | 149,162 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total Revenue | $ 61,582 | $ 2,855 | $ 507,949 | $ 6,073 |
Cost of Sales | 26,666 | 472,115 | ||
Gross Profit | 34,916 | 2,855 | 35,834 | 6,073 |
Operating Expenses | 4,303,845 | 2,380,851 | 11,577,414 | 6,075,775 |
Loss from Operations | (4,268,929) | (2,377,996) | (11,541,580) | (6,069,702) |
Non-Operating Income (Loss) | ||||
Foreign currency exchange (loss) gain | (806,619) | (1,318,614) | (1,126,762) | (2,602,872) |
Bond issuance cost | (128,663) | (121,703) | (380,684) | (360,089) |
Unrealized gain (loss) on investments | (1,320,206) | (25) | 1,770,888 | (21,157) |
Other income (loss), net | 100,372 | 11,799 | (264,850) | 34,740 |
Net Non-Operating (Loss) Income | (2,155,116) | (1,428,543) | (1,408) | (2,949,378) |
Loss before Income Taxes | (6,424,045) | (3,806,539) | (11,542,988) | (9,019,080) |
Income Tax Expense | 2,400 | 1,600 | ||
Net Loss | (6,424,045) | (3,806,539) | (11,545,388) | (9,020,680) |
Other Comprehensive Income (Loss) | ||||
Change in foreign currency translation adjustments | (569,911) | 1,290,912 | (852,301) | 2,482,003 |
Total Comprehensive Loss | $ (6,993,956) | $ (2,515,627) | $ (12,397,689) | $ (6,538,677) |
Net Loss Per Common Share: | ||||
Basic (in Dollars per share) | $ (0.641) | $ (0.3857) | $ (1.1638) | $ (0.914) |
Diluted (in Dollars per share) | $ (0.641) | $ (0.3857) | $ (1.1638) | $ (0.914) |
Weighted Average Shares Outstanding - Basic (in Shares) | 10,021,349 | 9,869,165 | 9,920,450 | 9,869,165 |
Weighted Average Shares Outstanding - Diluted (in Shares) | 10,021,349 | 9,869,165 | 9,920,450 | 9,869,165 |
Net Sales – Related Party | ||||
Total Revenue | $ 446,367 | |||
Service Income – Related Party | ||||
Total Revenue | $ 61,582 | $ 2,855 | $ 61,582 | $ 6,073 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Common Stock | Additional Paid in Capital | Accumulated Deficits | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2021 | $ 9,716 | $ 77,825,976 | $ (41,767,258) | $ (1,896,158) | $ 34,172,276 |
Balance (in Shares) at Dec. 31, 2021 | 9,715,889 | ||||
Stock compensation expense | 246,999 | 246,999 | |||
Other comprehensive income | 518,027 | 518,027 | |||
Net loss for the period | (2,479,213) | (2,479,213) | |||
Balance at Mar. 31, 2022 | $ 9,716 | 78,072,975 | (44,246,471) | (1,378,131) | 32,458,089 |
Balance (in Shares) at Mar. 31, 2022 | 9,715,889 | ||||
Balance at Dec. 31, 2021 | $ 9,716 | 77,825,976 | (41,767,258) | (1,896,158) | 34,172,276 |
Balance (in Shares) at Dec. 31, 2021 | 9,715,889 | ||||
Net loss for the period | (9,020,680) | ||||
Balance at Sep. 30, 2022 | $ 9,720 | 78,878,066 | (50,787,938) | 585,845 | 28,685,693 |
Balance (in Shares) at Sep. 30, 2022 | 9,720,003 | ||||
Balance at Mar. 31, 2022 | $ 9,716 | 78,072,975 | (44,246,471) | (1,378,131) | 32,458,089 |
Balance (in Shares) at Mar. 31, 2022 | 9,715,889 | ||||
Issuance of common stock | $ 4 | 32,908 | 32,912 | ||
Issuance of common stock (in Shares) | 4,114 | ||||
Stock compensation expense | 712,341 | 712,341 | |||
Other comprehensive income | 673,064 | 673,064 | |||
Net loss for the period | (2,734,928) | (2,734,928) | |||
Balance at Jun. 30, 2022 | $ 9,720 | 78,818,224 | (46,981,399) | (705,067) | 31,141,478 |
Balance (in Shares) at Jun. 30, 2022 | 9,720,003 | ||||
Issuance of common stock | |||||
Stock compensation expense | 59,842 | 59,842 | |||
Other comprehensive income | 1,290,912 | 1,290,912 | |||
Net loss for the period | (3,806,539) | (3,806,539) | |||
Balance at Sep. 30, 2022 | $ 9,720 | 78,878,066 | (50,787,938) | 585,845 | 28,685,693 |
Balance (in Shares) at Sep. 30, 2022 | 9,720,003 | ||||
Balance at Dec. 31, 2022 | $ 9,720 | 79,078,005 | (53,645,981) | (373,974) | $ 25,067,770 |
Balance (in Shares) at Dec. 31, 2022 | 9,720,003 | 9,720,003 | |||
Stock compensation expense | 54,891 | $ 54,891 | |||
Other comprehensive income | 134,254 | 134,254 | |||
Net loss for the period | (3,754,436) | (3,754,436) | |||
Balance at Mar. 31, 2023 | $ 9,720 | 79,132,896 | (57,400,417) | (239,720) | 21,502,479 |
Balance (in Shares) at Mar. 31, 2023 | 9,720,003 | ||||
Balance at Dec. 31, 2022 | $ 9,720 | 79,078,005 | (53,645,981) | (373,974) | $ 25,067,770 |
Balance (in Shares) at Dec. 31, 2022 | 9,720,003 | 9,720,003 | |||
Net loss for the period | $ (11,545,388) | ||||
Balance at Sep. 30, 2023 | $ 16,720 | 96,425,743 | (65,191,369) | (1,226,275) | $ 30,024,819 |
Balance (in Shares) at Sep. 30, 2023 | 16,720,451 | 16,720,451 | |||
Balance at Mar. 31, 2023 | $ 9,720 | 79,132,896 | (57,400,417) | (239,720) | $ 21,502,479 |
Balance (in Shares) at Mar. 31, 2023 | 9,720,003 | ||||
Issuance of common stock | |||||
Stock compensation expense | 209,995 | 209,995 | |||
Other comprehensive income | (416,644) | (416,644) | |||
Net loss for the period | (1,366,907) | (1,366,907) | |||
Balance at Jun. 30, 2023 | $ 9,720 | 79,342,891 | (58,767,324) | (656,364) | 19,928,923 |
Balance (in Shares) at Jun. 30, 2023 | 9,720,003 | ||||
Issuance of common stock | $ 7,000 | 16,493,000 | 16,500,000 | ||
Issuance of common stock (in Shares) | 7,000,448 | ||||
Stock compensation expense | 589,852 | 589,852 | |||
Other comprehensive income | (569,911) | (569,911) | |||
Net loss for the period | (6,424,045) | (6,424,045) | |||
Balance at Sep. 30, 2023 | $ 16,720 | $ 96,425,743 | $ (65,191,369) | $ (1,226,275) | $ 30,024,819 |
Balance (in Shares) at Sep. 30, 2023 | 16,720,451 | 16,720,451 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net loss | $ (11,545,388) | $ (9,020,680) |
Depreciation and amortization | 897,046 | 769,394 |
Amortization of Right of Use Assets | 75,899 | 8,840 |
Stock-based compensation | 847,738 | 1,019,182 |
Unrealized (gain) loss on investments | (1,770,888) | 21,157 |
Amortization of bonds issuance costs | 380,684 | 360,089 |
Accounts receivable | 75,180 | |
Prepaid expenses | (4,134,587) | (1,999,853) |
Other current assets | (1,129,394) | (216,499) |
Deposits | (223,550) | 10,386 |
Accounts payable | (386,312) | 262,419 |
Accrued expenses and other current liabilities | 9,622,337 | 1,526,171 |
Operating lease liability | (5,902) | (195,544) |
Net Cash Used for Operating Activities | (7,372,317) | (7,379,758) |
Cash Flows from Investing Activities | ||
Proceeds from disposal of short-term investment | (1,416,142) | |
Proceeds from disposal of long-term investment | 325,578 | |
Proceeds from sales of trading security | 7,823 | |
Purchase of property and equipment | (379,128) | (11,462) |
Net Cash Used by Investing Activities | (53,550) | (1,419,781) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of common stock | 7,000 | |
Repayment of short-term loan | (384,189) | |
Proceeds from short-term loan | 9,015,361 | |
Repayment of long-term loan | (8,723) | (11,065) |
Payment on finance lease liability | (8,619) | (9,279) |
Net Cash (Used) Provided by Financing Activities | (394,531) | 8,995,017 |
Net (Decrease) Increase in Cash and Restricted Cash | (7,820,398) | 195,478 |
Cash and Restricted Cash, Beginning of Period | 10,101,920 | 3,288,813 |
Foreign Currency Translation Effect on Cash | 1,196,111 | 2,482,003 |
Cash and Restricted Cash, End of Period | 3,477,633 | 5,966,294 |
Cash paid during the period for income taxes | 2,400 | 1,600 |
Cash paid during the period for interest | 18,819 | |
Cash and Restricted Cash: | ||
Cash | 253,278 | 2,745,708 |
Restricted cash | 3,224,355 | 3,220,586 |
Total | $ 3,477,633 | $ 5,966,294 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2023 | |
Organization [Abstract] | |
Organization | NOTE 1 - Organization Aerkomm Inc. (formerly Maple Tree Kids Inc.) (“Aerkomm”) was incorporated on August 14, 2013 in the State of Nevada. Aerkomm was a retail distribution company selling all of its products over the internet in the United States, operating in the infant and toddler products business market. Aerkomm’s common stock is quoted for trading on the OTC Markets Group Inc. OTCQX Market under the symbol “AKOM.” On July 17, 2019, the French Autorité des Marchés Financiers On December 28, 2016, Aircom Pacific Inc. (“Aircom”) purchased approximately 86.3% of Aerkomm’s issued and outstanding common stock as of the closing date of purchase. As a result of the transaction, Aircom became the controlling shareholder of Aerkomm. Aircom was incorporated on September 29, 2014 under the laws of the State of California. On February 13, 2017, Aerkomm entered into a share exchange agreement (“Exchange Agreement”) with Aircom and its shareholders, pursuant to which Aerkomm acquired 100% of the issued and outstanding capital stock of Aircom in exchange for approximately 99.7% of the issued and outstanding capital stock of Aerkomm. As a result of the share exchange, Aircom became a wholly-owned subsidiary of Aerkomm, and the former shareholders of Aircom became the holders of approximately 99.7% of Aerkomm’s issued and outstanding capital stock. On December 31, 2014, Aircom acquired a newly incorporated subsidiary, Aircom Pacific Ltd. (“Aircom Seychelles”), a corporation formed under the laws of the Republic of Seychelles. On November 8, 2021, Aircom Seychelles changed its name to Aerkomm SY Ltd. (“Aerkomm SY”) and the ownership was transferred from Aircom to Aerkomm. Aerkomm SY was formed to facilitate Aircom’s global corporate structure for both business operations and tax planning. Presently, Aerkomm SY has no operations. Aerkomm is working with corporate and tax advisers in finalizing its global corporate structure and has not yet concluded its final plan. On October 17, 2016, Aircom acquired a wholly owned subsidiary, Aircom Pacific Inc. Limited (“Aircom HK”), a corporation formed under the laws of Hong Kong. On November 8, 2021, Aircom HK changed its name to Aerkomm Hong Kong Limited (“Aerkomm HK”) and its ownership was transferred from Aircom to Aerkomm. The purpose of Aerkomm HK is to conduct Aircom’s business and operations in Hong Kong. Presently, its primary function is business development, both with respect to airlines as well as content providers and advertisement partners based in Hong Kong. Aerkomm HK is also actively seeking strategic partnerships whom Aerkomm may leverage in order to provide more and better services to its customers. Aerkomm also plans to provide local supports to Hong Kong-based airlines via Aerkomm HK and teleports located in Hong Kong. On December 15, 2016, Aircom acquired a wholly owned subsidiary, Aircom Japan, Inc. (“Aircom Japan”), a corporation formed under the laws of Japan. On November 9, 2021, Aircom Japan changed its name to Aerkomm Japan, Inc. (“Aerkomm Japan”) and its ownership was transferred from Aircom to Aerkomm. The purpose of Aerkomm. The purpose of Aerkomm Japan is to conduct business development and operations located within Japan. Aerkomm Japan is in the process of applying for, and will be the holder of, Satellite Communication Blanket License in Japan, which is necessary for Aerkomm to provide services within Japan. Aerkomm Japan will also provide local supports to airlines operating within the territory of Japan. Aircom Telecom LLC (“Aircom Taiwan”), which became a wholly owned subsidiary of Aircom in December 2017, was organized under the laws of Taiwan on June 29, 2016. Aircom Taiwan is responsible for Aircom’s business development efforts and general operations within Taiwan. On June 13, 2018, Aerkomm established a then wholly owned subsidiary, Aerkomm Taiwan Inc. (“Aerkomm Taiwan”), a corporation formed under the laws of Taiwan. The purpose of Aerkomm Taiwan is to purchase a parcel of land and raise sufficient fund for ground station building and operate the ground station for data processing (although that cannot be guaranteed). On December 29, 2022, Aerkomm and dMobile System Co., Ltd. (the “Buyer”) entered into an equity sales contract pursuant to the terms of which Aerkomm sold a majority interest of 25,500,000 shares (the “Shares”) of Aerkomm Taiwan to the Buyer for NT$255,000,000 (approximately US $9,023,354 as of December 31, 2022). On November 15, 2018, Aircom Taiwan acquired a wholly owned subsidiary, Beijing Yatai Communication Co., Ltd. (“Beijing Yatai”), a corporation formed under the laws of China. The purpose of Beijing Yatai is to conduct Aircom’s business and operations in China. Presently, its primary function is business development, both with respect to airlines as well as content providers and advertisement partners based in China as most business conducted in China requires a local registered company. Beijing Yatai is also actively seeking strategic partnerships whom Aircom may leverage in order to provide more and better services to its customers. Aircom also plans to provide local supports to China-based airlines via Beijing Yatai and teleports located in China. On November 6, 2020, 100% ownership of Beijing Yatai was transferred from Aircom Taiwan to Aerkomm Taiwan. On October 31, 2019, Aerkomm SY established a new a wholly owned subsidiary, Aerkomm Pacific Limited (“Aerkomm Malta”), a corporation formed under the laws of Malta. The purpose of Aerkomm Malta is to conduct Aerkomm’s business and operations and to engage with suppliers and potential airlines customers in the European Union. The Company’s organization structure is as following: On September 04, 2022, Aerkomm acquired a wholly owned subsidiary, MEPA Labs Inc. (MEPA), a California corporation. The purpose of the acquisition is to extend business development and operations related to the satellite products. On September 28, 2023, Aerkomm acquired a wholly owned subsidiary, Mixnet Technology Limited (Mixnet) and its wholly owned subsidiary, Mesh Technology Taiwan Limited (Mesh), a Taiwan company. The purpose of the acquisition is to extend business development and operations related to the satellite products. Mixnet's name changed to Mesh Technology Limited as of September 7, 2023. Aerkomm and its subsidiaries (the “Company”) are full-service, development stage providers of in-flight entertainment and connectivity solutions with their initial market in the Asian Pacific region. The Company has not generated significant revenues, excluding non-recurring revenues, and will incur additional expenses as a result of being a public reporting company. Currently, the Company has taken measures that management believes will improve its financial position by financing activities, including through public offerings, private placements, short-term borrowings and equity contributions. Two of the Company’s current shareholders (the “Lenders”) each committed to provide to the Company a $10 million bridge loan (together, the “Loans”) for an aggregate principal amount of $20 million, to bridge the Company’s cash flow needs prior to its obtaining a mortgage loan to be secured by a parcel of land (the “Land”) the Company purchased in Taiwan. The Lenders also agreed to an earlier closing of up to 25% of the principal amounts of the Loans upon the Company’s request prior to the time that title to the Land is vested in the Company’s subsidiary, Aerkomm Taiwan, to pay the outstanding payable to the Company’s vendors. On April 25, 2022, the Lenders further amended the commitment and agreed to increase the percentage of earlier closing amount from 25% to 100% and the full $20 million is available to the Company. With the $20 million in Loans committed by the Lenders and our holdings of marketable securities in Ejectt, the Company believes its working capital will be adequate to sustain its operations for the next sixteen months. However, there is no assurance that management will be successful in furthering the Company’s business plan, especially if the Company is not able to raise additional funding from the above sources or from other sources. There are a number of additional factors that could potentially arise that could result in shortfalls in the Company’s business plan, such as general worldwide economic conditions, competitive pricing in the connectivity industry, the continuing impact of the COVID 19 pandemic, the Company’s operating results continuing to deteriorate and the Company’s banks and shareholders not being able to provide continued financial support. The Company’s common stock is quoted for trading on the OTC Markets Group Inc. OTCQX Market under the symbol “AKOM.” On July 17, 2019, the French Autorité des Marchés Financiers |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet as of September 30, 2023, and the condensed consolidated statements of operations and comprehensive loss and cash flows for the nine months ended September 30, 2023 and 2022 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position as of September 30, 2023 and the results of operations and cash flows for the nine months ended September 30, 2023 and 2022. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these nine months periods are unaudited. The results of operations for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period or other future year. Principle of Consolidation Aerkomm consolidates the accounts of its subsidiaries, Mixnet, Mesh, MEPA, Aircom, Aircom Seychelles, Aircom HK, Aircom Japan, Aircom Taiwan, Aerkomm Taiwan, Beijing Yatai and Aerkomm Malta. All significant intercompany accounts and transactions have been eliminated in consolidation. Reclassifications of Prior Year Presentation Certain prior year balance sheet, and cash flow statement amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash in banks. As of September 30, 2023 and December 31, 2022, the total balance of cash in bank exceeding the amount insured by the Federal Deposit Insurance Corporation (FDIC) for the Company was approximately $0 and $6,153,000, respectively. The balance of cash deposited in foreign financial institutions exceeding the amount insured by local insurance is approximately $3,153,000 and $3,134,000 as of September 30, 2023 and December 31, 2022, respectively. The Company performs ongoing credit evaluation of its customers and requires no collateral. An allowance for doubtful accounts is provided based on a review of the collectability of accounts receivable. The Company determines the amount of allowance for doubtful accounts by examining its historical collection experience and current trends in the credit quality of its customers as well as its internal credit policies. Actual credit losses may differ from management’s estimates. Investment in Equity Securities According to FASB issued Accounting Standards Updates 2016-01 (ASU 2016-01), it requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value being recorded in current period earnings, impacting the net income. For the investments in equity securities without readily determinable fair values, the investments may be recorded at cost, subject to impairment, and adjusted through net income for observable price changes. Holdings of marketable equity securities with no significant influence over the investee are accounted for using cost method. Marketable equity security costs are initially recognized at fair value plus transaction costs which are directly attributable to the acquisition. The cost of the securities sold is based on the weighted average cost method. Stock dividends from the investment are included to recalculate the cost basis of the investment based on the total number of shares. Accounts receivable The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires the Company to estimate all expected credit losses for financial assets measured at amortized cost basis, including trade receivables, based on historical experience, current market conditions and supportable forecasts. The Company’s accounts receivable are carried at the amounts invoiced to customer. The risk of credit loss is mitigated by the Company’s credit evaluation process. Receivables are presented as net of an allowance for credit losses. Allowances for expected credit losses are determined based on an assessment of historical experience, the current economic conditions, future expectations of economic conditions, future expectation regarding customer solvency, and other collection factors. The Company will apply adjustments for specific factors and current economic conditions as needed at each reporting date. As of September 30, 2023 and December 31, 2022, the Company had $0 Account Receivable. Therefore, allowances for expected credit losses were $0 as of September 30, 2023 and December 31, 2022. Inventories Inventories are recorded at the lower of weighted-average cost or net realizable value. The Company assesses the impact of changing technology on its inventory on hand and writes off inventories that are considered obsolete. Estimated losses on scrap and slow-moving items are recognized in the write down cost for losses. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. When value impairment is determined, the related assets are stated at the lower of fair value or book value. Significant additions, renewals and betterments are capitalized. Maintenance and repairs are expensed as incurred. Depreciation is computed by using the straight-line and double declining methods over the following estimated service lives: ground station equipment – 5 years, computer equipment - 3 to 5 years, furniture and fixtures - 5 years, satellite equipment – 5 years, vehicles – 5 to 6 years and lease improvement – 5 years or remaining lease term, whichever is shorter. Upon sale or disposal of property and equipment, the related cost and accumulated depreciation are removed from the corresponding accounts, with any gain or loss credited or charged to income in the period of sale or disposal. The Company reviews the carrying amount of property and equipment for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. It determined that there was no impairment loss for the years ended September 30, 2023 and December 31, 2022. Right-of-Use Asset and Lease Liability In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842) (“ASU 2016-02”), which modifies lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases and finance leases under previous accounting standards and disclosing key information about leasing arrangements. A lessee should recognize the lease liability to make lease payments and the right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases and finance leases, a right-of-use asset and a lease liability are initially measured at the present value of the lease payments by discount rates. The Company’s lease discount rates are generally based on its incremental borrowing rate, as the discount rates implicit in the Company’s leases is readily determinable. Operating leases are included in operating lease right-of-use assets and lease liabilities in the consolidated balance sheets. Finance leases are included in property and equipment and lease liability in our consolidated balance sheets. Lease expense for operating expense payments is recognized on a straight-line basis over the lease term. Interest and amortization expenses are recognized for finance leases on a straight-line basis over the lease term. For the leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. Goodwill and Purchased Intangible Assets The Company’s goodwill represents the amount by which the total purchase price paid exceeded the estimated fair value of net assets acquired from acquisition of subsidiaries. The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate that there may be impairment. Purchased intangible assets with finite life are amortized on the straight-line basis over the estimated useful lives of respective assets. Purchased intangible assets with indefinite life are evaluated for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Purchased intangible asset consists of satellite system software and is amortized over 10 years. Fair Value of Financial Instruments The Company utilizes the three-level valuation hierarchy for the recognition and disclosure of fair value measurements. The categorization of assets and liabilities within this hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy consist of the following: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active or inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. Level 3 - Inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of inputs market participants could use in pricing the asset or liability at the measurement date, including assumptions. The carrying amounts of the Company’s cash and restricted cash, short-term investment, accounts receivable, inventory, prepaid expenses, other receivable, accounts payable, short-term loan, accrued expenses, and other payable approximated their fair value due to the short-term nature of these financial instruments. The Company’s long-term bonds payable, long-term notes payable, long-term loan and lease payable approximated the carrying amount as its interest rate is considered as approximate to the current rate for comparable loans and leases, respectively. There were no outstanding derivative financial instruments as of September 30, 2023 and December 31, 2022. Revenue Recognition The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs upon the transfer of control in accordance with the contractual terms and conditions of the sale. The Company’s revenue for the year ended December 31, 2021 composed of the sales of ground antenna units to a related party and sales of network hardware to a non-related party. The majority of the Company’s revenue is recognized at a point in time when product is shipped, or service is provided to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimates for variable consideration. The Company adopted the provisions of ASU 2014-09 Revenue from Contracts with Customers (Topic 606) and the principal versus agent guidance within the new revenue standard. As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenue when (or as) the Company satisfies a performance obligation. Customers may make payments to the Company either in advance or in arrears. If payment is made in advance, the Company will recognize a contract liability under prepayments from customers until which point the Company has satisfied the requisite performance obligations to recognize revenue. Stock-based Compensation The Company adopted the modified prospective method to measure stock-based compensation expense. Under the modified prospective method, stock-based compensation expense recognized during the period is based on the portion of the share-based payment awards granted after the effective date and ultimately expected to vest during the period. Stock-based compensation expense recognized in the Company’s statement of income is based on the vesting terms and the estimated fair value of the award at grant date. As stock-based compensation expense recognized in the statement of income is based on awards ultimately expected to vest, it is reduced for estimated forfeiture. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses the Black-Scholes option pricing model in its determination of fair value of share-based payment awards on the date of grant. Such option pricing model is affected by assumptions based on a number of highly complex and subjective variables. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. Adjustments to prior period’s income tax liabilities are added to or deducted from the current period’s tax provision. The Company follows FASB guidance on uncertain tax positions and has analyzed its filing positions in all the federal, state and foreign jurisdictions where it is required to file income tax returns, as well as all open tax years in those jurisdictions. The Company files income tax returns in the US federal, state and foreign jurisdictions where it conducts business. It is not subject to income tax examinations by US federal, state and local tax authorities for years before 2018. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on its consolidated financial position, results of operations, or cash flows. Therefore, no reserves for uncertain tax positions have been recorded. The Company does not expect its unrecognized tax benefits to change significantly over the next twelve months. The Company’s policy for recording interest and penalties associated with any uncertain tax positions is to record such items as a component of income before taxes. Penalties and interest paid or received, if any, are recorded as part of other operating expenses in the consolidated statement of operations. Foreign Currency Transactions Foreign currency transactions are recorded in U.S. dollars at the exchange rates in effect when the transactions occur. Exchange gains or losses derived from foreign currency transactions or monetary assets and liabilities denominated in foreign currencies are recognized in current income. At the end of each period, assets and liabilities denominated in foreign currencies are revalued at the prevailing exchange rates with the resulting gains or losses recognized in income for the period. Translation Adjustments If a foreign subsidiary’s functional currency is the local currency, translation adjustments will result from the process of translating the subsidiary’s financial statements into the reporting currency of the Company. Such adjustments are accumulated and reported under other comprehensive loss as a separate component of stockholders’ equity. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include stock warrants and outstanding stock options, shares to be purchased by employees under the Company’s employee stock purchase plan. The Company had 6,463,400 and 1,943,618 common stock equivalents, primarily stock options and warrants, for the year ended September 30, 2023 and 2022, respectively. For the fiscal years ended September 30, 2023 and 2022, the assumed exercise of the Company’s common stock equivalents were not included in the calculation as the effect would be anti-dilutive. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | NOTE 3 - Recent Accounting Pronouncements Simplifying the Accounting for Debt with Conversion and Other Options. In June 2020, the FASB issued ASU 2020-06 to simplify the accounting in ASC 470, Debt with Conversion and Other Options and ASC 815, Contracts in Equity’s Own Entity. The guidance simplifies the current guidance for convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. Additionally, the amendments affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. This ASU will be effective beginning in the first quarter of the Company’s fiscal year 2022. Early adoption is permitted. The amendments in this update must be applied on either full retrospective basis or modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. The adoption of ASU 2020-06 does not have a significant impact on the Company’s consolidated financial statements as of and for the year ended September 30, 2023. Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of ASU 2016-13 until fiscal year beginning after December 15, 2022. In March 2022, the FASB issued ASU 2022-02 and eliminate the Troubled Debt Restructuring recognition and measurement guidance. Earnings Per Share In April 2021, the FASB issued ASU 2021-04, which included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. The adoption of ASU 2021-04 does not have a significant impact on the Company’s consolidated financial statements as of and for the year ended September 30, 2023. |
Short-Term Investment
Short-Term Investment | 9 Months Ended |
Sep. 30, 2023 | |
Short-Term Investment [Abstract] | |
Short-term Investment | NOTE 4 - Short-term Investment On September 9, 2019, the Company entered into a liquidity agreement with a security company (“the Liquidity Provider”) in France, which is consistent with customary practice in the French securities market. The liquidity agreement complies with applicable laws and regulations in France and authorizes the Liquidity Provider to carry out market purchases and sales of shares of the Company’s common stock on the Euronext Paris market. To enable the Liquidity Provider to carry out the interventions provided for in the contract, the Company contributed approximately $225,500 (200,000 euros) into the account. The transaction was initiated in the beginning of 2020, and the Company pays annual compensation of 20,000 euros to the Liquidity Provider in advance by semi-annual installments at the beginning of each semi-annual period under the agreement. The liquidity agreement had an initial term of one year and is being renewed automatically unless otherwise terminated by either party. As of September 30, 2023, the Company had purchased 5,361 shares of its common stock with the fair value of $13,831. The securities were recorded as short-term investment with an accumulated unrealized loss of $5,839. In January 2022, the Liquidity Provider terminated the agreement and the Company is determining whether to continue a similar program. On December 3, 2020, the Company entered into three separate stock purchase agreements (or “Stock Purchase Agreement”) from three individuals to purchase an aggregate of 6,000,000 restricted shares of one of the Company’s related parties, YuanJiu Inc. (“YuanJiu”) in a total amount of NT$141,175,000 (approximately US$5,027,600 as of December 31, 2020). YuanJiu is a listed company in Taipei Exchange and the stock title transfer is subject to certain restrictions. Albert Hsu, a member of the Company’s board of directors, is the Chairman of YuanJiu. On July 19, 2021, YuanJiu Inc. changed its name to “EJECTT INC” (“Ejectt”). On March 24, 2021, the Company purchased additional 2,000 shares of Ejectt’s common stock for a total amount of $1,392 from a related party. As of December 31, 2021, 5,000,000 shares of Ejectt’s common stock were restricted and booked under long-term investment. (See Note 8) As of September 30, 2023 and December 31, 2022, this investment totaled approximately a 8% ownership of Ejectt. On July 20th, 2023, the Taipei Stock Exchange (the “Exchange”) announced that the securities of Ejectt Inc. would be suspended from trading on the Exchange as of July 20, 2023, in accordance with Article 12-1 of the Business Rules of the Exchange. It is the Company’s understanding that this suspension is temporary. If within six months of suspension and cessation of trading Ejectt can meet the relevant requirements of Article 12-1, Paragraph 2 and Paragraph 4 of the Business Rules regarding profitability and the issuance of a special audit report on the internal control system by an accountant, and has an underwriter evaluation report, Ejectt can apply to the Exchange to have trading in its stock resume. Ejectt has announced that it will prepare all necessary documents and procedures and apply to the Exchange in December 2023 to have the temporary suspension removed. The Company’s management believes that this temporary trading suspension of the Eject Inc. securities will have no impact on the value of its investment in the Ejectt stock. On September 30, 2022, the Company entered into a stock purchase agreement (or “Stock Purchase Agreement”) to purchase common stock of Shinbao in a total amount of NT$35,000,000 (approximately $1,085,608 as of September 30, 2023 and $1,138,952 as of December 31, 2022). Shinbao is a privately-held company in Taiwan. As of January *, 2024, the stock title transfer is still under process. As of September 30, 2023 and December 31, 2022, the fair value of the investment was as follows: September 30, December 31, (Unaudited) Investment – Ejectt – short-term $ 2,514,919 $ 850,182 Investment - Liquidity 13,831 20,104 Prepaid investment 1,085,608 1,138,952 Total Investment 3,614,358 2,009,238 Appreciation in market value - Ejectt (1,917,318 ) (223,216 ) Investment cost – Ejectt – short-term 597,601 626,966 Investment cost - Liquidity 13,831 20,104 Prepaid investment 1,085,608 1,138,952 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstract] | |
Inventories | NOTE 5 - Inventories As of September 30, 2023 and December 31, 2022, inventories consisted of the following: September 30, December 31, (Unaudited) Satellite equipment for sale under construction $ 1,366,282 $ 1,366,282 |
Prepaid Expenses
Prepaid Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses [Abstract] | |
Prepaid Expenses | NOTE 6 - Prepaid Expenses As of September 30, 2023 and December 31, 2022, prepaid expenses consisted of the following: September 30, December 31, (Unaudited) Prepaid engineering expense $ 9,486,067 $ 7,536,409 Prepaid professional expense 105,786 79,954 Others 2,641,850 410,090 Total $ 12,233,703 $ 8,026,453 Prepaid expense - current 9,994,151 6,030,516 Prepaid expense – non-current 2,239,552 1,995,937 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment | NOTE 7 - Property and Equipment As of September 30, 2023 and December 31, 2022, the balances of property and equipment were as follows: September 30, December 31, (Unaudited) Ground station equipment $ 1,854,027 $ 1,854,027 Computer software and equipment 1,502,285 1,419,697 Satellite equipment 275,410 275,410 Vehicle 324,340 342,646 Leasehold improvement 83,721 83,721 Furniture and fixture 38,522 36,382 4,078,306 4,011,883 Accumulated depreciation (3,000,979 ) (2,486,836 ) Net 1,077,327 1,525,047 Prepayments - land 34,074,113 35,748,435 Prepaid equipment 308,542 458,998 Total $ 35,459,982 $ 37,732,480 On July 10, 2018, the Company and Aerkomm Taiwan entered into a real estate sale contract (the “Land Purchase Contract”) with Tsai Ming-Yin (the “Seller”) with respect to the acquisition by Aerkomm Taiwan of a parcel of land located in Taiwan. The land is expected to be used to build a satellite ground station and data center. Pursuant to the terms of the Land Purchase Contract, and subsequent amendments on July 30, 2018, September 4, 2018, November 2, 2018 and January 3, 2019, the Company paid to the seller in installments refundable prepayments of NT$1,098,549,407 (approximately $34,074,113 as of September 30, 2023 and $35,748,435 as of December 31, 2022) in total. The estimated commission payable for the land purchase in the amount of NT$42,251,900 (approximately $1,310,543 as of September 30, 2023 and 1,374,940 as of December 31, 2022) was recorded to the cost of land. And the company is under the discussion of extending the commission payable to December 31,2023. According to the amended Land Purchase Contract dated on November 10, 2020, the transaction may be terminated at any time by both the buyer and the seller and agreed by all parties if the Company is unable to obtain the qualified satellite license issued by Taiwan authority before July 31, 2021. As of January *, 2024, the qualified license applications are still in progress. Depreciation expense was $525,796 and $406,984 for the nine months periods ended September 30, 2023 and 2022, respectively. |
Long-Term Investment
Long-Term Investment | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Investment [Abstract] | |
Long-term Investment | NOTE 8 - Long-term Investment As of September 30, 2023 and December 31, 2022, 5,000,000 shares of Ejectt’s common stock were restricted. Also on September 29, 2022, the Company entered into a stock purchase agreement (or “Stock Purchase Agreement”) to purchase 2,670,000 shares of common stock of AnaNaviTek Corp. (AnaNaviTek) in a total amount of NT$40,050,000 (approximately $1,303,287 as of December 31, 2022). AnaNaviTek is a privately-held company in Taiwan. As of November 21, 2022, the Company has paid NT$10,005,000 (approximately $325,578 as of December 31, 2022) for 667,000 shares of AnaNaviTek stock and the stock title transfer for these shares has been completed. In Q1 2023, the Company disposed AnaNaviTek for amount of $325,578. As of September 30, 2023 and December 31, 2022, the fair value of the long-term investment was as follows: September 30, December 31, (Unaudited) Investment cost – Ejectt – long-term $ 4,047,767 $ 4,246,665 Investment cost – AnaNaviTek - 325,578 Net $ 4,047,767 $ 4,572,243 |
Intangible Asset, Net
Intangible Asset, Net | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Asset, Net [Abstract] | |
Intangible Asset, Net | NOTE 9 - Intangible Asset, Net As of September 30, 2023 and December 31, 2022, the cost and accumulated amortization for intangible asset were as follows: September 30, December 31, (Unaudited) Satellite system software $ 4,950,000 $ 4,950,000 Accumulated amortization (3,918,750 ) (3,547,500 ) Net $ 1,031,250 $ 1,402,500 Amortization expense was $371,250 and $371,250 for the nine-months periods ended September 30, 2023 and 2022. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
Goodwill | Note 10 - Goodwill The Company obtained the goodwill of $1,475,334 from past various merge and acquisition events of all subsidiaries from year 2016 to 2022 described in Note 1. On September 4, 2022, the Company acquired 100% of the ownership of MEPA Labs Inc. (MEPA) with total consideration of $100,000. The fair value of MEPA at acquisition date was $-2,985,703. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was $3,085,703, which is recorded as goodwill. On September 28, 2023, the Company acquired 100% of the ownership of Mixnet Technology Limited (Mixnet) and its subsidiary Mesh Technology Taiwan Limited (Mesh) with total consideration of $16,500,000 by issuing 7,000,448 shares of the Company’s common stock valued at approximately $2.36 per share. The fair value of Mixnet and Mesh at acquisition date was $-175,819. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was $16,675,819, which is recorded as goodwill. As of September 30, 2023 and December 31, 2022, the goodwill were as follows: September 30, December 31, (Unaudited) Gross amount $ 21,236,856 $ 4,561,037 Accumulated Impairment - - Net $ 21,236,856 $ 4,561,037 No impairment loss on goodwill were recognized for nine-month period ended September 30, 2023 and the year ended December 31, 2022. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of MEPA is calculated as follows; Total purchase considerations $ 100,000 Fair Value of tangible assets acquired: Cash 482,247 Loan receivable 500,000 Prepaid expenses and other current assets 252,792 Property and equipment 218,042 Deposits 5,400 Total identifiable assets acquired 1,458,481 Fair value of liabilities assumed: Accounts payable 11,075 Loan from stockholder (4,324,000 ) Other payable (131,259 ) Total liabilities assumed (4,444,184 ) Net identifiable liabilities assumed (2,985,703 ) Goodwill as a result of the acquisition $ 3,085,703 Goodwill as a result of the acquisition of Mixnet and its subsidiary is calculated as follows; Total purchase considerations $ 16,500,000 Fair Value of tangible assets acquired: Cash 66,278 Other receivable 3,513 Prepaid expenses and other current assets 2,872 Total identifiable assets acquired 72,663 Fair value of liabilities assumed: Loan payable – current (50,403 ) Prepayment from customer (94,634 ) Other payable (24,203 ) Loan from stockholder – non-current (79,242 ) Total liabilities assumed (248,482 ) Net identifiable liabilities assumed (175,819 ) Goodwill as a result of the acquisition $ 16,675,819 |
Operating and Finance Leases
Operating and Finance Leases | 9 Months Ended |
Sep. 30, 2023 | |
Operating and Finance Leases [Abstract] | |
Operating and Finance Leases | NOTE 11 - Operating and Finance Leases A. Lease term and discount rate: The weighted-average remaining lease term and discount rate related to the leases were as follows: 2023 2022 Weighted-average remaining lease term (Unaudited) Operating lease 2.24 Year 1.50 Years Finance lease 1.10 Years 1.85 Years Weighted-average discount rate Operating lease 6.00 % 6.00 % Finance lease 3.82 % 3.82 % B. The balances for the operating and finance leases are presented as follows within the unaudited condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022: Operating Leases September 30, December 31, (Unaudited) Right-of-use assets $ 245,498 $ 92,451 Lease liability – current $ 140,169 $ 120,323 Lease liability – non-current $ 141,228 $ 22,547 Finance Leases September 30, December 31, (Unaudited) Property and equipment, at cost $ 56,770 $ 56,770 Accumulated depreciation (45,242 ) (36,925 ) Property and equipment, net $ 11,528 $ 19,845 Lease liability - current $ 10,649 $ 10,858 Lease liability – non-current 4,008 12,624 Total finance lease liabilities $ 14,657 $ 23,482 The components of lease expense are as follows within the unaudited condensed consolidated statements of operations and comprehensive loss for the three months periods and nine months periods ended September 30, 2023 and 2022: Operating Leases Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (Unaudited) (Unaudited) (Unaudited) (Unaudited) Lease expense $ 32,242 $ 32,710 $ 75,899 $ 124,376 Sublease rental income (2,069 ) (19,200 ) (6,519 ) (52,858 ) Net lease expense $ 30,172 $ 13,510 $ 69,380 $ 71,518 Finance Leases Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (Unaudited) (Unaudited) (Unaudited) (Unaudited) Amortization of right-of-use asset $ 2,745 $ 2,845 $ 8,235 $ 8,840 Interest on lease liabilities 163 274 567 932 Total finance lease cost $ 2,908 $ 3,119 $ 8,801 $ 9,772 Supplemental cash flow information related to leases for the nine months periods ended September 30, 2023 and 2022 is as follows: September 30, September 30, (Unaudited) (Unaudited) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 52,407 $ 47,774 Operating cash outflows from finance lease $ 8,052 $ 8,321 Financing cash outflows from finance lease $ 567 $ 932 Leased assets obtained in exchange for lease liabilities: Operating leases $ 244,495 $ 74,795 Maturity of lease liabilities: Operating Leases Others Total (Unaudited) (Unaudited) October 1, 2023 – September 30, 2024 $ 119,142 $ 119,142 October 1, 2023 – September 30, 2024 89,256 89,256 October 1, 2023 – September 30, 2024 59,504 59,504 Total lease payments $ 267,902 $ 267,902 Less: Imputed interest (19,328 ) (19,328 ) Present value of lease liabilities $ 248,574 $ 248,574 Current portion (107,346 ) (107,346 ) Non-current portion $ 141,228 $ 141,228 Finance Leases Total (Unaudited) October 1, 2023 – September 30, 2024 $ 11,024 October 1, 2024 – September 30, 2025 4,020 Total lease payments $ 15,045 Less: Imputed interest (388 ) Present value of lease liabilities $ 14,657 Current portion (10,649 ) Non-current portion $ 4,008 |
Short-Term Loan
Short-Term Loan | 9 Months Ended |
Sep. 30, 2023 | |
Short-Term Loan [Abstract] | |
Short-term Loan | NOTE 12 - Short-term Loan As of September 30, 2023, the outstanding loan balance was $930,521 (NTD 30,000,000) under the loan (Note 1) from Well Thrive Limited (“WTL”) to pay off the previous short-term loan with a non-related party. |
Long-Term Loan
Long-Term Loan | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Loan [Abstract] | |
Long-term Loan | NOTE 13 - Long-term Loan The Company has a car loan credit line of NT$1,500,000 (approximately US$46,526 as of September 30, 2023 and US$48,812 as of December 31, 2022), which matures on May 21, 2024, from a Taiwan financing company with annual interest rate of 9.7%. The installment payment plan is 60 months to pay off the balance on the 21 st Twelve months ending September 30, (Unaudited) 2024 7,854 2025 - Total installment payments 7,854 Less: Imputed interest (278 ) Present value of long-term loan 7,575 Current portion (7,575 ) Non-current portion $ - Year ending December 31, 2023 $ 12,359 2024 5,150 Total installment payments 17,509 Less: Imputed interest (1,211 ) Present value of long-term loan 16,298 Current portion (11,271 ) Non-current portion $ 5,027 |
Convertible Long-Term Bonds Pay
Convertible Long-Term Bonds Payable and Restricted Cash | 9 Months Ended |
Sep. 30, 2023 | |
Convertible Long-Term Bonds Payable and Restricted Cash [Abstract] | |
Convertible Long-term Bonds Payable and Restricted Cash | NOTE 14 - Convertible Long-term Bonds Payable and Restricted Cash On December 3, 2020, the Company closed a private placement offering consisting of US$10,000,000 in aggregate principal amount of its Credit Enhanced Zero Coupon Convertible Bonds (the “Zero Coupon Bonds”) and US$200,000 in aggregate principal amount of its 7.5% convertible bonds (the “Coupon Bonds”), both due on December 2, 2025 (collectively the “Bonds”). Unless previously redeemed, converted or repurchased and cancelled, the Zero-Coupon Bonds will be redeemed on December 2, 2025 at 105.11% of their principal amount and the Coupon Bonds will be redeemed on December 2, 2025 at 100% of their principal amount plus any accrued and unpaid interest. The Coupon Bonds will bear interest from and including December 2, 2020 at the rate of 7.5% per annum. Interest on the Coupon Bonds is payable semi-annually in arrears on June 1 and December 1 each year, commencing on June 1, 2021. The Company has the option to redeem the Bonds at a redemption amount equal to the Early Redemption Amount, as defined in the Offering Memorandum, at any time on or after December 2, 2023 and prior to the Maturity Date, if the Closing Price of the Company’s Common Stock listed on the Euronext Paris for 20 trading days in any period of 30 consecutive trading days, the last day of which occurs not more than fifteen trading days prior to the date on which notice of such redemption is given, is greater than 130% of the Conversion Price on each applicable trading day or (ii) in whole or in part of the Bonds on the second anniversary of the issue date or (iii) where 90% or more in principal amount of the Bonds issued have been redeemed, converted or repurchased and cancelled. Unless previously redeemed, converted or repurchased and cancelled, the Bonds may be converted at any time on or after December 3, 2020 up to November 20, 2025 into shares of Common Stock of the Company with a par value of $0.001 each. The initial conversion price for the Bonds is $13.30 per share and is subject to adjustment in specified circumstances. Holders of the Bonds may also require the Company to repurchase all or part of the Bonds on the third anniversary of the Issue Date, at the Early Redemption Amount. Unless the Bonds have been previously redeemed, converted or repurchased and cancelled, Holders of the Bonds will also have the right to require the Company to repurchase the Bonds for cash at the Early Redemption Amount if an event of delisting or a change of control occurs. Pursuant to the agreements of Bonds, Bank of Panhsin Co., Ltd. (the “BG Bank”) committed to issue a bank guarantee for the benefit of the holders of the Bonds. The Bank Guarantee is intended to provide a source of funds for the principal, premium, interest (if any) and any other payment obligations of the Company which shall include the default interest under the Bonds upon the Company’s failure to pay amounts pursuant to the Indenture or upon the Bonds being declared due and payable on the occurrence of an Event of Default pursuant to this Indenture. In order to obtain the guarantee from BG Bank, the Company entered into a line of credit in the amount of $10,700,000 with BG Bank on December 1, 2020. The line of credit will be expired on December 2, 2025. The annual fee is based on 1% of the line of credit amount and due quarterly. The line of credit is guaranteed by one of the Company’s shareholders with his personal property, and the Company’s time deposit of $3,210,000 (the “Deposit”) at BG Bank is pledged as collateral as of September 30, 2022 and December 31, 2022, and the Deposit was recorded as restricted cash. Management has accounted for the convertible bonds by assuming that they will be repaid and redeemed at maturity; accordingly, the Company has included the redemption premium as part of the accretion tables and calculation of interest and issuance cost to be amortized over the life of the bond. Any value borne from the conversion feature of the bond and or issuance costs related to the origination and distribution of these bonds have been accounted for as debt discounts to be amortized using the effective interest method over the life of the bond. As of September 30, 2023 and December 31, 2022, the long-term bonds payable consisted of the following: September 30, December 31, (Unaudited) Credit Enhanced Zero Coupon Convertible Bonds $ 10,000,000 $ 10,000,000 Coupon Bonds 200,000 200,000 10,200,000 10,200,000 Unamortized loan fee (682,309 ) (1,062,994 ) Net $ 9,517,691 $ 9,137,006 Bond issuance cost was $ 380,684 and $360,089 for the nine months ended September 30, 2023 and 2022, respectively. |
Convertible Long-Term Notes Pay
Convertible Long-Term Notes Payable and Restricted Cash | 9 Months Ended |
Sep. 30, 2023 | |
Convertible Long-term notes Payable and Restricted Cash [Abstract] | |
Convertible Long-term notes Payable and Restricted Cash | NOTE 15 - Convertible Long-term notes Payable and Restricted Cash On December 7, 2022, Aerkomm Inc. (the “Company”) entered into an investment conversion and note purchase agreement (the “Agreement”) with World Praise Limited, a Samoa registered company (“WPL”). Pursuant to the terms of this agreement, (i) a subscription for the common stock of the Company in the amount of $3,175,200 which was entered into between WPL and the Company on June 28, 2022 and funded (the “June Subscription”), (ii) a subscription for the common stock of the Company in the amount of $5,674,000 which was entered into between WPL and the Company on September 15, 2022 and funded (the “September Subscription”), and (iii) a subscription for the capital stock of MEPA Labs, Inc. (“MEPA”), a wholly owned subsidiary of the Company, in the amount of $4,324,000 which was entered into between MEPA and the Company on June 28, 2022 and funded (the “MEPA Subscription,” and together with the June Subscription and the September Subscription, the “WPL Subscriptions”), the WPL Subscriptions in the aggregate totaling $13,173,200, were converted into loans to the Company evidenced by that certain convertible bond of the Company in favor of WPL and dated December 7, 2022 (the “Convertible Bond”) In addition, and as indicated in the Agreement, WPL agreed to lend an additional $10,000,000 to the Company under the Convertible Note (the “New Loan”) and to cap the aggregate amount of loans to the Company under the Convertible Note, including the New Loan, the WPL Subscriptions and any future advances under the Convertible Note, at $30,000,000. The Convertible Note allows for loans to the Company up to an aggregate principal amount of $30,000,000 and acknowledges an aggregate principal amount of $23,173,200 in loans under the Convertible Bond outstanding as of December 31, 2022. The Convertible Note carries an annual interest rate of four percent (4%) which is due and payable, along with the then principal amount outstanding, on the Convertible Note maturity date, December 7, 2024. The Convertible Note is pre-payable in whole or in part at any time without penalty, on five days’ prior written notice to WPL. In the event of a change of control of the Company (as that term is defined in the Convertible Note), the Convertible Note shall become immediately payable in full. The Convertible Note along with accrued interest $751K as of September 30, 2023, is convertible in whole or in part by WPL at any time into shares of common stock of the Company at a conversion price of $6.00 per share. |
Contract Liability
Contract Liability | 9 Months Ended |
Sep. 30, 2023 | |
Contract Liability [Abstract] | |
Contract Liability | NOTE 16 - Contract Liability On March 9, 2015, the Company entered into a 10-year purchase agreement with Klingon Aerospace, Inc. (“Klingon”), which was formerly named as Luxe Electronic Co., Ltd. In accordance with the terms of this agreement, Klingon agreed to purchase from the Company an initial order of onboard equipment comprising an onboard system for a purchase price of $909,000, with payments to be made in accordance with a specific milestones schedule. As of September 30, 2023 and December 31, 2022, the Company received $762,000 from Klingon in milestone payments towards the equipment purchase price. As of September 30, 2023, the project is still ongoing. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 17 - Income Taxes Income tax expense for the three months and nine months periods ended September 30, 2023 and 2022 consisted of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current: Federal $ - $ - $ - $ - State - - 2,400 1,600 Foreign - - - - Total $ - $ - $ 2,400 $ 1,600 The following table presents a reconciliation of the Company’s income tax at statutory tax rate and income tax at effective tax rate for the three months and nine months periods ended September 30, 2023 and 2022. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Tax benefit at statutory rate $ (702,089 ) $ (1,089,179 ) $ (2,409,671 ) $ (2,495,186 ) Net operating loss carryforwards (NOLs) 747,003 1,870,676 2,306,417 3,443,193 Foreign investment losses (gains) (497,670 ) (445,209 ) (341,500 ) (818,077 ) Stock-based compensation expense 139,800 12,500 179,500 214,000 Amortization expense 65,500 24,600 151,200 68,200 Accrued payroll 99,700 (83,400 ) 214,000 72,000 Unrealized exchange losses (gains) 144,156 252,712 (92,846 ) 557,470 Others 3,600 (542,700 ) (4,700 ) (1,040,000 ) Tax expense at effective tax rate $ - $ - $ 2,400 $ 1,600 Deferred tax assets (liability) as of September 30, 2023 and December 31, 2022 consist approximately of: September 30, December 31, (Unaudited) Net operating loss carryforwards (NOLs) $ 14,341,000 $ 10,694,000 Stock-based compensation expense 3,337,000 3,098,000 Accrued expenses and unpaid expense payable 747,000 412,000 Tax credit carryforwards 68,000 68,000 Unrealized exchange losses (gain) 187,000 311,000 Excess of tax amortization over book amortization (285,000 ) (344,000 ) Others 19,000 (97,000 ) Gross 18,414,000 14,142,000 Valuation allowance (18,414,000 ) (14,142,000 ) Net $ - $ - Management does not believe the deferred tax assets will be utilized in the near future; therefore, a full valuation allowance is provided. The net change in deferred tax assets valuation allowance was an increase of approximately $4,272,000 for the nine months ended September 30, 2023. As of September 30, 2023 and December 31, 2022, the Company had federal NOLs of approximately $8,243,000 available to reduce future federal taxable income, expiring in 2037, and additional federal NOLs of approximately $29,116,000 and $28,545,000, respectively, were generated and will be carried forward indefinitely to reduce future federal taxable income. As of September 30, 2023 and December 31, 2022, the Company had State NOLs of approximately $44,422,000 and $37,662,000 respectively, available to reduce future state taxable income, expiring in 2042. As of September 30, 2023 and December 31, 2022, the Company has Japan NOLs of approximately $251,000 and $326,000, respectively, available to reduce future Japan taxable income, expiring in 2031. As of September 30, 2023 and December 31, 2022, the Company has Taiwan NOLs of approximately $5,564,000 and $3,452,000, respectively, available to reduce future Taiwan taxable income, expiring in 2031. As of September 30, 2023 and December 31, 2022, the Company had approximately $37,000 and $37,000 of federal research and development tax credit, available to offset future federal income tax. The credit begins to expire in 2034 if not utilized. As of September 30, 2023 and December 31, 2022, the Company had approximately $39,000 and $39,000 of California state research and development tax credit available to offset future California state income tax. The credit can be carried forward indefinitely. The Company’s ability to utilize its federal and state NOLs to offset future income taxes is subject to restrictions resulting from its prior change in ownership as defined by Internal Revenue Code Section 382. The Company does not expect to incur the limitation on NOLs utilization in future annual usage. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2023 | |
Capital Stock [Abstract] | |
Capital Stock | NOTE 18 - Capital Stock 1) Preferred Stock: The Company is authorized to issue 50,000,000 shares of preferred stock, with par value of $0.001. As of September 30, 2023 and December 31, 2022, there were no 2) Common Stock: The Company is authorized to issue 90,000,000 shares of common stock as of September 30, 2023 and December 31, 2022. September 30, December 31, (Unaudited) Restricted stock - vested 1,802,373 1,802,373 Restricted stock - unvested 149,162 149,162 Total restricted stock 1,951,535 1,951,535 The unvested shares of restricted stock were recorded under a deposit liability account awaiting future conversion to common stock when they become vested. On June 16, 2022, the Company issued 4,114 shares of common stock to Bevilaqua PLLC for the legal services rendered. On September 28, 2023, the Company issued 7,000,448 shares of common stock to Kevin Wong to acquire Mixnet Technology Limited and its subsidiary (Mixnet). 3) Stock Warrant: On October 31, 2021, following approval by the Board of Directors, the Company issued a warrant to Mr. Sheng-Chun Chang for the purchase of up to 751,879 shares of the Company’s common stock, exercisable at a price of $2.60 per share, the closing price of the common stock on the OTC Markets, Inc. QX tier on October 21, 2021. The issuance of the warrant is (i) in recognition of Mr. Chang’s support of the Company through his previous personal guarantee of the Company’s $10,000,000 line of credit with the Panhsin Bank (the “Bank”) in relation to the private placement offering of $10,000,000 credit enhanced zero coupon convertible bonds and (ii) in exchange for Mr. Chang’s agreement to renew his guarantee with the Bank for so long as the guarantee would be required by the Bank. The warrant will vest 20% on issuance. On each anniversary of the issue date, beginning with December 3, 2021 and ending with December 3, 2025, the warrant will vest with respect to 20% of the number of shares of the Company’s common stock issuable upon conversion of the principal amount of the credit enhanced bonds still required to be guaranteed by the Panhsin Bank. For the years ended December 31, 2022, the Company recorded an increase of $1,252,029 in additional paid-in capital as adjustment for the issuance costs of these stock warrants. |
Significant Related Party Trans
Significant Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Significant Related Party Transactions [Abstract] | |
Significant Related Party Transactions | NOTE 19 - Significant Related Party Transactions In addition to the information disclosed in other notes, the Company has significant related party transactions as follows: A. Name of related parties and relationships with the Company: Related Party Relationship Well Thrive Limited (“WTL”) Major stockholder Ejectt Inc. (“Ejectt”) Stockholder; Albert Hsu, a Director of Aerkomm, is the Chairman STAR JEC INC. (“StarJec”) Stockholder; Albert Hsu, a Director of Aerkomm, is the Chairman AA Twin Associates Ltd. (“AATWIN”) Georges Caldironi, COO of Aerkomm, is sole owner EESquare Japan (“EESquare JP”) Yih Lieh (Giretsu) Shih, President Aircom Japan, is the Director Kevin Wong Stockholder of Mixnet B. Significant related party transactions: The Company has extensive transactions with its related parties. It is possible that the terms of these transactions are not the same as those which would result from transactions among wholly unrelated parties. a. As of September 30, 2023 and December 31, 2022: September 30, December 31, (Unaudited) Other receivable from: EESquare JP 1 $ 91,682 $ 11,380 StarJec 2 - 282,073 Ejectt 3 16,081 - WTL 4 1,295,884 - Others 7 36,721 15,092 Total $ 1,440,368 $ 308,545 Rent deposit to Ejectt 3 $ 1,303 $ 1,367 Loan from WTL 4 $ 930,521 $ 337,357 Loan from Kevin Wong 6 76,201 - Total $ 1,006,722 $ 337,357 Prepayment from Ejectt 3 $ 2,163,034 $ 1,258,786 Other payable to: AATWIN 5 $ 35,047 $ 35,047 Interest payable to WTL 4 56,056 58,810 StarJec 2 136,920 - Others 7 656,359 246,610 Total $ 884,382 $ 340,467 1. Aircom Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2019 and March 4, 2023 and extended another 2 years to March 4, 2025. Pursuant to the terms of this lease agreement, EESquare JP pays Aircom Japan a rental fee of approximately $724 per month in 2023 Q3. This amount represents outstanding balance receivable from EESquare JP as of September 30, 2023. 2. Aircom Japan entered into a housing service order on December 14, 2021 and a satellite service order on January 22, 2022 for one year period till January 21, 2023. On June 20, 2022, Aircom Japan also entered a teleport service order with StarJec for a half year period from June 1, 2022 to January 14, 2023. The amount represents receivable from StarJec for monthly service provided due to the service agreements. The monthly service charges is approximately ¥6,820,000 (approximately $51,800 as of December 31,2022). Other payable represents deposit should be returned to Ejectt after service contracts ended as of September 30, 2023. 3. Represents prepayment paid by Ejectt to provide design and installation service in cabin with Aerkomm for $361,910. Aircom Telecom also entered into 2 sales agreements with Ejectt for 6 sets of antennas with prepayment of $1,180,777. As of June 17, 2023, Aerkomm Taiwan entered into MOU with Ejectt to appoints Ejectt as its exclusive represent agency in Taiwan with NTD 20,000,000 security deposit (approximately $620,347 as of September 30, 2023). 4. The Company has loans from WTL due to operational needs under the Loans (Note 1). As of September 30, 2023, the Company has interest payable balance of $56,056 (approximately NTD 1,807,000) for past Loan and new loan of $930,521 (NTD 30,000,000). The Company also lended $1,295,884 as of September 30, 2023. 5. Represents payable to AATWIN due to consulting agreement on January 1, 2019. The monthly consulting fee is €15,120 (approximately $17,000) and was expired on December 31, 2021. 6. Represents long-term loan that Mixnet borrowed from its stockholder for business operating needs for $76,201 (approximately NTD 2,460,000). 7. Represents receivable/payable from/to employees as a result of regular operating activities. b. For the three months and nine months periods ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Purchase from Ejectt 1 $ - $ - $ 446,367 $ - Service income from Ejectt 1 66,093 - 98,395 - Service income from Star Jec 2 - 2,855 2,805 6,073 Interest expense charged by WTL 3 - - - 10,155 Rental income from EESqaure JP 4 2,173 2,149 6,519 7,023 Other income from WTL 3 10,865 - 10,865 - Other income from Others 5 2,158 - 3,977 - 1. Represents 2 sets of antennas sold to Ejectt on January 30, 2023 and service income charged to Ejectt for consultant service provided in Q3, 2023 per the exclusive agent agreement signed as of June 17, 2023. 2. On December 14, 2021, Aerkomm Japan and Star Jet, a Taiwan limited liability company, signed a Housing Service Order. Further on January 22, 2022, Aerkomm Japan and Star Jet signed a Satellite Service Order. Under the two orders, Aerkomm Japan agreed to provide satellite services and housing services to Star Jec. 3. The Company has loans from WTL due to operational needs under the Loans (Note 1). As of June 30, 2022, the Company had interest expense accrued $10,184 (approximately NTD 292,576) from WTL under the loans. Aerkomm Japan has other income of $10,865, other product sale to WTL, in August 2023 in associated with selling antenna. 4. Aircom Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2021 and March 4, 2023 and extended another 2 years to March 4, 2025. Pursuant to the terms of this lease agreement, EESquare JP pays Aircom Japan a rental fee of approximately $724 per month in 2023 Q3. 5. Represents other income from employees as a result of regular operating activities. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | NOTE 20 - Stock Based Compensation In March 2014, Aircom’s Board of Directors adopted the 2014 Stock Option Plan (the “Aircom 2014 Plan”). The Aircom 2014 Plan provided for the granting of incentive stock options and non-statutory stock options to employees, consultants and outside directors of Aircom. On February 13, 2017, pursuant to the Exchange Agreement, Aerkomm assumed the options of Aircom 2014 Plan and agreed to issue options for an aggregate of 1,088,882 shares to Aircom’s stock option holders. One-third of stock option shares will be vested as of the first anniversary of the time the option shares are granted or the employee’s acceptance to serve the Company, and 1/36th of the shares will be vested each month thereafter. Option price is determined by the Board of Directors. The Aircom 2014 Plan became effective upon its adoption by the Board and shall continue in effect for a term of 10 years unless sooner terminated under the terms of Aircom 2014 Plan. On May 5, 2017, the Board of Directors of Aerkomm adopted the Aerkomm Inc. 2017 Equity Incentive Plan (the “Aerkomm 2017 Plan” and together with the Aircom 2014 Plan, the “Plans”) and the reservation of 1,000,000 shares of common stock for issuance under the Aerkomm 2017 Plan. The Aerkomm 2017 Plan has been adopted by the Board and shall continue in effect for a term of 10 years unless sooner terminated under the terms. On June 23, 2017, the Board of Directors voted to increase the number of shares of common stock reserved for issuance under the Aerkomm 2017 Plan to 2,000,000 shares. The Aerkomm 2017 Plan provides for the granting of incentive stock options and non-statutory stock options to employees, consultants and outside directors of the Company, as determined by the Compensation Committee of the Board of Directors (or, prior to the establishment of the Compensation Committee on January 23, 2018, the Board of Directors). The Aerkomm 2017 Plan was approved by the Company’s stockholders on March 28, 2018. On October 21, 2021, the Board of Directors voted to increase the number of shares of common stock reserved for issuance under the Aerkomm 2017 Plan to 2,400,000 shares. On June 23, 2017, the Board of Directors agreed to issue options for an aggregate of 291,000 shares under the Aerkomm 2017 Plan to certain officers and directors of the Company. The option agreements are classified into three types of vesting schedule, which includes, 1) 1/6 of the shares subject to the option shall be vested commencing on the vesting start date and the remaining shares shall be vested at the rate of 1/60 for the next 60 months on the same day of the month as the vesting start date; 2) 1/4 of the shares subject to the option shall be vested commencing on the vesting start date and the remaining shares shall be vested at the rate of 1/36 for the next 36 months on the same day of the month as the vesting start date; 3) 1/3 of the shares subject to the option shall be vested commencing on the first anniversary of vesting start date and the remaining shares shall vest at the rate of 50% each year for the next two years on the same day of the month as the vesting start date. On July 31, 2017, the Board of Directors approved to issue options for an aggregate of 109,000 shares under the Aerkomm 2017 Plan to 11 of its employees. 1/3 of these shares subject to the option shall vest commencing on the first anniversary of vesting start date and the remaining shares shall vest at the rate of 50% each year for the next two years on the same day of the month as the vesting start date. On December 29, 2017, the Board of Directors approved to issue options for an aggregate of 12,000 shares under the Aerkomm 2017 Plan to three of the Company’s independent directors, 4,000 shares each. All of these options were vested immediately upon issuance. On June 19, 2018, the Compensation Committee approved to issue options for 32,000 and 30,000 shares under the Aerkomm 2017 Plan to two of the Company executives. One-fourth of the 32,000 shares subject to the option shall vest on May 1, 2019, 2020, 2021 and 2022, respectively. One-third of the 30,000 shares subject to the option shall vest on May 29, 2019, 2020 and 2021, respectively. On September 16, 2018, the Compensation Committee approved to issue options for 4,000 shares under the Aerkomm 2017 Plan to one of the Company’s independent directors. These options shall be vested immediately. On December 29, 2018, the Compensation Committee approved to issue options for an aggregate of 12,000 shares under the Aerkomm 2017 Plan to three of the Company’s independent directors, 4,000 shares each. All of these options were vested immediately upon issuance. On July 2, 2019, the Board of Directors approved the grant of options to purchase an aggregate of 339,000 shares under the Aerkomm 2017 Plan to 22 of its directors, officers and employees. 25% of the shares vested on the grant date, 25% of the shares vested on July 17, 2019, 25% of the shares shall be vested on the first anniversary of the grant date, and 25% of the shares will vest upon the second anniversary of the grant date. On October 4, 2019, the Board of Directors approved the grant of options to purchase an aggregate of 85,400 shares under the Aerkomm 2017 Plan to three (3) of its employees. 25% of the shares are vested on the grant date, and 25% of the shares shall be vested on each of October 4, 2020, October 4, 2021 and October 4, 2022, respectively. On December 29, 2019, the Board of Directors approved to issue options for an aggregate of 12,000 shares under the Aerkomm 2017 Plan to three of the Company’s independent directors, 4,000 shares each. All of these options shall be vested at the date of 1/12th each month for the next 12 months on the same day of December 2019. On February 19, 2020, the Board of Directors approved to issue options for 2,000 shares under the Aerkomm 2017 Plan to one of the Company’s consultants for service provided in 2019. These options shall be vested immediately. On September 17, 2020, the Board of Directors approved to issue options for 4,000 shares under the Aerkomm 2017 Plan to one of the Company’s independent directors. These options shall be vested at the date of 1/12th each month for the next 12 months on the same day of September 2020. On December 11, 2020, the Board of Directors approved the grant of options to purchase an aggregate of 284,997 shares under the Aerkomm 2017 Plan to 37 of its directors, officers, employees and consultants. Shares shall be vested in full on the earlier of the filing date of the Company’s Form 10-K for the year ended December 31, 2020 or March 31, 2021. On January 23, 2021, the Board of Directors approved to issue options for an aggregate of 12,000 shares under the Aerkomm 2017 Plan to three of the Company’s independent directors, 4,000 shares each. All of these options shall vest 1/12th each month for the next 12 months at the end of each month up to December 2021. On January 23, 2021, the Board of Directors approved to issue options for 2,000 shares under the Aerkomm 2017 Plan to one of the Company’s consultants for service provided in 2020. These options vested immediately. On September 1, 2021, the Board of Directors approved to issue options for 18,750 shares under the Aerkomm 2017 Plan to one of the Company’s officers. These options shall be vested immediately. On September 17, 2021, the Board of Directors approved to issue options for 4,000 shares under the Aerkomm 2017 Plan to one of the Company’s independent directors. These options shall be vested at the rate of 1/12th each month for the next 12 months on the same day of September 2021. On October 21, 2021, the Board of Directors approved to issue options for 150,000 shares under the Aerkomm 2017 Plan to one of the Company’s officers. These options shall be vested immediately. On December 1, 2021, the Board of Directors approved to issue options for 18,750 shares under the Aerkomm 2017 Plan to one of the Company’s officers. These options shall be vested immediately. On December 29, 2021, the Board of Directors approved to issue options for an aggregate of 8,000 shares under the Aerkomm 2017 Plan to two of the Company’s independent directors, 4,000 shares each. All of these options shall be vested at the date of 1/12th each month for the next 12 months on the same day of December 2021. On December 31, 2021, the Board of Directors approved to issue options for 2,000 shares under the Aerkomm 2017 Plan to one of the Company’s consultants for service provided in 2020. These options vested immediately. On March 1, 2022, the Board of Directors approved to issue options for 18,750 shares under the Aerkomm 2017 Plan to one of the Company’s officers. These options shall be vested immediately. On June 1, 2022, the Board of Directors approved to issue options for 18,750 and 75,000 shares under the Aerkomm 2017 Plan to two of the Company’s officers, respectfully. These options shall be vested immediately. On September 1, 2022, the Board of Directors approved to issue options for 18,750 shares under the Aerkomm 2017 Plan to one of the Company’s officers. These options shall be vested immediately. On September 17, 2022, the Board of Directors approved to issue options for 4,000 shares under the Aerkomm 2017 Plan to one of the Company’s independent directors. These options shall be vested at the rate of 1/12th each month for the next 12 months on the same day of September 2022. On December 1, 2022, the Board of Directors approved to issue options for 18,750 shares under the Aerkomm 2017 Plan to one of the Company’s officers. These options shall be vested immediately. On December 29, 2022, the Board of Directors approved to issue options for an aggregate of 8,000 shares under the Aerkomm 2017 Plan to two of the Company’s independent directors, 4,000 shares each. All of these options shall be vested at the date of 1/12th each month for the next 12 months on the same day of December 2022. On March 1, 2023, the Board of Directors approved to issue options for 18,750 shares under the Aerkomm 2017 Plan to one of the Company’s officers. These options shall be vested immediately. On May 5, 2023, the Board of Directors approved to issue options for 786,356 shares under the Aerkomm 2017 Plan to eight company’s employees. These options shall be vested on an annually basis for the next 4 years. On May 5, 2023, the Board of Directors of Aerkomm adopted the Aerkomm Inc. 2023 Equity Incentive Plan (the “Aerkomm 2023 Plan” and together with the Aerkomm 2017 Plan, and Aircom 2014 Plan, the “Plans”) and the reservation of 3,683,929 shares of common stock for issuance under the Aerkomm 2023 Plan. The Aerkomm 2023 Plan has been adopted by the Board and shall continue in effect for a term of 10 years unless sooner terminated under the terms. On June 1, 2023, the Board of Directors approved to issue options for 18,750 shares under the Aerkomm 2023 Plan to one of the Company’s officers. These options shall be vested immediately. On June 13, 2023, the Board of Directors agreed to issue options for an aggregate 3,627,679 shares under the Aerkomm 2023 Plan to certain company’s employees. The shares subject to the option shall be vested commencing on the vesting start date and the remaining shares shall be vested at the rate of 1/48 for the next 48 months on the same day of the month as the vesting start date. On September 1, 2023, the Board of Directors approved to issue options for 18,750 shares under the Aerkomm 2023 Plan to one of the Company’s officers. These options shall be vested immediately. Valuation and Expense Information Measurement and recognition of compensation expense based on estimated fair values is required for all share-based payment awards made to its employees and directors including employee stock options. The Company recognized compensation expense of $854,739 and $959,340 for the nine months periods ended September 30, 2023 and 2022, respectively, related to such employee stock options. Determining Fair Value Valuation and amortization method The Company uses the Black-Scholes option-pricing-model to estimate the fair value of stock options granted on the date of grant or modification and amortizes the fair value of stock-based compensation at the date of grant on a straight-line basis for recognizing stock compensation expense over the vesting period of the option. Expected term The expected term is the period of time that granted options are expected to be outstanding. The Company uses the SEC’s simplified method for determining the option expected term based on the Company’s historical data to estimate employee termination and options exercised. Expected dividends The Company does not plan to pay cash dividends before the options are expired. Therefore, the expected dividend yield used in the Black-Scholes option valuation model is zero. Expected volatility Since the Company has no historical volatility, it used the calculated value method which substitutes the historical volatility of a public company in the same industry to estimate the expected volatility of the Company’s share price to measure the fair value of options granted under the Plans. Risk-free interest rate The Company based the risk-free interest rate used in the Black-Scholes option valuation model on the market yield in effect at the time of option grant provided in the Federal Reserve Board’s Statistical Releases and historical publications on the Treasury constant maturities rates for the equivalent remaining terms for the Plans. Forfeitures The Company is required to estimate forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate option forfeitures and records share-based compensation expense only for those awards that are expected to vest. The Company used the following assumptions to estimate the fair value of options granted in nine months period ended September 30, 2023 and year ended December 31, 2022 under the Plans as follows: Assumptions Expected term 5-10 years Expected volatility 45.79% - 72.81 % Expected dividends 0 % Risk-free interest rate 0.69% - 2.99 % Forfeiture rate 0% - 5 % Aircom 2014 Plan Activities related to options for the Aircom 2014 Plan for the nine months ended September 30, 2023 and the year ended December 31, 2022 are as follows: Number of Weighted Weighted Options outstanding at January 1, 2022 111,871 $ 3.3521 $ 1.0539 Granted - - - Exercised - - - Forfeited/Cancelled - - - Options outstanding at December 31, 2022 111,871 3.3521 1.0539 Granted - - - Exercised - - - Forfeited/Cancelled - - - Options outstanding at September 30, 2023 (unaudited) 111,871 3.3521 1.0539 There are no unvested stock awards under Aircom 2014 Plan for the nine months period ended September 30, 2023 and the year ended December 31, 2022. Of the shares covered by options outstanding as of September 30, 2023, 111,871 are now exercisable. Information related to stock options outstanding and exercisable at September 30, 2023, is as follows: Options Outstanding (Unaudited) Options Exercisable (Unaudited) Range of Shares Weighted Weighted Shares Weighted Weighted $ 3.3521 111,871 2.75 3.3521 111,871 2.75 3.3521 As of September 30, 2023, there was no unrecognized stock-based compensation expense for the Aircom 2014 Plan. No option was exercised during the nine months periods ended September 30, 2023 and 2022. Aerkomm 2017 Plan Activities related to options outstanding under Aerkomm 2017 Plan for the nine months ended September 30, 2023 and the year ended December 31, 2022 are as follows: Number of Weighted Weighted Options outstanding at January 1, 2022 1,207,897 11.2537 7.5309 Granted 162,000 8.1566 6.3320 Exercised - - - Forfeited/Cancelled (90,209 ) 11.9003 8.3775 Options outstanding at December 31, 2022 1,279,688 10.8161 7.3194 Granted 805,103 2.5605 1.9779 Exercised - - - Forfeited/Cancelled - - - Options outstanding at September 30, 2023 (unaudited) 2,084,791 7.6279 5.2566 Activities related to unvested stock awards under Aerkomm 2017 Plan for the nine months period ended September 30, 2023 and the year ended December 31, 2022 are as follows: Number of Weighted Options unvested at January 1, 2022 40,194 8.9422 Granted 162,000 6.3320 Vested (183,194 ) 6.7206 Forfeited/Cancelled (8,000 ) 14.4305 Options unvested at December 31, 2022 11,000 3.5070 Granted 805,103 1.9779 Vested (95,279 ) 2.2208 Forfeited/Cancelled - - Options unvested at September 30, 2023 (unaudited) 720,824 1.9691 Of the shares covered by options outstanding under the Aerkomm 2017 Plan as of September 30, 2023, 1,363,967 are now exercisable; 720,824 shares will be exercisable for the twelve-month period ending September 30, 2024. Information related to stock options outstanding and exercisable at September 30, 2023, is as follows: Options Outstanding (Unaudited) Options Exercisable (Unaudited) Range of Shares Weighted Weighted Shares Weighted Weighted $ 2.55 – 4.30 1,310,353 8.52 $ 3.0799 589,529 7.20 $ 3.7279 6.00 – 10.00 419,288 7.61 8.3356 419,288 7.61 8.3356 11.00 – 14.20 126,150 6.50 11.4688 126,150 6.50 11.4688 20.50 – 27.50 109,000 4.03 25.4982 109,000 4.03 25.4982 30.00 – 35.00 120,000 3.80 34.5479 120,000 3.80 34.5479 2,084,791 7.6279 1,363,967 10.3115 As of September 30, 2023, total unrecognized stock-based compensation expense related to stock options was approximately $1,346,000, which is expected to be recognized on a straight-line basis over a weighted average period of approximately 3.60 year. No option was exercised during the nine months period ended September 30, 2023 and the year ended December 31, 2022. Aerkomm 2023 Plan Activities related to options outstanding under Aerkomm 2023 Plan for the nine months ended September 30, 2023 is as follows: Number of Weighted Weighted Options outstanding at December 31, 2022 - - - Granted 3,665,179 2.5915 2.0099 Exercised - - - Forfeited/Cancelled - - - Options outstanding at September 30, 2023 (unaudited) 3,665,179 2.5915 2.0099 Activities related to unvested stock awards under Aerkomm 2017 Plan for the nine months period ended September 30, 2023 is as follows: Number of Weighted Options unvested at December 31, 2022 - - Granted 3,665,179 2.0099 Vested (264,230 ) 2.0247 Forfeited/Cancelled - - Options unvested at September 30, 2023 (unaudited) 3,400,949 2.0087 Of the shares covered by options outstanding as of September 30, 2023, 264,230 shares are now exercisable. Information related to stock options outstanding and exercisable at September 30, 2023, is as follows: Options Outstanding (Unaudited) Options Exercisable (Unaudited) Range of Shares Weighted Weighted Shares Weighted Weighted $ 2.58-2.89 3,665,179 9.70 2.5915 264,230 9.72 2.6106 As of September 30, 2023, total unrecognized stock-based compensation expense related to stock options was approximately $6,490,000, which is expected to be recognized on a straight-line basis over a weighted average period of approximately 3.70 year. No option was exercised during the nine months period ended September 30, 2023. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Commitments [Abstract] | |
Commitments | NOTE 21 - Commitments As of September 30, 2023, the Company’s significant commitment is summarized as follows: Airbus SAS Agreement Airbus Interior Service Agreement : Hong Kong Airlines Agreement Vietjet Air: On October 25, 2021, the Company signed an agreement with Vietjet Air (“Vietjet”) to provide them with our Aerkomm AirCinema In-Flight Entertainment and Connectivity (“IFEC”) solutions. Under the terms of the agreement, the Company will provide to Vietjet our Aerkomm AirCinema Cube IFEC system for installation on Vietjet’s fleet of Airbus A320, A321 and Airbus A330-300 aircraft. Republic Engineers Complaint Shenzhen Yihe: US trademark Equity Contract: The Buyer, dMobile System Co., Ltd., is owned by Sheng-Chun Chang, a more than 10% equity owner of the Company. The purpose of this transaction was to have Aerkomm Taiwan become a qualified company to apply for a telecommunication license in Taiwan. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 22 - Subsequent Events On December 5th, 2023, the Company signed a non-binding Letter of Intent with a US-listed SPAC, a publicly traded special purpose acquisition company, regarding a business combination which would see AERKOMM transitioning its listing to a major US stock market exchange. Based on the agreement, a business combination between the Company and the SPAC pursuant to which the SPAC would acquire 100% of the outstanding equity and equity equivalents of the Company or all of the Company’s business, in exchange for the a number of shares of capital stock of the SPAC based on a total pre-money enterprise value of the Company of US $300 million to US $400 million, inclusive of US $150 million to US $200 million of contingent value, also in stock, tied to earn-out provisions. The non-binding Letter of Intent contemplates a pre-closing private placement (PIPE) by the Company in order that the Company raise sufficient capital to be able to fund the operations and development of the post-closing company for a period of 12 months following the closing. On December 21, 2023, the Company received the amount of $5,004,000 in its Panshin Bank account from two separate investors under a Common Stock Subscription Agreement. The Company will be using the funds for operational matters. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet as of September 30, 2023, and the condensed consolidated statements of operations and comprehensive loss and cash flows for the nine months ended September 30, 2023 and 2022 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position as of September 30, 2023 and the results of operations and cash flows for the nine months ended September 30, 2023 and 2022. The financial data and other information disclosed in these notes to the condensed consolidated financial statements related to these nine months periods are unaudited. The results of operations for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period or other future year. |
Principle of Consolidation | Principle of Consolidation Aerkomm consolidates the accounts of its subsidiaries, Mixnet, Mesh, MEPA, Aircom, Aircom Seychelles, Aircom HK, Aircom Japan, Aircom Taiwan, Aerkomm Taiwan, Beijing Yatai and Aerkomm Malta. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications of Prior Year Presentation | Reclassifications of Prior Year Presentation Certain prior year balance sheet, and cash flow statement amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash in banks. As of September 30, 2023 and December 31, 2022, the total balance of cash in bank exceeding the amount insured by the Federal Deposit Insurance Corporation (FDIC) for the Company was approximately $0 and $6,153,000, respectively. The balance of cash deposited in foreign financial institutions exceeding the amount insured by local insurance is approximately $3,153,000 and $3,134,000 as of September 30, 2023 and December 31, 2022, respectively. The Company performs ongoing credit evaluation of its customers and requires no collateral. An allowance for doubtful accounts is provided based on a review of the collectability of accounts receivable. The Company determines the amount of allowance for doubtful accounts by examining its historical collection experience and current trends in the credit quality of its customers as well as its internal credit policies. Actual credit losses may differ from management’s estimates. |
Investment in Equity Securities | Investment in Equity Securities According to FASB issued Accounting Standards Updates 2016-01 (ASU 2016-01), it requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value being recorded in current period earnings, impacting the net income. For the investments in equity securities without readily determinable fair values, the investments may be recorded at cost, subject to impairment, and adjusted through net income for observable price changes. Holdings of marketable equity securities with no significant influence over the investee are accounted for using cost method. Marketable equity security costs are initially recognized at fair value plus transaction costs which are directly attributable to the acquisition. The cost of the securities sold is based on the weighted average cost method. Stock dividends from the investment are included to recalculate the cost basis of the investment based on the total number of shares. |
Accounts receivable | Accounts receivable The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires the Company to estimate all expected credit losses for financial assets measured at amortized cost basis, including trade receivables, based on historical experience, current market conditions and supportable forecasts. The Company’s accounts receivable are carried at the amounts invoiced to customer. The risk of credit loss is mitigated by the Company’s credit evaluation process. Receivables are presented as net of an allowance for credit losses. Allowances for expected credit losses are determined based on an assessment of historical experience, the current economic conditions, future expectations of economic conditions, future expectation regarding customer solvency, and other collection factors. The Company will apply adjustments for specific factors and current economic conditions as needed at each reporting date. As of September 30, 2023 and December 31, 2022, the Company had $0 Account Receivable. Therefore, allowances for expected credit losses were $0 as of September 30, 2023 and December 31, 2022. |
Inventories | Inventories Inventories are recorded at the lower of weighted-average cost or net realizable value. The Company assesses the impact of changing technology on its inventory on hand and writes off inventories that are considered obsolete. Estimated losses on scrap and slow-moving items are recognized in the write down cost for losses. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. When value impairment is determined, the related assets are stated at the lower of fair value or book value. Significant additions, renewals and betterments are capitalized. Maintenance and repairs are expensed as incurred. Depreciation is computed by using the straight-line and double declining methods over the following estimated service lives: ground station equipment – 5 years, computer equipment - 3 to 5 years, furniture and fixtures - 5 years, satellite equipment – 5 years, vehicles – 5 to 6 years and lease improvement – 5 years or remaining lease term, whichever is shorter. Upon sale or disposal of property and equipment, the related cost and accumulated depreciation are removed from the corresponding accounts, with any gain or loss credited or charged to income in the period of sale or disposal. The Company reviews the carrying amount of property and equipment for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. It determined that there was no impairment loss for the years ended September 30, 2023 and December 31, 2022. |
Right-of-Use Asset and Lease Liability | Right-of-Use Asset and Lease Liability In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842) (“ASU 2016-02”), which modifies lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases and finance leases under previous accounting standards and disclosing key information about leasing arrangements. A lessee should recognize the lease liability to make lease payments and the right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases and finance leases, a right-of-use asset and a lease liability are initially measured at the present value of the lease payments by discount rates. The Company’s lease discount rates are generally based on its incremental borrowing rate, as the discount rates implicit in the Company’s leases is readily determinable. Operating leases are included in operating lease right-of-use assets and lease liabilities in the consolidated balance sheets. Finance leases are included in property and equipment and lease liability in our consolidated balance sheets. Lease expense for operating expense payments is recognized on a straight-line basis over the lease term. Interest and amortization expenses are recognized for finance leases on a straight-line basis over the lease term. For the leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets The Company’s goodwill represents the amount by which the total purchase price paid exceeded the estimated fair value of net assets acquired from acquisition of subsidiaries. The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate that there may be impairment. Purchased intangible assets with finite life are amortized on the straight-line basis over the estimated useful lives of respective assets. Purchased intangible assets with indefinite life are evaluated for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Purchased intangible asset consists of satellite system software and is amortized over 10 years. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company utilizes the three-level valuation hierarchy for the recognition and disclosure of fair value measurements. The categorization of assets and liabilities within this hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy consist of the following: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active or inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. Level 3 - Inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of inputs market participants could use in pricing the asset or liability at the measurement date, including assumptions. The carrying amounts of the Company’s cash and restricted cash, short-term investment, accounts receivable, inventory, prepaid expenses, other receivable, accounts payable, short-term loan, accrued expenses, and other payable approximated their fair value due to the short-term nature of these financial instruments. The Company’s long-term bonds payable, long-term notes payable, long-term loan and lease payable approximated the carrying amount as its interest rate is considered as approximate to the current rate for comparable loans and leases, respectively. There were no outstanding derivative financial instruments as of September 30, 2023 and December 31, 2022. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs upon the transfer of control in accordance with the contractual terms and conditions of the sale. The Company’s revenue for the year ended December 31, 2021 composed of the sales of ground antenna units to a related party and sales of network hardware to a non-related party. The majority of the Company’s revenue is recognized at a point in time when product is shipped, or service is provided to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, which includes estimates for variable consideration. The Company adopted the provisions of ASU 2014-09 Revenue from Contracts with Customers (Topic 606) and the principal versus agent guidance within the new revenue standard. As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenue when (or as) the Company satisfies a performance obligation. Customers may make payments to the Company either in advance or in arrears. If payment is made in advance, the Company will recognize a contract liability under prepayments from customers until which point the Company has satisfied the requisite performance obligations to recognize revenue. |
Stock-based Compensation | Stock-based Compensation The Company adopted the modified prospective method to measure stock-based compensation expense. Under the modified prospective method, stock-based compensation expense recognized during the period is based on the portion of the share-based payment awards granted after the effective date and ultimately expected to vest during the period. Stock-based compensation expense recognized in the Company’s statement of income is based on the vesting terms and the estimated fair value of the award at grant date. As stock-based compensation expense recognized in the statement of income is based on awards ultimately expected to vest, it is reduced for estimated forfeiture. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses the Black-Scholes option pricing model in its determination of fair value of share-based payment awards on the date of grant. Such option pricing model is affected by assumptions based on a number of highly complex and subjective variables. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. Adjustments to prior period’s income tax liabilities are added to or deducted from the current period’s tax provision. The Company follows FASB guidance on uncertain tax positions and has analyzed its filing positions in all the federal, state and foreign jurisdictions where it is required to file income tax returns, as well as all open tax years in those jurisdictions. The Company files income tax returns in the US federal, state and foreign jurisdictions where it conducts business. It is not subject to income tax examinations by US federal, state and local tax authorities for years before 2018. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on its consolidated financial position, results of operations, or cash flows. Therefore, no reserves for uncertain tax positions have been recorded. The Company does not expect its unrecognized tax benefits to change significantly over the next twelve months. The Company’s policy for recording interest and penalties associated with any uncertain tax positions is to record such items as a component of income before taxes. Penalties and interest paid or received, if any, are recorded as part of other operating expenses in the consolidated statement of operations. |
Foreign Currency Transactions | Foreign Currency Transactions Foreign currency transactions are recorded in U.S. dollars at the exchange rates in effect when the transactions occur. Exchange gains or losses derived from foreign currency transactions or monetary assets and liabilities denominated in foreign currencies are recognized in current income. At the end of each period, assets and liabilities denominated in foreign currencies are revalued at the prevailing exchange rates with the resulting gains or losses recognized in income for the period. |
Translation Adjustments | Translation Adjustments If a foreign subsidiary’s functional currency is the local currency, translation adjustments will result from the process of translating the subsidiary’s financial statements into the reporting currency of the Company. Such adjustments are accumulated and reported under other comprehensive loss as a separate component of stockholders’ equity. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include stock warrants and outstanding stock options, shares to be purchased by employees under the Company’s employee stock purchase plan. The Company had 6,463,400 and 1,943,618 common stock equivalents, primarily stock options and warrants, for the year ended September 30, 2023 and 2022, respectively. For the fiscal years ended September 30, 2023 and 2022, the assumed exercise of the Company’s common stock equivalents were not included in the calculation as the effect would be anti-dilutive. |
Short-Term Investment (Tables)
Short-Term Investment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Short-Term Investment [Abstract] | |
Schedule of Fair Value of the Investment | As of September 30, 2023 and December 31, 2022, the fair value of the investment was as follows: September 30, December 31, (Unaudited) Investment – Ejectt – short-term $ 2,514,919 $ 850,182 Investment - Liquidity 13,831 20,104 Prepaid investment 1,085,608 1,138,952 Total Investment 3,614,358 2,009,238 Appreciation in market value - Ejectt (1,917,318 ) (223,216 ) Investment cost – Ejectt – short-term 597,601 626,966 Investment cost - Liquidity 13,831 20,104 Prepaid investment 1,085,608 1,138,952 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstract] | |
Schedule of Inventories | As of September 30, 2023 and December 31, 2022, inventories consisted of the following: September 30, December 31, (Unaudited) Satellite equipment for sale under construction $ 1,366,282 $ 1,366,282 |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses [Abstract] | |
Schedule of Prepaid Expenses | As of September 30, 2023 and December 31, 2022, prepaid expenses consisted of the following: September 30, December 31, (Unaudited) Prepaid engineering expense $ 9,486,067 $ 7,536,409 Prepaid professional expense 105,786 79,954 Others 2,641,850 410,090 Total $ 12,233,703 $ 8,026,453 Prepaid expense - current 9,994,151 6,030,516 Prepaid expense – non-current 2,239,552 1,995,937 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of Changes in Cost of Property and Equipment | As of September 30, 2023 and December 31, 2022, the balances of property and equipment were as follows: September 30, December 31, (Unaudited) Ground station equipment $ 1,854,027 $ 1,854,027 Computer software and equipment 1,502,285 1,419,697 Satellite equipment 275,410 275,410 Vehicle 324,340 342,646 Leasehold improvement 83,721 83,721 Furniture and fixture 38,522 36,382 4,078,306 4,011,883 Accumulated depreciation (3,000,979 ) (2,486,836 ) Net 1,077,327 1,525,047 Prepayments - land 34,074,113 35,748,435 Prepaid equipment 308,542 458,998 Total $ 35,459,982 $ 37,732,480 |
Long-Term Investment (Tables)
Long-Term Investment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Investment [Abstract] | |
Schedule of Fair Value of the Long-Term Investment | As of September 30, 2023 and December 31, 2022, the fair value of the long-term investment was as follows: September 30, December 31, (Unaudited) Investment cost – Ejectt – long-term $ 4,047,767 $ 4,246,665 Investment cost – AnaNaviTek - 325,578 Net $ 4,047,767 $ 4,572,243 |
Intangible Asset, Net (Tables)
Intangible Asset, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Asset, Net [Abstract] | |
Schedule of Accumulated Amortization for Intangible Asset | As of September 30, 2023 and December 31, 2022, the cost and accumulated amortization for intangible asset were as follows: September 30, December 31, (Unaudited) Satellite system software $ 4,950,000 $ 4,950,000 Accumulated amortization (3,918,750 ) (3,547,500 ) Net $ 1,031,250 $ 1,402,500 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
Schedule of Goodwill | As of September 30, 2023 and December 31, 2022, the goodwill were as follows: September 30, December 31, (Unaudited) Gross amount $ 21,236,856 $ 4,561,037 Accumulated Impairment - - Net $ 21,236,856 $ 4,561,037 |
Schedule of Goodwill for Mixnet and its subsidiary's Acquisition | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of MEPA is calculated as follows; Total purchase considerations $ 100,000 Fair Value of tangible assets acquired: Cash 482,247 Loan receivable 500,000 Prepaid expenses and other current assets 252,792 Property and equipment 218,042 Deposits 5,400 Total identifiable assets acquired 1,458,481 Fair value of liabilities assumed: Accounts payable 11,075 Loan from stockholder (4,324,000 ) Other payable (131,259 ) Total liabilities assumed (4,444,184 ) Net identifiable liabilities assumed (2,985,703 ) Goodwill as a result of the acquisition $ 3,085,703 |
Schedule of Goodwill for Mixnet and its subsidiary's Acquisition | Goodwill as a result of the acquisition of Mixnet and its subsidiary is calculated as follows; Total purchase considerations $ 16,500,000 Fair Value of tangible assets acquired: Cash 66,278 Other receivable 3,513 Prepaid expenses and other current assets 2,872 Total identifiable assets acquired 72,663 Fair value of liabilities assumed: Loan payable – current (50,403 ) Prepayment from customer (94,634 ) Other payable (24,203 ) Loan from stockholder – non-current (79,242 ) Total liabilities assumed (248,482 ) Net identifiable liabilities assumed (175,819 ) Goodwill as a result of the acquisition $ 16,675,819 |
Operating and Finance Leases (T
Operating and Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Operating and Finance Leases [Abstract] | |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate Related to the Leases | The weighted-average remaining lease term and discount rate related to the leases were as follows: 2023 2022 Weighted-average remaining lease term (Unaudited) Operating lease 2.24 Year 1.50 Years Finance lease 1.10 Years 1.85 Years Weighted-average discount rate Operating lease 6.00 % 6.00 % Finance lease 3.82 % 3.82 % |
Schedule of Operating Leases | September 30, December 31, (Unaudited) Right-of-use assets $ 245,498 $ 92,451 Lease liability – current $ 140,169 $ 120,323 Lease liability – non-current $ 141,228 $ 22,547 |
Schedule of Finance Leases | September 30, December 31, (Unaudited) Property and equipment, at cost $ 56,770 $ 56,770 Accumulated depreciation (45,242 ) (36,925 ) Property and equipment, net $ 11,528 $ 19,845 Lease liability - current $ 10,649 $ 10,858 Lease liability – non-current 4,008 12,624 Total finance lease liabilities $ 14,657 $ 23,482 |
Schedule of Incomes and Expenses within Operating Leases | Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (Unaudited) (Unaudited) (Unaudited) (Unaudited) Lease expense $ 32,242 $ 32,710 $ 75,899 $ 124,376 Sublease rental income (2,069 ) (19,200 ) (6,519 ) (52,858 ) Net lease expense $ 30,172 $ 13,510 $ 69,380 $ 71,518 |
Schedule of Incomes and Expenses within Finance Leases | Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (Unaudited) (Unaudited) (Unaudited) (Unaudited) Amortization of right-of-use asset $ 2,745 $ 2,845 $ 8,235 $ 8,840 Interest on lease liabilities 163 274 567 932 Total finance lease cost $ 2,908 $ 3,119 $ 8,801 $ 9,772 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the nine months periods ended September 30, 2023 and 2022 is as follows: September 30, September 30, (Unaudited) (Unaudited) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 52,407 $ 47,774 Operating cash outflows from finance lease $ 8,052 $ 8,321 Financing cash outflows from finance lease $ 567 $ 932 Leased assets obtained in exchange for lease liabilities: Operating leases $ 244,495 $ 74,795 |
Schedule of Maturity of Operating Leases | Others Total (Unaudited) (Unaudited) October 1, 2023 – September 30, 2024 $ 119,142 $ 119,142 October 1, 2023 – September 30, 2024 89,256 89,256 October 1, 2023 – September 30, 2024 59,504 59,504 Total lease payments $ 267,902 $ 267,902 Less: Imputed interest (19,328 ) (19,328 ) Present value of lease liabilities $ 248,574 $ 248,574 Current portion (107,346 ) (107,346 ) Non-current portion $ 141,228 $ 141,228 |
Schedule of Maturity of Finance Leases | Total (Unaudited) October 1, 2023 – September 30, 2024 $ 11,024 October 1, 2024 – September 30, 2025 4,020 Total lease payments $ 15,045 Less: Imputed interest (388 ) Present value of lease liabilities $ 14,657 Current portion (10,649 ) Non-current portion $ 4,008 |
Long-Term Loan (Tables)
Long-Term Loan (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Loan [Abstract] | |
Schedule of Future Installment Payments | Future installment payments as of September 30, 2023 and December 31, 2022 are as follows: Twelve months ending September 30, (Unaudited) 2024 7,854 2025 - Total installment payments 7,854 Less: Imputed interest (278 ) Present value of long-term loan 7,575 Current portion (7,575 ) Non-current portion $ - Year ending December 31, 2023 $ 12,359 2024 5,150 Total installment payments 17,509 Less: Imputed interest (1,211 ) Present value of long-term loan 16,298 Current portion (11,271 ) Non-current portion $ 5,027 |
Convertible Long-Term Bonds P_2
Convertible Long-Term Bonds Payable and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Convertible Long-Term Bonds Payable and Restricted Cash [Abstract] | |
Schedule of Long-Term Bonds Payable | As of September 30, 2023 and December 31, 2022, the long-term bonds payable consisted of the following: September 30, December 31, (Unaudited) Credit Enhanced Zero Coupon Convertible Bonds $ 10,000,000 $ 10,000,000 Coupon Bonds 200,000 200,000 10,200,000 10,200,000 Unamortized loan fee (682,309 ) (1,062,994 ) Net $ 9,517,691 $ 9,137,006 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Schedule of Income Tax Expense | Income tax expense for the three months and nine months periods ended September 30, 2023 and 2022 consisted of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current: Federal $ - $ - $ - $ - State - - 2,400 1,600 Foreign - - - - Total $ - $ - $ 2,400 $ 1,600 |
Schedule of Reconciliation of the Company's Income Tax at Statutory Tax Rate and Income Tax at Effective Tax Rate | The following table presents a reconciliation of the Company’s income tax at statutory tax rate and income tax at effective tax rate for the three months and nine months periods ended September 30, 2023 and 2022. Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Tax benefit at statutory rate $ (702,089 ) $ (1,089,179 ) $ (2,409,671 ) $ (2,495,186 ) Net operating loss carryforwards (NOLs) 747,003 1,870,676 2,306,417 3,443,193 Foreign investment losses (gains) (497,670 ) (445,209 ) (341,500 ) (818,077 ) Stock-based compensation expense 139,800 12,500 179,500 214,000 Amortization expense 65,500 24,600 151,200 68,200 Accrued payroll 99,700 (83,400 ) 214,000 72,000 Unrealized exchange losses (gains) 144,156 252,712 (92,846 ) 557,470 Others 3,600 (542,700 ) (4,700 ) (1,040,000 ) Tax expense at effective tax rate $ - $ - $ 2,400 $ 1,600 |
Schedule of Deferred Tax Assets (Liability) | Deferred tax assets (liability) as of September 30, 2023 and December 31, 2022 consist approximately of: September 30, December 31, (Unaudited) Net operating loss carryforwards (NOLs) $ 14,341,000 $ 10,694,000 Stock-based compensation expense 3,337,000 3,098,000 Accrued expenses and unpaid expense payable 747,000 412,000 Tax credit carryforwards 68,000 68,000 Unrealized exchange losses (gain) 187,000 311,000 Excess of tax amortization over book amortization (285,000 ) (344,000 ) Others 19,000 (97,000 ) Gross 18,414,000 14,142,000 Valuation allowance (18,414,000 ) (14,142,000 ) Net $ - $ - |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Capital Stock [Abstract] | |
Schedule of Shares of Restricked Stock | The Company is authorized to issue 90,000,000 shares of common stock as of September 30, 2023 and December 31, 2022. September 30, December 31, (Unaudited) Restricted stock - vested 1,802,373 1,802,373 Restricted stock - unvested 149,162 149,162 Total restricted stock 1,951,535 1,951,535 |
Significant Related Party Tra_2
Significant Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Significant Related Party Transactions [Abstract] | |
Schedule of Related Parties and Relationships | Name of related parties and relationships with the Company: Related Party Relationship Well Thrive Limited (“WTL”) Major stockholder Ejectt Inc. (“Ejectt”) Stockholder; Albert Hsu, a Director of Aerkomm, is the Chairman STAR JEC INC. (“StarJec”) Stockholder; Albert Hsu, a Director of Aerkomm, is the Chairman AA Twin Associates Ltd. (“AATWIN”) Georges Caldironi, COO of Aerkomm, is sole owner EESquare Japan (“EESquare JP”) Yih Lieh (Giretsu) Shih, President Aircom Japan, is the Director Kevin Wong Stockholder of Mixnet |
Schedule of Significant Related Party Transactions | As of September 30, 2023 and December 31, 2022: September 30, December 31, (Unaudited) Other receivable from: EESquare JP 1 $ 91,682 $ 11,380 StarJec 2 - 282,073 Ejectt 3 16,081 - WTL 4 1,295,884 - Others 7 36,721 15,092 Total $ 1,440,368 $ 308,545 Rent deposit to Ejectt 3 $ 1,303 $ 1,367 Loan from WTL 4 $ 930,521 $ 337,357 Loan from Kevin Wong 6 76,201 - Total $ 1,006,722 $ 337,357 Prepayment from Ejectt 3 $ 2,163,034 $ 1,258,786 Other payable to: AATWIN 5 $ 35,047 $ 35,047 Interest payable to WTL 4 56,056 58,810 StarJec 2 136,920 - Others 7 656,359 246,610 Total $ 884,382 $ 340,467 1. Aircom Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2019 and March 4, 2023 and extended another 2 years to March 4, 2025. Pursuant to the terms of this lease agreement, EESquare JP pays Aircom Japan a rental fee of approximately $724 per month in 2023 Q3. This amount represents outstanding balance receivable from EESquare JP as of September 30, 2023. 2. Aircom Japan entered into a housing service order on December 14, 2021 and a satellite service order on January 22, 2022 for one year period till January 21, 2023. On June 20, 2022, Aircom Japan also entered a teleport service order with StarJec for a half year period from June 1, 2022 to January 14, 2023. The amount represents receivable from StarJec for monthly service provided due to the service agreements. The monthly service charges is approximately ¥6,820,000 (approximately $51,800 as of December 31,2022). Other payable represents deposit should be returned to Ejectt after service contracts ended as of September 30, 2023. 3. Represents prepayment paid by Ejectt to provide design and installation service in cabin with Aerkomm for $361,910. Aircom Telecom also entered into 2 sales agreements with Ejectt for 6 sets of antennas with prepayment of $1,180,777. As of June 17, 2023, Aerkomm Taiwan entered into MOU with Ejectt to appoints Ejectt as its exclusive represent agency in Taiwan with NTD 20,000,000 security deposit (approximately $620,347 as of September 30, 2023). 4. The Company has loans from WTL due to operational needs under the Loans (Note 1). As of September 30, 2023, the Company has interest payable balance of $56,056 (approximately NTD 1,807,000) for past Loan and new loan of $930,521 (NTD 30,000,000). The Company also lended $1,295,884 as of September 30, 2023. 5. Represents payable to AATWIN due to consulting agreement on January 1, 2019. The monthly consulting fee is €15,120 (approximately $17,000) and was expired on December 31, 2021. 6. Represents long-term loan that Mixnet borrowed from its stockholder for business operating needs for $76,201 (approximately NTD 2,460,000). 7. Represents receivable/payable from/to employees as a result of regular operating activities. |
Schedule of Related Party Transactions | For the three months and nine months periods ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Purchase from Ejectt 1 $ - $ - $ 446,367 $ - Service income from Ejectt 1 66,093 - 98,395 - Service income from Star Jec 2 - 2,855 2,805 6,073 Interest expense charged by WTL 3 - - - 10,155 Rental income from EESqaure JP 4 2,173 2,149 6,519 7,023 Other income from WTL 3 10,865 - 10,865 - Other income from Others 5 2,158 - 3,977 - 1. Represents 2 sets of antennas sold to Ejectt on January 30, 2023 and service income charged to Ejectt for consultant service provided in Q3, 2023 per the exclusive agent agreement signed as of June 17, 2023. 2. On December 14, 2021, Aerkomm Japan and Star Jet, a Taiwan limited liability company, signed a Housing Service Order. Further on January 22, 2022, Aerkomm Japan and Star Jet signed a Satellite Service Order. Under the two orders, Aerkomm Japan agreed to provide satellite services and housing services to Star Jec. 3. The Company has loans from WTL due to operational needs under the Loans (Note 1). As of June 30, 2022, the Company had interest expense accrued $10,184 (approximately NTD 292,576) from WTL under the loans. Aerkomm Japan has other income of $10,865, other product sale to WTL, in August 2023 in associated with selling antenna. 4. Aircom Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2021 and March 4, 2023 and extended another 2 years to March 4, 2025. Pursuant to the terms of this lease agreement, EESquare JP pays Aircom Japan a rental fee of approximately $724 per month in 2023 Q3. 5. Represents other income from employees as a result of regular operating activities. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stock Based Compensation [Line Items] | |
Schedule of Assumptions to Estimate the Fair Value of Options Granted | The Company used the following assumptions to estimate the fair value of options granted in nine months period ended September 30, 2023 and year ended December 31, 2022 under the Plans as follows: Assumptions Expected term 5-10 years Expected volatility 45.79% - 72.81 % Expected dividends 0 % Risk-free interest rate 0.69% - 2.99 % Forfeiture rate 0% - 5 % |
Aircom 2014 Plan [Member] | |
Stock Based Compensation [Line Items] | |
Schedule of Activities Related to Options Outstanding | Activities related to options for the Aircom 2014 Plan for the nine months ended September 30, 2023 and the year ended December 31, 2022 are as follows: Number of Weighted Weighted Options outstanding at January 1, 2022 111,871 $ 3.3521 $ 1.0539 Granted - - - Exercised - - - Forfeited/Cancelled - - - Options outstanding at December 31, 2022 111,871 3.3521 1.0539 Granted - - - Exercised - - - Forfeited/Cancelled - - - Options outstanding at September 30, 2023 (unaudited) 111,871 3.3521 1.0539 |
Schedule of Stock Options Outstanding and Exercisable | Of the shares covered by options outstanding as of September 30, 2023, 111,871 are now exercisable. Information related to stock options outstanding and exercisable at September 30, 2023, is as follows: Options Outstanding (Unaudited) Options Exercisable (Unaudited) Range of Shares Weighted Weighted Shares Weighted Weighted $ 3.3521 111,871 2.75 3.3521 111,871 2.75 3.3521 |
Aerkomm 2017 Plan [Member] | |
Stock Based Compensation [Line Items] | |
Schedule of Activities Related to Options Outstanding | Activities related to options outstanding under Aerkomm 2017 Plan for the nine months ended September 30, 2023 and the year ended December 31, 2022 are as follows: Number of Weighted Weighted Options outstanding at January 1, 2022 1,207,897 11.2537 7.5309 Granted 162,000 8.1566 6.3320 Exercised - - - Forfeited/Cancelled (90,209 ) 11.9003 8.3775 Options outstanding at December 31, 2022 1,279,688 10.8161 7.3194 Granted 805,103 2.5605 1.9779 Exercised - - - Forfeited/Cancelled - - - Options outstanding at September 30, 2023 (unaudited) 2,084,791 7.6279 5.2566 |
Schedule of Stock Options Outstanding and Exercisable | Of the shares covered by options outstanding under the Aerkomm 2017 Plan as of September 30, 2023, 1,363,967 are now exercisable; 720,824 shares will be exercisable for the twelve-month period ending September 30, 2024. Information related to stock options outstanding and exercisable at September 30, 2023, is as follows: Options Outstanding (Unaudited) Options Exercisable (Unaudited) Range of Shares Weighted Weighted Shares Weighted Weighted $ 2.55 – 4.30 1,310,353 8.52 $ 3.0799 589,529 7.20 $ 3.7279 6.00 – 10.00 419,288 7.61 8.3356 419,288 7.61 8.3356 11.00 – 14.20 126,150 6.50 11.4688 126,150 6.50 11.4688 20.50 – 27.50 109,000 4.03 25.4982 109,000 4.03 25.4982 30.00 – 35.00 120,000 3.80 34.5479 120,000 3.80 34.5479 2,084,791 7.6279 1,363,967 10.3115 |
Schedule of Activities Related to Unvested Stock Awards | Activities related to unvested stock awards under Aerkomm 2017 Plan for the nine months period ended September 30, 2023 and the year ended December 31, 2022 are as follows: Number of Weighted Options unvested at January 1, 2022 40,194 8.9422 Granted 162,000 6.3320 Vested (183,194 ) 6.7206 Forfeited/Cancelled (8,000 ) 14.4305 Options unvested at December 31, 2022 11,000 3.5070 Granted 805,103 1.9779 Vested (95,279 ) 2.2208 Forfeited/Cancelled - - Options unvested at September 30, 2023 (unaudited) 720,824 1.9691 |
Aerkomm 2023 Plan [Member] | |
Stock Based Compensation [Line Items] | |
Schedule of Activities Related to Options Outstanding | Activities related to options outstanding under Aerkomm 2023 Plan for the nine months ended September 30, 2023 is as follows: Number of Weighted Weighted Options outstanding at December 31, 2022 - - - Granted 3,665,179 2.5915 2.0099 Exercised - - - Forfeited/Cancelled - - - Options outstanding at September 30, 2023 (unaudited) 3,665,179 2.5915 2.0099 |
Schedule of Stock Options Outstanding and Exercisable | Of the shares covered by options outstanding as of September 30, 2023, 264,230 shares are now exercisable. Information related to stock options outstanding and exercisable at September 30, 2023, is as follows: Options Outstanding (Unaudited) Options Exercisable (Unaudited) Range of Shares Weighted Weighted Shares Weighted Weighted $ 2.58-2.89 3,665,179 9.70 2.5915 264,230 9.72 2.6106 |
Schedule of Activities Related to Unvested Stock Awards | Activities related to unvested stock awards under Aerkomm 2017 Plan for the nine months period ended September 30, 2023 is as follows: Number of Weighted Options unvested at December 31, 2022 - - Granted 3,665,179 2.0099 Vested (264,230 ) 2.0247 Forfeited/Cancelled - - Options unvested at September 30, 2023 (unaudited) 3,400,949 2.0087 |
Organization (Details)
Organization (Details) | 9 Months Ended | 12 Months Ended | |||||
Dec. 29, 2022 TWD ($) shares | Apr. 25, 2022 USD ($) | Feb. 13, 2017 | Dec. 28, 2016 | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Nov. 06, 2020 | |
Organization [Line Items] | |||||||
Issued and outstanding common stock percentage | 99.70% | 86.30% | |||||
Majority interest of shares (in Shares) | shares | 25,500,000 | ||||||
Taiwan buyer | $ 255,000,000 | $ 9,023,354 | |||||
Bridge loan (in Dollars) | $ 10,000,000 | ||||||
Aggregate principal amount (in Dollars) | $ 20,000,000 | ||||||
Principal Loan percentage | 25% | ||||||
Loans committed by the lenders (in Dollars) | $ 20,000,000 | ||||||
Private Placement [Member] | |||||||
Organization [Line Items] | |||||||
Available amount (in Dollars) | $ 20,000,000 | ||||||
Minimum [Member] | |||||||
Organization [Line Items] | |||||||
Commitment percentage | 25% | ||||||
Maximum [Member] | |||||||
Organization [Line Items] | |||||||
Commitment percentage | 100% | ||||||
Aerkomm [Member] | |||||||
Organization [Line Items] | |||||||
Issued and outstanding common stock percentage | 100% | ||||||
Aircom [Member] | |||||||
Organization [Line Items] | |||||||
Issued and outstanding common stock percentage | 99.70% | ||||||
Aerkomm Taiwan [Member] | |||||||
Organization [Line Items] | |||||||
Ownership percentage | 100% |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Line Items] | |||
Bank balance exceeding the amount insured by the Federal deposit insurance corporation (in Dollars) | $ 0 | $ 6,153,000 | |
Account receivable (in Dollars) | 0 | 0 | |
Allowances for expected credit losses (in Dollars) | $ 0 | 0 | |
Common stock equivalents (in Shares) | 6,463,400 | 1,943,618 | |
Concentrations of Credit Risk [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Balance of cash deposited in foreign financial institutions exceeding the amount insured by local insurance (in Dollars) | $ 3,153,000 | $ 3,134,000 | |
Ground Station Equipment [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Computer Equipment [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Computer Equipment [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Furniture and Fixtures [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Satellite Equipment [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Vehicles [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Vehicles [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 6 years | ||
Lease Improvement [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Goodwill and Purchased Intangible Assets [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Purchased intangible asset | 10 years |
Short-Term Investment (Details)
Short-Term Investment (Details) | 9 Months Ended | 12 Months Ended | ||||||||
Mar. 24, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Dec. 03, 2020 TWD ($) shares | Sep. 30, 2023 USD ($) shares | Dec. 31, 2021 shares | Dec. 31, 2022 USD ($) | Sep. 30, 2022 TWD ($) | Dec. 31, 2020 EUR (€) | Sep. 09, 2019 USD ($) | Sep. 09, 2019 EUR (€) | |
Short-term Investment [Line Items] | ||||||||||
Contributed amount | $ 225,500 | € 200,000 | ||||||||
Annual compensation (in Euro) | € | € 20,000 | |||||||||
Fair value amount | $ 13,831 | |||||||||
Short-term investment with accumulated unrealized loss | 5,839 | |||||||||
Restricted common shares (in Shares) | shares | 6,000,000 | |||||||||
Total amount of related party | $ 5,027,600 | |||||||||
Total amount | $ 1,085,608 | $ 1,138,952 | $ 35,000,000 | |||||||
Common Stock [Member] | ||||||||||
Short-term Investment [Line Items] | ||||||||||
Purchased of common stock shares (in Shares) | shares | 5,361 | |||||||||
Ejectt [Member] | ||||||||||
Short-term Investment [Line Items] | ||||||||||
Purchased additional shares (in Shares) | shares | 2,000 | |||||||||
Ownership percentage | 8% | 8% | ||||||||
Ejectt [Member] | Common Stock [Member] | ||||||||||
Short-term Investment [Line Items] | ||||||||||
Restricted common shares (in Shares) | shares | 5,000,000 | |||||||||
Related Party [Member] | ||||||||||
Short-term Investment [Line Items] | ||||||||||
Total amount of related party | $ 141,175,000 | |||||||||
Common stock total amount of related party | $ 1,392 |
Short-Term Investment (Detail_2
Short-Term Investment (Details) - Schedule of Fair Value of the Investment - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Fair Value of the Investment [Abstract] | ||
Investment – Ejectt – short-term | $ 2,514,919 | $ 850,182 |
Investment - Liquidity | 13,831 | 20,104 |
Prepaid investment | 1,085,608 | 1,138,952 |
Total Investment | 3,614,358 | 2,009,238 |
Appreciation in market value - Ejectt | (1,917,318) | (223,216) |
Investment cost – Ejectt – short-term | 597,601 | 626,966 |
Investment cost - Liquidity | 13,831 | 20,104 |
Prepaid investment | $ 1,085,608 | $ 1,138,952 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Inventories [Abstract] | ||
Satellite equipment for sale under construction | $ 1,366,282 | $ 1,366,282 |
Prepaid Expenses (Details) - Sc
Prepaid Expenses (Details) - Schedule of Prepaid Expenses - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Prepaid Expenses [Abstract] | ||
Prepaid engineering expense | $ 9,486,067 | $ 7,536,409 |
Prepaid professional expense | 105,786 | 79,954 |
Others | 2,641,850 | 410,090 |
Total | 12,233,703 | 8,026,453 |
Prepaid expense - current | 9,994,151 | 6,030,516 |
Prepaid expense – non-current | $ 2,239,552 | $ 1,995,937 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property and Equipment [Line Items] | ||
Depreciation expense | $ 525,796 | $ 406,984 |
Land Purchase Contract [Member] | Tsai Ming-Yin [Member] | ||
Property and Equipment [Line Items] | ||
Acquisition, description | On July 10, 2018, the Company and Aerkomm Taiwan entered into a real estate sale contract (the “Land Purchase Contract”) with Tsai Ming-Yin (the “Seller”) with respect to the acquisition by Aerkomm Taiwan of a parcel of land located in Taiwan. The land is expected to be used to build a satellite ground station and data center. Pursuant to the terms of the Land Purchase Contract, and subsequent amendments on July 30, 2018, September 4, 2018, November 2, 2018 and January 3, 2019, the Company paid to the seller in installments refundable prepayments of NT$1,098,549,407 (approximately $34,074,113 as of September 30, 2023 and $35,748,435 as of December 31, 2022) in total. The estimated commission payable for the land purchase in the amount of NT$42,251,900 (approximately $1,310,543 as of September 30, 2023 and 1,374,940 as of December 31, 2022) was recorded to the cost of land. And the company is under the discussion of extending the commission payable to December 31,2023. According to the amended Land Purchase Contract dated on November 10, 2020, the transaction may be terminated at any time by both the buyer and the seller and agreed by all parties if the Company is unable to obtain the qualified satellite license issued by Taiwan authority before July 31, 2021. As of January *, 2024, the qualified license applications are still in progress. |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Changes in Property and Equipment - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment cost | $ 4,078,306 | $ 4,011,883 |
Accumulated depreciation | (3,000,979) | (2,486,836) |
Net | 1,077,327 | 1,525,047 |
Prepayments - land | 34,074,113 | 35,748,435 |
Prepaid equipment | 308,542 | 458,998 |
Total | 35,459,982 | 37,732,480 |
Ground station equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment cost | 1,854,027 | 1,854,027 |
Computer software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment cost | 1,502,285 | 1,419,697 |
Satellite equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment cost | 275,410 | 275,410 |
Vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment cost | 324,340 | 342,646 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment cost | 83,721 | 83,721 |
Furniture and fixture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment cost | $ 38,522 | $ 36,382 |
Long-Term Investment (Details)
Long-Term Investment (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 29, 2022 TWD ($) shares | Nov. 21, 2022 TWD ($) | Sep. 30, 2023 shares | Dec. 31, 2022 USD ($) shares | Sep. 28, 2023 shares | Mar. 31, 2023 USD ($) | |
Long-Term Investment [Line Items] | ||||||
Purchase shares of common stock | 7,000,448 | |||||
Share purchase amount | $ 40,050,000 | $ 1,303,287 | ||||
Company paid | $ 10,005,000 | $ 325,578 | ||||
Share purchased | 667,000 | |||||
Common Stock [Member] | ||||||
Long-Term Investment [Line Items] | ||||||
Aggregate restricted shares | 5,000,000 | 5,000,000 | ||||
Stock Purchase Agreement [Member] | ||||||
Long-Term Investment [Line Items] | ||||||
Purchase shares of common stock | 2,670,000 | |||||
AnaNaviTek [Member] | ||||||
Long-Term Investment [Line Items] | ||||||
Disposed AnaNaviTek for amount (in Dollars) | $ | $ 325,578 |
Long-Term Investment (Details)
Long-Term Investment (Details) - Schedule of Fair Value of the Long-Term Investment - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Fair Value of the Long-Term Investment [Abstract] | ||
Investment cost – Ejectt – long-term | $ 4,047,767 | $ 4,246,665 |
Investment cost – AnaNaviTek | 325,578 | |
Net | $ 4,047,767 | $ 4,572,243 |
Intangible Asset, Net (Details)
Intangible Asset, Net (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Intangible Asset, Net [Abstract] | ||
Amortization expense | $ 371,250 | $ 371,250 |
Intangible Asset, Net (Detail_2
Intangible Asset, Net (Details) - Schedule of Accumulated Amortization for Intangible Asset - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Accumulated Amortization for Intangible Asset [Abstract] | ||
Satellite system software | $ 4,950,000 | $ 4,950,000 |
Accumulated amortization | (3,918,750) | (3,547,500) |
Net | $ 1,031,250 | $ 1,402,500 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 04, 2022 | Sep. 28, 2023 | Sep. 30, 2023 | |
Goodwill [Line Items] | |||
Past goodwill various merge and acquistion | $ 1,475,334 | ||
Ownership percentage | 100% | ||
Fair value of MEPA at acquisition | $ (2,985,703) | ||
The excess amount recorded as goodwill | $ 3,085,703 | ||
Issued shares (in Shares) | 7,000,448 | ||
Price per share (in Dollars per share) | $ 2.36 | ||
Acquisition | $ (175,819) | ||
Intangible assets and assumed liabilities | 16,675,819 | ||
Acquisition [Member] | |||
Goodwill [Line Items] | |||
Ownership percentage | 100% | ||
MEPA Labs Inc [Member] | |||
Goodwill [Line Items] | |||
Total consideration | $ 100,000 | ||
Mixnet [Member] | |||
Goodwill [Line Items] | |||
Total consideration | $ 16,500,000 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of Goodwill - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Goodwill [Abstract] | ||
Gross amount | $ 21,236,856 | $ 4,561,037 |
Accumulated Impairment | ||
Net | $ 21,236,856 | $ 4,561,037 |
Goodwill (Details) - Schedule_2
Goodwill (Details) - Schedule of Goodwill for MEPA's Acquisition - Goodwill [Member] | Sep. 30, 2023 USD ($) |
Asset Acquisition [Line Items] | |
Total purchase considerations | $ 100,000 |
Fair Value of tangible assets acquired: | |
Cash | 482,247 |
Loan receivable | 500,000 |
Prepaid expenses and other current assets | 252,792 |
Property and equipment | 218,042 |
Deposits | 5,400 |
Total identifiable assets acquired | 1,458,481 |
Fair value of liabilities assumed: | |
Accounts payable | 11,075 |
Loan from stockholder | (4,324,000) |
Other payable | (131,259) |
Total liabilities assumed | (4,444,184) |
Net identifiable liabilities assumed | (2,985,703) |
Goodwill as a result of the acquisition | $ 3,085,703 |
Goodwill (Details) - Schedule_3
Goodwill (Details) - Schedule of Goodwill for Mixnet and its subsidiary's Acquisition - Mixnet [Member] | Sep. 30, 2023 USD ($) |
Goodwill (Details) - Schedule of Goodwill for Mixnet and its subsidiary's Acquisition [Line Items] | |
Total purchase considerations | $ 16,500,000 |
Fair Value of tangible assets acquired: | |
Cash | 66,278 |
Other receivable | 3,513 |
Prepaid expenses and other current assets | 2,872 |
Total identifiable assets acquired | 72,663 |
Fair value of liabilities assumed: | |
Loan payable – current | (50,403) |
Prepayment from customer | (94,634) |
Other payable | (24,203) |
Loan from stockholder – non-current | (79,242) |
Total liabilities assumed | (248,482) |
Net identifiable liabilities assumed | (175,819) |
Goodwill as a result of the acquisition | $ 16,675,819 |
Operating and Finance Leases (D
Operating and Finance Leases (Details) - Schedule of Weighted-Average Remaining Lease Term and Discount Rate Related to the Leases | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate Related to the Leases [Abstract] | ||
Operating lease | 2 years 2 months 26 days | 1 year 6 months |
Finance lease | 1 year 1 month 6 days | 1 year 10 months 6 days |
Weighted-average discount rate | ||
Operating lease | 6% | 6% |
Finance lease | 3.82% | 3.82% |
Operating and Finance Leases _2
Operating and Finance Leases (Details) - Schedule of Operating Leases - Operating Leases [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Operating and Finance Leases (Details) - Schedule of Operating Leases [Line Items] | ||
Right-of-use assets | $ 245,498 | $ 92,451 |
Lease liability – current | 140,169 | 120,323 |
Lease liability – non-current | $ 141,228 | $ 22,547 |
Operating and Finance Leases _3
Operating and Finance Leases (Details) - Schedule of Finance Leases - Finance Leases [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Operating and Finance Leases (Details) - Schedule of Finance Leases [Line Items] | ||
Property and equipment, at cost | $ 56,770 | $ 56,770 |
Accumulated depreciation | (45,242) | (36,925) |
Property and equipment, net | 11,528 | 19,845 |
Lease liability - current | 10,649 | 10,858 |
Lease liability – non-current | 4,008 | 12,624 |
Total finance lease liabilities | $ 14,657 | $ 23,482 |
Operating and Finance Leases _4
Operating and Finance Leases (Details) - Schedule of Incomes and Expenses within Operating Leases - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Incomes and Expenses within Operating Leases [Abstract] | ||||
Lease expense | $ 32,242 | $ 32,710 | $ 75,899 | $ 124,376 |
Sublease rental income | (2,069) | (19,200) | (6,519) | (52,858) |
Net lease expense | $ 30,172 | $ 13,510 | $ 69,380 | $ 71,518 |
Operating and Finance Leases _5
Operating and Finance Leases (Details) - Schedule of Incomes and Expenses within Finance Leases - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Incomes and Expenses within Finance Leases [Abstract] | ||||
Amortization of right-of-use asset | $ 2,745 | $ 2,845 | $ 8,235 | $ 8,840 |
Interest on lease liabilities | 163 | 274 | 567 | 932 |
Total finance lease cost | $ 2,908 | $ 3,119 | $ 8,801 | $ 9,772 |
Operating and Finance Leases _6
Operating and Finance Leases (Details) - Schedule of Supplemental Cash Flow Information Related to Leases - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 52,407 | $ 47,774 |
Operating cash outflows from finance lease | 8,052 | 8,321 |
Financing cash outflows from finance lease | 567 | 932 |
Leased assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 244,495 | $ 74,795 |
Operating and Finance Leases _7
Operating and Finance Leases (Details) - Schedule of Maturity of Operating Leases | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Others [Member] | |
Operating and Finance Leases (Details) - Schedule of Maturity of Operating Leases [Line Items] | |
October 1, 2023 – September 30, 2024 | $ 119,142 |
October 1, 2023 – September 30, 2024 | 89,256 |
October 1, 2023 – September 30, 2024 | 59,504 |
Total lease payments | 267,902 |
Less: Imputed interest | (19,328) |
Present value of lease liabilities | 248,574 |
Current portion | (107,346) |
Non-current portion | 141,228 |
Total [Member] | |
Operating and Finance Leases (Details) - Schedule of Maturity of Operating Leases [Line Items] | |
October 1, 2023 – September 30, 2024 | 119,142 |
October 1, 2023 – September 30, 2024 | 89,256 |
October 1, 2023 – September 30, 2024 | 59,504 |
Total lease payments | 267,902 |
Less: Imputed interest | (19,328) |
Present value of lease liabilities | 248,574 |
Current portion | (107,346) |
Non-current portion | $ 141,228 |
Operating and Finance Leases _8
Operating and Finance Leases (Details) - Schedule of Maturity of Finance Leases | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Schedule of Maturity of Finance Leases [Abstract] | |
October 1, 2023 – September 30, 2024 | $ 11,024 |
October 1, 2024 – September 30, 2025 | 4,020 |
Total lease payments | 15,045 |
Less: Imputed interest | (388) |
Present value of lease liabilities | 14,657 |
Current portion | (10,649) |
Non-current portion | $ 4,008 |
Short-Term Loan (Details)
Short-Term Loan (Details) - 9 months ended Sep. 30, 2023 | USD ($) | TWD ($) |
Short-Term Loan [Line Items] | ||
Loan agreement amount | $ 930,521 | $ 30,000,000 |
Long-Term Loan (Details)
Long-Term Loan (Details) | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 TWD ($) | Dec. 31, 2022 USD ($) | |
Long-Term Loan [Abstract] | |||
Car loan credit line | $ 46,526 | $ 1,500,000 | $ 48,812 |
Maturity date | May 21, 2024 | ||
Annual interest rate | 9.70% | ||
Installment payment, description | The installment payment plan is 60 months to pay off the balance on the 21st of each month. |
Long-Term Loan (Details) - Sche
Long-Term Loan (Details) - Schedule of Future Installment Payments - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Long-Term Loan (Details) - Schedule of Future Installment Payments [Line Items] | ||
2024 | $ 7,854 | |
2025 | ||
Total installment payments | 7,854 | |
Less: Imputed interest | (278) | |
Present value of long-term loan | 7,575 | |
Current portion | (7,575) | |
Non-current portion | ||
Long-Term Debt [Member] | ||
Long-Term Loan (Details) - Schedule of Future Installment Payments [Line Items] | ||
2023 | $ 12,359 | |
2024 | 5,150 | |
Total installment payments | 17,509 | |
Less: Imputed interest | (1,211) | |
Present value of long-term loan | 16,298 | |
Current portion | (11,271) | |
Non-current portion | $ 5,027 |
Convertible Long-Term Bonds P_3
Convertible Long-Term Bonds Payable and Restricted Cash (Details) - USD ($) | 9 Months Ended | ||||||||
Dec. 02, 2025 | Dec. 02, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Nov. 20, 2025 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 03, 2020 | Dec. 01, 2020 | |
Convertible Long-term Bonds Payable and Restricted Cash [line Item] | |||||||||
Aggregate principal amount of convertible bond | $ 200,000 | ||||||||
Interest of percentage per annum | 7.50% | ||||||||
Redemption of debt description | The Company has the option to redeem the Bonds at a redemption amount equal to the Early Redemption Amount, as defined in the Offering Memorandum, at any time on or after December 2, 2023 and prior to the Maturity Date, if the Closing Price of the Company’s Common Stock listed on the Euronext Paris for 20 trading days in any period of 30 consecutive trading days, the last day of which occurs not more than fifteen trading days prior to the date on which notice of such redemption is given, is greater than 130% of the Conversion Price on each applicable trading day or (ii) in whole or in part of the Bonds on the second anniversary of the issue date or (iii) where 90% or more in principal amount of the Bonds issued have been redeemed, converted or repurchased and cancelled. | ||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | ||||||||
Initial conversion price per share (in Dollars per share) | $ 13.3 | ||||||||
Bond issuance cost nine months | $ 380,684 | $ 360,089 | |||||||
Private Placement [Member] | |||||||||
Convertible Long-term Bonds Payable and Restricted Cash [line Item] | |||||||||
Aggregate principal amount of convertible bond | $ 10,000,000 | ||||||||
Coupon Bonds [Member] | |||||||||
Convertible Long-term Bonds Payable and Restricted Cash [line Item] | |||||||||
Convertible bonds percentage | 7.50% | ||||||||
Forecast [Member] | |||||||||
Convertible Long-term Bonds Payable and Restricted Cash [line Item] | |||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | ||||||||
Forecast [Member] | Coupon Bonds [Member] | |||||||||
Convertible Long-term Bonds Payable and Restricted Cash [line Item] | |||||||||
Redeemed % of principal amount | 100% | ||||||||
Forecast [Member] | Zero-Coupon Bonds [Member] | December 2, 2025 [Member] | |||||||||
Convertible Long-term Bonds Payable and Restricted Cash [line Item] | |||||||||
Redeemed % of principal amount | 105.11% | ||||||||
BG Bank [Member] | |||||||||
Convertible Long-term Bonds Payable and Restricted Cash [line Item] | |||||||||
Line of credit | $ 10,700,000 | ||||||||
Line of credit expired period | Dec. 02, 2025 | ||||||||
Line of credit annual fee, due quarterly | 1% | ||||||||
Deposit | $ 3,210,000 | $ 3,210,000 |
Convertible Long-Term Bonds P_4
Convertible Long-Term Bonds Payable and Restricted Cash (Details) - Schedule of Long-Term Bonds Payable - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Long-Term Bonds Payable [Line Items] | ||
Aggregate principal amount | $ 10,200,000 | $ 10,200,000 |
Unamortized loan fee | (682,309) | (1,062,994) |
Net | 9,517,691 | 9,137,006 |
Credit Enhanced Zero Coupon Convertible Bonds [Member] | ||
Schedule of Long-Term Bonds Payable [Line Items] | ||
Aggregate principal amount | 10,000,000 | 10,000,000 |
Coupon Bonds [Member] | ||
Schedule of Long-Term Bonds Payable [Line Items] | ||
Aggregate principal amount | $ 200,000 | $ 200,000 |
Convertible Long-Term Notes P_2
Convertible Long-Term Notes Payable and Restricted Cash (Details) - USD ($) | 12 Months Ended | ||||
Dec. 07, 2022 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 15, 2022 | Jun. 28, 2022 | |
Convertible Long-Term Notes Payable and Restricted Cash [Line Items] | |||||
Subscription common stock | $ 5,674,000 | $ 3,175,200 | |||
Aggregate totaling | $ 13,173,200 | ||||
Additional amount | $ 10,000,000 | ||||
Convertible bond | $ 30,000,000 | ||||
Interest rate | 4% | ||||
Conversion price (in Dollars per share) | $ 6 | ||||
Convertible Note [Member] | |||||
Convertible Long-Term Notes Payable and Restricted Cash [Line Items] | |||||
Maximum aggregate allowed principal amount | $ 30,000,000 | ||||
Aggregate principal amount | 23,173,200 | ||||
Accrued interest (approximately) | $ 751,000 | ||||
MEPA [Member] | |||||
Convertible Long-Term Notes Payable and Restricted Cash [Line Items] | |||||
Subscription common stock | $ 4,324,000 |
Contract Liability (Details)
Contract Liability (Details) - USD ($) | 9 Months Ended | ||
Dec. 31, 2022 | Mar. 09, 2015 | Sep. 30, 2023 | |
Contract Liability [Abstract] | |||
Purchase agreement terms | 10 years | ||
Purchase price | $ 909,000 | ||
Received amount | $ 762,000 | $ 762,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | ||
Change in deferred tax assets valuation allowance | $ 4,272,000 | |
Federal Research and Development Tax Credits [Member] | ||
Income Taxes [Line Items] | ||
Research and development tax credit | 37,000 | $ 37,000 |
California State Research and Development Tax Credits [Member] | ||
Income Taxes [Line Items] | ||
Research and development tax credit | 39,000 | 39,000 |
Japan [Member] | ||
Income Taxes [Line Items] | ||
Amount to reduce future taxable income | 251,000 | 326,000 |
Taiwan [Member] | ||
Income Taxes [Line Items] | ||
Amount to reduce future taxable income | 5,564,000 | 3,452,000 |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Amount to reduce future taxable income | 8,243,000 | 8,243,000 |
Additional federal NOLs | 29,116,000 | 28,545,000 |
State [Member] | ||
Income Taxes [Line Items] | ||
Additional federal NOLs | $ 44,422,000 | $ 37,662,000 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Income Tax Expense - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Current: | ||||
Federal | ||||
State | 2,400 | 1,600 | ||
Foreign | ||||
Total | $ 2,400 | $ 1,600 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Reconciliation of the Company's Income Tax at Statutory Tax Rate and Income Tax at Effective Tax Rate - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Reconciliation of the Company's Income Tax at Statutory Tax Rate and Income Tax at Effective Tax Rate [Abstract] | ||||
Tax benefit at statutory rate | $ (702,089) | $ (1,089,179) | $ (2,409,671) | $ (2,495,186) |
Net operating loss carryforwards (NOLs) | 747,003 | 1,870,676 | 2,306,417 | 3,443,193 |
Foreign investment losses (gains) | (497,670) | (445,209) | (341,500) | (818,077) |
Stock-based compensation expense | 139,800 | 12,500 | 179,500 | 214,000 |
Amortization expense | 65,500 | 24,600 | 151,200 | 68,200 |
Accrued payroll | 99,700 | (83,400) | 214,000 | 72,000 |
Unrealized exchange losses (gains) | 144,156 | 252,712 | (92,846) | 557,470 |
Others | 3,600 | (542,700) | (4,700) | (1,040,000) |
Tax expense at effective tax rate | $ 2,400 | $ 1,600 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Deferred Tax Assets (Liability) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Deferred Tax Assets (Liability) [Abstract] | ||
Net operating loss carryforwards (NOLs) | $ 14,341,000 | $ 10,694,000 |
Stock-based compensation expense | 3,337,000 | 3,098,000 |
Accrued expenses and unpaid expense payable | 747,000 | 412,000 |
Tax credit carryforwards | 68,000 | 68,000 |
Unrealized exchange losses (gain) | 187,000 | 311,000 |
Excess of tax amortization over book amortization | (285,000) | (344,000) |
Others | 19,000 | (97,000) |
Gross | 18,414,000 | 14,142,000 |
Valuation allowance | (18,414,000) | (14,142,000) |
Net |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 28, 2023 | Jun. 16, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Capital Stock [Line Items] | ||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||
Preferred stock, outstanding | ||||
Common stock, shares authorized | 90,000,000 | 90,000,000 | ||
Public Offering [Member] | ||||
Capital Stock [Line Items] | ||||
APIC adjustment for the issuance costs of these stock warrant (in Dollars) | $ 1,252,029 | |||
Common Stock [Member] | ||||
Capital Stock [Line Items] | ||||
Shares of common stock | 4,114 | |||
Mr. Sheng-Chun Chang [Member] | ||||
Capital Stock [Line Items] | ||||
Issuance of warrant description | On October 31, 2021, following approval by the Board of Directors, the Company issued a warrant to Mr. Sheng-Chun Chang for the purchase of up to 751,879 shares of the Company’s common stock, exercisable at a price of $2.60 per share, the closing price of the common stock on the OTC Markets, Inc. QX tier on October 21, 2021. The issuance of the warrant is (i) in recognition of Mr. Chang’s support of the Company through his previous personal guarantee of the Company’s $10,000,000 line of credit with the Panhsin Bank (the “Bank”) in relation to the private placement offering of $10,000,000 credit enhanced zero coupon convertible bonds and (ii) in exchange for Mr. Chang’s agreement to renew his guarantee with the Bank for so long as the guarantee would be required by the Bank. The warrant will vest 20% on issuance. On each anniversary of the issue date, beginning with December 3, 2021 and ending with December 3, 2025, the warrant will vest with respect to 20% of the number of shares of the Company’s common stock issuable upon conversion of the principal amount of the credit enhanced bonds still required to be guaranteed by the Panhsin Bank. | |||
Kevin Wong [Member] | ||||
Capital Stock [Line Items] | ||||
Shares issued | 7,000,448 |
Capital Stock (Details) - Sched
Capital Stock (Details) - Schedule of Shares of Restricked Stock - shares | 9 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2023 | |
Schedule of Restricted Shares of Common Stock [Abstract] | ||
Restricted stock - vested | 1,802,373 | 1,802,373 |
Restricted stock - unvested | 149,162 | 149,162 |
Total restricted stock | 1,951,535 | 1,951,535 |
Significant Related Party Tra_3
Significant Related Party Transactions (Details) | 9 Months Ended | 12 Months Ended | 13 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 JPY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Aug. 31, 2023 USD ($) | Sep. 30, 2023 TWD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 TWD ($) | |
Significant Related Party Transactions [Line Items] | ||||||||
Sublease agreement | 2 years | 2 years | ||||||
Monthly service charges | ¥ 6,820,000 | $ 51,800 | ||||||
Installation service | $ 361,910 | |||||||
Sales agreements | 1,180,777 | |||||||
Security deposit | 620,347 | $ 20,000,000 | ||||||
Interest payable amount | 56,056 | 1,807,000 | ||||||
Company borrowed | 930,521 | 30,000,000 | ||||||
Lended | 1,295,884 | |||||||
Consulting fee | $ 17,000 | € 15,120 | ||||||
Long term loan | $ 76,201 | $ 2,460,000 | ||||||
Other income | $ 10,865 | |||||||
Sublease Agreement [Member] | ||||||||
Significant Related Party Transactions [Line Items] | ||||||||
Sublease agreement | 2 years | 2 years | ||||||
EESQAURE JP [Member] | ||||||||
Significant Related Party Transactions [Line Items] | ||||||||
Rental fee | $ 724 | |||||||
EESQAURE JP [Member] | Sublease Agreement [Member] | ||||||||
Significant Related Party Transactions [Line Items] | ||||||||
Rental fee | $ 724 | |||||||
WTL [Member] | ||||||||
Significant Related Party Transactions [Line Items] | ||||||||
Lended | $ 10,184 | $ 292,576 |
Significant Related Party Tra_4
Significant Related Party Transactions (Details) - Schedule of Related Parties and Relationships | 9 Months Ended |
Sep. 30, 2023 | |
Well Thrive Limited (“WTL”) [Member] | |
Significant Related Party Transactions (Details) - Schedule of Related Parties and Relationships [Line Items] | |
Relationship | Major stockholder |
Ejectt Inc. (“Ejectt”) [Member] | |
Significant Related Party Transactions (Details) - Schedule of Related Parties and Relationships [Line Items] | |
Relationship | Stockholder; Albert Hsu, a Director of Aerkomm, is the Chairman |
STAR JEC INC. (“StarJec”) [Member] | |
Significant Related Party Transactions (Details) - Schedule of Related Parties and Relationships [Line Items] | |
Relationship | Stockholder; Albert Hsu, a Director of Aerkomm, is the Chairman |
AA Twin Associates Ltd. (“AATWIN”) [Member] | |
Significant Related Party Transactions (Details) - Schedule of Related Parties and Relationships [Line Items] | |
Relationship | Georges Caldironi, COO of Aerkomm, is sole owner |
EESquare Japan (“EESquare JP”) [Member] | |
Significant Related Party Transactions (Details) - Schedule of Related Parties and Relationships [Line Items] | |
Relationship | Yih Lieh (Giretsu) Shih, President Aircom Japan, is the Director |
Kevin Wong [Member] | |
Significant Related Party Transactions (Details) - Schedule of Related Parties and Relationships [Line Items] | |
Relationship | Stockholder of Mixnet |
Significant Related Party Tra_5
Significant Related Party Transactions (Details) - Schedule of Significant Related Party Transactions - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | ||
EESquare JP [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivable | [1] | $ 91,682 | $ 11,380 |
StarJec [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivable | [2] | 282,073 | |
Ejectt [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivable | [3] | 16,081 | |
WTL [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivable | [4] | 1,295,884 | |
Others [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivable | [5] | 36,721 | 15,092 |
Total [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivable | 1,440,368 | 308,545 | |
Loan from related party | 1,006,722 | 337,357 | |
Other payable | 884,382 | 340,467 | |
Rent deposit to Ejectt [Member] | |||
Related Party Transaction [Line Items] | |||
Rent deposit to Ejectt3 | [3] | 1,303 | 1,367 |
Loan from WTL [Member] | |||
Related Party Transaction [Line Items] | |||
Loan from related party | [4] | 930,521 | 337,357 |
Loan from Kevin Wong [Member] | |||
Related Party Transaction [Line Items] | |||
Loan from related party | [6] | 76,201 | |
Prepayment from Ejectt [Member] | |||
Related Party Transaction [Line Items] | |||
Prepayment from Ejectt | [3] | 2,163,034 | 1,258,786 |
AATWIN [Member] | |||
Related Party Transaction [Line Items] | |||
Other payable | [7] | 35,047 | 35,047 |
Interest payable to WTL [Member] | |||
Related Party Transaction [Line Items] | |||
Other payable | [4] | 56,056 | 58,810 |
StarJec [Member] | |||
Related Party Transaction [Line Items] | |||
Other payable | [2] | 136,920 | |
Others [Member] | |||
Related Party Transaction [Line Items] | |||
Other payable | [5] | $ 656,359 | $ 246,610 |
[1] Aircom Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2019 and March 4, 2023 and extended another 2 years to March 4, 2025. Pursuant to the terms of this lease agreement, EESquare JP pays Aircom Japan a rental fee of approximately $724 per month in 2023 Q3. This amount represents outstanding balance receivable from EESquare JP as of September 30, 2023. Aircom Japan entered into a housing service order on December 14, 2021 and a satellite service order on January 22, 2022 for one year period till January 21, 2023. On June 20, 2022, Aircom Japan also entered a teleport service order with StarJec for a half year period from June 1, 2022 to January 14, 2023. The amount represents receivable from StarJec for monthly service provided due to the service agreements. The monthly service charges is approximately ¥6,820,000 (approximately $51,800 as of December 31,2022). Other payable represents deposit should be returned to Ejectt after service contracts ended as of September 30, 2023. Represents receivable/payable from/to employees as a result of regular operating activities. Represents payable to AATWIN due to consulting agreement on January 1, 2019. The monthly consulting fee is €15,120 (approximately $17,000) and was expired on December 31, 2021. |
Significant Related Party Tra_6
Significant Related Party Transactions (Details) - Schedule of Related Party Transactions - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Schedule of Related Party Transactions [Abstract] | |||||
Purchase from Ejectt | [1] | $ 446,367 | |||
Service income from Ejectt | [1] | 66,093 | 98,395 | ||
Service income from Star Jec | [2] | 2,855 | 2,805 | 6,073 | |
Interest expense charged by WTL | [3] | 10,155 | |||
Rental income from EESqaure JP | [4] | 2,173 | 2,149 | 6,519 | 7,023 |
Other income from WTL | [3] | 10,865 | 10,865 | ||
Other income from Others | [5] | $ 2,158 | $ 3,977 | ||
[1] Represents 2 sets of antennas sold to Ejectt on January 30, 2023 and service income charged to Ejectt for consultant service provided in Q3, 2023 per the exclusive agent agreement signed as of June 17, 2023. On December 14, 2021, Aerkomm Japan and Star Jet, a Taiwan limited liability company, signed a Housing Service Order. Further on January 22, 2022, Aerkomm Japan and Star Jet signed a Satellite Service Order. Under the two orders, Aerkomm Japan agreed to provide satellite services and housing services to Star Jec. Aircom Japan entered into a sublease agreement with EESquare JP for the period between March 5, 2021 and March 4, 2023 and extended another 2 years to March 4, 2025. Pursuant to the terms of this lease agreement, EESquare JP pays Aircom Japan a rental fee of approximately $724 per month in 2023 Q3. Represents other income from employees as a result of regular operating activities. |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Jun. 13, 2023 | Jun. 01, 2023 | May 05, 2023 | Mar. 01, 2023 | Dec. 01, 2022 | Oct. 04, 2022 | Sep. 01, 2022 | Jun. 01, 2022 | Mar. 01, 2022 | Dec. 01, 2021 | Oct. 04, 2021 | Sep. 01, 2021 | Oct. 04, 2020 | Oct. 04, 2019 | Jul. 02, 2019 | May 05, 2017 | Dec. 29, 2022 | Dec. 31, 2021 | Dec. 29, 2021 | Oct. 21, 2021 | Sep. 17, 2021 | Jan. 23, 2021 | Sep. 17, 2020 | Feb. 19, 2020 | Dec. 29, 2019 | Dec. 29, 2018 | Sep. 17, 2018 | Sep. 16, 2018 | Jun. 19, 2018 | Dec. 29, 2017 | Jul. 31, 2017 | Jun. 23, 2017 | Feb. 13, 2017 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2024 | Sep. 28, 2023 | Sep. 01, 2023 | Dec. 11, 2020 | |
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 3,627,679 | 18,750 | 786,356 | 18,750 | 18,750 | 18,750 | 18,750 | 18,750 | 8,000 | 2,000 | 8,000 | 4,000 | |||||||||||||||||||||||||||
Vest rate percentage | 25% | 25% | 25% | 25% | 50% | ||||||||||||||||||||||||||||||||||
Shares vested rate | 50% | ||||||||||||||||||||||||||||||||||||||
Independent directors shares | 4,000 | 4,000 | 4,000 | 4,000 | |||||||||||||||||||||||||||||||||||
Aggregate shares | 85,400 | ||||||||||||||||||||||||||||||||||||||
Stock options issued to each director | 4,000 | ||||||||||||||||||||||||||||||||||||||
Shares issued | 4,000 | ||||||||||||||||||||||||||||||||||||||
Shares issued | 7,000,448 | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation (in Dollars) | $ 854,739 | $ 959,340 | |||||||||||||||||||||||||||||||||||||
Unrecognized stock-based compensation expense (in Dollars) | $ 1,346,000 | ||||||||||||||||||||||||||||||||||||||
Weighted average period | 3 years 7 months 6 days | ||||||||||||||||||||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 18,750 | ||||||||||||||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 75,000 | ||||||||||||||||||||||||||||||||||||||
Board of Directors [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Shares issued | 18,750 | ||||||||||||||||||||||||||||||||||||||
Forecast [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Exercisable for the 12-month period | 720,824 | ||||||||||||||||||||||||||||||||||||||
Aircom 2014 Plan [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 1,088,882 | ||||||||||||||||||||||||||||||||||||||
Term | 10 years | ||||||||||||||||||||||||||||||||||||||
Options exercisable | 111,871 | ||||||||||||||||||||||||||||||||||||||
Aerkomm 2017 Plan [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 291,000 | ||||||||||||||||||||||||||||||||||||||
Options exercisable | 1,363,967 | ||||||||||||||||||||||||||||||||||||||
Aerkomm 2017 Plan [Member] | Board of Directors [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 18,750 | 339,000 | 150,000 | 4,000 | 12,000 | 4,000 | 2,000 | 12,000 | 12,000 | 4,000 | 12,000 | 109,000 | |||||||||||||||||||||||||||
Term | 10 years | ||||||||||||||||||||||||||||||||||||||
Shares of common stock reserved for issuance | 1,000,000 | 2,000,000 | |||||||||||||||||||||||||||||||||||||
Common stock reserved for issuance | 2,400,000 | ||||||||||||||||||||||||||||||||||||||
Description of plan agreements | 25% of the shares vested on the grant date, 25% of the shares vested on July 17, 2019, 25% of the shares shall be vested on the first anniversary of the grant date, and 25% of the shares will vest upon the second anniversary of the grant date. | ||||||||||||||||||||||||||||||||||||||
Aggregate shares issued | 284,997 | ||||||||||||||||||||||||||||||||||||||
Aerkomm 2017 Plan [Member] | Board of Directors [Member] | Consultants [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 2,000 | ||||||||||||||||||||||||||||||||||||||
Aerkomm 2017 Plan [Member] | Company Executives One [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 32,000 | ||||||||||||||||||||||||||||||||||||||
Description of plan agreements | One-fourth of the 32,000 shares subject to the option shall vest on May 1, 2019, 2020, 2021 and 2022, respectively. | ||||||||||||||||||||||||||||||||||||||
Aerkomm 2017 Plan [Member] | Company Executives Two [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Stock option aggregate shares | 30,000 | ||||||||||||||||||||||||||||||||||||||
Description of plan agreements | One-third of the 30,000 shares subject to the option shall vest on May 29, 2019, 2020 and 2021, respectively. | ||||||||||||||||||||||||||||||||||||||
Aerkomm 2023 Plan [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Exercisable for the 12-month period | 264,230 | ||||||||||||||||||||||||||||||||||||||
Unrecognized stock-based compensation expense (in Dollars) | $ 6,490,000 | ||||||||||||||||||||||||||||||||||||||
Weighted average period | 3 years 8 months 12 days | ||||||||||||||||||||||||||||||||||||||
Aerkomm 2023 Plan [Member] | Board of Directors [Member] | |||||||||||||||||||||||||||||||||||||||
Stock Based Compensation [Line Items] | |||||||||||||||||||||||||||||||||||||||
Term | 10 years | ||||||||||||||||||||||||||||||||||||||
Shares of common stock reserved for issuance | 3,683,929 |
Stock Based Compensation (Det_2
Stock Based Compensation (Details) - Schedule of Assumptions to Estimate the Fair Value of Options Granted | 9 Months Ended |
Sep. 30, 2023 | |
Stock Based Compensation (Details) - Schedule of Assumptions to Estimate the Fair Value of Options Granted [Line Items] | |
Expected dividends | 0% |
Minimum [Member] | |
Stock Based Compensation (Details) - Schedule of Assumptions to Estimate the Fair Value of Options Granted [Line Items] | |
Expected term | 5 years |
Expected volatility | 45.79% |
Risk-free interest rate | 0.69% |
Forfeiture rate | 0% |
Maximum [Member] | |
Stock Based Compensation (Details) - Schedule of Assumptions to Estimate the Fair Value of Options Granted [Line Items] | |
Expected term | 10 years |
Expected volatility | 72.81% |
Risk-free interest rate | 2.99% |
Forfeiture rate | 5% |
Stock Based Compensation (Det_3
Stock Based Compensation (Details) - Schedule of Activities Related to Options Outstanding - Stock Options [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares, Options outstanding at Beginning (in Shares) | 111,871 | 111,871 |
Weighted Average Exercise Price Per Share, Options outstanding at Beginning | $ 3.3521 | $ 3.3521 |
Weighted Average Fair Value Per Share Options outstanding at Beginning | $ 1.0539 | $ 1.0539 |
Number of Shares, Granted (in Shares) | ||
Weighted Average Exercise Price Per Share, Granted | ||
Weighted Average Fair Value Per Share, Granted | ||
Number of Shares, Exercised (in Shares) | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Weighted Average Fair Value Per Share, Exercised | ||
Number of Shares, Forfeited/Cancelled (in Shares) | ||
Weighted Average Exercise Price Per Share, Forfeited/Cancelled | ||
Weighted Average Fair Value Per Share, Forfeited/Cancelled | ||
Number of Shares, Options outstanding at Ending (in Shares) | 111,871 | 111,871 |
Weighted Average Exercise Price Per Share, Options outstanding at Ending | $ 3.3521 | $ 3.3521 |
Weighted Average Fair Value Per Share Options outstanding at Ending | $ 1.0539 | $ 1.0539 |
Stock Based Compensation (Det_4
Stock Based Compensation (Details) - Schedule of Stock Options Outstanding and Exercisable - 3.3521 [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Range of Exercise Prices | $ 3.3521 |
Weighted Average Exercise Price | 3.3521 |
Options Outstanding [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Range of Exercise Prices | $ 3.3521 |
Shares Outstanding at 9/30/2023 (in Shares) | shares | 111,871 |
Weighted Average Remaining Contractual Life (years) | 2 years 9 months |
Weighted Average Exercise Price | $ 3.3521 |
Options Exercisable [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Exercisable at 9/30/2023 (in Shares) | shares | 111,871 |
Weighted Average Remaining Contractual Life (years) | 2 years 9 months |
Weighted Average Exercise Price | $ 3.3521 |
Stock Based Compensation (Det_5
Stock Based Compensation (Details) - Schedule of Activities Related to Options Outstanding - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares, Options outstanding at Beginning (in Shares) | 1,279,688 | 1,207,897 |
Weighted Average Exercise Price Per Share, Options outstanding at Beginning | $ 10.8161 | $ 11.2537 |
Weighted Average Fair Value Per Share Options outstanding at Beginning | $ 7.3194 | $ 7.5309 |
Number of Shares, Granted (in Shares) | 805,103 | 162,000 |
Weighted Average Exercise Price Per Share, Granted | $ 2.5605 | $ 8.1566 |
Weighted Average Fair Value Per Share Granted | $ 1.9779 | $ 6.332 |
Number of Shares, Exercised (in Shares) | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Weighted Average Fair Value Per Share Exercised | ||
Number of Shares, Forfeited/Cancelled (in Shares) | (90,209) | |
Weighted Average Exercise Price Per Share, Forfeited/Cancelled | $ 11.9003 | |
Weighted Average Fair Value Per Share Forfeited/Cancelled | $ 8.3775 | |
Number of Shares, Options outstanding at Ending (in Shares) | 2,084,791 | 1,279,688 |
Weighted Average Exercise Price Per Share, Options outstanding at Ending | $ 7.6279 | $ 10.8161 |
Weighted Average Fair Value Per Share Options outstanding at Ending | $ 5.2566 | $ 7.3194 |
Stock Based Compensation (Det_6
Stock Based Compensation (Details) - Schedule of Activities Related to Unvested Stock Awards - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares, Options unvested, Beginning | 11,000 | 40,194 |
Weighted Average Fair Value Per Share, Beginning | $ 3.507 | $ 8.9422 |
Number of Shares, Granted | 805,103 | 162,000 |
Weighted Average Fair Value Per Share, Granted | $ 1.9779 | $ 6.332 |
Number of Shares, Vested | (95,279) | (183,194) |
Weighted Average Fair Value Per Share, Vested | $ 2.2208 | $ 6.7206 |
Number of Shares, Forfeited/Cancelled | (8,000) | |
Weighted Average Fair Value Per Share, Forfeited/Cancelled | $ 14.4305 | |
Number of Shares, Options unvested, Ending | 720,824 | 11,000 |
Weighted Average Fair Value Per Share, Ending | $ 1.9691 | $ 3.507 |
Stock Based Compensation (Det_7
Stock Based Compensation (Details) - Schedule of Stock Options Outstanding and Exercisable - Equity Option [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Outstanding | shares | 2,084,791 |
Weighted Average Exercise Price | $ / shares | $ 7.6279 |
Shares Exercisable | shares | 1,363,967 |
Weighted Average Exercise Price | $ / shares | $ 10.3115 |
2.55 – 4.30 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Outstanding | shares | 1,310,353 |
Weighted Average Remaining Contractual Life (years) | 8 years 6 months 7 days |
Weighted Average Exercise Price | $ / shares | $ 3.0799 |
Shares Exercisable | shares | 589,529 |
Weighted Average Remaining Contractual Life (years) | 7 years 2 months 12 days |
Weighted Average Exercise Price | $ / shares | $ 3.7279 |
6.00 – 10.00 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Outstanding | shares | 419,288 |
Weighted Average Remaining Contractual Life (years) | 7 years 7 months 9 days |
Weighted Average Exercise Price | $ / shares | $ 8.3356 |
Shares Exercisable | shares | 419,288 |
Weighted Average Remaining Contractual Life (years) | 7 years 7 months 9 days |
Weighted Average Exercise Price | $ / shares | $ 8.3356 |
11.00 – 14.20 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Outstanding | shares | 126,150 |
Weighted Average Remaining Contractual Life (years) | 6 years 6 months |
Weighted Average Exercise Price | $ / shares | $ 11.4688 |
Shares Exercisable | shares | 126,150 |
Weighted Average Remaining Contractual Life (years) | 6 years 6 months |
Weighted Average Exercise Price | $ / shares | $ 11.4688 |
20.50 – 27.50 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Outstanding | shares | 109,000 |
Weighted Average Remaining Contractual Life (years) | 4 years 10 days |
Weighted Average Exercise Price | $ / shares | $ 25.4982 |
Shares Exercisable | shares | 109,000 |
Weighted Average Remaining Contractual Life (years) | 4 years 10 days |
Weighted Average Exercise Price | $ / shares | $ 25.4982 |
30.00 – 35.00 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Outstanding | shares | 120,000 |
Weighted Average Remaining Contractual Life (years) | 3 years 9 months 18 days |
Weighted Average Exercise Price | $ / shares | $ 34.5479 |
Shares Exercisable | shares | 120,000 |
Weighted Average Remaining Contractual Life (years) | 3 years 9 months 18 days |
Weighted Average Exercise Price | $ / shares | $ 34.5479 |
Stock Based Compensation (Det_8
Stock Based Compensation (Details) - Schedule of Activities Related to Options Outstanding - Aerkomm 2023 Plan [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Shares, Options outstanding at Beginning (in Shares) | shares | |
Weighted Average Exercise Price Per Share, Options outstanding at Beginning | |
Weighted Average Fair Value Per Share Options outstanding at Beginning | |
Number of Shares, Granted (in Shares) | shares | 3,665,179 |
Weighted Average Exercise Price Per Share, Granted | $ 2.5915 |
Weighted Average Fair Value Per Share Granted | $ 2.0099 |
Number of Shares, Exercised (in Shares) | shares | |
Weighted Average Exercise Price Per Share, Exercised | |
Weighted Average Fair Value Per Share Exercised | |
Number of Shares, Forfeited/Cancelled (in Shares) | shares | |
Weighted Average Exercise Price Per Share, Forfeited/Cancelled | |
Weighted Average Fair Value Per Share Forfeited/Cancelled | |
Number of Shares, Options outstanding at Ending (in Shares) | shares | 3,665,179 |
Weighted Average Exercise Price Per Share, Options outstanding at Ending | $ 2.5915 |
Weighted Average Fair Value Per Share Options outstanding at Ending | $ 2.0099 |
Stock Based Compensation (Det_9
Stock Based Compensation (Details) - Schedule of Activities Related to Unvested Stock Awards - Aerkomm 2023 Plan [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Shares, Options unvested, Beginning | shares | |
Weighted Average Fair Value Per Share, Beginning | $ / shares | |
Number of Shares, Granted | shares | 3,665,179 |
Weighted Average Fair Value Per Share, Granted | $ / shares | $ 2.0099 |
Number of Shares, Vested | shares | (264,230) |
Weighted Average Fair Value Per Share, Vested | $ / shares | $ 2.0247 |
Number of Shares, Forfeited/Cancelled | shares | |
Weighted Average Fair Value Per Share, Forfeited/Cancelled | $ / shares | |
Number of Shares, Options unvested, Ending | shares | 3,400,949 |
Weighted Average Fair Value Per Share, Ending | $ / shares | $ 2.0087 |
Stock Based Compensation (De_10
Stock Based Compensation (Details) - Schedule of Stock Options Outstanding and Exercisable | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Range of Exercise Prices | $ 2.58 |
Range of Exercise Prices | $ 2.89 |
Options Outstanding [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Outstanding (in Shares) | shares | 3,665,179 |
Weighted Average Remaining Contractual Life (years) | 9 years 8 months 12 days |
Weighted Average Exercise Price | $ 2.5915 |
Options Exercisable [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Shares Exercisable (in Shares) | shares | 264,230 |
Weighted Average Remaining Contractual Life (years) | 9 years 8 months 19 days |
Weighted Average Exercise Price | $ 2.6106 |
Commitments (Details)
Commitments (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 29, 2022 TWD ($) shares | Mar. 25, 2022 CNY (¥) | Nov. 24, 2020 CNY (¥) | Nov. 30, 2018 USD ($) | Jun. 20, 2018 USD ($) | Jun. 20, 2018 CNY (¥) | Sep. 30, 2023 | Dec. 31, 2022 USD ($) | |
Commitments [Line Items] | ||||||||
Equity sales contract shares | shares | 25,500,000 | |||||||
Equity purchase | $ 255,000,000 | $ 9,023,354 | ||||||
Sheng-Chun Chang [Member] | ||||||||
Commitments [Line Items] | ||||||||
Equity owner percentage | 10% | |||||||
Republic Engineers Complaint [Member] | ||||||||
Commitments [Line Items] | ||||||||
Aggregate purchase price | $ | $ 10,000,000 | |||||||
Yihe Agreements [Member] | ||||||||
Commitments [Line Items] | ||||||||
Compensation | $ 1,200,000 | ¥ 8,000,000 | ||||||
Yihe Culture Media Agreement [Member] | ||||||||
Commitments [Line Items] | ||||||||
Arbitration action, description | On October 16, 2020, in accordance with the provisions of the agreement with Yihe, as supplemented, the Company filed an arbitration action with the Shenzhen International Arbitration Court, or the Arbitration Court, claiming that Yihe failed to perform under the terms of the supplemented agreement and seeking a complete refund of its RMB 8 million payment to Yihe. The Company received notice from the Arbitration Court on October 16, 2020 of receipt of its arbitration filing and the requirement to pay the Arbitration Court RMB 190,000 in fees relating to the arbitration. These fees were paid on October 28, 2020. The Company intends to aggressively pursue this matter. | |||||||
Repay amount by Yihe to the company | ¥ 7,500,000 | |||||||
Reimburse amount for court costs | ¥ 178,125 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 05, 2023 | |
Subsequent Events (Details) [Line Items] | ||
Common stock subscription agreement, description | On December 21, 2023, the Company received the amount of $5,004,000 in its Panshin Bank account from two separate investors under a Common Stock Subscription Agreement. | |
Forecast [Member] | Minimum [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Consideration amount | $ 300 | |
Contingent value | 150 | |
Forecast [Member] | Maximum [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Consideration amount | 400 | |
Contingent value | $ 200 | |
Business Combination [Member] | Forecast [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Percentage of outstanding equity acquired | 100% |