4. Related Party Transactions
|12 Months Ended|
Dec. 31, 2016
|Related Party Transactions [Abstract]|
|Related Party Transactions||
Consulting services from President, Chief Executive Officer, Secretary and Treasurer and Chief Financial Officer
Consulting services provided by the President, Chief Executive Officer, Secretary and Treasurer and Chief Financial Officer for the twelve months ended December 31, 2016 and 2015 were as follows:
Loan from related party
From time to time, Perfecular borrows from a related party entity, Vitashower Corp., which is under common ownership and management. At December 31, 2015, the outstanding loan and accrued interest payable to Vitashower totaled $63,369. This loan also bears an annual interest rate of 5%. This loan was repaid in full during the twelve months ended December 31, 2016.
Sales & Purchase from related party
During 2016, Perfecular facilitated approximately $1,003,891 of sales to one customer, representing 90% of total annual sales. However, in accordance to the Financial Accounting Standard Board Accounting Standards Codification 605-45, the Company should report the net revenue of $216,186. Please refer to Revenue Recognition in Note 2 for additional information.
Currently, Perfecular relies on one supplier in China, a related party manufacturer to supply all merchandise for its sales. Account payable to this vendor accounted for approximately 97% at December 31, 2016.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef