NOTE 6. Related Party Transactions
Mr. Dean Li, President and Shareholder of XiAn TV, had advanced $29,300 and $200,850 to the Company during the years ended June 30, 2012 and 2011, respectively. As of June 30, 2012 and 2011, the outstanding shareholder loan balances were $34,198 and $206,400, respectively.
The shareholder loan discussed above is non-secured, free of interest with no maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on annual interest rate in the range of 5.94-6.56% with reference to one-year loan.
The Company also leased an office space from a former shareholder with a monthly rent of approximately $950 with lease termination date of May 7, 2014 (See Note 10 for details).