Property and Equipment, Net

3 Months Ended

Mar. 31, 2024

Property and Equipment, Net [Abstract]

Property and Equipment, Net

NOTE 7 - Property and Equipment, Net

As of March 31, 2024 and December 31, 2023, the balances of property and equipment were as follows:

	March 31, 2024			December 31, 2023
	(Unaudited)
Ground station equipment	$	1,854,027		$	1,854,027
Computer software and equipment		2,837,049			2,847,119
Satellite equipment		275,410			275,410
Vehicle		322,033			337,637
Leasehold improvement		83,782			83,827
Furniture and fixture		38,529			38,637
		5,410,830			5,436,657
Accumulated depreciation		(3,145,708	)		(3,085,789	)
Net		2,265,122			2,350,868
Prepayments - land		38,814,576			40,114,286
Prepaid equipment		322,812			324,866
Total	$	41,402,510		$	42,790,020

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 $34,404,930 as of March 31, 2024 and $35,876,858 as of December 31, 2023) in total. The estimated commission payable for the land purchase in the amount of NT$42,251,900 (approximately $1,323,267 as of March 31, 2024 and 1,379,879 as of December 31, 2023) was recorded to the cost of land. The company is also 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 May 22, 2024, the qualified license applications are still in progress. 

On November 15, 2022, the Company entered into another real estate sale contract (the “Land Purchase Contract 2”) with Hsu Rong-Tang (the “Seller 2”) with respect to the acquisition by Aircom Telecom of a parcel of land located in Taiwan. The land is expected to be used for Aerkomm’s future projects. As of March 31, 2024, the Company paid to the Seller 2 installments prepayments of NT$140,800,000 (approximately $4,409,646 as of March 31, 2024) in total.

Depreciation expense was $72,051 and $181,652 for the three months periods ended March 31, 2024 and 2023, respectively.