| RELATED PARTY TRANSACTIONS AND BALANCES |
Note 10 - RELATED PARTY TRANSACTIONS AND BALANCES
As of December 31, 2024, related parties of the Company consist of
the following:
| Name of Related Party | | Nature of Relationship | | Yufeng Mi | | Chief Technical Officer (“CTO”) and shareholder | | HongKong Kisen Co., Limited (“HongKong Kisen”) | | Company ultimately controlled by Chief Strategy Officer (“CSO”) |
Due to related parties
The Company mainly finance its operations through
proceeds borrowed from related parties. As of December 31, 2024 and 2023, due to related parties consisted the following:
| | |
December 31, | | |
| | |
| | |
Interest | | |
Exchange
Rate | | |
December 31, | |
| | |
2023 | | |
Received | | |
Repayment | | |
Expenses | | |
Translation | | |
2024 | |
| Yufeng Mi | |
| 4,571 | | |
| | | |
| | | |
| - | | |
| (68 | ) | |
| 4,503 | |
| HongKong Kisen (1) | |
| 9,240,203 | | |
| 962,000 | | |
| (8,021,693 | ) | |
| 9,565 | | |
| 5,873 | | |
| 2,195,948 | |
| Total due to related parties | |
| 9,244,774 | | |
| 962,000 | | |
| (8,021,693 | ) | |
| 9,565 | | |
| 5,805 | | |
| 2,200,451 | |
| (1) | On April 7, 2022, the Company entered into a loan agreement with HongKong Kisen to borrow $10,000,000 at the interest rate of 0.1% for 10 months as working capital support and repaid $2,000,000 to HongKong Kisen in advance in 2022. On January 1, 2023, both parties agreed to terminate the loan agreement mentioned above and obtain borrowings up to $20,000,000 at the interest rate of 0.1% for one year as working capital support. On January 1, 2024, both parties agreed to extend the loan to December 31, 2024. In 2023, the Company borrowed $4,384,975 from
HongKong Kisen and repaid $3,160,000, generating interest expense of $9,316.
In 2024, the Company borrowed $962,000 from
HongKong Kisen and repaid $8,021,693, generating interest expense of $9,565, as of December 31,2024.
The loan mentioned above can be extended on both parties’ consents. |
Apart from loan from HongKong Kisen, the balance
of due to related parties represents expenses incurred by related parties in the ordinary course of business. These amounts are interest
free, unsecured and could be settled on demand.
|