| Related parties |
Note 7. Related parties As of March 31, 2025 and December 31, 2024, the Company has related party transactions with the following affiliates and affiliated entities: Related Party Name | | Relationship | Hui Luo | | Majority owner of the Company | Liu Yi | | Spouse of Hui Luo | Genius Kid Class LLC | | An entity controlled by Yi Liu | Dream Legal Group, Inc | | An entity controlled by Hui Luo | Ideal Force LLC | | An entity controlled by Yi Liu | Dreamgo Inc. | | An entity controlled by Hui Luo |
Due from related parties | | March 31, 2025 | | | December 31, 2024 | | | | | | | | | Dream Legal Group, Inc. | | | 1,830 | | | | 8,251 | | Total due from related parties | | $ | 1,830 | | | $ | 8,251 | |
Due to related parties | | March 31, 2025 | | | December 31, 2024 | | | | | | | | | Yi Liu- accrued interest on promissory note | | $ | 161 | | | $ | — | | Luo Hui-accrued interest on promissory note | | | 3,466 | | | | 2,166 | | Luo Hui – promissory note, due on August 15, 2025; at a rate of 4% per annum | | | 130,000 | | | | 130,000 | | Luo Hui – promissory note, due on March 31, 2026; at a rate of 4% per annum | | | 40,000 | | | | - | | Yi Liu – promissory note, due on March 17, 2026; at a rate of 4% per annum | | | 100,000 | | | | - | | Dream Legal Group, Inc-rent income received in advance | | | 29,800 | | | | - | | Due to Dream Go Inc.* | | | 312,483 | | | | 117,379 | | Total due to related parties - current | | $ | 615,910 | | | $ | 249,545 | |
*During three months ended March 31, 2025, Dream Go Inc advanced $to the Company for operating expenses which is interest free and due on demand. The following table represents related party transactions for the three months ended March 31, 2025 and 2024: | | | | Three Months Ended | | Name | | Business Purpose of Transaction | | March 31, 2025 | | | March 31, 2024 | | Dream Legal Group, Inc | | Sublease income | | $ | 23,471 | | | $ | 15,000 | | Dreamgo Inc. | | Rent expense | | | 90,253 | | | | 90,253 | | Genius Kid Class LLC | | Consulting revenue | | | — | | | | 100,000 | | Yi Liu | | Interest expense | | | 161 | | | | - | | Luo Hui | | Interest expense | | | 1,300 | | | | - | |
Sublease income has been reflected as a reduction of general and administrative expenses in the accompanying consolidated statements of operations. As of March 31, 2025 and December 31, 2024, the Company has the following ROU assets and operating lease liabilities recognized from related party under ASC 842 (Note 4): | | | | March 31, 2025 | | | December 31, 2024 | | Dreamgo Inc. | | ROU assets | | $ | 1,477,021 | | | $ | 1,552,242 | | Dreamgo Inc. | | Short term obligation under operating leases | | $ | (238,119 | ) | | $ | (314,685 | ) | Dreamgo Inc. | | Long term obligation under operating leases | | $ | (1,240,998 | ) | | $ | (1,241,495 | ) |
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