Discontinued Operations

12 Months Ended

Dec. 31, 2024

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

Note 4 - DISCONTINUED OPERATIONS

As discussed in Note 1, on September 28, 2023, Cordyceps Sunshine Biotech Holdings Co., Ltd. (the “Company”), entered into a share purchase agreement (the “Agreement”) with Mr. Xusheng Niu (“Mr. Niu”), Cordyceps Sunshine Biotech Co., Ltd. (Hong Kong), a company incorporated under the laws of Hong Kong (the “Target”), and Chengdu Skyherb Biotechnology Co., Ltd. (China), a wholly foreign-owned enterprise formed under the laws of the People’s Republic of China and a wholly-owned subsidiary of the Target. Pursuant to the Agreement, the Company agreed to sell, and Mr. Niu agreed to purchase, 100% equity interest in the Target, in exchange for cancelling the debt (the “Transaction”) in a total amount of $1,152,328.5 (RMB8,411,156.95) (the “Debt”). The Debt was resulted from several loan agreements entered into by the Company and Mr. Niu since June 29, 2020. Pursuant to those loan agreement, Mr. Niu borrowed and made payments to fund the Company. Upon the closing of the Transaction, Mr. Niu agreed to release the Company from the obligation to repay the Debt and the Debt shall be deemed paid in full.

The carrying amount of the major classes of assets and liabilities of discontinued operation as of December 31, 2023 and 2022 consist of the following:

		September 30,				December 31,
		2023				2022
Assets of discontinued operation:
Current Assets:
Cash and cash equivalents		$	63			$	9,472
Accounts receivable, net			2,790				149,510
Others receivable			3,189				3,378
Advances and prepayments to suppliers			3,860				5,431
Inventory			45,803				313,530
Subtotal current assets from discontinued operation			55,705				481,321
Property, plant and equipment, net			1,180,994				1,349,625
Total assets from discontinued operation		$	1,236,699			$	1,830,946

Liabilities of discontinued operation:
Current Liabilities:
Accounts payable		$	766,138			$	751,135
Accounts payable - related party			-				263,628
Accrued expenses			82,915				62,754
Other current liabilities			100,402				8,227
Subtotal current liabilities			949,455				1,085,744
Total liabilities of discontinued operation		$	949,455			$	1,085,744

The summarized operating result of discontinued operations included in the Company’s consolidated statements of operations consist of the following:

		For the nine months ended				For the Year ended
		September 30,				December 31,
		2023				2022

Sales		$	299,881			$	395,481
Costs of goods sold			349,810				501,711
Gross Profit (Loss)			(49,929	)			(106,230	)
Selling expenses			-				3,441
General and administrative expenses			232,890				117,910
Total Operating Expenses			232,890				121,351
Other income (expenses)			58				(76,609	)
Loss before income tax			(282,761	)			(304,190	)
Income tax expense			-				792
Loss from discontinued operation		$	(282,761	)			(304,982	)
Gain from disposal, net of tax			865,085				-
Total gain (loss) from discontinued operations, net of income taxes		$	582,324			$	(304,982	)

The Company realized a gain of $865,085 from the disposal of 100% equity of Cordyceps Sunshine Biotech Co., Ltd. (Hong Kong), including its subsidiary, Chengdu Skyherb Biotechnology Co., Ltd. (China), offset by loss from discontinued operations of $282,761 in the year ended December 31, 2023. As the result, total gain from discontinued operation for the year ended December 31, 2023 amounted $582,324. The Company reclassified Cordyceps Sunshine Biotech Co., Ltd. (Hong Kong) and its subsidiary as discontinued operation and recorded a net gain of $582,324 from discontinued operation in the year ended December 31, 2023.