NOTE 5 — SOFTWARE

The Company acquired the software through two transactions: (1) an asset transfer agreement with its former subsidiary, Hanryu Bank Co., Ltd., from which all equity interest was sold in December 2024, and (2) the transfer of the Faning application. The acquisition cost of $4,940,000 was determined based on an independent appraisal. The software is classified as an intangible asset in accordance with ASC 350 – Intangibles—Goodwill and Other, and is being amortized on a straight-line basis over its estimated useful life of five years.

The Company regularly evaluates the recoverability of its software assets. As of June 30, 2025, and December 31, 2024, based on the recoverability analysis, no impairment of the software assets was deemed necessary.

The accumulated amortization and amortization expense related to the software are reported in foreign currency and have been affected by exchange rate fluctuations. The accumulated amortization is reported using the closing exchange rate, while the amortization expense is calculated using the average exchange rate. As a result, differences arising from exchange rate fluctuations occurred. These differences do not reflect an actual change in the value of the asset or additional amortization expense, but rather reflect the impact of exchange rate fluctuations.