Disposal of Subsidiaries and Discontinued Operations

6 Months Ended

Jun. 30, 2025

Disposal of Subsidiaries and Discontinued Operations [Abstract]

DISPOSAL OF SUBSIDIARIES AND DISCONTINUED OPERATIONS

NOTE 14 — DISPOSAL OF SUBSIDIARIES AND DISCONTINUED OPERATIONS

Hanryu Bank Co. Ltd (“HBC”) sold 100% of its shares in FNS Co. Ltd for $733 and Marin Island Co. Ltd for $367 on November 5, 2024, to improve its financial structure. Additionally, Global Interactive Technologies, Inc. (“the Company”) sold 100% of its shares in Hanryu Bank Co. Ltd (“HBC”) for $2,200 on December 28, 2024. From the date of these sales, the three subsidiaries are no longer included in the consolidated financial statements and are classified as discontinued operations. A gain of $18,832,006 was recognized from the disposal of the shares in these three subsidiaries.

The following table outlines the calculation of the gain on disposal related to the sale of the subsidiaries on November 5, 2024, and December 28, 2024.

	As of December 28, 2024
Consideration received (sale price)	$	3,300
The carrying amount of any noncontrolling interest		—
Net liabilities		11,502,964
foreign exchange difference		894,109
Gain on disposal of subsidiaries	$	12,400,373

1. In connection with the deconsolidation of Hanryu Bank Co.Ltd in 2024, the Company reclassified $7,164,430 of Additional Paid-in Capital to Accumulated Deficit, in accordance with ASC 810-10-40. This amount was arouse from group restructuring of the same subsidiary’s equity at the consolidated level, resulting from differences between the subsidiary’s equity structure and the consolidated equity accounts. The reclassification is reflected in the Consolidated Statement of Stockholders’ Equity for the year ended December 31, 2024.

2. The gain or loss on the disposal of investments in subsidiaries was calculated based on the difference between the consideration received and the net assets of the subsidiaries. In this process, the net assets of the subsidiaries were translated using the exchange rate as of December 31, 2024, while the gain or loss on disposal was calculated using the average exchange rate for the year 2024. As a result, a foreign exchange difference arose due to the use of different exchange rates. This difference was not recognized separately as a foreign exchange gain or loss, but was included in the gain or loss on disposal.

The financials of the three companies for the years ended December 31, 2024 are as follows.

	December 31, 2024
CURRENT ASSETS:	$	39,653,805
Cash and Cash Equivalents		1,408
Short-term loans		26,550,250
Accounts receivable, net of allowance		5,971,432
Non-trade receivables		24,320
Prepaid expenses and other receivables		7,106,395
PROPERTY PLANTAND EQUIPMENT, NET		247,188
Operating lease right-of-use asset		—
Other Asset		216,258
Total Assets	$	40,117,251

CURRENT LIABILITIES:	$	51,620,215
Short-term borrowings		40,248,754
Non-trade accounts payable		8,211,344
Bonds with Warrants		3,061,224
Accrued expenses and other current liabilities		98,893
Total Liabilities	$	51,620,215
Total Stockholder’s Equity (Deficiency)	$	(11,502,964	)

	December 31, 2024
Sales		196
Cost of Revenue		—
Gross profit (Loss)	$	196
OPERATING EXPENSES:		1,489,006
OPERATING LOSS		(1,488,810	)
OTHER INCOME(EXPENSE):		100,492

Net loss before taxes		(1,338,318	)
Income tax expense		—
NET INCOME(LOSS)	$	(1,338,318	)