RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS
From time to time, the Company borrows from the President of the Company and his wife for its normal business operations. The borrowing bear is unsecured, non-interest-bearing and due on demand. As of December 31, 2023, the balance of the loan due to our President was $71,165. During the six months ended June 30, 2024, the Company repaid $64,770 (RMB 465,544) to the President. As of December 31, 2024, the balance of the loan due to our President was $5,575, with difference of $820 due to the fluctuation in foreign exchange. During the six months ended June 30, 2025, the President paid $365 in expenses on behalf of the Company. As of June 30, 2025, the balance of the loan due to our President was $5,944, with a difference of $4 due to the fluctuation of foreign exchange.
During the six months ended June 30, 2024, the Company received advances of $20,097 and made repayments of $131,062 to the wife of the President of the Company. During the six months ended June 30, 2025, the Company received advances of $50,603 and made repayments of $31,205. As of June 30, 2025 and December 31, 2024, the amount owed to this related party by the Company totaled $19,639 and $, respectively. The difference of $240 is due to the fluctuation of foreign exchange. The amount due to this related party is unsecured, non-interest-bearing and due on demand.
The President’s wife further paid expenses in the total amount of $2,868 on behalf of the Company during the three months ended March 31, 2024. This amount has been included in the balance of accounts payable and accrued liabilities on the consolidated balance sheet as of June 30, 2024. The amount is unsecured, non-interest-bearing and due on demand.
During the six months ended June 30, 2025 and 2024, the Company recognized employee compensation expenses of $25,150 and $4,341, respectively, to the related parties including the President, his wife and daughter. During the three months ended June 30, 2025 and 2024, the Company recognized employee compensation expenses of $ and $. As of June 30, 2025 and December 31, 2024, the compensation payable to these related parties totaled $22,942 and $14,193, respectively, which was included in accounts payable and accrued liabilities on the consolidated balance sheet.
The Company conducted offline product sales to a closed relative of the President’s wife, totaling $16,710 for the three months ending March 31, 2024. As of December 31, 2024, the entire sales transaction was paid off by the related party. The Company conducted offline product sales to a related party, totaling $365 for the three months ending June 30, 2024. As of June 30, 2024, the entire sales transaction was paid off by the related party.
As of June 30, 2025 and December 31, 2024, the amount payable to Hangzhou Wenyuan Yiyun Media Co., Ltd. (FKA: Hangzhou Longwen Culture Media Ltd.) (“HZWY”)”), an entity under the control by the daughter of the President of the Company, totaled $2,556 and $6,850, respectively, which was included in accounts payable and accrued liabilities on the consolidated balance sheet. The amount payable was due to the purchase of inventory from HZWY from prior year.
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