CONTINGENCY |
6 Months Ended |
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Jun. 30, 2025 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| CONTINGENCY | NOTE 8 – CONTINGENCY
On September 28, 2022, the Company consummated an office suite purchase agreement with a third party (the “Seller”). Pursuant to the agreement, the Company issued common stocks of the Company to purchase a 118-square-meter office suite located in Hangzhou City, Zhejiang Province, China. Upon closing of the office suite purchase agreement as described above, Hangzhou Wenyuan agreed to act as a guarantor for the liability owing by the Seller to a creditor in the amount of $264,071 (RMB 1,900,000) associated with the office suite. During the year ended December 31, 2024, the Company was sued by the creditor due to the default by the Seller. On October 22, 2024, The Shangcheng District People’s Court of Hangzhou City, Zhejiang Province, China, ruled that Hangzhou Wenyuan is required to pay the creditor a total amount of approximately $264,071 (RMB 1,900,000). At the same time, the Seller is jointly liable for repayment. After the company’s management team evaluated the situation and considering the possible outcome of the lawsuit, the Company recognized a reserve for litigation loss of $264,071 since the management believe it’s probable. As of June 30, 2025 and December 31, 2024, the Company recorded $265,219 and $260,299, respectively, included in accounts payable and accrued expenses on the consolidated balance sheet. The difference is due to the fluctuation in foreign exchange. As of the date of this report, Hangzhou Wenyuan is in the process of preparing legal materials to initial lawsuits against both the creditor and the Seller. Concurrently, we are also preparing to file a lawsuit in Nevada State to seek the recovery of shares previously issued as part of the purchase consideration.
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