PROPERTY AND EQUIPMENT, NET |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROPERTY AND EQUIPMENT, NET | NOTE 5 – PROPERTY AND EQUIPMENT, NET
As of December 31, 2025 and 2024, property and equipment consisted of the following:
On September 28, 2022, the Company consummated an office suite purchase agreement with a third party. 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. The cost of the office suite was measured at the fair value of the issued common stocks on the closing date of $265,178 less value-added tax of $2,108. The difference of $6,697 between the addition of $263,070 and the cost as of December 31, 2024 is due to the fluctuation of the foreign exchange rate. The difference of $4,506 between the addition of $263,070 and the cost as of December 31, 2025 is due to the fluctuation of the foreign exchange rate. The office space is intended for internal use. Upon closing of the agreement, the Company agreed to act as the guarantor for the liability owed by the third party in the amount of $271,673 (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 third party. The litigation has not concluded. During the year ended December 31, 2024, the Company recognized a litigation loss of $264,071. During the year ended December 31, 2025, the office suite was forced for legal action due to the litigation case ongoing, as such the Company loss control over the property.
Depreciation expenses were $18,435 and $12,523 for the years ended December 31, 2025 and 2024, respectively, which were included in selling, general and administrative expenses on the consolidated statements of operations and other comprehensive income. The difference with the change in accumulated depreciation was due to fluctuation in the exchange rate. During the year ended December 31, 2025, the Company impaired property of $6,207, resulting impairment loss of $6,040. The difference is due to the translation.
WENYUAN GROUP CORP. AND SUBSIDIARY (FORMERLY KNOWN AS LONGWEN GROUP CORP. AND SUBSIDIARY)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||