RELATED PARTY TRANSACTIONS |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 10 – RELATED PARTY TRANSACTIONS
From time to time, the Company borrows from the President of the Company and his wife for its normal business operations. As of December 31, 2023, the balance of the loan due to our President was $71,165. During the year ended December 31, 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 due to the fluctuation in foreign exchange. During the year ended December 31, 2025, the President paid $663 in expenses on behalf of the Company, and the Company repaid the $663 back to the President. As of December 31, 2025, the balance of the loan due to our President was $5,575.
During the year ended December 31, 2024, the Company received advances of $21,319 and made repayments of $146,942 to the wife of President of the Company. During the year ended December 31, 2025, the Company received advances of $75,743 and made repayments of $72,930 to the wife of President. As of December 31, 2025 and 2024, the amount owed to this related party by the Company totaled $2,890 and $, respectively. The amount due to this related party is unsecured, non-interest-bearing and due on demand.
During the year ended December 31, 2024, the Company recognized compensation expenses of $12,508, $11,119 and $21,682 to the President, his wife and daughter, respectively. During the year ended December 31, 2025, the Company recognized compensation expenses of $26,715, $17,809 and $23,152 to the President, his wife and daughter, respectively. As of December 31, 2025 and 2024, the compensation payable to these related parties totaled $40,432 and $14,193, which was included in accounts payable and accrued liabilities on the consolidated balance sheet.
During the year ended December 31, 2023, HWAC purchased inventory in the total amount of $40,373 from 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. As of December 31, 2025 and 2024, the amount payable to HZWY totaled $2,618 and $6,850, respectively, which was included in accounts payable and accrued liabilities on the consolidated balance sheet.
For the year ended December 31, 2025, the Company recognized offline product sales to Fang Zhang, a shareholder of the Company, totaling $24,627. As of December 31, 2025, accounts receivable from related parties were $28,597, all of which were subsequently collected in full during the first quarter of 2026.
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