PROPERTY AND EQUIPMENT, NET |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant, and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROPERTY AND EQUIPMENT, NET | NOTE 4 – PROPERTY AND EQUIPMENT, NET
As of March 31, 2026 and December 31, 2025, 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 and 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 and therefore, wrote off the office suite.
Depreciation expenses were $1,890 and $4,596 for the three months ended March 31, 2026 and 2025, respectively. The difference with the change in accumulated depreciation was due to exchange difference.
WENYUAN GROUP CORP. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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