Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 14 – Related Party Transactions
On September 30, 2011, Diamond Bar leased a showroom in High Point, North Carolina from the Company’s former President, Chief Executive Officer and Chairperson of the Board (resigned during 2025). The lease is renewable and has been renewed each year since 2011. On April 1, 2025, the Company renewed the lease for an additional one year term at a cost of $41,000. During the three months ended June 30, 2026 and 2025, the Company recorded rental amounts of $10,250 and $10,250, respectively, which were included in selling expenses.
On January 4, 2018, the Company entered into a sales representative agreement with a consulting firm, which is owned by the former President, Chief Executive Officer and Chairperson of the Board, for sales representative service for a term of two years. On January 4, 2020, the Company renewed the agreement for an additional two years which was amended in July 2020. If not terminated during the first year, the agreement will continue until one party or the other terminates the agreement with 30 days written notice. The Company agreed to compensate the consulting firm via commission at predetermined rates of the relevant sales amount. During the six months ended June 30, 2026 and 2025, the Company recorded $109,330 and $173,792 as commission expense to this consulting firm, respectively; and $51,222 and $90,356 as commission expense to this consulting firm, respectively.
In February 2024, the Company entered into a loan agreement in the aggregate amount of $200,000 with a shareholder of the Company. The loan was in the form of a promissory note dated on February 21, 2024, matures on February 20, 2025, and bears interest at a rate of 8.5% per annum. The proceed of the loan is used for working capital. On February 21, 2025, the Company repaid the loan in the form of shares of common stock. During the six and three months ended June 30, 2025, the Company recorded $1,932 and as interest expense, respectively.
On April 11, 2024, the Company entered into a loan agreement in the aggregate amount of $160,000 with a shareholder of the Company. The loan was in the form of a promissory note dated on April 11, 2024, matures on April 10, 2025, and bears interest at a rate of 8.5% per annum. The proceed of the loan is used for working capital. On April 10, 2025, the Company extended the loan to April 9, 2026. The Company paid off the loan on April 9, 2026. During the six months ended June 30, 2026 and 2025, the Company accrued $4,180 and $7,450 as interest expense, respectively; and $401 and $3885 for the three months ended June 30, 2026 and 2025, as interest expense, respectively.
On April 11, 2025, the Company entered into a loan agreement in the aggregate amount of $200,000 with a shareholder of the Company. The loan was in the form of a promissory note dated on April 11, 2025, matures on April 10, 2026 and has been paid off by the Company, and bears interest at a rate of 8.5% per annum. The proceed of the loan is used for working capital. On April 10, 2026, the Company paid off the loan. During the six months ended June 30, 2026 and 2025, the Company accrued $4,824 and $3,907 as interest expense, respectively; and $483 and $3,907 for the three months ended June 30, 2026 and 2025 as interest expense, respectively.
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