| LOANS |
NOTE 10 — LOANS Short-term bank loans On March 24, 2025, Xinjiang United Family entered into a loan agreement with Huaxia Bank to borrow RMB3.0 million ($428,844) as working capital for a year, with a maturity date of March 24, 2026. This loan bears a fixed interest rate of 3.5% per annum. The loan was guaranteed by Ms. Baolin Wang, the legal representative of Xinjiang United Family, and Urumqi Meihe Cancer Rehabilitation Hospital Co., Ltd., a related party controlled by a family member of the Company’s Chairman, Mr. Gang Li. The loan was repaid in full upon maturity. Subsequently, on March 23, 2026, Xinjiang United Family entered into another loan agreement with Huaxia Bank to borrow RMB2.5 million ($368,051) as working capital for one year, with a maturity date of March 23, 2027. The loan bears a fixed interest rate of 3.0% per annum. The loan was guaranteed by Ms. Baolin Wang, Mr. Gang Li and Urumqi Meihe Cancer Rehabilitation Hospital Co., Ltd. Long-term bank loans Long-term bank loans consisted of the following: | | | June 30,
2026 | | | December 31,
2025 | | | | | (Unaudited) | | | | | | Tianshan Rural Commercial Bank (1) | | $ | 3,003,295 | | | $ | 3,030,498 | | | Bank of China (2) | | | 1,972,752 | | | | 1,986,977 | | | Total long-term bank loans | | $ | 4,976,047 | | | $ | 5,017,475 | | | | | | | | | | | | | Long-term bank loans - current | | $ | 3,032,739 | | | $ | 371,665 | | | | | | | | | | | | | Long-term bank loans - non-current | | $ | 1,943,308 | | | $ | 4,645,810 | | | (1) | On January 22, 2025, Xinjiang United Family entered into a loan agreement with Tianshan Rural Commercial Bank to borrow RMB12.0 million ($1,766,644) as working capital for three years, with a maturity date of January 19, 2028. The loan bears a fixed interest rate of 5.0% per annum. The Company is required to make a semi-annual installment payment of RMB0.6 million ($88,332) within the term of the loan, with last installment of RMB9.0 million ($1,324,983) to be paid at maturity date. The loan is guaranteed by Mr. Gang Li and his family member, Ms. Ying Xiong, as well as Urumqi Plastic Surgery Hospital Co., Ltd., a related party that is controlled by Mr. Gang Li. On March 24, 2025, Xinjiang United Family entered into another loan agreement with Tianshan Rural Commercial Bank to borrow RMB10.0 million ($1,472,203) as working capital for two years, with a maturity date of March 23, 2027. The loan bears a fixed interest rate of 4.5% per annum. The Company is required to make a semi-annual installment payment of RMB0.2 million ($29,444) within the term of the loan, with last installment of RMB9.4 million ($1,383,871) to be paid at maturity date. The loan is guaranteed by Mr. Gang Li and his family member, Ms. Ying Xiong, and Urumqi Mary Maternity and Gynecology Hospital Co., Ltd., a related party that is controlled by Mr. Gang Li. In addition, the loan is also guaranteed by two third-party companies, as well as these two companies’ legal representatives and their family members. As of the date of this report, these two loans were repaid as scheduled. | | (2) | On June 19, 2025, Xinjiang United Family entered into a loan agreement with Bank of China to borrow RMB10.0 million ($1,472,203) as working capital for two years, with a maturity date of June 19, 2027. The loan bears a floating rate of China’s Loan Prime Rate (“LPR”), with every twelve months adjustments starting from the loan disbursement date. The Company is required to make a semi-annual installment payment of RMB 0.3 million ($44,166) within the term of the loan, with last installment of RMB 9.1 million ($1,339,705) to be paid at maturity date. The loan is guaranteed by Mr. Gang Li and his family member, Ms. Ying Xiong. On September 16, 2025, George Chanson Trading entered into a loan agreement with Bank of China to borrow RMB4.2 million ($618,325) as working capital for three years, with a maturity date of September 15, 2028. The loan bears a floating rate of China’s Loan Prime Rate (“LPR”), with every twelve months adjustments starting from the loan disbursement date. The Company is required to make a semi-annual installment payment of RMB 0.2 million ($29,444) within the term of the loan, with last installment of RMB 3.2 million ($471,105) to be paid at maturity date. The loan is guaranteed by Mr. Gang Li and his family member, Ms. Ying Xiong, as well as the other subsidiary of the Company, Xinjiang United Family. As of the date of this report, these two loans were repaid as scheduled. | The future maturities of long-term bank loans as of June 30, 2026 were as follows: | Twelve months ended June 30: | | | | | | | (Unaudited) | | | 2027 | | $ | 3,032,739 | | | 2028 | | | 1,472,203 | | | 2029 | | | 471,105 | | | Total | | $ | 4,976,047 | | For the above-mentioned short-term and long-term bank loans, the Company recorded interest expenses of $110,603 and $74,745 for the six months ended June 30, 2026 and 2025, respectively. The Company is subject to certain customary covenants under its loan agreements. Management has assessed compliance with these covenants as of June 30, 2026 and concluded that the Company was in compliance with all applicable covenants. There were no events of default or breaches identified during the period. Management has assessed compliance with the terms of the loan agreements as of June 30, 2026 and concluded that the Company was in compliance with all applicable repayment and other contractual requirements. No events of default had occurred as of June 30, 2026 that would trigger early repayment or otherwise affect the classification of the borrowings. Management has reviewed the terms of the loan agreements, including provisions related to covenant compliance and potential acceleration, and determined that the classification of the loans between current and non-current is appropriate as of June 30, 2026. Certain of the Company’s borrowings are guaranteed by the Company’s controlling shareholder, Mr. Gang Li, his family member, Ms. Ying Xiong, and entities controlled by Mr. Gang Li. These guarantees were provided to support the Company’s financing arrangements and were not separately compensated.
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