v3.26.3
PROPERTY AND EQUIPMENT, NET
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

NOTE 4 – PROPERTY AND EQUIPMENT, NET

 

As of June 30, 2026 and December 31, 2025, property and equipment consisted of the following:

 

   June 30, 2026   December 31, 2025 
         
Equipment  $37,592   $36,995 
Property       267,576 
Less: accumulated depreciation   (19,357)   (47,902)
Less: write-off for litigation      (235,268)
Less: impairment   (6,398)   (6,207)
Total property and equipment, net  $11,837   $15,194 

 

On September 28, 2022, the Company consummated an office suite purchase agreement with a third party. Pursuant to the agreement, the Company issued 2,651,780 common stocks of the Company to purchase a 118-square-meter office suite located in Hangzhou City, Zhejiang Province, China. 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 $3,423 and $8,823 for the six months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026 and 2025, the depreciation expenses were $1,533 and $4,227, respectively. The difference with the change in accumulated depreciation was due to exchange difference.

 

 

WENYUAN GROUP CORP. AND SUBSIDIARIES

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS