RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS
From time to time, the Company borrows from the President of the Company and his wife for its normal business operations. The borrowing bear is unsecured, non-interest-bearing and due on demand. As of December 31, 2025, the total loans payable to these related parties were $8,465. During the six months ended June 30, 2026 and 2025, the advances from these two related parties were $6,169 and $50,968, respectively. The total repayments to these two related parties were $6,818 and $31,205, respectively, for the six months ended June 30, 2026 and 2025. As of June 30, 2026, the balance of the loan due to our President was $9,082, with a difference of $118 due to the fluctuation of foreign exchange.
During the six months ended June 30, 2026 and 2025, the Company recognized employee compensation expenses of $ and $, respectively, to the related parties including the President, his wife and daughter. During the three months ended June 30, 2026 and 2025, the Company recognized employee compensation expenses of $ and $. As of June 30, 2026 and December 31, 2025, the compensation payable to these related parties totaled $61,804 and $40,432, respectively, 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 June 30, 2026 and December 31, 2025, the amount payable to HZWY totaled $2,672 and $2,618, respectively, which was included in accounts payable and accrued liabilities on the consolidated balance sheet.
During the year ended December 31, 2025, the Company had offline product sales from related parties totaling $24,627. As of December 31, 2025, the accounts receivable from related parties was $28,597. The amount was unsecured, non-interest-bearing and due on demand. As of June 30, 2026, the amount was paid in full.
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