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Disposal of Subsidiaries and Discontinued Operations | 12 Months Ended
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Dec. 31, 2024
Disposal of Subsidiaries and Discontinued Operations [Abstract] |
DISPOSAL OF SUBSIDIARIES AND DISCONTINUED OPERATIONS | NOTE 18 — DISPOSAL OF SUBSIDIARIES AND DISCONTINUED OPERATIONS Hanryu Bank Co. Ltd (“HBC”) sold 100% of its shares in FNS Co. Ltd for $733 and Marin Island Co. Ltd for $367 on November 5, 2024, to improve its financial structure. Additionally, Global Interactive Technologies, Inc. (“the Company”) sold 100% of its shares in Hanryu Bank Co. Ltd (“HBC”) for $2,200 on December 28, 2024. From the date of these sales, the three subsidiaries are no longer included in the consolidated financial statements and are classified as discontinued operations. A gain of $18,832,006 was recognized from the disposal of the shares in these three subsidiaries. The following table outlines the calculation of the gain on disposal related to the sale of the subsidiaries on November 5, 2024, and December 28, 2024.
|  | As of December 28, 2024 |
Consideration received (sale price) |  | $ | 3,300 |
The carrying amount of any noncontrolling interest |  |  | — |
Net liabilities |  |  | 11,502,964 |
foreign exchange difference |  |  | 894,109 |
Gain on disposal of subsidiaries |  | $ | 12,400,373 |
1. In connection with the deconsolidation of Hanryu Bank Co.Ltd in 2024, the Company reclassified $7,164,430 of Additional Paid-in Capital to Accumulated Deficit, in accordance with ASC 810-10-40. This amount was arouse from group restructuring of the same subsidiary’s equity at the consolidated level, resulting from differences between the subsidiary’s equity structure and the consolidated equity accounts. The reclassification is reflected in the Consolidated Statement of Stockholders’ Equity for the year ended December 31, 2024. 2. The gain or loss on the disposal of investments in subsidiaries was calculated based on the difference between the consideration received and the net assets of the subsidiaries. In this process, the net assets of the subsidiaries were translated using the exchange rate as of December 31, 2024, while the gain or loss on disposal was calculated using the average exchange rate for the year 2024. As a result, a foreign exchange difference arose due to the use of different exchange rates. This difference was not recognized separately as a foreign exchange gain or loss, but was included in the gain or loss on disposal. The financials of the three companies for the years ended December 31, 2024 and December 31, 2023 are as follows.
|  | December 31, 2024 |  |  | December 31, 2023 |
CURRENT ASSETS: |  | $ | 39,653,805 |  |  | $ | 17,415,555 |
Cash and Cash Equivalents |  |  | 1,408 |  |  |  | 5,358,142 |
Short-term loans |  |  | 26,550,250 |  |  |  | 3,658,820 |
Accounts receivable, net of allowance |  |  | 5,971,432 |  |  |  | 324,413 |
Non-trade receivables |  |  | 24,320 |  |  |  | 171,893 |
Prepaid expenses and other receivables |  |  | 7,106,395 |  |  |  | 7,902,287 |
PROPERTY PLANTAND EQUIPMENT, NET |  |  | 247,188 |  |  |  | 505,155 |
Operating lease right-of-use asset |  |  | — |  |  |  | 1,918,966 |
Other Asset |  |  | 216,258 |  |  |  | 379,735 |
Total Assets |  | $ | 40,117,251 |  |  | $ | 20,219,411 |
CURRENT LIABILITIES: |  | $ | 51,620,215 |  |  | $ | — |
Short-term borrowings |  |  | 40,248,754 |  |  |  | 1,589,887 |
Non-trade accounts payable |  |  | 8,211,344 |  |  |  | 2,312,669 |
Bonds with Warrants |  |  | 3,061,224 |  |  |  | 3,489,995 |
Accrued expenses and other current liabilities |  |  | 98,893 |  |  |  | 83,940 |
Total Liabilities |  | $ | 51,620,215 |  |  | $ | 7,476,491 |
Total Stockholder’s Equity (Deficiency) |  | $ | (11,502,964 | ) |  | $ | 12,742,920 |
|  | December 31, 2024 |  |  | December 31, 2023 |
Sales |  |  | 196 |  |  |  | 827,489 |
Cost of Revenue |  |  | — |  |  |  | 79,097 |
Gross profit (Loss) |  | $ | 196 |  |  | $ | 748,392 |
OPERATING EXPENSES: |  |  | 1,489,006 |  |  |  | 10,483,401 |
OPERATING LOSS |  |  | (1,488,810 | ) |  |  | (9,735,009 | )
OTHER INCOME(EXPENSE): |  |  | 100,492 |  |  |  | (2,178,706 | )
Net loss before taxes |  |  | (1,338,318 | ) |  |  | (7,556,303 | )
Income tax expense |  |  | — |  |  |  | — |
NET INCOME(LOSS) |  | $ | (1,338,318 | ) |  | $ | (7,556,303 | )

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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