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Lease | 12 Months Ended
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Dec. 31, 2024
Lease [Abstract] |
LEASE | NOTE 8 — LEASE The Company uses approximately 19,200 square feet of office space at the Seoul Marina free of charge. Although there is no formal lease agreement, the Company determined that the ASC 842 accounting standard applies and recognized the fair value of the rent-free use of the property through May 2031 as a right-of-use (ROU) asset, with corresponding lease expense recognized in the statement of operations. At the time of initial acquisition from SMC in July 2021, the Company used the following assumptions:
| ● | Annual lease cost: 300,000,000 Korean Won
| ● | 10-year present value calculation
| ● | Assumed annual rent increase: -4.96%
| ● | Interest rate: 3%
| ● | 10-year Korean government bond yield: 2.11%
| ● | Exchange rate: 1,188.5 KRW/USD
Based on the assumptions outlined, the Company calculated the present value of 10 years of free rent to be $2,775,512 and recognized it as a long-term right-of-use (ROU) asset as of June 30, 2021. Since the space was provided free of charge, no lease liability was recognized. The ROU asset was amortized at approximately $23,000 per month over the 10-year lease term. As the Company initially allocated $2,935,658 to the SMC receivable and leasehold rights, an impairment loss of $158,278 was recognized on the ROU asset as of December 31, 2021. In December 2024, the Company sold its entire equity interest in Hanryu Bank Co., Ltd. (“HBC”), a subsidiary that held the rent-free rights to the Seoul Marina building. However, through an asset transfer agreement between the Company and HBC, the Company acquired the rent-free rights to the Seoul Marina building. The transfer amount was based on the net book value of the ROU asset as of the contract date and was offset against the Company’s outstanding loan receivable. As of December 31, 2024, the carrying amount of the ROU asset was $1,458,780. Following the sale of the subsidiary in December 2024, the lease expense has been reclassified to discontinued operations and is not presented in the statements of operations for the years ended December 31, 2024 and 2023.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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