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Related Party Transactions
 6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 6 – RELATED PARTY TRANSACTIONS

 

A member of the Company’s board of directors (“Board”) had previously advanced to the Company an aggregate amount of $1,354,567 as of June 30, 2023 and December 31, 2022 which is recorded as “Borrowings from related parties” on the accompanying unaudited interim condensed consolidated balance sheets. The advances bear interest at a rate of 1.0% per year.  Total interest expense for each of the three months ended June 30, 2023 and 2022 was $3,387 and $3,387, respectively and $6,773 and $6,773 for the six months ended June 30, 2023 and 2022, respectively. Compensation and interest payable to the board member is included in “Other payables” in the accompanying unaudited interim condensed consolidated balance sheet totaling $375,351 and $372,578 as of June 30, 2023 and December 31, 2022, respectively.

 

The Company had previously received advances from its Chairperson, Chief Executive Officer and Interim Chief Financial Officer. Total amounts owed were $1,095,956 and $1,121,273 and are recorded as “Borrowings from related parties” on the accompanying condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively. On July 8, 2019 the Company entered into a loan agreement in exchange for cash of RMB 4,770,000 ($738,379) with its Chairperson, Chief Executive Officer and Interim Chief Financial Officer. The loan bears interest at a rate of 4.35% and was payable within one year of the loan agreement. The due date of the loan agreement has been extended annually on identical terms, and is due July 9, 2024. Total interest expense related to the loan for the three months ended June 30, 2023 and 2022 was $6,945 and $7,354, respectively and $14,057 and $15,023 for the six months ended June 30, 2023 and 2022, respectively. Compensation payable to the Chairperson, Chief Executive Officer and Interim Chief Financial Officer is included in “Other payables” in the accompanying condensed unaudited interim consolidated balance sheet totaling $959,506 and $951,506 as of June 30, 2023 and December 31, 2022, respectively.