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Related Party Transactions
 9 Months Ended
Sep. 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 $0 and $1,354,567 as of September 30, 2023 and December 31, 2022, respectively, 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 September 30, 2023 and 2022 was $0 and $3,387, respectively and $6,773 and $10,159 for the nine months ended September 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 $8,000 and $372,578 as of September 30, 2023 and December 31, 2022, respectively. On August 23, 2023, the director entered into a certain debt transfer agreement with Chairperson Li, pursuant to which the rights to collect the $1,354,567 loan payment and $499,975 of related interest and compensation was assigned to Chairperson Li. On September 28, 2023, Chairperson Li entered into a certain loan settlement agreement, pursuant to which both parties agreed to convert the aggregate amount of $1,854,452 owed by the Company into 13,757,063 shares of restricted common stock of the Company. Such issuance was completed on September 29, 2023.

 

The Company had previously received advances from Chairperson Li. Total amounts owed were $1,109,453 and $1,121,273 and are recorded as “Borrowings from related parties” on the accompanying condensed consolidated balance sheets as of September 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 Chairperson Li. 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 September 30, 2023 and 2022 was $6,942 and $7,731, respectively and $20,827 and $22,114 for the nine months ended September 30, 2023 and 2022, respectively. Compensation payable to Chairperson Li is included in “Other payables” in the accompanying condensed consolidated balance sheet totaling $963,506 and $951,506 as of September 30, 2023 and December 31, 2022, respectively.