RELATED PARTY TRANSACTIONS	9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTIONS During the three months ended March 31, 2022, the Company borrowed total $82,107 from the President of the Company for its normal business operations and the acquisition of Hangzhou Wenyuan. The borrowing bear is unsecured, non-interest-bearing and due on demand. During the three months ended March 31, 2023, the Company repaid $14,618 (RMB100,000) to the President. In addition, the Company paid $2,359 (RMB 23,000) during the remaining of the year in 2023. As of December 31, 2023, the balance of the loan due to our President was $71,165, with difference of $2,350 due to the fluctuation in foreign exchange. During the three months ended March 31, 2024, the Company repaid $64,770 (RMB 465,544) to the President. As of September 30, 2024, the balance of the loan due to our President was $5,575, with difference of $820 due to the fluctuation in foreign exchange. During the three months ended March 31, 2023, the wife of President of the Company, repaid commercial loan and accrued interest in the total amount of $14,050 on behalf of the Company. During the nine months ended September 30, 2023, the Company received advances of $83,640 in cash from and repaid $16,046 to the wife of President of the Company. During the nine months ended September 30, 2024, the Company received advances of $21,315 and made repayments of $146,862 to the wife of President of the Company. As of September 30, 2024 and December 31, 2023, the amount owed to this related party by the Company totalled $302 and $127,345, respectively. The amount due to this related party is unsecured, non-interest-bearing and due on demand. The President’s wife further paid expenses in the total amount of $2,868 on behalf of the Company during the three months ended March 31, 2024. During the three and nine months ended September 30, 2024, the Company recognized employee compensation expenses of $4,335 and $13,005 to the daughter of the President, respectively. During the three and nine months ended September 30, 2024, the Company recognized employee compensation expenses of $3,335 and $4,447 to the wife of the President, respectively. Salaries paid to the president totalled $5,002 for the three and nine months ended September 30, 2024. As of September 30, 2024 and December 31, 2023, the compensation payable to the related parties including the President, President’s wife and daughter, totalled $4,332 and $31,446, respectively, which was included in accounts payable and accrued liabilities on the consolidated balance sheet. The Company conducted offline product sales to a close relative of the President’s wife, totalling $16,710 for the three months ending March 31, 2024. As of September 30, 2024, the entire sales transaction was paid off by the related party. The Company conducted offline product sales to a related party, totalling $365 for the three months ending June 30 30, 2024. As of September 30, 2024, the entire sales transaction was paid off by the related party. During the three months ended March 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 September 30, 2024 and December 31, 2023, the amount payable to HZWY totalled $25,735 and $40,373, respectively, which was included in accounts payable and accrued liabilities on the consolidated balance sheet.

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2024

NOTE 7 – RELATED PARTY TRANSACTIONS

During the three months ended March 31, 2022, the Company borrowed total $82,107 from the President of the Company for its normal business operations and the acquisition of Hangzhou Wenyuan. The borrowing bear is unsecured, non-interest-bearing and due on demand. During the three months ended March 31, 2023, the Company repaid $14,618 (RMB100,000) to the President. In addition, the Company paid $2,359 (RMB 23,000) during the remaining of the year in 2023. As of December 31, 2023, the balance of the loan due to our President was $71,165, with difference of $2,350 due to the fluctuation in foreign exchange. During the three months ended March 31, 2024, the Company repaid $64,770 (RMB 465,544) to the President. As of September 30, 2024, the balance of the loan due to our President was $5,575, with difference of $820 due to the fluctuation in foreign exchange.

During the three months ended March 31, 2023, the wife of President of the Company, repaid commercial loan and accrued interest in the total amount of $14,050 on behalf of the Company. During the nine months ended September 30, 2023, the Company received advances of $83,640 in cash from and repaid $16,046 to the wife of President of the Company. During the nine months ended September 30, 2024, the Company received advances of $21,315 and made repayments of $146,862 to the wife of President of the Company. As of September 30, 2024 and December 31, 2023, the amount owed to this related party by the Company totalled $302 and $127,345, respectively. The amount due to this related party is unsecured, non-interest-bearing and due on demand.

The President’s wife further paid expenses in the total amount of $2,868 on behalf of the Company during the three months ended March 31, 2024.

During the three and nine months ended September 30, 2024, the Company recognized employee compensation expenses of $4,335 and $13,005 to the daughter of the President, respectively. During the three and nine months ended September 30, 2024, the Company recognized employee compensation expenses of $3,335 and $4,447 to the wife of the President, respectively. Salaries paid to the president totalled $5,002 for the three and nine months ended September 30, 2024. As of September 30, 2024 and December 31, 2023, the compensation payable to the related parties including the President, President’s wife and daughter, totalled $4,332 and $31,446, respectively, which was included in accounts payable and accrued liabilities on the consolidated balance sheet.

The Company conducted offline product sales to a close relative of the President’s wife, totalling $16,710 for the three months ending March 31, 2024. As of September 30, 2024, the entire sales transaction was paid off by the related party.

The Company conducted offline product sales to a related party, totalling $365 for the three months ending June 30 30, 2024. As of September 30, 2024, the entire sales transaction was paid off by the related party.

During the three months ended March 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 September 30, 2024 and December 31, 2023, the amount payable to HZWY totalled $25,735 and $40,373, respectively, which was included in accounts payable and accrued liabilities on the consolidated balance sheet.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 850
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-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

Longwen Group Corp. 10-Q