0001017386-23-000204.txt : 20230512 0001017386-23-000204.hdr.sgml : 20230512 20230512160209 ACCESSION NUMBER: 0001017386-23-000204 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 48 CONFORMED PERIOD OF REPORT: 20230331 FILED AS OF DATE: 20230512 DATE AS OF CHANGE: 20230512 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Longwen Group Corp. CENTRAL INDEX KEY: 0000723533 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT CONSULTING SERVICES [8742] IRS NUMBER: 953506403 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11596 FILM NUMBER: 23915462 BUSINESS ADDRESS: STREET 1: RM 219, NO. 25 CAIHE RD STREET 2: SHANGCHENG DIST. CITY: HANGZHOU STATE: F4 ZIP: 310002 BUSINESS PHONE: 626-872-9451 MAIL ADDRESS: STREET 1: RM 219, NO. 25 CAIHE RD STREET 2: SHANGCHENG DIST. CITY: HANGZHOU STATE: F4 ZIP: 310002 FORMER COMPANY: FORMER CONFORMED NAME: Allied Ventures Holdings Corp. DATE OF NAME CHANGE: 20150223 FORMER COMPANY: FORMER CONFORMED NAME: Dephasium Corp. DATE OF NAME CHANGE: 20130305 FORMER COMPANY: FORMER CONFORMED NAME: ALLIED VENTURES HOLDING CORP. DATE OF NAME CHANGE: 20130104 10-Q 1 lwlw_2023mar31-10q.htm QUARTERLY REPORT
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2023

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

 

Commission File Number 000-11596

 

LONGWEN GROUP CORP.

(Exact name of registrant as specified in its charter)

 

Nevada   95-3506403
(State or Other Jurisdiction   (I.R.S. Employer
of Incorporation or Organization)   Identification No.)

 

RM 219, No. 25, Caihe Rd

Shangcheng Dist., Hangzhou, Zhejiang Province, China

(Address of Principal Executive Office)

 

+86 0571 -85128985

(Registrant’s telephone number, including area code)

 

NA 

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Not Applicable    Not Applicable     Not Applicable

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

 

 

 
 

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

  Large accelerated filer Accelerated filer
  Non-accelerated filer Smaller reporting company
      Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 

As of May 11, 2023, the registrant had 79,108,925 shares of common stock outstanding.

 

 

 

 

 
 

 

 

 

LONGWEN GROUP CORP.

 

QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED MARCH 31, 2023

 

TABLE OF CONTENTS

 

    PAGE
     
  Note about Forward-Looking Statements 2
     
  PART I - FINANCIAL INFORMATION  
     
Item 1 Financial Statements 3
  Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022 4
  Consolidated Statements of Operations and Other Comprehensive Income (unaudited) for the three months ended March 31, 2023 and 2022 5
  Consolidated Statements of Changes in Stockholders’ Equity (unaudited) for the three months ended March 31, 2023 and 2022 6
  Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2023 and 2022 7
  Notes to Unaudited Consolidated Financial Statements 8
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operation 16
Item 3 Quantitative and Qualitative Disclosures About Market Risk 17
Item 4 Controls and Procedures 18
     
  PART II - OTHER INFORMATION  
     
Item 1 Legal Proceedings 20
Item 1A Risk Factors 20
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 20
Item 3 Defaults Upon Senior Securities 20
Item 4 Mine Safety Disclosures 20
Item 5 Other Information 20
Item 6 Exhibits 21
     
SIGNATURES 22
     
EXHIBIT INDEX 23

 

 

 

 

 
 

 

 

NOTE ABOUT FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements.

 

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section entitled “Risk Factors”, beginning on page 4 of our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities & Exchange Commission (“SEC”) on March 29, 2023. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make.

 

We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

 

Unless expressly indicated or the context requires otherwise, the terms “Company,” “we,” “us,” and “our” in this document refer Longwen Group Corp., a Nevada corporation.

 

2

 

 

 
 

 

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

LONGWEN GROUP CORP.

 

INDEX TO FINANCIAL STATEMENTS

 

Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022 4
   
Consolidated Statements of Operations and Other Comprehensive Income (unaudited) for the three months ended March 31, 2023 and 2022 5
   
Consolidated Statements of Changes in Stockholders’ Equity (unaudited) for the three months ended March 31, 2023 and 2022 6
   
Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2023 and 2022 7
   
Notes to Unaudited Consolidated Financial Statements 8 - 15

 

3

 

 

 

 
 

 

LONGWEN GROUP CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

   March 31, 2023  December 31, 2022
    (Unaudited)      
ASSETS          
Current assets          
Cash  $20,798   $68,121 
Accounts receivable, net of allowance   226,608       
Inventories   41,783       
Prepaid expenses and other current assets   23,874    58,413 
Total current assets   313,063    126,534 
           
Property and equipment, net   272,442    274,370 
Intangible assets, net   3,458    3,625 
Goodwill   1,132    1,132 
TOTAL ASSETS  $590,095   $405,661 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities:          
Accounts payable and accrued liabilities  $212,525   $31,962 

Loans from third parties

   133,963    12,250 
Shareholder loans   90,128    90,494 
Total current liabilities   436,616    134,706 
           
TOTAL LIABILITIES   436,616    134,706 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS’ EQUITY          
Preferred stock, $0.0001 par value, 50,000,000 authorized, nil shares issued and outstanding            
Common stock, $0.0001 par value, 550,000,000 authorized, 79,108,926 and 74,108,926 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively   7,911    7,411 
Additional paid-in capital   19,785,039    19,285,539 
Accumulated deficit   (19,646,924)   (19,027,835)
Accumulated other comprehensive income   7,453    5,840 
TOTAL STOCKHOLDERS’ EQUITY   153,479    270,955 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $590,095   $405,661 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 
4

 

 

 
 

     

LONGWEN GROUP CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND

OTHER COMPREHENSIVE INCOME

(UNAUDITED) 

       
   For the Three Months Ended
March 31,
   2023  2022
Revenues:          
Consulting service income  $13,026   $1,171 
Online product sales   6,082       
Aquaculture product sales   221,601       
Total revenues   240,709    1,171 
           
Cost of revenues:          
Online product sales   2,199       
Aquaculture product sales   199,156       
Total cost of revenues   201,355       
           
Gross profit   39,354    1,171 
           
Operating Expenses          
Professional expenses   73,155    34,780 
Share-based compensation   500,000       
Selling, general and administrative expenses   83,905    9,740 
           
Total operating expenses   657,060    44,520 
           
Loss from operations   (617,706)   (43,349)
           
Other income (expenses):          
Interest expense, net   (55)   (125)
Other (expense) income, net   (485)   224 
Total other (expense) income, net   (540)   99 
           
Net loss before income tax   (618,246)   (43,250)
Income tax expense   843       
           
Net loss  $(619,089)  $(43,250)
           
Other comprehensive income          
Foreign currency translation gain   1,613    482 
           
Total other comprehensive income   1,613    482 
           
Comprehensive loss  $(617,476)  $(42,768)
           
Weighted average shares outstanding:          
Weighted average shares outstanding: Basic and diluted   78,010,025    65,173,317 
           
Earnings per share:          
Earnings per share: Basic and diluted  $(0.01)  $(0.00)

 

The accompanying notes are an integral part of these unaudited consolidated financial statements. 

5
 
 

 

LONGWEN GROUP CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED) 

       
   For the Three Months Ended March 31,
   2023  2022
       
Cash flows from operating activities:          
Net loss  $(619,089)  $(43,250)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation   3,305    143 
Share-based compensation   500,000       
Changes in operating assets and liabilities:          
Accounts receivable   (227,486)      
Inventories   (41,945)      
Prepaid expenses and other current assets   34,613    (34,750)
Accounts payable and accrued liabilities   182,937    125 
Net cash used in operating activities   (167,665)   (77,732)
           
Cash flows from investing activities:          
Purchase of equipment         (5,412)
Cash obtained from business acquisition         7 
Net cash used in investing activities         (5,405)
           
Cash flows from financing activities:          
Proceeds from shareholder loans         82,107 
Net proceeds from third-party’s loans   134,481       
Repayment to shareholder loans   (14,618)      
Proceeds from common stock issuance         116,087 
Net cash provided by financing activities   119,863    198,194 
           
Effect of exchange rate changes on cash and cash equivalents   479    (518)
Net increase (decrease) in cash and cash equivalents   (47,323)   114,539 
           
Cash, beginning balance   68,121       
Cash, ending balance  $20,798    114,539 
           
Supplemental Disclosures:          
Interest paid  $     $   
Income tax paid  $     $   
           
Supplemental Disclosures of Non-Cash Investing and Financing Activities:          
Acquisition of Hangzhou Longwen Enterprise Management with shareholder loan  $     $993 
Repayment of commercial loan and interest by a related party on behalf of the Company  $14,050   $   
           

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 
6
 
 

 

     

  LONGWEN GROUP CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

 

                         
   Preferred Stock
Shares
  Preferred Stock
Amount
  Common Stock
Shares
  Common Stock
Amount
  Additional
Paid-in
Capital
  Accumulated
Deficit
  Accumulated Other Comprehensive Income  Total Shareholders’ Equity
                         
Balance December 31, 2022        $      74,108,926   $7,411   $19,285,539   $(19,027,835)   5,840   $270,955 
                                         
Shares issued for compensation   —            5,000,000    500    499,500                500,000 
Other comprehensive income   —            —                        1,613    1,613 
Net loss   —            —                  (619,089)         (619,089)
Balance March 31, 2023 (Unaudited)        $      79,108,926   $7,911   $19,785,039   $(19,646,924)  $7,453   $153,479 

   

                         
   Preferred Stock
Shares
  Preferred Stock
Amount
  Common Stock
Shares
  Common Stock
Amount
  Additional
Paid-in
Capital
  Accumulated
Deficit
  Accumulated Other Comprehensive Income  Total Shareholders’ Equity (Deficit)
                         
Balance December 31, 2021        $      65,127,061   $6,513   $18,261,346   $(18,281,409)  $     $(13,550)
                                         
Issuance of common stock   —            386,955    39    116,048                116,087 
Other comprehensive income   —            —                        482    482 
Net loss   —            —                  (43,250)         (43,250)

Balance March 31, 2022

(Unaudited)

               65,514,016   $6,552   $18,377,394   $(18,324,659)  $482   $59,769 

 

                                 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 
7

 

 

 

 
 

 

 

LONGWEN GROUP CORP. AND SUBSIDIARIES

 

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

 

Longwen Group Corp. (the “Company”) was originally incorporated as Expertelligence, Inc in the State of California on March 31, 1980 and reincorporated in the State of Nevada on November 17, 2005.  On January 23, 2017, after a series of various name changes, the Company amended its Articles of Incorporation (“Charter Amendment”) to affect the current name change of Longwen Group Corp with trading symbol of “LWLW”.

 

On or about April 5, 2016, the Company affected a 1 for 750 share reverse split of its issued and outstanding common stocks and reduced to 127,061 shares outstanding. Effective November 29, 2016, 66,667 shares of common stock of the Company were transferred to Longwen Group Corp., a Cayman Island company (“Longwen Cayman”). All of the shares held by Longwen Cayman are restricted securities.  As a result of the transactions, Mr. Xizhen Ye, President of Longwen Cayman, was appointed as a sole Director of the Company, and President and Chief Executive Officer and Chief Financial Officer of the Company. On August 22, 2018, Mr. Lizhong Lu was appointed as a director of Board.

 

On June 9, 2021, Anthony Lombardo (“Lombardo”) filed an Application for Appointment of Custodian (“Application”) with the Eighth Judicial District Court in Nevada to request the custodianship of the Company due to the Company’s non-response and late filing with the State of Nevada. On June 24, 2021, a hearing was held on this Application, where Lombardo was named temporary custodian of the Company. Subsequently after Lombardo’s custodianship, Deanna Johnson was appointed as the CEO, CFO and Secretary of the Company. On September 1, 2021, Deanna Johnson appointed Joseph Passalaqua (“Joseph”) as CEO, CFO and Secretary and resigned from all positions in the Company.

 

On October 25, 2021, Mr. Xizhen Ye (“Ye”), the ex-officer and director of the Company prior to Lombardo’s custodianship, and Longwen Cayman, filed a motion to dissolve custodianship (“Motion”) with the Eighth Judicial District Court of Nevada State. Pursuant to the Settlement Agreement entered on January 12, 2022, by Longwen Cayman, Mr. Ye, Lombardo, Joseph and Deanna Johnson regarding Lombardo’s custodianship, Mr. Ye and Mr. Lizhong Lu were reinstated as the officer and directors of the Company, and 65,000,000 common stocks of the Company was transferred from Joseph to Mr. Ye on February 9, 2022. Further on February 17, 2022, the Eighth Judicial District Court officially terminated Lombardo’s custodianship over the Company.

 

On February 23, 2022, the Company entered into an Acquisition Agreement with a third-party individual to acquire the 100% ownership of Hangzhou Longwen Enterprise Management Co., Ltd. (“Hangzhou Longwen”), a wholly foreign-owned enterprise (“WOFE”) in Hangzhou, the People’s Republic of China (the “PRC”), for a total cash consideration of $1,000. As a result of the acquisition, Hangzhou Longwen became the Company’s wholly owned subsidiary in the PRC. Hangzhou Longwen was originally registered on January 4, 2012 and has minimum operations since its inception. The Company recognize goodwill of $993 upon consummated the acquisition. During 2022, Hangzhou Longwen entered consulting service agreements with various customers to assist in their various business, including but not limit to financial report preparation, business negotiation and business website maintenance and/or publicity, and etc.

 

On October 11, 2022, the Company and its subsidiary, Hangzhou Longwen entered into an Acquisition Agreement with a third-party individual to acquire 100% ownership of Hangzhou Yusu Trading Co., Ltd.. (“HZYS”), a limited liability company in Hangzhou, the People’s Republic of China (the “PRC”), for a total cash consideration of RMB 1,000 or about USD $141. Upon consummated Hangzhou Yushu became Hangzhou Longwen’s wholly owned subsidiary in the PRC. HZYS was originally registered on April 20, 2020 and has minimum operations since its inception. The Company recognize goodwill of $139 upon consummated the acquisition. HZYS generated revenues from online product sales and aquaculture product sales.

On March 3, 2023, Hangzhou Longwen established a new subsidiary, Huzhou Wohong Fishery Co., Ltd. (“HWF”), to operate aquacultural breeding, wholesale and retail of aquaculture products and etc.

 

 
8

 

 
 

 

LONGWEN GROUP CORP. AND SUBSIDIARIES

 

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries as described in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation.

   

Basis of Presentation

 

The unaudited consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement of the financial statements have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

 

Use of Estimates

 

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions.

 

Foreign Currency Transactions

 

The Company’s consolidated financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries including Hangzhou Longwen, Hangzhou Yushu and Huzhou Wohong, are RMB. The resulting translation adjustments are reported under other comprehensive loss in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 220 (“ASC 220”), “Reporting Comprehensive Income”. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income.

 

The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into U.S. dollars are recorded in shareholders’ equity as part of accumulated other comprehensive loss. The exchange rate used for financial statements are as follows:

 

   

Average Rate for the three months ended March 31, 

 
    2023     2022
China yuan (RMB)   RMB 6.8411     RMB 6.3464
United States dollar ($)   $ 1.0000     $ 1.0000
                 

 

    Exchange Rate at  
    March 31, 2022     December 31, 2022  
China yuan (RMB)   RMB  6.8676     RMB  6.8972  
United States dollar ($)   $ 1.0000     $ 1.0000  
9

 

 
 

 

LONGWEN GROUP CORP. AND SUBSIDIARY

 

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

Revenue Recognition

 

The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government.

The Company’s consulting service income consists of the delivery of focused insights and recommendations that assist customers with their challenges in developing and executing strategies around their trade business and financial reporting processes. The consulting services provided are fixed-fee arrangements that are generally in one-year term. The Company has concluded that each contract represents a single performance obligation as each is a single promise to deliver a customized engagement and deliverable. For the majority of these services, either practically or contractually, the work performed and delivered to the customer has no alternative use to the Company. Additionally, the Company maintains an enforceable right to payment at all times throughout the contract.

The Company’s online product sales consist of selling products to end customers through online channel, such as apps embedded in Wechat. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers.

The Company’s aquaculture product sales consist of selling aquacultural products to customers through offline channel. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers. The Company concludes the presentation of revenue generated from selling of aquaculture products is at a gross basis as the Company acts as a principal by controlling sales transactions provided to their customers.

Concentration

During the three months ended March 31, 2023, the Company generated 63% and 20% of revenues from the top 2 customers, respectively. The Company’s cost of revenues consisted of 65%, 21% and 13% purchases from top 3 vendors, respectively, for the three months ended March 31, 2023. The Company’s revenue and cost of revenues were not material during the three months ended March 31, 2022.

Share-based Compensation

 

The Company accounts for stock options and other equity-based compensation issued in accordance with ASC 718 “Stock Compensation”, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported.

 

Income Taxes

 

The Company accounts for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. 

 

10
 
 

  

LONGWEN GROUP CORP. AND SUBSIDIARY

 

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 

   

Related Parties

 

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

 

 

Fair Value Measurements

 

Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:

 

  · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

  · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

 

  · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

 

As of March 31, 2023 and December 31, 2022, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis. The carrying value of the Company’s cash, accounts receivable, net, loans from third parties, shareholder loans and accounts payable and accrued liabilities approximates the fair value due to the short-term maturity.

 

Segment Reporting

 

Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” requires public companies to report financial and descriptive information about their reportable operating segments. We identify our operating segments based on how our chief operating decision maker internally evaluates separate financial information, business activities and management responsibility. During the three months ended March 31, 2023 and 2022, the Company determined that we have one reportable segment as we manage the business from the geography location.

 

Accounting Standards Recently Adopted

 

In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. The Company adopted ASU No. 2016-13 on January 1, 2023, which had no impact on the beginning balance of the Company’s balance as there was no receivable balances as of January 1, 2023.

    

Accounting Standards Issued but Not Yet Adopted

 

There were updates recently issued. The management does not believe that accounting pronouncements recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows. 

 

11

  

 
 

  

LONGWEN GROUP CORP. AND SUBSIDIARIES

 

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 3 – GOING CONCERN

  

The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business.  During the three months ended March 31, 2023, the Company incurred a net loss of $619,089. The Company had an accumulated deficit of $19,646,924 as of March 31, 2023. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.

  

The Company’s future success is dependent upon its ability to acquire and achieve business with profitable operations, generate cash from operating activities and obtain additional financing. The Company intends to raise funds from the issuance of equity and/or debt securities, but there is no assurance that additional funds from the issuance of equity will be available for the Company to finance its operations on acceptable terms, or at all.  These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

NOTE 4 – PROPERTY AND EQUIPMENT, NET

 

As of March 31, 2023 and December 31, 2022, equipment consisted of the following:

 

   March 31, 2023  December 31, 2022
       
Equipment  $7,450   $7,419 
Property   272,489    271,319 
Less: accumulated depreciation   (7,497)   (4,368)
Total property and equipment, net  $272,442   $274,370 

 

On September 28, 2022, the Company consummated an office suite purchase agreement with a third party. Pursuant to the agreement, the Company issued 2,651,780 common stocks of the Company to purchase a 118-square-meter office suite located in Hangzhou City, Zhejiang Province, China. The cost of the office suite was measured at the fair value of the issued common stocks on the closing date of $265,178 less value-added tax of $2,108. The difference of $9,419 between the addition of $263,070 and the cost as of March 31, 2023 is due to the fluctuation of foreign exchange rate. The office space is intended for internal use.

 

Depreciation expenses were $3,122 and $143 for the three months ended March 31, 2023 and 2022, respectively, which was included in selling, general and administrative expenses. The difference with the change in accumulated depreciation was due to exchange difference.

 

 
12

 

 

 

 
 

 

LONGWEN GROUP CORP. AND SUBSIDIARIES

 

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

 

NOTE 5 – LOANS FROM THIRD PARTIES

 

The Company’s loans from third parties consisted of the following as of March 31, 2023 and December 31, 2022:

 

   March 31, 2023  December 31, 2022
Loan with a third-party lender; the loan bears a fixed interest at $500 per annum and due on demand  $     $12,250 
Loan with a third-party lender; unsecure, bearing an interest rate of 0.5% per annum, and due in one year   87,367       
Loan with two third-party lenders; unsecure, non-interest-bearing, and due on December 30, 2023   46,956       
Total loans   133,963    12,250 
Less: current portion   (133,963)   (12,250)
Total non-current portion  $—     $—   

 

On December 31, 2019, the Company entered into a loan agreement of $12,250 with a third-party individual with three-year term. The borrowing bears interest of $300 at the effective date of the contract and fixed rate at $500 per annum, which matured on December 31, 2022 and immediately became due on demand. As of December 31, 2022, the outstanding balance of the borrowing was $12,250 with $1,800 interest payable.  During the three months ended, the loan and interest payable in the total amount of $14,050 was repaid by the wife of the President, on behalf of the Company (Note 8). Total interest expenses for the loan were $nil and $125, respectively, for the three months ended March 31, 2023 and 2022.

 

During the three months ended March 31, 2023, the Company borrowed $46,776 (RMB 320,000) from two third-party individuals. The loans are unsecure, non-interest-bearing, and due on December 30, 2023. As of March 31, 2023, the total amount owed to the two third parties is $46,596, with a difference of $180 due to foreign exchange fluctuation.

 

During the three months ended March 31, 2023, the Company borrowed $87,705 (RMB 600,000) from a third-party individual. The loans are unsecure, bearing an interest rate of 0.5% per annum, and due in one year. As of March 31, 2023, the total amount owed to the third parties is $87,367, with a difference of $338 due to foreign exchange fluctuation. During the three months ended March 31, 2023, the Company accrued interest expense of $378. 

 

  

 
13
 
 

 

LONGWEN GROUP CORP. AND SUBSIDIARIES

 

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 6 – INCOME TAX

 

As of March 31, 2023 and December 31, 2022, the Company has incurred an accumulated net loss of approximately $19.1 million and $19.0 million which resulted in a net operating loss for income tax purposes. NOLs can carry forward indefinitely up to offset 80 percent of taxable income after CARES Act effect on December 31, 2017. The deferred tax asset has been fully reserved for valuation allowance as the Company believes they will most-likely-than-not realize the benefits.  

 

Significant components of the deferred tax assets and liabilities for income taxes as of March 31, 2023 and December 31, 2022 consisted of the following: 

   March 31, 2023  December 31, 2022
Deferred tax assets          
Net operating loss carry-forward  $760,807   $630,975 
Total  $760,807   $630,975 
Valuation allowance   (760,807)   (630,975)
Net deferred tax assets - noncurrent  $     $   

 

Reconciliation of income tax provision and the accounting profit multiplied by U.S. federal income tax rate for the three months ended March 31, 2023 and 2022: 

       
   Three Months Ended March 31,
   2023  2022
Income (loss) at 21% statutory tax rate  $(129,832)  $(9,083)
           
Permanent differences            
Increase (decrease) in income taxes resulting from:          
Net operating loss carry forward   (630,975)   (474,226)
Change in valuation allowance   760,807    483,309 
   $     $   

  

NOTE 7 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

As of March 31, 2023 and December 31, 2022, the Company had 79,108,926 and 74,108,926 shares of common stock issued and outstanding, respectively.

 

In March 2022, the Company sold 386,955 shares of common stock to fifteen non-U.S. investors at $0.30 per share. Total $116,087 was received for the all 386,955 shares subscribed in March 2022. The Company relied upon Regulation S of the Securities Act of 1933, as amended, for the sale of these securities. No commissions were paid regarding the share issuance and the share certificates were issued with a Rule 144 restrictive legend.

 

 
14

 

 
 

  

 

LONGWEN GROUP CORP. AND SUBSIDIARIES

 

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 

 

 

2022 Equity Incentive Plan

 

On November 7, 2022, the Board adopted an equity incentive plan to increase stockholder value and to advance the interests of the Company by furnishing a variety of economic incentives (“Incentives”) designed to attract, retain and motivate employees, certain key consultants and directors of the Company (the “2022 Equity Incentive Plan”). Under the 2022 Equity Incentive Plan, the Company can issue up to 10,000,000 shares of common stock of the Company. Incentives may be granted in any one or a combination of: (a) incentive stock options and non-statutory stock options; (b) stock appreciation rights; (c) stock awards; (d) restricted stock; and (e) performance shares. Such incentives may be subject to vesting conditions determined by the Board of Directors at grant. The maximum term of options or other stock-based award granted is ten years or such lesser time as determined by the Board of Directors at the time of grant.

 

On November 10, 2022, the Company granted total 4,250,000 shares of common stock of the Company to four individual consultants, under the 2022 Equity Incentive Plan, vesting immediately upon grant. The fair value of the shares granted totaled $425,000.

 

On January 19, 2023, the Company granted total 5,000,000 shares of common stock of the Company to six employees and one consultant under the Company’s 2022 Equity Incentive Plan. The fair value of the shares granted totaled at the amount of $500,000.

 

As of March 31, 2023, the Company’s common shares issuable under the 2022 Equity Incentive Plan totaled 750,000.

 

NOTE 8 – 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 Longwen. The borrowing bear is unsecured, non-interest-bearing and due on demand. During the three months, the Company repaid $14,618 (RMB100,000) to the President. As of March 31, 2023 and December 31, 2022, the balance of the loan due to our President was $76,298 and $90,494, respectively. The difference of $422 is due to the fluctuation in foreign exchange.

 

During the three months ended March 31, 2023, the wife of President of the Company, repaid the commercial loan and the related accrued interest in the total amount of $14,050 on behalf of the Company. As of March 31, 2023, the amount due to the related party outstanding was $13,830, with difference of $220 due to the fluctuation in foreign exchange.

 

NOTE 9 – COMMITMENTS

 

During the year ended December 31, 2022, the Company entered into leases with third parties for office spaces and a parking spot in Hangzhou, PRC, all with a lease term of 12 months. The remaining minimum lease payments under the three leases as of March 31, 2023 was approximately $33,737.

 

HZWH entered an aquacultural products purchase contract with one major vendor on March 14, 2023 for a period from March 15, 2023 to March 14, 2024, with total annual purchases amount of RMB 50 million (approximately $7.3 million).

 

NOTE 10 – SUBSEQUENT EVENTS

 

The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued and determine that there were no other subsequent events or transactions that require recognition or disclosures in the consolidated financial statements.

 

 

 
15

 

 

 
 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

This Quarterly Report on Form 10-Q contains forward-looking statements, particularly those identified with the words, “anticipates,” “believes,” “expects,” “plans,” “intends,” “objectives,” and similar expressions. These statements reflect management’s best judgment based on factors known at the time of such statements. The reader may find discussions containing such forward-looking statements in the material set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” generally, and specifically therein under the captions “Liquidity and Capital Resources” as well as elsewhere in this Quarterly Report on Form 10-Q. Actual events or results may differ materially from those discussed herein. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guarantee, or warranty is to be inferred from those forward-looking statements. The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.

 

Overview

 

Longwen Group Corp. (the “Company”), was originally incorporated as Expertelligence, Inc in the State of California on March 31, 1980 and reincorporated in the State of Nevada on November 17, 2005.  On January 23, 2017, after a series of various name changes, the Company amended its Articles of Incorporation (“Charter Amendment”) to affect the current name change of Longwen Group Corp with trading symbol of “LWLW”.

 

The Company underwent a change of control on January 21, 2016, at which time Harold Minsky resigned in all officer positions. G. Reed Petersen and White Rim Cattle Company LLC each purchased 25,000,000 shares of common stock of the Company from Harold Minsky. Mr. Petersen is the Member Manager of White Rim Cattle Company, LLC and thus can be considered a control person of all 50,000,000 shares of stock of the Company. Pursuant to a Board of Directors meeting, Mr. Petersen was elected to and accepted all the officer positions previously held by Harold Minsky.

 

On or about April 5, 2016, the Company affected a 1 for 750 share reverse split of its issued and outstanding common stock. On such date, the Company’s common stock was reduced from 95,164,140 to 127,061 shares outstanding.

 

Effective November 29, 2016, G. Reed Peterson sold 66,667 shares of common stock of the Company to Longwen Group Corporation (Cayman Island), a Cayman Island company (“Longwen Cayman”). All of the shares held by Longwen Cayman are restricted securities.  As a result of the transactions, Mr. Petersen no longer owns any of the Company’s capital stock or securities and he and his affiliates waived all loans and other amounts due to the Company. In addition, on such date, Mr. Petersen resigned in all officer capacities from the Company, and Mr. Xizhen Ye, President of Longwen Cayman, was appointed as a sole Director of the Company and President and Chief Executive Officer and Chief Financial Officer of the Company. On August 22, 2018, Mr. Lizhong Lu was appointed as a director of Board.

 

From August 2018 to June 2021, the Company continued to seek for new business opportunities in order to increase its value of the common stock. However, due to the impact of the Covid-19 pandemic, the progress was delayed and the business goal was not successfully achieved.

 

On June 9, 2021, Anthony Lombardo (“Lombardo”) filed an Application for Appointment of Custodian (“Application”) with the Eighth Judicial District Court in Nevada to request the custodianship of the Company due to the Company’s non-response and late filing with the State of Nevada. On June 24, 2021, a hearing was held on this Application, where Lombardo was named temporary custodian of the Company. Subsequently after Lombardo’s custodianship, Deanna Johnson was appointed as the CEO, CFO and Secretary of the Company. On September 1, 2021, Deanna Johnson appointed Joseph Passalaqua (“Joseph”) as CEO, CFO and Secretary and resigned from all positions in the Company, On October 25, 2021,

 
16
 
 

Mr. Xizhen Ye (“Ye”), who was the officer and director of the Company prior to Lombardo’s custodianship, and Longwen Group Corporation, a Cayman Island corporation, filed a Motion to Dissolve Custodianship (“Motion”) with the Eighth Judicial District Court of Nevada State. On January 12, 2022, in accordance with a Settlement Agreement regarding Lombardo’s custodianship, Mr. Ye was reinstated his positions as the officer and director of the Company, along with the reinstatement of the other Company’s director, Lizhong Lu, who was also in place prior to Lombardo’s custodianship. On February 9, 2022, pursuant to the Settlement Agreement, Joseph transferred 65,000,000 common stocks of the Company owned by him to Mr. Ye. On February 17, 2022, the Eighth Judicial District Court formally dismissed Lombardo’s custodianship for the Company. 

 

On February 23, 2022, the Company entered into an Acquisition Agreement with a third-party individual to to acquire the 100% ownership of Hangzhou Longwen Enterprise Management Co., Ltd. (“Hangzhou Longwen”), a wholly Foreign-Owned Enterprise (“WOFE”) in Hangzhou, the People’s Republic of China (the “PRC”), for a total cash consideration of $1,000. As a result of the acquisition, Hangzhou Longwen became the Company’s wholly owned subsidiary in the PRC. Hangzhou Longwen was originally registered on January 4, 2012 and has minimum operations since its inception and the Company recognize $993 goodwill as a result of the business acquisition.

 

On October 11, 2022, the Company and its subsidiary, Hangzhou Longwen entered into an Acquisition Agreement with a third-party individual to acquire the 100% ownership of Hangzhou Yusu Trading Co., Ltd. (“HZYS”), a limited liability company in Hangzhou, the People’s Republic of China (the “PRC”), for a total cash consideration of RMB 1,000 or about USD $141. Upon consummated HZYS became Hangzhou Longwen’s wholly owned subsidiary in the PRC. Hangzhou Yushu was originally registered on April 20, 2020 and has minimum operations since its inception.

 

On March 3, 2023, Hangzhou Longwen established a new subsidiary, Huzhou Wohong Fishery Co., Ltd. (“Huzhou Wohong”), to operate the aquacultural breeding, wholesale and retail of aquaculture products and etc.

 

Results of operation for the three months ended March 31, 2023 and 2022

 

Revenue

 

During the three months ended on March 31, 2023, the Company generated $13,026 of revenue from its consulting services compared to $1,171 revenue for the period of the same quarter of year 2022. During the three months ended on March 31, 2023, the Company generated $6,082 of revenue from its online product sales through HZYS compared to $nil revenue for the three months ended March 31, 2022. In December 2022, the Company’ subsidiary, HZYS, worked with a third-party platform developer, formally launched our online store, Huanyumeiyuan Mall (the “HYMY”), through Tencent’s Wechat platform.

 

On March 3, 2023, Hangzhou Longwen established a new subsidiary, Huzhou Wohong Fishery Co., Ltd. (“HWF”), to operate the aquacultural breeding, wholesale and retail of aquaculture products and etc. During the three months ended on March 31, 2023, the Company generated $221,601 of revenue from its aquaculture product sales through HWF compared to $nil revenue for the three months ended March 31, 2022. We expect our newly added aquaculture product sales segment will become an important source of revenue for the Company in the year 2023.

 

   For the three months ended March 31,      
   2023  2022  Increase (Decrease)  Percentage Change
             
             
Consulting services  $13,026   $1,171   $11,855    1,012%
Online product sales   6,082    —      6,082    100%
Aquaculture product sales   221,601    —      221,601    100%
   $240,709   $1,171   $239,538    1,212%

 

 
17

 

 

 
 

 

Cost of Revenues

 

For the three months ended March 31, 2023, our cost of revenues amounted to $201,355 as compared to $nil for the three months ended March 31, 2022, an increase of $201,355 or 100%. The increase was mainly due to the increased sales of our online product sales and the aquaculture product sales which added to our sales segments recently.

 

Cost of revenue totaled $199,156 for aquaculture product sales for the three months ended March 31, 2023 comparing to $nil for the same quarter in 2022. Our cost for online product sales was $2,199 for the three months ended on March 31, 2023 compared to $nil for the same quarter in 2022.

 

 

   For the three months ended March 31,      
   2023  2022  Increase (Decrease)  Percentage Change
             
             
Consulting services  $—     $—     $—      -% 
Online product sales   2,199    —      2,199    100%
Aquaculture product sales   199,156    —      199,156    100%
   $201,355   $—     $201,355    100%

  

Operating Expense

 

For the three months ended March 31, 2023, operating expense amounts to $657,060, as compared to $44,520 for the three months ended on March 31, 2022, an increase of $612,540. The increase was mainly due to $500,000 stock-based compensation incurred on January 19, 2023 due to the issuance of 5,000,000 common shares of the Company grant.

 

During the three months ended March 31, 2023 and 2022, the Company incurred other general and administrative and professional expenses of $157,060 and $44,520, respectively. The professional expenses mainly included consulting expenses and financial advisor fees.

 

Net Income

 

The net loss was $619,089 and $43,250 for the three months ended on March 31, 2023 and 2022, respectively. The increase in net loss in the current quarter was mainly due to the increase expenses of selling, general and administrative, professional expenses and share issuance for employee compensation as a result of the Company’s sustained operations.

 

Liquidity and Capital Resources

 

As of March 31, 2023 and December 31, 2022, we had an accumulated deficit of $19,646,924 and $19,027,835, respectively. As of March 31, 2023, we had cash of $20,798 and a working capital deficit of $123,553. As of December 31, 2022, we had cash of $68,121 and a working capital deficit of $8,172. The increase in the working capital deficit was primarily due to cash used in operating activities.

 
18

 

 

 
 

Going Concern Assessment

 

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically cash outflow from operating activities, operating losses, accumulated deficit and other adverse key financial ratios.

 

Management’s plan to alleviate the substantial doubt about the Company’s ability to continue as a going concern include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds from the majority shareholder and the President of the Company to eliminate inefficiencies in order to meet its anticipated cash requirements. However, there can be no assurance that these plans and arrangements will be sufficient to fund the Company’s ongoing capital expenditures and other requirements.

 

The unaudited condensed financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

 

Critical Accounting Policies

 

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires making estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. The estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

 

The critical accounting policies are discussed in further detail in the notes to the unaudited financial statements appearing elsewhere in this 10-Q report. Management believes that the application of these policies on a consistent basis enables us to provide useful and reliable financial information about our operating results and financial condition.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

As a “smaller reporting company” we are not required to provide this information under this item pursuant to Regulation S-K.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

As of the end of the period covered by this report on Form 10-Q, our President (principal executive officer) and our Chief Financial Officer performed an evaluation of the effectiveness of and the operation of our disclosure controls and procedures as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act. Based on that evaluation, our President and Chief Financial Officer each concluded that as of the end of the period covered by this report on Form 10-Q, our disclosure controls and procedures were not effective in timely alerting them to material information relating to Longwen Group Corp. required to be included in our Exchange Act filings.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or Rule 15d-15 under the Exchange Act that occurred during the quarter ended March 31, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 

 

19
 
 

 

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None

 

Item 1A. Risk Factors

 

As a “smaller reporting company”, we are not required to provide this information under this item pursuant to Regulation S-K.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

On January 19, 2023, the Company granted total 5,000,000 shares of common stock of the Company to six employees and one consultant, pursuant to the Company’s 2022 Equity Incentive Plan, the shares of which were registered with the SEC by filing of the Form S-8 dated on November 7, 2022. The fair value of the shares granted total valued at the amount of $500,000.

 

Item 3. Defaults Upon Senior Securities

 

None

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None

 
20

 

 

 

 
 

 

 

Item 6. Exhibits

 

Exhibit

Number

  Description of Exhibit
31.1*   Certification of Chief Executive Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a)
     
31.2*   Certification of Chief Financial Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a)
     
32.1*   Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
     
101.INS   Inline XBRL Instance Document
     
101.SCH   Inline XBRL Taxonomy Extension Schema Document
     
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document
     
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

* Filed herewith.

 

 

 
21

 

 

 

 
 

 

 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  LONGWEN GROUP CORP.
   
Date: May 12, 2023 /s/ Xizhen Ye
  Xizhen Ye
  Chief Executive Officer

 

Date: May 12, 2023 /s/ Xizhen Ye
  Xizhen Ye
  Chief Financial Officer

 

 

 
22

 

 

 

 
 

 

 

EXHIBIT INDEX

 

Exhibit

Number

  Description of Exhibit
31.1*   Certification of Chief Executive Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a)
     
31.2*   Certification of Chief Financial Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a)
     
32.1*   Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
     
101.INS   Inline XBRL Instance Document
     
101.SCH   Inline XBRL Taxonomy Extension Schema Document
     
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document
     
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

* Filed herewith.

 
23
EX-31.1 2 exhibit_31-1.htm CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO THE SECURITIES EXCHANGE ACT RULES 13A-14(A) AND 15D-14(A)

EXHIBIT 31.1

 

CERTIFICATION

 

I, Xizhen Ye, certify that:

 

1. I have reviewed this report on Form 10-Q of Longwen Group Corp.;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
   
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

  a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

  a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

  /s/ Xizhen Ye
  Xizhen Ye
  Chief Executive Officer
  May 12, 2023

 

 

EX-31.2 3 exhibit_31-2.htm CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO THE SECURITIES EXCHANGE ACT RULES 13A-14(A) AND 15D-14(A)

EXHIBIT 31.2

 

CERTIFICATION

 

I, Xizhen Ye, certify that:

 

1. I have reviewed this report on Form 10-Q of Longwen Group Corp.;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
   
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

  a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

  a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

  /s/ Xizhen Ye
  Xizhen Ye
  Chief Financial Officer
  May 12, 2023

 

EX-32.1 4 exhibit_32-1.htm CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the report of Longwen Group Corp. (the “Company”) on Form 10-Q for the period ending March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
   
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

  /s/ Xizhen Ye
  Xizhen Ye
  Chief Executive Officer
  May 12, 2023
   
  /s/ Xizhen Ye
  Xizhen Ye
  Chief Financial Officer
  May 12, 2023

 

 

 

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May 11, 2023
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Document Fiscal Year Focus 2023  
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Entity Registrant Name LONGWEN GROUP CORP.  
Entity Central Index Key 0000723533  
Entity Tax Identification Number 95-3506403  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One No. 25  
Entity Address, Address Line Two Caihe Rd  
Entity Address, Address Line Three Shangcheng Dist.  
Entity Address, City or Town Hangzhou  
Entity Address, Country CN  
Entity Address, Postal Zip Code 310000  
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Mar. 31, 2023
Dec. 31, 2022
Current assets    
Cash $ 20,798 $ 68,121
Accounts receivable, net of allowance 226,608
Inventories 41,783
Prepaid expenses and other current assets 23,874 58,413
Total current assets 313,063 126,534
Property and equipment, net 272,442 274,370
Intangible assets, net 3,458 3,625
Goodwill 1,132 1,132
TOTAL ASSETS 590,095 405,661
Current Liabilities:    
Accounts payable and accrued liabilities 212,525 31,962
Loans from third parties 133,963 12,250
Shareholder loans 90,128 90,494
Total current liabilities 436,616 134,706
TOTAL LIABILITIES 436,616 134,706
STOCKHOLDERS’ EQUITY    
Preferred stock, $0.0001 par value, 50,000,000 authorized, nil shares issued and outstanding
Common stock, $0.0001 par value, 550,000,000 authorized, 79,108,926 and 74,108,926 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively 7,911 7,411
Additional paid-in capital 19,785,039 19,285,539
Accumulated deficit (19,646,924) (19,027,835)
Accumulated other comprehensive income 7,453 5,840
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Mar. 31, 2023
Dec. 31, 2022
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3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Revenues:    
Consulting service income $ 13,026 $ 1,171
Online product sales 6,082
Aquaculture product sales 221,601
Total revenues 240,709 1,171
Cost of revenues:    
Online product sales 2,199
Aquaculture product sales 199,156
Total cost of revenues 201,355
Gross profit 39,354 1,171
Operating Expenses    
Professional expenses 73,155 34,780
Share-based compensation 500,000
Selling, general and administrative expenses 83,905 9,740
Total operating expenses 657,060 44,520
Loss from operations (617,706) (43,349)
Other income (expenses):    
Interest expense, net (55) (125)
Other (expense) income, net (485) 224
Total other (expense) income, net (540) 99
Net loss before income tax (618,246) (43,250)
Income tax expense 843
Net loss (619,089) (43,250)
Other comprehensive income    
Foreign currency translation gain 1,613 482
Total other comprehensive income 1,613 482
Comprehensive loss $ (617,476) $ (42,768)
Weighted average shares outstanding: Basic and diluted 78,010,025 65,173,317
Earnings per share: Basic and diluted $ (0.01) $ (0.00)
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CONSOLIDATED STATEMENTS OF CASH FLOWS
3 Months Ended
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Cash flows from operating activities:    
Net loss $ (619,089) $ (43,250)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 3,305 143
Share-based compensation 500,000
Changes in operating assets and liabilities:    
Accounts receivable (227,486)
Inventories (41,945)
Prepaid expenses and other current assets 34,613 (34,750)
Accounts payable and accrued liabilities 182,937 125
Net cash used in operating activities (167,665) (77,732)
Cash flows from investing activities:    
Purchase of equipment (5,412)
Cash obtained from business acquisition 7
Net cash used in investing activities (5,405)
Cash flows from financing activities:    
Proceeds from shareholder loans 82,107
Net proceeds from third-party’s loans 134,481
Repayment to shareholder loans (14,618)
Proceeds from common stock issuance 116,087
Net cash provided by financing activities 119,863 198,194
Effect of exchange rate changes on cash and cash equivalents 479 (518)
Net increase (decrease) in cash and cash equivalents (47,323) 114,539
Cash, beginning balance 68,121
Cash, ending balance 20,798 114,539
Supplemental Disclosures:    
Interest paid
Income tax paid
Supplemental Disclosures of Non-Cash Investing and Financing Activities:    
Acquisition of Hangzhou Longwen Enterprise Management with shareholder loan 993
Repayment of commercial loan and interest by a related party on behalf of the Company $ 14,050
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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Total
Beginning balance, value at Dec. 31, 2021 $ 6,513 $ 18,261,346 $ (18,281,409) $ (13,550)
Shares, Issued at Dec. 31, 2021 65,127,061        
Issuance of common stock $ 39 116,048 116,087
Issuance of common stock, shares   386,955        
Other comprehensive income 482 482
Net loss (43,250) (43,250)
Ending balance, value at Mar. 31, 2022 $ 6,552 18,377,394 (18,324,659) 482 59,769
Shares, Issued at Mar. 31, 2022 65,514,016        
Beginning balance, value at Dec. 31, 2022 $ 7,411 19,285,539 (19,027,835) 5,840 270,955
Shares, Issued at Dec. 31, 2022 74,108,926        
Shares issued for compensation $ 500 499,500 500,000
Shares issued for compensation, shares   5,000,000        
Other comprehensive income 1,613 1,613
Net loss (619,089) (619,089)
Ending balance, value at Mar. 31, 2023 $ 7,911 $ 19,785,039 $ (19,646,924) $ 7,453 $ 153,479
Shares, Issued at Mar. 31, 2023 79,108,926        
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3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

 

Longwen Group Corp. (the “Company”) was originally incorporated as Expertelligence, Inc in the State of California on March 31, 1980 and reincorporated in the State of Nevada on November 17, 2005.  On January 23, 2017, after a series of various name changes, the Company amended its Articles of Incorporation (“Charter Amendment”) to affect the current name change of Longwen Group Corp with trading symbol of “LWLW”.

 

On or about April 5, 2016, the Company affected a 1 for 750 share reverse split of its issued and outstanding common stocks and reduced to 127,061 shares outstanding. Effective November 29, 2016, 66,667 shares of common stock of the Company were transferred to Longwen Group Corp., a Cayman Island company (“Longwen Cayman”). All of the shares held by Longwen Cayman are restricted securities.  As a result of the transactions, Mr. Xizhen Ye, President of Longwen Cayman, was appointed as a sole Director of the Company, and President and Chief Executive Officer and Chief Financial Officer of the Company. On August 22, 2018, Mr. Lizhong Lu was appointed as a director of Board.

 

On June 9, 2021, Anthony Lombardo (“Lombardo”) filed an Application for Appointment of Custodian (“Application”) with the Eighth Judicial District Court in Nevada to request the custodianship of the Company due to the Company’s non-response and late filing with the State of Nevada. On June 24, 2021, a hearing was held on this Application, where Lombardo was named temporary custodian of the Company. Subsequently after Lombardo’s custodianship, Deanna Johnson was appointed as the CEO, CFO and Secretary of the Company. On September 1, 2021, Deanna Johnson appointed Joseph Passalaqua (“Joseph”) as CEO, CFO and Secretary and resigned from all positions in the Company.

 

On October 25, 2021, Mr. Xizhen Ye (“Ye”), the ex-officer and director of the Company prior to Lombardo’s custodianship, and Longwen Cayman, filed a motion to dissolve custodianship (“Motion”) with the Eighth Judicial District Court of Nevada State. Pursuant to the Settlement Agreement entered on January 12, 2022, by Longwen Cayman, Mr. Ye, Lombardo, Joseph and Deanna Johnson regarding Lombardo’s custodianship, Mr. Ye and Mr. Lizhong Lu were reinstated as the officer and directors of the Company, and 65,000,000 common stocks of the Company was transferred from Joseph to Mr. Ye on February 9, 2022. Further on February 17, 2022, the Eighth Judicial District Court officially terminated Lombardo’s custodianship over the Company.

 

On February 23, 2022, the Company entered into an Acquisition Agreement with a third-party individual to acquire the 100% ownership of Hangzhou Longwen Enterprise Management Co., Ltd. (“Hangzhou Longwen”), a wholly foreign-owned enterprise (“WOFE”) in Hangzhou, the People’s Republic of China (the “PRC”), for a total cash consideration of $1,000. As a result of the acquisition, Hangzhou Longwen became the Company’s wholly owned subsidiary in the PRC. Hangzhou Longwen was originally registered on January 4, 2012 and has minimum operations since its inception. The Company recognize goodwill of $993 upon consummated the acquisition. During 2022, Hangzhou Longwen entered consulting service agreements with various customers to assist in their various business, including but not limit to financial report preparation, business negotiation and business website maintenance and/or publicity, and etc.

 

On October 11, 2022, the Company and its subsidiary, Hangzhou Longwen entered into an Acquisition Agreement with a third-party individual to acquire 100% ownership of Hangzhou Yusu Trading Co., Ltd.. (“HZYS”), a limited liability company in Hangzhou, the People’s Republic of China (the “PRC”), for a total cash consideration of RMB 1,000 or about USD $141. Upon consummated Hangzhou Yushu became Hangzhou Longwen’s wholly owned subsidiary in the PRC. HZYS was originally registered on April 20, 2020 and has minimum operations since its inception. The Company recognize goodwill of $139 upon consummated the acquisition. HZYS generated revenues from online product sales and aquaculture product sales.

On March 3, 2023, Hangzhou Longwen established a new subsidiary, Huzhou Wohong Fishery Co., Ltd. (“HWF”), to operate aquacultural breeding, wholesale and retail of aquaculture products and etc.

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NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries as described in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation.

   

Basis of Presentation

 

The unaudited consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement of the financial statements have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

 

Use of Estimates

 

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions.

 

Foreign Currency Transactions

 

The Company’s consolidated financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries including Hangzhou Longwen, Hangzhou Yushu and Huzhou Wohong, are RMB. The resulting translation adjustments are reported under other comprehensive loss in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 220 (“ASC 220”), “Reporting Comprehensive Income”. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income.

 

The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into U.S. dollars are recorded in shareholders’ equity as part of accumulated other comprehensive loss. The exchange rate used for financial statements are as follows:

 

   

Average Rate for the three months ended March 31, 

 
    2023     2022
China yuan (RMB)   RMB 6.8411     RMB 6.3464
United States dollar ($)   $ 1.0000     $ 1.0000
                 

 

    Exchange Rate at  
    March 31, 2022     December 31, 2022  
China yuan (RMB)   RMB  6.8676     RMB  6.8972  
United States dollar ($)   $ 1.0000     $ 1.0000  

 

Revenue Recognition

 

The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government.

The Company’s consulting service income consists of the delivery of focused insights and recommendations that assist customers with their challenges in developing and executing strategies around their trade business and financial reporting processes. The consulting services provided are fixed-fee arrangements that are generally in one-year term. The Company has concluded that each contract represents a single performance obligation as each is a single promise to deliver a customized engagement and deliverable. For the majority of these services, either practically or contractually, the work performed and delivered to the customer has no alternative use to the Company. Additionally, the Company maintains an enforceable right to payment at all times throughout the contract.

The Company’s online product sales consist of selling products to end customers through online channel, such as apps embedded in Wechat. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers.

The Company’s aquaculture product sales consist of selling aquacultural products to customers through offline channel. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers. The Company concludes the presentation of revenue generated from selling of aquaculture products is at a gross basis as the Company acts as a principal by controlling sales transactions provided to their customers.

Concentration

During the three months ended March 31, 2023, the Company generated 63% and 20% of revenues from the top 2 customers, respectively. The Company’s cost of revenues consisted of 65%, 21% and 13% purchases from top 3 vendors, respectively, for the three months ended March 31, 2023. The Company’s revenue and cost of revenues were not material during the three months ended March 31, 2022.

Share-based Compensation

 

The Company accounts for stock options and other equity-based compensation issued in accordance with ASC 718 “Stock Compensation”, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported.

 

Income Taxes

 

The Company accounts for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. 

 

Related Parties

 

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

 

 

Fair Value Measurements

 

Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:

 

  · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

  · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

 

  · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

 

As of March 31, 2023 and December 31, 2022, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis. The carrying value of the Company’s cash, accounts receivable, net, loans from third parties, shareholder loans and accounts payable and accrued liabilities approximates the fair value due to the short-term maturity.

 

Segment Reporting

 

Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” requires public companies to report financial and descriptive information about their reportable operating segments. We identify our operating segments based on how our chief operating decision maker internally evaluates separate financial information, business activities and management responsibility. During the three months ended March 31, 2023 and 2022, the Company determined that we have one reportable segment as we manage the business from the geography location.

 

Accounting Standards Recently Adopted

 

In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. The Company adopted ASU No. 2016-13 on January 1, 2023, which had no impact on the beginning balance of the Company’s balance as there was no receivable balances as of January 1, 2023.

    

Accounting Standards Issued but Not Yet Adopted

 

There were updates recently issued. The management does not believe that accounting pronouncements recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows. 

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NOTE 3 – GOING CONCERN
3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NOTE 3 – GOING CONCERN

NOTE 3 – GOING CONCERN

  

The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business.  During the three months ended March 31, 2023, the Company incurred a net loss of $619,089. The Company had an accumulated deficit of $19,646,924 as of March 31, 2023. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.

  

The Company’s future success is dependent upon its ability to acquire and achieve business with profitable operations, generate cash from operating activities and obtain additional financing. The Company intends to raise funds from the issuance of equity and/or debt securities, but there is no assurance that additional funds from the issuance of equity will be available for the Company to finance its operations on acceptable terms, or at all.  These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

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NOTE 4 – PROPERTY AND EQUIPMENT, NET
3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
NOTE 4 – PROPERTY AND EQUIPMENT, NET

NOTE 4 – PROPERTY AND EQUIPMENT, NET

 

As of March 31, 2023 and December 31, 2022, equipment consisted of the following:

 

   March 31, 2023  December 31, 2022
       
Equipment  $7,450   $7,419 
Property   272,489    271,319 
Less: accumulated depreciation   (7,497)   (4,368)
Total property and equipment, net  $272,442   $274,370 

 

On September 28, 2022, the Company consummated an office suite purchase agreement with a third party. Pursuant to the agreement, the Company issued 2,651,780 common stocks of the Company to purchase a 118-square-meter office suite located in Hangzhou City, Zhejiang Province, China. The cost of the office suite was measured at the fair value of the issued common stocks on the closing date of $265,178 less value-added tax of $2,108. The difference of $9,419 between the addition of $263,070 and the cost as of March 31, 2023 is due to the fluctuation of foreign exchange rate. The office space is intended for internal use.

 

Depreciation expenses were $3,122 and $143 for the three months ended March 31, 2023 and 2022, respectively, which was included in selling, general and administrative expenses. The difference with the change in accumulated depreciation was due to exchange difference.

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NOTE 5 – LOANS FROM THIRD PARTIES
3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
NOTE 5 – LOANS FROM THIRD PARTIES

NOTE 5 – LOANS FROM THIRD PARTIES

 

The Company’s loans from third parties consisted of the following as of March 31, 2023 and December 31, 2022:

 

   March 31, 2023  December 31, 2022
Loan with a third-party lender; the loan bears a fixed interest at $500 per annum and due on demand  $     $12,250 
Loan with a third-party lender; unsecure, bearing an interest rate of 0.5% per annum, and due in one year   87,367       
Loan with two third-party lenders; unsecure, non-interest-bearing, and due on December 30, 2023   46,956       
Total loans   133,963    12,250 
Less: current portion   (133,963)   (12,250)
Total non-current portion  $—     $—   

 

On December 31, 2019, the Company entered into a loan agreement of $12,250 with a third-party individual with three-year term. The borrowing bears interest of $300 at the effective date of the contract and fixed rate at $500 per annum, which matured on December 31, 2022 and immediately became due on demand. As of December 31, 2022, the outstanding balance of the borrowing was $12,250 with $1,800 interest payable.  During the three months ended, the loan and interest payable in the total amount of $14,050 was repaid by the wife of the President, on behalf of the Company (Note 8). Total interest expenses for the loan were $nil and $125, respectively, for the three months ended March 31, 2023 and 2022.

 

During the three months ended March 31, 2023, the Company borrowed $46,776 (RMB 320,000) from two third-party individuals. The loans are unsecure, non-interest-bearing, and due on December 30, 2023. As of March 31, 2023, the total amount owed to the two third parties is $46,596, with a difference of $180 due to foreign exchange fluctuation.

 

During the three months ended March 31, 2023, the Company borrowed $87,705 (RMB 600,000) from a third-party individual. The loans are unsecure, bearing an interest rate of 0.5% per annum, and due in one year. As of March 31, 2023, the total amount owed to the third parties is $87,367, with a difference of $338 due to foreign exchange fluctuation. During the three months ended March 31, 2023, the Company accrued interest expense of $378. 

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NOTE 6 – INCOME TAX
3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
NOTE 6 – INCOME TAX

NOTE 6 – INCOME TAX

 

As of March 31, 2023 and December 31, 2022, the Company has incurred an accumulated net loss of approximately $19.1 million and $19.0 million which resulted in a net operating loss for income tax purposes. NOLs can carry forward indefinitely up to offset 80 percent of taxable income after CARES Act effect on December 31, 2017. The deferred tax asset has been fully reserved for valuation allowance as the Company believes they will most-likely-than-not realize the benefits.  

 

Significant components of the deferred tax assets and liabilities for income taxes as of March 31, 2023 and December 31, 2022 consisted of the following: 

   March 31, 2023  December 31, 2022
Deferred tax assets          
Net operating loss carry-forward  $760,807   $630,975 
Total  $760,807   $630,975 
Valuation allowance   (760,807)   (630,975)
Net deferred tax assets - noncurrent  $     $   

 

Reconciliation of income tax provision and the accounting profit multiplied by U.S. federal income tax rate for the three months ended March 31, 2023 and 2022: 

       
   Three Months Ended March 31,
   2023  2022
Income (loss) at 21% statutory tax rate  $(129,832)  $(9,083)
           
Permanent differences            
Increase (decrease) in income taxes resulting from:          
Net operating loss carry forward   (630,975)   (474,226)
Change in valuation allowance   760,807    483,309 
   $     $   

  

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NOTE 7 – STOCKHOLDERS’ EQUITY
3 Months Ended
Mar. 31, 2023
Equity [Abstract]  
NOTE 7 – STOCKHOLDERS’ EQUITY

NOTE 7 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

As of March 31, 2023 and December 31, 2022, the Company had 79,108,926 and 74,108,926 shares of common stock issued and outstanding, respectively.

 

In March 2022, the Company sold 386,955 shares of common stock to fifteen non-U.S. investors at $0.30 per share. Total $116,087 was received for the all 386,955 shares subscribed in March 2022. The Company relied upon Regulation S of the Securities Act of 1933, as amended, for the sale of these securities. No commissions were paid regarding the share issuance and the share certificates were issued with a Rule 144 restrictive legend.

 

2022 Equity Incentive Plan

 

On November 7, 2022, the Board adopted an equity incentive plan to increase stockholder value and to advance the interests of the Company by furnishing a variety of economic incentives (“Incentives”) designed to attract, retain and motivate employees, certain key consultants and directors of the Company (the “2022 Equity Incentive Plan”). Under the 2022 Equity Incentive Plan, the Company can issue up to 10,000,000 shares of common stock of the Company. Incentives may be granted in any one or a combination of: (a) incentive stock options and non-statutory stock options; (b) stock appreciation rights; (c) stock awards; (d) restricted stock; and (e) performance shares. Such incentives may be subject to vesting conditions determined by the Board of Directors at grant. The maximum term of options or other stock-based award granted is ten years or such lesser time as determined by the Board of Directors at the time of grant.

 

On November 10, 2022, the Company granted total 4,250,000 shares of common stock of the Company to four individual consultants, under the 2022 Equity Incentive Plan, vesting immediately upon grant. The fair value of the shares granted totaled $425,000.

 

On January 19, 2023, the Company granted total 5,000,000 shares of common stock of the Company to six employees and one consultant under the Company’s 2022 Equity Incentive Plan. The fair value of the shares granted totaled at the amount of $500,000.

 

As of March 31, 2023, the Company’s common shares issuable under the 2022 Equity Incentive Plan totaled 750,000.

 

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NOTE 8 – RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2023
Related Party Transactions [Abstract]  
NOTE 8 – RELATED PARTY TRANSACTIONS

NOTE 8 – 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 Longwen. The borrowing bear is unsecured, non-interest-bearing and due on demand. During the three months, the Company repaid $14,618 (RMB100,000) to the President. As of March 31, 2023 and December 31, 2022, the balance of the loan due to our President was $76,298 and $90,494, respectively. The difference of $422 is due to the fluctuation in foreign exchange.

 

During the three months ended March 31, 2023, the wife of President of the Company, repaid the commercial loan and the related accrued interest in the total amount of $14,050 on behalf of the Company. As of March 31, 2023, the amount due to the related party outstanding was $13,830, with difference of $220 due to the fluctuation in foreign exchange.

 

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NOTE 9 – COMMITMENTS
3 Months Ended
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
NOTE 9 – COMMITMENTS

NOTE 9 – COMMITMENTS

 

During the year ended December 31, 2022, the Company entered into leases with third parties for office spaces and a parking spot in Hangzhou, PRC, all with a lease term of 12 months. The remaining minimum lease payments under the three leases as of March 31, 2023 was approximately $33,737.

 

HZWH entered an aquacultural products purchase contract with one major vendor on March 14, 2023 for a period from March 15, 2023 to March 14, 2024, with total annual purchases amount of RMB 50 million (approximately $7.3 million).

 

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NOTE 10 – SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2023
Subsequent Events [Abstract]  
NOTE 10 – SUBSEQUENT EVENTS

NOTE 10 – SUBSEQUENT EVENTS

 

The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued and determine that there were no other subsequent events or transactions that require recognition or disclosures in the consolidated financial statements.

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NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation

 

The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries as described in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation.

   

Basis of Presentation

Basis of Presentation

 

The unaudited consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement of the financial statements have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

 

Use of Estimates

Use of Estimates

 

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions.

 

Foreign Currency Transactions

Foreign Currency Transactions

 

The Company’s consolidated financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries including Hangzhou Longwen, Hangzhou Yushu and Huzhou Wohong, are RMB. The resulting translation adjustments are reported under other comprehensive loss in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 220 (“ASC 220”), “Reporting Comprehensive Income”. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income.

 

The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into U.S. dollars are recorded in shareholders’ equity as part of accumulated other comprehensive loss. The exchange rate used for financial statements are as follows:

 

   

Average Rate for the three months ended March 31, 

 
    2023     2022
China yuan (RMB)   RMB 6.8411     RMB 6.3464
United States dollar ($)   $ 1.0000     $ 1.0000
                 

 

    Exchange Rate at  
    March 31, 2022     December 31, 2022  
China yuan (RMB)   RMB  6.8676     RMB  6.8972  
United States dollar ($)   $ 1.0000     $ 1.0000  

 

Revenue Recognition

Revenue Recognition

 

The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government.

The Company’s consulting service income consists of the delivery of focused insights and recommendations that assist customers with their challenges in developing and executing strategies around their trade business and financial reporting processes. The consulting services provided are fixed-fee arrangements that are generally in one-year term. The Company has concluded that each contract represents a single performance obligation as each is a single promise to deliver a customized engagement and deliverable. For the majority of these services, either practically or contractually, the work performed and delivered to the customer has no alternative use to the Company. Additionally, the Company maintains an enforceable right to payment at all times throughout the contract.

The Company’s online product sales consist of selling products to end customers through online channel, such as apps embedded in Wechat. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers.

The Company’s aquaculture product sales consist of selling aquacultural products to customers through offline channel. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers. The Company concludes the presentation of revenue generated from selling of aquaculture products is at a gross basis as the Company acts as a principal by controlling sales transactions provided to their customers.

Concentration

Concentration

During the three months ended March 31, 2023, the Company generated 63% and 20% of revenues from the top 2 customers, respectively. The Company’s cost of revenues consisted of 65%, 21% and 13% purchases from top 3 vendors, respectively, for the three months ended March 31, 2023. The Company’s revenue and cost of revenues were not material during the three months ended March 31, 2022.

Share-based Compensation

Share-based Compensation

 

The Company accounts for stock options and other equity-based compensation issued in accordance with ASC 718 “Stock Compensation”, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported.

 

Income Taxes

Income Taxes

 

The Company accounts for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. 

 

Related Parties

Related Parties

 

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

 

 

Fair Value Measurements

Fair Value Measurements

 

Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:

 

  · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

  · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

 

  · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

 

As of March 31, 2023 and December 31, 2022, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis. The carrying value of the Company’s cash, accounts receivable, net, loans from third parties, shareholder loans and accounts payable and accrued liabilities approximates the fair value due to the short-term maturity.

 

Segment Reporting

Segment Reporting

 

Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” requires public companies to report financial and descriptive information about their reportable operating segments. We identify our operating segments based on how our chief operating decision maker internally evaluates separate financial information, business activities and management responsibility. During the three months ended March 31, 2023 and 2022, the Company determined that we have one reportable segment as we manage the business from the geography location.

 

Accounting Standards Recently Adopted

Accounting Standards Recently Adopted

 

In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. The Company adopted ASU No. 2016-13 on January 1, 2023, which had no impact on the beginning balance of the Company’s balance as there was no receivable balances as of January 1, 2023.

    

Accounting Standards Issued but Not Yet Adopted

Accounting Standards Issued but Not Yet Adopted

 

There were updates recently issued. The management does not believe that accounting pronouncements recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows. 

XML 27 R18.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 4 – PROPERTY AND EQUIPMENT, NET (Tables)
3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment
   March 31, 2023  December 31, 2022
       
Equipment  $7,450   $7,419 
Property   272,489    271,319 
Less: accumulated depreciation   (7,497)   (4,368)
Total property and equipment, net  $272,442   $274,370 
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 5 – LOANS FROM THIRD PARTIES (Tables)
3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Commerical Loan
   March 31, 2023  December 31, 2022
Loan with a third-party lender; the loan bears a fixed interest at $500 per annum and due on demand  $     $12,250 
Loan with a third-party lender; unsecure, bearing an interest rate of 0.5% per annum, and due in one year   87,367       
Loan with two third-party lenders; unsecure, non-interest-bearing, and due on December 30, 2023   46,956       
Total loans   133,963    12,250 
Less: current portion   (133,963)   (12,250)
Total non-current portion  $—     $—   
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 6 – INCOME TAX (Tables)
3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Deferred Income Taxes
   March 31, 2023  December 31, 2022
Deferred tax assets          
Net operating loss carry-forward  $760,807   $630,975 
Total  $760,807   $630,975 
Valuation allowance   (760,807)   (630,975)
Net deferred tax assets - noncurrent  $     $   
Income Tax Provision
       
   Three Months Ended March 31,
   2023  2022
Income (loss) at 21% statutory tax rate  $(129,832)  $(9,083)
           
Permanent differences            
Increase (decrease) in income taxes resulting from:          
Net operating loss carry forward   (630,975)   (474,226)
Change in valuation allowance   760,807    483,309 
   $     $   
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Narrative)
1 Months Ended 2 Months Ended 3 Months Ended 11 Months Ended
Oct. 11, 2022
USD ($)
Oct. 11, 2022
CNY (¥)
Feb. 09, 2022
shares
Feb. 23, 2022
USD ($)
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Apr. 05, 2016
shares
Nov. 29, 2016
shares
Accounting Policies [Abstract]                
Stockholders' Equity, Reverse Stock Split             1 for 750  
Shares reduced | shares             127,061  
Common stock trasferred | shares     65,000,000         66,667
Cash Consideration | $       $ 1,000        
Goodwill | $ $ 139     $ 993        
Acquisition Costs, Period Cost $ 141 ¥ 1,000     $ 993    
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 3 – GOING CONCERN (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Net Income (Loss) Attributable to Parent $ 619,089 $ 43,250  
Retained Earnings (Accumulated Deficit) $ 19,646,924   $ 19,027,835
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.23.1
Property and Equipment (Details) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]    
Equipment $ 7,450 $ 7,419
Property 272,489 271,319
Less: accumulated depreciation (7,497) (4,368)
Total property and equipment, net $ 272,442 $ 274,370
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 4 – PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Sep. 30, 2022
Impairment Effects on Earnings Per Share [Line Items]      
Issuance of common stock for property. shares     2,651,780
Issuance of common stock for property $ 263,070   $ 265,178
Value-added tax 2,108    
Depreciation 3,122 $ 143  
Property, Plant and Equipment [Member]      
Impairment Effects on Earnings Per Share [Line Items]      
Realized Gain (Loss), Foreign Currency Transaction, before Tax $ 9,419    
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.23.1
Commerical Loan (Details) - USD ($)
3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Short-Term Debt [Line Items]    
Total loans $ 133,963 $ 12,250
Third Party Lender 1 [Member]    
Short-Term Debt [Line Items]    
Total loans 12,250
Debt Instrument, Periodic Payment, Interest 500  
Third Party Lender 2 [Member]    
Short-Term Debt [Line Items]    
Total loans $ 87,367
Debt Instrument, Interest Rate, Effective Percentage 0.50%  
Third Party Lender 3 [Member]    
Short-Term Debt [Line Items]    
Total loans $ 46,956
XML 35 R26.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 5 – LOANS FROM THIRD PARTIES (Details Narrative)
1 Months Ended 3 Months Ended
Dec. 31, 2019
USD ($)
Mar. 31, 2023
USD ($)
Mar. 31, 2023
CNY (¥)
Mar. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Short-Term Debt [Line Items]          
Interest Expense, Short-Term Borrowings $ 300        
Payments for Loans   $ 14,618 ¥ 100,000    
Interest Expense       $ 125  
Third Party Lender 1 [Member]          
Short-Term Debt [Line Items]          
Interest Payable, Current         $ 1,800
Third Party Lender 2 [Member]          
Short-Term Debt [Line Items]          
Interest Payable, Current   378      
Payments for Loans   14,050      
Proceeds from Issuance of Debt   87,705 600,000    
Third Party Lender 3 [Member]          
Short-Term Debt [Line Items]          
Proceeds from Issuance of Debt   46,776 ¥ 320,000    
Realized Gain (Loss), Foreign Currency Transaction, before Tax   $ 180      
XML 36 R27.htm IDEA: XBRL DOCUMENT v3.23.1
Deferred Income Taxes (Details) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Net operating loss carry-forward $ 760,807 $ 630,975
Valuation allowance (760,807) (630,975)
Net deferred tax assets - noncurrent
XML 37 R28.htm IDEA: XBRL DOCUMENT v3.23.1
Income Tax Provision (Details) - USD ($)
3 Months Ended 15 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Mar. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]        
Income (loss) at 21% statutory tax rate $ (129,832) $ (9,083)    
U.S. statutory rate     21.00%  
Permanent differences    
Deferred Tax Assets, Tax Credit Carryforwards (630,975)   $ (630,975) $ (474,226)
Change in valuation allowance 760,807 483,309    
     
XML 38 R29.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 6 – INCOME TAX (Details Narrative) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Operating Loss Carryforwards $ 19,100,000 $ 19,000,000.0
XML 39 R30.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 7 – STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 10 Months Ended 15 Months Ended
Jan. 19, 2023
Mar. 31, 2023
Mar. 31, 2022
Nov. 10, 2022
Mar. 31, 2023
Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Common Stock, Shares, Issued   79,108,926     79,108,926 74,108,926
Common Stock, Shares, Outstanding   79,108,926     79,108,926 74,108,926
Sale of Stock, Price Per Share   $ 0.30     $ 0.30  
Common stock shares sold   $ 116,087      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period 5,000,000     4,250,000    
Stock Issued During Period, Value, Stock Options Exercised $ 500,000     $ 425,000    
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures         750,000  
Common Stock [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Common stock shares sold     386,955      
Common stock shares sold     $ 116,087      
XML 40 R31.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 8 – RELATED PARTY TRANSACTIONS (Details Narrative)
3 Months Ended 15 Months Ended
Mar. 31, 2023
USD ($)
Mar. 31, 2023
CNY (¥)
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Related Party Transaction [Line Items]        
Proceeds from Related Party Debt     $ 82,107  
Payments for Loans $ 14,618 ¥ 100,000    
Commerical Loan 14,050   14,050  
Affiliated Entity [Member]        
Related Party Transaction [Line Items]        
Loans Payable 76,298   76,298 $ 90,494
Other Affiliates [Member]        
Related Party Transaction [Line Items]        
Loans Payable $ 13,830   $ 13,830  
XML 41 R32.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 9 – COMMITMENTS (Details Narrative) - Mar. 31, 2023
USD ($)
CNY (¥)
Commitments and Contingencies Disclosure [Abstract]    
Capital Lease Obligations $ 33,737  
Purchase Contract $ 7,300,000 ¥ 50,000,000
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(the “Company”) was originally incorporated as Expertelligence, Inc in the State of California on March 31, 1980 and reincorporated in the State of Nevada on November 17, 2005.  On January 23, 2017, after a series of various name changes, the Company amended its Articles of Incorporation (“Charter Amendment”) to affect the current name change of Longwen Group Corp with trading symbol of “LWLW”.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On or about April 5, 2016, the Company affected a <span id="xdx_90F_eus-gaap--StockholdersEquityReverseStockSplit_c20160101__20160405_zHVTJ0Iu0YSi">1 for 750</span> share reverse split of its issued and outstanding common stocks and reduced to <span id="xdx_901_eus-gaap--WeightedAverageNumberOfSharesCommonStockSubjectToRepurchaseOrCancellation_c20160101__20160405_zpGMi4cmlAO1" title="Shares reduced">127,061</span> shares outstanding. Effective November 29, 2016, <span id="xdx_902_eus-gaap--NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityInstrumentConsiderationSharesIssued1_c20160101__20161129_z5uZGiVARCZ1" title="Common stock trasferred">66,667</span> shares of common stock of the Company were transferred to Longwen Group Corp., a Cayman Island company (“Longwen Cayman”). All of the shares held by Longwen Cayman are restricted securities.  As a result of the transactions, Mr. Xizhen Ye, President of Longwen Cayman, was appointed as a sole Director of the Company, and President and Chief Executive Officer and Chief Financial Officer of the Company. On August 22, 2018, Mr. Lizhong Lu was appointed as a director of Board.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On June 9, 2021, Anthony Lombardo (“Lombardo”) filed an Application for Appointment of Custodian (“Application”) with the Eighth Judicial District Court in Nevada to request the custodianship of the Company due to the Company’s non-response and late filing with the State of Nevada. On June 24, 2021, a hearing was held on this Application, where Lombardo was named temporary custodian of the Company. Subsequently after Lombardo’s custodianship, Deanna Johnson was appointed as the CEO, CFO and Secretary of the Company. On September 1, 2021, Deanna Johnson appointed Joseph Passalaqua (“Joseph”) as CEO, CFO and Secretary and resigned from all positions in the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On October 25, 2021, Mr. Xizhen Ye (“Ye”), the ex-officer and director of the Company prior to Lombardo’s custodianship, and Longwen Cayman, filed a motion to dissolve custodianship (“Motion”) with the Eighth Judicial District Court of Nevada State. Pursuant to the Settlement Agreement entered on January 12, 2022, by Longwen Cayman, Mr. Ye, Lombardo, Joseph and Deanna Johnson regarding Lombardo’s custodianship, Mr. Ye and Mr. Lizhong Lu were reinstated as the officer and directors of the Company, and <span id="xdx_90D_eus-gaap--NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityInstrumentConsiderationSharesIssued1_c20220101__20220209_z4fElDgR70ok" title="Common stock trasferred">65,000,000</span> common stocks of the Company was transferred from Joseph to Mr. Ye on February 9, 2022. Further on February 17, 2022, the Eighth Judicial District Court officially terminated Lombardo’s custodianship over the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On February 23, 2022, the Company entered into an Acquisition Agreement with a third-party individual to acquire the 100% ownership of Hangzhou Longwen Enterprise Management Co., Ltd. (“Hangzhou Longwen”), a wholly foreign-owned enterprise (“WOFE”) in Hangzhou, the People’s Republic of China (the “PRC”), for a total cash consideration of $<span id="xdx_901_eus-gaap--AssetAcquisitionConsiderationTransferred_c20220101__20220223_z1VsYD4Ngape" title="Cash Consideration">1,000</span>. As a result of the acquisition, Hangzhou Longwen became the Company’s wholly owned subsidiary in the PRC. Hangzhou Longwen was originally registered on January 4, 2012 and has minimum operations since its inception. The Company recognize goodwill of <span id="xdx_90E_eus-gaap--GoodwillAcquiredDuringPeriod_c20220101__20220223_zW1P123IoMAj" title="Goodwill">$993</span> upon consummated the acquisition. During 2022, Hangzhou Longwen entered consulting service agreements with various customers to assist in their various business, including but not limit to financial report preparation, business negotiation and business website maintenance and/or publicity, and etc.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 12pt; text-align: justify; background-color: white">On October 11, 2022, the Company and its subsidiary, Hangzhou Longwen entered into an Acquisition Agreement with a third-party individual to acquire 100% ownership of Hangzhou Yusu Trading Co., Ltd.. (“HZYS”), a limited liability company in Hangzhou, the People’s Republic of China (the “PRC”), for a total cash consideration of RMB <span id="xdx_907_eus-gaap--AcquisitionCosts_uRMB_c20221001__20221011_zHv5Yj5jAd51">1,000</span> or about USD <span id="xdx_90B_eus-gaap--AcquisitionCosts_c20221001__20221011_zsMdXJZYHf26">$141</span>. Upon consummated Hangzhou Yushu became Hangzhou Longwen’s wholly owned subsidiary in the PRC. HZYS was originally registered on April 20, 2020 and has minimum operations since its inception. The Company recognize goodwill of <span id="xdx_908_eus-gaap--GoodwillAcquiredDuringPeriod_c20221001__20221011_zbKEtr0Jux5f" title="Goodwill">$139</span> upon consummated the acquisition. HZYS generated revenues from online product sales and aquaculture product sales.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="background-color: white">On March 3, 2023, Hangzhou Longwen established a new subsidiary, Huzhou Wohong Fishery Co., Ltd. (“HWF”), to operate aquacultural breeding, wholesale and retail of aquaculture products and etc.</span></p> 1 for 750 127061 66667 65000000 1000 993 1000 141 139 <p id="xdx_803_eus-gaap--SignificantAccountingPoliciesTextBlock_zpK9jqaRkx07" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_847_eus-gaap--ConsolidationPolicyTextBlock_zoUvtvQZ7Pv6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Principles of Consolidation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries as described in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">   </p> <p id="xdx_844_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zTy5dO1Dzu96" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Basis of Presentation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement of the financial statements have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--UseOfEstimates_zm46q3uFgcn9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Use of Estimates</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_840_eus-gaap--ForeignCurrencyDisclosureTextBlock_zCNZtkzhFMV4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Foreign Currency Transactions</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s consolidated financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries including Hangzhou Longwen, Hangzhou Yushu and Huzhou Wohong, are RMB. The resulting translation adjustments are reported under other comprehensive loss in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 220 (“ASC 220”), <b>“Reporting Comprehensive Income”</b>. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into U.S. dollars are recorded in shareholders’ equity as part of accumulated other comprehensive loss. The exchange rate used for financial statements are as follows:</p> <p style="font: 1pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="vertical-align: top"> <p style="border-bottom: black 0.5pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><span style="font-size: 10pt"><i>Average Rate for the three months ended March 31,</i></span> </p></td> <td> </td></tr> <tr> <td> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><span style="font-size: 10pt"><i>2023</i></span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="3" style="border-bottom: black 1pt solid; vertical-align: top; text-align: center"><span style="font-size: 10pt"><i>2022</i></span></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">China yuan (RMB)</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; vertical-align: bottom"><span style="font-size: 10pt">RMB</span></td> <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">6.8411</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="vertical-align: bottom"><span style="font-size: 10pt">RMB</span></td> <td colspan="2" style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">6.3464</span></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">United States dollar ($)</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; vertical-align: bottom"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">1.0000</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="vertical-align: bottom"><span style="font-size: 10pt">$</span></td> <td colspan="2" style="vertical-align: bottom; text-align: right; text-indent: 10pt"><span style="font-size: 10pt">1.0000</span></td></tr> <tr> <td style="width: 76%"> </td> <td style="width: 1%"> </td> <td style="width: 3%"> </td> <td style="width: 6%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 4%"> </td> <td style="width: 5%"> </td> <td style="width: 3%"> </td></tr> </table> <p style="font: 1pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><span style="font-size: 10pt"><i>Exchange Rate at</i></span></td> <td style="white-space: nowrap"> </td></tr> <tr> <td> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><span style="font-size: 10pt"><i>March 31, 2022</i></span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><span style="font-size: 10pt"><i>December 31, 2022</i></span></td> <td style="white-space: nowrap"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">China yuan (RMB)</span></td> <td style="white-space: nowrap; width: 1%"> </td> <td style="white-space: nowrap; vertical-align: bottom; width: 1%"><span style="font-size: 10pt">RMB </span></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><span style="font-size: 10pt">6.8676</span></td> <td style="white-space: nowrap; width: 1%"> </td> <td style="white-space: nowrap; width: 1%"> </td> <td style="white-space: nowrap; vertical-align: bottom; width: 1%"><span style="font-size: 10pt">RMB </span></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><span style="font-size: 10pt">6.8972</span></td> <td style="white-space: nowrap; width: 1%"> </td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">United States dollar ($)</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; vertical-align: bottom"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">1.0000</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; vertical-align: bottom"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">1.0000</span></td> <td style="white-space: nowrap"> </td></tr> </table> <p style="font: 1pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p id="xdx_842_eus-gaap--RevenueRecognitionPolicyTextBlock_zPgERCrp5qIc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue Recognition</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Company’s consulting service income consists of the delivery of focused insights and recommendations that assist customers with their challenges in developing and executing strategies around their trade business and financial reporting processes. The consulting services provided are fixed-fee arrangements that are generally in one-year term. The Company has concluded that each contract represents a single performance obligation as each is a single promise to deliver a customized engagement and deliverable. For the majority of these services, either practically or contractually, the work performed and delivered to the customer has no alternative use to the Company. Additionally, the Company maintains an enforceable right to payment at all times throughout the contract.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Company’s online product sales consist of selling products to end customers through online channel, such as apps embedded in Wechat. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Company’s aquaculture product sales consist of selling aquacultural products to customers through offline channel. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers. The Company concludes the presentation of revenue generated from selling of aquaculture products is at a gross basis as the Company acts as a principal by controlling sales transactions provided to their customers.</p> <p id="xdx_840_eus-gaap--ConcentrationRiskCreditRisk_zfrz8cDTgQb6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><span style="text-decoration: underline">Concentration </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">During the three months ended March 31, 2023, the Company generated 63% and 20% of revenues from the top 2 customers, respectively. The Company’s cost of revenues consisted of 65%, 21% and 13% purchases from top 3 vendors, respectively, for the three months ended March 31, 2023. The Company’s revenue and cost of revenues were not material during the three months ended March 31, 2022.</p> <p id="xdx_84D_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zBLoZko9vlkb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Share-based Compensation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for stock options and other equity-based compensation issued in accordance with ASC 718 “Stock Compensation”, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--IncomeTaxPolicyTextBlock_zr3cmHJs5ay7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Income Taxes</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes under ASC 740, “<b>Income Taxes</b>.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. </p> <p style="font: 1pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> <p id="xdx_847_ecustom--RelatedPartyTransactionsPolicyTextBlock_zwmN4nhw9Uh1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Related Parties</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC 850, <b>Related Party Disclosures,</b> for the identification of related parties and disclosure of related party transactions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_zlJiFnmXpSo1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Fair Value Measurements</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="width: 4%"> </td> <td style="vertical-align: top; width: 4%"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="width: 4%"> </td> <td style="vertical-align: top; width: 4%"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="width: 4%"> </td> <td style="vertical-align: top; width: 4%"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2023 and December 31, 2022, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis. The carrying value of the Company’s cash, accounts receivable, net, loans from third parties, shareholder loans and accounts payable and accrued liabilities approximates the fair value due to the short-term maturity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_846_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zOIRGgKyV6l6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><span style="text-decoration: underline">Segment Reporting</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” requires public companies to report financial and descriptive information about their reportable operating segments. We identify our operating segments based on how our chief operating decision maker internally evaluates separate financial information, business activities and management responsibility. During the three months ended March 31, 2023 and 2022, the Company determined that we have one reportable segment as we manage the business from the geography location.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84D_eus-gaap--NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock_zP8ARLUOLf0i" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Accounting Standards Recently Adopted</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. The Company adopted ASU No. 2016-13 on January 1, 2023, which had no impact on the beginning balance of the Company’s balance as there was no receivable balances as of January 1, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">    </p> <p id="xdx_846_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z2w6ArBaBDt6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Accounting Standards Issued but Not Yet Adopted</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were updates recently issued. The management does not believe that accounting pronouncements recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows. </p> <p id="xdx_847_eus-gaap--ConsolidationPolicyTextBlock_zoUvtvQZ7Pv6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Principles of Consolidation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries as described in Note 1. All significant intercompany transactions and balances have been eliminated in the consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">   </p> <p id="xdx_844_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zTy5dO1Dzu96" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Basis of Presentation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement of the financial statements have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--UseOfEstimates_zm46q3uFgcn9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Use of Estimates</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those estimates and assumptions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_840_eus-gaap--ForeignCurrencyDisclosureTextBlock_zCNZtkzhFMV4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Foreign Currency Transactions</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s consolidated financial statements are presented in U.S. dollars ($), which is the Company’s reporting and functional currency. The functional currencies of the Company’s subsidiaries including Hangzhou Longwen, Hangzhou Yushu and Huzhou Wohong, are RMB. The resulting translation adjustments are reported under other comprehensive loss in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 220 (“ASC 220”), <b>“Reporting Comprehensive Income”</b>. Gains and losses resulting from the translation of foreign currency transactions are reflected in the consolidated statements of operations and other comprehensive income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency using the rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the consolidated statements of operations and other comprehensive income.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into U.S. dollars are recorded in shareholders’ equity as part of accumulated other comprehensive loss. The exchange rate used for financial statements are as follows:</p> <p style="font: 1pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="vertical-align: top"> <p style="border-bottom: black 0.5pt solid; font: 12pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><span style="font-size: 10pt"><i>Average Rate for the three months ended March 31,</i></span> </p></td> <td> </td></tr> <tr> <td> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><span style="font-size: 10pt"><i>2023</i></span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="3" style="border-bottom: black 1pt solid; vertical-align: top; text-align: center"><span style="font-size: 10pt"><i>2022</i></span></td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">China yuan (RMB)</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; vertical-align: bottom"><span style="font-size: 10pt">RMB</span></td> <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">6.8411</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="vertical-align: bottom"><span style="font-size: 10pt">RMB</span></td> <td colspan="2" style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">6.3464</span></td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">United States dollar ($)</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; vertical-align: bottom"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">1.0000</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="vertical-align: bottom"><span style="font-size: 10pt">$</span></td> <td colspan="2" style="vertical-align: bottom; text-align: right; text-indent: 10pt"><span style="font-size: 10pt">1.0000</span></td></tr> <tr> <td style="width: 76%"> </td> <td style="width: 1%"> </td> <td style="width: 3%"> </td> <td style="width: 6%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 4%"> </td> <td style="width: 5%"> </td> <td style="width: 3%"> </td></tr> </table> <p style="font: 1pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td> </td> <td style="white-space: nowrap"> </td> <td colspan="6" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><span style="font-size: 10pt"><i>Exchange Rate at</i></span></td> <td style="white-space: nowrap"> </td></tr> <tr> <td> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><span style="font-size: 10pt"><i>March 31, 2022</i></span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><span style="font-size: 10pt"><i>December 31, 2022</i></span></td> <td style="white-space: nowrap"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">China yuan (RMB)</span></td> <td style="white-space: nowrap; width: 1%"> </td> <td style="white-space: nowrap; vertical-align: bottom; width: 1%"><span style="font-size: 10pt">RMB </span></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><span style="font-size: 10pt">6.8676</span></td> <td style="white-space: nowrap; width: 1%"> </td> <td style="white-space: nowrap; width: 1%"> </td> <td style="white-space: nowrap; vertical-align: bottom; width: 1%"><span style="font-size: 10pt">RMB </span></td> <td style="vertical-align: bottom; width: 9%; text-align: right"><span style="font-size: 10pt">6.8972</span></td> <td style="white-space: nowrap; width: 1%"> </td></tr> <tr style="background-color: white"> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">United States dollar ($)</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; vertical-align: bottom"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">1.0000</span></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; vertical-align: bottom"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">1.0000</span></td> <td style="white-space: nowrap"> </td></tr> </table> <p style="font: 1pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p> <p id="xdx_842_eus-gaap--RevenueRecognitionPolicyTextBlock_zPgERCrp5qIc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Revenue Recognition</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Company’s consulting service income consists of the delivery of focused insights and recommendations that assist customers with their challenges in developing and executing strategies around their trade business and financial reporting processes. The consulting services provided are fixed-fee arrangements that are generally in one-year term. The Company has concluded that each contract represents a single performance obligation as each is a single promise to deliver a customized engagement and deliverable. For the majority of these services, either practically or contractually, the work performed and delivered to the customer has no alternative use to the Company. Additionally, the Company maintains an enforceable right to payment at all times throughout the contract.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Company’s online product sales consist of selling products to end customers through online channel, such as apps embedded in Wechat. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">The Company’s aquaculture product sales consist of selling aquacultural products to customers through offline channel. Revenue is recognized at a point in time when the products are delivered to and accepted by end customers. The Company concludes the presentation of revenue generated from selling of aquaculture products is at a gross basis as the Company acts as a principal by controlling sales transactions provided to their customers.</p> <p id="xdx_840_eus-gaap--ConcentrationRiskCreditRisk_zfrz8cDTgQb6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0"><span style="text-decoration: underline">Concentration </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">During the three months ended March 31, 2023, the Company generated 63% and 20% of revenues from the top 2 customers, respectively. The Company’s cost of revenues consisted of 65%, 21% and 13% purchases from top 3 vendors, respectively, for the three months ended March 31, 2023. The Company’s revenue and cost of revenues were not material during the three months ended March 31, 2022.</p> <p id="xdx_84D_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zBLoZko9vlkb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Share-based Compensation</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for stock options and other equity-based compensation issued in accordance with ASC 718 “Stock Compensation”, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees and nonemployees, net of estimated forfeitures, over the employees’ requisite service period or the non-employee performance period based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84F_eus-gaap--IncomeTaxPolicyTextBlock_zr3cmHJs5ay7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Income Taxes</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes under ASC 740, “<b>Income Taxes</b>.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. </p> <p style="font: 1pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> <p id="xdx_847_ecustom--RelatedPartyTransactionsPolicyTextBlock_zwmN4nhw9Uh1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Related Parties</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows ASC 850, <b>Related Party Disclosures,</b> for the identification of related parties and disclosure of related party transactions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_843_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_zlJiFnmXpSo1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Fair Value Measurements</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="width: 4%"> </td> <td style="vertical-align: top; width: 4%"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="width: 4%"> </td> <td style="vertical-align: top; width: 4%"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="width: 4%"> </td> <td style="vertical-align: top; width: 4%"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2023 and December 31, 2022, the Company did not have any assets or liabilities that were required to be measured at fair value on a recurring basis or on a non-recurring basis. The carrying value of the Company’s cash, accounts receivable, net, loans from third parties, shareholder loans and accounts payable and accrued liabilities approximates the fair value due to the short-term maturity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_846_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zOIRGgKyV6l6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><span style="text-decoration: underline">Segment Reporting</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” requires public companies to report financial and descriptive information about their reportable operating segments. We identify our operating segments based on how our chief operating decision maker internally evaluates separate financial information, business activities and management responsibility. During the three months ended March 31, 2023 and 2022, the Company determined that we have one reportable segment as we manage the business from the geography location.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_84D_eus-gaap--NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock_zP8ARLUOLf0i" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Accounting Standards Recently Adopted</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. The Company adopted ASU No. 2016-13 on January 1, 2023, which had no impact on the beginning balance of the Company’s balance as there was no receivable balances as of January 1, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">    </p> <p id="xdx_846_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z2w6ArBaBDt6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Accounting Standards Issued but Not Yet Adopted</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were updates recently issued. The management does not believe that accounting pronouncements recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows. </p> <p id="xdx_808_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zfbAJ3eDp5J4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 3 – GOING CONCERN</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>   </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business.  During the three months ended March 31, 2023, the Company incurred a net loss of <span id="xdx_90B_eus-gaap--NetIncomeLoss_iN_di_c20230101__20230331_z0mb3YRQ8gWa">$619,089</span>. The Company had an accumulated deficit of $<span id="xdx_90B_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_di_c20230331_zRzOpDLfnFN2">19,646,924</span> as of March 31, 2023. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s future success is dependent upon its ability to acquire and achieve business with profitable operations, generate cash from operating activities and obtain additional financing. The Company intends to raise funds from the issuance of equity and/or debt securities, but there is no assurance that additional funds from the issuance of equity will be available for the Company to finance its operations on acceptable terms, or at all.  These financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> -619089 -19646924 <p id="xdx_80B_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zUGSZNeZccl2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 4 – PROPERTY AND EQUIPMENT, NET</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2023 and December 31, 2022, equipment consisted of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_883_eus-gaap--PropertyPlantAndEquipmentTextBlock_z9Tn1y7YXZs4" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_491_20230331_zM2Gqcrrkaob" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">March 31, 2023</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_492_20221231_zv3zR6wLknml" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzNJk_zannllyPh5xk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; font-size: 10pt; text-align: justify">Equipment</td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">7,450</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">7,419</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--Land_iI_maPPAENzNJk_z6poz7g8GnPb" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify">Property</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">272,489</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">271,319</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzNJk_zBBP3cb9D4jk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(7,497</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(4,368</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzNJk_zFeE54qhV9zd" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-style: italic; text-align: justify">Total property and equipment, net</td><td style="font-size: 10pt; font-style: italic"> </td> <td style="font-size: 10pt; font-style: italic; text-align: left">$</td><td style="font-size: 10pt; font-style: italic; text-align: right">272,442</td><td style="font-size: 10pt; font-style: italic; text-align: left"> </td><td style="font-size: 10pt; font-style: italic"> </td> <td style="font-size: 10pt; font-style: italic; text-align: left">$</td><td style="font-size: 10pt; font-style: italic; text-align: right">274,370</td><td style="font-size: 10pt; font-style: italic; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">On September 28, 2022, the Company consummated an office suite purchase agreement with a third party. Pursuant to the agreement, the Company issued <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesPurchaseOfAssets_c20220101__20220930_zKyy0n3YtHJ4" title="Issuance of common stock for property. shares">2,651,780</span> common stocks of the Company to purchase a 118-square-meter office suite located in Hangzhou City, Zhejiang Province, China. The cost of the office suite was measured at the fair value of the issued common stocks on the closing date of $<span id="xdx_903_eus-gaap--StockIssuedDuringPeriodValuePurchaseOfAssets_c20220101__20220930_zpZsDxSVkjM4" title="Issuance of common stock for property">265,178</span> less value-added tax of $<span id="xdx_906_ecustom--ValueAddedTaxPayable_iI_c20230331_zKcwXeDObXBk" title="Value-added tax">2,108</span>. The difference of <span id="xdx_90C_eus-gaap--ForeignCurrencyTransactionGainLossRealized_c20230101__20230331__us-gaap--FairValueByAssetClassAxis__us-gaap--PropertyPlantAndEquipmentMember_zGsUIkE0eTr6">$9,419</span> between the addition of $<span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValuePurchaseOfAssets_c20230101__20230331_zISTfRytyJD7" title="Issuance of common stock for property">263,070</span> and the cost as of March 31, 2023 is due to the fluctuation of foreign exchange rate. The office space is intended for internal use.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expenses were <span id="xdx_904_eus-gaap--DepreciationNonproduction_c20230101__20230331_ze0Wm501wnsk" title="Depreciation">$3,122</span> and $<span id="xdx_900_eus-gaap--DepreciationNonproduction_c20220101__20220331_zGs1GmmBY3Aj" title="Depreciation">143</span> for the three months ended March 31, 2023 and 2022, respectively, which was included in selling, general and administrative expenses. The difference with the change in accumulated depreciation was due to exchange difference.</p> <table cellpadding="0" cellspacing="0" id="xdx_883_eus-gaap--PropertyPlantAndEquipmentTextBlock_z9Tn1y7YXZs4" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_491_20230331_zM2Gqcrrkaob" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">March 31, 2023</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_492_20221231_zv3zR6wLknml" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzNJk_zannllyPh5xk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; font-size: 10pt; text-align: justify">Equipment</td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">7,450</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">7,419</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--Land_iI_maPPAENzNJk_z6poz7g8GnPb" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify">Property</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">272,489</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">271,319</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzNJk_zBBP3cb9D4jk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(7,497</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(4,368</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzNJk_zFeE54qhV9zd" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-style: italic; text-align: justify">Total property and equipment, net</td><td style="font-size: 10pt; font-style: italic"> </td> <td style="font-size: 10pt; font-style: italic; text-align: left">$</td><td style="font-size: 10pt; font-style: italic; text-align: right">272,442</td><td style="font-size: 10pt; font-style: italic; text-align: left"> </td><td style="font-size: 10pt; font-style: italic"> </td> <td style="font-size: 10pt; font-style: italic; text-align: left">$</td><td style="font-size: 10pt; font-style: italic; text-align: right">274,370</td><td style="font-size: 10pt; font-style: italic; text-align: left"> </td></tr> </table> 7450 7419 272489 271319 7497 4368 272442 274370 2651780 265178 2108 9419 263070 3122 143 <p id="xdx_80A_eus-gaap--DebtDisclosureTextBlock_zLwm21reDZB9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 5 – LOANS FROM THIRD PARTIES</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s loans from third parties consisted of the following as of March 31, 2023 and December 31, 2022:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleOfDebtInstrumentsTextBlock_zZFOnuop32X9" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commerical Loan (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_498_20230331_z5VjNvL9uzi8" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">March 31, 2023</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49F_20221231_z2WIl5HOj5n3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">December 31, 2022</td></tr> <tr id="xdx_40A_eus-gaap--LoansPayableToBankCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--ThirdPartyLender1Member_z2dPYM8pmtwg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; font-size: 10pt; text-align: left">Loan with a third-party lender; the loan bears a fixed interest at $<span id="xdx_907_eus-gaap--DebtInstrumentPeriodicPaymentInterest_c20230101__20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender1Member_zbYMet5aa81h">500</span> per annum and due on demand</td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0499">—</span>  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">12,250</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LoansPayableToBankCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--ThirdPartyLender2Member_zzkzJAVNpIVf" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Loan with a third-party lender; unsecure, bearing an interest rate of <span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_uPure_c20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender2Member_zNgpueCBxFtj">0.5% </span>per annum, and due in one year</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">87,367</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0504">—</span>  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LoansPayableToBankCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--ThirdPartyLender3Member_zPbFBaQmKiOj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Loan with two third-party lenders; unsecure, non-interest-bearing, and due on December 30, 2023</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">46,956</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0508">—</span>  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LoansPayableToBankCurrent_iI_zPc9Vgk8Vnd5" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Total loans</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">133,963</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">12,250</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less: current portion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(133,963</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(12,250</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-style: italic; text-align: left; padding-bottom: 2.5pt">Total non-current portion</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-style: italic; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-style: italic; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-style: italic; text-align: left"> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-style: italic; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-style: italic; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-style: italic; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 31, 2019, the Company entered into a loan agreement of $12,250 with a third-party individual with three-year term. The borrowing bears interest of <span id="xdx_903_eus-gaap--InterestExpenseShortTermBorrowings_c20191201__20191231_zlBxIXdufPhk">$300</span> at the effective date of the contract and fixed rate at $500 per annum, which matured on December 31, 2022 and immediately became due on demand. As of December 31, 2022, the outstanding balance of the borrowing was $12,250 with <span id="xdx_902_eus-gaap--InterestPayableCurrent_iI_c20221231__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender1Member_zGqyhw6LN3td">$1,800</span> interest payable.  During the three months ended, the loan and interest payable in the total amount of $<span id="xdx_904_eus-gaap--PaymentsForLoans_c20230101__20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender2Member_zxNSLlcCQZI6">14,050</span> was repaid by the wife of the President, on behalf of the Company (Note 8). Total interest expenses for the loan were $nil and $<span id="xdx_901_eus-gaap--InterestExpense_c20220101__20220331_zwyHqd2oLYW4">125</span>, respectively, for the three months ended March 31, 2023 and 2022.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended March 31, 2023, the Company borrowed <span id="xdx_90C_eus-gaap--ProceedsFromIssuanceOfDebt_uUSD_c20230101__20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender3Member_zvwxHjE434Od">$46,776</span> (RMB <span id="xdx_902_eus-gaap--ProceedsFromIssuanceOfDebt_uRMB_c20230101__20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender3Member_zQC3qgKno2Kc">320,000</span>) from two third-party individuals. The loans are unsecure, non-interest-bearing, and due on December 30, 2023. As of March 31, 2023, the total amount owed to the two third parties is $46,596, with a difference of $<span id="xdx_90B_eus-gaap--ForeignCurrencyTransactionGainLossRealized_c20230101__20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender3Member_zjexgV68NOw6">180</span> due to foreign exchange fluctuation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended March 31, 2023, the Company borrowed $<span id="xdx_90A_eus-gaap--ProceedsFromIssuanceOfDebt_uUSD_c20230101__20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender2Member_zQard5BV9zCk">87,705</span> (RMB <span id="xdx_906_eus-gaap--ProceedsFromIssuanceOfDebt_uRMB_c20230101__20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender2Member_zC3GodX5yho2">600,000</span>) from a third-party individual. The loans are unsecure, bearing an interest rate of 0.5% per annum, and due in one year. As of March 31, 2023, the total amount owed to the third parties is $87,367, with a difference of $338 due to foreign exchange fluctuation. During the three months ended March 31, 2023, the Company accrued interest expense of $<span id="xdx_90A_eus-gaap--InterestPayableCurrent_iI_c20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender2Member_zFqss6rjhyee">378</span>.<b> </b></p> <table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleOfDebtInstrumentsTextBlock_zZFOnuop32X9" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commerical Loan (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_498_20230331_z5VjNvL9uzi8" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">March 31, 2023</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49F_20221231_z2WIl5HOj5n3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">December 31, 2022</td></tr> <tr id="xdx_40A_eus-gaap--LoansPayableToBankCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--ThirdPartyLender1Member_z2dPYM8pmtwg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; font-size: 10pt; text-align: left">Loan with a third-party lender; the loan bears a fixed interest at $<span id="xdx_907_eus-gaap--DebtInstrumentPeriodicPaymentInterest_c20230101__20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender1Member_zbYMet5aa81h">500</span> per annum and due on demand</td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0499">—</span>  </td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">12,250</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LoansPayableToBankCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--ThirdPartyLender2Member_zzkzJAVNpIVf" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Loan with a third-party lender; unsecure, bearing an interest rate of <span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_uPure_c20230331__us-gaap--DebtInstrumentAxis__custom--ThirdPartyLender2Member_zNgpueCBxFtj">0.5% </span>per annum, and due in one year</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">87,367</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0504">—</span>  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LoansPayableToBankCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--ThirdPartyLender3Member_zPbFBaQmKiOj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Loan with two third-party lenders; unsecure, non-interest-bearing, and due on December 30, 2023</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">46,956</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0508">—</span>  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LoansPayableToBankCurrent_iI_zPc9Vgk8Vnd5" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Total loans</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">133,963</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">12,250</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less: current portion</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(133,963</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(12,250</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-style: italic; text-align: left; padding-bottom: 2.5pt">Total non-current portion</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-style: italic; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-style: italic; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-style: italic; text-align: left"> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-style: italic; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-style: italic; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; font-style: italic; text-align: left"> </td></tr> </table> 500 12250 0.005 87367 46956 133963 12250 300 1800 14050 125 46776 320000 180 87705 600000 378 <p id="xdx_80A_eus-gaap--IncomeTaxDisclosureTextBlock_zAzdtkOZFxK" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 6 – INCOME TAX</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2023 and December 31, 2022, the Company has incurred an accumulated net loss of approximately $<span id="xdx_909_eus-gaap--OperatingLossCarryforwards_iI_dm_c20230331_zoMjcdLxlJL6">19.1 million</span> and $<span id="xdx_902_eus-gaap--OperatingLossCarryforwards_iI_dm_c20221231_zji7I51QLIJl">19.0 million</span> which resulted in a net operating loss for income tax purposes. NOLs can carry forward indefinitely up to offset 80 percent of taxable income after CARES Act effect on December 31, 2017. The deferred tax asset has been fully reserved for valuation allowance as the Company believes they will most-likely-than-not realize the benefits.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant components of the deferred tax assets and liabilities for income taxes as of March 31, 2023 and December 31, 2022 consisted of the following: </p> <table cellpadding="0" cellspacing="0" id="xdx_883_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zyaqnigX8qt4" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Deferred Income Taxes (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49D_20230331_zNRgIfqUIe02" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">March 31, 2023</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_494_20221231_zUYcDaL5fwul" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsCapitalLossCarryforwards_iI_ztpVapbukmxj" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt">Net operating loss carry-forward</td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right">760,807</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right">630,975</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Total</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">760,807</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">630,975</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_zWHhZAAgyB8i" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(760,807</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(630,975</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zBaCaCZY77Td" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Net deferred tax assets - noncurrent</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0535">—</span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0536">—</span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Reconciliation of income tax provision and the accounting profit multiplied by U.S. federal income tax rate for the three months ended March 31, 2023 and 2022: </p> <table cellpadding="0" cellspacing="0" id="xdx_887_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zgVBSGagwUpi" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Tax Provision (Details)"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3" id="xdx_49B_20230101__20230331_zzZsmjounUu1"> </td><td> </td> <td colspan="3" id="xdx_495_20220101__20220331_z8HhLVVryAyi"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">Three Months Ended March 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">2023</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">2022</td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_i_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; font-size: 10pt; text-align: left">Income (loss) at <span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_dp_uPure_c20220101__20230331_zqedNEFXi3W9" title="U.S. statutory rate">21%</span> statutory tax rate</td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">(129,832</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">(9,083</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--IncomeTaxReconciliationTaxExemptIncome_iN_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Permanent differences</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0545">—</span>  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0546">—</span>  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Increase (decrease) in income taxes resulting from:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Net operating loss carry forward</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98E_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwards_iNI_di_c20230331_zArkXIVWLBD2" style="font-size: 10pt; text-align: right">(630,975</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwards_iNI_di_c20221231_zr8TayKCClDa" style="font-size: 10pt; text-align: right">(474,226</td><td style="font-size: 10pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxesBusinessCombinationValuationAllowanceAvailableToReduceIncomeTaxExpense_pp0p0_zQbTtAd7L44f" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Change in valuation allowance</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">760,807</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">483,309</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefit_pp0p0_z5DOE3dGzgAj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0553">—</span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0554">—</span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> <b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"/> 19100000 19000000.0 <table cellpadding="0" cellspacing="0" id="xdx_883_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zyaqnigX8qt4" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Deferred Income Taxes (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49D_20230331_zNRgIfqUIe02" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">March 31, 2023</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_494_20221231_zUYcDaL5fwul" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsCapitalLossCarryforwards_iI_ztpVapbukmxj" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt">Net operating loss carry-forward</td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right">760,807</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right">630,975</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Total</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">760,807</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">630,975</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_zWHhZAAgyB8i" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(760,807</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(630,975</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zBaCaCZY77Td" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Net deferred tax assets - noncurrent</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0535">—</span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0536">—</span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table> 760807 630975 760807 630975 <table cellpadding="0" cellspacing="0" id="xdx_887_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zgVBSGagwUpi" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Tax Provision (Details)"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3" id="xdx_49B_20230101__20230331_zzZsmjounUu1"> </td><td> </td> <td colspan="3" id="xdx_495_20220101__20220331_z8HhLVVryAyi"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">Three Months Ended March 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">2023</td><td style="font-size: 10pt; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; font-style: italic; text-align: center">2022</td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_i_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; font-size: 10pt; text-align: left">Income (loss) at <span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_dp_uPure_c20220101__20230331_zqedNEFXi3W9" title="U.S. statutory rate">21%</span> statutory tax rate</td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">(129,832</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td><td style="width: 8%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 12%; font-size: 10pt; text-align: right">(9,083</td><td style="width: 1%; font-size: 10pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--IncomeTaxReconciliationTaxExemptIncome_iN_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Permanent differences</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0545">—</span>  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0546">—</span>  </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Increase (decrease) in income taxes resulting from:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Net operating loss carry forward</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98E_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwards_iNI_di_c20230331_zArkXIVWLBD2" style="font-size: 10pt; text-align: right">(630,975</td><td style="font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwards_iNI_di_c20221231_zr8TayKCClDa" style="font-size: 10pt; text-align: right">(474,226</td><td style="font-size: 10pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxesBusinessCombinationValuationAllowanceAvailableToReduceIncomeTaxExpense_pp0p0_zQbTtAd7L44f" style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Change in valuation allowance</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">760,807</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">483,309</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefit_pp0p0_z5DOE3dGzgAj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0553">—</span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0554">—</span>  </td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table> 0.21 -129832 -9083 630975 474226 760807 483309 <p id="xdx_805_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_z6SL6tfrZD99" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 7 – STOCKHOLDERS’ EQUITY</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration: underline">Common Stock</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2023 and December 31, 2022, the Company had <span id="xdx_905_eus-gaap--CommonStockSharesIssued_iI_c20230331_ztewKeRTY3S5"><span id="xdx_90C_eus-gaap--CommonStockSharesOutstanding_iI_c20230331_zWDmDIJjU0s">79,108,926</span></span> and <span id="xdx_90A_eus-gaap--CommonStockSharesIssued_iI_c20221231_zLfwXovi3NP8"><span id="xdx_908_eus-gaap--CommonStockSharesOutstanding_iI_c20221231_zLbxvvgID3bb">74,108,926</span></span> shares of common stock issued and outstanding, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2022, the Company sold <span id="xdx_907_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20220101__20220331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zSczf0jTT6l1" title="Common stock shares sold">386,955</span> shares of common stock to fifteen non-U.S. investors at $<span id="xdx_909_eus-gaap--SaleOfStockPricePerShare_iI_c20230331_zhA2dpOBzAi8">0.30</span> per share. Total <span id="xdx_904_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20220101__20220331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zsNGq4Enu2Ve" title="Common stock shares sold">$116,087</span> was received for the all 386,955 shares subscribed in March 2022. The Company relied upon Regulation S of the Securities Act of 1933, as amended, for the sale of these securities. No commissions were paid regarding the share issuance and the share certificates were issued with a Rule 144 restrictive legend.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> <p style="font: 15pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>2022 Equity Incentive Plan</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 7, 2022, the Board adopted an equity incentive plan to increase stockholder value and to advance the interests of the Company by furnishing a variety of economic incentives (“Incentives”) designed to attract, retain and motivate employees, certain key consultants and directors of the Company (the “2022 Equity Incentive Plan”). Under the 2022 Equity Incentive Plan, the Company can issue up to 10,000,000 shares of common stock of the Company. Incentives may be granted in any one or a combination of: (a) incentive stock options and non-statutory stock options; (b) stock appreciation rights; (c) stock awards; (d) restricted stock; and (e) performance shares. Such incentives may be subject to vesting conditions determined by the Board of Directors at grant. The maximum term of options or other stock-based award granted is ten years or such lesser time as determined by the Board of Directors at the time of grant.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 10, 2022, the Company granted total <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20220101__20221110_ztUDnEvU87ge">4,250,000</span> shares of common stock of the Company to four individual consultants, under the 2022 Equity Incentive Plan, vesting immediately upon grant. The fair value of the shares granted totaled $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_c20220101__20221110_z31VLYyCZN53">425,000</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 19, 2023, the Company granted total <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20230101__20230119_zZVwubaMOACe">5,000,000</span> shares of common stock of the Company to six employees and one consultant under the Company’s 2022 Equity Incentive Plan. The fair value of the shares granted totaled at the amount of $<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_c20230101__20230119_zPLGOsKuU0B8">500,000</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2023, the Company’s common shares issuable under the 2022 Equity Incentive Plan totaled <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20220101__20230331_zQsnBulLz9M7">750,000</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 79108926 79108926 74108926 74108926 386955 0.30 116087 4250000 425000 5000000 500000 750000 <p id="xdx_802_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zshnYZAgFKTg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 8 – RELATED PARTY TRANSACTIONS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended March 31, 2022, the Company borrowed total <span id="xdx_906_eus-gaap--ProceedsFromRelatedPartyDebt_c20220101__20230331_zvklTYaUIakj">$82,107</span> from the President of the Company for its normal business operations and the acquisition of Hangzhou Longwen. The borrowing bear is unsecured, non-interest-bearing and due on demand. During the three months, the Company repaid <span id="xdx_907_eus-gaap--PaymentsForLoans_c20230101__20230331_zXkV27Owjx8d">$14,618</span> (RMB<span id="xdx_901_eus-gaap--PaymentsForLoans_uRMB_c20230101__20230331_z1mYBiWWe1sc">100,000</span>) to the President. As of March 31, 2023 and December 31, 2022, the balance of the loan due to our President was <span id="xdx_90A_eus-gaap--LoansPayable_iI_c20230331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--AffiliatedEntityMember_zYUcUV3DvPx9">$76,298</span> and <span id="xdx_90D_eus-gaap--LoansPayable_iI_c20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--AffiliatedEntityMember_zV9meF6jjrfl">$90,494</span>, respectively. The difference of $422 is due to the fluctuation in foreign exchange.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended March 31, 2023, the wife of President of the Company, repaid the commercial loan and the related accrued interest in the total amount of $<span id="xdx_90C_eus-gaap--DebtInstrumentCarryingAmount_iI_c20230331_zp9LJXElpzT7" title="Commerical Loan">14,050</span> on behalf of the Company. As of March 31, 2023, the amount due to the related party outstanding was $<span id="xdx_901_eus-gaap--LoansPayable_iI_c20230331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--OtherAffiliatesMember_zqRuso4A9WY1">13,830</span>, with difference of $220 due to the fluctuation in foreign exchange.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 82107 14618 100000 76298 90494 14050 13830 <p id="xdx_805_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zLtdUmNMvJ3g" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>NOTE 9 – COMMITMENTS </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">During the year ended December 31, 2022, the Company entered into leases with third parties for office spaces and a parking spot in Hangzhou, PRC, all with a lease term of 12 months. The remaining minimum lease payments under the three leases as of March 31, 2023 was approximately $<span id="xdx_908_eus-gaap--CapitalLeaseObligations_iI_c20230331_zSwXlhQ132Ta">33,737</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">HZWH entered an <span style="background-color: white">aquacultural products purchase contract with one major vendor on March 14, 2023 for a period from March 15, 2023 to March 14, 2024, with total <span style="background-color: white">annual purchases amount of RMB </span> <span id="xdx_90F_eus-gaap--ContractualObligation_iI_dm_uRMB_c20230331_zKqD9KNkvvbl" title="Purchase Contract">50 million</span> (approximately $<span id="xdx_905_eus-gaap--ContractualObligation_iI_dm_c20230331_zuXA8qgy9f6j" title="Purchase Contract">7.3 million</span>).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> 33737 50000000 7300000 <p id="xdx_804_eus-gaap--SubsequentEventsTextBlock_z5pNO8RaIRyi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 10 – SUBSEQUENT EVENTS</b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">The Company has evaluated all other subsequent events through the date these consolidated financial statements were issued and determine that there were no other subsequent events or transactions that require recognition or disclosures in the consolidated financial statements.</span></p> EXCEL 43 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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