RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 14. RELATED PARTY TRANSACTIONS

Except as set forth below, during the three months ended March 31, 2024 and 2023, the Company did not enter into any material transactions or series of transactions that would be considered material in which any officer, director or beneficial owner of 5% or more of any class of the Company’s capital stock, or any immediate family member of any of the preceding persons, had a direct or indirect material interest.

As of March 31, 2024 and December 31, 2023, the Company recorded an aggregated amount of $1,468,085 and $1,443,785 of short-term loans from a shareholder that the loans are unsecured, bear a monthly interest of 1.5% and repayable on demand. However, according to the agreements, the Company shall have the option to shorten or extend the life of those short-term loans if the need arises and the Company has agreed with the shareholder to extend the short-term loans on the due date. As of March 31, 2024 and December 31, 2023, the Company recorded an interest payable recorded in accounts payable, accrued expenses and other payables of $439,731 and $374,324, respectively. The interest expenses of the short-term loans for the three months March 31, 2024 and 2023 amounted to $65,406 and $48,338, respectively. .On January 18, 2022, the shareholder agreed to purchase the 1% Senior Unsecured Convertible Note Agreement from the Company and converted the short-term loan of $2,005,000 and interest payable $495,000 to convertible note. As of the date of this report, 1% Senior Unsecured Convertible Note Agreement of $2,500,000 and interest payable of $48,767 has not yet repaid.

The Company recorded rental expense of $8,271 and $1,923 for the three months ended March 31, 2024 and 2023 respectively to Habitat Investment Holdings Limited, of which the Company’s chief executive officer and convertible note holder are Habitat Investment Holdings Limited’s director and shareholder. On December 13,2023, the Company’s chief executive officer resigned as director of Habitat Investment Holdings Limited.

The summary of amount due to related parties included in the accounts payable, accrued expenses and other payables as the following:

	As of March 31, 2024		As of December 31, 2023
Salaries payables to Earnest Leung	$	1,758,757	$	1,720,296
Salaries payables to Shirley Cheng		98,526		88,846
Total	$	1,857,283	$	1,809,142

	As of March 31, 2024		As of December 31, 2023
Director’s fee payables to Earnest Leung	$	185,000	$	182,000
Director’s fee payables to Shirley Cheng		109,500		106,500
Director’s fee payables to Frederick Wong		35,257		32,257
Total	$	329,757	$	320,757

In addition to the transactions and balances detailed elsewhere in these financial statements, the Company had the following salary transactions with related parties.

	As of March 31, 2024		As of March 31, 2023
Salaries to Earnest Leung	$	38,462	$	38,462
Salaries to Shirley Cheng		15,385		17,949