2024 Q3 Form 10-K Financial Statement

#000121390024061514 Filed on July 16, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2023 Q4 2023
Revenue $794.2K $794.2K
YoY Change -8041.7% -10.77%
Cost Of Revenue $68.59K $68.59K
YoY Change -83.27% -85.09%
Gross Profit $725.6K $725.6K
YoY Change -272.76% 68.74%
Gross Profit Margin 91.36% 91.36%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $66.91K $381.9K
YoY Change 11.52% 73.6%
% of Gross Profit 9.22% 52.64%
Operating Expenses $11.25M $11.25M
YoY Change 923.04% 60.08%
Operating Profit -$371.3K -$10.53M -$10.53M
YoY Change -88.75% 592.62% 59.51%
Interest Expense $191.1K $191.1K
YoY Change -1055.55% -1055.55%
% of Operating Profit
Other Income/Expense, Net -$120.4K $51.55K $2.336M
YoY Change -161.93%
Pretax Income -$491.7K -$8.192M -$8.192M
YoY Change -84.16% 431.95% 28.2%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$491.7K -$9.286M -$9.286M
YoY Change -84.16% 502.98% 48.81%
Net Earnings / Revenue -1169.26% -1169.27%
Basic Earnings Per Share -$0.01 -$0.15
Diluted Earnings Per Share -$0.01 -$0.13 -$0.15
COMMON SHARES
Basic Shares Outstanding 52.81M shares 60.95M shares
Diluted Shares Outstanding 52.81M shares 60.95M shares

Balance Sheet

Concept 2024 Q3 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.428M $5.428M
YoY Change 4423.19% 4423.19%
Cash & Equivalents $6.975K $5.428M $5.428M
Short-Term Investments
Other Short-Term Assets $0.00 $116.3K $7.903M
YoY Change -100.0% -1.71% 2095.29%
Inventory
Prepaid Expenses $73.92K
Receivables $316.8K $324.4K $324.4K
Other Receivables $3.962M $3.962M
Total Short-Term Assets $17.16M $17.62M $17.62M
YoY Change -0.2% 492.2% 493.17%
LONG-TERM ASSETS
Property, Plant & Equipment $331.3K $629.2K $2.548M
YoY Change -58.74% 62.07% -1.99%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $240.9K $379.7K $379.7K
YoY Change -49.31% -24.43% -24.05%
Total Long-Term Assets $2.260M $2.928M $2.928M
YoY Change -30.25% -5.66% -5.86%
TOTAL ASSETS
Total Short-Term Assets $17.16M $17.62M $17.62M
Total Long-Term Assets $2.260M $2.928M $2.928M
Total Assets $19.42M $20.54M $20.54M
YoY Change -4.96% 238.01% 237.91%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses $107.8K $83.94K $83.94K
YoY Change 326.85% 10.96% 4.93%
Deferred Revenue
YoY Change
Short-Term Debt $15.44K $30.61K $1.590M
YoY Change -96.8% -97.08% 51.42%
Long-Term Debt Due $3.490M $3.490M
YoY Change
Total Short-Term Liabilities $8.800M $7.476M $7.476M
YoY Change 33.5% 93.29% 93.19%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change -100.0% -100.0%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00
YoY Change -100.0% -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.800M $7.476M $7.476M
Total Long-Term Liabilities $0.00 $0.00
Total Liabilities $8.800M $7.476M $7.476M
YoY Change 19.45% 0.78% 4.27%
SHAREHOLDERS EQUITY
Retained Earnings -$40.99M -$38.89M
YoY Change 5.82% 31.36%
Common Stock $51.47M $51.47M
YoY Change -0.5% 113223.83%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $13.07M $13.07M
YoY Change
Total Liabilities & Shareholders Equity $19.42M $20.54M $20.54M
YoY Change -4.96% 238.01% 237.91%

Cashflow Statement

Concept 2024 Q3 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$491.7K -$9.286M -$9.286M
YoY Change -84.16% 502.98% 48.81%
Depreciation, Depletion And Amortization $66.91K $381.9K
YoY Change 11.52% 73.6%
Cash From Operating Activities -$4.249M -$15.69M
YoY Change 524.89% 282.78%
INVESTING ACTIVITIES
Capital Expenditures -$7.800K $714.4K
YoY Change -178.0% 3472.05%
Acquisitions
YoY Change
Other Investing Activities -$2.722M -$3.281M
YoY Change 2374.85% -344.87%
Cash From Investing Activities -$2.715M -$3.996M
YoY Change 1988.1% -402.7%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $10.00M
YoY Change 418.13%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 560.2K 24.85M
YoY Change -28.18% 893.87%
NET CHANGE
Cash From Operating Activities -4.249M -15.69M
Cash From Investing Activities -2.715M -3.996M
Cash From Financing Activities 560.2K 24.85M
Net Change In Cash -6.404M 5.157M
YoY Change 21245.23% -1941.74%
FREE CASH FLOW
Cash From Operating Activities -$4.249M -$15.69M
Capital Expenditures -$7.800K $714.4K
Free Cash Flow -$4.241M -$16.41M
YoY Change 514.7% 298.27%

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<p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 — NATURE OF OPERATIONS AND BASIS OF PRESENTATION</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Business</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hanryu Holdings, Inc., a Delaware corporation (“<i>Hanryu Holdings</i>”), together with its wholly owned subsidiaries Hanryu Bank Co., Ltd (“<i>HBC</i>”), FNS Co., Ltd. (“<i>FNS</i>”), , and Marine Island Co., Ltd (“<i>Marine Island</i>”), all incorporated under the laws of the Republic of Korea (“<i>Korea</i>” or “<i>ROK</i>”) (collectively, the “<i>Company</i>”, “<i>we</i>”, or “<i>us</i>”), aims to be the leader in the global Korean entertainment market, also known as “<i>Hanryu</i>” or “<i>K-Culture</i>”, through its engaging social-media platform, FANTOO. The FANTOO platform is an all-inclusive global playground for fans, where they can consume, create, and get rewarded for all things related to their interests, and interact with other like-minded fans.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Corporate History</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since the inception of HBC in 2018, we have accomplished a number of key objectives, as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="padding-bottom: 0pt; border-top: Black 1.5pt solid; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 32%; padding-right: 3pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Date</b></span></td> <td style="border-top: Black 1.5pt solid; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 1%; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; border-top: Black 1.5pt solid; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 67%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Event/Milestone</b></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">October 18, 2018</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC is incorporated under the laws of the ROK with the idea of creating an all-in-one product to capture the growing global momentum and popularity of K-Culture.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">October 29, 2020</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC establishes FNS,and begins the initial stages of designing and implementing a platform that can create a fandom networking system.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March 11, 2021</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC establishes Hanryu Times. Hanryu Times begins operations as HBC’s media outlet, reporting on and providing up-to-date K-Culture news within the FANTOO platform, across a number of languages, including English, Japanese, Chinese (simplified/traditional), Indonesian, Spanish, Russian, and Portuguese.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March 31, 2021</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0pt"><p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC consummates an agreement and plan of merger (the “<i>Merger Agreement</i>”) with RnDeep, Co. Ltd, a Korean corporation (“<i>RnDeep</i>”), pursuant to which RnDeep merged with and into HBC, with HBC continuing as the surviving corporation (the “<i>RnDeep Acquisition</i>”). As consideration for the RnDeep Acquisition, HBC ratably issued a total 4,150,000 HBC common shares, par value $0.45 per share (“<i>Common Shares</i>”), to the former shareholders of RnDeep.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As a result of the RnDeep Acquisition, HBC acquired the underlying technologies that the Company plans on utilizing in the future development of new functions and integrations within the FANTOO platform. Once the FANTOO platform is ready to integrate the technology acquired, this technology will support new functions and integrations including, without limitation, the Company’s enterprise resource planning solution, and its artificial intelligence (“<i>AI</i>”), which the Company plans on using to power many of FANTOO’s upcoming features such as speech synthesis, curated content delivery, deepfake detection and blocking, and nudity detection and blocking.</span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 17, 2021</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The FANTOO platform is launched and made available to the public.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 30, 2021</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC enters into an agreement to acquire all the issued and outstanding common shares of Marine Island (the “<i>Marine Island Acquisition</i>”), which owns the right to use and occupy 19,200 square-feet of office space within the iconic Seoul Marina, located at 160 Yeouiseo-ro, Yeungdeungpo-gu, Seoul, Korea (the “<i>Seoul Marina</i>”) from Sewang Co., Ltd. (“<i>Sewang</i>”), for the purchase price of 3,500,000,000 Korean Won (“<i>KRW</i>”), along with the assumption of all Marine Island’s liabilities.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: center"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-top: Black 1.5pt solid; padding-left: 0pt; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 32%; padding-bottom: 0pt; text-indent: 0pt"><p style="text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt"></p> <p style="text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Date</b></span></p></td> <td style="border-top: Black 1.5pt solid; padding-left: 0pt; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 1%; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; padding-left: 0pt; border-top: Black 1.5pt solid; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 67%; text-align: center; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Event/Milestone</b></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">August 30, 2021</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; padding-left: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC establishes FANTOO Entertainment. FANTOO Entertainment provides a variety of content to the Company’s FANTOO platform, which contributes to the spread of the Korean Wave by promoting new entertainers and artists.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; padding-left: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">October 3, 2021</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; padding-left: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC consummates the Marine Island Acquisition, making it the owner of 100% of the issued and outstanding common shares of Marine Island.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; padding-left: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">October 3, 2021</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; padding-bottom: 0pt; text-indent: 0pt"><p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC consummates a strategic acquisition of 50.8% of the outstanding common shares of K-Commerce. In consideration for the shares of K-Commerce, HBC forgave a short-term loan of $270,530 (KRW 309,600,000) owed to HBC by K-Commerce.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC’s investment into K-Commerce was a strategic acquisition in order to integrate K-Commerce’s retail platform, “SelloveLive” into the FANTOO ecosystem as the FANTOO Fanshop. When launched as the FANTOO Fanshop, K-Commerce’s platform will offer combined services of shopping and live broadcasting, allowing users to easily live-stream travel and share local attractions, local festivals, cultures, and news from around the world.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior to HBC’s acquisition of its shares in K-Commerce, K-Commerce was 100% owned by Changhyuk Kang, the Company’s Chief Executive Officer and Donghoon Park, the Company’s Chief Marketing Officer.</span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">October 20, 2021</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; padding-left: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hanryu Holdings is incorporated in the State of Delaware.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="padding-bottom: 0pt; padding-left: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">February 25, 2022 through May 10, 2022</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; padding-bottom: 0pt; text-indent: 0pt"><p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hanryu Holdings, HBC, and the shareholders of HBC (the “<i>HBC Shareholders</i>”) enter into a share exchange agreement (the “<i>Share Exchange Agreement</i>”), pursuant to which the HBC Shareholders agreed to assign, transfer, and deliver, free and clear of all liens, 100% of the issued and outstanding Common Shares, representing 100% of the voting securities in HBC, to the Company in exchange for the Company issuing 42,565,786 restricted shares of the Company’s common stock, par value $0.001 per share (“<i>Common Stock</i>”) to the HBC Shareholders (the “<i>Share Exchange</i>”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Concurrently with entering into the Share Exchange Agreement, the Company, HBC, and the holders (the “<i>HBC Warrantholders</i>”) of all outstanding warrants to purchase Common Shares (“<i>HBC Warrants</i>”) enter into a warrant exchange agreement, pursuant to which the HBC Warrantholders agreed to assign, transfer, and delivery, free and clear of any liens, 100% of the outstanding HBC Warrants to the Company in exchange for the Company issuing to the HBC Warrantholders 10,046,666 warrants to purchase restricted shares of Common Stock (the “<i>Warrant Exchange</i>”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Warrants and Common Shares of HBC transferred to the Company in the Share Exchange and the Warrant Exchange constituted 100% of the outstanding equity securities of HBC.</span></p></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="padding-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; padding-bottom: 0pt; text-indent: 0pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 16, 2022<br/> <br/> <br/> <br/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 22, 2022</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">August 1, 2023</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December 28, 2023</span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; white-space: nowrap; padding-bottom: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt; padding-bottom: 0pt; text-indent: 0pt"><p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hanryu Holdings, HBC, the HBC Shareholders, and the HBC Warrantholders consummate the Share Exchange and Warrant Exchange concurrently, pursuant to which HBC became a wholly owned subsidiary of the Company, and the HBC Stockholders and HBC Warrantholders, collectively, acquired a controlling interest in the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company divests itself of all Kingdom Coin (“<i>KDC</i>”) holdings and terminates all crypto-currency-related activity, including, without limitation, the operation of the MainNet (FandomChain) and the Kingdom Wallet, pursuant to a Business Transfer Agreement (the “<i>Divestiture Agreement</i>”) between HBC and an unaffiliated and unrelated third party, Kingdom Coin Holdings, a Cayman Islands Foundation Company (the “<i>KDC Foundation</i>”) (the “<i>KDC Divestiture</i>”), to substantially reduce its involvement with blockchain technologies. Pursuant to the Divestiture Agreement, as of June 22, 2022, the Company no longer owns any KDC, and no longer conducts or controls the operations, issuances, or sales of KDC. In connection with the KDC Divestiture, the Company revised its procedures regarding FP and no longer allows, nor has the technology to allow, for the transfer of FP outside of the FANTOO platform or the exchange of FP and KDC</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The shares of the Company are listed at NASDAQ exchange market.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">HBC sold owned whole shares of Hanryu Times, Fantoo Entertainment, and K-Commerce, so the business from the three companies became the discontinued operations.</span></p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Risks and Uncertainties</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is subject to a number of risks similar to other companies in its industries, including rapid technological change and transitions in Hanryu trends. The extent of the impact of the COVID-19 pandemic on the Company’s business continues to be highly uncertain and difficult to predict, as the responses that the Company, other businesses and governments are taking continue to evolve. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a lasting national and/or global economic recession. Policymakers around the globe have responded with fiscal policy actions to support the entertainment industry and economy as a whole.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To date, the Company has experienced significant changes in the business as a result of the COVID-19 pandemic. The impact has delayed the Company’s ability to generate revenue as result of the diversification of potential customer budgets towards the COVID-19 pandemic. The extent to which the COVID-19 pandemic may in the future materially impact the Company’s financial condition, liquidity or results of operations is uncertain.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Going Concern</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has experienced recurring losses from operations and has a stockholders’ equity(deficit) and working capital of </span><span style="font-size: 8pt">  </span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$13,068,465 and $10,140,579 respectively, as of December 31, 2023 and </span><span style="font-size: 8pt">  </span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$(1,340,515), </span><span style="font-size: 8pt">  </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $(757,981) as of December 31, 2022. Also, the Company has operating losses of $10,527,845 and $5,421,525 for the years ended December 31, 2023 and December 31, 2022, respectively. These uncertainties raise substantial doubt about the Company’s ability to continue as a going concern for twelve (12) months after the issuance date of these financial statements. The accompanying financial statements have been prepared under the assumption that we will continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of us to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; padding: 0pt; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our future operations are dependent upon multiple factors, including (i) the success of our FANTOO platform business; (ii) competition from existing and future services from other companies; and (iii) securing new sources of capital to fund operations and develop markets. We will maintain an ongoing effort to improve and innovate FANTOO platform business to generate funds for our operations. For instance, we recently launched FANTOO House which is located in Seoul, and at FANTOO platform, we will launch (i) Epic branded ecommerce platform that we will expect it as a major source of new income, and (ii) dedicated video production operations that will create short episodic content that focuses on K-POP fandom. In addition, we maintain an ongoing effort to raise funds for our operations from current investors and new sources of capital through the issuance of additional common stock and/or short-term notes. However, there can be no assurance as to the outcome of these factors or that future funding efforts will generate sufficient capital to maintain our operations.</p>
CY2021Q1 us-gaap Excess Stock Shares Issued
ExcessStockSharesIssued
4150000 shares
CY2021Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.45
CY2021Q2 us-gaap Area Of Land
AreaOfLand
19200 sqft
CY2021Q2 us-gaap Supplemental Deferred Purchase Price
SupplementalDeferredPurchasePrice
3500000000 krw
CY2021Q4 hryu Common Shares Issuedand Outstanding
CommonSharesIssuedandOutstanding
1 pure
CY2021Q4 hryu Outstanding Share Percentage
OutstandingSharePercentage
0.508 pure
CY2021Q4 us-gaap Other Short Term Borrowings
OtherShortTermBorrowings
270530 usd
CY2021Q4 us-gaap Other Short Term Borrowings
OtherShortTermBorrowings
309600000 krw
CY2022Q2 hryu Common Shares Issuedand Outstanding
CommonSharesIssuedandOutstanding
1 pure
CY2022Q2 hryu Voting Right Percentage
VotingRightPercentage
1 pure
CY2022Q2 us-gaap Weighted Average Number Of Shares Restricted Stock
WeightedAverageNumberOfSharesRestrictedStock
42565786 shares
CY2022Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2022Q2 hryu Warrants And Rights Outstanding Percentage
WarrantsAndRightsOutstandingPercentage
1 pure
CY2022Q2 hryu Warrant To Purchase Restricted Shares
WarrantToPurchaseRestrictedShares
10046666 shares
CY2023Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
13068465 usd
CY2023Q4 hryu Working Capital
WorkingCapital
-10140579 usd
CY2022Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-1340515 usd
CY2022Q4 hryu Working Capital
WorkingCapital
757981 usd
CY2023 us-gaap Operating Income Loss
OperatingIncomeLoss
-10527845 usd
CY2022 us-gaap Operating Income Loss
OperatingIncomeLoss
-5421525 usd
CY2023 us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Use of Estimates</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of the Company’s consolidated financial statements and related disclosures in conformity with U.S. Generally Accepted Accounting Principles (“<i>US GAAP</i>”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions.</span></p>
CY2023Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 usd
CY2023 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Revenue Recognition</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company anticipates generating revenues from (i) FANTOO platform through advertising, direct sales, and user to user commissions, and (ii) other businesses. Revenue billed or collected in advance will be recorded as deferred revenue until the event occurs or until applicable performance obligations are satisfied.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue is recognized when the Company transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. In this regard, revenue is recognized when: (i) the parties to the contract have approved the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform their respective obligations; (ii) the entity can identify each party’s rights regarding the goods or services to be transferred; (iii) the entity can identify the payment terms for the goods or services to be transferred; (iv) the contract has commercial substance (that is, the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the contract); and (v) it is probable that the entity will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transaction prices are based on the amount of consideration to which we expect to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties, if any. We consider the explicit terms of the revenue contract, which are typically written and executed by the parties, our customary business practices, the nature, timing, and the amount of consideration promised by a customer in connection with determining the transaction price for our revenue arrangements. Refunds and sales returns historically have not been material.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the years ended December 31, 2023 and December 31, 2022, the Company recognized product sales revenue amounting to $71,242 and $0. Revenue is derived at the point in time when merchandise is sold and shipped or delivered to customers. Merchandise sales are fulfilled with inventory sourced from our owned inventory. Although the Company does not currently have any inventory as of the balance sheet date, the Company, from time to time, may hold products in inventory for an abbreviated amount of time before shipping such inventory and recognizing the corresponding revenue.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue is recognized when control of the product passes to the customer, typically at the date of delivery of the merchandise to the customer, or the date a service is provided and is recognized in an amount that reflects the expected consideration to be received in exchange for such goods or services. As such, customer orders are recorded as unearned revenue prior to delivery of products or services ordered. If the Company ships high volumes of packages through multiple carriers, the Company will use estimates to determine which shipments are to be delivered and, therefore, recognized as revenue at the end of the period. Delivery date estimates are based on average shipping transit times, which are calculated using the following factors: (i) the type of shipping carrier (as carriers have different in-transit times); (ii) the fulfilment source; (iii) the delivery destination; and (iv) actual transit time experience, which shows that delivery date is typically one to eight business days from the date of shipment. The Company reviews and updates our estimates on a quarterly basis based on our actual transit time experience. However, actual shipping times may differ from our estimates.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Generally, the Company requires authorization from credit cards or other payment vendors whose services the Company offers to customers or verification of receipt of payment, before the Company ships products to purchasers. The Company generally receives payments from our customers before our payments to our suppliers are due. The Company does not recognize assets associated with costs to obtain or fulfill a contract with a customer.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shipping and handling is considered a fulfillment activity, as it takes place prior to the customer obtaining control of the merchandise, and fees charged to customers are included in net revenue upon completion of our performance obligations. The Company presents revenue net of sales taxes, discounts, and expected refunds.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Merchandise sales contracts include terms that could cause variability in the transaction price for items such as discounts, credits, or sales returns. Accordingly, the transaction price for product sales includes estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. At the time of sale, the Company estimates a sales return liability for the variable consideration based on historical experience, which is recorded within “Accrued Liabilities” in the consolidated balance sheet. The Company records an allowance for returns based on current period revenues and historical returns experience. The Company analyzes actual historical returns, current economic trends and changes in order volume, and acceptance of our products when evaluating the adequacy of the sales returns allowance in any accounting period.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company evaluates the criteria outlined in the Financial Accounting Standards Board (“<i>FASB</i>”) Accounting Standards Codification (“<i>ASC</i>”) 606-10-55, <i>Principal versus Agent Considerations</i>, in determining whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. When the Company is the principal in a transaction and controls the specific good or service before it is transferred to the customer, revenue is recorded gross; otherwise, revenue is recorded on a net basis. Currently, the Company records all advertising revenue as a net basis, and other revenues are recorded as a gross basis, and the revenues as a gross basis for the years ended December 31, 2023 and December 31, 2022 are $1,014,266 and $889,045. Through contractual terms with our partners, we have the ability to control the promised goods or services and as a result record the majority of the revenue on a gross basis.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The customers and sales amount with more than 10% of total revenue as a gross basis for the years ended December 31, 2023 and December 31, 2022 are as follows, and they are the advertising revenue.</span></p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Fiscal Year</b></span></td> <td> </td> <td style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Customer</b></span></td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Sales Amount</b></span></td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>%</b></span></td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: left; width: 64%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2023</b></span></td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A</b></span></td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>$</b></span></td> <td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>191,511</b></span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>19</b></span></td> <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>%</b></span></td></tr> <tr style="vertical-align: bottom; "> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2023</b></span></td> <td> </td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B</b></span></td> <td> </td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>$</b></span></td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>696,403</b></span></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>69</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>%</b></span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2022</b></span></td> <td> </td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C</b></span></td> <td> </td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>$</b></span></td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>774,024</b></span></td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>87</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>%</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"> </p>
CY2023 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
71242 usd
CY2022 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
0 usd
CY2023Q4 us-gaap Deferred Revenue
DeferredRevenue
1014266 usd
CY2022Q4 us-gaap Deferred Revenue
DeferredRevenue
889045 usd
CY2023 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Concentrations of Credit Risk</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; padding: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash and cash equivalents are financial instruments that potentially subject the Company to concentrations of credit risk. The Company may maintain deposits in financial institutions in excess of government insured limits. The Company believes that it is not exposed to significant credit risk as its deposits are held at financial institutions that management believes to be of high credit quality and the Company has not experienced any losses on these deposits. The Company is also potentially subject to concentrations of credit risk in its accounts receivable and loans. Credit risk with respect to receivables is limited due to the number of companies comprising the Company’s customer base. Credit risk with respect to loans is limited since they are made principally related to the collaborative activities between the Company and loan holders. Since the Company is directly affected by the financial condition of its customers and loan holders, management carefully watch if any significant credit risks exist, and they will make actions to remove or mitigate such risks if there are any. For the years ended December 31, 2023 and December 31, 2022, over 10% of the revenues are from two customers and one customer, but there are no receivable balances from them. Also, over 10% of the account receivable for the year ended December 31, 2023 is from Hanryu Times, which was the affiliated company by December 28, 2023, and Hanryu Times and the company already agreed to the payment plan that Hanryu Times would pay back all by the end of December 31, 2024. Therefore, as of December 31, 2023 and December 31, 2022, the Company believes that the credit risk for the account receivables is manageable and controllable. Generally, the Company does not require collateral or other securities to support its accounts receivable and loans.</span></p>
CY2023Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
30613 usd
CY2022Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
0 usd
CY2023Q4 us-gaap Notes And Loans Receivable Net Current
NotesAndLoansReceivableNetCurrent
3789900 usd
CY2022Q4 us-gaap Notes And Loans Receivable Net Current
NotesAndLoansReceivableNetCurrent
513356 usd
CY2023Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
7903035 usd
CY2022Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
360518 usd
CY2023Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1282526 usd
CY2022Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
570243 usd
CY2023Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
653341 usd
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
317153 usd
CY2023Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
629185 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
253090 usd
CY2023 us-gaap Depreciation
Depreciation
381917 usd
CY2022 us-gaap Depreciation
Depreciation
215111 usd
CY2022Q4 us-gaap Other Investments
OtherInvestments
1695299 usd
CY2022 hryu Investment Company Net Asset Value Per Share Period Increase
InvestmentCompanyNetAssetValuePerSharePeriodIncrease
635000 usd
CY2022 us-gaap Investment Company Net Asset Value Per Share Period Increase Decrease
InvestmentCompanyNetAssetValuePerSharePeriodIncreaseDecrease
-2183822
CY2022 us-gaap Gain Loss On Sale Of Investments
GainLossOnSaleOfInvestments
-6794 usd
CY2022 hryu Translation Adjustmentof Investments
TranslationAdjustmentofInvestments
-139683 usd
CY2021Q4 us-gaap Asset Acquisition Consideration Transferred
AssetAcquisitionConsiderationTransferred
1687052 usd
CY2021Q4 us-gaap Class Of Warrant Or Right Reason For Issuing To Nonemployees
ClassOfWarrantOrRightReasonForIssuingToNonemployees
(i) warrants to purchase 666,666 Common Shares of HBC, valued at $873,805; and (ii) distribution of 100,000,000 KDC
CY2023Q4 us-gaap Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Debt Securities
FairValueInvestmentsEntitiesThatCalculateNetAssetValuePerSharePercentDebtSecurities
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CY2022Q4 us-gaap Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Debt Securities
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