| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and consolidation The accompanying consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”)
and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. The consolidated financial statements of the Company
include the financial statements of the Company and its 74.52% 25.48% 3,274,308 3,438,129 The consolidated financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as a going concern. Use of estimates In preparing the consolidated financial statements
in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the dates of consolidated financial statements, as well as the reported amounts of
revenues and expenses during the reporting year. Significant items subject to such estimates and assumptions include allowance for doubtful
accounts, advances to suppliers, valuation of inventories, useful lives of property, plant, and equipment and intangible assets. Cash, cash equivalent and restricted cash Cash and cash equivalent includes demand deposits
with financial institutions that are highly liquid in nature. Restricted cash includes any cash that is legally restricted as to withdrawal
or usage. Account receivable Accounts receivable are presented net of an
allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews
its accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of
individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors,
including the age of the balance, customer’s payment history, its current creditworthiness and current economic trends.
Accounts are written off after efforts at collection prove unsuccessful. As of December 31, 2023 and 2022, allowance for doubtful
accounts was nil 0 0 Advances to suppliers, net Advances to suppliers represent prepayments made
to ensure continuous high-quality supplies and favorable purchase prices for premium quality. These advances are settled upon suppliers
delivering raw materials to the Company when the transfer of ownership occurs. The Company review its advances to suppliers on a periodic
basis and makes general and specific allowances when there is doubt as to the ability of a supplier to provide supplies to the Company
or refund an advance. As of December 31, 2023 and 2022, advance to suppliers was $ 166,010
$107,863 Inventory Inventory is comprised primarily of raw materials,
work-in-progress and finished goods. The value of inventory is determined using the weighted average method. The Company periodically
estimates an inventory allowance for estimated unmarketable inventories when necessary. Inventory amounts are reported in net of allowances.
As of December 31, 2023 and 2022, inventories were $ 1,651,376 1,127,678 Property, plant and equipment, net Property, plant and equipment are stated at cost,
less accumulated depreciation. Major repair and improvements that significantly extend original useful lives or improve productivity are
capitalized and depreciated over the period benefited. Repair and maintenance costs are expensed as incurred. Depreciation is recorded
principally by the straight-line method over the estimated useful lives of our property, plant and equipment which generally have the
following ranges: buildings and improvements: 20 5 10 3 5 Intangible assets, net Intangible assets with finite lives are amortized
using the straight-line method over their estimated period of benefit. Evaluation of the recoverability of intangible assets is made to
take into account events or circumstances that warrant revise estimates of useful lives or that indicate that impairment exists. All of
the Company’s intangible assets are subject to amortization. No impairment of intangible assets has been identified as of the balance
sheet date. Intangible assets consist of land use rights,
patent and purchased software. Intangible assets are stated at cost less accumulated amortization. The land purchased for industrial use
has the right of use for 50 50 12 5 Revenue Recognition The Company follows Accounting Standards Codification
Topic 606, Revenue from Contracts with Customers (ASC 606). FASB ASC Topic 606 requires the use of a new five-step
model to recognize revenue from customer contracts. The five-step model requires the Company (i) identify the contract with the customer,
(ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to
the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective
performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenue is generated by selling fresh mushrooms
to authorized distributors and wholesalers mainly in Yangzi River Delta. Contracts were signed after the communication of the price and
quantities with customers. Our sales terms generally do not allow to sell without a deposit being made and do not allow for a right of
return. Usually, the deposit from the customer equals or more than the sales amount. Control of the mushrooms is transferred upon receipt
or loaded in the truck of carriers at our warehouse, as determined by the specific terms of the contract. Upon transfer of control to
the customer, which completes our performance obligation, revenue is recognized. Deferred income Deferred revenue consists primarily of government
grants. Government grants (sometimes referred to as subsidies, subventions, etc.) are as assistance by government in the form of transfers
of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the
entity. Government grants received relating to depreciable
assets are recorded as deferred income and recognized in over the life of the related assets. The Company recorded income when receiving
a grant which constitutes compensation for expenses or losses already incurred or for the purpose of giving immediate financial support
to the entity with no future related costs. Noncontrolling Interests The Company follows FASB ASC Topic 810, “Consolidation,” governing
the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the
loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCI (previously referred to as
minority interests) be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s
ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses,
and that losses of a partially-owned consolidated subsidiary be allocated to non-controlling interests even when such allocation might
result in a deficit balance. The net income (loss) attributed to NCI was separately
designated in the accompanying statements of operations and comprehensive income (loss). Losses attributable to NCI in a subsidiary may
exceed a non-controlling interest’s interests in the subsidiary’s equity. The excess attributable to NCIs is attributed to
those interests. NCIs shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. AUFP and its subsidiaries, AUM and AUMT were 25.48% 3,274,308 3,438,129 67,530 250,234 Concentration of credit risk The Company maintains cash in accounts with state-owned
banks within the PRC. Cash in state-owned banks less than $ 70,451 500,000 317,947 132,273 The Company signed long-term contracts to sell mushroom to two distributors
who accounted for 43% 21% Foreign currency translation and comprehensive income (loss) The accounts of the Company’s Chinese entities
are maintained in Chinese Yuan (“RMB”) and the accounts of the U.S. parent company are maintained in United States dollar
(“USD”). The accounts of the Chinese entities were translated into USD in accordance with FASB ASC Topic 830 “Foreign
Currency Matters.” All assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’
equity is translated at historical rates and the statements of operations and cash flows are translated at the weighted average exchange
rate for the period. The resulting translation adjustments are reported under other comprehensive income (loss) in accordance with FASB
ASC Topic 220, “Comprehensive Income.” Gains and losses resulting from foreign currency transactions are reflected in the
statements of operations. The Company follows FASB ASC Topic 220-10, “Comprehensive
Income (loss).” Comprehensive income (loss) comprises net income (loss) and all changes to the statements of changes in stockholders’
equity, except those due to investments by stockholders, changes in additional paid-in capital and distributions to stockholders. The exchange rates used to translate amounts in
RMB to USD for the purposes of preparing the CFS were as follows:
Schedule of foreign currency exchange rates
December 31, 2023 2022
Period-end date USD: RMB exchange rate 7.0971 6.8979
Average USD for the reporting period: RMB exchange rate 7.0750 6.7366 Income taxes The Company uses the asset and liability method
of accounting for income taxes in accordance with FASB ASC Topic 740, “Income Taxes.” Under this method, income tax expense
is recognized for the amount of: (i) tax payable or refundable for the current period and (ii) deferred tax consequences of temporary
differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets
also include the prior year’s net operating losses carried forward. The Company accounts for income for income taxes
in accordance with ASC 740, Income Taxes. ASC 740 requires an asset and liability approach for financial accounting and reporting for
income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in
future years. Under the asset and liability approach, deferred taxes are provided for the net effects of temporary difference between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation
allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able
to realize their benefits, or not be deductible in the future. Contingencies Certain conditions may exist as of the date the
consolidated financial statements (“CFS”) are issued, which may result in a loss to the Company but which will only be resolved
when one or more future events occur or fail to occur. In accordance with ASC 450, the Company’s management and legal counsel assess
such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies
related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s
legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount
of relief sought or expected to be sought. If the assessment of a contingency indicates that it is probable that a material loss has been
incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company’s CFS. If the assessment indicates that a potential material
loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability,
together with an estimate of the range of possible loss if determinable and material, would be disclosed. |
