{"url_path":"/sec/wygc/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Legal Proceedings**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-20","source_url":"https://www.sec.gov/Archives/edgar/data/723533/0001493152-26-024540-index.html","accession_number":"0001493152-26-024540","cik":"0000723533","ticker":"WYGC","issuer_name":"Wenyuan Group Corp.","edgar_url":"https://www.sec.gov/Archives/edgar/data/723533/0001493152-26-024540-index.html","primary_entity_key":"0000723533","primary_entity_name":"Wenyuan Group Corp."},"word_count":226,"has_tables":true,"body_markdown":"**Item\n1. Legal Proceedings**\n\n \n\nOn\nSeptember 28, 2022, the Company consummated an office suite purchase agreement with a third party (the “Seller”). Pursuant\nto the agreement, the Company issued 2,651,780 common stocks of the Company to purchase a 118-square-meter office suite located in Hangzhou\nCity, Zhejiang Province, China. Upon closing of the office suite purchase agreement as described above, Hangzhou Wenyuan agreed to act\nas a guarantor for the liability owing by the Seller to a creditor in the amount of $264,071 (RMB 1,900,000) associated with the office\nsuite. During the year ended December 31, 2024, the Company was sued by the creditor due to the default by the Seller. On October 22,\n2024, The Shangcheng District People’s Court of Hangzhou City, Zhejiang Province, China, ruled that Hangzhou Wenyuan is required\nto pay the creditor a total amount of approximately $264,071 (RMB 1,900,000). At the same time, the Seller is jointly liable for repayment.\nAfter the company’s management team evaluated the situation and considering the possible outcome of the lawsuit, the Company recognized\na reserve for litigation loss of $264,071 since the management believe it’s probable. During the year ended December 31, 2025,\nthe Company loss control over the office suite due to the enforced legal auction to settle this litigation liability. As of December\n31, 2025, the amount was no longer owed by the Company."}