| Schedule of Prepayments, Deposits and Other Assets, Net |
Prepayments, deposits and
other assets, net consisted of the following:
| | |
As of December 31, | |
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Security deposits (1) | |
$ | 257,453 | | |
$ | 631,211 | |
| Advances to suppliers | |
| 1,651,758 | | |
| 1,659,609 | |
| Advances to employees | |
| 71,666 | | |
| 129,971 | |
| Prepaid expense | |
| 34,837 | | |
| 529,751 | |
| Prepaid VAT tax | |
| 393,404 | | |
| - | |
| Antique art pieces (2) | |
| 26,814,960 | | |
| 36,970,600 | |
| Others | |
| - | | |
| 19,286 | |
| | |
| 29,224,078 | | |
| 39,940,428 | |
| Less: Long term portion | |
| (27,019,546 | ) | |
| (37,689,697 | ) |
| Allowance for credit losses - advances to suppliers | |
| (1,530,602 | ) | |
| (548,248 | ) |
| Prepayments, deposits and other assets – current portion | |
$ | 673,930 | | |
$ | 1,702,483 | |
| (1) | Security deposits mainly represent contract fulfillment deposits required by customer for specific projects, rent deposits and etc. | | | | | (2) | On January 5, 2023, the Group received 20 antique art pieces to settle $59,651,975 (RMB411,157,212) from a debt extinguish agreement. On May 1, 2024, the Group settled 7 antique art pieces as a purchase consideration to acquire Hongchuangxin (details refer to Note 3). On August 1, 2025, the Group settled 6 antique art pieces as a purchase consideration to acquire Creation Intelligent (details refer to Note 3). The Group engaged an independent valuation firm to perform the valuation for the rest antique art pieces, the fair value was $26,814,960 as of December 31, 2025. |
|
| Schedule of Allowance for Credit Losses |
Movement of allowance for
credit losses is as follows:
| | |
As of December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| | |
| | |
| | |
| |
| Beginning balance | |
$ | 548,248 | | |
$ | 281,694 | | |
$ | 364,973 | |
| Provision for credit losses | |
| 2,892,983 | | |
| 9,065,372 | | |
| - | |
| Written-off | |
| (1,960,554 | ) | |
| (8,787,174 | ) | |
| (75,000 | ) |
| Foreign currency translation adjustments | |
| 49,925 | | |
| (11,644 | ) | |
| (8,279 | ) |
| Ending balance | |
$ | 1,530,602 | | |
$ | 548,248 | | |
$ | 281,694 | |
|