| 6. |
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET |
Prepayments and other current assets, net consisted of the following:
| | |
As of December 31, | |
| | |
2024 | | |
2025 | |
| | |
| | |
| |
| Advances to suppliers | |
$ | 65,753 | | |
$ | 67,217 | |
| Value-added tax (“VAT”) receivables | |
| 2,301 | | |
| 5,268 | |
| Third-party payment platform receivable (i) | |
| 293 | | |
| 1,236 | |
| Receivables from third parties (ii) | |
| 1,000 | | |
| - | |
| Prepaid financing expense (iii) | |
| 835 | | |
| 229 | |
| Others | |
| 119 | | |
| 296 | |
| Prepaid expenses and other current assets | |
| 70,301 | | |
| 74,246 | |
| Allowance for credit losses | |
| (130 | ) | |
| (174 | ) |
| Prepaid expenses and other current assets, net | |
$ | 70,171 | | |
$ | 74,072 | |
| (i) | Third-party payment platform receivable represents customer payments collected through online payment platform that have not yet been remitted to the group’s bank accounts as of December 31, 2025. |
| (ii) | It represented advance to the employees for the group’s daily operation. |
| (iii) | It represented prepaid financing expense related to issuance of GEM Warrants (See Note 13). | The Group assessed the collectability of prepayments
and other current assets and did not record credit losses for the years ended December 31, 2023, 2024 and 2025, respectively.
The movement of allowance for credit losses for
the years ended December 31, 2023, 2024 and 2025 were as following:
| | |
For the years ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| Balance at the beginning of the year | |
$ | 177 | | |
$ | 172 | | |
$ | 130 | |
| Foreign currency translation | |
| (5 | ) | |
| (42 | ) | |
| 44 | |
| Balance at the end of the year | |
$ | 172 | | |
$ | 130 | | |
$ | 174 | |
|