PREPAYMENT AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2022

PREPAYMENT AND OTHER CURRENT ASSETS [Abstract]

Prepayment and Other Current Assets

Prepayment and other current assets consisted of the following:

	December 31, 2022		December 31, 2021
Advance to suppliers	$	9,877,337	$	3,686,708
Deductible input value added tax		4,097,162		1,196,186
Loans to a third party (1)		1,044,181		-
Receivable from third parties		678,887		348,773
Refund for goods and services tax (“GST”) (2)		-		2,488,528
Others		440,763		269,412
Prepayment and other current assets	$	16,138,330	$	7,989,607

(1) Loans to a third party represented an interest-bearing loan to HW Electro Co., Ltd. with principal amount of $1,000,000 as of December 31, 2022, with the annual interest rate of 5.00%, which will be due on February 7, 2023. On January 31, 2023, the Company entered into a debt conversion agreement with HW Electro Co., Ltd., to convert the loan principal of $1,000,000 for 571,930 shares of HW Electro Co., Ltd.’s common stock totaling 3.59% of its equity interest. The interest of the loan was repaid in February 2023.

(2) GST is a value-added tax levied on goods and services sold for consumption in Australia. The balance as of December 31, 2021 was excess GST, which has been refunded in 2022.