LONG-TERM INVESTMENT, NET

9 Months Ended

Sep. 30, 2024

LONG-TERM INVESTMENT, NET [Abstract]

LONG-TERM INVESTMENT, NET

NOTE 7 - LONG-TERM INVESTMENT, NET

Equity method investments, net

The Company had the following equity method investments:

	September 30, 2024 (Unaudited)		December 31, 2023
Hangzhou Entropy Yu Equity Investment Partnership (Limited Partnership) (“Entropy Yu”) (1)	$	2,152,000	$	2,127,062
Hangzhou Hezhe Energy Technology Co., Ltd. (“Hangzhou Hezhe”) (2)		-		407,778
Able 2rent GmbH (DEU) (3)		92,174		89,432
Total	$	2,244,174	$	2,624,272

(1) On September 25, 2022, the Company invested RMB15,400,000 (approximately $2,194,482) in Entropy Yu to acquire 99.355% of the partnership entity’s equity interest. The Company accounts for the investment under the equity method because the Company controls 50% of voting interests in partnership matters and material matters must be agreed upon by all partners. The Company has the ability to exercise significant influence over Entropy Yu.

(2) On June 23, 2021, the Company invested RMB2,000,000 (approximately $284,998) in Hangzhou Hezhe to acquire 20% of its equity interest. On May 8, 2024, the Company entered an agreement to acquire 60% of Hangzhou Hezhe’s equity interest, with the consideration of RMB3,704,307 (approximately $527,860). As of September 30, 2024, Hangzhou Hezhe become a subsidiary of the Company.

(3) On March 22, 2022, CAE invested EUR100,000 (approximately $111,450) in Able 2rent GmbH (DEU) to acquire 50% of its equity interest. The Company accounts for the investment under the equity method.

Equity investment without readily determinable fair value

The Company had the following equity investment without readily determinable fair value:

	September 30, 2024 (Unaudited)		December 31, 2023
HW Electro Co., Ltd. (1)	$	1,000,000	$	1,000,000
Robostreet Inc. (2)		200,000		450,000
Total	$	1,200,000	$	1,450,000

(1) On January 31, 2023, the Company entered into a debt convention agreement with HW Electro Co., Ltd., to convert the loan principal of $1,000,000 into HW Electro Co., Ltd.’s shares. The Company held 1,143,860 shares of HW Electro Co., Ltd.’s for a total of 3.00% of its equity interest.

(2) On July 12, 2023, the Company entered into a share sale and purchase agreement with Robostreet Inc., to acquire 176 shares of Robostreet Inc.’s for a total of 14.97% of its equity interest with a consideration of cash of $200,000 and three models of programmable smart chassis for an aggregate value of $250,000. On August 5, 2024, the two parties entered into an amendment to share sale and purchase agreement, by revising the total purchase consideration to a cash payment of $200,000 only, which is 78 shares for a total of 7.24% of its equity interest.

Debt Security Investments

On July 24, 2023 the Company purchased a $1,000,000 convertible note (the “Convertible Note”) from third party Acton, Inc. (the “Issuer”). In July and August, 2023, the Company has paid total amount of $600,000 to the Issuer. The balance of debt investments was $634,212 and $611,712, respectively, as of September 30, 2024 and December 31, 2023. At any time on or after the maturity date, the convertible loan will convert into shares equal to the quotient obtained by dividing the outstanding principal balance and unpaid accrued interest of the convertible loan as of the date of such conversion by the applicable conversion price.