Prepayments, Deposits and Other Assets, Net

12 Months Ended

Dec. 31, 2023

Prepayments, Deposits and Other Assets, Net [Abstract]

Prepayments, deposits and other assets, net

Note 5 — Prepayments, deposits and other assets, net

Prepayments, deposits and other assets, net consisted of the following:

	As of December 31,
	2023			2022
Security deposits (1)	$	248,146		$	216,446
Advances to suppliers		2,032,099			564,810
Advances to employees		46,293			141,249
Prepaid expense		1,099,950			976,788
Prepayment for potential acquisition (2)		15,906,186			-
Antique art pieces (3)		59,651,975			-
Others		6,511			139,976
		78,991,160			2,039,269
Less: Long term portion		(76,274,752	)		(226,544	)
Allowance for credit losses		(281,694	)		(364,973	)
Prepayments, deposits and other assets – current portion	$	2,434,714		$	1,447,752

(1)	Security deposits mainly represent contract fulfillment deposits required by customer for specific projects, rent deposits and etc.
(2)	On March 24, 2023, the Company entered into an equity transfer agreement with a shareholder of DTI Group Limited (“DTI”), pursuant to which the Company agreed to prepay 698,301 shares (equivalent to $15,906,186) to purchase 32% equity of DTI.
(3)	Details refer to Note 6

Movement of allowance for credit losses is as follows:

	As of December 31,
	2023			2022			2021
Beginning balance	$	364,973		$	313,844		$	306,513
Provision for credit losses		-			75,000			88,846
Written-off		(75,000	)		-			(88,846	)
Foreign currency translation adjustments		(8,279	)		(23,871	)		7,331
Ending balance	$	281,694		$	364,973		$	313,844