Other receivables, net

12 Months Ended

Dec. 31, 2021

Other Receivables Net

Other receivables, net

6. Other receivables, net

Other receivables consist of the following:

	December 31,			December 31,
	2021			2020
Deposit for business acquisitions	$	13,485,383		$	13,177,023
Deposit for set-up of research center		94,107			91,955
Others		3,062,247			1,093,573
Allowance for doubtful accounts		(13,665,255	)		(32,937	)
Total other receivables, net	$	2,976,482		$	14,329,614

Movements of allowance for doubtful accounts are as follows:

Beginning balance	$	32,937	$	42,676
Addition/(Write-off)		13,471,554		(12,691	)
Exchange rate effect		160,764		2,952
Ending balance	$	13,665,255	$	32,937

The Company acquired Fuzhou CSFC subject to customary conditions; it signed a three party agreement that involves Fuzhou CSFC and Quanzhou Yiang Trading Co., Ltd (“Yiang”), of which Yiang is an independent third party. As of December 31, 2021, the Company paid a refundable deposit of $6,546,537 to Yiang as a guarantee, if the financial performance of Fuzhou CSFC does not meet the agreed terms.

The Company signed a non-binding letter of intent to acquire a controlling equity interest of Fuzhou Tornado Network Technology Co., Ltd (“Tornado”), subject to customary conditions. Tornado is a developer and distributor of mobile games in China with an international user base across Mainland China, South Korea, the United Arab Emirates and North America. The acquisition price is expected to be based on the valuation of the acquired entities carried out by a qualified independent third party. The Company signed a three party agreement that involves Tornado and Quanzhou Chengtai Co., Ltd (“Chengtai”), of which Chengtai is an independent third party. As of December 31, 2021 the Company paid a refundable deposit of $6,938,846 to Chengtai as a guarantee. There is no assurance that the proposed transaction will be consummated, particularly if the financial performance of Tornado does not meet the agreed terms.

In addition, the Company is aiming to establish a research center with Beijing Zhongrun Minan Intelligence Technology Co., Ltd (“Zhongrun”). The project will develop a training platform and application for kindergarten. As of December 31, 2021, the Company paid $94,107 to Zhongrun as a refundable deposit for preliminary costs.