ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2024

Dec. 31, 2023

Payables and Accruals [Abstract]

SCHEDULE OF ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consisted of the following:

	As of
	December 31, 2023		June 30, 2024
			(Unaudited)
Equipment purchase payable	$	987,811	$	1,005,770
Long-term payments of leaseback, current (1)		307,694		636,733
Advance from customer		304,488		303,899
Interest payable		161,043		157,289
Payroll and welfare payable		173,925		128,540
Deposit		-		44,366
VAT payable		27,545		7,190
Long-term payable, current portion		7,445		-
Others		69,378		27,590
Total	$	2,039,329	$	2,311,377

(1) During the six months ended June 30, 2023 and 2024, the Company continuously entered into certain sale-and-leaseback arrangements for the purpose of obtaining financing. As a result of the available repurchase option, for accounting purposes these sale-and-leaseback arrangements are accounted for as a financing rather than a sale. Loans payables resulted from such financing were pledged by the Company’s machinery and equipment, amounted to US$485,070 and US$866,826 as of December 31, 2023 and June 30, 2024, respectively. The loans payables were installment maturity and due in July 2026 with annual interest rate ranging from 9.4% to 10.2%. The interest expenses were US$23,738 and US$17,688 for the six months ended June 30, 2023 and 2024, respectively.

Accrued expenses and other current liabilities consisted of the following:

	As of December 31,
	2022		2023
Equipment purchase payable	$	1,027,996	$	987,811
Long-term payments of leaseback, current (1)		366,753		307,694
Advance from customer		189,192		304,488
Payroll and welfare payable		175,626		173,925
Interest payable		165,821		161,043
Long-term payable, current portion (2)		15,746		7,445
VAT payable		1,727		27,545
Others		79,070		69,378
Total	$	2,021,931	$	2,039,329

(1)

During the years ended December 31, 2022 and 2023, the Company continuously entered into certain sale-and-leaseback arrangements for the purpose of obtaining financing. As a result of the available repurchase option, for accounting purposes these sale-and-leaseback arrangements are accounted for as a financing rather than a sale. Loans payables resulted from such financing were pledged by the Company’s machinery and equipment, amounted to US$478,088 and US$485,070 as of December 31, 2022 and 2023, respectively. The loans payables are repayable in installments from February 2022 to November 2025 with an annual interest rate of 10%. The interest expenses were US$52,524 and US$23,562 for the years ended December 31, 2022 and 2023, respectively.

(2)

In June 2022, the Company obtained a vehicle mortgage loan from a third party at an annual interest rate of 7.5%, with the payables are repayable in installments from June 2022 to June 2024. The assets value of pledged vehicle is US$ 22,318, and the interest expenses were US$1,006 and US$702 for the year ended December 31, 2022 and 2023.