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ADVANCE TO SUPPLIERS
 9 Months Ended
Sep. 30, 2024
Advance To Suppliers  
ADVANCE TO SUPPLIERS

NOTE 5 — ADVANCE TO SUPPLIERS

 

Advance to suppliers consist of the following:

 

   September 30, 2024   December 31, 2023 
Advance to suppliers  $1,096,048   $1,589,328 
Less: impairment loss allowance due to irrecoverable prepayment   772,780    - 
Advance to suppliers, net  $323,268   $1,589,328 

 

An impairment loss allowance of advances to suppliers of $29,883, $772,780, $nil and $nil impairment loss allowance of advances to suppliers was recorded during the three and nine months ended September 30, 2024 and 2023.

 

In June 2024, we reached a tentative agreement regarding general settlement terms with one supplier who would use approximately $312,500 to resolve the claim. Therefore, we wrote off the approximate $773,000 of prepayment to the supplier, reducing it from $1.1 million to $312,500 and reclassified the remaining balance of $312,500 to other current assets on condensed consolidated balance sheet during nine months ended September 30, 2024 (Note 6). The settlement agreement was finalized in August 2024, and relative payment was received in October 2024. During the three and nine months ended September 30, 2023, we had no impairment loss of advance to suppliers.