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Accounts Receivable, Net
 12 Months Ended
Dec. 31, 2024
Accounts Receivable, Net [Abstract]  
ACCOUNTS RECEIVABLE, NET

NOTE 3 — ACCOUNTS RECEIVABLE, NET

 

Accounts receivable consisted of the following:

 

   December 31,   December 31, 
   2024   2023 
Accounts receivable, gross  $5,898,773   $6,066,309 
Less: allowance for current expected credit loss   (89,399)   (52,773)
Accounts receivable, net  $5,809,374   $6,013,536 

 

The following CECL rates are used to determine the allowance for current expected credit losses.

 

Age of accounts receivable  Current   31-60
days		   61-90
days		   91-120
days		   121-180
days		   181-270
days		   271-360
days		   Over 360
days		 
Historical loss rate   0.000%   0.000%   0.000%   0.000%   0.000%   0.000%   0.000%   0.000%
Adjustment   0.258%   0.517%   0.775%   1.033%   1.550%   2.325%   3.100%   3.100%
CECL rate   0.258%   0.517%   0.775%   1.033%   1.550%   2.325%   3.100%   3.100%

 

As of December 31, 2024, accounts receivable totaling $2,435,520 (RMB 17,777,592) were pledged as collateral to secure a short-term loan of $1,369,994 (RMB 10,000,000) from China Minsheng Bank (see Note 9)

 

As of December 31, 2023, accounts receivable of approximately $1.1 million (RMB 7.8 million) were pledged as collateral to secure a working capital loan of $760,574 from China Industrial Bank (see Note 9).