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Accrued Expenses and Other Payables
 12 Months Ended
Dec. 31, 2024
Accrued Expenses and Other Payables [Abstract]  
ACCRUED EXPENSES AND OTHER PAYABLES

NOTE 11 — ACCRUED EXPENSES AND OTHER PAYABLES

 

Accrued expenses and other payables consisted of the following:

 

   December 31,   December 31, 
   2024   2023 
Salary and welfare payable  $285,195   $125,426 
VAT and other taxes payables   114,114    56,110 
Interest payable   21,398    44,597 
Deferred revenue   219,933    178,135 
Other accrued expenses   54,072    90,764 
Total  $694,712   $495,032 

 

Failed sale and leaseback

 

In 2021 and 2022, the Company engaged in three sale and leaseback transactions involving the 2-year leasing of four pieces of machinery. These agreements provided the Company with an option to buy the machinery at the lease’s conclusion for RMB100, a price significantly below market value. Upon reviewing the value of the assets at the end of the lease term and comparing it to the nominal purchase price, management determined that it was highly likely the Company would exercise this purchase option. As a result, these transactions do not meet the criteria for sale and leaseback transactions and are instead treated as financing arrangements by the Company.

As of December 31, 2024 and 2023, the current portion of these financing liabilities was $0 and $44,244, respectively, and was included under “Other accrued expenses”. There were no non-current portion of financing liabilities as of December 31, 2024 and 2023, respectively. All financing liabilities were fully paid off as of December 31, 2024.