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Trade and Bills Receivable, net

9 Months Ended

Sep. 30, 2022

Trade And Bills Receivable Net Abstract

3. Trade and Bills Receivable, net

Trade and bills receivable as of December 31, 2021 and September 30, 2022 consisted of the following:

	December 31,			September 30,
	2021			2022
Trade receivable	$	48,707,457		$	24,519,211
Less: Allowance for doubtful accounts		(4,618,269	)		(4,188,159	)
		44,089,188			20,331,052
Bills receivable		5,817,941			1,571,128
	$	49,907,129		$	21,902,180

Included in trade and bills receivables are retention receivables of $1,944,034 and $1,726,491 as of December 31, 2021 and September 30, 2022. Retention receivables are interest-free and recoverable either at the end of the retention period of three to five years since the sales of the EV batteries or 200,000 km since the sales of the motor vehicles (whichever comes first).

An analysis of the allowance for doubtful accounts is as follows:

	September 30,			September 30,
	2021			2022
Balance at beginning of period	$	5,266,828		$	4,618,269
Provision for the period		-			205,387
Reversal - recoveries by cash		(437,475	)		(136,736	)
Charged to consolidated statements of operations and comprehensive income (loss)		(437,475	)		68,651
Foreign exchange adjustment		65,261			(498,761	)
Balance at end of period	$	4,894,614		$	4,188,159