XML 27 R17.htm IDEA: XBRL DOCUMENT v3.25.0.1
ACCRUED EXPENSES AND OTHER LIABILITIES
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
ACCRUED EXPENSES AND OTHER LIABILITIES

11. ACCRUED EXPENSES AND OTHER LIABILITIES

 

Accrued expenses and other liabilities consisted of the following:

   December 31, 2023   June 30, 2024 
   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.

 

12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER LIABILITIES 

Accrued expenses and other current liabilities consisted of the following:

 

   2022   2023 
   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.