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PREPAID EXPENSES AND OTHER CURRENT ASSETS
 3 Months Ended
Mar. 31, 2023
Prepaid Expenses And Other Current Assets  
PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE-4 — PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

Prepaid expenses and other current assets consist of the following:

   March 31, 2023   December 31, 2022 
Advance to suppliers  $345,204   $333,920 
VAT input credits   38,549    355,482 
Issue cost related to convertible promissory notes   78,150    81,614 
Prepayment for land use right (i)   571,558    569,105 
Security deposit (ii)   57,225    56,979 
Others receivable (iii)   55,907    53,520 
Prepaid expenses and other current assets  $1,146,593   $1,450,620 

 

(i)On July 23, 2021, Sichuan Vtouch entered into a contract with Chengdu Wenjiang District Planning and Natural Resources Bureau for purchasing a land use right of 131,010 square feet with a consideration of RMB3,925,233 (equivalent to $571,558) for the new facility. The Company made a full prepayment by November 18, 2021. Upon a certificate of land use right issued by the local government, which is estimated to be obtained by the fourth quarter of 2023, the Company will reclassify this prepayment to intangible assets accordingly.

 

(ii)On July 28, 2021, Sichuan Vtouch made a security deposit of RMB393,000 (equivalent to $57,225) to Chengdu Cross-Strait Science and Technology Industry Development Park Management Committee to obtain a construction license for new facility. This deposit will be refunded upon the issuance of the construction license by the end of 2023.

 

(iii)Other receivables are mainly employee advances, and prepaid expenses.