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Accounts Receivable, Net

12 Months Ended

Dec. 31, 2021

NOTE 6 – ACCOUNTS RECEIVABLE, NET

Accounts receivable consisted of the following:

	December 31, 2021			December 31, 2020
Trade accounts receivable from third-part customers	$	1,345,755			9,744,815
Less: allowances for doubtful accounts		(904,052	)		(6,888,710	)
Total accounts receivable from third-party customers, net		441,703			2,856,105
Add: accounts receivable, net, related parties		93,589			199,999
Accounts receivable, net	$	535,292			3,056,104

Due to a change in market conditions as affected by the COVID-19 outbreak and spread, the Company’s collection efforts did not result in a favorable outcome as compared to prior years. Out of the Company’s accounts receivable balance from third party customers as of December 31, 2021, approximately $0.4 million, or 30% has been collected as of the date of this report and the remaining balance is expected to be substantially collected from customers before December 31, 2022.

Allowance for doubtful accounts movement is as follows:

	December 31, 2021			December 31, 2020
Beginning balance	$	6,888,710			7,473,319
Bad debt provision		1,949,778			56,116
Write off		(7,722,231	)		(1,130,710	)
Reduction due to divestitures		(299,544	)		-
Foreign exchange translation		87,339			489,985
Ending balance	$	904,052			6,888,710

Below is the aging schedule of accounts receivable as of December 31, 2021 and 2020:

	December 31, 2021			December 31, 2020
Accounts Receivable Aging:
Less than 3 months	$	294,481			2,305,868
From 4 to 6 months		197,465			667,018
From 7 to 9 months		28,134			318,357
From 10 to 12 months		107,317			88,056
Over 1 year		811,947			6,565,515
Bad debt reserve		(904,052	)		(6,888,710	)
Accounts Receivable, net	$	535,292			3,056,104