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Accounts Receivable, Net

6 Months Ended

Jun. 30, 2025

NOTE 2 – ACCOUNTS RECEIVABLE, NET

Accounts receivable, net, consist of the following:

	June 30,			December 31,
	2025			2024
Trade accounts receivable		13,912,799			13,819,322
Less: allowance for credit loss		(13,644,006	)		(13,587,182	)
Trade accounts receivable, net	$	268,793		$	232,140

Our allowance for credit losses estimate practice using the current expected credit loss method is that we consider accounts receivable balances aged within 180 days current, except for any individual uncollectible account assessed by management. We account for the following respective percentage as bad debt allowance based on age of the accounts receivables: 10% of accounts receivable that are between 180 days and 365 days old, 70% of accounts receivable that are between 365 days and 720 days old, and 100% of accounts receivable that are greater than 720 days old.

We recognize credit losses per actual write-offs as well as changes of allowance for credit losses. To the extent that our current allowance for credit losses is higher than that of the previous period, we recognize a credit loss for the difference during the current period, and when the current credit losses are lower than that of the previous period, we recognize a gain from the reversal of the allowance for credit losses for the difference. The allowance for credit losses balances were $13.64 million and $13.59 million as of June 30, 2025 and December 31, 2024, respectively. The changes in the allowances for credit losses during the three and six months ended June 30, 2025 and 2024 were as follows:

	For the Three Months					For the Six Months
	Ended June 30,					Ended June 30,
	2025		2024			2025		2024
Balance, Beginning of Period		13,605,157		13,759,993			13,587,182		13,786,074
Credit losses		2,032		8,476			709		6,410
Foreign currency translation adjustment		36,817		(62,392	)		56,115		(86,407	)
Balance, End of Period		13,644,006		13,706,077			13,644,006		13,706,077