| PREPAID EXPENSES AND OTHER CURRENT ASSETS |
NOTE-4
— PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid
expenses and other current assets consist of the following:
SCHEDULE
OF PREPAID EXPENSES AND OTHER CURRENT ASSETS
| | |
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. |
|
NOTE-4
— PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid
expenses and other current assets consists of the following:
SCHEDULE
OF PREPAID EXPENSES AND OTHER CURRENT ASSETS
| | |
December 31,
2022 | | |
December 31,
2021 | |
| Advance to suppliers | |
$ | 333,920 | | |
$ | 244,758 | |
| VAT input credits | |
| 355,482 | | |
| 307,575 | |
| Issue cost related to convertible promissory notes | |
| 81,614 | | |
| 159,000 | |
| Deferred marketing expenses | |
| - | | |
| 1,000,000 | |
| Prepayment for land use right/ (i) | (i) |
| 569,105 | | |
| 615,955 | |
| Security deposit (ii) | (ii) |
| 56,979 | | |
| 61,670 | |
| Others receivable (iii) | (iii) |
| 53,520 | | |
| 56,936 | |
| Prepaid expenses and other current assets | |
$ | 1,450,620 | | |
$ | 2,445,894 | |
| (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 $569,105) 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 $56,979) 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 end of 2023. |
| (i) | | Other receivables
are mainly employee advances, and prepaid expenses. |
|