v3.26.1
ACCOUNTS RECEIVABLE, NET
 12 Months Ended
Dec. 31, 2025
Credit Loss [Abstract]  
ACCOUNTS RECEIVABLE, NET

NOTE 4 －ACCOUNTS RECEIVABLE, NET

 

Accounts receivable, net consisted of the following:

 

       
   As of December 31, 
   2024   2025 
Accounts receivable  $66,058,775   $70,502,399 
Accounts receivable, related parties   928,951    5,763,509 
 Accounts receivable, gross   66,987,726    76,265,908 
Less: allowance for expected credit losses   (59,124)   (255,199)
Accounts receivable, net  $66,928,602   $76,010,709 

 

The following table presents the activities in the allowance for expected credit losses:

 

       
   As of December 31, 
   2024   2025 
Balance at beginning of year  $128,312   $59,124 
Allowance for expected credit losses   3,007    196,075 
Written-off allowance during the year   (71,667)   - 
Foreign translation adjustment   (528)   - 
Balance at end of year  $59,124   $255,199 

 

 

The Company generally conducts its business with creditworthy third parties in export sales and leather trading, by offering the credit terms ranging from 7 to 115 days. The Company determines, on a continuing basis, the probable losses and an allowance of expected credit losses, based on several factors including internal risk ratings, customer credit quality, payment history, historical bad debt/write-off experience and forecasted economic and market conditions. Accounts receivables are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. In addition, receivable balances are monitored on an ongoing basis and its exposure to bad debts is not significant.

 

For the years ended December 31, 2023, 2024 and 2025, the Company evaluated the probable losses on accounts receivable and recorded the provision for allowance for expected credit losses of $102,010, $3,007 and $196,075, respectively.