Note 7 - Prepayment and OTHER CURRENT ASSETS, NET

Prepayment and other current assets consist of prepaid expenses, other receivables, and deposits. As of December 31, 2025 and 2024, prepayment and other current assets consisted of the following:

On April 10, 2022, July 19, 2022 and October 18, 2022, the Company entered into a loan agreement with a third party, Muliang Agriculture Limited, to lend $280,000, $20,000 and $5,000 at the interest rate of 1% as working capital support. On April 9, 2023, both parties agreed to extend the loan to December 31, 2024 and increased the total loan amount to $600,000. The loan was further extended to December 31, 2026 on November 26, 2025. As of December 31, 2025, the outstanding loan balance due from Muliang Agriculture Limited was $465,000. During the year ended December 31, 2025, the Company recognized interest income of $4,650 in connection with this loan.

On March 1, 2023, the Company entered into a loan agreement with a third party, Northnew Management Limited, to lend $2,000,000 at the interest rate of 1%. On February 20, 2025, both parties agreed to extend the loan to December 31, 2025 and increased the amount to $3,100,000. On December 18, 2025, both parties agreed to extend the loan to December 31, 2026. As of December 31, 2025, the outstanding loan balance due from Northnew Management Limited was $3,095,426. During the year ended December 31, 2025, the Company recognized interest income of $28,845 in connection with this loan.