20. DEBT RESTRUCTURING

During the year ended December 31, 2025, the Company entered into troubled debt restructurings with FT Global (“the Creditor”) due to financial difficulties. On June 17, 2025, the Company entered into a settlement and forbearance agreement (“the Agreement”) with FT Global. Pursuant to the Agreement, the company was required to pay an aggregate settlement amount of $4.0 million and issue a total of 106,250 shares of common stock, among which, (i) $0.5 million was paid no later than June 20, 2025, (ii) $1.0 million, $1.3 million and $1.2 million shall be paid within six months, twelve months and eighteen months after signing of the Agreement, respectively, and (iii) 107,368 shares of common stock were issued from June 30, 2025 to May 7, 2026. As of June 30, 2026, a total of 107,368 shares of common stock had been issued and an aggregate amount of $2.98 million had been repaid to the Creditor.

The Company derecognized the amount previously due to FT Global, and recognized the present value of total settlement amount including the above-mentioned cash payments and common stocks in paid-in capital and other payables on the unaudited condensed consolidated balance sheets. Upon the debt restructuring, the Company recognized a gain of $3.07 million during the six months ended June 30, 2025, which was recorded as gain on debt restructuring in the unaudited condensed consolidated statement of operations and comprehensive income (loss).