| PREPAYMENTS AND OTHER ASSETS, NET |
| 4. | PREPAYMENTS AND OTHER ASSETS, NET | The prepayments and other assets, net consisted of the following: | | | As of
June 30,
2026 | | | As of
December 31,
2025 | | | Deposits (a) | | $ | 13,232 | | | $ | 12,590 | | | Prepayments for goods and services | | | 3,591 | | | | 4,362 | | | VAT recoverable (b) | | | 11,240 | | | | 6,935 | | | Prepayments and other receivables for property and equipment (c) | | | 4,044 | | | | 4,782 | | | Loan receivable (d) | | | 17,839 | | | | 17,371 | | | Advances to employees | | | 152 | | | | 69 | | | Others | | | 488 | | | | 581 | | | Prepayments and other assets | | | 50,586 | | | | 46,690 | | | Less: Allowance for credit losses for prepayments and other assets | | | (543 | ) | | | (517 | ) | | Prepayments and other assets, net | | | 50,043 | | | | 46,173 | | | Less: Prepayments and other current assets, net | | | (25,754 | ) | | | (22,189 | ) | | Other non-current assets, net | | $ | 24,289 | | | $ | 23,984 | | | (a) | Deposits represent the refundable deposits to the lessors for the leased warehouses and office space. | | | | | (b) | VAT recoverable represents the balances that the Company can utilize to deduct its value-added tax liabilities within the next 12 months. | | | | | (c) | Prepayments and other receivables for property and equipment represent mainly prepayments and other receivables for constructions of logistic stations. | | (d) | On June 11, 2024, for the purpose of acquiring a land use right to expand the Company’s logistic business, the Company signed Memorandum of Understanding of Share Purchase Agreement (“2024 MOU”) with two shareholders of Hubei Xingqidian Supply Chain Management Co., Ltd. (“Xingqidian”, formerly named Hubei Tongzhou Information Harbor Co., Ltd.) to acquire 100% equity interest of Xingqidian, which owns land use right and constructed certain office and warehouse on such land use right. As of June 30, 2026, the Company made a loan of approximately $17.8 million (RMB121.5 million) to Xingqidian to secure the transaction and provide working capital for its further development. The loan with interest at an annual rate of 2.6%, and payable quarterly starting August 1, 2025. As of the date of this report, the share purchase transaction is not completed yet. | Movement of allowance for credit losses for prepayments and other assets | | | For the
Six Months Ended June 30,
2026 | | | Year Ended
December 31,
2025 | | | Beginning balance | | $ | 517 | | | $ | 573 | | | Provisions for credit losses for prepayments and other assets | | | 9 | | | | 100 | | | Written-off | | | - | | | | (168 | ) | | Foreign currency translation adjustments | | | 17 | | | | 12 | | | Ending balance | | $ | 543 | | | $ | 517 | |
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