v3.23.3
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Prepaid Expenses And Other Current Assets    
Advance to suppliers $ 325,852 $ 333,920
VAT input credits 355,482
Issue cost related to convertible promissory notes 69,566 81,614
Prepayment for land use right [1] 537,998 569,105
Security deposit [2] 53,865 56,979
Others receivable [3] 55,989 53,520
Prepaid expenses and other current assets $ 1,043,270 $ 1,450,620
[1] 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 $537,998) 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.
[2] On July 28, 2021, Sichuan Vtouch made a security deposit of RMB393,000 (equivalent to $53,865) 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.
[3] Other receivables are mainly employee advances, and prepaid expenses.