Prepaid Expenses and Other Receivables

6 Months Ended

Jun. 30, 2023

Prepaid Expenses And Other Receivables

Prepaid Expenses and Other Receivables

Note 8 - Prepaid Expenses and Other Receivables

Prepaid expenses and other receivables consisted of the following as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
Prepaid expenses	$	318,378	$	1,504,671
Other receivables		82,996		79,175
	$	401,374	$	1,583,846

As of June 30, 2023 and December 31, 2022, prepaid expenses and other receivables mainly represented prepaid insurance, prepaid advertising expense, and Celero and Cardknox account balances. In October 2022, Nova Malaysia entered into a business agreement with an I.T. firm to develop a virtual reality and augmented reality development project and related works. Nova Malaysia agreed to pay 10,000,000 Malaysia Ringgit ($2,110,640) for developing the project. The payment would be paid as first phase for 40% of total payment, second phase for 20% of total payment, third phase for 20% of total payment and fourth phase for 20% of total payment. On May 10, 2023, the virtual reality and augmented reality development project was completed and put it in use. The total payment to IT firm was 11,000,000 Malyaia Ringgit ($2,357,985) and was recorded as intangible asset. (see Note 6)