SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Estimated Useful Lives

Estimated useful lives are as follows:

Buildings	20 years
Machinery and equipment	5-10 years
Office equipment	5 years
Motor vehicles	3-5 years
Leasehold improvement	3-10 years
Others	3 years

Estimated Useful Lives of Intangible Assets

Intangible assets are amortized using the straight-line approach over the estimated economic useful lives of the assets as follows:

Category	Estimated useful life
Land use rights	45.75 years
Software	3 years

Disaggregation of Revenue

The following table disaggregates the Company’s revenues by product line for the years ended December 31, 2022 and 2021:

		For the Years Ended December 31,
		2022				2021
Vehicles sales		$	8,235,053			$	7,287,478
Spare-parts sales			304,506				195,350
Other service income			402,276				1,094,004
Net revenues		$	8,941,835			$	8,576,832

The Company’s revenues are primarily derived from Europe, America and Asia. The following table sets forth disaggregation of revenue by customer location.

		For the Years Ended December 31,
		2022				2021
Primary geographical markets
Europe		$	7,052,452			$	4,380,752
America			697,452				3,420,636
Asia			1,191,931				729,868
Oceania			-				45,576
Total		$	8,941,835			$	8,576,832

Receivables and Contractual Liabilities from Contracts with Customers

The following table provides information about receivables and contractual liabilities from contracts with customers:

	December 31, 2022		December 31, 2021
Accounts receivable, net	$	565,398	$	2,047,560
Contractual liabilities	$	2,388,480	$	1,943,623

Foreign Currency Translation Rates

Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the reporting period. Capital accounts of the consolidated and combined financial statements are translated into USD from RMB at their historical exchange rates when the capital transactions occurred. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive loss in the balance sheets. The rates are obtained from H.10 statistical release of the U.S. Federal Reserve Board.

		For the Years Ended December 31,
		2022				2021
Period end USD: RMB exchange rate			6.8972				6.3726
Average USD: RMB exchange rate			6.7290				6.4508
Period end USD: EUR exchange rate			0.9348				0.8835
Average USD: EUR exchange rate			0.9493				0.8453

Long-lived Assets by Geographic Segment

The following table presents long-lived assets by geographic segment as of December 31, 2022 and 2021.

Long-lived assets

	December 31,
	2022		2021
PRC	$	18,018,954	$	2,177,091
US		9,125,535		527,469
Dominican		469,740		-
Others		99,303		269,360
Total	$	27,713,532	$	2,973,920