DEPOSIT, PREPAYMENTS AND OTHER RECEIVABLES

12 Months Ended

Dec. 31, 2022

Deposit Prepayments And Other Receivables

DEPOSIT, PREPAYMENTS AND OTHER RECEIVABLES

NOTE－ 7 DEPOSIT, PREPAYMENTS AND OTHER RECEIVABLES

	December 31,
	2022		2021
Deposits	$	921,429	$	68,991
Prepayments		573,513		32,279
Prepayments for consultancy fee (a)		858,665		6,010,667
Prepayments for first insurance funding (b)		—		742,500
Value added tax		140,053		96,818
Interest receivable		12,763		—
Other receivables		204,619		1,666
Total	$	2,711,042	$	6,952,921
Less: non-current portion
Prepayments for consultancy fee		—		(858,667	)
Current portion	$	2,711,042	$	6,094,254

(a) On December 6, 2021, the Company entered into two consulting agreements with China-America Culture Media Inc. and New Continental Technology Inc., acting as consultant to assist the Company in completing certain Business Opportunities with potential partners until February 28, 2023. The considerations of the services are $3,250,000 and $3,190,000. The Company's due to China-America Culture Media Inc. balance was $433,332 and $3,033,334 as of December 31, 2022 and 2021, respectively. The Company's due to New Continental Technology Inc., balance was $425,333 and $2,977,333 as of December 31, 2022 and 2021, respectively. For the years ended December 31, 2022 and 2021, the Company recognized the amortization of prepaid consulting expense of $5,152,002 and $429,333, respectively, using the straight-line method, over a term of 15 months.

(b) On October 7, 2021, the Company purchased the Directors and Officers (D&O) insurance at a premium fee of $990,000 for a term of 12 months. Also, the Company entered a loan agreement with First Insurance Funding to finance 75% of the total premium, to repay the premium of $990,000. The Company paid the down payment of $247,500 (25%) and the remaining balance $742,500 (75%) to be repaid by 10 installments until August 7, 2022. The Company’s D&O insurance prepayment balance was $0 and $742,500 as of December 31, 2022 and 2021, respectively. For the years ended December 31, 2022 and 2021 the Company recognized the amortization of prepaid insurance expense of $742,500 and $146,453, respectively.