Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 16, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Future FinTech Group Inc. | |
Entity Central Index Key | 1,066,923 | |
Trading Symbol | FTFT | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,173,187 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 4,545,501 | $ 1,143,585 |
Accounts receivable, net of allowance of $111,942 as of September 30, 2017 and December 31, 2016, respectively | 506,149 | 7,325,773 |
Other receivables | 31,493,950 | 28,417,194 |
Inventories | 4,236,014 | 3,041,300 |
Deferred tax assets | 3,566,442 | 3,566,442 |
Advances to suppliers and other current assets | 54,230,726 | 58,132,189 |
TOTAL CURRENT ASSETS | 98,578,782 | 101,626,483 |
PROPERTY, PLANT AND EQUIPMENT, NET | 85,356,432 | 81,523,569 |
LAND USE RIGHT, NET | 32,912,504 | 31,854,360 |
LONG TERM ASSETS | 2,915,518 | 2,789,390 |
DEPOSITS | 44,969,613 | 43,867,228 |
TOTAL ASSETS | 264,732,849 | 261,661,030 |
CURRENT LIABILITIES | ||
Accounts payable | 22,108,242 | 16,569,988 |
Accrued expenses | 29,985,762 | 27,449,664 |
Income tax payable | 3,590,084 | |
Advances from customers | 470,230 | 696 |
Short-term bank loans | 30,836,535 | 29,364,279 |
TOTAL CURRENT LIABILITIES | 83,400,769 | 76,974,711 |
NON-CURRENT LIABILITIES | ||
Obligations under capital leases | 17,301,683 | 14,494,003 |
TOTAL NON-CURRENT LIABILITIES | 17,301,683 | 14,494,003 |
TOTAL LIABILITIES | 100,702,452 | 91,468,714 |
Future Fintech Group Inc., Stockholders' equity | ||
Series B Preferred stock, $0.001 par value; 10,000,000 shares authorized; None issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | ||
Common stock, $0.001 par value; 8,333,333 shares authorized; 5,173,187 and 4,061,090 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 5,173 | 4,061 |
Additional paid-in capital | 108,020,656 | 105,366,887 |
Retained earnings | 85,776,599 | 100,237,011 |
Accumulated other comprehensive loss | (64,240,263) | (70,579,747) |
Total Future FinTech Group Inc. stockholders' equity | 129,562,165 | 135,028,212 |
Non-controlling interests | 34,468,232 | 35,164,104 |
TOTAL EQUITY | 164,030,397 | 170,192,316 |
TOTAL LIABILITIES AND EQUITY | $ 264,732,849 | $ 261,661,030 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivables, net of allowance | $ 111,942 | $ 111,942 |
Series B Preferred stock, par value | $ 0.001 | $ 0.001 |
Series B Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Series B Preferred stock, shares issued | ||
Series B Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 8,333,333 | 8,333,333 |
Common stock, shares issued | 5,173,187 | 4,061,090 |
Common stock, shares outstanding | 5,173,187 | 4,061,090 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 4,443,710 | $ 10,590,973 | $ 10,179,416 | $ 26,256,579 |
Cost of goods sold | 4,519,587 | 7,525,561 | 8,427,936 | 19,937,371 |
Gross profit | (75,877) | 3,065,412 | 1,751,480 | 6,319,208 |
Operating Expenses | ||||
General and administrative expenses | 8,660,710 | 1,009,520 | 14,593,052 | 2,696,577 |
Selling expenses | 221,684 | 1,107,677 | 727,641 | 2,719,507 |
Total operating expenses | 8,882,394 | 2,117,197 | 15,320,693 | 5,416,084 |
Income (loss) from operations | (8,958,271) | 948,215 | (13,569,213) | 903,124 |
Other income (expense) | ||||
Interest income | 13,747 | 2,032 | 160,370 | |
Subsidy income | 573,040 | (8,916) | 915,164 | 541,230 |
Interest expenses | (112,743) | (688,904) | (738,705) | (1,688,263) |
Other income (expenses) | 2,238,382 | (69,557) | 2,098,173 | (6,780) |
Total other income (expenses) | 2,698,679 | (753,630) | 2,276,664 | (993,443) |
Income (loss) before income tax | (6,259,592) | 194,585 | (11,292,549) | (90,319) |
Income tax provision | (1,825) | 250,453 | 258,260 | 884,282 |
Net loss | (6,257,767) | (55,868) | (11,550,809) | (974,601) |
Less: Net loss attributable to non-controlling interests | (2,971,298) | (364,742) | (2,767,477) | (127,278) |
NET LOSS ATTRIBUTABLE TO FUTURE FINTECH GROUP, INC. | (9,229,065) | (420,610) | (14,318,286) | (1,101,879) |
Discontinued Operations (Note 11) | ||||
Loss from discontinued operations | (45,418) | (142,126) | ||
NET LOSS ATTRIBUTABLE TO FUTURE FINTECH GROUP, INC. | (9,274,483) | (420,610) | (14,460,412) | (1,101,879) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | 4,953,922 | 228,830 | 7,912,158 | 1,215,660 |
Comprehensive income (loss) | (1,349,263) | 172,962 | (4,500,777) | 241,059 |
Comprehensive income (loss) attributable to non-controlling interests | 1,195,760 | (24,844) | 452,317 | 8,613,955 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO FUTURE FINTECH GROUP, INC. | $ (153,503) | $ 148,118 | $ (4,048,460) | $ 8,855,014 |
Loss per share: | ||||
Basic loss per share from continued operations | $ (1.89) | $ (0.28) | $ (3.01) | $ (0.28) |
Basic loss per share from discontinued operations | (0.01) | (0.03) | ||
Basic loss per share from net income | (1.90) | (0.28) | (3.04) | (0.28) |
Diluted loss per share: | ||||
Diluted loss per share from continued operations | (1.86) | (0.28) | (2.97) | (0.28) |
Diluted loss per share from discontinued operations | (0.01) | (0.03) | ||
Diluted loss per share from net income | $ (1.87) | $ (0.28) | $ (3) | $ (0.28) |
Weighted average number of shares outstanding | ||||
Basic | 4,751,552 | 3,887,435 | 4,751,552 | 3,887,435 |
Diluted | 4,814,052 | 3,887,435 | 4,814,052 | 3,887,435 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (14,460,412) | $ (1,101,879) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Minority interest | 2,767,477 | 127,278 |
Depreciation and amortization | 2,341,178 | 3,739,607 |
Changes in operating assets and liabilities | ||
Accounts receivable | 6,908,544 | 42,466,850 |
Notes receivable | (986,502) | |
Other receivable | (1,248,917) | (2,643,904) |
Advances to suppliers and other current assets | 5,384,278 | (15,639,125) |
Inventories | (1,021,369) | (1,398,802) |
Accounts payable | (115,060) | 10,522,211 |
Accrued expenses | 1,250,827 | 347,377 |
Income tax payable | (796,119) | (1,134,706) |
Advances from customers | 453,592 | (187,952) |
Net cash provided by (used in) operating activities | 1,464,019 | 34,110,453 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (1,042,191) | (28,386) |
Proceeds from disposal of plant, property and equipment | 334,236 | |
Prepayment for other assets | 851,294 | (91,914,922) |
Purchase of intangible assets | (1,321,964) | |
Net cash used in investing activities | (190,897) | (92,931,036) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issue of common stock | 4,880,921 | 16,377,868 |
Decrease in restricted cash | 3,030,579 | |
Proceeds from short-term notes | 139,599 | 136,376 |
Repayment of short-term bank loans | (690,739) | (2,103,222) |
Repayment of long term debt | (1,216,791) | |
(Repayment) proceeds from related party loan | 2,079,369 | (239,928) |
Payment for capital lease | 7,982,400 | |
Net cash provided by financing activities | 6,409,150 | 23,967,282 |
Effect of change in exchange rate | (4,280,356) | (12,621,060) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,401,916 | (47,474,361) |
Cash and cash equivalents, beginning of period | 1,143,585 | 50,006,914 |
Cash and cash equivalents, end of period | 4,545,501 | 2,532,553 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 737,651 | 1,176,401 |
Cash paid for income taxes | 258,260 | 884,282 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ||
Transferred from other assets to property, plant and equipment and construction in process | $ 851,294 | $ 91,914,922 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2017 and the results of operations and cash flows for the periods ended September 30, 2017 and 2016. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three months and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2017. The balance sheet at December 31, 2016 has been derived from the audited financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2016 as included in our Annual Report on Form 10-K. |
Business Description and Signif
Business Description and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Business Description and Significant Accounting Policies [Abstract] | |
Business Description and Significant Accounting Policies | 2. Business Description and Significant Accounting Policies On June 6, 2017, the Company filed a Certificate of Amendment with the Secretary of State for the State of Florida to amend and restate its articles of incorporation to change its name from SkyPeople Fruit Juice, Inc. to Future FinTech Group Inc., effective immediately (“the Name Change”). The Name Change was approved by the Company’s Board of Directors on March 30, 2017 and by shareholders holding a majority of the Company’s issued and outstanding capital stock on March 31, 2017. In addition, effective as of June 6, 2017, the Company’s bylaws were amended and restated to reflect the Name Change. The principal activities of Future Fintech Group Inc. (“Future FinTech”) (together with our direct or indirect subsidiaries, “we,” “us,” “our” or “the Company”) consist of production and sales of fruit juice concentrates, fruit juice beverages, and other fruit-related products in the People’s Republic of China (“PRC”, or “China”), and overseas markets. All activities of the Company are principally conducted by subsidiaries operating in the PRC. Organizational Structure Our current organizational structure is set forth in the diagram below: (1) Xi’an Qinmei Food Co., Ltd., an entity not affiliated with the Company, owns the remaining 8.85% of the equity interest in Shaanxi Qiyiwangguo. (2) Formerly known as Shaanxi Tianren Organic Food Co. Ltd. (3) Hedetang Foods Industry (Yidu) Co., Ltd., formerly known as SkyPeople Juice Group Yidu Orange Products Co., Ltd., was established on March 13, 2012. Its scope of business includes deep processing and sales of oranges. (4) Hedetang Agricultural Plantations (Yidu) Co., Ltd., formerly known as Hedetang Fruit Juice Beverages (Yidu) Co., Ltd., was established on March 13, 2012. Its scope of business includes the planting, acquisition and sales of vegetables, fruits, flowers, farm products; fresh fruit picking; research, training and promotion of planting and breeding technology. (5) SkyPeople (Suizhong) Fruit and Vegetable Products Co., Ltd. was established on April 26, 2012. Its scope of business includes the initial processing, quick-freezing and sales of agricultural products and related by-products. (6) Hedetang Farm Products Trading Market (Mei County) Co., Ltd., formerly known as SkyPeople Juice Group (Mei County) Kiwi Fruit and Farm Products Trading Market Co., Ltd. (“Kiwi Fruit & Farm Products”) was established on April 19, 2013. Its scope of business includes preliminary processing of agricultural and subsidiary products, establishment of trading markets for agriculture products, and similar activities. (7) Shaanxi Guo Wei Mei Kiwi Deep Processing Co., Ltd. was established on April 19, 2013. Its scope of business includes producing kiwi fruit juice, kiwi puree, cider beverages, and similar products. (8) Xi’an Hedetang Fruit Juice Beverages Co., Ltd. (“Xi’an Hedetang”) was established on March 31, 2014. Its scope of business includes the production and sales of fruit juice beverages. On August 10, 2017, it changed its name to Xi’an Hedetang Nutritious Food Research Institute Co., Ltd. (9) Xi’an Cornucopia International Co., Ltd. (“Cornucopia”) was established on July 2, 2014. Its scope of business includes the retail and wholesale of pre-packaged food. (10) Shaanxi Fruitee Fun Co., Ltd. (“Fruitee Fun”) was established on July 3, 2014. Its scope of business includes retail and wholesale of pre-packaged food. Shaanxi Fruitee Fun Co., Ltd. (also known as Shaanxi Guoweiduomei Beverage Co., Limited) changed its name to Hedetang Foods Industry (Xi’an) Co., Ltd. (“Foods Industry Xi’an”) on July 5, 2016. On June 6, 2017, it again changed its name to HedeJiachuan Foods (Xi’an) Co. Ltd. (11) Hedetang Holding Group Co., Ltd., formerly known as Hedetang Holding Co., Ltd., (“Hedetang Holding”) was established on July 21, 2014. Its scope of business includes corporate investment consulting, corporate management consulting, corporate image design and corporate marketing planning. On June 14, 2017, it changed its name to HedeJiachuan Holding Group Co. Ltd. (12) The Company acquired Huludao Wonder Co. Ltd. (“Huludao”) on September 10, 2008. Its scope of business mainly includes the manufacture and sale of concentrated fruit juice and fruit juice beverages. (13) The Company acquired Yingkou Trusty Fruits Co., Ltd. (“Yingkou”) on November 25, 2009. Its scope of business mainly includes the manufacture of concentrated fruit juice. (14) Hedetang Foods Industry (Jingyang) Co., Ltd. was established on September 7, 2016. Its scope of business includes processing, storage and sales of farm products, fruits, tea and snacks; as well as research and promotion of processing technology of organic agriculture, fruit industry and agricultural products. (15) HedeJiachuan Foods (Yichang) Co. Ltd (“Hedejiachuan Yichang”), formerly known as Hedetang Farm Products Trading Market (Yidu) Co., Ltd., and Hedetang Foods Industry (Yichang) Co., Ltd, was established on March 23, 2016. Its scope of business includes construction, operation, and property management of a farm products trading market; e-commerce services forfarm products; and construction and operation management of an e-commerce information platform. (16) Xi’an Hedetang E-Commerce Co., Ltd. was established on April 21, 2016. Its scope of business includes online sales of pre-packaged foods and bulk foods. (17) The Company acquired Hedetang Foods (China) Co., Ltd. (“Hedetang Foods China”) on May 18, 2016 through the acquisition of Belking Foods Holdings Group Co., Ltd., the 100% indirect shareholder of Hedetang Foods China, on the same date. The scope of business of Hedetang Foods China includes wholesale and retail of food and beverages; import and export trade of fruit, vegetables, and dried fruit; packaging; logistics and distribution; online sales; and business management consulting services. (18) Hedetang Agricultural Plantations (Mei County) Co., Ltd. was established on September 2, 2016. Its scope of business includes the planting, acquisition and sales of vegetables, fruits, flowers, Chinese herbal medicine, and farm products; fresh fruit picking; research, training and promotion of planting and breeding technology, development and training for E-commerce and online sales of agricultural and sideline products. On September 6, 2017, it changed its name to Shaanxi China Agricultural Silk Road Farm Products Trading Center Co., Ltd. (19) Hedetang Foods Industry (Zhouzhi) Co., Ltd. was established on November 29, 2016. Its scope of business includes production, processing and sales of kiwifruit wine, juice, puree and beverages; storage and sales of fresh fruits; and import and export of a variety of products and technology. (20) Future FinTech (HongKong) Limited (“FintTech HK”), formerly known as Future World Trading (Hong Kong) and SkyPeople International Trading (HK) Limited, was first established on July 27, 2016. It mainly engages in the import and export of food products. (21) GlobalKey Supply Chain Limited formerly known as Shaanxi Quangoutong E-commerce Inc., was acquired on May 27, 2017. Its main business scope includes computer hardware and software equipment, electronic products and communication equipment, computer network engineering design, business information consultation, online sales and online marketing, and investment management. (22) Xi’an Taizhan Financial Management Co. Ltd (“Xi’an Taizhan”) was established on March 17, 2017. Its main business scope includes financial management consulting, business information consulting and engineering information consulting, enterprise management consulting and feasibility analysis and editing of project construction. (23) Shaanxi Heying Trading Co. Ltd was established on December 17, 2009. Its main business scope includes the sales of pre-packaged food and bulk food; import and export of goods and technology; food technology research and development; business management and consulting, and corporate planning services. (24) Zhonglian Hengxin Assets Management Co., Ltd. (“Zhonglian Hengxin”) was established . Its main business scope includes asset management (except for financial, securities, futures and other restricted items); asset acquisition, asset disposal and asset operation (except for financial, securities, futures and other restricted items); planning and advisory for corporate restructure and merger and acquisition; equity and real estate investment (no public offerings, only owned assets investment); financial business process outsourcing entrusted by financial institutions; financial information technology outsourcing entrusted by financial institutions; financial knowledge process outsourcing. Businesses that require approval by government agencies shall only operate within the scope of such approval. (25) Shenzhen Hedetang Industrial Co., Ltd. (Shenzhen Hedetang) was established on September 29, 2017. Its main business scope includes industrial projects; domestic trade; and import and export businesses. (26) Hedejiachuan (HK) Holdings Limited, formerly known as SkyPeople Foods International Holdings (HK) Limited and later Hedetang Holdings (Asia-Pacific) Limited, was established on January 13, 2012. It was established mainly to engage in the import and export of food products. Principles of Consolidation Our consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with U.S. GAAP. This basis differs from that used in the statutory accounts of SkyPeople (China), Hedetang Food (China), Hedetang Holding, Huludao Wonder, Xi’an Cornucopia, Xi’an Hedetang Juice Beverages, Yingkou, Shaanxi Qiyiwangguo, Hedetang E-commerce, SkyPeople Suizhong, Shaanxi Fruitee Fun, Food Industry Yidu, Food Industry Jingyang, Guo Wei Mei, Agriculture Plantation Yidu, Trading Market Yidu, and Trading Market Mei County, which were prepared in accordance with the accounting principles and relevant financial regulations applicable to enterprises in the PRC. All necessary adjustments have been made to present the financial statements in accordance with U.S. GAAP. Uses of estimates in the preparation of financial statements The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates. Shipping and Handling Costs Shipping and handling amounts billed to customers in related sales transactions are included in sales revenues and shipping expenses incurred by the Company are reported as a component of selling expenses. The shipping and handling expenses of $1,246 and $409,294 for the three months ended September 30, 2017 and 2016, respectively; and $327,097 and $451,331 for the nine months ended September 30, 2017 and 2016, respectively; are reported in the Consolidated Statements of Income and Comprehensive Income (Loss) as a component of selling expenses. Leases Leases are reviewed and classified as capital or operating at their inception in accordance with ASC Topic 840, Accounting for Leases Earnings Per Share (“EPS”) The Company adopted ASC Topic 215, Statement of Shareholder Equity Recent Accounting Pronouncements In January 2017, the FASB issued a new accounting standard update on simplifying the accounting for goodwill impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. This guidance will be effective for interim or annual goodwill impairment tests in fiscal years beginning after December 15, 2019 and will be applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. We are evaluating the impact of adopting this amendment to our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business,” which clarifies the definition of a business in ASC 805. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. Currently, there is no impact to our consolidated financial statements and related disclosures, but we will adopt on January 1, 2018 for any business combinations and will consider adopting early for any acquisitions prior to January 1, 2018. In May 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting”, which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which we would be required to apply modification accounting under ASC 718. Specifically, we would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The guidance is effective for annual reporting periods, including interim period within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. We are currently evaluating the impact the standard may have on our consolidated financial statements and related disclosures should we have a modification to our share-based payment awards in the future. In August 2017, the FASB issued ASU 2017-12. ASU 2017-12 amends the hedge accounting model in Accounting Standards Codification (“ASC”) 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. ASU 2017-12 expands an entity’s ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The guidance in ASU 2017-12 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years, and is effective for the Company beginning July 1, 2019. Early adoption is permitted in any interim period or fiscal year before the effective date. Adoption of ASU 2017-12 did not have any other material effect on the results of operations, financial position or cash flows of the Company. There were no other recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2017, compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 that are of significance or potential significance to us. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories by major categories are summarized as follows: September 30, December 31, 2016 (Unaudited) (Audited) Raw materials and packaging $ 3,132,001 $ 1,107,857 Finished goods 1,104,013 1,933,443 Inventories $ 4,236,014 $ 3,041,300 |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transaction [Abstract] | |
Related Party Transaction | 4. Related Party Transaction Sales to Related Party The Company’s subsidiary sold fruit beverages to a related entity, Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. (“Fullmart”) for approximately $58,972 and $102,423 for the nine months ended September 30, 2017 and 2016, respectively. The accounts receivable balances were approximately $0 and $308,304 as of September 30, 2017 and December 31, 2016, respectively. Fullmart is a company indirectly beneficially-owned by a member of our Board of Directors (and former Chairman and Chief Executive Officer), Mr. Yongke Xue. Long-term Loan – Related Party There were no short-term loans to a related party as of each of September 30, 2017 and 2016. On February 18, 2013, SkyPeople (China) entered into a loan agreement with SkyPeople International Holdings Group Limited (the “Lender”). At that time the Lender indirectly held 50.2% interest in the Company and currently holds 12.9% interest in the Company. Mr. Yongke Xue (“Y. K. Xue”), then the Chairman and Chief Executive Officer (“CEO”) of the Company and currently a Member of the Company’s Board of Directors (the “Board”) and Mr. Hongke Xue, our Chairman and CEO, indirectly and beneficially own 80.0% and 9.4% of the equity interest in the Lender, respectively. Pursuant to the Agreement, the Lender agreed to extend to the Company a one-year unsecured term loan with a principal amount of $8.0 million at an interest rate of 6% per annum. During 2013, the Company received $8.0 million from the Lender. In February 2014, both parties extended this loan for another two years under the original terms of the agreement. On October 16, 2015, the Company entered into a Share Purchase Agreement with the Lender to sell 5,321,600 shares (not giving effect to the reverse split of the Company’s common stock) of the common stock of the Company at the price of $7,982,400, which was paid by cancellation of the loan by the Lender. On March 10, 2016, the Lender canceled the loan and the shares were issued to the Lender. |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2017 | |
Concentrations [Abstract] | |
Concentrations | 5. Concentrations (1) Concentration of Customers Sales to our five largest customers accounted for approximately 4% and 37% of our net sales during the three months ended September 30, 2017 and 2016, respectively. There was no single customer representing over 10% of total sales for the three months ended September 30, 2017 and September 30, 2016, respectively. (2) Concentration of Suppliers One supplier accounted for 11% and 66% of our purchases for the three months ended September 30, 2017 and September 30, 2016, respectively. |
Issuance of Common Stock and Wa
Issuance of Common Stock and Warrants | 9 Months Ended |
Sep. 30, 2017 | |
Issuance of Common Stock and Warrants [Abstract] | |
Issuance of Common Stock and Warrants | 6. Issuance of Common Stock and Warrants On February 28, 2017, the Company issued options to purchase 62,500 shares of the Company’s common stock with an exercise price equal to the fair market value of the Company’s Common Stock (as defined under the 2011 Stock Incentive Plan in conformity with Regulation 409A of the Internal Revenue Code of 1986, as amended) at the date of grant to three of the Company’s employees pursuant to the 2011 Stock Incentive Plan, which was approved by the Company’s shareholders at the annual stockholders meeting on August 18, 2011. These options vested immediately on the grant date with a fair market value of $223,375 based on the fair value of $3.57 per share, which was determined by using the Black Scholes option pricing model. The Company recognized stock-based compensation expense of $223,375 in the first quarter of fiscal year 2017 under the 2011 Stock Incentive Plan. On March 29, 2017, the Company issued 250,000 shares of the Company’s unrestricted common stock to six of the Company’s employees pursuant to our Omnibus Equity Plan, which was approved by the Company’s shareholders at the annual stockholders meeting on November 19, 2015. The Company recorded an expense of $250 in the first quarter of fiscal year 2017 under the Omnibus Equity Plan, reflecting a par value of $0.001 per share of the Company’s common stock. The Company’s Omnibus Equity Plan permits the grant of incentive stock options (“ISOs”), nonqualified stock options (“NQSOs”), stock appreciation rights (“SARs”), restricted stock, unrestricted stock and restricted stock units (“RSUs”) to its employees of up to 250,000 shares of Common Stock. On April 12, 2017, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Purchasers”), pursuant to which the Company offered and sold to the Purchasers, in a registered direct offering, an aggregate of 862,097 shares (the “Shares”) of common stock, par value $0.001 per share (“Common Stock”). The Shares were sold to the Purchasers at a negotiated purchase price of $3.10 per share, for aggregate gross proceeds to the Company of $2,672,500, In a concurrent private placement, the Company also issued to each of the Purchasers a warrant to purchase one (1) share of the Company’s Common Stock for each share purchased under the Purchase Agreement, pursuant to that certain Common Stock Purchase Warrant, by and between the Company and each Purchaser (each, a “Warrant”, and collectively, the “Warrants”). The Warrants will be exercisable beginning on the six month anniversary of the date of issuance at an initial exercise price of $5.20 per share and will expire on the five and a half year anniversary of the date of issuance. The Warrants and the shares of the Company’s Common Stock issuable upon the exercise of the Warrants (the “Warrant Shares”) are not being registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the Company’s Registration Statement, and were instead offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act. Each Purchaser was either (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. In connection with the private placement and in accordance with the Purchase Agreement, the Company was required to file a registration statement on Form S-1 within 45 calendar days after the date of the Purchase Agreement to provide for the resale of the Warrant Shares. The Company filed a registration statement on Form S-1 (File No. 333-218276) on May 26, 2017, which was declared effective on June 12, 2017. Rodman & Renshaw, a unit of H.C. Wainwright & Co., served as our placement agent in connection with the offering under the Purchase Agreement and received warrants to purchase our Common Stock in an amount equal to 4% of our Shares sold to the Purchasers in the offering on substantially the same terms as the Warrants, with an initial exercise price of $5.20 per share, except that the termination date shall be April 12, 2022 and the warrants have certain transfer restrictions pursuant to FINRA Rule 5110 (the “Placement Agent Warrants”). Per the terms of the Purchase Agreement, the Company and the Purchasers agreed to the following: (i) that subject to certain exceptions, the Company will not, within the ninety day period immediately following the closing of the offering, enter into any agreement to issue or announce the issuance or proposed issuance of any securities; (ii) the Company will not, during the period in which the Warrants are outstanding, enter into an agreement to effect a “Variable Rate Transaction,” as that term is defined in the Purchase Agreement; and (iii) until the one-year The Company also agreed to indemnify each of the Purchasers against certain losses resulting from its breach of any representations, warranties or covenants under agreements with each of the Purchasers, as well as under certain other circumstances described in the Purchase Agreement. |
Share Split
Share Split | 9 Months Ended |
Sep. 30, 2017 | |
Share Split [Abstract] | |
Share Split | 7. Share Split On March 10, 2016, the Company filed with the Florida Secretary of State’s office an amendment to its Articles of Incorporation (the “Articles of Amendment”). As a result of the Articles of Amendment, the Company authorized and approved a 1-for-8 reverse stock split of the Company’s authorized shares of common stock from 66,666,666 shares to 8,333,333 shares, accompanied by a corresponding decrease in the Company’s issued and outstanding shares of common stock (the “Reverse Stock Split”). The common stock remains at a par value of $0.001. No changes were made to the number of authorized preferred shares of the Company, which remains at 10,000,000, none of which have been issued. The amendment to the Articles of Incorporation of the Company took effect on March 16, 2016. |
Transfer of Shares
Transfer of Shares | 9 Months Ended |
Sep. 30, 2017 | |
Transfer of Shares [Abstract] | |
Transfer of Shares | 8. Transfer of Shares On March 11, 2016, SkyPeople Juice International Holding (HK) Limited (“Skypeople HK”), a wholly owned subsidiary of SkyPeople Fruit Juice, Inc. (the “Company”) and a 99.78% owner of SkyPeople Juice Group Co., Ltd. (“Skypeople China”) entered into a Share Transfer Agreement and a Capital Contribution (the “Agreements”) with Shenzhen TianShunDa Equity Investment Fund Management Co., Ltd. (the “TSD”), a limited liability corporation registered in China. Skypeople HK incorporated Skypeople China in Shaanxi Province, China on March 13, 2012 and pursuant to the approval certificate and business license of Skypeople China, SkyPeople HK was required to contribute RMB 427,000,000 (approximately $65,698,308) and Hongke Xue, currently the Chairman of the Board of Directors of the Company and our Chief Executive Officer (“Xue”), was required to contribute RMB 1,000,000 (approximately $153,846) to Skypeople China, and Skypeople HK and Xue as a result would own 427,000,000 shares (99.78%) and 1,000,000 shares (0.22%) of Skypeople China, respectively. As of March 10, 2016, Skypeople HK had contributed RMB 314,190,900 (approximately $48,337,062) to Skypeople China but had not contributed the remaining RMB 112,809,100 (approximately $17,355,246) as the payment for 112,809,100 shares of Skypeople China. Pursuant to the Agreements, TSD shall acquire 112,809,100 shares of Skypeople China from Skypeople HK and shall make a total capital contribution of RMB 131,761,028.80 (approximately $20,270,928) to Skypeople China, which is calculated based upon 8 times of Skypeople China’s net profit per share for 2014 (about RMB 0.146 per share) multiplied by 112,809,100 shares. RMB 112,809,100 out of the RMB 131,761,028.80 (the “Capital Contributions”) shall be used as payment for outstanding capital contributions due to Skypeople China by Skypeople HK and the remaining RMB 18,951,928.80 (approximately $2,915,681) shall be used as additional capital contribution to Skypeople China and shall be deposited into Skypeople China’s capital surplus account. On March 18, 2016, TSD paid the full Capital Contributions to Skypeople China and the shares were transferred, resulting in TSD owning 112,809,100 shares, or 26.36%, of Skypeople China. On June 15, 2016, Hedetang Holdings Co., Ltd. (“Hedetang”), a wholly owned subsidiary of the Company, entered into a Share Transfer Agreement (the “Agreement”) with Shaanxi New Silk Road Kiwifruit Group Inc. (“NSR”), a limited liability corporation registered in China. Pursuant to the Agreement, NSR was to acquire 51% of the equity shares of Shaanxi Guoweiduomei Beverage Co, Limited, a wholly owned subsidiary of Hedetang (the “Shares”). The tentative total transfer price for the Shares was 300 million RMB (approximately $46 million). NSR was to pay the total transfer price to Hedetang within six months of the effective date of the Agreement. On July 5, 2016, Hedetang completed the registration of 51% of its shares in Shaanxi Guoweiduomei Beverage Co., Limited under the name of NSR with China’s State Administration for Industry and Commerce. Pursuant to the terms of the Agreement, the transferred shares were still under the control of Hedetang until it receives full payment from NSR. On January 20, 2017, the Company’s Board of Directors approved the termination of the Agreement with NSR because the local government authority had not approved the transaction contemplated thereby and the Company had not received the required payment within six months of the effective date of the Agreement. On January 26, 2017, Hedetang executed a Termination Agreement for the Share Transfer Agreement with NSR. Pursuant to the Termination Agreement, Hedetang agreed not to claim any compensation or penalty against NSR under the Agreement and NSR agreed to cooperate with Hedetang to complete the process to transfer share ownership back to the Hedetang within 60 days of the date of the Termination Agreement. On March 15, 2017, NSR transferred the share ownership back to Hedetang. |
Other Receivables
Other Receivables | 9 Months Ended |
Sep. 30, 2017 | |
Other Receivables [Abstract] | |
Other Receivables | 9. Other Receivables As of September 30, 2017, the balance of other receivables was $31,493,950, which mainly consisted of a deposit of approximately $30 million for the purchase of a kiwi orchard in Mei County. In April 2016, the Company signed a letter of intent with Mei County Kiwifruits Investment and Development Corporation to purchase 833.5 mu (approximately 137.3 acres) of kiwifruits orchard in Mei County. The purchase price will be determined by a third party valuation company appointed by both parties. As of the date of this report, the valuation has not been completed. The Company paid RMB 200 million (approximately $30 million) as a deposit (the “Deposit”) in the second quarter of 2016. The purchase is subject to government approval, approval by the Company’s Board of Directors and a definitive agreement negotiated and signed by the parties. As Mei County is in the process of governmental personnel change, the approval was delayed. Pursuant to the letter of intent, the Deposit shall be returned to the Company within 10 working days upon the request of the Company if the kiwifruits orchard cannot be transferred to the Company according to the schedule. The Company expects to complete the purchase process in the second quarter of 2018. As the transaction is not completed, the Company recorded this deposit as other receivables in its balance sheet. |
Deposit
Deposit | 9 Months Ended |
Sep. 30, 2017 | |
Deposit [Abstract] | |
Deposit | 10. Deposit As of September 30, 2017, the balance of deposits was $44,969,613, which mainly consisted of a balance of approximately $28.3 million for the leasing fee for the kiwifruits orchard in Mei County and a balance of approximately $15.4 million for the leasing fee for the orange orchard in Yidu city. On August 3, 2016, Shaanxi Guoweimei Kiwi Deep Processing Company, an indirectly wholly-owned subsidiary of the Company, signed a lease agreement for 20,000 mu (approximately 3,292 acres) of a kiwifruits orchard located in Mei County, Shaanxi Province, with the Di’ErPo Committee of Jinqu Village, Mei County, Shaanxi for a term of 30 years, from August 5, 2016 to August 4, 2046. The annual leasing fee is RMB 1,250 (approximately $189) per mu, and payment of 10 years’ of leasing fees shall be made on each of September 25, 2016, 2026 and 2036. The Company made a payment of RMB 250 million (approximately $36.2 million) for the first 10 years’ leasing fees on August 15, 2016, which is recorded as deposit in the Company’s balance sheet. The Company has amortized $1.9 million as expenses for the nine months ended September 30, 2017. On August 15, 2016, Hedetang Agricultural Plantations (Yidu) Co., Ltd., an indirectly wholly-owned subsidiary of the Company, signed a lease agreement for 8,000 mu (approximately 1,317 acres) of an orange orchard located in the city of Yidu, Hubei Province, with the Yidu Sichang Farmers Association, Hubei Province, for a term of 20 years, from September 22, 2016 to September 21, 2036. The annual leasing fee is RMB 2,000 (approximately $306) per mu, and payment of 10 years’ of leasing fees shall be made on each of September 25, 2016 and 2026. The Company made a payment of RMB 160 million (approximately $23.2 million) for the first 10 years’ of leasing fees on September 20, 2016, which is recorded as deposits in the Company’s balance sheet. The Company has amortized $1.7 million as expenses for the nine months ended September 30, 2017. |
Discontinued Operation
Discontinued Operation | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operation [Abstract] | |
Discontinued Operation | 11. Discontinued Operation The Company’s Huludao Wonder operation, a subsidiary which produces concentrated apple juice, suffered continued operating losses in the three fiscal years prior to 2016 and its cash flow was minimal for these three years. In December 2016, the Company established a winding-down plan to close this operation. Based on the restructuring plan and in accordance with EITF 03-13, the Company presented the operating results from Huludao Wonder as a discontinued operation, as the Company believed that no continued cash flow would be generated by the disposed component (Huludao Wonder) and that the Company would have no significant continuing involvement in the operation of the discontinued component. Management of the Company initiated a plan to sell the property located in Huludao in December 2016, and ceased the depreciation of the property in accordance with SFAS No. 144. In fiscal year 2016, the Company recorded an impairment loss of $2.4 million with respect to the concentrated fruit juice production equipment in Huludao Wonder. In accordance with the restructuring plan, the Company intends to transfer the concentrated fruit juice production equipment in Huludao Wonder to another subsidiary and to sell the land and facilities upon favorable circumstances. As the Company does not expect to sell the assets of Huludao Wonder in the near future, the assets were not recorded as assets held for sale as of September 30, 2017. The book value of the land usage right was $4,460,936 and the book value of the building was $15,848,879 as of September 30, 2017. The Company believes that the assets’ book value was lower than its fair value at such time, less the anticipated cost to sell such assets. As of September 30, 2017, there was an outstanding bank loan of $5.80 million owed by Huludao Wonder to a lending bank. Huludao Wonder has disputed the interest rate on this loan with the bank, and stopped payment of interest on this loan during 2016. The bank sued Huludao Wonder and asked Huludao Wonder to pay back the loan principal and the outstanding interest. As of the date of this report, the Company has not yet reached an agreement with the bank. The Company expects to pay back the outstanding principal and interest of this loan after the Huludao Wonder assets are sold. During the process of winding down the Company’s Huludao Wonder operation, the Company incurred general and administrative expenses of approximately $48,023 during the three months ended September 30, 2017, and approximately $96,708 during the nine months ended September 30, 2017. Loss from discontinued operations for the three and nine months ended September 30, 2017 and 2016 was as follows: For the Three Months For the nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) REVENUES $ - $ - $ - $ - COST OF SALES - - - - GROSS PROFIT - - - - OPERATING EXPENSES: General and administrative (45,410 ) - (142,118 ) - Selling expenses - - - - Total (45,410 ) - (142,118 ) - OTHER INCOME (EXPENSE) Interest expense (8 ) - (9 ) - Interest income - - 1 - Total - - - - Loss from discontinued operations before income tax (45,418 ) - (142,126 ) Income tax provision - - - - LOSS FROM DISCONTINUED OPERATIONS $ (45,418 ) $ - (142,126 ) - The loss from discontinued operations was $45,418 and $142,126 for the three months and nine months ended September 30, 2017, respectively. The Company does not provide a separate cash flow statement for the discontinued operations. The loss from discontinued operations was deemed a cash outflow from operating activities of the discontinued operations. The impact of this discontinued operation was considered immaterial when compared with the total revenues for the nine months ended September 30, 2017 and 2016, which were approximately $10.2 million and $26.3 million, respectively. The Company believes there will not be any future significant cash flows from the discontinued operation, as the outstanding accounts receivable and accounts payable are immaterial to the Company’s financial position and liquidity. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. Segment Reporting The Company operates in six segments: concentrated apple juice and apple aroma, concentrated kiwifruit juice and kiwifruit puree, concentrated pear juice, fruit juice beverages, fresh fruits and vegetables, and others. Our concentrated apple juice and apple aroma was primarily produced by the Company’s Huludao Wonder factory; concentrated pear juice is primarily produced by the Company’s Jiangyang factory. The Company’s Huludao Wonder operation suffered continued operating losses in the three fiscal years prior to 2016 and its cash flow was minimal for these three years. In December 2016, the Company established a winding-down plan to close this operation. The Company’s Yingkou factory in Liaoning also did not produce any concentrated apple juice in the past two years due to lower market demand on concentrated apple juice and heavy competition in the international market. The Company uses the same production line to manufacture both concentrated apple juice and concentrated pear juice. Shaanxi Province, where the factory of Jianyang factory is located, is rich in fresh apple and pear supplies. Jinagyang factory also produces concentrated apple juice. Concentrated kiwifruit juice and kiwifruit puree is primarily produced by the Company’s Qiyiwangguo factory, and fruit juice beverages are primarily produced by the Company’s Qiyiwangguo factory. The Company’s other products include fructose, concentrated turnjujube juice, and other byproducts, such as kiwifruit seeds. The production of other products is based on customers’ orders. The other products sales amount is currently small and unpredictable. Concentrated fruit juice is used as a basic ingredient for manufacturing juice drinks and as an additive to fruit wine and fruit jam, cosmetics and medicines. The Company sells its concentrated fruit juice to domestic customers and exports directly or via distributors. The Company believes that its main export markets are the United States, the European Union, South Korea, Russia and the Middle East. The Company sells its Hedetang branded bottled fruit beverages domestically, primarily to supermarkets in the PRC. The Company sells its fresh fruit and vegetables to supermarkets and wholesalers in the PRC. Some of these product segments might never individually meet the quantitative thresholds for determining reportable segments and we determine the reportable segments based on the discrete financial information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments. Since there is an overlap of services provided and products manufactured between different subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating expenses and asset information by segment are not presented. Segment profit represents the gross profit of each reportable segment. For the three months ended September 30, 2017 (in thousands): Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 1,122 $ 196 $ 26 $ 3,865 $ - 15 $ 5,224 Inter-segment loss (560 ) (12 ) (13 ) (195 ) - - (780 ) Revenue from external 562 184 13 3,670 - 15 4,444 Segment gross profit $ (30 ) $ 45 $ 1 $ (99 ) $ - 7 $ (76 ) For the three months ended September 30, 2016 (in thousands) Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 510 $ 108 $ 4,927 $ 6,652 $ - 628 $ 12,825 Inter-segment loss (162 ) (1 ) (30 ) (2,028 ) - (13 ) (2,234 ) Revenue from external customers 348 107 4,897 4,624 - 615 10,591 Segment gross profit $ 10 $ 4 $ 1,367 $ 1,360 $ - 324 $ 3,065 For the nine months ended September 30, 2017 (in thousands): Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits and vegetables Others Total Reportable segment revenue $ 2,637 $ 579 $ 1,797 $ 9,517 $ - 28 $ 14,558 Inter-segment loss (1,025 ) (84 ) (748 ) (2,521 ) - (1 ) (4,379 ) Revenue from external 1,612 495 1,049 6,996 - 27 10,179 Segment gross profit $ 2 $ 126 $ 148 $ 1,462 $ - 13 $ 1,751 For the nine months ended September 30, 2016 (in thousands) Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 14,188 $ 580 $ 7,182 $ 12,113 $ - 2,179 $ 36,242 Inter-segment loss (6,700 ) (27 ) (1,171 ) (2,030 ) - (57 ) (9,985 ) Revenue from external customers 7,488 552 6,011 10,083 - 2,122 26,257 Segment gross profit $ 375 $ 28 $ 1,587 $ 3,961 $ - 368 $ 6,319 The following table reconciles reportable segment profit to the Company’s condensed consolidated income before income tax provision for the three months ended September 30, 2017 and 2016: 2017 2016 Segment profit $ (75,877 ) $ 3,065,412 Unallocated amounts: Operating expenses (1,518,175 ) (2,117,197 ) Other income (expenses) 927,425 (753,6308 ) Income (loss) before tax provision $ (666,627 ) $ 194,854 |
Entry into a Material Definitiv
Entry into a Material Definitive Agreement | 9 Months Ended |
Sep. 30, 2017 | |
Entry into a Material Definitive Agreement [Abstract] | |
Entry into a Material Definitive Agreement | 13. Entry into a Material Definitive Agreement. On March 20, 2017, Hedetang Foods (China) Co. Ltd. (“Hedetang Foods (China)”) and Hedetang Farm Products Trading Market (Mei County) Co. Ltd. (“Trading Market Mei County”), two wholly-owned subsidiaries of the Company, entered into a Cooperation Framework Agreement of the Spot Trading Company (the “Agreement”) with Xi’an Taizhan Financial Management Co., Ltd. (“Taizhan”). Pursuant to the Agreement, Hedetang Foods (China), Trading Market Mei County and Taizhan will jointly establish a new company currently named as China Agricultural Commodity Trading Market Co., Ltd. (“China Agricultural Commodity Trading Center”) in Mei County, Shaanxi Province, China. The total registered capital for China Agricultural Commodity Trading Center will be RMB 50 million (approximately $7.35 million). Hedetang Foods (China) agreed to contribute RMB 17.50 million (approximately $2.57 million), Trading Market Mei County agreed to contribute RMB 15 million (approximately $2.21 million), and Taizhan agreed to contribute RMB 17.50 million (approximately $2.57 million) in capital contributions to China Agricultural Commodity Trading Center. All capital contributions to China Agricultural Commodity Trading Center shall be completed before March 20, 2037. Each shareholder of China Agricultural Commodity Trading Center shall be able to enjoy the profits and assume the losses of China Agricultural Commodity Trading Center based upon the percentages of their respective capital contributions. As of the date of this report, the new company has not yet been registered. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Litigation In April 2015, China Cinda Asset Management Co., Ltd. Shaanxi Branch (“Cinda Shaanxi Branch”) filed two enforcement proceedings with Xi’an Intermediate People’s Court (the “Court”) against the Company for alleged defaults pursuant to guarantees by the Company to its suppliers for a total amount of RMB 39,596,250, or approximately $6.0 million. In September 2014, two long term suppliers of pear, mulberry, and kiwi fruits to the Company requested the Company to provide guarantees for their loans with Cinda Shaanxi Branch. Considering the long term business relationship and to ensure the timely supply of raw materials, the Company agreed to provide guarantees upon the value of the raw materials supplied to the Company. Because Cinda Shaanxi Branch is not a bank authorized to provide loans, it eventually provided financing to the two suppliers through purchase of accounts receivables of the two suppliers with the Company. In July, 2014, the parties entered into two agreements – Accounts Receivables Purchase and Debt Restructure Agreement, and Guarantee Agreements for Accounts Receivables Purchase and Debt Restructure. Pursuant to the agreements, Cinda Shaanxi Branch agreed to provide a RMB 100 million credit line on a rolling basis to the two suppliers and the Company agreed to pay its accounts payables to the two suppliers directly to Cinda Shaanxi Branch and provided guarantees for the two suppliers. In April 2015, Cinda Shaanxi Branch stopped providing financing to the two suppliers and the two suppliers were unable to continue the supply of raw materials to the Company. Consequently, the Company stopped making any payment to Cinda Shaanxi Branch. The Company has responded to the Court and taken the position that the financings under the agreements are essentially the loans from Cinda Shaanxi Branch to the two suppliers, and because Cinda Shaanxi Branch does not have permits to make loans in China, the agreements are invalid, void and have no legal effect from the beginning. Therefore, the Company has no obligations to repay the debts owed by the two suppliers to Cinda Shaanxi Branch. Upon the Court’s suggestion, parties agreed to a settlement discussion in April. As a part of the settlement discussion, on April 18, 2017, the Company withdrew its non-enforcement request with the Court without prejudice. Both parties are still in the process of settlement negotiations. If the parties cannot reach a settlement agreement, the Company has the right to refile the non-enforcement request with the Court. As the Company may still be liable for this loan, the Company recorded expenses and liability of $6.0 million as the result of these two enforcement proceedings in the third quarter of 2017. Between October, 2013 and January, 2014, Xuzhou Jinkaifeng Glass Co. Ltd. (“JKF”) supplied glass bottles to SkyPeople China. SkyPeople China believed the glass bottles supplied by JKF had quality issues and didn’t pay for the bottles delivered. In November, 2016, JKF filed a lawsuit against SkyPeople China with Xuzhou Tongshan District People’s Court. On July 27, 2017, SkyPeople China received judgment from Xuzhou Tongshan District People’s Court that SkyPeople China shall pay JKF RMB 365,292 (approximately $55,040) for the glass bottles. SkyPeople China currently is in discussion with JKF on the payment terms and final amount in connection with the enforcement of the judgment. The Company recorded expenses and liability of $55 thousand in the third quarter of 2017. In April 2015, SkyPeople China entered into a loan agreement with Haanxi Fangtian Decoration Co. Ltd. (“Fangtian”). Pursuant to the loan agreement, SkyPeople China borrowed RMB 3.5 million (approximately $527 ,355 Shaanxi Hengtong Development Co. Ltd. (“Hengtong”) is a coal supplier to SkyPeople China’s Jingyang Branch (“SkyPeople Jingyang”). In November, 2016, Hengtong filed lawsuit against SkyPeople Jingyang for unpaid coal and interest at a total of RMB 3,133,916. On March 13, 2017, SkyPeople Jingyang received judgment from Jingyang County People’s Court ordering SkyPeople Jingyang to repay RMB 1.78 million (approximately $268,788) to Hengtong. SkyPeople Jingyang appealed the judgement to Xianyang Intermediate People’s Court, and on August 29, 2017, Xiangyang Intermediate Court affirmed the lower court’s decision. SkyPeople Jingyang currently is in discussion with Hengtong on payment terms and final amount. The Company recorded expenses and liability of $269 thousand in the third quarter of 2017 in relation to this judgement. In September 2016, the Suizhong Branch of Huludao Banking Co. Ltd. (“Suizhong Branch”) filed a lawsuit with Huludao Intermediate People’s Court (the “Court”) against the Company’s indirectly wholly-owned subsidiary Huludao Wonder Fruit Co., Ltd. (“Wonder Fruit”) and requested that Wonder Fruit repay a 40 million RMB (approximately $6.35 million) bank loan, plus interest. The loan became due on its maturity date of December 9, 2016. On December 19, 2016, the Court accepted the case. The Company has been disputing the interest rate of the loan with Suizhong Branch, and has not repaid the loan to date. Wonder Fruit believes the interest charged by Suizhong Branch is 100% higher than the base rate set by People’s Bank of China and is not in consistent with China People’s Bank’s base interest and floating rate. The Court has temporarily frozen the land and real property of Wonder Fruit that were pledged as guarantee for the loan from being transferred to any third-party, but the freeze does not limit or affect the use of these properties by Wonder Fruit for its business. Wonder Fruit is currently in discussions with the Suizhong Branch on repayment of the bank loan and a reduction of the interest due thereon. From time to time we may be a party to various litigation proceedings arising in the ordinary course of our business, none of which, in the opinion of management, is likely to have a material adverse effect on our financial condition or results of operations. |
Acquisition of a Business
Acquisition of a Business | 9 Months Ended |
Sep. 30, 2017 | |
Acquisition of a Business [Abstract] | |
Acquisition of a Business | 15. Acquisition of a Business On December 2, 2016, the Company’s wholly owned subsidiary, Xi’an Cornucopia International Co., Ltd. (“Cornucopia”) entered an Equity Investment Agreement (the “Agreement”) with two shareholders of Shaanxi Heying Trading Co. Ltd (“Heying” and formerly known as Xi’an Yingxin Business Consulting Co., Ltd.) who own 100% of Heying. The main business of Heying includes the sales of pre-packaged food and bulk food; import and export of goods and technology; food technology research and development; business management and consulting, and corporate planning services. Under the terms of the Agreement, the Company agreed to increase Heying’s registered capital from RMB 50,000 (approximately $7,380) to RMB 10 million (approximately $1.5 million) to satisfy its future operating cash flow needs, and Heying agreed to issue new shares to Cornucopia so that it will hold 99.5% of the issued and outstanding shares of Heying. The increased registered capital can be contributed before December 31, 2046. As Heying did not finish the change of registration process with State Administration of Industry and Commerce (“SAIC”) and the local Tax Bureau in China after the Agreement was signed, Heying’s original Board of Directors was not changed and the Company did not gain control over Heying at that time. After Heying changed the registration with SAIC and the local Tax Bureau in China, on April 3, 2017, the parties signed a supplement agreement to the Agreement to confirm that Cornucopia is the 99.5% shareholder of Heying and enjoys all the rights and benefits as the 99.5% shareholder, effective on April 3, 2017. As a result of the contractual arrangements, Cornucopia became the 99.5% beneficiary and actual owner of Heying. Accordingly, the Company adopted the provisions of FIN 46R and consolidated the financial results of Heying from April 1, 2017. The Company used the purchase method to consolidate Heying with the current assets and liabilities recorded at fair value. The fair value of the acquired net assets of Heying was RMB 15,260 (approximately $2,212). The following table summarizes the fair value of Heying’s assets and liabilities as of April 1, 2017 (based on the exchange rate of April 1, 2017): ASSETS Cash $ 4,274 Accounts receivable, net 1,015 TOTAL ASSETS $ 5,289 LIABILITIES Accounts payable $ 3,077 TOTAL LIABILITIES $ 3,077 NET ASSETS $ 2,212 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Event [Abstract] | |
Subsequent event | 16. Subsequent event On November 6, 2017, the Company filed an amended preliminary Schedule 14A (the “Proxy”) to solicit shareholders’ proxies for a special meeting of the Company’s shareholders in connection with proposals to (i) spin-off the Company’s wholly-owned subsidiaries, SkyPeople Foods Holdings Limited (BVI) (“SkyPeople BVI”) and FullMart Holdings Limited (BVI) (“FullMart”), through a pro rata distribution of the ordinary shares of each of SkyPeople BVI and FullMart to holders of the Company’s common stock at the close of business on October 31, 2017, the record date; (ii) to approve an amendment to the Company’s Second Amended and Restated Articles of Incorporation, which would increase the amount of authorized shares of common stock, par value $0.001 per share, of the Company from 8,333,333 to 60,000,000; (iii) to adopt and approve the Future FinTech Group Inc. 2017 Omnibus Equity Plan; (iv) to approve the issuance of an aggregate 7,111,599 shares of the Company’s common stock pursuant to certain Creditor’s Rights Transfer Agreements between a wholly owned subsidiary of the Company and sellers of such creditor’s rights; and (v) to approve the issuance of an aggregate 11,362,159 shares of the Company’s common stock pursuant to a Share Purchase Agreement between the Company and a certain investor. The Proxy moved the consideration of the foregoing proposals from the 2017 Annual Meeting of the Company’s shareholders to a special meeting proposed to be held on January 30, 2018. On November 2, 2017, a wholly-owned indirect subsidiary of the Company, Hedetang Foods (China) Co., Ltd. (“Hedetang”), entered into a series of Creditor’s Rights Transfer Agreements (collectively, the “Acquisition Agreements”) with each of Shaanxi Chunlv Ecological Agriculture Co. Ltd., Shaanxi Boai Medical Technology Development Co., Ltd., and Shaanxi Fu Chen Venture Capital Management Co. Ltd. (collectively, the “Sellers”). Pursuant to the Acquisition Agreements, Hedetang agreed to purchase certain creditor’s rights of associated with companies located in the PRC for an aggregate purchase price of RMB 181,006,980 (approximately $27,344,096), of which RMB 108,604,188 (approximately $16,437,248.50) will be paid in cash and RMB 72,402,792 (approximately $10,937,638.50) will be paid in shares of common stock of the Company (the “Share Payment”) based on the average of the closing prices of Future FinTech’s common stock over the five trading days preceding the date of the Acquisition Agreements. The Share Payment is contingent on Future FinTech receiving shareholder approval at a Special Shareholders Meeting to increase its authorized common stock to 60,000,000 shares and to approve the Share Payment issuance under Acquisition Agreements. The Special Shareholders Meeting is expected to be held on January 30, 2018. For the details of Acquisition Agreements, see the Company’s Current Report on Form 8-K filed with SEC on November 6, 2017. In connection with the Acquisition Agreements and to provide funding for their consummation, on November 3, 2017, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with Mr. Zeyao Xue (“Xue”) pursuant to which Future FinTech agreed to sell 11,362,159 shares of its common stock (the “Shares”) to Xue for an aggregate purchase price of $16,437,248.50. The per share price for the Shares was determined using the average closing price quoted on the NASDAQ Global Market for the common stock of the Company over the three (3) trading days prior to the date of the Share Purchase Agreement (the “Purchase Price”). Under the terms of the Share Purchase Agreement, the Purchase Price may be adjusted upward if, on the third business day following the later of (i) the public disclosure of the execution of the Acquisition Agreements and (ii) the Company’s filing of its Form 10-Q for the quarter ended September 30, 2017 (in each case, counting the date of disclosure as the first such day, provided that the applicable public disclosure is made prior to the close of trading on such date), the per share closing price of the Company’s common stock quoted on the NASDAQ Global Market (the “Disclosure Price”) is higher than the Purchase Price, in which case the Purchase Price shall be adjusted to the Disclosure Price (the “Adjusted Price”), and Xue shall pay to the Future FinTech an amount equal to (x) the difference between the Purchase Price and the Adjusted Price (y) multiplied by the number of Shares (the “Additional Amount”). If the Disclosure Price is lower than Purchase Price, no adjustment of the Purchase Price shall be made. Xue currently beneficially owns 2,337,155 shares, or 45.2% of Future FinTech’s issued and outstanding common stock and Mr. Yongke Xue, a member of the Board of Directors of Future FinTech, is Xue’s father. The consummation of the Share Purchase Agreement is contingent on Future FinTech receiving shareholder approval at a Special Shareholders Meeting to increase its authorized common stock to 60,000,000 shares and the approval of Shares issuance under the Share Purchase Agreement by the shareholders of the Company. For the details of Share Purchase Agreement, see the Company’s Current Report on Form 8-K filed with SEC on November 6, 2017. |
Business Description and Sign22
Business Description and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Business Description and Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with U.S. GAAP. This basis differs from that used in the statutory accounts of SkyPeople (China), Hedetang Food (China), Hedetang Holding, Huludao Wonder, Xi’an Cornucopia, Xi’an Hedetang Juice Beverages, Yingkou, Shaanxi Qiyiwangguo, Hedetang E-commerce, SkyPeople Suizhong, Shaanxi Fruitee Fun, Food Industry Yidu, Food Industry Jingyang, Guo Wei Mei, Agriculture Plantation Yidu, Trading Market Yidu, and Trading Market Mei County, which were prepared in accordance with the accounting principles and relevant financial regulations applicable to enterprises in the PRC. All necessary adjustments have been made to present the financial statements in accordance with U.S. GAAP. |
Uses of estimates in the preparation of financial statements | Uses of estimates in the preparation of financial statements The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling amounts billed to customers in related sales transactions are included in sales revenues and shipping expenses incurred by the Company are reported as a component of selling expenses. The shipping and handling expenses of $1,246 and $409,294 for the three months ended September 30, 2017 and 2016, respectively; and $327,097 and $451,331 for the nine months ended September 30, 2017 and 2016, respectively; are reported in the Consolidated Statements of Income and Comprehensive Income (Loss) as a component of selling expenses. |
Leases | Leases Leases are reviewed and classified as capital or operating at their inception in accordance with ASC Topic 840, Accounting for Leases |
Earnings Per Share (''EPS'') | Earnings Per Share (“EPS”) The Company adopted ASC Topic 215, Statement of Shareholder Equity |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB issued a new accounting standard update on simplifying the accounting for goodwill impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. This guidance will be effective for interim or annual goodwill impairment tests in fiscal years beginning after December 15, 2019 and will be applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. We are evaluating the impact of adopting this amendment to our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business,” which clarifies the definition of a business in ASC 805. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. Currently, there is no impact to our consolidated financial statements and related disclosures, but we will adopt on January 1, 2018 for any business combinations and will consider adopting early for any acquisitions prior to January 1, 2018. In May 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting”, which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which we would be required to apply modification accounting under ASC 718. Specifically, we would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The guidance is effective for annual reporting periods, including interim period within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. We are currently evaluating the impact the standard may have on our consolidated financial statements and related disclosures should we have a modification to our share-based payment awards in the future. In August 2017, the FASB issued ASU 2017-12. ASU 2017-12 amends the hedge accounting model in Accounting Standards Codification (“ASC”) 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. ASU 2017-12 expands an entity’s ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The guidance in ASU 2017-12 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years, and is effective for the Company beginning July 1, 2019. Early adoption is permitted in any interim period or fiscal year before the effective date. Adoption of ASU 2017-12 did not have any other material effect on the results of operations, financial position or cash flows of the Company. There were no other recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2017, compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 that are of significance or potential significance to us. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventories [Abstract] | |
Summary of inventories by major categories | September 30, December 31, 2016 (Unaudited) (Audited) Raw materials and packaging $ 3,132,001 $ 1,107,857 Finished goods 1,104,013 1,933,443 Inventories $ 4,236,014 $ 3,041,300 |
Discontinued Operation (Tables)
Discontinued Operation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operation [Abstract] | |
Schedule of loss from discontinued operations | For the Three Months For the nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) REVENUES $ - $ - $ - $ - COST OF SALES - - - - GROSS PROFIT - - - - OPERATING EXPENSES: General and administrative (45,410 ) - (142,118 ) - Selling expenses - - - - Total (45,410 ) - (142,118 ) - OTHER INCOME (EXPENSE) Interest expense (8 ) - (9 ) - Interest income - - 1 - Total - - - - Loss from discontinued operations before income tax (45,418 ) - (142,126 ) Income tax provision - - - - LOSS FROM DISCONTINUED OPERATIONS $ (45,418 ) $ - (142,126 ) - |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment profit representing the gross profit | For the three months ended September 30, 2017 (in thousands): Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 1,122 $ 196 $ 26 $ 3,865 $ - 15 $ 5,224 Inter-segment loss (560 ) (12 ) (13 ) (195 ) - - (780 ) Revenue from external 562 184 13 3,670 - 15 4,444 Segment gross profit $ (30 ) $ 45 $ 1 $ (99 ) $ - 7 $ (76 ) For the three months ended September 30, 2016 (in thousands) Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 510 $ 108 $ 4,927 $ 6,652 $ - 628 $ 12,825 Inter-segment loss (162 ) (1 ) (30 ) (2,028 ) - (13 ) (2,234 ) Revenue from external customers 348 107 4,897 4,624 - 615 10,591 Segment gross profit $ 10 $ 4 $ 1,367 $ 1,360 $ - 324 $ 3,065 For the nine months ended September 30, 2017 (in thousands): Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits and vegetables Others Total Reportable segment revenue $ 2,637 $ 579 $ 1,797 $ 9,517 $ - 28 $ 14,558 Inter-segment loss (1,025 ) (84 ) (748 ) (2,521 ) - (1 ) (4,379 ) Revenue from external 1,612 495 1,049 6,996 - 27 10,179 Segment gross profit $ 2 $ 126 $ 148 $ 1,462 $ - 13 $ 1,751 For the nine months ended September 30, 2016 (in thousands) Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 14,188 $ 580 $ 7,182 $ 12,113 $ - 2,179 $ 36,242 Inter-segment loss (6,700 ) (27 ) (1,171 ) (2,030 ) - (57 ) (9,985 ) Revenue from external customers 7,488 552 6,011 10,083 - 2,122 26,257 Segment gross profit $ 375 $ 28 $ 1,587 $ 3,961 $ - 368 $ 6,319 |
Schedule of reconciles reportable segment profit | 2017 2016 Segment profit $ (75,877 ) $ 3,065,412 Unallocated amounts: Operating expenses (1,518,175 ) (2,117,197 ) Other income (expenses) 927,425 (753,6308 ) Income (loss) before tax provision $ (666,627 ) $ 194,854 |
Acquisition of a Business (Tabl
Acquisition of a Business (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Acquisition of a Business [Abstract] | |
Summarizes the fair value of assets and liabilities | ASSETS Cash $ 4,274 Accounts receivable, net 1,015 TOTAL ASSETS $ 5,289 LIABILITIES Accounts payable $ 3,077 TOTAL LIABILITIES $ 3,077 NET ASSETS $ 2,212 |
Business Description and Sign27
Business Description and Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | May 18, 2016 | Feb. 18, 2013 | |
Business Description and Significant Accounting Policies (Textual) | ||||||
Shipping and handling expenses | $ 1,246 | $ 409,294 | $ 327,097 | $ 451,331 | ||
Equity interest, ownership percentage | 12.90% | |||||
Xi'an Qinmei Food Co., Ltd. [Member] | ||||||
Business Description and Significant Accounting Policies (Textual) | ||||||
Equity interest, ownership percentage | 8.85% | 8.85% | ||||
Hedetang Foods (China) Co., Ltd. [Member] | ||||||
Business Description and Significant Accounting Policies (Textual) | ||||||
Equity interest, ownership percentage | 100.00% |
Inventories (Details)
Inventories (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Raw materials and packaging | $ 3,132,001 | $ 1,107,857 |
Finished goods | 1,104,013 | 1,933,443 |
Inventories | $ 4,236,014 | $ 3,041,300 |
Related Party Transaction (Deta
Related Party Transaction (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 16, 2015 | Feb. 28, 2014 | Feb. 18, 2013 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2013 | Dec. 31, 2016 | |
Related Party Transaction (Textual) | |||||||
Equity interest, ownership percentage | 12.90% | ||||||
Common stock shares related share purchase agreement | 5,321,600 | ||||||
Common stock price related share purchase agreement | $ 7,982,400 | ||||||
Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. [Member] | |||||||
Related Party Transaction (Textual) | |||||||
Fruit beverage sales | $ 58,972 | $ 102,423 | |||||
Accounts receivable balances | $ 0 | $ 308,304 | |||||
Skypeople International Holdings Group Limited [Member] | |||||||
Related Party Transaction (Textual) | |||||||
Equity interest, ownership percentage | 50.20% | ||||||
Principal amount for unsecured term loan | $ 8,000,000 | ||||||
Interest rate for unsecured term loan | 6.00% | ||||||
Amount received from lender | $ 8,000,000 | ||||||
Unsecured term loan maturity, description | Both parties extended this loan for another two years under the original terms of the agreement. | The Lender agreed to extend to the Company a one-year unsecured term loan. | |||||
Chairman [Member] | |||||||
Related Party Transaction (Textual) | |||||||
Equity interest, ownership percentage | 80.00% | ||||||
CEO [Member] | |||||||
Related Party Transaction (Textual) | |||||||
Equity interest, ownership percentage | 9.40% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | |
Sep. 30, 2017CustomersSuppliers | Sep. 30, 2016CustomersSuppliers | |
Sales [Member] | Customers [Member] | ||
Concentrations (Textual) | ||
Number of customers | Customers | 5 | 5 |
Concentration risk, percentage | 4.00% | 37.00% |
Concentration risk, description | There was no single customer representing over 10% of total sales. | There was no single customer representing over 10% of total sales. |
Purchases [Member] | One supplier [Member] | ||
Concentrations (Textual) | ||
Number of suppliers | Suppliers | 1 | 1 |
Concentration risk, percentage | 11.00% | 66.00% |
Issuance of Common Stock and 31
Issuance of Common Stock and Warrants (Details) - USD ($) | Apr. 12, 2017 | Mar. 29, 2017 | Feb. 28, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Issuance of Common Stock and Warrants (Textual) | |||||||
Unrestricted common stock shares, issued | 862,097 | ||||||
Purchase price per share | $ 3.10 | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Gross proceeds purchase of shares | $ 2,672,500 | $ 4,880,921 | $ 16,377,868 | ||||
Warrant exercise price | $ 5.20 | $ 5.20 | |||||
Purchase of common stock percentage | 4.00% | ||||||
Omnibus Equity Plan [Member] | |||||||
Issuance of Common Stock and Warrants (Textual) | |||||||
Unrestricted common stock shares, issued | 250,000 | 250,000 | |||||
Expenses under equity plan | $ 250 | ||||||
Common stock, par value | $ 0.001 | ||||||
2011 Stock Incentive Plan [Member] | |||||||
Issuance of Common Stock and Warrants (Textual) | |||||||
Options issued to purchase of common stock | 62,500 | ||||||
Fair value of options to purchase common stock | $ 62,500 | ||||||
Exercise price of stock options granted | $ 223,375 | ||||||
Fair value of options issuable, per share | $ 3.57 | ||||||
Stock-based compensation expense | $ 223,375 |
Share Split (Details)
Share Split (Details) - $ / shares | Mar. 10, 2016 | Sep. 30, 2017 | Apr. 12, 2017 | Dec. 31, 2016 |
Share Split (Textual) | ||||
Common stock, shares authorized | 66,666,666 | 8,333,333 | 8,333,333 | |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | ||||
Common Stock [Member] | ||||
Share Split (Textual) | ||||
Reverse stock split, description | The Company authorized and approved a 1-for-8 reverse stock split. | |||
Common stock, par value | $ 0.001 | |||
Preferred stock, shares authorized | 10,000,000 | |||
Preferred stock, shares issued |
Transfer of Shares (Details)
Transfer of Shares (Details) | Mar. 10, 2016USD ($)shares | Mar. 10, 2016CNY (¥)shares | Mar. 13, 2012USD ($)shares | Sep. 30, 2017USD ($)shares | Sep. 30, 2017CNY (¥)shares | Jul. 05, 2016 | Jun. 15, 2016USD ($) | Jun. 15, 2016CNY (¥) | Mar. 18, 2016USD ($) | Mar. 11, 2016 | Mar. 10, 2016CNY (¥) | Dec. 31, 2014¥ / shares | Feb. 18, 2013 | Mar. 13, 2012CNY (¥) |
Transfer of Shares (Textual) | ||||||||||||||
Equity interest, ownership percentage | 12.90% | |||||||||||||
Hongke Xue [Member] | ||||||||||||||
Transfer of Shares (Textual) | ||||||||||||||
Equity interest, ownership percentage | 0.22% | 0.22% | ||||||||||||
Contribute to related party | $ 153,846 | ¥ 1,000,000 | ||||||||||||
Contribute to related party, shares | 1,000,000 | |||||||||||||
Skypeople HK [Member] | ||||||||||||||
Transfer of Shares (Textual) | ||||||||||||||
Equity interest, ownership percentage | 99.78% | 99.78% | 99.78% | |||||||||||
Contribute to related party | $ 48,337,062 | $ 65,698,308 | ¥ 314,190,900 | ¥ 427,000,000 | ||||||||||
Contribute to related party, shares | 427,000,000 | |||||||||||||
Skypeople China [Member] | ||||||||||||||
Transfer of Shares (Textual) | ||||||||||||||
Due to related party not contributed | $ 17,355,246 | ¥ 112,809,100 | ||||||||||||
Due to related party not contributed, shares | 112,809,100 | 112,809,100 | ||||||||||||
TSD [Member] | ||||||||||||||
Transfer of Shares (Textual) | ||||||||||||||
Equity interest, ownership percentage | 26.36% | |||||||||||||
Contribute to related party | $ | $ 112,809,100 | |||||||||||||
Acquisition share price | ¥ / shares | ¥ 0.146 | |||||||||||||
Acquisition of shares | 112,809,100 | 112,809,100 | ||||||||||||
Acquisition of value | $ 20,270,928 | ¥ 131,761,028.80 | ||||||||||||
Capital contributions, description | RMB 112,809,100 out of the RMB 131,761,028.80 (the "Capital Contributions") shall be used as payment for outstanding capital contributions due to Skypeople China by Skypeople HK | RMB 112,809,100 out of the RMB 131,761,028.80 (the "Capital Contributions") shall be used as payment for outstanding capital contributions due to Skypeople China by Skypeople HK | ||||||||||||
Additional capital contribution, description | RMB 18,951,928.80 (approximately $2,915,681) shall be used as additional capital contribution to Skypeople China and shall be deposited into Skypeople China's capital surplus account. | RMB 18,951,928.80 (approximately $2,915,681) shall be used as additional capital contribution to Skypeople China and shall be deposited into Skypeople China's capital surplus account. | ||||||||||||
Shaanxi Guoweiduomei Beverage Co, Limited [Member] | ||||||||||||||
Transfer of Shares (Textual) | ||||||||||||||
Equity interest, ownership percentage | 51.00% | 51.00% | 51.00% | |||||||||||
Contribute to related party | $ 46,000,000 | ¥ 300,000,000 |
Other Receivables (Details)
Other Receivables (Details) ¥ in Millions | 1 Months Ended | ||||
Apr. 30, 2016 | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | |
Other Receivables (Textual) | |||||
Other receivables | $ 31,493,950 | $ 28,417,194 | |||
Deposits | 44,969,613 | $ 43,867,228 | |||
Kiwifruits orchard [Member] | |||||
Other Receivables (Textual) | |||||
Deposits | $ 30,000,000 | ||||
Mei County Kiwifruits Investment and Development Corporation [Member] | |||||
Other Receivables (Textual) | |||||
Deposits | $ 30,000,000 | ¥ 200 | |||
Description of purchase price | The Company signed a letter of intent with Mei County Kiwifruits Investment and Development Corporation to purchase 833.5 mu (approximately 137.3 acres) of kiwifruits orchard in Mei County. |
Deposit (Details)
Deposit (Details) | Aug. 03, 2016USD ($) | Aug. 03, 2016CNY (¥) | Aug. 15, 2016USD ($) | Aug. 15, 2016CNY (¥) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Deposit (Textual) | ||||||
Balance of deposits | $ 44,969,613 | $ 43,867,228 | ||||
Payment of leasing fees | $ 36,200,000 | ¥ 250,000,000 | $ 23,200,000 | ¥ 160,000,000 | ||
Lease agreement, description | Shaanxi Guoweimei Kiwi Deep Processing Company, an indirectly wholly-owned subsidiary of the Company, signed a lease agreement for 20,000 mu (approximately 3,292 acres) of a kiwifruits orchard. | Shaanxi Guoweimei Kiwi Deep Processing Company, an indirectly wholly-owned subsidiary of the Company, signed a lease agreement for 20,000 mu (approximately 3,292 acres) of a kiwifruits orchard. | Hedetang Agricultural Plantations (Yidu) Co., Ltd., an indirectly wholly-owned subsidiary of the Company, signed a lease agreement for 8,000 mu (approximately 1,317 acres) of an orange orchard. | Hedetang Agricultural Plantations (Yidu) Co., Ltd., an indirectly wholly-owned subsidiary of the Company, signed a lease agreement for 8,000 mu (approximately 1,317 acres) of an orange orchard. | ||
Term of lease agreement | 30 years | 30 years | 20 years | 20 years | ||
Annual leasing fee | $ 189 | ¥ 1,250 | $ 306 | ¥ 2,000 | ||
Term of leasing fees | 10 years | 10 years | 10 years | 10 years | ||
Shaanxi Guoweimei Kiwi Deep Processing Company [Member] | ||||||
Deposit (Textual) | ||||||
Amortization expense | 1,900,000 | |||||
Hedetang Agricultural Plantations (Yidu) Co., Ltd [Member] | ||||||
Deposit (Textual) | ||||||
Amortization expense | 1,700,000 | |||||
Kiwifruits Orchard In Mei County [Member] | ||||||
Deposit (Textual) | ||||||
Payment of leasing fees | 28,300,000 | |||||
Orange Orchard In Yidu City [Member] | ||||||
Deposit (Textual) | ||||||
Payment of leasing fees | $ 15,400,000 |
Discontinued Operation (Details
Discontinued Operation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Discontinued Operation [Abstract] | ||||
REVENUES | ||||
COST OF SALES | ||||
GROSS PROFIT | ||||
OPERATING EXPENSES: | ||||
General and administrative | (45,410) | (142,118) | ||
Selling expenses | ||||
Total | (45,410) | (142,118) | ||
OTHER INCOME (EXPENSE) | ||||
Interest expense | (8) | (9) | ||
Interest income | 1 | |||
Total | ||||
Loss from discontinued operations before income tax | (45,418) | (142,126) | ||
Income tax provision | ||||
LOSS FROM DISCONTINUED OPERATIONS | $ (45,418) | $ (142,126) |
Discontinued Operation (Detai37
Discontinued Operation (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Discontinued Operation (Textual) | |||||
Impairment loss | $ 2,400,000 | ||||
General and administrative | $ 45,410 | $ 142,118 | |||
Loss from discontinued operations | (45,418) | (142,126) | |||
Total revenues | |||||
Outstanding bank loan | 5,800,000 | 5,800,000 | |||
Land usage right [Member] | |||||
Discontinued Operation (Textual) | |||||
Book value of assets held for sale | 4,460,936 | 4,460,936 | |||
Building [Member] | |||||
Discontinued Operation (Textual) | |||||
Book value of assets held for sale | $ 15,848,879 | 15,848,879 | |||
Immaterial [Member] | |||||
Discontinued Operation (Textual) | |||||
Total revenues | $ 10,200,000 | $ 26,300,000 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reportable segment revenue | $ 5,224 | $ 12,825 | $ 14,558 | $ 36,242 |
Inter-segment loss | (780) | (2,234) | (4,379) | (9,985) |
Revenue from external customers | 4,444 | 10,591 | 10,179 | 26,257 |
Segment gross profit | (76) | 3,065 | 1,751 | 6,319 |
Concentrated apple juice and apple aroma [Member] | ||||
Reportable segment revenue | 1,122 | 510 | 2,637 | 14,188 |
Inter-segment loss | (560) | (162) | (1,025) | (6,700) |
Revenue from external customers | 562 | 348 | 1,612 | 7,488 |
Segment gross profit | (30) | 10 | 2 | 375 |
Concentrated kiwifruit juice and kiwifruit puree [Member] | ||||
Reportable segment revenue | 196 | 108 | 579 | 580 |
Inter-segment loss | (12) | (1) | (84) | (27) |
Revenue from external customers | 184 | 107 | 495 | 552 |
Segment gross profit | 45 | 4 | 126 | 28 |
Concentrated pear juice [Member] | ||||
Reportable segment revenue | 26 | 4,927 | 1,797 | 7,182 |
Inter-segment loss | (13) | (30) | (748) | (1,171) |
Revenue from external customers | 13 | 4,897 | 1,049 | 6,011 |
Segment gross profit | 1 | 1,367 | 148 | 1,587 |
Fruit juice beverages [Member] | ||||
Reportable segment revenue | 3,865 | 6,652 | 9,517 | 12,113 |
Inter-segment loss | (195) | (2,028) | (2,521) | (2,030) |
Revenue from external customers | 3,670 | 4,624 | 6,996 | 10,083 |
Segment gross profit | (99) | 1,360 | 1,462 | 3,961 |
Fresh fruits and vegetables [Member] | ||||
Reportable segment revenue | ||||
Inter-segment loss | ||||
Revenue from external customers | ||||
Segment gross profit | ||||
Others [Member] | ||||
Reportable segment revenue | 15 | 628 | 28 | 2,179 |
Inter-segment loss | (13) | (1) | (57) | |
Revenue from external customers | 15 | 615 | 27 | 2,122 |
Segment gross profit | $ 7 | $ 324 | $ 13 | $ 368 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information | ||||
Segment profit | $ (75,877) | $ 3,065,412 | $ 1,751,480 | $ 6,319,208 |
Unallocated amounts: | ||||
Operating expenses | (8,882,394) | (2,117,197) | (15,320,693) | (5,416,084) |
Other income (expenses) | 2,698,679 | (753,630) | 2,276,664 | (993,443) |
Income (loss) before tax provision | $ (6,259,592) | $ 194,585 | $ (11,292,549) | $ (90,319) |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting (Textual) | |
Number of reportable segments | 6 |
Entry into a Material Definit41
Entry into a Material Definitive Agreement (Details) - Sep. 30, 2017 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
China Agricultural Commodity Trading Center [Member] | ||
Entry into a Material Definitive Agreement (Textual) | ||
Total registered capital | $ 7,350 | ¥ 50,000 |
Hedetang Foods (China) [Member] | ||
Entry into a Material Definitive Agreement (Textual) | ||
Total registered capital | 2,570 | 17,500 |
Trading Market Mei County [Member] | ||
Entry into a Material Definitive Agreement (Textual) | ||
Total registered capital | 2,210 | 15,000 |
Taizhan [Member] | ||
Entry into a Material Definitive Agreement (Textual) | ||
Total registered capital | $ 2,570 | ¥ 17,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Aug. 10, 2017USD ($) | Aug. 10, 2017CNY (¥) | Mar. 13, 2017USD ($) | Mar. 13, 2017CNY (¥) | Jul. 27, 2017USD ($) | Jul. 27, 2017CNY (¥) | Dec. 19, 2016 | Nov. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | Jul. 31, 2014CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2015CNY (¥) |
Commitments and Contingencies (Textual) | |||||||||||||||
Payments to suppliers | ¥ | ¥ 100,000,000 | ||||||||||||||
Loan guarantee amount | $ 6,000,000 | ¥ 39,596,250 | |||||||||||||
Repayment of bank loan, plus interest | $ 690,739 | $ 2,103,222 | |||||||||||||
Expenses and liability recorded | 6,000,000 | ||||||||||||||
Suizhong Branch of Huludao Banking Co. Ltd [Member] | |||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||
Repayment of bank loan, plus interest | $ 6,350,000 | ¥ 40,000,000 | |||||||||||||
Loan maturity date | Dec. 9, 2016 | Dec. 9, 2016 | |||||||||||||
Interest rate, description | The Company has been disputing the interest rate of the loan with Suizhong Branch, and has not repaid the loan to date. Wonder Fruit believes the interest charged by Suizhong Branch is 100% higher than the base rate set by People's Bank of China and is not in consistent with China People's Bank's base interest and floating rate. | ||||||||||||||
Haanxi Fangtian Decoration Co. Ltd [Member] | |||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||
Loan guarantee amount | ¥ | ¥ 3,500,000 | ||||||||||||||
Repayment of bank loan, plus interest | $ 588,000 | ¥ 402,500 | |||||||||||||
Expenses and liability recorded | 588,000 | ||||||||||||||
Borrowed amount from Fangtian | $ 527,355 | ¥ 3,500,000 | |||||||||||||
Skypeople Jingyang [Member] | |||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||
Repayment of bank loan, plus interest | $ 268,788 | ¥ 1,780,000 | ¥ 3,133,916 | ||||||||||||
Borrowed amount from Fangtian | 269,000 | ||||||||||||||
Xuzhou Jinkaifeng Glass Co. Ltd. [Member] | |||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||
Expenses and liability recorded | $ 55,000 | ||||||||||||||
Shall payment for glass bottles | $ 55,040 | ¥ 365,292 |
Acquisition of a Business (Deta
Acquisition of a Business (Details) | Sep. 30, 2017USD ($) |
ASSETS | |
Cash | $ 4,274 |
Accounts receivable, net | 1,015 |
TOTAL ASSETS | 5,289 |
LIABILITIES | |
Accounts payable | 3,077 |
TOTAL LIABILITIES | 3,077 |
NET ASSETS | $ 2,212 |
Acquisition of a Business (De44
Acquisition of a Business (Details Textual) | 9 Months Ended | ||||
Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Dec. 02, 2016USD ($) | Dec. 02, 2016CNY (¥) | Feb. 18, 2013 | |
Acquisition of a Business (Textual) | |||||
Future operating cash flow needs percentage | 12.90% | ||||
Heying [Member] | |||||
Acquisition of a Business (Textual) | |||||
Fair value of the acquired net assets | $ 2,212 | ¥ 15,260 | |||
Future operating cash flow needs percentage | 99.50% | 99.50% | |||
Heying [Member] | Maximum [Member] | |||||
Acquisition of a Business (Textual) | |||||
Registered capital | $ 1,500,000 | ¥ 10,000,000 | |||
Heying [Member] | Minimum [Member] | |||||
Acquisition of a Business (Textual) | |||||
Registered capital | $ 7,380 | ¥ 50,000 | |||
Yingxin Business Consulting Co., Ltd. [Member] | |||||
Acquisition of a Business (Textual) | |||||
Future operating cash flow needs percentage | 100.00% | 100.00% |
Subsequent Event (Details)
Subsequent Event (Details) | Nov. 06, 2017$ / sharesshares | Nov. 03, 2017USD ($)shares | Nov. 01, 2017USD ($) | Nov. 01, 2017CNY (¥) | Apr. 12, 2017$ / sharesshares | Sep. 30, 2017$ / sharesshares | Nov. 02, 2017shares | Dec. 31, 2016$ / sharesshares | Mar. 10, 2016shares |
Subsequent Event (Textual) | |||||||||
Issuance of aggregate shares of common stock | 862,097 | ||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares authorized | 8,333,333 | 8,333,333 | 66,666,666 | ||||||
Acquisition agreements description | Xue currently beneficially owns 2,337,155 shares, or 45.2% of Future FinTech's issued and outstanding common stock and Mr. Yongke Xue, a member of the Board of Directors of Future FinTech, is Xue's father. | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event (Textual) | |||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||
Common stock, shares authorized | 60,000,000 | ||||||||
Subsequent Event [Member] | Creditors Rights Transfer Agreements [Member] | |||||||||
Subsequent Event (Textual) | |||||||||
Issuance of aggregate shares of common stock | 7,111,599 | ||||||||
Common stock, shares authorized | 60,000,000 | ||||||||
Aggregate purchase price | $ 27,344,096 | ¥ 181,006,980 | |||||||
Acquisition agreements description | Pursuant to the Acquisition Agreements, Hedetang agreed to purchase certain creditor's rights of associated with companies located in the PRC for an aggregate purchase price of RMB 181,006,980 (approximately $27,344,096), of which RMB 108,604,188 (approximately $16,437,248.50) will be paid in cash and RMB 72,402,792 (approximately $10,937,638.50) will be paid in shares of common stock of the Company (the "Share Payment") based on the average of the closing prices of Future FinTech's common stock over the five trading days preceding the date of the Acquisition Agreements. | Pursuant to the Acquisition Agreements, Hedetang agreed to purchase certain creditor's rights of associated with companies located in the PRC for an aggregate purchase price of RMB 181,006,980 (approximately $27,344,096), of which RMB 108,604,188 (approximately $16,437,248.50) will be paid in cash and RMB 72,402,792 (approximately $10,937,638.50) will be paid in shares of common stock of the Company (the "Share Payment") based on the average of the closing prices of Future FinTech's common stock over the five trading days preceding the date of the Acquisition Agreements. | |||||||
Subsequent Event [Member] | Share Purchase Agreement [Member] | |||||||||
Subsequent Event (Textual) | |||||||||
Issuance of aggregate shares of common stock | 11,362,159 | 11,362,159 | |||||||
Aggregate purchase price | $ | $ 16,437,248.50 |