Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 13, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | Future FinTech Group Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 42,286,579 | |
Amendment Flag | false | |
Entity Central Index Key | 0001066923 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-34502 | |
Entity Incorporation, State or Country Code | FL | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 957,676 | $ 531,067 |
Accounts receivable | 483 | 4,954 |
Other receivables, net | 136,857 | 7,040 |
Inventories | 3,336 | 3,594 |
Advances to suppliers and other current assets | 46,688 | 1,670,947 |
Loan receivables | 5,131,643 | |
Assets related to discontinued operations | 5,343,518 | 98,128,199 |
TOTAL CURRENT ASSETS | 11,620,201 | 100,345,801 |
Property, plant and equipment, net | 19,692 | 17,855 |
Right of use assets | 306,965 | |
Intangible assets, net | 1,869,185 | 40,853 |
Amount due from related parties | 3,170,470 | 3,326,061 |
Long term investments | 12,250,000 | 12,250,000 |
TOTAL ASSETS | 29,236,513 | 115,980,570 |
CURRENT LIABILITIES | ||
Accounts payable | 257,431 | 249,683 |
Accrued expenses and other payables | 1,398,097 | 1,342,698 |
Advances from customers | 270,765 | 534,089 |
Convertible loan payables | 1,159,935 | 957,990 |
Loans payables | 861,964 | 109,430 |
Lease liability-current | 156,259 | |
Liabilities related to discontinued operations | 3,513,970 | 199,595,785 |
TOTAL CURRENT LIABILITIES | 7,618,421 | 202,789,675 |
NON-CURRENT LIABILITIES | ||
Amount due to related parties | 1,517,678 | 1,268,101 |
Lease liability-non-current | 148,613 | |
TOTAL NON-CURRENT LIABILITIES | 1,666,291 | 1,268,101 |
TOTAL LIABILITIES | 9,284,712 | 204,057,776 |
Commitments and contingencies (Note 17) | ||
Future Fintech Group Inc., Stockholders’ equity | ||
Common stock, $0.001 par value; 60,000,000 shares authorized and 41,959,545 shares issued and outstanding as of September 30, 2020 and 33,810,416 shares issued and outstanding as of December 31, 2019, respectively | 41,959 | 33,810 |
Additional paid-in capital | 117,562,942 | 107,852,827 |
Accumulated deficits | (99,061,634) | (213,314,612) |
Accumulated other comprehensive income | 3,437,881 | 12,989,408 |
Total Future FinTech Group Inc. stockholders’ equity | 21,981,148 | (92,438,567) |
Non-controlling interests | (2,029,347) | 4,361,361 |
Total stockholders’ equity | 19,951,801 | (88,077,206) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 29,236,513 | $ 115,980,570 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 41,959,545 | 33,810,416 |
Common stock, shares outstanding | 41,959,545 | 33,810,416 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | [1] | Sep. 30, 2020 | Sep. 30, 2019 | [1] | |
Income Statement [Abstract] | ||||||
Revenue | $ 43,657 | $ 342,083 | $ 357,295 | $ 744,977 | ||
Cost of goods sold | 13,516 | 77,165 | 23,388 | 322,942 | ||
Gross profit | 30,141 | 264,918 | 333,907 | 422,035 | ||
Operating Expenses | ||||||
General and administrative expenses | 809,424 | 921,235 | 3,082,462 | 2,555,149 | ||
Selling expenses | 26,167 | 243,411 | 46,641 | 780,259 | ||
Bad debt provision | 31,549 | 48 | 247,097 | 7,491 | ||
Total operating expenses | 867,140 | 1,164,694 | 3,376,200 | 3,342,899 | ||
Loss from operations | (836,999) | (899,776) | (3,042,293) | (2,920,864) | ||
Other income (expense) | ||||||
Interest income | 593 | 61 | 781 | 3,977 | ||
Interest expenses | (289,419) | (21,400) | (343,206) | (134,207) | ||
Loss on debt settlement | (1,946,028) | (1,946,028) | ||||
Other income (expenses), net | 597,962 | (1,741) | 119,310 | (4,521) | ||
Total other income (expenses) | (1,636,892) | (23,080) | (2,169,143) | (134,751) | ||
Loss from Continuing Operations before Income Tax | (2,473,891) | (922,856) | (5,211,436) | (3,055,615) | ||
Income tax provision | 76 | |||||
Loss from Continuing Operations, net of tax | (2,473,891) | (922,856) | (5,211,436) | (3,055,691) | ||
Discontinued Operations (Note 12) | ||||||
Loss from discontinued operations | (80,983) | (479,224) | (140,794) | (1,970,862) | ||
Gain on disposal of discontinued operations | 115,947 | 119,582,658 | ||||
NET INCOME (LOSS) | (2,438,927) | (1,402,080) | 114,230,428 | (5,026,553) | [2] | |
Less: Loss attributable to the non-controlling interest | (13,910) | (324,647) | (22,550) | (1,030,611) | ||
Net income (loss) attributable to Future Fintech Group, Inc. Common Shareholders | (2,425,017) | (1,077,433) | 114,252,978 | (3,995,942) | ||
Net income (loss) | (2,438,927) | (1,402,080) | 114,230,428 | (5,026,553) | [2] | |
Foreign currency translation | (147,759) | 2,135,361 | (630,390) | 7,327,449 | ||
Comprehensive income (loss) | (2,586,686) | 733,281 | 113,600,038 | 2,300,896 | ||
Less: Comprehensive income (loss) attributable to non-controlling interest | 68,176 | 324,648 | (2,079,581) | 1,030,611 | ||
Comprehensive Income (loss) Attributable to Future Fintech Group, Inc. Common Shareholders | $ (2,654,862) | $ 408,632 | $ 115,679,619 | $ 1,270,285 | ||
Basic Earnings (Loss) per Share: | ||||||
Basic loss per share from continuing operations (in Dollars per share) | $ (0.07) | $ (0.02) | $ (0.14) | $ (0.07) | ||
Basic earnings (loss) per share from discontinued operations (in Dollars per share) | (0.01) | 3.23 | (0.06) | |||
Basic Earnings (Loss) per Share from Net Income (Loss) (in Dollars per share) | (0.07) | (0.03) | 3.09 | (0.13) | ||
Diluted Earnings (Loss) per Share: | ||||||
Diluted loss per share from continuing operations (in Dollars per share) | (0.07) | (0.02) | (0.14) | (0.07) | ||
Diluted earnings (loss) per share from discontinued operations (in Dollars per share) | (0.01) | 3.18 | (0.06) | |||
Diluted Earnings (Loss) per Share from Net Income (Loss) (in Dollars per share) | $ (0.07) | $ (0.03) | $ 3.04 | $ (0.13) | ||
Weighted average number of shares outstanding | ||||||
Basic (in Shares) | 35,175,728 | 31,340,160 | 36,982,973 | 31,340,160 | ||
Diluted (in Shares) | 35,845,251 | 32,009,683 | 37,652,496 | 32,009,683 | ||
[1] | Reclassification- certain reclassifications have been made to the financial statements for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020, with no effect on previously reported net income (loss). | |||||
[2] | Reclassification- certain reclassifications have been made to the statements of cash flow for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | [2] | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 114,230,428 | $ (5,026,553) | [1] |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 182,822 | 2,350,807 | |
Bad debt expenses | 247,097 | ||
Gain on sale of discontinued operations | (119,582,658) | ||
Loss on debt settlement | 1,946,028 | ||
Share based compensation | 1,191,000 | ||
Interest converted to convertible note | 170,939 | ||
Changes in operating assets and liabilities | |||
Accounts receivable | 4,471 | 31,029 | |
Other receivable | (129,817) | 8,100,183 | |
Advances to suppliers and other current assets | (250,181) | (135,714) | |
Inventories | 258 | (128,688) | |
Accounts payable | 7,749 | 39,651 | |
Accrued expenses | 55,400 | (16,180,323) | |
Change in net assets related to discontinued operations | 860,377 | 3,977,933 | |
Advances from customers | 295,970 | (352,848) | |
Net Cash Provided by (Used in) Operating Activities | (770,117) | (7,324,523) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and plant | (2,944) | ||
Purchase of intangible assets | (1,259) | ||
Payments for loan receivables | (5,131,643) | ||
Net cash used in investing activities | (5,135,846) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of common stock | 920,000 | ||
Proceeds from amount due from related parties, net | 348,356 | ||
Proceeds from secured convertible promissory note | 5,464,277 | ||
Proceeds from loans | 571,760 | 1,003,809 | |
Repayment of loans | (206,006) | ||
Proceeds from sale of discontinued operations | 85,714 | ||
Net cash provided by financing activities | 7,184,101 | 1,003,809 | |
Effect of change in exchange rate | (851,530) | 6,324,145 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 426,609 | 3,431 | |
Cash and cash equivalents, beginning of year | 531,067 | 33,461 | |
Cash and cash equivalents, end of period | 957,676 | 36,892 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest | |||
Cash paid for income taxes | |||
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | |||
Debt settlement by issuance of Common Stock | $ 4,901,600 | ||
[1] | Reclassification- certain reclassifications have been made to the financial statements for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020, with no effect on previously reported net income (loss). | ||
[2] | Reclassification- certain reclassifications have been made to the statements of cash flow for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional paid-in capital | Accumulated deficits | Accumulative other comprehensive income | Non- controlling interests | Total | |
Balance at Dec. 31, 2018 | $ 31,017 | $ 105,737,256 | $ (188,085,680) | $ (8,961,549) | $ 4,601,121 | $ (86,677,835) | |
Balance (in Shares) at Dec. 31, 2018 | 31,017,083 | ||||||
Balance at Sep. 30, 2019 | $ 32,317 | 115,334,756 | (192,081,622) | (1,634,100) | 3,570,510 | (74,778,139) | |
Balance (in Shares) at Sep. 30, 2019 | 32,317,083 | ||||||
Issuance of common stocks | $ 1,300 | 9,597,500 | 9,598,800 | ||||
Issuance of common stocks (in Shares) | 1,300,000 | ||||||
Net income (loss) | (3,995,942) | (1,030,611) | (5,026,553) | [1],[2] | |||
Foreign currency translation adjustment | 7,327,449 | 7,327,449 | |||||
Balance at Jun. 30, 2019 | $ 31,667 | 115,335,406 | (191,004,189) | (3,769,461) | 3,895,157 | (75,511,420) | |
Balance (in Shares) at Jun. 30, 2019 | 31,667,083 | ||||||
Balance at Sep. 30, 2019 | $ 32,317 | 115,334,756 | (192,081,622) | (1,634,100) | 3,570,510 | (74,778,139) | |
Balance (in Shares) at Sep. 30, 2019 | 32,317,083 | ||||||
Issuance of common stocks | $ 650 | (650) | |||||
Issuance of common stocks (in Shares) | 650,000 | ||||||
Net income (loss) | (1,077,433) | (324,647) | (1,402,080) | [1] | |||
Foreign currency translation adjustment | 2,135,361 | 2,135,361 | |||||
Balance at Dec. 31, 2019 | $ 33,810 | 107,852,827 | (213,314,612) | 12,989,408 | 4,361,361 | (88,077,206) | |
Balance (in Shares) at Dec. 31, 2019 | 33,810,416 | ||||||
Issuance of common stocks-conversion of debt | $ 3,675 | 5,460,602 | 5,464,277 | ||||
Issuance of common stocks-conversion of debt (in Shares) | 3,674,530 | ||||||
Loss on debt settlement | 1,946,028 | 1,946,028 | |||||
Issuance of common stocks-cash | $ 724 | 919,276 | 920,000 | ||||
Issuance of common stocks-cash (in Shares) | 724,599 | ||||||
Balance at Sep. 30, 2020 | $ 41,959 | 117,562,942 | (99,061,634) | 3,437,881 | (2,029,347) | 19,951,801 | |
Balance (in Shares) at Sep. 30, 2020 | 41,959,545 | ||||||
Net income (loss) | 114,252,978 | (22,550) | 114,230,428 | ||||
Share-based payments | $ 3,750 | 1,187,250 | $ 1,191,000 | ||||
Share-based payments (in Shares) | 3,750,000 | 2,250,000 | |||||
Foreign currency translation adjustment | 196,959 | 1,229,682 | 2,057,031 | $ (630,390) | |||
Disposal of discontinued operation | (10,781,209) | (4,311,127) | (15,092,336) | ||||
Balance at Jun. 30, 2020 | $ 38,494 | 109,739,379 | (96,636,617) | 3,667,726 | (2,097,523) | 14,711,459 | |
Balance (in Shares) at Jun. 30, 2020 | 38,494,063 | ||||||
Issuance of common stocks-conversion of debt | $ 2,741 | 4,958,259 | 4,961,000 | ||||
Issuance of common stocks-conversion of debt (in Shares) | 2,740,883 | ||||||
Loss on debt settlement | 1,946,028 | 1,946,028 | |||||
Issuance of common stocks-cash | $ 724 | 919,276 | 920,000 | ||||
Issuance of common stocks-cash (in Shares) | 724,599 | ||||||
Balance at Sep. 30, 2020 | $ 41,959 | 117,562,942 | (99,061,634) | 3,437,881 | (2,029,347) | $ 19,951,801 | |
Balance (in Shares) at Sep. 30, 2020 | 41,959,545 | ||||||
Issuance of common stocks (in Shares) | 2,740,883 | ||||||
Net income (loss) | (2,425,017) | (13,910) | $ (2,438,927) | ||||
Foreign currency translation adjustment | $ (229,845) | $ 82,086 | $ (147,759) | ||||
[1] | Reclassification- certain reclassifications have been made to the financial statements for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020, with no effect on previously reported net income (loss). | ||||||
[2] | Reclassification- certain reclassifications have been made to the statements of cash flow for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020. |
Business Description
Business Description | 9 Months Ended |
Sep. 30, 2020 | |
Business Description [Abstract] | |
BUSINESS DESCRIPTION | 1. BUSINESS DESCRIPTION Future FinTech Group Inc. (together with our direct or indirect subsidiaries, “we,” “us,” “our” or “the Company”) is a holding company incorporated under the laws of the State of Florida. The main business of the Company includes an online shopping platform, Chain Cloud Mall (CCM), which is based on blockchain technology; a cross-border e-commerce platform (NONOGIRL) which started its trial operation in March 2020 and formally launched in July 2020; a blockchain-based application incubator and technical service and support for real name and blockchain based assets and their operating entities (DCON); and the application and development of blockchain-based e-commerce technology and financial technology. Prior to 2019, the Company engaged in the 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. Due to the drastically increased production cost and tightened environmental law in China, the Company has transformed its business from fruit juice manufacturing and distribution to a real-name blockchain e-commerce platform that integrates blockchain and internet technology from the end of 2018. On February 27, 2020 pursuant to a Share Transfer Agreement entered by the Company’s subsidiary, HeDeTang Holdings (HK) Ltd (“HeDeTang HK”), and New Continent International Co., Ltd. on September 18, 2019, the Company sold HeDeTang HK and all its subsidiaries, which mainly engaged in fruit juice related business, to New Continent International Co., Ltd. On April 23, 2020, Future FinTech (Hong Kong) Limited registered GuangChengJi (Shanghai) Industrial Co., Ltd. (“Guangchengji”) with a registered capital of $30 million in Shanghai, China, which needs to be paid before April 22, 2049 when the business license will expire. The business scope of Guangchengji includes wholesaling of electronic components and equipment, metal materials, petroleum products, import and export business, computer software development, information technology, technology consulting and services, business management consulting and supply chain management. On July 22, 2020, the Company established Future Commercial Management (Beijing) Co., Ltd. Its scope of business includes management and consulting services. The Company’s activities are principally conducted by its subsidiaries operating in the PRC. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | 2. 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, 2020 and the results of operations and cash flows for the periods ended September 30, 2020 and 2019. 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 and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2020. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date. Our contractual arrangements with our VIE and their respective shareholders allow us to (i) exercise effective control over our VIE, (ii) receive substantially all of the economic benefits of our VIE, and (iii) have an exclusive option to purchase all or part of the equity interests in our VIE when and to the extent permitted by PRC law. As a result of our direct ownership in our wholly foreign-owned enterprise (“WFOE”) and the contractual arrangements with our VIE, we are regarded as the primary beneficiary of our VIE, and we treat it and its subsidiaries as our consolidated affiliated entities under U.S. GAAP. We have consolidated the financial results of our VIE in our condensed consolidated financial statements in accordance with U.S. GAAP. 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, 2019 as included in our Annual Report on Form 10-K. Going Concern The Company’s financial statements are prepared assuming that the Company will continue as a going concern. The Company incurred operating losses and had negative operating cash flows, which raised substantial doubts about its ability to continue as a going concern. The Company may continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. In order to meet its working capital needs through the next twelve months and to fund the growth of the Company, the Company may consider plans to raise additional funds through the issuance of equity or debt. Although the Company intends to obtain additional financing to meet its cash needs, the Company may be unable to secure any additional financing on terms that are favorable or acceptable to it, if at all. The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For a detailed discussion about the Company significant accounting policies, refer to Note 2 — “Summary of Significant Accounting Policies,” in the Company’s consolidated financial statements included in Company’s 2019 Form 10-K. During the nine months ended September 30, 2020, there were no significant changes made to the Company’s significant accounting policies. Uses of Estimates in the Preparation of Financial Statements The Company’s condensed consolidated financial statements have been prepared in accordance with US GAAP 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 receivable, estimated useful life and residual value of property, plant and equipment, impairment of long-lived assets 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 and such differences may be material to our condensed consolidated financial statements. Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. ASU 2016-13 will be effective on January 1, 2023. We are currently evaluating the effect of the adoption of ASU 2016-13 and believe it does not have any material impact on our results of operations or financial. In August 2020, the FASB issued Accounting Standards Update No. 2020-06 (ASU 2020-06) “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. For public business entities that are not smaller reporting companies, ASU 2020-6 effective fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We are currently evaluating the effect of the adoption of ASU 2020-06 and believe it does not have any material impact on our results of operations or financial. We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company. |
Loan Receivables
Loan Receivables | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
LOAN RECEIVABLES | 4. LOAN RECEIVABLES As of September 30, 2020, the balance of loan receivables was from Shenzhen Tiantian Haodian Technology Co., Ltd. (“Tiantian Haodian”). On June 28, 2020, Guangchengji, a wholly owned subsidiary of the Company, entered into a “Loan Agreement” with Tiantian Haodian. Pursuant to the Loan Agreement, the Company agrees to lend cash up to but not greater than RMB35 million (approximately $5.14 million) with Tiantian Haodian at the annual interest rate of 10% from June 28, 2020 to June 27, 2021. The interest is paid quarterly. There is no collateral or guarantee provided by Tiantian Haodian. During the nine months ended September 30, 2020, the Company recorded an interest income of $99,027 from the loan receivables, which was not paid by Tiantian Haodian as of the date of this report. Management of the Company believes that the balance of the loan receivables is recoverable as of September 30, 2020. |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | 5. RELATED PARTY TRANSACTION The amount due to the related parties of September 30, 2020, which consisted of the followings: Amount (US$) Relationship Note Weicheng Pan 374,444 Legal representative of Guangchengji Loan payable Shanchun Huang 200,896 Chief Executive Officer of the Company Loan payable Kai Xu 16,689 Chief Operating Officer of the Company Payable to employee InUnion Chain Ltd. (“INU”) 300,116 The Company is the 10% equity shareholder of INU Accounts payables Zhi Yan 65,302 Chief Technology Officer of the Company Loan payable Jing chen 6,984 Chief Financial Officer of the Company Payable to employee Yongke Xue 230,352 Chairman of the Company Loan payable Shenzen TianShunDa Equity Investment Fund Management Co., Ltd. (the “TSD”) 322,895 TSD holds 26.36% of the equity interest of SkyPoeple (China), a former subsidiary of the Company, which was sold to New Continent International Co., Ltd. on February 27, 2020. Accounts payables Total 1,517,678 The amount due from the related parties as of September 30, 2020, which consisted of the followings: Amount (US$) Relationship Note Wealth Index (Beijing) Fund Management Co. Ltd. 14,683 The Company’s CEO is the legal representative of this company Interest free loan* Shaanxi Chunlv Ecological Agriculture Co., Ltd. 3,089,457 Holds 20.0% interest in Chain Cloud Mall Logistics Center (Shaanxi) Co., Limited (CCM Logistics) Including creditor’s rights of Shaanxi Youyi Co., Ltd of $3.24 million, which is partially offset by $0.24 million payable to the Company Shaanxi Fullmart Commercial Holdings (Xi’an) Co., Ltd. (“Fullmart Commercial”) 23,935 Fullmart Commercial was 100% owned by Xiu Jun Wang, the ex-wife of Yongke Xue, the Chairman of the Company. Service fee due Shaanxi Quangou Convenient Island Co., Ltd. 24,663 Fullmart Commercial holds 33.33% its equity Interest free loan* Zeyao Xue 17,732 Son of the Chairman of the Company and a major shareholder of the Company of the Company Interest free loan* Total 3,170,470 * The interest free loans and other related party transactions have been approved by the Company’s Audit Committee. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 6. INTANGIBLE ASSETS On May 1, 2020, the Company launched CCM v3.0, an on-line shopping mall platform, which creates a new value cycle system of online shopping malls with a real-name blockchain system. After the launch of CCM v3.0, the Company reclassified this asset, which the Company prepaid to the software developer in fiscal year 2019, into intangible assets in the second quarter of 2020, which will be amortized over 10 years. Also included in the intangible assets is accounting software. The accounting software will be amortized over 10 years. The amortization expense was $0.19 million and $0.59 million for the nine months ended September 30, 2020. The following table sets intangible assets of the Company as of September 30, 2020 and December 31, 2019, respectively. CCM Accounting Software September 30, December 31, September 30, December 31, 2020 2019 2020 2019 Cost $ 1,952,982 $ 43,004 $ 1,292 $ - Less: Accumulated amortization (85,046 ) (2,114 ) (43 ) - Balance as of September 30, 2020 $ 1,867,936 40,890 $ 1,249 $ - The following table summarizes the expected amortization expense for the following years (in thousands): Amortization Year ending December 31, to be 2020 (excluding the nine months ended September 30, 2020) $ 79 2021 315 2022 315 2023 315 2024 315 2025 and thereafter 530 Total $ 1,869 |
Long Term Investment
Long Term Investment | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
LONG TERM INVESTMENT | 7. LONG TERM INVESTMENT On June 22, 2018, Digipay Fintech Limited (“Digipay”), a wholly-owned subsidiary of the Company acquired 10% ownership interest in InUnion Chain Ltd. (“InUnion”) for an aggregate purchase price of $15 million (“Purchase Price”), pursuant to a Shares Transfer and IUN Digital Assets Investment Agreement signed with Lake Chenliu, who are the sole owner of InUnion. The Company issued 5 million of its Common Stock to the InUnion on October 19, 2018 as the payment for Purchase Price. Upon acquiring the InUnion Shares, Digipay has access to, and the use of, certain software, technology and related intellectual property of InUnion without further payment. Digipay also has the right to designate a director nominee to the board of directors of InUnion. The Company has appointed a director to the Board of Director of InUnion. Pursuant to the agreement, Digipay shall also purchase 20,000,000 of the INU tokens issued by InUnion (the “INU Tokens”) for an aggregate purchase price of $1,000,000, which such amount shall be paid in immediately available funds within 180 days of the date of the agreement. Digipay has reached an agreement with InUnion to waive the purchase of the INU Token. As a result, no INU Token was acquired by Digipay. As of December 31, 2019, management assessed the value of the above investment, and recorded an impairment loss of $2.75 million. |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE BASED COMPENSATION | 8. SHARE BASED COMPENSATION On January 25, 2020, the Company entered into a Consulting Service Agreement (the “Agreement”) with Dragon Investment Holding Limited (Malta) (the “Consultant”), a company incorporated in Malta, pursuant to which Consultant will: (i) help the Company to locate new merger projects globally, develop new merger strategy and provide the Company with at least five (5) merger and acquisition targets that have synergy with the Company’s business and development plans and could clearly contribute to the Company’s strategic goals each year; (ii) help the Company to map out new growth strategies in addition to its current business; (iii) work with the Company to explore new lines of business and associated growth strategies; and (iv) conduct market research and evaluating variable projects and providing feasibility studies per Company’s request from time to time. The term of the Agreement is three years. In consideration of the services to be provided by Consultant to the Company, the Company agrees to pay the Consultant a three-year consulting fee totaling $3 million. The Company shall issue a total of 3,750,000 restricted shares of the Company Common Stock (the “Consultant Shares”) at a price of $0.794 per share, (the closing price of the Agreement date), as the payment for the above mentioned consultant fee to the Consultant. On February 23, 2020, The Company issued the Consultant Shares pursuant to the Agreement, of which 1,500,000 shares were released to the Consultant immediately, 1,125,000 and 1,125,000 shares, respectively, will be held by the Company and released to the Consultant on January 25, 2021 and January 25, 2022 if this Agreement has not been terminated and there has been no breach of the Agreement by the Consultant at such time. If the second and/or third release of the shares mentioned above does not occur, such shares shall be returned to the Company as treasury shares. The shares contemplated in the Agreement were issued pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. For the nine months ended September 30, 2020, the Company recorded stock related compensation of $1.19 million, based on the stock closing price of $0.794 on the Agreement date, for the 1,500,000 shares which were released to the Consultant immediately upon issuance. The Company will recognize stock related compensation of $1.79 million for the 2,250,000 shares in the future when they are released to the Consultant pursuant to the Agreement. On May 13, 2019, the Company issued 500,000 of its Common Stock to two employees granted in December 2018 by the Compensation Committee of the Board pursuant to the Company’s 2017 Omnibus Equity Plan (the “Plan”). On June 5, 2019, the Company issued 150,000 shares of its Common Stock to three employees granted in December 2018 by the Compensation Committee of the Board pursuant to the Plan. On February 26, 2020, the Company’s shareholders approved the 2019 Omnibus Equity Plan at a Special Meeting of shareholder, which 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, officers and directors of up to 3,000,000 shares of Common Stock. The Company has not issued any stock under the 2019 Omnibus Equity Plan. On October 27, 2020, the Company’s board of directors approved the 2020 Omnibus Equity Plan, which 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, officers and directors of up to 5,000,000 shares of Common Stock. The 2020 Omnibus Equity Plan is subject to the shareholders’ approval on the annual shareholders’ meeting, which will be held on December 18, 2020. The Company has not issued any stock under the 2020 Omnibus Equity Plan. The Company did not grant any stock options during the nine months ended September 30, 2020 and September 30, 2019. |
Operating Lease
Operating Lease | 9 Months Ended |
Sep. 30, 2020 | |
Operating Lease [Abstract] | |
OPERATING LEASE | 9. OPERATING LEASE In August 2020, the Company signed an operating lease agreement for its office in Beijing. The Company recognized operating lease liabilities and operating lease right-of-use assets on its balance sheets. Right of use assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Right of use assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The company has leases with fixed payments for office rental in Beijing, which are classified as operating leases. Options to extend or renew are recognized as part of the lease liabilities and recognized as right of use assets. There are no residual value guarantees and no restrictions or covenants imposed by the leases. The weighted average remaining lease term is 2 years and the weighted average discount rate is 6%. In the nine months ended September 30, 2020, the costs of the leases recognized in general administrative expenses are $13,000. Cash paid for the operating leases including in the operating cash flows was $15,038. Future minimum lease payments for leases with initial or remaining noncancelable lease terms in excess of one year are as follows: Year ending December 31, (In thousands of U.S. Dollars) 2020 $ 32 2021 164 2022 109 $ 305 |
Convertible Loan Payable
Convertible Loan Payable | 9 Months Ended |
Sep. 30, 2020 | |
Convertible Loan Payable [Abstract] | |
CONVERTIBLE LOAN PAYABLE | 10. CONVERTIBLE LOAN PAYABLE On December 19, 2019, Company entered into a Note Purchase Agreement with Iliad Research and Trading, L.P., a Utah limited partnership (“Iliad”), pursuant to which the Company sold and issued to Iliad a Secured Promissory Note in the principal amount of $1.06 million. Iliad purchased the Note with an original issue discount of $0.05 million, and the Company agreed to pay to Iliad $0.01 million for fees and costs incurred by Iliad in connection with the consummation of the Purchase Agreement. The Note was sold to Iliad pursuant to an exemption from registration under Regulation D, promulgated under the Securities Act of 1933, as amended. The Note is one-year term with an interest rate of 8%. There was no fixed conversation price to the Company’s Common Stock in the agreement. Iliad has converted all the Note Purchased in fiscal year 2019 to the Company’s Common Stock based on the market date on the conversion date. The Company believes that this Note will also be converted into the Company’s Common Stock in future. The Company received proceeds of $0.53 from Iliad on December 23, 2019, and the balance of $0.53 million on January 17, 2020. On July 28, 2020, the Company, entered into a Standstill Agreement with the Iliad. Pursuant to the Standstill Agreement, Iliad agreed to refrain and forbear temporarily from making redemptions for the Note that was sold and issued by the Company on December 19, 2019 in the original principal amount of $1.06 million. Iliad agreed not to redeem any portion of the Note (the “Standstill”) for a period beginning on the date of the Agreement and ending on the date that is ninety (90) days from the date of the Agreement. As a material inducement and partial consideration for Iliad’s agreement to enter into the Agreement, the Company agreed that the outstanding balance of the Note shall be increased by nine percent (9%), or $0.10 million, on the date of the Agreement (the “Standstill Fee”). The Company recorded the Standstill Fee of $0.10 million as interest expenses during the third quarter of 2020. As of September 30, 2020, the balance of the convertible note payable was $1.16 million. Common stocks issued in connection with the convertible notes On January 6, 2020, the Company entered into the Eighth Exchange Agreement (the “Eighth Exchange Agreement”) with Iliad. Pursuant to the Eighth Exchange Agreement, the Company and Iliad agreed to partition a new Secured Convertible Promissory Note in the original principal amount of $145,000 (the “Eighth Partitioned Note”) from a Secured Convertible Promissory Note (the “Note”) issued by the Company on March 26, 2019. The outstanding balance of the Note shall be reduced by an amount equal to the outstanding balance of the Partitioned Note. The Company and Iliad further agreed to exchange the Eighth Partitioned Note for the delivery of 193,333 shares of the Company’s Common Stock, according to the terms and conditions of the Exchange Agreement. On January 15, 2020, the Company entered into the Ninth Exchange Agreement (the “Ninth Exchange Agreement”) with the Iliad. Pursuant to the Exchange Agreement, the Company and Iliad agreed to partition a new Secured Convertible Promissory Note in the original principal amount of $140,000 (the “Ninth Partitioned Note”) from the Note issued by the Company on March 26, 2019. The outstanding balance of the Note shall be reduced by an amount equal to the outstanding balance of the Ninth Partitioned Note. The Company and Iliad further agreed to exchange the Partitioned Note for the delivery of 186,666 shares of the Company’s Common Stock, according to the terms and conditions of the Exchange Agreement. On March 11, 2020, the Company entered into the Tenth Exchange Agreement (the “Tenth Exchange Agreement”) with the Iliad. Pursuant to the Tenth Exchange Agreement, the Company and Iliad agreed to partition a new Secured Convertible Promissory Note in the original principal amount of $150,000 (the “Tenth Partitioned Note”) from the Note issued by the Company on March 26, 2019. The outstanding balance of the Note shall be reduced by an amount equal to the outstanding balance of the Partitioned Note. The Company and Iliad further agreed to exchange the Partitioned Note for the delivery of 200,000 shares of the Company’s Common Stock, according to the terms and conditions of the Exchange Agreement. On April 17, 2020, the Company entered into the Eleventh Exchange Agreement (the “Eleventh Exchange Agreement”) with Iliad. Pursuant to Eleventh Exchange Agreement, the Company and Iliad agreed to partition a new Secured Convertible Promissory Note in the original principal amount of $153,750 (the “Eleventh Partitioned Note”) from a Secured Convertible Promissory Note (the “Note”) issued by the Company on March 26, 2019. The outstanding balance of the Note shall be reduced by an amount equal to the outstanding balance of the Eleventh Partitioned Note. The Company and Iliad further agreed to exchange the Eleventh Partitioned Note for the delivery of 205,000 shares of the Company’s Common Stock, according to the terms and conditions of the Eleventh Exchange Agreement. On June 10, 2020, the Company entered into the Twelfth Exchange Agreement (the “Twelfth Exchange Agreement”) with the Iliad. Pursuant to the Twelfth Exchange Agreement, the Company and Iliad agreed to partition a new Secured Convertible Promissory Note in the original principal amount of $111,486 (the “Twelfth Partitioned Note”) from the Note issued by the Company on March 26, 2019. The outstanding balance of the Note shall be reduced by an amount equal to the outstanding balance of the Partitioned Note. The Company and Iliad further agreed to exchange the Twelfth Partitioned Note for the delivery of 148,648 shares of the Company’s Common Stock, according to the terms and conditions of the Twelfth Exchange Agreement. |
Common Stocks Issued
Common Stocks Issued | 9 Months Ended |
Sep. 30, 2020 | |
Common Stocks Issued [Abstract] | |
COMMON STOCKS ISSUED | 11. COMMON STOCKS ISSUED Debt Repayment Agreement In July 2020, the Company entered a series of loan agreements with fourteen individuals for a total amount of $4.96 million. On August 4, 2020, the Company entered into a Debt Repayment Agreement with these individuals (the “Creditors”), pursuant to which the Company agreed to repay $4,961,000 debt owed to the Creditors in the form of shares of Common Stock of the Company for an aggregate of 2,740,883 shares at a price of $1.81 per share (the “Debt Repayment”). As the closing price of the Company stock was $2.52 on August 4, 2020, the Company recognized loss of $1.95 million in loss on debt settlement during the third quarter of 2020 Securities Purchase Agreement On June 16, 2020, the Company entered into a Securities Purchase Agreement with Qun Xie, pursuant to which the Company agreed to sell to the Qun Xie in a private placement 500,000 shares of the Company’s Common Stock, purchase price of $1.00 per share for an aggregate offering price of $500,000. The Private Placement will be completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. On June 30, 2020, Qun Xie paid $500,000, and on August 7, 2020, the Company issued 500,000 Shares pursuant to this Agreement. On September 16, 2020, the Company entered into a Securities Purchase Agreement with Houwu Huang, pursuant to which the Company agreed to sell to Houwu Huang in a private placement 224,599 shares of the Company’s common stock, at a purchase price of $1.87 per share for an aggregate offering price of $420,000. The Private Placement will be completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. The Company issued 224,599 shares of its Common Stock to the Purchaser on September 24, 2020. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 12. DISCONTINUED OPERATIONS The following table listed the total assets and liabilities of the discontinued operation as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Total Total Assets Total Hedetang Farm (1) $ 5,343,518 $ 3,367,129 $ 5,353,790 $ 3,237,113 Zhonglian Hengxin (1) - - 1,623 96,924 CCM Logistics (1) - 146,841 - - Digital Online Marketing Limited (1) - - - - SkyPeople Foods Holding Ltd. (1) - - - - HeDeTang HK (2) - - 92,772,786 196,261,748 Total $ 5,343,518 $ 3,513,970 $ 98,128,199 $ 199,595,785 (1) On March 11, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Zhonglian Hengxin Assets Management Co., Ltd (“Zhonglian Hengxin”) and close the operation of Digital Online Marketing Limited, and SkyPeople Foods Holding Ltd. On July 24, 2020, the Company’s Board of Directors passed a resolution to close the operation of Chain Cloud Mall Logistics Center (Shaanxi) Co., Limited (“CCM Logistics”), a subsidiary located in the national kiwifruit Industrial Park of Baoji City and Hedetang Farm Products Trading Markets (Mei County) Co., Ltd. (“Hedetang Farm”). The Company has established a winding-down plan to close these operations. Based on the restructuring plan and in accordance with ASC 205-20, the Company presented the operating results from these operations. as a discontinued operation, as the Company believed that no continued cash flow would be generated by these operations. and that the Company would have no significant continuing involvement in the discontinued entity. In the second quarter of 2020, the Company signed an Equity Transfer Agreement with Shaanxi Yinlian Huijin Asset Management Co. Ltd. to transfer 65% of the equity shares of Zhonglian Hengxin at zero consideration. The net liabilities of Zhonglian Hengxin are $0.15 million. The Company recorded a gain on sale of subsidiary of $0.15 million in the third quarter of 2020. On November 12, 2020, CCM Tianjin, a wholly owned subsidiary of the Company entered into an Equity Transfer Agreement with Xi’an Yishengkang Information Technology, Ltd. (“Xi’an Yishengkang”), an unrelated third party, pursuant to which the Company agreed to sell 90% of total issued and outstanding capital stock of Hedetang Farm that it owns to Xi’an Yishengkang at RMB9,000 (approximately $1,324). On the same date, CCM Logistics entered into another Equity Transfer Agreement with an individual and unrelated third party, Liyuan Ying, pursuant to which the Company agreed to sell 10% of its shares of total issued and outstanding capital stock of Hedetang Farm that it owns to Liyuan Ying for RMB1,000 (approximately $147). (2) HeDeTang HK On September 18, 2019, HeDeTang HK entered into a Share Transfer Agreement (the “Agreement”) with New Continent International Co., Ltd., (the “Buyer”) a company incorporated in the British Virgin Islands. Pursuant to the terms of the Agreement, the Buyer purchased 100% ownership of HeDeTang HK, which value is primarily derived from HeDeTang HK’s wholly-owned subsidiary HeDeJiaChuan Holdings Co., Ltd. and 73.41% owned subsidiary SkyPeople Juice Group Co., Ltd., for a total price of RMB 600,000 (approximately $85,714) (the “Sale Transaction”). The Sale Transaction was closed on February 27, 2020. In accordance with ASC Topic 205, Presentation of Financial Statement Discontinued Operations |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | 13. VARIABLE INTEREST ENTITIES On July 31, 2019, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited (“CCM Tianjin”), Chain Cloud Mall E-commerce (Tianjin) Co., Ltd., (“E-commerce Tianjin”), and Mr. Zeyao Xue and Mr. Kai Xu, citizens of China and shareholders of E-commerce Tianjin, entered into the following agreements, or collectively, the “Variable Interest Entity Agreements” or “VIE Agreements,” pursuant to which CCM Tianjin has contractual rights to control and operate the business of E-commerce Tianjin (the “VIE”). Therefore, pursuant to ASC 810, E-Commerce Tianjin is included in the Company’s condensed consolidated financial statements since then. Pursuant to Chinese law and regulations, a foreign owned enterprise cannot apply for and hold a license for operation of certain e-commerce businesses, and the category of business which the Company plans to expand in China. CCM Tianjin is an indirectly wholly foreign owned enterprise of the Company. In order to comply with Chinese law and regulations, CCM Tianjin agreed to provide E-commerce Tianjin an Exclusive Operation and Use Rights Authorization to operate and use the Chain Cloud Mall System owned by CCM Tianjin. E-commerce Tianjin was incorporated by Mr. Zeyao Xue and Mr. Kai Xu solely for the purpose of holding the operation license of the Chain Cloud Mall System. Mr. Zeyao Xue is a major shareholder of the Company and the son of Mr. Yongke Xue, the Chairman of the Board of Directors of the Company. Mr. Kai Xu is the Deputy General Manager of Future Commercial Management (Beijing) Co., Ltd. For the details about the VIE agreements, refer to Note 15 “Variable Interest Entities,” in the Company’s consolidated financial statements included in Company’s 2019 Form 10-K. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | 14. ACCRUED EXPENSES AND OTHER PAYABLES The amount of accrued expenses and other payables as of September 30, 2020 and December 31, 2019 consisted of the followings: September 30, December 31, Acquisition of Intangibles $ 320,267 $ 15,374 Legal fee and other professionals 364,924 361,279 Wages and employee reimbursement 321,350 452,389 Suppliers 254,702 350,992 Accrued interest 67,025 85,600 Accrued tax payable 58,073 77,064 Others 11,756 - Total $ 1,398,097 $ 1,342,698 |
Loan Payable
Loan Payable | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
LOAN PAYABLE | 15. LOAN PAYABLE As of September 30, 2020, loan payable were $0.86 million, which consisted of the loan payable of $0.17 million to Shaanxi Entai Bio-Technology Co., Ltd., loan payable $5,870 to Shenzhen Wangjv Trading Co., Ltd. and loan payable of $0.68 million to some individuals creditor. The loan from Shaanxi Entai Bio-Technology Co., Ltd. of $0.17 million was an interest free loan and there is not assets pledged for this loan. On June 15, 2020, the Company entered into a loan agreement with Shenzhen Wangjv Trading Co., Ltd. Pursuant to the loan agreement, the Company borrowed $0.21 million from Shenzhen Wangjv Trading Co., Ltd. at the annual interest rate of 8% for the use of working capital for a year. On July 6, 2020, the Company returned $0.20 million to Shenzhen Wangjv Trading Co., Ltd. During the third quarter of 2020, the Company entered into a series of interest free loan agreements with some individual creditors On October 27, 2020, the Company entered into a series of Debt Repayment Agreements with some of the individual creditors, pursuant to which the Company agreed to repay $0.32 million debt owed to these individual creditors in the form of shares of Common Stock of the Company for an aggregate of 160,000 shares at a price of $2.00 per share (the “Debt Repayment”). As the closing price of the Company stock was $2.23 on October 27, the Company recognized loss of $0.04 million in other expenses during the fourth quarter of 2020. The Debt Repayment will be completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognitipon Disclosure [Abstract] | |
REVENUES | 16. REVENUES All of our revenues are generated in China. The following table summarizes the Company's revenues disaggregated by revenue source (in thousands). The revenues are recognized as separate performance obligations that are satisfied by transferring control of the product or service to the customer. There was no deferred revenue. Three Months Ended Nine Months Ended * September 30, September 30, September 30, September 30, Revenue Service fees $ 38,109 $ 207,563 $ 348,896 $ 338,469 Sales of Goods 5,548 134,520 8,399 406,508 Total $ 43,657 $ 342,083 $ 357,295 $ 744,977 * Certain reclassifications have been made to the financial statements for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020, with no effect on previously reported net income (loss). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES SEC Subpoena On February 21, 2020, the Company received a subpoena from the SEC’s Division of Enforcement requiring us to produce documents and detailed information relating to, among other things, the Company’s accounting procedures, management oversight, and the sale of HeDeTang holdings (HK) Ltd. to New Continent International Co., Ltd. The subpoena required the Company to produce all responsive documents created during, or concerning, the period January 1, 2016 to the present, unless otherwise specified. The Company is cooperating with the SEC’s investigation and has provided responsive documents and information requested in the subpoena. In the event the Company locates additional responsive documents, we expect to produce them promptly to the SEC. We will also make officers or other employees available to be interviewed by the SEC with regard to the subject matters identified in the subpoena. The Company is unable to predict, what action, if any, might be taken in the future by the SEC or any other governmental authority as a result of the subpoenas. There can be no assurance that the SEC will not commence an enforcement action against us or members of our management, or as to the ultimate resolution of any enforcement action that the SEC may decide to bring. Under applicable law, the SEC has the ability to impose significant sanctions on companies and individuals who are found to have violated the provisions of applicable federal securities laws, including cease and desist orders, civil money penalties, and barring individuals from serving as directors or officers of public companies. We have expended significant financial and managerial resources responding to the SEC subpoena. Defending any enforcement action brought by the SEC against us would involve further significant expenditures and the resolution of any such enforcement action could have a material adverse effect on our business, financial condition, results of operations and cash flows. Entry into a material Definitive Agreement On July 13, 2020 Pursuant to the terms of the Share Exchange Agreement, the parties agreed: (i) the aggregate purchase price for Nice Shares shall be HK$54 million (approximately $6.97 million, the “Purchase Price”) and it shall be paid in the Company’s Common Stock; (ii) 40% of the Purchase Price HK$21.6 million (approximately $2.79 million) shall be paid in the shares of common stock of the Company based on the average closing price of the Company’s Common Stock listed on Nasdaq Stock Exchange for the ten (10) trading days prior to the date of the Agreement and the foreign exchange rate between HK$ and US$ shall be the rate published by Bloomberg on the date of the Agreement; (iii) 30% of Purchase Price shall be paid in the Company Common Stock (the “2020 Earn-Out Shares”) if Nice meets certain earnings goal for 2020 (the “2020 Earnings Goal”); (iv) the 2020 Earn-Out Shares shall be issued based upon the average closing price of the Company’s Common Stock listed on Nasdaq Stock Exchange for the ten (10) trading days prior to December 31, 2020 and the exchange rate between HK$ and US$ shall be the rate published by Bloomberg on December 31, 2020; (v) additional 30% of Purchase Price shall be paid in the shares of common stock the Company (the “2021 Earn-Out Shares”) if Nice meets certain earnings goal for 2021 (the “2021 Earnings Goal”); (vi) the 2021 Earn-Out Shares shall be issued based upon the average closing price of the Company’s Common Stock listed on Nasdaq Stock Exchange for the ten (10) trading days prior to December 31, 2021 and the exchange rate between HK$ and US$ shall be the rate published by Bloomberg on December 31, 2021; (vii) if Nice does not achieve its earnings goal for a given year, the parties agree to have forbearance clause that the amount of such year’s earn-out shares shall not be reduced for that year if Nice achieves at least sixty percent (60%) of its given year earnings goal and if Nice achieves lower than 60% earnings goal for a given year, the amount of such year’s earn-out shares shall be reduced to zero. The Company Shares will be issued pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. This transaction is subject to the approval of the Security and Futures Commission of Hong Kong. As of the date of this report, the transaction is still pending Litigation Legal case with Zhongcai Hedetang Market, a subsidiary of CCM Tianjin, entered into a loan agreement with Shaanxi Zhongcai Pawn Co., Ltd. ("Zhongcai") in February 2015. Pursuant to the loan agreement, Hedetang Market borrowed $1.84 million from Zhongcai at the monthly interest rate of 0.4%. Hedetang Market provided its land use right as a pledge for the loan. Hedetang Market did not return the principal and interest on time pursuant to the loan agreement. Zhongcai filed an enforcement request with Xi’an Intermediate People’s Court in July 2015. In August 2017, Xi’an Intermediate People’s Court issued a verdict to seize the pledged land use rights of Hedetang Market for auction. As of the date of this report, the auction sale was not successful. The Company recorded the unpaid amount of $1.84 million as loan payable. Legal case with Shaanxi Zhongkun Construction Co., Ltd. In May 2015, Hedetang Market and Shaanxi Zhongkun Construction Co., Ltd. (“Zhongkun”) entered into a construction and decoration agreement. On September 5, 2018, Zhongkun filed the lawsuit with Mei County People’s Court (the “Court”) for repayment of construction and decoration fees. The Court issued a civil judgement in November 2018, ordering Hedetang Market to pay project funds of RMB 1.65 million (approximately $0.24 million) to Zhongkun, plus interest. On April 19, 2020, the Court issued a verdict to terminate the enforcement because assets of Hedetang Market had already been seized by Xi’an Yanta District People’s Court and Baoji Intermediate People’s Court, and there were no other assets for enforcement. Currently the Company is still liable for the unpaid amount and the interest. Legal case with Cinda Capital Financing Co., Ltd. In August 2017, Cinda Capital Financing Co., Ltd. (“Cinda”) filed a lawsuit with Beijing 2nd Intermediate People’s Court (the “Beijing Intermediate Court”) against the Company’s indirectly wholly-owned subsidiaries Shaanxi Guoweimei Kiwi Deep Processing Company, Ltd. (“Guoweimei”) and Hedetang Market (Hedetang Market and together with Guoweimei, “Lessees”) requested that Lessees repay RMB 50 million (approximately $7.27 million) in capital lease fees, plus interest. Cinda purchased or paid for refrigerant warehouse and trading hall to the suppliers and vendors and agreed to lease them to the Lessees for a leasing fee of RMB 50 million in December 2016. The capital leasing fee became due on its maturity date of June 2017, with certain land use rights of Lessees in Mei County and equity of Guoweimei as a pledge. The Company disputed that the land use rights for the refrigerant warehouse and trading hall were never sold to or transferred to Cinda, and argues that therefore it is a loan agreement and not a capital lease agreement among the parties. Lessees have taken the position that Cinda is not a bank and does not have government permits required to make loans in China, and the agreements including pledge agreement were invalid, void and without legal effect from the beginning. Therefore, the Company only has the obligations to repay principal but not the interest. In November 2017, Beijing Intermediate Court ruled in favor of Cinda and the Lessees appealed the case to the Beijing Supreme Court. The Beijing Supreme Court held a hearing at the end of July 2018. On December 4, 2018, the Beijing Supreme Court upheld the lower court’s decision. On April 8, 2019, Beijing Intermediate Court issued the verdict for enforcement of the judgment and the plaintiff has the priority rights for the repayment for the pledged land use rights of Lessees in Mei County and equity of Guoweimei. The case is under enforcement procedure and Cinda is in the process of sale the land use rights. Before the land use right is sold, the subsidiaries of SkyPeople China still owns the seized properties and the liabilities to Cinda. As of September 30, 2020, SkyPeople China has not repaid the amount. SkyPeople China was one of the subsidiaries transferred along with HeDengTang HK to New Continent International Co., Ltd. on February 27, 2020. The creditors have no recourse to the current Company. In August 2017, Cinda Capital Financing Co., Ltd. (“Cinda”) filed another lawsuit with Beijing Intermediate Court against the Company’s indirectly wholly-owned subsidiaries Guoweimei and SkyPeople China for repayment of a leasing fee of RMB 84.97 million (approximately $12.35 million) plus interest. In January 2014, Guoweimei and SkyPeople China (the “Equipment Lessees”) signed an Equipment Financial Lease Purchase Agreement with Cinda and an equipment supplier pursuant to which Cinda would provide funds to purchase equipment and the Equipment Lessees would lease the equipment from Cinda. Guoweimei pledged certain land use rights in Mei County to Cinda and Xi’an Hedetang and Hedetang Holding pledged their equities in Guoweimei to Cinda to secure the repayment. Mr. Hongke Xue also provided a personal guarantee for the payment of the leasing fee. Beijing Intermediate Court had two hearings of the case and on March 21, 2018, and it ruled in favor of Cinda to the effect that SkyPeople China and Guoweimei shall pay leasing fees due in the amount of RMB 21.00 million (approximately $3.05 million), as well as leasing fees not yet due in the amount of RMB 63.98 million (approximately $9.30 million), plus attorney’s fees and expenses. Beijing Intermediate Court also ruled that Mr. Hongke Xue is jointly liable for the debt as the guarantor, and that Cinda has priority rights to the pledged land use rights in Mei County and the pledged equities of Guoweimei as well as the ownership of the leasing properties until the leasing fees are paid. SkyPeople China has appealed the decision to the Beijing Supreme Court. The Beijing Supreme Court rejected the appeal and upheld the original verdict on September 7, 2018. The case is under enforcement procedure and Cinda is in the process of sale the seized properties. Before they are sold, the subsidiaries of SkyPeople China still owns the seized properties and the liabilities to Cinda. As of September 30, 2020, SkyPeople China has not repaid the amount. SkyPeople China was one of the subsidiaries transferred along with HeDengTang HK to New Continent International Co., Ltd. on February 27, 2020. The creditors have no recourse to the current Company. Certain pending legal cases that we previously disclosed are related to the subsidiaries of HeDengTang HK, which was sold to New Continent International Co., Ltd. on February 27, 2020. Accordingly, the Company is no longer a party to these legal cases. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 18. RISKS AND UNCERTAINTIES Impact of COVID 19 In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China, the pandemic quickly spread to many provinces, autonomous regions, and cities all over the China and other parts of the world. Substantially all of our revenues are generated in China. The Company’s results of operations have been materially negatively affected by the outbreak of COVID-19 in China, especially during the first half of 2020. In early 2020, Chinese government took emergency measures to combat the spread of the virus, including quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China, which has materially adversely affected the Company’s business and services and results of operations. Our suppliers have negatively been affected, and could continue to be negatively affected in their ability to supply and ship products to our customers by any further outbreak or resurgence of COVID-19 in China. Our customers that are negatively impacted by the outbreak of COVID-19 may reduce their budgets to purchase products and services from us, which may materially adversely impact our revenue. The business operations of the third parties’ stores on our platform have been and could continue to be negatively impacted by any further outbreak or resurgence of COVID-19, which may negatively impact their operations and business, which may in turn adversely affect the business of our platform as a whole as well as our financial condition and operating results. Some of our customers, contractors, suppliers and other business partners are small and medium-sized enterprises (SMEs), which may not have strong cash flows or be well capitalized, and may be vulnerable to an epidemic outbreak and slowing macroeconomic conditions. Further, as we do not have access to a revolving credit facility, there can be no assurance that we would be able to secure commercial debt financing in the future in the event that we require additional capital. The Company’s promotion strategy of the CCM Shopping Mall previously mainly relied on the training of members and distributors through meetings and conferences before the outbreak. Although China has already begun to recover from the outbreak of COVID-19, the Chinese government still put a restriction on large gatherings. These restrictions made the promotion strategy for CCM Shopping Mall difficult to implement. Consequently, our results of operations have been materially adversely affected. Any potential impact to our results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of the COVID-19 and the actions taken by government authorities and other entities to contain the COVID-19 or treat its impact, almost all of which are beyond our control. PRC Regulations We conduct substantially all of our operations and generate most of our revenue in the PRC. Accordingly, economic, political and legal developments in the PRC will significantly affect our business, financial condition, results of operations and prospects. The PRC economy is in transition from a planned economy to a market oriented economy subject to plans adopted by the government that set national economic development goals. Policies of the PRC government can have significant effects on economic conditions in the PRC. Currency risks A majority of the Company’s operating transactions are denominated in RMB and a significant portion of the Company’s assets and liabilities is denominated in RMB. RMB is not freely convertible into foreign currencies. The value of the RMB is subject to changes in the central government policies and to international economic and political developments. In the PRC, certain foreign exchange transactions are required by laws to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to complete the remittance. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS On November 2, 2020, the Company entered into a Securities Purchase Agreement with certain investors pursuant to which the Company agreed to sell to these investors in a private placement 167,034 shares of the Company’s common stock, at a purchase price of $1.87 per share for an aggregate offering price of $312,352. This private placement will be completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
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 US GAAP 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 receivable, estimated useful life and residual value of property, plant and equipment, impairment of long-lived assets 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 and such differences may be material to our condensed consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. ASU 2016-13 will be effective on January 1, 2023. We are currently evaluating the effect of the adoption of ASU 2016-13 and believe it does not have any material impact on our results of operations or financial. In August 2020, the FASB issued Accounting Standards Update No. 2020-06 (ASU 2020-06) “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. For public business entities that are not smaller reporting companies, ASU 2020-6 effective fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We are currently evaluating the effect of the adoption of ASU 2020-06 and believe it does not have any material impact on our results of operations or financial. We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company. |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions from whom amounts were received | Amount (US$) Relationship Note Weicheng Pan 374,444 Legal representative of Guangchengji Loan payable Shanchun Huang 200,896 Chief Executive Officer of the Company Loan payable Kai Xu 16,689 Chief Operating Officer of the Company Payable to employee InUnion Chain Ltd. (“INU”) 300,116 The Company is the 10% equity shareholder of INU Accounts payables Zhi Yan 65,302 Chief Technology Officer of the Company Loan payable Jing chen 6,984 Chief Financial Officer of the Company Payable to employee Yongke Xue 230,352 Chairman of the Company Loan payable Shenzen TianShunDa Equity Investment Fund Management Co., Ltd. (the “TSD”) 322,895 TSD holds 26.36% of the equity interest of SkyPoeple (China), a former subsidiary of the Company, which was sold to New Continent International Co., Ltd. on February 27, 2020. Accounts payables Total 1,517,678 |
Schedule of related party transactions to whom the amounts were paid | Amount (US$) Relationship Note Wealth Index (Beijing) Fund Management Co. Ltd. 14,683 The Company’s CEO is the legal representative of this company Interest free loan* Shaanxi Chunlv Ecological Agriculture Co., Ltd. 3,089,457 Holds 20.0% interest in Chain Cloud Mall Logistics Center (Shaanxi) Co., Limited (CCM Logistics) Including creditor’s rights of Shaanxi Youyi Co., Ltd of $3.24 million, which is partially offset by $0.24 million payable to the Company Shaanxi Fullmart Commercial Holdings (Xi’an) Co., Ltd. (“Fullmart Commercial”) 23,935 Fullmart Commercial was 100% owned by Xiu Jun Wang, the ex-wife of Yongke Xue, the Chairman of the Company. Service fee due Shaanxi Quangou Convenient Island Co., Ltd. 24,663 Fullmart Commercial holds 33.33% its equity Interest free loan* Zeyao Xue 17,732 Son of the Chairman of the Company and a major shareholder of the Company of the Company Interest free loan* Total 3,170,470 * The interest free loans and other related party transactions have been approved by the Company’s Audit Committee. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | CCM Accounting Software September 30, December 31, September 30, December 31, 2020 2019 2020 2019 Cost $ 1,952,982 $ 43,004 $ 1,292 $ - Less: Accumulated amortization (85,046 ) (2,114 ) (43 ) - Balance as of September 30, 2020 $ 1,867,936 40,890 $ 1,249 $ - |
Schedule of amortization expense | Amortization Year ending December 31, to be 2020 (excluding the nine months ended September 30, 2020) $ 79 2021 315 2022 315 2023 315 2024 315 2025 and thereafter 530 Total $ 1,869 |
Operating Lease (Tables)
Operating Lease (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Operating Lease [Abstract] | |
Schedule of maturities of the lease liability | Year ending December 31, (In thousands of U.S. Dollars) 2020 $ 32 2021 164 2022 109 $ 305 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of total assets and liabilities of discontinued operation | September 30, 2020 December 31, 2019 Total Total Assets Total Hedetang Farm (1) $ 5,343,518 $ 3,367,129 $ 5,353,790 $ 3,237,113 Zhonglian Hengxin (1) - - 1,623 96,924 CCM Logistics (1) - 146,841 - - Digital Online Marketing Limited (1) - - - - SkyPeople Foods Holding Ltd. (1) - - - - HeDeTang HK (2) - - 92,772,786 196,261,748 Total $ 5,343,518 $ 3,513,970 $ 98,128,199 $ 199,595,785 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Schedule of expenses and other payables | September 30, December 31, Acquisition of Intangibles $ 320,267 $ 15,374 Legal fee and other professionals 364,924 361,279 Wages and employee reimbursement 321,350 452,389 Suppliers 254,702 350,992 Accrued interest 67,025 85,600 Accrued tax payable 58,073 77,064 Others 11,756 - Total $ 1,398,097 $ 1,342,698 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognitipon Disclosure [Abstract] | |
Schedule of revenues | Three Months Ended Nine Months Ended * September 30, September 30, September 30, September 30, Revenue Service fees $ 38,109 $ 207,563 $ 348,896 $ 338,469 Sales of Goods 5,548 134,520 8,399 406,508 Total $ 43,657 $ 342,083 $ 357,295 $ 744,977 * Certain reclassifications have been made to the financial statements for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020, with no effect on previously reported net income (loss). |
Business Description (Details)
Business Description (Details) | 1 Months Ended |
Apr. 23, 2020 | |
Business Description [Abstract] | |
Description of business transaction | Future FinTech (Hong Kong) Limited registered GuangChengJi (Shanghai) Industrial Co., Ltd. (“Guangchengji”) with a registered capital of $30 million in Shanghai, China, which needs to be paid before April 22, 2049 when the business license will expire. The business scope of Guangchengji includes wholesaling of electronic components and equipment, metal materials, petroleum products, import and export business, computer software development, information technology, technology consulting and services, business management consulting and supply chain management. On July 22, 2020, the Company established Future Commercial Management (Beijing) Co., Ltd. |
Loan Receivables (Details)
Loan Receivables (Details) - Shenzhen Tiantian Haodian Technology [Member] ¥ in Millions | 1 Months Ended | 9 Months Ended | |
Jun. 28, 2020USD ($) | Jun. 28, 2020CNY (¥) | Sep. 30, 2020USD ($) | |
Loan Receivables (Details) [Line Items] | |||
Invest of cash | $ 5,140,000 | ¥ 35 | |
Annual interest rate | 10.00% | 10.00% | |
Interest income from the loan receivables | $ 99,027 |
Related Party Transaction (Deta
Related Party Transaction (Details) - Schedule of related party transactions from whom amounts were received | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Related Party Transaction [Line Items] | |
Amount | $ 1,517,678 |
Weicheng Pan [Member] | |
Related Party Transaction [Line Items] | |
Amount | $ 374,444 |
Relationship | Legal representative of Guangchengji |
Note | Loan payable |
Shanchun Huang [Member] | |
Related Party Transaction [Line Items] | |
Amount | $ 200,896 |
Relationship | Chief Executive Officer of the Company |
Note | Loan payable |
Kai Xu [Member] | |
Related Party Transaction [Line Items] | |
Amount | $ 16,689 |
Relationship | Chief Operating Officer of the Company |
Note | Payable to employee |
InUnion Chain Ltd. (“INU”) [Member] | |
Related Party Transaction [Line Items] | |
Amount | $ 300,116 |
Relationship | The Company is the 10% equity shareholder of INU |
Note | Accounts payables |
Zhi Yan [Member] | |
Related Party Transaction [Line Items] | |
Amount | $ 65,302 |
Relationship | Chief Technology Officer of the Company |
Note | Loan payable |
Jing chen [Member] | |
Related Party Transaction [Line Items] | |
Amount | $ 6,984 |
Relationship | Chief Financial Officer of the Company |
Note | Payable to employee |
Yongke Xue [Member] | |
Related Party Transaction [Line Items] | |
Amount | $ 230,352 |
Relationship | Chairman of the Company |
Note | Loan payable |
Shenzen TianShunDa Equity Investment Fund Management Co., Ltd. (the “TSD”) [Member] | |
Related Party Transaction [Line Items] | |
Amount | $ 322,895 |
Relationship | TSD holds 26.36% of the equity interest of SkyPoeple (China), a former subsidiary of the Company, which was sold to New Continent International Co., Ltd. on February 27, 2020. |
Note | Accounts payables |
Related Party Transaction (De_2
Related Party Transaction (Details) - Schedule of related party transactions to whom the amounts were paid | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
Related Party Transaction (Details) - Schedule of related party transactions to whom the amounts were paid [Line Items] | ||
Amount | $ 3,170,470 | |
Wealth Index (Beijing) Fund Management Co. Ltd. [Member] | ||
Related Party Transaction (Details) - Schedule of related party transactions to whom the amounts were paid [Line Items] | ||
Amount | $ 14,683 | |
Relationship | The Company's CEO is the legal representative of this company | |
Note | Interest free loan* | |
Shaanxi Chunlv Ecological Agriculture Co., Ltd. [Member] | ||
Related Party Transaction (Details) - Schedule of related party transactions to whom the amounts were paid [Line Items] | ||
Amount | $ 3,089,457 | |
Relationship | Holds 20.0% interest in Chain Cloud Mall Logistics Center (Shaanxi) Co., Limited (CCM Logistics) | |
Note | Including creditor's rights of Shaanxi Youyi Co., Ltd of $3.24 million, which is partially offset by $0.24 million payable to the Company | |
Shaanxi Fullmart Commercial Holdings (Xi’an) Co., Ltd. (“Fullmart Commerical”) [Member] | ||
Related Party Transaction (Details) - Schedule of related party transactions to whom the amounts were paid [Line Items] | ||
Amount | $ 23,935 | |
Relationship | Fullmart Commercial was 100% owned by Xiu Jun Wang, the ex-wife of Yongke Xue, the Chairman of the Company. | |
Note | Service fee due | |
Shaanxi Quangou Convenient Island Co., Ltd. [Member] | ||
Related Party Transaction (Details) - Schedule of related party transactions to whom the amounts were paid [Line Items] | ||
Amount | $ 24,663 | |
Relationship | Fullmart Commercial holds 33.33% its equity | |
Note | Interest free loan* | [1] |
Zeyao Xue [Member] | ||
Related Party Transaction (Details) - Schedule of related party transactions to whom the amounts were paid [Line Items] | ||
Amount | $ 17,732 | |
Relationship | Son of the Chairman of the Company and a major shareholder of the Company of the Company | |
Note | Interest free loan* | [1] |
[1] | The interest free loans and related party transactions have been approved by the Company’s Audit Committee. |
Intangible Assets (Details)
Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Minimum [Member] | |
Intangible Assets (Details) [Line Items] | |
Amortization expense | $ 190 |
Maximum [Member] | |
Intangible Assets (Details) [Line Items] | |
Amortization expense | $ 590 |
CCM [Member] | |
Intangible Assets (Details) [Line Items] | |
Leases Term, Useful life | 10 years |
Accounting Software [Member] | |
Intangible Assets (Details) [Line Items] | |
Leases Term, Useful life | 10 years |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of intangible assets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
CCM [Member] | ||
Cost | $ 1,952,982 | $ 43,004 |
Less: Impairment Loss | (85,046) | (2,114) |
Balance as of September 30, 2020 | 1,867,936 | 40,890 |
Accounting Software [Member] | ||
Cost | 1,292 | |
Less: Impairment Loss | (43) | |
Balance as of September 30, 2020 | $ 1,249 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of amortization expense | Sep. 30, 2020USD ($) |
Schedule of amortization expense [Abstract] | |
2020 (excluding the nine months ended September 30, 2020) | $ 79 |
2021 | 315 |
2022 | 315 |
2023 | 315 |
2024 | 315 |
2025 and thereafter | 530 |
Total | $ 1,869 |
Long Term Investment (Details)
Long Term Investment (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Oct. 19, 2018 | Jun. 22, 2018 | |
Debt Disclosure [Abstract] | ||||
Ownership interest | 10.00% | |||
Purchase price | $ 1,000,000 | $ 15 | ||
Shares issued (in Shares) | 5 | |||
Sale of Stock, Number of Shares Issued in Transaction (in Shares) | 20,000,000 | |||
Debt Instrument, Term | 180 years | |||
Finance lease, impairment loss | $ 2.75 |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) | Jun. 05, 2019 | May 13, 2019 | Oct. 27, 2020 | Feb. 26, 2020 | Feb. 23, 2020 | Jan. 25, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | [1] |
Share Based Compensation (Details) [Line Items] | |||||||||
Consulting fee (in Dollars) | $ 3,000,000 | ||||||||
Restricted shares | 3,750,000 | ||||||||
Common stock price per share (in Dollars per share) | $ 0.794 | ||||||||
Consulting service agreement, description | On February 23, 2020, The Company issued the Consultant Shares pursuant to the Agreement, of which 1,500,000 shares were released to the Consultant immediately, 1,125,000 and 1,125,000 shares, respectively, will be held by the Company and released to the Consultant on January 25, 2021 and January 25, 2022 if this Agreement has not been terminated and there has been no breach of the Agreement by the Consultant at such time. | ||||||||
Stock related compensation expense (in Dollars) | $ 1,191,000 | ||||||||
Issued upon shares related to consultant | 1,500,000 | ||||||||
Stock related compensation shares | 2,250,000 | ||||||||
Common stock shares | 150,000 | 500,000 | |||||||
Unrestricted common stock | 3,000,000 | ||||||||
2020 Omnibus Equity Plan [Member] | |||||||||
Share Based Compensation (Details) [Line Items] | |||||||||
Common stock shares | 5,000,000 | ||||||||
Consulting Service Agreement [Member] | |||||||||
Share Based Compensation (Details) [Line Items] | |||||||||
Stock related compensation expense (in Dollars) | $ 1,790,000 | ||||||||
Stock closing price (in Dollars per share) | $ 0.794 | ||||||||
[1] | Reclassification- certain reclassifications have been made to the statements of cash flow for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020. |
Operating Lease (Details)
Operating Lease (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Aug. 31, 2020 | |
Disclosure Text Block [Abstract] | ||
Lessee, Operating Lease, Term of Contract | 2 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% | |
Lease costs recognized in general administrative expenses | $ 13,000 | |
Proceeds from Lease Payment, Operating Activity | $ 15,038 |
Operating Lease (Details) - Sch
Operating Lease (Details) - Schedule of maturities of the lease liability $ in Thousands | Sep. 30, 2020USD ($) |
Schedule of maturities of the lease liability [Abstract] | |
2020 | $ 32 |
2021 | 164 |
2022 | 109 |
Total | $ 305 |
Convertible Loan Payable (Detai
Convertible Loan Payable (Details) - USD ($) | Jun. 10, 2020 | Mar. 11, 2020 | Jan. 15, 2020 | Jan. 06, 2020 | Jul. 28, 2020 | Apr. 17, 2020 | Dec. 19, 2019 | Sep. 30, 2020 |
Convertible Loan Payable (Details) [Line Items] | ||||||||
Convertible note payable | $ 1,160,000 | |||||||
Iliad [Member] | ||||||||
Convertible Loan Payable (Details) [Line Items] | ||||||||
Note purchase agreement, description | Company entered into a Note Purchase Agreement with Iliad Research and Trading, L.P., a Utah limited partnership (“Iliad”), pursuant to which the Company sold and issued to Iliad a Secured Promissory Note in the principal amount of $1.06 million. Iliad purchased the Note with an original issue discount of $0.05 million, and the Company agreed to pay to Iliad $0.01 million for fees and costs incurred by Iliad in connection with the consummation of the Purchase Agreement. The Note was sold to Iliad pursuant to an exemption from registration under Regulation D, promulgated under the Securities Act of 1933, as amended. The Note is one-year term with an interest rate of 8%. There was no fixed conversation price to the Company’s Common Stock in the agreement. Iliad has converted all the Note Purchased in fiscal year 2019 to the Company’s Common Stock based on the market date on the conversion date. The Company believes that this Note will also be converted into the Company’s Common Stock in future. The Company received proceeds of $0.53 from Iliad on December 23, 2019, and the balance of $0.53 million on January 17, 2020. | |||||||
Standstill agreement, description | Pursuant to the Standstill Agreement, Iliad agreed to refrain and forbear temporarily from making redemptions for the Note that was sold and issued by the Company on December 19, 2019 in the original principal amount of $1.06 million. Iliad agreed not to redeem any portion of the Note (the “Standstill”) for a period beginning on the date of the Agreement and ending on the date that is ninety (90) days from the date of the Agreement. As a material inducement and partial consideration for Iliad’s agreement to enter into the Agreement, the Company agreed that the outstanding balance of the Note shall be increased by nine percent (9%), or $0.10 million, on the date of the Agreement (the “Standstill Fee”). The Company recorded the Standstill Fee of $0.10 million as interest expenses during the third quarter of 2020. | |||||||
Eighth Exchange Agreement [Member] | ||||||||
Convertible Loan Payable (Details) [Line Items] | ||||||||
Original principal amount | $ 145,000 | |||||||
Conversion of stock (in Shares) | 193,333 | |||||||
Ninth Exchange Agreement [Member] | ||||||||
Convertible Loan Payable (Details) [Line Items] | ||||||||
Original principal amount | $ 140,000 | |||||||
Conversion of stock (in Shares) | 186,666 | |||||||
Tenth Exchange Agreement [Member] | ||||||||
Convertible Loan Payable (Details) [Line Items] | ||||||||
Original principal amount | $ 150,000 | |||||||
Conversion of stock (in Shares) | 200,000 | |||||||
Eleventh Exchange Agreement [Member] | ||||||||
Convertible Loan Payable (Details) [Line Items] | ||||||||
Original principal amount | $ 153,750 | |||||||
Conversion of stock (in Shares) | 205,000 | |||||||
Twelfth Exchange Agreement [Member] | ||||||||
Convertible Loan Payable (Details) [Line Items] | ||||||||
Original principal amount | $ 111,486 | |||||||
Conversion of stock (in Shares) | 148,648 |
Common Stocks Issued (Details)
Common Stocks Issued (Details) - USD ($) | Aug. 07, 2020 | Aug. 04, 2020 | Sep. 24, 2020 | Sep. 16, 2020 | Jun. 30, 2020 | Jun. 16, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Jul. 31, 2020 | Jan. 25, 2020 |
Common Stocks Issued (Textual) | ||||||||||
Original principal amount | $ 4,960,000 | |||||||||
Debt owed amount | $ 4,961,000 | |||||||||
Aggregate of shares issued | 2,740,883 | |||||||||
Shares price | $ 1.81 | |||||||||
Closing price of stock | $ 2.52 | |||||||||
Other expenses | $ 1,950,000 | |||||||||
Common stock issued | 2,740,883 | |||||||||
Shares issued | 20,000,000 | |||||||||
Purchase price of per share | $ 0.794 | |||||||||
Securities Purchase Agreement [Member] | Qun Xie [Member] | ||||||||||
Common Stocks Issued (Textual) | ||||||||||
Shares issued | 500,000 | 500,000 | ||||||||
Purchase price of per share | $ 1 | |||||||||
Aggregate offering price | $ 500,000 | $ 500,000 | ||||||||
Securities Purchase Agreement [Member] | Houwu Huang [Member] | ||||||||||
Common Stocks Issued (Textual) | ||||||||||
Shares issued | 224,599 | 224,599 | ||||||||
Purchase price of per share | $ 1.87 | |||||||||
Aggregate offering price | $ 420,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) | Nov. 12, 2020 | Sep. 18, 2019 | Jun. 30, 2020 |
Discontinued Operations (Textual) | |||
Equity transfer agreement, description | the Company entered into an Equity Transfer Agreement with Xi’an Yishengkang Information Technology, Ltd. (“Xi’an Yishengkang”), an unrelated third party, pursuant to which the Company agreed to sell 90% of total issued and outstanding capital stock of Hedetang Farm that it owns to Xi’an Yishengkang at RMB9,000 (approximately $1,324). On the same date, CCM Logistics entered into another Equity Transfer Agreement with an individual and unrelated third party, Liyuan Ying, pursuant to which the Company agreed to sell 10% of its shares of total issued and outstanding capital stock of Hedetang Farm that it owns to Liyuan Ying for RMB1,000 (approximately $147). | the Company signed an Equity Transfer Agreement with Shaanxi Yinlian Huijin Asset Management Co. Ltd. to transfer 65% of the equity shares of Zhonglian Hengxin at zero consideration. The net liabilities of Zhonglian Hengxin are $0.15 million. The Company recorded a gain on sale of subsidiary of $0.15 million in the third quarter of 2020. | |
Discontinued operation, description | Pursuant to the terms of the Agreement, the Buyer purchased 100% ownership of HeDeTang HK, which value is primarily derived from HeDeTang HK’s wholly-owned subsidiary HeDeJiaChuan Holdings Co., Ltd. and 73.41% owned subsidiary SkyPeople Juice Group Co., Ltd., for a total price of RMB 600,000 (approximately $85,714) (the “Sale Transaction”). The Sale Transaction was closed on February 27, 2020. In accordance with ASC Topic 205, Presentation of Financial Statement Discontinued Operations (“ASC Topic 205”), the Company presented the operation results from HeDeTang HK and its subsidiaries as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. The total assets of HeDeTang HK were $106.85 million as of February 27, 2020 and the total liabilities of HeDeTang HK were $231.21 million as of February 27, 2020, resulting in a gain on disposal of $123.69 million. There was no income or loss from HeDeTang HK from January 1, 2020 to the sale. |
Discontinued Operations (Deta_2
Discontinued Operations (Details) - Schedule of total assets and liabilities of discontinued operation - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Assets | $ 5,343,518 | $ 98,128,199 |
Total Liabilities | 3,513,970 | 199,595,785 |
Hedetang Farm [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Assets | 5,343,518 | 5,353,790 |
Total Liabilities | 3,367,129 | 3,237,113 |
Zhonglian Hengxin [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Assets | 1,623 | |
Total Liabilities | 96,924 | |
CCM Logistics [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Assets | ||
Total Liabilities | 146,841 | |
Digital Online Marketing Limited [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Assets | ||
Total Liabilities | ||
SkyPeople Foods Holding Ltd. [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Assets | ||
Total Liabilities | ||
HeDeTang HK [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Assets | 92,772,786 | |
Total Liabilities | $ 196,261,748 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of expenses and other payables - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of expenses and other payables [Abstract] | ||
Acquisition of Intangibles | $ 320,267 | $ 15,374 |
Legal fee and other professionals | 364,924 | 361,279 |
Wages and employee reimbursement | 321,350 | 452,389 |
Suppliers | 254,702 | 350,992 |
Accrued interest | 67,025 | 85,600 |
Accrued tax payable | 58,073 | 77,064 |
Others | 11,756 | |
Total | $ 1,398,097 | $ 1,342,698 |
Loan Payable (Details)
Loan Payable (Details) | Jun. 05, 2019shares | May 13, 2019shares | Oct. 27, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Jun. 15, 2020USD ($) | Jan. 25, 2020$ / shares |
Loans payable | $ 860,000 | |||||
Debt instrument, convertible, threshold consecutive trading days | 200,000 | |||||
Working capital | $ 0.68 | |||||
Stock issued (in Shares) | shares | 150,000 | 500,000 | ||||
Share per price (in Dollars per share) | $ / shares | $ 0.794 | |||||
Subsequent Event [Member] | ||||||
Debt repay amount | $ 320,000 | |||||
Stock issued (in Shares) | shares | 160,000 | |||||
Share per price (in Dollars per share) | $ / shares | $ 2 | |||||
Subsequent event, description | As the closing price of the Company stock was $2.23 on October 27, the Company recognized loss of $0.04 million in other expenses during the fourth quarter of 2020. | |||||
Shenzhen Wangjv Trading Co., Ltd [Member] | ||||||
Loans payable | 5,870 | |||||
Termination loans | $ 210,000 | |||||
Interest rate | 8.00% | |||||
Shenzhen Wangjv Trading Co., Ltd [Member] | ||||||
Loans payable | 170,000 | |||||
Interest free loan amount | 170,000 | |||||
Hedetang Market [Member] | ||||||
Market borrowed | $ 680,000 |
Revenues (Details) - Schedule o
Revenues (Details) - Schedule of revenues - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Revenue | ||||||
Service fees | $ 38,109 | $ 207,563 | $ 348,896 | $ 338,469 | ||
Sales of Goods | 5,548 | 134,520 | 8,399 | 406,508 | ||
Total | $ 43,657 | $ 342,083 | [1] | $ 357,295 | $ 744,977 | [1] |
[1] | Reclassification- certain reclassifications have been made to the financial statements for the period ended September 30, 2019 to conform to the presentation for the period ended September 30, 2020, with no effect on previously reported net income (loss). |
Commitments and Contingencies (
Commitments and Contingencies (Details) ¥ in Thousands, $ in Thousands | Jul. 13, 2020 | Sep. 05, 2018 | Aug. 31, 2017USD ($) | Sep. 30, 2014 | Jan. 31, 2014 | Sep. 30, 2020 | Aug. 31, 2017CNY (¥) |
Commitments and Contingencies (Textual) | |||||||
Percentage of shareholder | 90.00% | ||||||
Percentage of issued and outstanding ordinary shares | 90.00% | ||||||
Litigation, description | Beijing Intermediate Court had two hearings of the case and on March 21, 2018, and it ruled in favor of Cinda to the effect that SkyPeople China and Guoweimei shall pay leasing fees due in the amount of RMB 21.00 million (approximately $3.05 million), as well as leasing fees not yet due in the amount of RMB 63.98 million (approximately $9.30 million), plus attorney’s fees and expenses. | ||||||
China Cinda Asset Management Co., Ltd. [Member] | |||||||
Commitments and Contingencies (Textual) | |||||||
Purchase agreement, description | (i) the aggregate purchase price for Nice Shares shall be HK$54 million (approximately $6.97 million, the “Purchase Price”) and it shall be paid in the Company’s Common Stock; (ii) 40% of the Purchase Price HK$21.6 million (approximately $2.79 million) shall be paid in the shares of common stock of the Company based on the average closing price of the Company’s Common Stock listed on Nasdaq Stock Exchange for the ten (10) trading days prior to the date of the Agreement and the foreign exchange rate between HK$ and US$ shall be the rate published by Bloomberg on the date of the Agreement; (iii) 30% of Purchase Price shall be paid in the Company Common Stock (the “2020 Earn-Out Shares”) if Nice meets certain earnings goal for 2020 (the “2020 Earnings Goal”); (iv) the 2020 Earn-Out Shares shall be issued based upon the average closing price of the Company’s Common Stock listed on Nasdaq Stock Exchange for the ten (10) trading days prior to December 31, 2020 and the exchange rate between HK$ and US$ shall be the rate published by Bloomberg on December 31, 2020; (v) additional 30% of Purchase Price shall be paid in the shares of common stock the Company (the “2021 Earn-Out Shares”) if Nice meets certain earnings goal for 2021 (the “2021 Earnings Goal”); (vi) the 2021 Earn-Out Shares shall be issued based upon the average closing price of the Company’s Common Stock listed on Nasdaq Stock Exchange for the ten (10) trading days prior to December 31, 2021 and the exchange rate between HK$ and US$ shall be the rate published by Bloomberg on December 31, 2021; (vii) if Nice does not achieve its earnings goal for a given year, the parties agree to have forbearance clause that the amount of such year’s earn-out shares shall not be reduced for that year if Nice achieves at least sixty percent (60%) of its given year earnings goal and if Nice achieves lower than 60% earnings goal for a given year, the amount of such year’s earn-out shares shall be reduced to zero. The Company Shares will be issued pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. This transaction is subject to the approval of the Security and Futures Commission of Hong Kong. As of the date of this report, the transaction is still pending. | ||||||
Shaanxi Zhongkun Construction Co. Ltd. [Member] | |||||||
Commitments and Contingencies (Textual) | |||||||
Litigation, description | The Court issued a civil judgement in November 2018, ordering Hedetang Market to pay project funds of RMB 1.65 million (approximately $0.24 million) to Zhongkun, plus interest. | ||||||
Cinda Capital Financing Co. Ltd. [Member] | |||||||
Commitments and Contingencies (Textual) | |||||||
Lease, description | Lessees repay RMB 50 million (approximately $7.27 million) in capital lease fees, plus interest. Cinda purchased or paid for refrigerant warehouse and trading hall to the suppliers and vendors and agreed to lease them to the Lessees for a leasing fee of RMB 50 million in December 2016. | ||||||
Lessees repayment | $ 12,350 | ¥ 84,970 | |||||
Shaanxi Zhongcai Pawn Co. Ltd. [Member] | |||||||
Commitments and Contingencies (Textual) | |||||||
Lease, description | Pursuant to the loan agreement, Hedetang Market borrowed $1.84 million from Zhongcai at the monthly interest rate of 0.4%. Hedetang Market provided its land use right as a pledge for the loan. Hedetang Market did not return the principal and interest on time pursuant to the loan agreement. Zhongcai filed an enforcement request with Xi’an Intermediate People’s Court in July 2015. In August 2017, Xi’an Intermediate People’s Court issued a verdict to seize the pledged land use rights of Hedetang Market for auction. As of the date of this report, the auction sale was not successful. The Company recorded the unpaid amount of $1.84 million as loan payable. |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Nov. 02, 2020 | Oct. 27, 2020 |
Subsequent Events (Details) [Line Items] | ||
Shares issued | 167,034 | |
Shares per value | $ 2 | |
Securities Purchase Agreement [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Shares per value | $ 1.87 | |
Proceeds from issuance of private placement | $ 312,352 |