Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 16, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Future FinTech Group Inc. | |
Trading Symbol | FTFT | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 70,067,147 | |
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, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | true | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-34502 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 98-0222013 | |
Entity Address, Address Line One | Americas Tower | |
Entity Address, Address Line Two | 1177 Avenue of The Americas | |
Entity Address, Address Line Three | Suite 5100 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | N/A | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
City Area Code | 888 | |
Local Phone Number | 622-1218 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 52,968,840 | $ 9,425,312 |
Accounts receivable, net | 9,440,709 | |
Advances to suppliers and other current assets | 5,661,026 | 15,244 |
Loan receivables | 6,308,385 | |
Other receivables, net | 1,815,206 | 81,972 |
Amounts due from related parties | 354,666 | 32,066 |
Assets related to discontinued operations | 23,901 | 6,041,846 |
Total current assets | 76,572,733 | 15,596,440 |
Property, plant and equipment, net | 626,709 | 2,679 |
Right of Use Assets | 157,751 | 291,379 |
Intangible assets | 37,723 | 41,214 |
Goodwill | 16,727,897 | |
Total non-current assets | 17,550,080 | 335,272 |
Total assets | 94,122,813 | 15,931,712 |
Current liabilities | ||
Accounts payable | 1,211,121 | 76 |
Accrued expenses and other payables | 308,032 | 1,754,451 |
Advances from customers | 2,844 | 28,962 |
Convertible note payables | 1,163,146 | |
Loan payables | 185,031 | 183,911 |
Lease liability-current | 157,751 | 180,803 |
Amounts due to related parties | 574,318 | 1,523,551 |
Liabilities related to discontinued operations | 996,799 | 2,255,096 |
Total current liabilities | 3,435,896 | 7,089,996 |
Lease liability-non-current | 110,575 | |
Deferred liabilities | 7,007,512 | |
Total non-current liabilities | 7,007,512 | 110,575 |
Total liabilities | 10,443,408 | 7,200,571 |
Commitments and contingencies (Note 23) | ||
Future FinTech Group, Inc, Stockholders’ equity | ||
Common stock, $0.001 par value; 300,000,000 shares authorized; 70,067,147 shares and 50,053,606 shares issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | 70,067 | 50,053 |
Additional paid-in capital | 220,523,246 | 133,510,862 |
Accumulated deficits | (135,895,273) | (124,384,301) |
Accumulated other comprehensive loss | (787,184) | (398,014) |
Total Future FinTech Group, Inc. stockholders’ equity | 83,910,856 | 8,778,600 |
Non-controlling interests | (231,451) | (47,459) |
Total stockholders’ equity | 83,679,405 | 8,731,141 |
Total liabilities and stockholders’ equity | $ 94,122,813 | $ 15,931,712 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 70,067,147 | 50,053,606 |
Common stock, shares outstanding | 70,067,147 | 50,053,606 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | [1] | Sep. 30, 2021 | Sep. 30, 2020 | [1] | |
Income Statement [Abstract] | ||||||
Revenue | $ 11,745,027 | $ 43,450 | $ 12,503,894 | $ 355,700 | ||
Cost of goods sold | 10,761,943 | 13,394 | 12,064,511 | 23,451 | ||
Gross profit | 983,084 | 30,056 | 439,383 | 332,249 | ||
Operating Expenses | ||||||
General and administrative expenses | 2,243,169 | 643,370 | 4,567,813 | 2,817,657 | ||
Stock compensation expense | 5,487,930 | 5,487,930 | ||||
Selling expenses | 112,412 | 25,796 | 135,448 | 44,200 | ||
(Recovery) Provision for doubtful debts | 52,706 | (15,255) | 243,022 | |||
Total operating expenses | 7,843,511 | 721,872 | 10,175,936 | 3,104,879 | ||
Loss from operations | (6,860,427) | (691,816) | (9,736,553) | (2,772,630) | ||
Other (expenses) income | ||||||
Interest income | 100,521 | 56 | 110,090 | 213 | ||
Interest expenses | (289,432) | (3,913) | (343,206) | |||
Loss on debt settlement and conversion | (1,946,028) | (2,562,504) | ||||
Other (expenses) income, net | 125,520 | 531,255 | 582,728 | 28,023 | ||
Total other income (expenses), net | 226,041 | (1,704,149) | 688,905 | (2,877,474) | ||
Loss from Continuing Operations before Income Tax | (6,634,386) | (2,395,965) | (9,047,648) | (5,650,104) | ||
Income tax provision | ||||||
Loss from Continuing Operations | (6,634,386) | (2,395,965) | (9,047,648) | (5,650,104) | ||
Discontinued Operations (Note 21) | ||||||
Gain (loss) on disposal of discontinued operations | (3,679,447) | 115,947 | (3,523,652) | 119,582,658 | ||
Income (loss) from discontinued operations | (180,344) | (158,909) | 876,336 | (318,602) | ||
NET INCOME (LOSS) | (10,494,177) | (2,438,927) | (11,694,964) | 113,613,952 | ||
Less: Net Loss attributable to non-controlling interests | (183,992) | 62 | (183,992) | |||
Net income(loss) from discontinued operations attributable to Future Fintech Group, Inc. | (10,310,185) | (2,438,989) | (11,510,972) | 113,613,952 | ||
Other comprehensive income (loss) | ||||||
Income (loss) from continued operations | (6,634,386) | (2,395,965) | (9,047,648) | (5,650,104) | ||
Foreign currency translation – continued operations | (554,495) | (229,938) | (457,339) | 1,229,682 | ||
Comprehensive income (loss) - continued operation | (7,188,881) | (2,625,903) | (9,504,987) | (4,420,422) | ||
Income (loss) from discontinued operations | (3,859,791) | (42,962) | (2,647,316) | 119,264,056 | ||
Foreign currency translation – discontinued operations | 133,368 | 93 | 68,169 | (10,781,209) | ||
Comprehensive income (loss) - discontinued operation | (3,726,423) | (42,869) | (2,579,147) | 108,482,847 | ||
Comprehensive Income (Loss) | (10,915,304) | (2,668,772) | (12,084,134) | 104,062,425 | ||
Less: Net loss attributable to non-controlling interests | (183,992) | 62 | (183,992) | |||
COMPREHENSIVE LOSS ATTRIBUTABLE TO FUTURE FINTECH GROUP INC. STOCKHOLDERS | $ (10,731,312) | $ (2,668,834) | $ (11,900,142) | $ 104,062,425 | ||
Earnings per share: | ||||||
Basic earnings per share from continued operation (in Dollars per share) | $ (0.1) | $ (0.07) | $ (0.14) | $ (0.15) | ||
Basic earnings per share from discontinued operation (in Dollars per share) | (0.06) | (0.04) | 3.22 | |||
Basic earnings per share, total (in Dollars per share) | (0.16) | (0.07) | (0.18) | 3.07 | ||
Diluted earnings per share from continued operation (in Dollars per share) | (0.1) | (0.07) | (0.14) | (0.15) | ||
Diluted earnings per share from discontinued operation (in Dollars per share) | (0.06) | (0.04) | 3.17 | |||
Diluted earnings per share, total (in Dollars per share) | $ (0.16) | $ (0.07) | $ (0.18) | $ 3.02 | ||
Weighted average number of shares outstanding | ||||||
Basic (in Shares) | 66,457,193 | 35,175,728 | 63,728,685 | 36,982,973 | ||
Diluted (in Shares) | 67,014,984 | 35,845,251 | 64,286,476 | 37,652,496 | ||
[1] | Reclassification |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) | Common Stock | Additional paid-in capital | Retained earnings | Accumulative other comprehensive income | Non- controlling interests | Total |
Balance beginning at Dec. 31, 2019 | $ 33,810 | $ 107,852,827 | $ (213,314,612) | $ 12,989,408 | $ 4,361,361 | $ (88,077,206) |
Balance beginning (in Shares) at Dec. 31, 2019 | 33,810,416 | |||||
Issuance of common stocks for conversion of debts | $ 3,674 | 8,220,065 | 8,223,739 | |||
Issuance of common stocks for conversion of debts (in Shares) | 3,674,530 | |||||
Issuance of common stocks - cash | $ 725 | 919,276 | 920,001 | |||
Issuance of common stocks - cash (in Shares) | 724,599 | |||||
Net income from continued operations | (5,650,104) | (5,650,104) | ||||
Net income from discontinued operations | (318,602) | (318,602) | ||||
Share-based payments-service | $ 3,750 | 1,187,250 | 1,191,000 | |||
Share-based payments-service (in Shares) | 3,750,000 | |||||
Foreign currency translation adjustment | 1,229,682 | 1,229,682 | ||||
Disposal of discontinued operation | 119,582,658 | (10,781,209) | (6,368,158) | 102,433,291 | ||
Balance ending at Sep. 30, 2020 | $ 41,959 | 118,179,418 | (99,700,660) | 3,437,881 | (2,006,797) | 19,951,801 |
Balance ending (in Shares) at Sep. 30, 2020 | 41,959,545 | |||||
Balance beginning at Jun. 30, 2020 | $ 38,494 | 110,355,855 | (97,261,671) | 3,667,726 | (2,088,945) | 14,711,459 |
Balance beginning (in Shares) at Jun. 30, 2020 | 38,494,063 | |||||
Issuance of common stocks for conversion of debts | $ 2,740 | 6,904,287 | 6,907,027 | |||
Issuance of common stocks for conversion of debts (in Shares) | 2,740,883 | |||||
Issuance of common stocks - cash | $ 725 | 919,276 | 920,001 | |||
Issuance of common stocks - cash (in Shares) | 724,599 | |||||
Net income from continued operations | (2,396,027) | 62 | (2,395,965) | |||
Net income from discontinued operations | (158,909) | (158,909) | ||||
Foreign currency translation adjustment | (229,938) | (229,938) | ||||
Disposal of discontinued operation | 115,947 | 93 | 82,086 | 198,126 | ||
Balance ending at Sep. 30, 2020 | $ 41,959 | 118,179,418 | (99,700,660) | 3,437,881 | (2,006,797) | 19,951,801 |
Balance ending (in Shares) at Sep. 30, 2020 | 41,959,545 | |||||
Balance beginning at Dec. 31, 2020 | $ 50,053 | 133,510,862 | (124,384,301) | (398,014) | (47,459) | 8,731,141 |
Balance beginning (in Shares) at Dec. 31, 2020 | 50,053,606 | |||||
Issuance of common stocks - cash | $ 15,816 | 69,414,623 | 69,430,439 | |||
Issuance of common stocks - cash (in Shares) | 15,815,155 | |||||
Issuance of common stocks-non cash | $ 2,245 | 11,218,534 | 11,220,779 | |||
Issuance of common stocks-non cash (in Shares) | 2,245,386 | |||||
Net income from continued operations | (8,863,656) | (183,992) | (9,047,648) | |||
Net income from discontinued operations | 876,336 | 876,336 | ||||
Share-based payments-service | 893,250 | 893,250 | ||||
Share-based payments-omnibus equity plan | $ 1,953 | 5,485,977 | 5,487,930 | |||
Share-based payments-omnibus equity plan (in Shares) | 1,953,000 | |||||
Foreign currency translation adjustment | (457,339) | (457,339) | ||||
Disposal of discontinued operation | (3,523,652) | 68,169 | (3,455,483) | |||
Balance ending at Sep. 30, 2021 | $ 70,067 | 220,523,246 | (135,895,273) | (787,184) | (231,451) | 83,679,405 |
Balance ending (in Shares) at Sep. 30, 2021 | 70,067,147 | |||||
Balance beginning at Jun. 30, 2021 | $ 65,321 | 202,266,182 | (125,585,088) | (366,057) | (47,459) | 76,332,899 |
Balance beginning (in Shares) at Jun. 30, 2021 | 65,321,192 | |||||
Issuance of common stocks - cash | $ 549 | 1,552,552 | 1,553,101 | |||
Issuance of common stocks - cash (in Shares) | 548,799 | |||||
Issuance of common stocks-non cash | $ 2,244 | 11,218,535 | 11,220,779 | |||
Issuance of common stocks-non cash (in Shares) | 2,244,156 | |||||
Net income from continued operations | (6,450,394) | (183,992) | (6,634,386) | |||
Net income from discontinued operations | (180,344) | (180,344) | ||||
Share-based payments-omnibus equity plan | $ 1,953 | 5,485,977 | 5,487,930 | |||
Share-based payments-omnibus equity plan (in Shares) | 1,953,000 | |||||
Foreign currency translation adjustment | (554,495) | (554,495) | ||||
Disposal of discontinued operation | (3,679,447) | 133,368 | (3,546,079) | |||
Balance ending at Sep. 30, 2021 | $ 70,067 | $ 220,523,246 | $ (135,895,273) | $ (787,184) | $ (231,451) | $ 83,679,405 |
Balance ending (in Shares) at Sep. 30, 2021 | 70,067,147 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (11,694,964) | $ 113,613,952 |
Net income from discontinued operation | (2,647,316) | 119,264,056 |
Net loss from continuing operations | (9,047,648) | (5,650,104) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 14,018 | 1,073 |
Amortization | 3,750 | 80,733 |
Provision for doubtful debts | (15,255) | 243,022 |
Share-based payments | 6,381,180 | 1,191,000 |
Interest expenses related to convertible note | (96,691) | |
Changes in operating assets and liabilities | ||
Accounts receivable | (8,290,510) | |
Inventory | 156 | |
Other receivable | (1,690,100) | 3,901,022 |
Advances to suppliers and other current assets | (5,642,045) | 1,627,148 |
Accounts payable | 1,211,045 | 439 |
Due to related parties | ||
Accrued expenses | (1,398,587) | (688,037) |
Advances from customers | (26,118) | (342,511) |
Proceeds from amounts due from related parties, net | 319,953 | 197,476 |
Repayment of amounts due to related parties, net | (1,535,238) | |
Net Cash Used in Operating Activities – Continued Operations | (19,812,246) | 561,417 |
Net Cash Used in Operating Activities – Discontinued Operations | 2,222,678 | (9,543,323) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (614,720) | (2,944) |
Payment for Loan receivables | (6,308,385) | |
Acquisition of a subsidiary - NTAM, net of cash | 275,427 | |
Disposal of a subsidiary - Guangchengji, net of cash | (59,255) | |
Purchase of intangible assets | (1,860,606) | |
Net Cash Used in Investing Activities from Discontinued Operations | (6,706,933) | (1,863,550) |
Net Cash Used in Investing Activities from Continuing Operations | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of common stock, net of issuance costs | 69,430,439 | 920,001 |
Proceeds from loan payable | 746,663 | |
Proceeds from secured convertible promissory note | 8,425,685 | |
Repayment of convertible payable | (1,163,146) | |
Net cash provided by financing activities | 68,267,293 | 10,092,349 |
Effect of change in exchange rate | (426,748) | 1,183,939 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 43,544,044 | 430,832 |
Cash and cash equivalents, beginning of period | 9,425,312 | 526,844 |
Cash and cash equivalents, end of period | 52,969,356 | 957,676 |
Less: Cash and cash equivalents from the discontinued operations, end of period | 516 | 933,822 |
Cash and cash equivalents, from the continuing operations end of period | 52,968,840 | 23,854 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ||
Issuance of common stocks (Note 9) | 11,220,779 | |
Deferred liabilities (Note 9) | 7,007,512 | |
Debt settlement by issuance of common stock | 4,961,000 | |
Issuance of common stocks for conversion of debts | $ 700,236 |
Corporate Information
Corporate Information | 9 Months Ended |
Sep. 30, 2021 | |
Corporate Information [Abstract] | |
CORPORATE INFORMATION | 1. CORPORATE INFORMATION Future FinTech Group Inc. (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, website: http://gksharedmall.com/), which is based on blockchain technology; supply chain financing services and trading; a blockchain-based application incubator; and technical service and support for blockchain based assets and their operating entities; 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, supply chain financing services and trading and financial technology services. On July 22, 2020, the Company established Future Commercial Management (Beijing) Co., Ltd. Its business includes management and consulting services. On May 11, 2021, the Company established Future Supply (Chengdu) Co., Ltd. Its business is coal supply chain financing services and trading. On May 21, 2021, the Company established Future Big Data (Chengdu) Co., Ltd. in Chengdu, China. Its business includes big data technology and industrial internet data services. On June 8, 2021, the Company established Tianjin Future Private Equity Fund Management Partnership (Limited Partnership) in Tianjin, China. Its business is mainly external equity investment. June 14, 2021, the Company established Future FinTech Labs Inc. in New York to serve as its global R&D and technical support center. On June 24, 2021, the Company established FTFT Capital Investments L.L.C. in Dubai, United Arab Emirates. Its business is to serve institutional investors and high net worth individuals. On July 5, 2021, the Company established Future Fintech Digital Capital Management, LLC, in the State of Connecticut, which provides investment advisory services. On August 2, 2021, the Company incorporated FTFT UK Limited in United Kingdom as serve as its operating base to develop fintech business in Europe. On August 6, 2021, the Company acquired 90% equity interest of Nice Talent Asset Management Limited which mainly provides assets and wealth management services. On August 11, 2021, the Company established Future Private Equity Fund Management (Hainan) Co., Ltd. Its business is investment fund management. The Company’s business and operations are principally conducted by its subsidiaries and its blockchain based e-commerce platform business is conducted through its Variable Interest Entity (“VIE”) - Cloud Chain E-Commerce (Tianjin) Co., Ltd., formerly known as Chain Cloud Mall E-Commerce (Tianjin) Co., Ltd. (“E-Commerce Tianjin”) in the PRC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2021 and the results of operations and cash flows for the periods ended September 30, 2021 and 2020. 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, 2021 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2021. The balance sheet of December 31, 2020 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”) Cloud Chain Network and Technology (Tianjin) Co., Limited, formerly known as Chain Cloud Mall Network and Technology (Tianjin) Co., Limited (“CCM Tianjin”) 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, 2020 as included in our Annual Report on Form 10-K. Discontinued Operations On February 27, 2020, SkyPeople Foods Holding Limited(the “Seller”) completed the transfer of its ownership of HeDeTang Holdings (HK) Ltd. (“HeDeTang HK”) to New Continent International Co., Ltd. (the “Buyer”), an unrelated third party and a company incorporated in the British Virgin Islands for a total price of RMB 0.6 million (approximately $85,714), pursuant to a Share Transfer Agreement entered into by the Seller and the Buyer on September 18, 2019 and approved at the special shareholders meeting of the Company on February 26, 2020. As the Company believed that no continued cash flow would be generated by the sold component, in accordance with ASC 205-20, the Company presented the operating results from Hedetang HK as discontinued operations within the accompanying consolidated financial statements. In addition, Company’s Huludao Wonder operation, a subsidiary which produced concentrated apple juice, suffered continued operating losses from 2014 to 2016 and its cash flow was minimal for these three years. In December 2016, the Company established a winding-down plan to close this operation. Based on the restructuring plan and in accordance with ASC 205-20, the Company presented the operating results from Huludao Wonder as a discontinued operation. On March 11, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Future Supply Chain limited and Zhonglian Hengxin Assets Management Co., Ltd (“Zhonglian Hengxin”) and close the operation of Digital Online Marketing Limited, SkyPeople Foods Holding Limited. and Chain Future Digital Tech (Beijing) Co., Ltd. On March 18, 2021, Chain Future Digital Tech (Beijing) Co., Ltd. was dissolved and deregistered with local government. On May 7, 2020, Future Business Management Co., Ltd. completed the transfer of its ownership of Zhonglian Hengxin Assets Management Co., Ltd to individual third party. On July 24, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Hedetang Farm Products Trading Markets (Mei County) Co., Ltd. and close the operation of Chain Cloud Mall Logistics Center (Shaanxi) Co., Ltd. As a result, Skypeople Foods Holding Limited was dissolved on July 27, 2020; Digital Online Marketing Limited Company was deregistered on July 28, 2020; On October 31, 2020, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited and Chain Cloud Mall Logistics Center (Shanxi) Co., Ltd. completed the transfer of their ownership of Hedetang Farm Products Trading Markets (Mei country) Co., Ltd. to third parties. On April 19, 2021, FT Commercial Management (Beijing) Co., Ltd. was dissolved and deregistered. On August 2, 2021, the Company sold Guangchengji (Guangdong) Industrial Co., Ltd. to an unrelated third party. On September 2, 2021, Future Supply Chain Co., Ltd. discontinued its operations. Based on the disposal plan and in accordance with ASC 205-20, the Company presented the operating results from these operations as a discontinued operation. Segment Information Reclassification Historically, the Company operated in five segments: concentrated apple juice and apple aroma, concentrated kiwifruit juice and kiwifruit puree, concentrated pear juice, fruit juice beverages, and others. As the Company classified the juice related operation into discontinued operation in the beginning of year 2019, and in accordance with the Company’s new business strategy, the Company classified business segment into CCM Shopping Mall Membership, sales of goods, asset management service , 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. 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 and may continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. These factors raise substantial doubts about the Company’s ability to continue as a going concern. The Company has raised funds through issuance of convertible notes and common stock. 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. Impairment of Long-Lived Assets In accordance with the ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Fair Value of Financial Instruments The Company has adopted FASB ASC Topic on Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable input, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Input other than Level 1 that is observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other input that is observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable input that is supported by little or no market activity and that is significant to the fair value of the assets or liabilities. Our cash and cash equivalents and restricted cash are classified within level 1 of the fair value hierarchy because they are value using quoted market price. Earnings (Loss) Per Share Under ASC 260-10, Earnings Per Share Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table. Three Months ended September 30, 2021: Income Share Pre-share Loss from continuing operations $ (6,634,386 ) 66,457,193 $ (0.10 ) Income from discontinuing operations $ (3,859,791 ) 66,457,193 $ (0.06 ) Basic EPS: Loss available to common stockholders from continuing operations $ (6,634,386 ) 66,457,193 $ (0.10 ) Income available to common stockholders from discontinuing operations $ (3,859,791 ) 66,457,193 $ (0.06 ) Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (6,634,386 ) 67,014,984 $ (0.10 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations $ (3,859,791 ) 67,014,984 $ (0.06 ) Three Months ended September 30, 2020: Income Share Pre-share Loss from continuing operations $ (2,395,965 ) 35,175,728 $ (0.07 ) Income from discontinuing operations $ (42,962 ) 35,175,728 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (2,395,965 ) 35,175,728 $ (0.07 ) Income available to common stockholders from discontinuing operations $ (42,962 ) 35,175,728 $ - Dilutive EPS: Warrants - 669,523 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (2,395,965 ) 35,845,251 $ (0.07 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ (42,962 ) 35,845,251 $ - For the nine months ended September 30, 2021: Income Share Pre-share Loss from continuing operations $ (9,047,648 ) 63,728,685 $ (0.14 ) Income from discontinuing operations $ (2,647,316 ) 63,728,685 $ (0.04 ) Basic EPS: Loss available to common stockholders from continuing operations $ (9,047,648 ) 63,728,685 $ (0.14 ) Income available to common stockholders from discontinuing operations $ (2,647,316 ) 63,728,685 $ (0.04 ) Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (9,047,648 ) 64,286,476 $ (0.14 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ (2,647,316 ) 64,286,476 $ (0.04 ) For the nine months ended September 30, 2020: Income Share Pre-share Loss from continuing operations $ (5,650,104 ) 36,982,973 $ (0.15 ) Income from discontinuing operations $ 119,264,056 36,982,973 $ 3.22 Basic EPS: Loss available to common stockholders from continuing operations $ (5,650,104 ) 36,982,973 $ (0.15 ) Income available to common stockholders from discontinuing operations $ 119,264,056 36,982,973 $ 3.22 Dilutive EPS: Warrants - 669,523 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (5,650,104 ) 37,652,496 $ (0.15 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ 119,264,056 37,652,496 $ 3.17 Cash and Cash Equivalents Cash and cash equivalents included cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original maturity of three months or less. Deposits in banks in the PRC are only insured by the government up to RMB500,000, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. Receivable and Allowances Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We extend credit to our customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required. Other receivables, and loan receivables are recognized and carried at the initial amount when occurred less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable impairment losses in our existing receivable. We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary. Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we should abandon such efforts. The Company has assessed its receivable including credit term and corresponding all its receivables in September 2021. Upon such credit terms, bad debt expense was $(15,255) and $0.24 million during the nine months ended September 30, 2021 and 2020, respectively. There is no accounts receivable balance overdue for over 90 days as of September 30, 2021 and December 31, 2020 Inventories Inventories consist of raw materials, packaging materials (which include ingredients and supplies) and finished goods (which) include finished juice in the bottling, canning operations and other. Inventories also consist of merchant gift package to be delivered with the new membership signed up in our e-commerce platform. Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are written off. Revenue Recognition We apply the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We assess its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. We allocate the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. We do not make any significant judgment in evaluating when control is transferred. Revenue is recorded net of value-added tax. Revenue recognitions are as follows: Online sales and membership fee: The Company recognizes the sale of goods 15 days after the products are shipped (after the 15 days return policy). The revenue from the membership fee is amortized over the lifetime of the membership, which is one year. For the merchandise gift package, revenue is recognized when the receipt of the gift package is confirmed by the members. Other revenues include revenues earned on net basis from sales of certain products on our platform. During the second quarter of 2021, the Company has transformed its member based business model to sales agent based business model for its online shopping mall. Sales of coals and aluminum ingots The Company recognize revenue when the receipt of merchandise is confirmed by the customers, which is the point that the title of the goods is transferred to the customer. Asset Management Service The company recognition of service revenue when a service is completed, the company issues billing to its customers and recognizes revenue according to the billing. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are expensed as incurred. Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Depreciation related to property, plant and equipment used in production is reported in cost of sales, and includes amortized amounts related to capital leases. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows: Machinery and equipment 5-10 years Furniture and office equipment 3-5 years Motor vehicles 5 years Leasehold Improvement 3 years Intangible Assets Acquired intangible assets are recognized based on their cost to the Company, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s book. These assets are amortized over their useful lives if the assets are deemed to have a finite life and they are reviewed for impairment by testing for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The fair value of an intangible asset is the amount that would be determined if the entity used the assumptions that market participants would use if they were pricing the intangible asset. The useful life of the Company’s intangible assets is ten years, which is determined by using the time period that an intangible is estimated to contribute directly or indirectly to a Company’s future cash flows. Foreign Currency and Other Comprehensive Income (Loss) The financial statements of the Company’s foreign subsidiaries and VIE are measured using the local currency as the functional currency; however, the reporting currency of the Company is the USD. Assets and liabilities of the Company’s foreign subsidiaries and VIE have been translated into USD using the exchange rate at the balance sheet dates, while equity accounts are translated using historical exchange rate. The exchange rate we used to convert RMB to USD was 6.49 and 6.52 at the balance sheet dates of September 30, 2021 and December 31, 2020, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 6.47 and 6.99 for nine months ended September 30, 2021 and 2020, respectively. Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-25 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Goodwill The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value. The company will perform annual goodwill impairment test end of the fiscal year. Lease After adoption of ASC 842 and related standards, which introduced a lessee model that requires entities to recognize assets and liabilities for most leases, but recognize expenses on their income statements in a manner similar to current accounting, thus operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For short-term leases with an initial lease term of 12 months or less and with purchase options we are reasonably certain will not be exercised. As a lessee, the Company leases equipment and office building. Lease expense is recognized on a straight-line basis over the lease term. Convertible notes The Company accounts for its convertible notes at issuance by allocating the proceeds received from a convertible note among freestanding instruments according to ASC 470, Debt, based upon their relative fair values. The fair value of debt and common stock is determined based on the closing price of the common stock on the date of the transaction. Convertible notes are subsequently carried at amortized cost. Each convertible note is analyzed for the existence of a beneficial conversion feature (“BCF”), defined as the fair value of the common stock at the commitment date for the convertible note, less the effective conversion price. No BCF was recognized for the convertible notes issued during September 30, 2021 and 2020. Share-based compensation The Company awards share options and other equity-based instruments to its employees, directors and consultants (collectively “share-based payments”). Compensation cost related to such awards is measured based on the fair value of the instrument on the grant date. The Company recognizes the compensation cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The amount of cost recognized is adjusted to reflect the expected forfeiture prior to vesting. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. Variable interest entities On July 31, 2019, CCM Tianjin, 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 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, the category of business which the Company is conducting 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 President of the Company. Mr. Kai Xu was the Chief Operating Officer of the Company and currently is the Deputy General Manager of FT Commercial Group Ltd., a wholly owned subsidiary of the Company. The VIE Agreements are as follows: 1) Exclusive Technology Consulting and Service Agreement by and between CCM Tianjin and E-commerce Tianjin. Pursuant to the Exclusive Technology Consulting and Service Agreement, CCM Tianjin agreed to act as the exclusive consultant of E-commerce Tianjin and provide technology consulting and services to E-commerce Tianjin. In exchange, E-commerce Tianjin agreed to pay CCM Tianjin a technology consulting and service fee, the amount of which is to be equivalent to the amount of net profit before tax of E-commerce Tianjin, payable on a quarterly basis after making up losses of previous years (if necessary) and deducting necessary costs, expenses and taxes related to the business operations of E-commerce Tianjin. Without the prior written consent of CCM Tianjin, E-commerce Tianjin may not accept the same or similar technology consulting and services provided by any third party during the term of the agreement. All the benefits and interests generated from the agreement, including but not limited to intellectual property rights, know-how and trade secrets, will be CCM Tianjin’s sole and exclusive property. This agreement has a term of 10 years and may be extended unilaterally by CCM Tianjin with CCM Tianjin’s written confirmation prior to the expiration date. E-commerce Tianjin cannot terminate the agreement early unless CCM Tianjin commits fraud, gross negligence or illegal acts, or becomes bankrupt or winds up. 2) Exclusive Purchase Option Agreement by and among CCM Tianjin, E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu. Pursuant to the Exclusive Purchase Option Agreement, Mr. Zeyao Xue and Mr. Kai Xu granted to CCM Tianjin and any party designated by CCM Tianjin the exclusive right to purchase, at any time during the term of this agreement, all or part of the equity interests in E-commerce Tianjin, or the “Equity Interests,” at a purchase price equal to the registered capital paid by Mr. Zeyao Xue and Mr. Kai Xu for the Equity Interests, or, in the event that applicable law requires an appraisal of the Equity Interests, the lowest price permitted under applicable law. Pursuant to powers of attorney executed by Mr. Zeyao Xue and Mr. Kai Xu, they irrevocably authorized any person appointed by CCM Tianjin to exercise all shareholder rights, including but not limited to voting on their behalf on all matters requiring approval of E-commerce Tianjin’s shareholder, disposing of all or part of the shareholder’s equity interest in E-commerce Tianjin, and electing, appointing or removing directors and executive officers. The person designated by CCM Tianjin is entitled to dispose of dividends and profits on the equity interest without reliance on any oral or written instructions of Mr. Zeyao Xue and Mr. Kai Xu. The powers of attorney will remain in force for so long as Mr. Zeyao Xue and Mr. Kai Xu remain the shareholders of E-commerce Tianjin. Mr. Zeyao Xue and Mr. Kai Xu have waived all the rights which have been authorized to CCM Tianjin’s designated person under the powers of attorney. 3) Equity Pledge Agreements by and among CCM Tianjin, E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu. Pursuant to the Equity Pledge Agreements, Mr. Zeyao Xue and Mr. Kai Xu pledged all of the Equity Interests to CCM Tianjin to secure the full and complete performance of the obligations and liabilities on the part of E-commerce Tianjin and them under this and the above contractual arrangements. If E-commerce Tianjin, Mr. Zeyao Xue, or Mr. Kai Xu breaches their contractual obligations under these agreements, then CCM Tianjin, as pledgee, will have the right to dispose of the pledged equity interests. Mr. Zeyao Xue and Mr. Kai Xu agree that, during the term of the Equity Pledge Agreements, they will not disp |
Variable Interest Entity
Variable Interest Entity | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
VARIABLE INTEREST ENTITY | 3. VARIABLE INTEREST ENTITY The carrying amount of the VIE’s consolidated assets and liabilities are as follows: September 30, December 31, 2021 2020 (Unaudited) (Audited) Current assets $ 205,321 $ 66,833 Property and equipment, net 799 1,296 Total assets 206,120 68,129 Total liabilities (218,773 ) (199,113 ) Net assets $ (12,653 ) $ (130,984 ) September 30, December 31, 2021 2020 Current liabilities: (Unaudited) (Audited) Accounts payable $ 77 $ 77 Accrued expenses and other payables 1,432 81,809 Advances from customers 2,844 2,908 Total current liabilities 4,353 84,794 Amount Due to Related Party 214,420 114,319 Total liabilities 218,773 199,113 The summarized operating results of the VIE’s are as follows: Three Months Ended Nine Months Ended 2021 2020* 2021 2020* Revenue $ - $ 32,158 $ 6,638 $ 164,051 Gross profit - 25,994 601 147,800 Net income (37,532 ) (31,853 ) (58,481 ) (163,058 ) |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Accountant Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | 4. ACCOUNTS RECEIVABLE Accounts receivable, net consist of the following: September 30, December 31, 2021 2020 (Unaudited) (Audited) Coal and Aluminum Ingots Supply Chain Financing/Trading $ 8,335,148 $ - Asset management service 1,018,633 - Others 87,435 - Allowance for doubtful accounts (507 ) - Total accounts receivable, net $ 9,440,709 $ - Movements of allowance for doubtful accounts are as follows: Beginning balance $ - $ - Addition 507 - Ending balance $ 507 $ - The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts. September 30, December 31, 2021 2020 (Unaudited) (Audited) Debtor A $ 88.28 % $ - Debtor B 10.79 % - Debtor C 0.93 % - Total accounts receivable, net $ 100 % $ - |
Other Receivables
Other Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Other Receviables [Abstract] | |
OTHER RECEIVABLES | 5 . OTHER RECEIVABLES As of September 30, 2021, the balance of other receivables was $1.82 million. On September 1, 2021, FTFT UK Limited, a company organized under the laws of United Kingdom and a wholly owned subsidiary of the Company entered into a Share Purchase Agreement (the “Agreement”) with Rahim Shah, a resident of United Kingdom (“Seller”). Under this agreement, FTFT UK Limited (the “Buyer”) agreed to acquire 100% of the issued and outstanding shares (the “Sale Shares”) of Khyber Money Exchange Ltd. (“Khyber”), a company incorporated in England and Wales from the Seller for a total of Euros €685,000 (“Purchase Price”). Buyer deposited Euros €685,000 ($0.79 million) for the Purchase Price and £400,000 ($0.54 million) for cash balance expected to be left in the bank account of Khyber upon the closing (subject to refund to the Buyer upon the actual amount in Khyber’s account at closing) to Buyer’s solicitors to be held by Buyer’s solicitors in their client account upon the final closing of the acquisition. In addition, other receivables included total $0.49 million deposit paid and prepayments. |
Loan Receivables
Loan Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
LOAN RECEIVABLES | 6. LOAN RECEIVABLES As of September 30, 2021, the balance of loan receivables was $6.31 million, which was from third parties. On July 30, 2021, Future FinTech (Hong Kong) Limited (“FTFT HK”), a wholly owned subsidiary of the Company, entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned up to the amount of USD 6 million to the third party at the annual interest rate of 10% from July 31, 2021 to January 30, 2022. On September 16, 2021, Future Commercial Group Co., Ltd. (“Future Commercial”), a wholly owned subsidiary of the Company, entered into a “Interest-free Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Commercial loaned USD 0.31 million to the third party from September 16, 2021 to September 16, 2022 with an intent to acquire certain equity interest of this third party. |
Other Current Assets
Other Current Assets | 9 Months Ended |
Sep. 30, 2021 | |
Other Current Assets [Abstract] | |
OTHER CURRENT ASSETS | 7 . OTHER CURRENT ASSETS The amount of other current assets consisted of the followings: September 30, December 31, 2021 2020 (Unaudited) (Audited) Prepayments for Coal and Aluminum Ingots Supply Chain Financing/Trading $ 2,412,372 $ - Prepayment for properties 2,358,960 Prepaid expenses 741,773 4,517 Others 147,921 10,727 Total $ 5,661,026 $ 15,244 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill [Abstract] | |
GOODWILL | 8. GOODWILL As of September 30, 2021, the balance of goodwill mainly represented an amount of $16.73 million that arose from acquisition of Nice Talent Asset Management Limited (“Nice Talent”) in 2021. On August 6, 2021, the Company through its wholly owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90% of the issued and outstanding shares of Nice Talent from Joy Rich Enterprises Limited for HK$144,000,000 (the “Purchase Price”) which shall be paid in the shares of common stock of the Company (the “Company Shares”). 60% of the Purchase Price ($11.22 million) paid in 2,244,156 shares of common stock of the Company on August 4, 2021. 40% of the Purchase Price ($7.01 million) shall be paid in shares of common stock of the Company upon the completion of the audited reports for Nice Talent for the years ended on December 31, 2021 and December 31, 2022. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Asset Acquisition [Abstract] | |
ACQUISITION | 9. ACQUISITION On August 6, 2021 (“Acquisition Date”), the Company through its wholly owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90% of the issued and outstanding shares of Nice Talent from Joy Rich Enterprises Limited for HK$144,000,000 (the “Purchase Price”) which shall be paid in the shares of common stock of the Company (the “Company Shares”). 60% of the Purchase Price ($11.22 million) paid in 2,244,156 shares of common stock of the Company on August 4, 2021. 40% of the Purchase Price ($7.01 million) shall be paid in shares of common stock of the Company upon the completion of the audited reports for Nice Talent for the years ended on December 31, 2021 and December 31, 2022. The transaction was accounted for in accordance with the provisions of ASC 805-10, Business Combinations. The Company retained an independent appraisal firm to advise management in the determination of the fair value of the various assets acquired and liabilities assumed. The values assigned in these financial statements represent management’s best estimate of fair values as of the Acquisition Date. As required by ASC 805-20, Business Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling Interest, management conducted a review to reassess whether they identified all the assets acquired and all the liabilities assumed, and followed ASC 805-20’s measurement procedures for recognition of the fair value of net assets acquired. The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Accounts receivable $ 1,150,199 Other receivables 27,680 Other current assets 3,737 Property, plant and equipment, net 53,913 Amount Due from Related Party 38,296 Goodwill 16,727,897 Accrued expenses and other payables (48,858 ) Total purchase price for acquisition $ 17,952,864 The Company has included the operating results of Nice Talent in its unaudited condensed consolidated financial statements since the Acquisition Date. US$ 686,391 in net sales and US$ 244,761 in net gain of Nice Talent were included in the unaudited condensed consolidated financial statements for the three months ended September 30, 2021. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases Disclosure [Abstract] | |
LEASES | 10. LEASES The Company’s noncancelable operating leases consist of leases for office spaces. The Company is the lessee under the terms of the operating leases. For the nine months ended September 30, 2021, the operating lease cost was $0.16 million. The Company’s operating leases have remaining lease terms that range from approximately one year. As of September 30, 2021, the weighted average remaining lease term and weighted average discount rate were 0.83 years and 6%, respectively. Maturities of lease liabilities were as follows: Operating As of September 30, Lease From October 1, 2021 to July 31, 2022 $ 162,122 Total $ 162,122 Less: amounts representing interest $ 4,371 Present Value of future minimum lease payments 157,751 Less: Current obligations 157,751 Long term obligations $ - |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 11. PROPERTY AND EQUIPMENT Property and equipment consist of the following: September 30, December 31, 2021 2020 (Unaudited) (Audited) Office equipment, fixtures and furniture $ 140,305 $ 6,299 Vehicle 510,800 - Leasehold Improvement 37,842 - Subtotal 688,946 6,299 Less: accumulated depreciation and amortization (56,129 ) (3,620 ) Impairment (6,109 ) - Total $ 626,709 $ 2,679 Depreciation expense included in general and administration expenses for the nine months ended September 30, 2021 and 2020 was $14,018 and $1,073, respectively. Depreciation expense included in cost of sales for the nine months ended September 30, 2021 and 2020 was nil |
Accounts Payable
Accounts Payable | 9 Months Ended |
Sep. 30, 2021 | |
Accountant Payables [Abstract] | |
ACCOUNTS PAYABLE | 12. ACCOUNTS PAYABLE Accounts payable consisted of the followings September 30, December 31, 2021 2020 (Unaudited) (Audited) Accounts payable - Coal and Aluminum Ingots Supply Chain Financing/Trading $ 1,211,043 $ - Other 78 76 Total $ 1,211,121 $ 76 |
Loan Payables
Loan Payables | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LOAN PAYABLES | 13. LOAN PAYABLES As of September 30, 2021, loan payables were $0.19 million, which consisted of the loan payable of $0.19 million to Shaanxi Entai Bio-Technology Co., Ltd. The loan from Shaanxi Entai Bio-Technology Co., Ltd of $0.19 million was interest free and has no assets pledged for this loan. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | 14. ACCRUED EXPENSES AND OTHER PAYABLES The amount of accrued expenses and other payables were consisted of the followings: September 30, December 31, 2021 2020 (Unaudited) (Audited) Legal fee and other professionals $ 46,793 $ 457,276 Wages and employee reimbursement 131,608 52,290 Suppliers 6,239 1,126,968 Accruals 123,392 117,917 Total $ 308,032 $ 1,754,451 |
Convertible Notes Payable
Convertible Notes Payable | 9 Months Ended |
Sep. 30, 2021 | |
Convertible Notes Payable [Abstract] | |
CONVERTIBLE NOTES PAYABLE | 15. CONVERTIBLE NOTES PAYABLE As of September 30, 2021 and December 31, 2020, convertible debt consisted of the following: September 30, December 31, 2021 2020 (Unaudited) (Audited) Beginning $ 1,163,146 $ 957,990 Addition - 905,392 Payment (1,163,146 ) - Conversion - (700,236 ) Balance $ - $ 1,163,146 |
Deferred Liabilites
Deferred Liabilites | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Liabilites Table [Abstract] | |
DEFERRED LIABILITES | 16. DEFERRED LIABILITES As of September 30, 2021, the balance of deferred liabilities mainly represented an amount of $7.01 million that arose from acquisition of Nice Talent Asset Management Limited (“Nice Talent”) remaining 40% of the Purchase Price. 40% of the Purchase Price ($7.01 million) shall be paid in shares of common stock of the Company upon the completion of the audited reports for Nice Talent for the years ended on December 31, 2021 and December 31, 2022. |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | 17. RELATED PARTY TRANSACTION As of September 30, 2021, the amounts due to the related parties were consisted of the followings: Name Amount Relationship Note Zhi Yan $ 258,210 General Manager of a subsidiary of the Company Accrued expenses, interest free and payment on demand. Jing Chen 18,613 Vice president of the Company Accrued expenses, interest free and payment on demand. Reits (Beijing) Technology Co., Ltd 15,612 Zhi Yan is the legal representative of this company Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan was the general manager of our subsidiary. The amount is interest free and payment on demand. Shaanxi Chunlv Ecological Agriculture Co. Ltd. 253,515 Shaanxi Fu Chen holds 80% interest of this company Other payables, interest free and payment on demand. Kai Xu 25,130 Deputy General Manager of a subsidiary of the Company Accrued expenses, interest free and payment on demand. Shaanxi Fuju Mining Co., Ltd 3,238 Shaanxi Fu Chen holds 80% interest of this company Other payables, interest free and payment on demand. Total $ 574,318 As of September 30, 2021, the amounts due from the related parties were consisted of the followings: Name Amount Relationship Note Shaanxi Fu Chen Venture Capital Management Co. Ltd. (“Shaanxi Fu Chen”) 231,289 Two common shareholders with Shaanxi Fu Chen Loan receivables*, interest free and payment on demand. Bin Wu 18,514 A shareholder of a Company’s subsidiary Advance to pay for the incorporation costs of the establishment of the subsidiary in Dubai* Amount is interest free and payment on demand. Zeyao Xue 15,950 Son of the President of the Company, a shareholder of the VIE of the Company and a major shareholder of the Company Prepaid expenses*, interest free and payment on demand. NT SPC Fund 38,296 Funds managed by Nice Talent Asset Management Limited Other receivables, interest free and payment on demand. Ming Yi 1,357 Chief Financial Officer of the Company Prepaid expenses*, interest free and payment on demand. Ola Johannes Lind 49,260 Chief Executive Officer of the FTFT CAPITAL INVESTMENTS L.L.C, a subsidiary of the Company Prepaid expenses*, interest free and payment on demand. Total $ 354,666 * The related party transactions have been approved by the Company’s Audit Committee. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 18. INCOME TAX The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made, as the Company had no U.S. taxable income for the nine months ended September 30, 2021 and 2020. The effective income tax rate for the Company for both of the nine months ended September 30, 2021 and 2020 were 0% and 0% respectively. The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the nine months ended September 30, 2021, the Company had no unrecognized tax benefits. Due to uncertainties surrounding future utilization, the Company estimates there will not be sufficient future income to realize the deferred tax assets for its subsidiaries and VIE. The Company has not provided deferred tax assets from foreign subsidiaries operating losses because currently no business operation and no future income is anticipating. The amount of unrecognized deferred tax liabilities for temporary differences related to the dividend from foreign subsidiaries is not determined because such determination is not practical. The Company has not provided deferred taxes on undistributed earnings attributable to its PRC and Hong Kong subsidiaries as they are to be permanently reinvested. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of ASC Topic 740, Income Taxes Effective on January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules imposed a unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign-invested enterprises in the PRC, unless they qualify under certain limited exceptions. All of the Companies’ Chinese subsidiaries and VIE were subject to an enterprise income tax rate of 25%. |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE BASED COMPENSATION | 19. SHARE BASED COMPENSATION On July 12, 2021 (the “Grant Date”), the Compensation Committee of the Board of Directors (the “Board”) of the Company granted 1,953,000 shares of common stock of the Company, par value $0.001 (the “Shares”), pursuant to the Company’s 2020 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries (the “Grantees”), including: 500,000 shares to Shanchun Huang, Chief Executive Officer of the Company; 300,000 shares to Yongke Xue, President of the Company; 20,000 shares to Ming Yi, Chief Financial Officer of the Company, and 40,000 shares to Yang Liu, Chief Operating Officer of the Company (collectively, the “Grants”). The Grants vested immediately on the Grant Date and each of the Grantees also entered into an Unrestricted Stock Award Agreement with the Company on July 12, 2021. As the closing price of the company stock was $2.81 on July 12, 2021, the Company recorded an expense of $5.49 million in the third quarter of fiscal year 2021. As of the date of this report, the Shares have been issued to the Grantees. Consulting Service Agreement 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 the Consultant to the Company, the Company agrees to pay the Consultant a three-year consulting fee totaling $3.0 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 year ended December 31, 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. On January 25, 2021, the Company recorded stock related compensation of $0.89 million, based on the stock closing price of $0.794 on the date of the Agreement, for the 1,125,000 shares which were released to the Consultant on January 25, 2021. The Company will recognize stock related compensation of $0.89 million for the 1,125,000 shares in the future if and when they are released to the Consultant pursuant to the Agreement. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2021 | |
Common Stocks Issued [Abstract] | |
COMMON STOCK | 20. COMMON STOCK Securities Purchase Agreement On December 24, 2020, the Company entered into a securities purchase agreement with certain purchasers, pursuant to which the Company sold to the purchasers in a registered direct offering, an aggregate of 4,210,530 units, each consisting of one share of our common stock and a warrant to purchase 1 share of our Common Stock, at a purchase price of $1.90 per unit, for aggregate gross proceeds to the Company of $8,000,007, before deducting fees to the placement agent and other offering expenses payable by the Company. On December 29, 2020, the Company issued Units consisting of an aggregate of 4,210,530 shares of our Common Stock and warrants to purchase up to an aggregate of 4,210,530 shares of our Common Stock at an exercise price of $2.15 per share (the “Investors’ Warrants”). The Investors’ Warrants have a term of five years and are exercisable by the holder at any time after the date of issuance. In connection with the offering, the Company also issued placement agent a warrant to purchase 210,526 shares of our Common Stock (the “Placement Agent Warrant”) on substantially the same terms as the Investors’ Warrants, except that the Placement Agent Warrant has an exercise price of $2.375 per share and are not exercisable until June 24, 2021. The net proceeds offering were $7,338,500, after deducting underwriting discounts and commissions and other estimated offering expenses, and were received on December 29, 2020. The Company issued 4,210,530 shares of its Common Stock to the purchaser on December 29, 2020. During the three months ended March 31, 2021, the Investors Warrants to purchase an aggregate of 4,210,530 shares of common stock were fully exercised by the investors. On January 11, 2021, the Company entered into a securities purchase agreement with certain purchasers identified on the signature page thereto, pursuant to which the Company sold to the purchasers in a registered direct offering, an aggregate of 3,000,000 share of its common stock, par value $0.001 per share at a purchase price of $5.00 per share, for aggregate net proceeds to the Company of $13,797,732, after deducting fees to the placement agent and other offering expenses payable by the Company. On January 13, 2021, the Company issued 3,000,000 shares of common stock pursuant to this Agreement. On February 9, 2021, the Company entered into a securities purchase agreement with certain purchasers identified on the signature page thereto, pursuant to which the Company sold to the purchasers in a registered direct offering, an aggregate of 2,000,000 shares of its common stock, par value $0.001 per share at a purchase price of $5.95 per share, for aggregate net proceeds to the Company of $10,992,250, after deducting fees to the placement agent and other offering expenses payable by the Company. The Company issued 2,000,000 shares of common stock to the purchasers on February 11, 2021. On April 1, 2021, the Company entered into a Securities Purchase Agreement with certain purchasers identified on the signature page thereto (the “Purchasers”), pursuant to which the Company sold to the Purchasers in a registered direct offering, an aggregate of 5,737,706 shares of its common stock, par value $0.001 per share at a purchase price of $6.10 per share, for aggregate net proceeds to the Company of approximately $32,380,492, after deducting fees to the placement agent and other offering expenses payable by the Company. The Company issued 5,737,706 shares of common stock to the purchasers on April 5, 2021. On April 12, 2017, the Company entered into a Securities Purchase Agreement with certain purchasers (the “Purchasers”), pursuant to which the Company offered and sold to the Purchasers, in a registered direct offering, an aggregate of 862,097 shares of common stock, par value $0.001 per share. In a concurrent private placement, the Company also issued to the each of the Purchasers a warrant to purchase one (1) share of the Company’s Common Stock for each share purchased under the Purchase Agreement, pursuant to that certain Common Stock Purchase Warrant, by and between the Company and each Purchaser (each, a “Warrant”, and collectively, the “Warrants”). The Warrants will be exercisable beginning on the six-months anniversary of the date of issuance at an initial exercise price of $5.20 per share and will expire on the five and a half year anniversary of the date of issuance. During the nine months ended September 30, 2021, the holders of the Warrants purchased an aggregate of 319,350 shares of common stock of the Company for $1,654,224, of which 1,230 shares of common stock were issued based upon cashless exercises. On July 26, 2021, the Company entered into a Securities Purchase Agreement (the “Agreement”) with certain investors identified on the signature pages thereto (the “Purchasers”), pursuant to which the Company agreed to sell to the Purchasers in a private placement 548,799 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at a purchase price of $2.83 per share for an aggregate offering price of $1,553,101 (the “Private Placement”). The Private Placement was completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. On August 6, 2021, the Company, through its wholly owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90% of the issued and outstanding shares of Nice Talent Asset Management Limited from Joy Rich Enterprises Limited (the “Nice Shares”) for HK$144,000,000 (the “Purchase Price”) which shall be paid in the shares of common stock of the Company (the “Company Shares”). 60% of the purchase price ($11.22 million) paid in 2,244,156 shares of common stock of the Company on August 4, 2021, at a price of $5 per share. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 21. DISCONTINUED OPERATIONS HeDeTang HK On September 18, 2019, SkyPeople Foods Holdings Limited (“SkyPeople Foods”) 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 Holdings (HK) Ltd. (“HeDeTang HK”) from SkyPeople Foods, 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 The discontinued operation presented in the financial statement includes Huludao Wonder operation, a subsidiary which produced concentrated apple juice. In December 2016, the Company established a winding-down plan to close this operation. Based on the restructuring plan and in accordance with ASC 205-20, the Company presented the operating results from Huludao Wonder as a discontinued operation, as the Company believed that no continued cash flow would be generated by the disposed component (Huludao Wonder) and that the Company would have no significant continuing involvement in the operation of the discontinued component. Management of the Company initiated a plan to sell the property located in Huludao in December 2016, and ceased the depreciation of the property in accordance with ASC 205-20. On February 27, 2020 pursuant to a Share Transfer Agreement entered into by SkyPeople Foods and New Continent International Co., Ltd. on September 18, 2019, the ownership of Huludao Wonder was transferred as a subsidiary of HeDeTang HK to New Continent International Co., Ltd. On March 11, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Future Supply Chain Limited and Zhonglian Hengxin Assets Management Co., Ltd (“Zhonglian Hengxin”) and close the operation of Digital Online Marketing Limited, SkyPeople Foods Holding Limited. and Chain Future Digital Tech (Beijing) Co., Ltd. On March 18, 2021, Chain Future Digital Tech (Beijing) Co., Ltd. was deregistered. Based on the disposal plan and in accordance with ASC 205-20, the Company presented the operating results from these operations as a discontinued operation. On October 31, 2020, the transfer of ownership of Future Supply Chain Limited and Zhonglian Hengxin was completed. On July 24, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Hedetang Farm Products Trading Markets (Mei County) Co., Ltd. and close the operation of Chain Cloud Mall Logistics Center (Shaanxi) Co., Ltd. On July 27,2020, Skypeople Foods Holdings Limited was dissolved; On July 28, 2020 Digital Online Marketing Limited was dissolved; On October 31, 2020, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited and Chain Cloud Mall Logistics Center (Shanxi) Co., Ltd. completed the transfer of their ownership of Hedetang Farm Products Trading Markets (Mei country) Co., Ltd. to third parties. On April 19, 2021, FT Commercial Management (Beijing) Co., Ltd was deregistered, resulting in a loss on disposal of $21,577. On August 2, 2021, Guangchengji (Guangdong) Industrial Co., Ltd was sold to a third party, resulting in a loss on disposal of $3,679,447. On September 2, 2021, Future Supply Chain Co., Ltd ceased operation. Loss from discontinued operations for three months ended and nine months ended September 30, 2021 and 2020 was as follows: Three Months Ended Nine Months Ended 2021 2020* 2021 2020* REVENUES $ (8,800 ) $ 207 $ 1,180,528 $ 1,595 COST OF SALES 34 122 573,716 (63 ) GROSS PROFIT (8,834 ) 85 606,812 1,658 OPERATING EXPENSES: General and administrative 142,741 247,069 12,280 264,805 Selling expenses 493 371 493 2,441 Bad debt provision - 2,990 (3,075 ) 4,075 Total 143,234 250,430 9,698 271,321 OTHER INCOME (EXPENSE) Interest income (281,079 ) 537 229 568 Interest expenses (370 ) 45 (370 ) - Other income(expenses) net 253,173 90,854 279,363 91,287 Total (28,276 ) 91,436 279,222 91,855 Income (loss) from discontinued operations before income tax (180,344 ) (158,909 ) 876,336 (177,808 ) Income tax provision - - - - Income (loss) from discontinued operation before noncontrolling interest (180,344 ) (158,909 ) 876,336 (177,808 ) Loss on disposal of discontinued operations - - - - (INCOME) LOSS FROM DISCONTINUED OPERATION (180,344 ) (158,909 ) 876,336 (177,808 ) The major components of assets and liabilities related to discontinued operations are summarized below: September 30, December 31, Cash $ 516 $ 365,714 Other current assets - 243,586 Loan receivables - 5,355,944 Property, plant and equipment, net 8,786 14,049 Amount due from related parties 14,599 62,553 Total assets related to discontinued operations $ 23,901 6,041,846 Accounts payable 248,253 250,288 Accrued expenses $ 282,503 $ 556,407 Loan payables - 379,522 Amount due to related parties 466,043 1,068,879 Total liabilities related to discontinued operations $ 996,799 $ 2,255,096 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 22. SEGMENT REPORTING In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with GAAP. The Company operates in four segments starting in fiscal 2020: shared shopping mall membership fee, fruit related products, sales of goods and others. The operation of fruit related products is classified as discontinued operation as disclosed in Note 15. In 2021, the Company principally generates its revenues from coal and aluminum ingots supply chain financing service and trading business and asset management service. In compliance with the Company’s business transformation strategy, membership fees from the shared shopping mall and sales of goods through the shared shopping mall platform started to generate the main revenues for the Company and became more and more important business sections of the Company from fiscal year 2019, while its traditional business section of seasonal fruit related products continued to shrink in fiscal year 2019. However, due the COVID-19 pandemic and restriction on large gatherings in China, which have made the promotion strategy for its online e-commerce platforms difficult to implement and the Company has experienced difficulties to subscribe new members for its online e-commerce platforms. Due to lack of new members, difficulties in retaining old customers and significant decrease of revenue in e-commerce business, the Company began to provide supply chain financing services for coal mines and power generation plants to buy and sell coals and trading aluminum ingots. Some of our operation might not individually meet the quantitative thresholds for determining reportable segments and we determine the reportable segments based on the discrete financial information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments. Since there is an overlap of services and products between different subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating expenses and asset information by segment are not presented. Segment profit represents the gross profit of each reportable segment. Three Months ended September 30, 2021 Coals and Asset Total Reportable segment revenue $ 17,540,731 $ 2,101,050 $ 19,641,781 Inter-segment loss 7,896,754 - 7,896,754 Revenue from external customers 9,643,977 2,101,050 11,745,027 Segment gross profit $ 296,173 $ 686,911 $ 983,084 Three Months ended September 30, 2020 CCM Sales of Others Total Reportable segment revenue $ 29,779 $ 4,264 $ 9,407 $ 43,450 Inter-segment loss - - - - Revenue from external customers $ 29,779 4,264 9,407 43,450 Segment gross profit $ 24,561 $ 2,012 $ 3,483 $ 30,056 As of September 30, 2021: CCM Coal and Asset Total Reportable segment revenue $ 85 $ 19,646,645 $ 2,101,049 $ 21,747,779 Inter-segment loss - 9,243,885 - 9,243,885 Revenue from external customers $ 85 10,402,760 2,101,049 12,503,894 Segment gross profit $ 85 $ (247,611 ) $ 686,909 $ 439,383 As of September 30, 2020: CCM Sales of Others Total Reportable segment revenue $ 333,425 $ 6,399 $ 15,876 $ 355,700 Inter-segment loss - - - - Revenue from external customers $ 333,425 6,399 15,876 355,700 Segment gross profit $ 323,973 $ 3,006 $ 5,270 $ 332,249 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 23. COMMITMENTS AND CONTINGENCIES Legal case with FT Global Litigation In January 2021, FT Global Capital, Inc. (“FT Global”), a former placement agent of the Company filed a lawsuit against the Company in the Superior Court of Fulton County, Georgia. FT Global served the complaint upon the Company in January 2021. In the complaint, FT Global alleges claims, most of which attempt to hold the Company liable under legal theories that relate back to an alleged breach of an exclusive placement agent agreement between FT Global and the Company in July 2020 which had a term of three months. FT Global claims that the Company failed to compensate FT Global for securities purchase transactions between December 2020 and April 2021, pursuant to the terms of the expired exclusive placement agent agreement. Allegedly, the exclusive placement agent agreement required the Company to pay FT Global for capital received during the term of the agreement and for the 12-month period following the termination of the agreement involving any investors that FT Global introduced and/or wall-crossed to the Company. However, the Company believes the securities purchase transactions at issue did not involve the one investor which FT Global introduced or wall-crossed to the Company during the term of the agreement. FT Global claims approximately $7,000,000 in damages and attorneys’ fees. The Company timely removed the case to the United States District Court for the Northern District of Georgia (the (“Court”) on February 9, 2021 based on diversity of jurisdiction. On March 9, 2021, the Company filed a motion to dismiss based on FT Global’s failure to state a claim which is pending before the Court. On March 23, 2021, FT Global filed its response to the Company’s motion to dismiss. FT Global argues that the Court should deny the Company’s motion to dismiss. However, if the Court is inclined to grant the Company’s motion to dismiss, FT Global requested that the Court permit it to file an amended complaint. On April 8, 2021, the parties filed a Joint Preliminary Report and Discovery Plan. On April 12, 2021, the Court approved the Joint Preliminary Report and Discovery Plan and issued a Scheduling Order placing this case on a six-month discovery tract. On April 30, 2021, the Company served FT Global with its Initial Disclosures. On May 6, 2021, FT Global served the Company with its Initial Disclosures. On May 17, 2021, FT Global served the Company with its First Amended Initial Disclosures. On November 10, 2021, the Court entered an Order granting the Company’s motion to dismiss FT Global’s fraud claim and breach of contract claim as to the disclosure of its confidential and proprietary information. The Court denied the Company’s motion to dismiss FT Global’s i) breach of contract claim for failure to pay FT Global pursuant to the terms of the exclusive placement agent agreement; ii) claim for breach of the covenant of good faith and fair dealing; and iii) claim for attorney’s fees, and the court concluded that additional information can be obtained through discovery. The Company will timely file an answer and defenses to FT Global’s complaint which is due on November 24, 2021. The Company will continue to vigorously defend the action against FT Global. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 24. RISKS AND UNCERTAINTIES Impact of COVID 19 In December 2019, a novel strain of coronavirus was reported and has spread throughout China and other parts of the world. On March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. 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. Substantially all of our revenues are generated in China. In response to the evolving dynamics related to the COVID-19 outbreak, the Company has followed the guidelines of local authorities as it prioritizes the health and safety of its employees, contractors, suppliers and business partners. Our offices in China were closed and all of the Company’s employees worked from home at the end of January until late March 2020. The quarantines, travel restrictions, and the temporary closure of office buildings have materially negatively impacted our business. Our suppliers were negatively affected, and could continue to be negatively affected in their ability to supply and ship products to our customers in case of any resurgence of COVID-19. Our customers that have been 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 e-commerce platform have been and could continue to be negatively impacted by the outbreak, which may in turn adversely affect the business of our platform as a whole as well as our financial condition and operating results. The outbreak has had and might continue to have disruption to our supply chain, logistics providers, customers or our marketing activities in case of any resurgence of COVID-19, which could materially adversely impact our business and results of operations. 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. If the SMEs that we work with cannot weather the COVID-19 and the resulting economic impact, or cannot resume business as usual after a prolonged outbreak, our revenues and business operations may be materially and adversely impacted. The Company’s promotion strategy of CCM Shopping Mall previously mainly relied on the training of members and distributors through meetings and conferences. Although China has already begun to recover from the outbreak of COVID-19, there have been small outbreaks of COVID-19 in various cities in China and Chinese government still put a restriction on large gatherings. These restrictions made the promotion strategy for our online e-commerce platforms difficult to implement. The Company has experienced difficulties to subscribe new members for its online e-commerce platforms and has to transform its business model from member based platform to sales agent based platform during the second quarter of 2021. Any further outbreaks of COVID-19 and its new variants could also negatively affect our supply chain financing service and trading business for coals and aluminum ingots if there is any quarantines, travel restriction or supply chain disruptions in China due to outbreak. The global economy has also been materially negatively affected by the COVID-19 and there is continued severe uncertainty about the duration and intensity of its impacts. The Chinese and global growth forecast is extremely uncertain, which would seriously affect customer spending on our online shopping malls. While the potential economic impact brought by, and the duration of COVID-19 and its new variants may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, negatively impacting our assets management business as well as reducing our ability to access capital, which could negatively affect our liquidity. In addition, a recession or market correction resulting from the spread of COVID-19 and its new variants could materially affect our business and the value of our common stock. PRC Regulations There are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including, but not limited to, the laws and regulations governing our business and the enforcement and performance of our arrangements with customers in certain circumstances. We are considered foreign persons or foreign funded enterprises under PRC laws and, as a result, we are required to comply with PRC laws and regulations related to foreign persons and foreign funded enterprises. These laws and regulations are sometimes vague and may be subject to future changes, and their official interpretation and enforcement may involve substantial uncertainty. The effectiveness of newly enacted laws, regulations or amendments may be delayed, resulting in detrimental reliance. New laws and regulations that affect existing and proposed future businesses may also be applied retroactively. We cannot predict what effect the interpretation of existing or new PRC laws or regulations may have on our business. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 25. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of the issuance of the condensed consolidated financial statements and no subsequent event is identified. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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, 2021 and the results of operations and cash flows for the periods ended September 30, 2021 and 2020. 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, 2021 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2021. The balance sheet of December 31, 2020 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”) Cloud Chain Network and Technology (Tianjin) Co., Limited, formerly known as Chain Cloud Mall Network and Technology (Tianjin) Co., Limited (“CCM Tianjin”) 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, 2020 as included in our Annual Report on Form 10-K. |
Discontinued Operations | Discontinued Operations On February 27, 2020, SkyPeople Foods Holding Limited(the “Seller”) completed the transfer of its ownership of HeDeTang Holdings (HK) Ltd. (“HeDeTang HK”) to New Continent International Co., Ltd. (the “Buyer”), an unrelated third party and a company incorporated in the British Virgin Islands for a total price of RMB 0.6 million (approximately $85,714), pursuant to a Share Transfer Agreement entered into by the Seller and the Buyer on September 18, 2019 and approved at the special shareholders meeting of the Company on February 26, 2020. As the Company believed that no continued cash flow would be generated by the sold component, in accordance with ASC 205-20, the Company presented the operating results from Hedetang HK as discontinued operations within the accompanying consolidated financial statements. In addition, Company’s Huludao Wonder operation, a subsidiary which produced concentrated apple juice, suffered continued operating losses from 2014 to 2016 and its cash flow was minimal for these three years. In December 2016, the Company established a winding-down plan to close this operation. Based on the restructuring plan and in accordance with ASC 205-20, the Company presented the operating results from Huludao Wonder as a discontinued operation. On March 11, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Future Supply Chain limited and Zhonglian Hengxin Assets Management Co., Ltd (“Zhonglian Hengxin”) and close the operation of Digital Online Marketing Limited, SkyPeople Foods Holding Limited. and Chain Future Digital Tech (Beijing) Co., Ltd. On March 18, 2021, Chain Future Digital Tech (Beijing) Co., Ltd. was dissolved and deregistered with local government. On May 7, 2020, Future Business Management Co., Ltd. completed the transfer of its ownership of Zhonglian Hengxin Assets Management Co., Ltd to individual third party. On July 24, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Hedetang Farm Products Trading Markets (Mei County) Co., Ltd. and close the operation of Chain Cloud Mall Logistics Center (Shaanxi) Co., Ltd. As a result, Skypeople Foods Holding Limited was dissolved on July 27, 2020; Digital Online Marketing Limited Company was deregistered on July 28, 2020; On October 31, 2020, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited and Chain Cloud Mall Logistics Center (Shanxi) Co., Ltd. completed the transfer of their ownership of Hedetang Farm Products Trading Markets (Mei country) Co., Ltd. to third parties. On April 19, 2021, FT Commercial Management (Beijing) Co., Ltd. was dissolved and deregistered. On August 2, 2021, the Company sold Guangchengji (Guangdong) Industrial Co., Ltd. to an unrelated third party. On September 2, 2021, Future Supply Chain Co., Ltd. discontinued its operations. Based on the disposal plan and in accordance with ASC 205-20, the Company presented the operating results from these operations as a discontinued operation. |
Segment Information Reclassification | Segment Information Reclassification Historically, the Company operated in five segments: concentrated apple juice and apple aroma, concentrated kiwifruit juice and kiwifruit puree, concentrated pear juice, fruit juice beverages, and others. As the Company classified the juice related operation into discontinued operation in the beginning of year 2019, and in accordance with the Company’s new business strategy, the Company classified business segment into CCM Shopping Mall Membership, sales of goods, asset management service , |
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. |
Going Concern | 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 and may continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. These factors raise substantial doubts about the Company’s ability to continue as a going concern. The Company has raised funds through issuance of convertible notes and common stock. 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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with the ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company has adopted FASB ASC Topic on Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable input, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Input other than Level 1 that is observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other input that is observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable input that is supported by little or no market activity and that is significant to the fair value of the assets or liabilities. Our cash and cash equivalents and restricted cash are classified within level 1 of the fair value hierarchy because they are value using quoted market price. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Under ASC 260-10, Earnings Per Share Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table. Three Months ended September 30, 2021: Income Share Pre-share Loss from continuing operations $ (6,634,386 ) 66,457,193 $ (0.10 ) Income from discontinuing operations $ (3,859,791 ) 66,457,193 $ (0.06 ) Basic EPS: Loss available to common stockholders from continuing operations $ (6,634,386 ) 66,457,193 $ (0.10 ) Income available to common stockholders from discontinuing operations $ (3,859,791 ) 66,457,193 $ (0.06 ) Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (6,634,386 ) 67,014,984 $ (0.10 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations $ (3,859,791 ) 67,014,984 $ (0.06 ) Three Months ended September 30, 2020: Income Share Pre-share Loss from continuing operations $ (2,395,965 ) 35,175,728 $ (0.07 ) Income from discontinuing operations $ (42,962 ) 35,175,728 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (2,395,965 ) 35,175,728 $ (0.07 ) Income available to common stockholders from discontinuing operations $ (42,962 ) 35,175,728 $ - Dilutive EPS: Warrants - 669,523 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (2,395,965 ) 35,845,251 $ (0.07 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ (42,962 ) 35,845,251 $ - For the nine months ended September 30, 2021: Income Share Pre-share Loss from continuing operations $ (9,047,648 ) 63,728,685 $ (0.14 ) Income from discontinuing operations $ (2,647,316 ) 63,728,685 $ (0.04 ) Basic EPS: Loss available to common stockholders from continuing operations $ (9,047,648 ) 63,728,685 $ (0.14 ) Income available to common stockholders from discontinuing operations $ (2,647,316 ) 63,728,685 $ (0.04 ) Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (9,047,648 ) 64,286,476 $ (0.14 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ (2,647,316 ) 64,286,476 $ (0.04 ) For the nine months ended September 30, 2020: Income Share Pre-share Loss from continuing operations $ (5,650,104 ) 36,982,973 $ (0.15 ) Income from discontinuing operations $ 119,264,056 36,982,973 $ 3.22 Basic EPS: Loss available to common stockholders from continuing operations $ (5,650,104 ) 36,982,973 $ (0.15 ) Income available to common stockholders from discontinuing operations $ 119,264,056 36,982,973 $ 3.22 Dilutive EPS: Warrants - 669,523 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (5,650,104 ) 37,652,496 $ (0.15 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ 119,264,056 37,652,496 $ 3.17 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents included cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original maturity of three months or less. Deposits in banks in the PRC are only insured by the government up to RMB500,000, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. |
Receivable and Allowances | Receivable and Allowances Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We extend credit to our customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required. Other receivables, and loan receivables are recognized and carried at the initial amount when occurred less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable impairment losses in our existing receivable. We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary. Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we should abandon such efforts. The Company has assessed its receivable including credit term and corresponding all its receivables in September 2021. Upon such credit terms, bad debt expense was $(15,255) and $0.24 million during the nine months ended September 30, 2021 and 2020, respectively. There is no accounts receivable balance overdue for over 90 days as of September 30, 2021 and December 31, 2020 |
Inventories | Inventories Inventories consist of raw materials, packaging materials (which include ingredients and supplies) and finished goods (which) include finished juice in the bottling, canning operations and other. Inventories also consist of merchant gift package to be delivered with the new membership signed up in our e-commerce platform. Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are written off. |
Revenue Recognition | Revenue Recognition We apply the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We assess its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. We allocate the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. We do not make any significant judgment in evaluating when control is transferred. Revenue is recorded net of value-added tax. Revenue recognitions are as follows: Online sales and membership fee: The Company recognizes the sale of goods 15 days after the products are shipped (after the 15 days return policy). The revenue from the membership fee is amortized over the lifetime of the membership, which is one year. For the merchandise gift package, revenue is recognized when the receipt of the gift package is confirmed by the members. Other revenues include revenues earned on net basis from sales of certain products on our platform. During the second quarter of 2021, the Company has transformed its member based business model to sales agent based business model for its online shopping mall. Sales of coals and aluminum ingots The Company recognize revenue when the receipt of merchandise is confirmed by the customers, which is the point that the title of the goods is transferred to the customer. Asset Management Service The company recognition of service revenue when a service is completed, the company issues billing to its customers and recognizes revenue according to the billing. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are expensed as incurred. Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Depreciation related to property, plant and equipment used in production is reported in cost of sales, and includes amortized amounts related to capital leases. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows: Machinery and equipment 5-10 years Furniture and office equipment 3-5 years Motor vehicles 5 years Leasehold Improvement 3 years |
Intangible Assets | Intangible Assets Acquired intangible assets are recognized based on their cost to the Company, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s book. These assets are amortized over their useful lives if the assets are deemed to have a finite life and they are reviewed for impairment by testing for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The fair value of an intangible asset is the amount that would be determined if the entity used the assumptions that market participants would use if they were pricing the intangible asset. The useful life of the Company’s intangible assets is ten years, which is determined by using the time period that an intangible is estimated to contribute directly or indirectly to a Company’s future cash flows. |
Foreign Currency and Other Comprehensive Income (Loss) | Foreign Currency and Other Comprehensive Income (Loss) The financial statements of the Company’s foreign subsidiaries and VIE are measured using the local currency as the functional currency; however, the reporting currency of the Company is the USD. Assets and liabilities of the Company’s foreign subsidiaries and VIE have been translated into USD using the exchange rate at the balance sheet dates, while equity accounts are translated using historical exchange rate. The exchange rate we used to convert RMB to USD was 6.49 and 6.52 at the balance sheet dates of September 30, 2021 and December 31, 2020, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 6.47 and 6.99 for nine months ended September 30, 2021 and 2020, respectively. Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-25 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. |
Goodwill | Goodwill The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value. The company will perform annual goodwill impairment test end of the fiscal year. |
Lease | Lease After adoption of ASC 842 and related standards, which introduced a lessee model that requires entities to recognize assets and liabilities for most leases, but recognize expenses on their income statements in a manner similar to current accounting, thus operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For short-term leases with an initial lease term of 12 months or less and with purchase options we are reasonably certain will not be exercised. As a lessee, the Company leases equipment and office building. Lease expense is recognized on a straight-line basis over the lease term. |
Convertible notes | Convertible notes The Company accounts for its convertible notes at issuance by allocating the proceeds received from a convertible note among freestanding instruments according to ASC 470, Debt, based upon their relative fair values. The fair value of debt and common stock is determined based on the closing price of the common stock on the date of the transaction. Convertible notes are subsequently carried at amortized cost. Each convertible note is analyzed for the existence of a beneficial conversion feature (“BCF”), defined as the fair value of the common stock at the commitment date for the convertible note, less the effective conversion price. No BCF was recognized for the convertible notes issued during September 30, 2021 and 2020. |
Share-based compensation | Share-based compensation The Company awards share options and other equity-based instruments to its employees, directors and consultants (collectively “share-based payments”). Compensation cost related to such awards is measured based on the fair value of the instrument on the grant date. The Company recognizes the compensation cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The amount of cost recognized is adjusted to reflect the expected forfeiture prior to vesting. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. |
Variable interest entities | Variable interest entities On July 31, 2019, CCM Tianjin, 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 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, the category of business which the Company is conducting 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 President of the Company. Mr. Kai Xu was the Chief Operating Officer of the Company and currently is the Deputy General Manager of FT Commercial Group Ltd., a wholly owned subsidiary of the Company. The VIE Agreements are as follows: 1) Exclusive Technology Consulting and Service Agreement by and between CCM Tianjin and E-commerce Tianjin. Pursuant to the Exclusive Technology Consulting and Service Agreement, CCM Tianjin agreed to act as the exclusive consultant of E-commerce Tianjin and provide technology consulting and services to E-commerce Tianjin. In exchange, E-commerce Tianjin agreed to pay CCM Tianjin a technology consulting and service fee, the amount of which is to be equivalent to the amount of net profit before tax of E-commerce Tianjin, payable on a quarterly basis after making up losses of previous years (if necessary) and deducting necessary costs, expenses and taxes related to the business operations of E-commerce Tianjin. Without the prior written consent of CCM Tianjin, E-commerce Tianjin may not accept the same or similar technology consulting and services provided by any third party during the term of the agreement. All the benefits and interests generated from the agreement, including but not limited to intellectual property rights, know-how and trade secrets, will be CCM Tianjin’s sole and exclusive property. This agreement has a term of 10 years and may be extended unilaterally by CCM Tianjin with CCM Tianjin’s written confirmation prior to the expiration date. E-commerce Tianjin cannot terminate the agreement early unless CCM Tianjin commits fraud, gross negligence or illegal acts, or becomes bankrupt or winds up. 2) Exclusive Purchase Option Agreement by and among CCM Tianjin, E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu. Pursuant to the Exclusive Purchase Option Agreement, Mr. Zeyao Xue and Mr. Kai Xu granted to CCM Tianjin and any party designated by CCM Tianjin the exclusive right to purchase, at any time during the term of this agreement, all or part of the equity interests in E-commerce Tianjin, or the “Equity Interests,” at a purchase price equal to the registered capital paid by Mr. Zeyao Xue and Mr. Kai Xu for the Equity Interests, or, in the event that applicable law requires an appraisal of the Equity Interests, the lowest price permitted under applicable law. Pursuant to powers of attorney executed by Mr. Zeyao Xue and Mr. Kai Xu, they irrevocably authorized any person appointed by CCM Tianjin to exercise all shareholder rights, including but not limited to voting on their behalf on all matters requiring approval of E-commerce Tianjin’s shareholder, disposing of all or part of the shareholder’s equity interest in E-commerce Tianjin, and electing, appointing or removing directors and executive officers. The person designated by CCM Tianjin is entitled to dispose of dividends and profits on the equity interest without reliance on any oral or written instructions of Mr. Zeyao Xue and Mr. Kai Xu. The powers of attorney will remain in force for so long as Mr. Zeyao Xue and Mr. Kai Xu remain the shareholders of E-commerce Tianjin. Mr. Zeyao Xue and Mr. Kai Xu have waived all the rights which have been authorized to CCM Tianjin’s designated person under the powers of attorney. 3) Equity Pledge Agreements by and among CCM Tianjin, E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu. Pursuant to the Equity Pledge Agreements, Mr. Zeyao Xue and Mr. Kai Xu pledged all of the Equity Interests to CCM Tianjin to secure the full and complete performance of the obligations and liabilities on the part of E-commerce Tianjin and them under this and the above contractual arrangements. If E-commerce Tianjin, Mr. Zeyao Xue, or Mr. Kai Xu breaches their contractual obligations under these agreements, then CCM Tianjin, as pledgee, will have the right to dispose of the pledged equity interests. Mr. Zeyao Xue and Mr. Kai Xu agree that, during the term of the Equity Pledge Agreements, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests, and they also agree that CCM Tianjin’s rights relating to the equity pledge should not be interfered with or impaired by the legal actions of the shareholders of E-commerce Tianjin, their successors or designees. During the term of the equity pledge, CCM Tianjin has the right to receive all of the dividends and profits distributed on the pledged equity. The Equity Pledge Agreements will terminate on the second anniversary of the date when E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu have completed all their obligations under the contractual agreements described above. 4) Exclusive Operation and Use Rights Authorization letter which authorizes Chain Cloud Mall E-commerce (Tianjin) Co., Ltd, to exclusively operate and use the Chain Cloud Mall System and the authorization period is the same as the term of the Exclusive Technology Consulting and Service Agreement entered into by and between Chain Cloud Mall Network and Technology (Tianjin) Co., Ltd. and Cloud Chain Mall E-commerce (Tianjin) Co., Ltd. dated July 31, 2019. 5) GlobalKey Shared Mall Shopping Platform Software and System Transfer Agreement by and between Future Supply Chain Co., Ltd. and CCM Tianjin, pursuant to which the GlobalKey Shared Mall Shopping Platform Software and System was transferred from Future Supply China Co., Ltd. to CCM Tianjin and that both parties were wholly owned subsidiaries of the Company and transfer price is $0. (6) Spousal Consent Letters. The spouse of Mr. Kai Xu (Mr. Zeyao Xue is not married), the shareholder of E-Commerce Tianjin has signed a spousal consent letter agreeing that the equity interests in E-Commerce Tianjin held by and registered under the name of such shareholder will be disposed pursuant to the contractual agreements with CCM Network. The spouse of such shareholder agreed not to assert any rights over the equity interest in E-Commerce Tianjin held by such shareholder. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”) “Financial Instruments - Credit Losses” (“ASC 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. In November 2019, the FASB issued ASU 2019-10 “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” (“ASC 2019-10”), which defers the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, for public entities which meet the definition of a smaller reporting company. The Company will adopt ASU 2016-13 effective January 1, 2023. Management is currently evaluating the effect of the adoption of ASU 2016-13 on the consolidated financial statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. 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. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of numerators and denominators used in the computations of basic and diluted EPS | Income Share Pre-share Loss from continuing operations $ (6,634,386 ) 66,457,193 $ (0.10 ) Income from discontinuing operations $ (3,859,791 ) 66,457,193 $ (0.06 ) Basic EPS: Loss available to common stockholders from continuing operations $ (6,634,386 ) 66,457,193 $ (0.10 ) Income available to common stockholders from discontinuing operations $ (3,859,791 ) 66,457,193 $ (0.06 ) Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (6,634,386 ) 67,014,984 $ (0.10 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations $ (3,859,791 ) 67,014,984 $ (0.06 ) Income Share Pre-share Loss from continuing operations $ (2,395,965 ) 35,175,728 $ (0.07 ) Income from discontinuing operations $ (42,962 ) 35,175,728 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (2,395,965 ) 35,175,728 $ (0.07 ) Income available to common stockholders from discontinuing operations $ (42,962 ) 35,175,728 $ - Dilutive EPS: Warrants - 669,523 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (2,395,965 ) 35,845,251 $ (0.07 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ (42,962 ) 35,845,251 $ - Income Share Pre-share Loss from continuing operations $ (9,047,648 ) 63,728,685 $ (0.14 ) Income from discontinuing operations $ (2,647,316 ) 63,728,685 $ (0.04 ) Basic EPS: Loss available to common stockholders from continuing operations $ (9,047,648 ) 63,728,685 $ (0.14 ) Income available to common stockholders from discontinuing operations $ (2,647,316 ) 63,728,685 $ (0.04 ) Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (9,047,648 ) 64,286,476 $ (0.14 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ (2,647,316 ) 64,286,476 $ (0.04 ) Income Share Pre-share Loss from continuing operations $ (5,650,104 ) 36,982,973 $ (0.15 ) Income from discontinuing operations $ 119,264,056 36,982,973 $ 3.22 Basic EPS: Loss available to common stockholders from continuing operations $ (5,650,104 ) 36,982,973 $ (0.15 ) Income available to common stockholders from discontinuing operations $ 119,264,056 36,982,973 $ 3.22 Dilutive EPS: Warrants - 669,523 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (5,650,104 ) 37,652,496 $ (0.15 ) Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations. $ 119,264,056 37,652,496 $ 3.17 |
Schedule of property, plant and equipment are depreciated estimated useful lives | Machinery and equipment 5-10 years Furniture and office equipment 3-5 years Motor vehicles 5 years Leasehold Improvement 3 years |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of consolidated assets and liabilities | September 30, December 31, 2021 2020 (Unaudited) (Audited) Current assets $ 205,321 $ 66,833 Property and equipment, net 799 1,296 Total assets 206,120 68,129 Total liabilities (218,773 ) (199,113 ) Net assets $ (12,653 ) $ (130,984 ) September 30, December 31, 2021 2020 Current liabilities: (Unaudited) (Audited) Accounts payable $ 77 $ 77 Accrued expenses and other payables 1,432 81,809 Advances from customers 2,844 2,908 Total current liabilities 4,353 84,794 Amount Due to Related Party 214,420 114,319 Total liabilities 218,773 199,113 |
Schedule of operating results | Three Months Ended Nine Months Ended 2021 2020* 2021 2020* Revenue $ - $ 32,158 $ 6,638 $ 164,051 Gross profit - 25,994 601 147,800 Net income (37,532 ) (31,853 ) (58,481 ) (163,058 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accountant Receivables [Abstract] | |
Schedule of Accounts receivable, net | September 30, December 31, 2021 2020 (Unaudited) (Audited) Coal and Aluminum Ingots Supply Chain Financing/Trading $ 8,335,148 $ - Asset management service 1,018,633 - Others 87,435 - Allowance for doubtful accounts (507 ) - Total accounts receivable, net $ 9,440,709 $ - |
Schedule of Movements of allowance for doubtful accounts | Beginning balance $ - $ - Addition 507 - Ending balance $ 507 $ - |
Schedule of Accounts receivable | September 30, December 31, 2021 2020 (Unaudited) (Audited) Debtor A $ 88.28 % $ - Debtor B 10.79 % - Debtor C 0.93 % - Total accounts receivable, net $ 100 % $ - |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Current Assets [Abstract] | |
Schedule the amount of other current assets | September 30, December 31, 2021 2020 (Unaudited) (Audited) Prepayments for Coal and Aluminum Ingots Supply Chain Financing/Trading $ 2,412,372 $ - Prepayment for properties 2,358,960 Prepaid expenses 741,773 4,517 Others 147,921 10,727 Total $ 5,661,026 $ 15,244 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Acquisition [Abstract] | |
Schedule of fair values of net assets acquired and liabilities | Accounts receivable $ 1,150,199 Other receivables 27,680 Other current assets 3,737 Property, plant and equipment, net 53,913 Amount Due from Related Party 38,296 Goodwill 16,727,897 Accrued expenses and other payables (48,858 ) Total purchase price for acquisition $ 17,952,864 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases Disclosure [Abstract] | |
Schedule of maturities of lease liabilities | Operating As of September 30, Lease From October 1, 2021 to July 31, 2022 $ 162,122 Total $ 162,122 Less: amounts representing interest $ 4,371 Present Value of future minimum lease payments 157,751 Less: Current obligations 157,751 Long term obligations $ - |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and equipment | September 30, December 31, 2021 2020 (Unaudited) (Audited) Office equipment, fixtures and furniture $ 140,305 $ 6,299 Vehicle 510,800 - Leasehold Improvement 37,842 - Subtotal 688,946 6,299 Less: accumulated depreciation and amortization (56,129 ) (3,620 ) Impairment (6,109 ) - Total $ 626,709 $ 2,679 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accountant Payables [Abstract] | |
Schedule of accounts payable | September 30, December 31, 2021 2020 (Unaudited) (Audited) Accounts payable - Coal and Aluminum Ingots Supply Chain Financing/Trading $ 1,211,043 $ - Other 78 76 Total $ 1,211,121 $ 76 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expense and other payables | September 30, December 31, 2021 2020 (Unaudited) (Audited) Legal fee and other professionals $ 46,793 $ 457,276 Wages and employee reimbursement 131,608 52,290 Suppliers 6,239 1,126,968 Accruals 123,392 117,917 Total $ 308,032 $ 1,754,451 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Convertible Notes Payable [Abstract] | |
Schedule of convertible debt | September 30, December 31, 2021 2020 (Unaudited) (Audited) Beginning $ 1,163,146 $ 957,990 Addition - 905,392 Payment (1,163,146 ) - Conversion - (700,236 ) Balance $ - $ 1,163,146 |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of due to related parties | Name Amount Relationship Note Zhi Yan $ 258,210 General Manager of a subsidiary of the Company Accrued expenses, interest free and payment on demand. Jing Chen 18,613 Vice president of the Company Accrued expenses, interest free and payment on demand. Reits (Beijing) Technology Co., Ltd 15,612 Zhi Yan is the legal representative of this company Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan was the general manager of our subsidiary. The amount is interest free and payment on demand. Shaanxi Chunlv Ecological Agriculture Co. Ltd. 253,515 Shaanxi Fu Chen holds 80% interest of this company Other payables, interest free and payment on demand. Kai Xu 25,130 Deputy General Manager of a subsidiary of the Company Accrued expenses, interest free and payment on demand. Shaanxi Fuju Mining Co., Ltd 3,238 Shaanxi Fu Chen holds 80% interest of this company Other payables, interest free and payment on demand. Total $ 574,318 |
Schedule of due from related parties | Name Amount Relationship Note Shaanxi Fu Chen Venture Capital Management Co. Ltd. (“Shaanxi Fu Chen”) 231,289 Two common shareholders with Shaanxi Fu Chen Loan receivables*, interest free and payment on demand. Bin Wu 18,514 A shareholder of a Company’s subsidiary Advance to pay for the incorporation costs of the establishment of the subsidiary in Dubai* Amount is interest free and payment on demand. Zeyao Xue 15,950 Son of the President of the Company, a shareholder of the VIE of the Company and a major shareholder of the Company Prepaid expenses*, interest free and payment on demand. NT SPC Fund 38,296 Funds managed by Nice Talent Asset Management Limited Other receivables, interest free and payment on demand. Ming Yi 1,357 Chief Financial Officer of the Company Prepaid expenses*, interest free and payment on demand. Ola Johannes Lind 49,260 Chief Executive Officer of the FTFT CAPITAL INVESTMENTS L.L.C, a subsidiary of the Company Prepaid expenses*, interest free and payment on demand. Total $ 354,666 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of loss from discontinued operations | Three Months Ended Nine Months Ended 2021 2020* 2021 2020* REVENUES $ (8,800 ) $ 207 $ 1,180,528 $ 1,595 COST OF SALES 34 122 573,716 (63 ) GROSS PROFIT (8,834 ) 85 606,812 1,658 OPERATING EXPENSES: General and administrative 142,741 247,069 12,280 264,805 Selling expenses 493 371 493 2,441 Bad debt provision - 2,990 (3,075 ) 4,075 Total 143,234 250,430 9,698 271,321 OTHER INCOME (EXPENSE) Interest income (281,079 ) 537 229 568 Interest expenses (370 ) 45 (370 ) - Other income(expenses) net 253,173 90,854 279,363 91,287 Total (28,276 ) 91,436 279,222 91,855 Income (loss) from discontinued operations before income tax (180,344 ) (158,909 ) 876,336 (177,808 ) Income tax provision - - - - Income (loss) from discontinued operation before noncontrolling interest (180,344 ) (158,909 ) 876,336 (177,808 ) Loss on disposal of discontinued operations - - - - (INCOME) LOSS FROM DISCONTINUED OPERATION (180,344 ) (158,909 ) 876,336 (177,808 ) |
Schedule of assets and liabilities related to discontinued operations | September 30, December 31, Cash $ 516 $ 365,714 Other current assets - 243,586 Loan receivables - 5,355,944 Property, plant and equipment, net 8,786 14,049 Amount due from related parties 14,599 62,553 Total assets related to discontinued operations $ 23,901 6,041,846 Accounts payable 248,253 250,288 Accrued expenses $ 282,503 $ 556,407 Loan payables - 379,522 Amount due to related parties 466,043 1,068,879 Total liabilities related to discontinued operations $ 996,799 $ 2,255,096 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment gross profit reportable segment | Coals and Asset Total Reportable segment revenue $ 17,540,731 $ 2,101,050 $ 19,641,781 Inter-segment loss 7,896,754 - 7,896,754 Revenue from external customers 9,643,977 2,101,050 11,745,027 Segment gross profit $ 296,173 $ 686,911 $ 983,084 CCM Sales of Others Total Reportable segment revenue $ 29,779 $ 4,264 $ 9,407 $ 43,450 Inter-segment loss - - - - Revenue from external customers $ 29,779 4,264 9,407 43,450 Segment gross profit $ 24,561 $ 2,012 $ 3,483 $ 30,056 CCM Coal and Asset Total Reportable segment revenue $ 85 $ 19,646,645 $ 2,101,049 $ 21,747,779 Inter-segment loss - 9,243,885 - 9,243,885 Revenue from external customers $ 85 10,402,760 2,101,049 12,503,894 Segment gross profit $ 85 $ (247,611 ) $ 686,909 $ 439,383 CCM Sales of Others Total Reportable segment revenue $ 333,425 $ 6,399 $ 15,876 $ 355,700 Inter-segment loss - - - - Revenue from external customers $ 333,425 6,399 15,876 355,700 Segment gross profit $ 323,973 $ 3,006 $ 5,270 $ 332,249 |
Corporate Information (Details)
Corporate Information (Details) | Aug. 06, 2021 |
Accounting Policies [Abstract] | |
Acquired equity interest | 90.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 9 Months Ended | ||||
Feb. 27, 2020USD ($) | Feb. 27, 2020CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥)¥ / shares | Sep. 30, 2020USD ($)$ / shares | Dec. 31, 2020$ / shares | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total price | $ 85,714 | ¥ 600,000 | ||||
Number of operating segments | 5 | 5 | ||||
Government subsidies recognized | ¥ | ¥ 500,000 | |||||
Increase in bad debt expense | $ | $ (15,255) | $ 240,000 | ||||
Exchange rate per share | (per share) | ¥ 6.49 | $ 6.52 | ||||
Average exchange rates per share | (per share) | ¥ 6.47 | $ 6.99 | ||||
Variable interest entities agreement, term | 10 years | 10 years | ||||
Minimum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Property and equipment ranges | 3.00% | |||||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Property and equipment ranges | 5.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of numerators and denominators used in the computations of basic and diluted EPS - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Schedule of numerators and denominators used in the computations of basic and diluted EPS [Abstract] | ||||||
Loss from continuing operations income | $ (6,634,386) | $ (2,395,965) | $ (9,047,648) | $ (5,650,104) | ||
Loss from continuing operations share | 66,457,193 | 35,175,728 | 63,728,685 | 36,982,973 | ||
Loss from continuing operations pre-share amount | $ (0.1) | $ (0.07) | $ (0.14) | $ (0.15) | ||
Income from discontinuing operations income | $ (3,859,791) | $ (42,962) | [1] | $ (2,647,316) | $ 119,264,056 | [1] |
Income from discontinuing operations share | 66,457,193 | 35,175,728 | 63,728,685 | 36,982,973 | ||
Income from discontinuing operations pre-share amount | $ (0.06) | $ (0.04) | $ 3.22 | |||
Basic EPS: | ||||||
Loss available to common stockholders from continuing operations income | $ (6,634,386) | $ (2,395,965) | $ (9,047,648) | $ (5,650,104) | ||
Loss available to common stockholders from continuing operations share | 66,457,193 | 35,175,728 | 63,728,685 | 36,982,973 | ||
Loss available to common stockholders from continuing operations pre-share amount | $ (0.1) | $ (0.07) | $ (0.14) | $ (0.15) | ||
Income available to common stockholders from discontinuing operations income | $ (3,859,791) | $ (42,962) | [1] | $ (2,647,316) | $ 119,264,056 | [1] |
Income available to common stockholders from discontinuing operations share | 66,457,193 | 35,175,728 | 63,728,685 | 36,982,973 | ||
Income available to common stockholders from discontinuing operations pre-share amount | $ (0.06) | $ (0.04) | $ 3.22 | |||
Dilutive EPS: | ||||||
Warrants income | ||||||
Warrants share | 557,791 | 669,523 | 557,791 | 669,523 | ||
Warrants pre-share amount | ||||||
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations income | $ (6,634,386) | $ (2,395,965) | $ (9,047,648) | $ (5,650,104) | ||
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations share | 67,014,984 | 35,845,251 | 64,286,476 | 37,652,496 | ||
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations pre-share amount | $ (0.1) | $ (0.07) | $ (0.14) | $ (0.15) | ||
Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations income | $ (3,859,791) | $ (42,962) | $ (2,647,316) | $ 119,264,056 | ||
Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations share | 67,014,984 | 35,845,251 | 64,286,476 | 37,652,496 | ||
Diluted Earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinuing operations pre-share amount | $ (0.06) | $ (0.04) | $ 3.17 | |||
[1] | Reclassification |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of property, plant and equipment are depreciated estimated useful lives | 9 Months Ended |
Sep. 30, 2021 | |
Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property, plant and equipment are depreciated estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvement [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property, plant and equipment are depreciated estimated useful lives [Line Items] | |
Estimated useful lives | 3 years |
Minimum [Member] | Machinery and equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property, plant and equipment are depreciated estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Minimum [Member] | Furniture and office equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property, plant and equipment are depreciated estimated useful lives [Line Items] | |
Estimated useful lives | 3 years |
Maximum [Member] | Machinery and equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property, plant and equipment are depreciated estimated useful lives [Line Items] | |
Estimated useful lives | 10 years |
Maximum [Member] | Furniture and office equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property, plant and equipment are depreciated estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - Schedule of consolidated assets and liabilities - Variable Interest Entity [Member] - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | $ 205,321 | $ 66,833 |
Property and equipment, net | 799 | 1,296 |
Total assets | 206,120 | 68,129 |
Total liabilities | (218,773) | (199,113) |
Net assets | (12,653) | (130,984) |
Accounts payable | 77 | 77 |
Accrued expenses and other payables | 1,432 | 81,809 |
Advances from customers | 2,844 | 2,908 |
Total current liabilities | 4,353 | 84,794 |
Amount Due to Related Party | 214,420 | 114,319 |
Total liabilities | $ 218,773 | $ 199,113 |
Variable Interest Entity (Det_2
Variable Interest Entity (Details) - Schedule of operating results - Variable Interest Entity [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenue | $ 32,158 | $ 6,638 | $ 164,051 | |
Gross profit | 25,994 | 601 | 147,800 | |
Net income | $ (37,532) | $ (31,853) | $ (58,481) | $ (163,058) |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable, net - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of accounts receivable, net [Abstract] | ||
Coal and Aluminum Ingots Supply Chain Financing/Trading | $ 8,335,148 | |
Asset management service | 1,018,633 | |
Others | 87,435 | |
Allowance for doubtful accounts | (507) | |
Total accounts receivable, net | $ 9,440,709 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of movements of allowance for doubtful accounts - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of movements of allowance for doubtful accounts [Abstract] | ||
Beginning balance | ||
Addition | 507 | |
Ending balance | $ 507 |
Accounts Receivable (Details)_3
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | $ 1 | |
Debtor A [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 0.8828 | |
Debtor B [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 0.1079 | |
Debtor C [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | $ 0.0093 |
Other Receivables (Details)
Other Receivables (Details) - 9 months ended Sep. 30, 2021 $ in Thousands | USD ($) | EUR (€) | EUR (€) |
Other Receviables [Abstract] | |||
Other receivables | $ 1,820 | ||
Percentage of issued and outstanding | 100.00% | 100.00% | |
Purchase price (in Euro) | € | € 685,000 | ||
Deposite amount | $ 790 | € 685,000 | |
Expected cash balance | 540 | € 400,000 | |
Paid deposit | $ 490 |
Loan Receivables (Details)
Loan Receivables (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Jul. 30, 2021 | Oct. 16, 2021 | Sep. 30, 2021 | |
Receivables [Abstract] | |||
Loan receivables | $ 6,310 | ||
Loan agreement, description | Future FinTech (Hong Kong) Limited (“FTFT HK”), a wholly owned subsidiary of the Company, entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned up to the amount of USD 6 million to the third party at the annual interest rate of 10% from July 31, 2021 to January 30, 2022. | ||
Annual interest rate | 10.00% | ||
Interest free Loan amount | $ 310 |
Other Current Assets (Details)
Other Current Assets (Details) - Schedule the amount of other current assets - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule the amount of other current assets [Abstract] | ||
Prepayments for Coal and Aluminum Ingots Supply Chain Financing/Trading | $ 2,412,372 | |
Prepayment for properties | 2,358,960 | |
Prepaid expenses | 741,773 | 4,517 |
Others | 147,921 | 10,727 |
Total | $ 5,661,026 | $ 15,244 |
Goodwill (Details)
Goodwill (Details) | 12 Months Ended | ||||
Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Aug. 06, 2021HKD ($) | Aug. 04, 2021USD ($)shares | |
Goodwill (Details) [Line Items] | |||||
Goodwill | $ 16,727,897 | ||||
Percentage of issued and outstanding shares | 40.00% | 40.00% | 90.00% | 60.00% | |
Common stock paid | $ 144,000,000 | $ 11,220,000 | |||
Issuance of common stock | shares | 2,244,156 | ||||
Purchase Price of common stock | $ 7.01 | ||||
Subsequent Event [Member] | |||||
Goodwill (Details) [Line Items] | |||||
Purchase Price of common stock | $ 7.01 |
Acquisition (Details)
Acquisition (Details) | Aug. 06, 2021HKD ($) | Aug. 04, 2021USD ($)shares | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021USD ($) | Dec. 31, 2022 |
Acquisition (Details) [Line Items] | ||||||
Issued and outstanding, percentage | 90.00% | |||||
Purchase price (in Dollars) | $ 144,000,000 | |||||
Purchase price percentage | 60.00% | 7.01% | ||||
Paid amount (in Dollars) | $ 11,220,000 | |||||
Common stock shares (in Shares) | shares | 2,244,156 | |||||
Purchase, price percentage | 40.00% | 40.00% | 40.00% | |||
Net sales (in Dollars) | $ 686,391 | |||||
Net gain (in Dollars) | $ 244,761 | |||||
Forecast [Member] | ||||||
Acquisition (Details) [Line Items] | ||||||
Purchase price percentage | 7.01% |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of fair values of net assets acquired and liabilities | Sep. 30, 2021USD ($) |
Schedule of fair values of net assets acquired and liabilities [Abstract] | |
Accounts receivable | $ 1,150,199 |
Other receivables | 27,680 |
Other current assets | 3,737 |
Property, plant and equipment, net | 53,913 |
Amount Due from Related Party | 38,296 |
Goodwill | 16,727,897 |
Accrued expenses and other payables | (48,858) |
Total purchase price for acquisition | $ 17,952,864 |
Leases (Details)
Leases (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Leases (Details) [Line Items] | |
Operating lease cost (in Dollars) | $ 160 |
Weighted average remaining lease term | 9 months 29 days |
Weighted average discount rate | 6.00% |
Minimum [Member] | |
Leases (Details) [Line Items] | |
Operating leases have remaining lease, term | 1 year |
Leases (Details) - Schedule of
Leases (Details) - Schedule of maturities of lease liabilities | Sep. 30, 2021USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
From October 1, 2021 to July 31, 2022 | $ 162,122 |
Total | 162,122 |
Less: amounts representing interest | 4,371 |
Present Value of future minimum lease payments | 157,751 |
Less: Current obligations | 157,751 |
Long term obligations |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
General and administration expenses | $ 14,018 | $ 1,073 |
Depreciation expense |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of property and equipment [Abstract] | ||
Office equipment, fixtures and furniture | $ 140,305 | $ 6,299 |
Vehicle | 510,800 | |
Leasehold Improvement | 37,842 | |
Subtotal | 688,946 | 6,299 |
Less: accumulated depreciation and amortization | (56,129) | (3,620) |
Impairment | (6,109) | |
Total | $ 626,709 | $ 2,679 |
Accounts Payable (Details) - Sc
Accounts Payable (Details) - Schedule of accounts payable - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of accounts payable [Abstract] | ||
Accounts payable - Coal and Aluminum Ingots Supply Chain Financing/Trading | $ 1,211,043 | |
Other | 78 | 76 |
Total | $ 1,211,121 | $ 76 |
Loan Payables (Details)
Loan Payables (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Loan Payables (Details) [Line Items] | |
Loan payable | $ 190 |
Shaanxi Entai Bio-Technology Co. Ltd. [Member] | |
Loan Payables (Details) [Line Items] | |
Loan payable | 190 |
Pledge loan amount | $ 190 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of accrued expense and other payables - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of accrued expense and other payables [Abstract] | ||
Legal fee and other professionals | $ 46,793 | $ 457,276 |
Wages and employee reimbursement | 131,608 | 52,290 |
Suppliers | 6,239 | 1,126,968 |
Accruals | 123,392 | 117,917 |
Total | $ 308,032 | $ 1,754,451 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) - Schedule of convertible debt - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of convertible debt [Abstract] | ||
Beginning | $ 1,163,146 | $ 957,990 |
Addition | 905,392 | |
Payment | (1,163,146) | |
Conversion | (700,236) | |
Balance | $ 1,163,146 |
Deferred Liabilites (Details)
Deferred Liabilites (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Liabilites (Details) [Line Items] | |||||
Purchase, price percentage | 40.00% | 40.00% | 40.00% | ||
Proceeds from Issuance of Common Stock | $ 7.01 | ||||
Nice Talent Asset Management Limited [Member] | |||||
Deferred Liabilites (Details) [Line Items] | |||||
Deferred liabilities | $ 7,010,000 | ||||
Purchase, price percentage | 40.00% | 40.00% | |||
Proceeds from Issuance of Common Stock | $ 7.01 |
Related Party Transaction (Deta
Related Party Transaction (Details) - Schedule of due to related parties | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Related Party Transaction (Details) - Schedule of due to related parties [Line Items] | |
Loan amount | $ 574,318 |
Zhi Yan [Member] | |
Related Party Transaction (Details) - Schedule of due to related parties [Line Items] | |
Loan amount | $ 258,210 |
Relationship | General Manager of a subsidiary of the Company |
Note | Accrued expenses, interest free and payment on demand. |
Jing chen [Member] | |
Related Party Transaction (Details) - Schedule of due to related parties [Line Items] | |
Loan amount | $ 18,613 |
Relationship | Vice president of the Company |
Note | Accrued expenses, interest free and payment on demand. |
Reits (Beijing) Technology Co., Ltd [Member] | |
Related Party Transaction (Details) - Schedule of due to related parties [Line Items] | |
Loan amount | $ 15,612 |
Relationship | Zhi Yan is the legal representative of this company |
Note | Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan was the general manager of our subsidiary. The amount is interest free and payment on demand. |
Shaanxi Chunlv Ecological Agriculture Co. Ltd. [Member] | |
Related Party Transaction (Details) - Schedule of due to related parties [Line Items] | |
Loan amount | $ 253,515 |
Relationship | Shaanxi Fu Chen holds 80% interest of this company |
Note | Other payables, interest free and payment on demand. |
Kai Xu [Member] | |
Related Party Transaction (Details) - Schedule of due to related parties [Line Items] | |
Loan amount | $ 25,130 |
Relationship | Deputy General Manager of a subsidiary of the Company |
Note | Accrued expenses, interest free and payment on demand. |
Shaanxi Fuju Mining Co., Ltd [Member] | |
Related Party Transaction (Details) - Schedule of due to related parties [Line Items] | |
Loan amount | $ 3,238 |
Relationship | Shaanxi Fu Chen holds 80% interest of this company |
Note | Other payables, interest free and payment on demand. |
Related Party Transaction (De_2
Related Party Transaction (Details) - Schedule of due from related parties | 9 Months Ended | |
Sep. 30, 2021USD ($) | ||
Related Party Transaction (Details) - Schedule of due from related parties [Line Items] | ||
Loan amount | $ 354,666 | |
Shaanxi Fu Chen Venture Capital Management Co. Ltd. [Member] | ||
Related Party Transaction (Details) - Schedule of due from related parties [Line Items] | ||
Loan amount | $ 231,289 | |
Relationship | Two common shareholders with Shaanxi Fu Chen | |
Note | Loan receivables*, interest free and payment on demand. | [1] |
Bin Wu [Member] | ||
Related Party Transaction (Details) - Schedule of due from related parties [Line Items] | ||
Loan amount | $ 18,514 | |
Relationship | A shareholder of a Company’s subsidiary | |
Note | Advance to pay for the incorporation costs of the establishment of the subsidiary in Dubai* Amount is interest free and payment on demand. | [1] |
Zeyao Xue [Member] | ||
Related Party Transaction (Details) - Schedule of due from related parties [Line Items] | ||
Loan amount | $ 15,950 | |
Relationship | Son of the President of the Company, a shareholder of the VIE of the Company and a major shareholder of the Company | |
Note | Prepaid expenses*, interest free and payment on demand. | [1] |
NT SPC Fund [Member] | ||
Related Party Transaction (Details) - Schedule of due from related parties [Line Items] | ||
Loan amount | $ 38,296 | |
Relationship | Funds managed by Nice Talent Asset Management Limited | |
Note | Other receivables, interest free and payment on demand. | |
Ming Yi [Member] | ||
Related Party Transaction (Details) - Schedule of due from related parties [Line Items] | ||
Loan amount | $ 1,357 | |
Relationship | Chief Financial Officer of the Company | |
Note | Prepaid expenses*, interest free and payment on demand. | [1] |
Ola Johannes Lind [Member] | ||
Related Party Transaction (Details) - Schedule of due from related parties [Line Items] | ||
Loan amount | $ 49,260 | |
Relationship | Chief Executive Officer of the FTFT CAPITAL INVESTMENTS L.L.C, a subsidiary of the Company | |
Note | Prepaid expenses*, interest free and payment on demand. | [1] |
[1] | The related party transactions have been approved by the Company’s Audit Committee. |
Income Tax (Details)
Income Tax (Details) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 0.00% | 0.00% |
Income tax, description | Effective on January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules imposed a unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign-invested enterprises in the PRC, unless they qualify under certain limited exceptions. All of the Companies’ Chinese subsidiaries and VIE were subject to an enterprise income tax rate of 25%. |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) | Jul. 12, 2021 | Jan. 25, 2021 | Feb. 23, 2020 | Jan. 25, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 |
Share Based Compensation (Details) [Line Items] | |||||||
Shares granted | $ 1,953,000 | ||||||
Shares par value (in Dollars per share) | $ 0.001 | ||||||
Closing price (in Dollars per share) | $ 2.81 | ||||||
Expenses | $ 5,490,000 | ||||||
Consulting fee | $ 3,000,000 | ||||||
Restricted shares (in 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 expenses | $ 890,000 | $ 1,190,000 | |||||
Stock closing price (in Dollars per share) | $ 0.794 | ||||||
Issued upon shares related to consultant (in Shares) | 1,500,000 | ||||||
Consultant shares (in Shares) | 1,125,000 | ||||||
Consulting Service Agreement [Member] | |||||||
Share Based Compensation (Details) [Line Items] | |||||||
Stock related compensation expenses | $ 890,000 | ||||||
Stock closing price (in Dollars per share) | $ 0.794 | ||||||
Consultant shares (in Shares) | 1,125,000 | ||||||
Shanchun Huang [Member] | |||||||
Share Based Compensation (Details) [Line Items] | |||||||
Shares granted | $ 500,000 | ||||||
Yongke Xue [Member] | |||||||
Share Based Compensation (Details) [Line Items] | |||||||
Shares granted | 300,000 | ||||||
Ming Yi [Member] | |||||||
Share Based Compensation (Details) [Line Items] | |||||||
Shares granted | 20,000 | ||||||
Yang Liu [Member] | |||||||
Share Based Compensation (Details) [Line Items] | |||||||
Shares granted | $ 40,000 |
Common Stock (Details)
Common Stock (Details) - USD ($) | Aug. 06, 2021 | Apr. 01, 2021 | Feb. 09, 2021 | Jan. 11, 2021 | Apr. 12, 2017 | Dec. 29, 2021 | Jul. 26, 2021 | Dec. 29, 2020 | Dec. 24, 2020 | Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Apr. 05, 2021 | Feb. 11, 2021 | Jan. 13, 2021 | Dec. 31, 2020 |
Common Stock (Details) [Line Items] | ||||||||||||||||
Aggregate of common stock (in Dollars) | $ 7.01 | |||||||||||||||
Aggregate of common stock | 4,210,530 | |||||||||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||||||||||||||
Securities purchase agreement, description | the Company, through its wholly owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90% of the issued and outstanding shares of Nice Talent Asset Management Limited from Joy Rich Enterprises Limited (the “Nice Shares”) for HK$144,000,000 (the “Purchase Price”) which shall be paid in the shares of common stock of the Company (the “Company Shares”). 60% of the purchase price ($11.22 million) paid in 2,244,156 shares of common stock of the Company on August 4, 2021, at a price of $5 per share. | pursuant to which the Company agreed to sell to the Purchasers in a private placement 548,799 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at a purchase price of $2.83 per share for an aggregate offering price of $1,553,101 (the “Private Placement”). The Private Placement was completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. | ||||||||||||||
Shares of common stock issued based upon cashless exercises | 1,230 | |||||||||||||||
Securities Purchase Agreement [Member] | ||||||||||||||||
Common Stock (Details) [Line Items] | ||||||||||||||||
Aggregate units | 4,210,530 | |||||||||||||||
Purchase price of per share (in Dollars per share) | $ 6.1 | $ 5.95 | $ 5 | $ 1.9 | ||||||||||||
Aggregate gross proceeds (in Dollars) | $ 32,380,492 | $ 10,992,250 | $ 13,797,732 | $ 8,000,007 | ||||||||||||
Aggregate of common stock (in Dollars) | $ 4,210,530 | |||||||||||||||
Common stock shares, issued | 4,210,530 | |||||||||||||||
Exercise price (in Dollars per share) | $ 2.15 | |||||||||||||||
Underwriting discounts and commissions (in Dollars) | $ 7,338,500 | |||||||||||||||
Aggregate of shares issued | 4,210,530 | |||||||||||||||
Aggregate of shares issued | 5,737,706 | 2,000,000 | 3,000,000 | |||||||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||
Shares issued | 5,737,706 | 2,000,000 | 3,000,000 | |||||||||||||
Securities purchase agreement, description | the Company entered into a Securities Purchase Agreement with certain purchasers (the “Purchasers”), pursuant to which the Company offered and sold to the Purchasers, in a registered direct offering, an aggregate of 862,097 shares of common stock, par value $0.001 per share. In a concurrent private placement, the Company also issued to the each of the Purchasers a warrant to purchase one (1) share of the Company’s Common Stock for each share purchased under the Purchase Agreement, pursuant to that certain Common Stock Purchase Warrant, by and between the Company and each Purchaser (each, a “Warrant”, and collectively, the “Warrants”). The Warrants will be exercisable beginning on the six-months anniversary of the date of issuance at an initial exercise price of $5.20 per share and will expire on the five and a half year anniversary of the date of issuance. | |||||||||||||||
Warrants [Member] | ||||||||||||||||
Common Stock (Details) [Line Items] | ||||||||||||||||
Aggregate units | 319,350 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Common Stock (Details) [Line Items] | ||||||||||||||||
Aggregate units | 1,654,224 | |||||||||||||||
Placement Agent Warrant [Member] | ||||||||||||||||
Common Stock (Details) [Line Items] | ||||||||||||||||
Exercise price (in Dollars per share) | $ 2.375 | |||||||||||||||
Number of common stock purchase by warrant | 210,526 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 1 Months Ended | |
Apr. 19, 2021 | Sep. 18, 2019 | |
Discontinued Operations (Details) [Line Items] | ||
Discontinued operation, description | Pursuant to the terms of the Agreement, the Buyer purchased 100% ownership of HeDeTang Holdings (HK) Ltd. (“HeDeTang HK”) from SkyPeople Foods, 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’s and 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 $99.87 million. There was no income or loss from HeDeTang HK from January 1, 2020 to the close of the Sale Transaction. | |
Commercial Management (Beijing) Co., [Member] | ||
Discontinued Operations (Details) [Line Items] | ||
Loss on disposal | $ 21,577 | |
Guangchengji (Guangdong) Industrial Co., Ltd [Member] | ||
Discontinued Operations (Details) [Line Items] | ||
Loss on disposal | $ 3,679,447 |
Discontinued Operations (Deta_2
Discontinued Operations (Details) - Schedule of loss from discontinued operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of loss from discontinued operations [Abstract] | ||||
REVENUES | $ (8,800) | $ 207 | $ 1,180,528 | $ 1,595 |
COST OF SALES | 34 | 122 | 573,716 | (63) |
GROSS PROFIT | (8,834) | 85 | 606,812 | 1,658 |
OPERATING EXPENSES: | ||||
General and administrative | 142,741 | 247,069 | 12,280 | 264,805 |
Selling expenses | 493 | 371 | 493 | 2,441 |
Bad debt provision | 2,990 | (3,075) | 4,075 | |
Total | 143,234 | 250,430 | 9,698 | 271,321 |
OTHER INCOME (EXPENSE) | ||||
Interest income | (281,079) | 537 | 229 | 568 |
Interest expenses | (370) | 45 | (370) | |
Other income(expenses) net | 253,173 | 90,854 | 279,363 | 91,287 |
Total | (28,276) | 91,436 | 279,222 | 91,855 |
Income (loss) from discontinued operations before income tax | (180,344) | (158,909) | 876,336 | (177,808) |
Income tax provision | ||||
Income (loss) from discontinued operation before noncontrolling interest | (180,344) | (158,909) | 876,336 | (177,808) |
Loss on disposal of discontinued operations | ||||
(INCOME) LOSS FROM DISCONTINUED OPERATION | $ (180,344) | $ (158,909) | $ 876,336 | $ (177,808) |
Discontinued Operations (Deta_3
Discontinued Operations (Details) - Schedule of assets and liabilities related to discontinued operations - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of assets and liabilities related to discontinued operations [Abstract] | ||
Cash | $ 516 | $ 365,714 |
Other current assets | 243,586 | |
Loan receivables | 5,355,944 | |
Property, plant and equipment, net | 8,786 | 14,049 |
Amount due from related parties | 14,599 | 62,553 |
Total assets related to discontinued operations | 23,901 | 6,041,846 |
Accounts payable | 248,253 | 250,288 |
Accrued expenses | 282,503 | 556,407 |
Loan payables | 379,522 | |
Amount due to related parties | 466,043 | 1,068,879 |
Total liabilities related to discontinued operations | $ 996,799 | $ 2,255,096 |
Segment Reporting (Details)
Segment Reporting (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Number of segments | 4 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of segment gross profit reportable segment - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | $ 29,779 | $ 85 | $ 333,425 | |
Inter-segment loss | ||||
Revenue from external customers | 29,779 | 85 | 333,425 | |
Segment gross profit | 24,561 | 85 | 323,973 | |
CCM Shopping Mall Membership [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | $ 17,540,731 | 4,264 | 19,646,645 | 6,399 |
Inter-segment loss | 7,896,754 | 9,243,885 | ||
Revenue from external customers | 9,643,977 | 4,264 | 10,402,760 | 6,399 |
Segment gross profit | 296,173 | 2,012 | (247,611) | 3,006 |
Coal supply chain financing/trading [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | 2,101,050 | 2,101,049 | ||
Inter-segment loss | ||||
Revenue from external customers | 2,101,050 | 2,101,049 | ||
Segment gross profit | 686,911 | 686,909 | ||
Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | 19,641,781 | 43,450 | 21,747,779 | 355,700 |
Inter-segment loss | 7,896,754 | 9,243,885 | ||
Revenue from external customers | 11,745,027 | 43,450 | 12,503,894 | 355,700 |
Segment gross profit | $ 983,084 | 30,056 | $ 439,383 | 332,249 |
Sales of Goods [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | 9,407 | 15,876 | ||
Inter-segment loss | ||||
Revenue from external customers | 9,407 | 15,876 | ||
Segment gross profit | $ 3,483 | $ 5,270 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Damages and attorneys’ fees | $ 7,000,000 |