Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 17, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | CBAK ENERGY TECHNOLOGY, INC. | |
Trading Symbol | CBAT | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 88,974,191 | |
Amendment Flag | false | |
Entity Central Index Key | 0001117171 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-32898 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 88-0442833 | |
Entity Address, Address Line One | BAK Industrial Park | |
Entity Address, Address Line Two | Meigui Street | |
Entity Address, Address Line Three | Huayuankou Economic Zone | |
Entity Address, City or Town | Dalian City | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 116450 | |
City Area Code | (86)(411) | |
Local Phone Number | -3918-5985 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 5,608,465 | $ 7,357,875 |
Pledged deposits | 25,142,097 | 18,996,749 |
Trade accounts and bills receivable, net | 50,265,784 | 49,907,129 |
Inventories | 41,871,149 | 30,133,340 |
Prepayments and other receivables | 14,516,068 | 12,746,990 |
Receivables from former subsidiary | 1,134,585 | 2,263,955 |
Amount due from non-controlling interest, current | 126,161 | 125,883 |
Amount due from related party, current | 473,104 | 472,061 |
Income tax recoverable | 47,295 | 47,189 |
Investment in sales-type lease, net | 792,262 | 790,516 |
Total current assets | 139,976,970 | 122,841,687 |
Property, plant and equipment, net | 88,532,811 | 90,042,773 |
Construction in progress | 28,410,293 | 27,343,092 |
Non-marketable equity securities | 714,504 | 712,930 |
Prepaid land use rights | 13,737,871 | 13,797,230 |
Intangible assets, net | 1,834,351 | 1,961,739 |
Operating lease right-of-use assets, net | 1,659,214 | 1,968,032 |
Investment in sales-type lease, net | 714,933 | 838,528 |
Amount due from related party, non-current | 63,081 | 62,941 |
Deferred tax assets, net | 1,500,564 | 1,403,813 |
Goodwill | 1,650,629 | 1,645,232 |
Total assets | 278,795,221 | 262,617,997 |
Liabilities | ||
Trade accounts and bills payable | 79,270,001 | 65,376,212 |
Short-term bank borrowings | 14,674,721 | 8,811,820 |
Other short-term loans | 746,699 | 4,679,122 |
Accrued expenses and other payables | 24,477,309 | 22,963,700 |
Payables to former subsidiaries, net | 325,624 | 326,507 |
Deferred government grants, current | 2,270,463 | 3,834,481 |
Product warranty provisions | 104,122 | 127,837 |
Warrants liability | 4,214,000 | 5,846,000 |
Operating lease liability, current | 711,034 | 801,797 |
Total current liabilities | 126,793,973 | 112,767,476 |
Deferred government grants, non-current | 7,207,728 | 6,189,196 |
Product warranty provisions | 1,923,542 | 1,900,429 |
Operating lease liability, non-current | 837,930 | 876,323 |
Total liabilities | 136,763,173 | 121,733,424 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock $0.001 par value; 500,000,000 authorized; 88,849,222 issued and 88,705,016 outstanding as of December 31, 2021 and March 31, 2022 | 88,849 | 88,849 |
Donated shares | 14,101,689 | 14,101,689 |
Additional paid-in capital | 241,981,141 | 241,946,362 |
Statutory reserves | 1,230,511 | 1,230,511 |
Accumulated deficit | (122,053,806) | (122,498,259) |
Accumulated other comprehensive loss | 2,880,201 | 2,489,017 |
Stockholders' equity (deficit) before Treasury Stock | 138,228,585 | 137,358,169 |
Less: Treasury shares | (4,066,610) | (4,066,610) |
Total shareholders’ equity | 134,161,975 | 133,291,559 |
Non-controlling interests | 7,870,073 | 7,593,014 |
Total equity | 142,032,048 | 140,884,573 |
Total liabilities and shareholder’s equity | $ 278,795,221 | $ 262,617,997 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 88,849,222 | 88,849,222 |
Common stock, shares outstanding | 88,705,016 | 88,705,016 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations And Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net revenues | $ 80,196,298 | $ 9,416,049 |
Cost of revenues | (74,879,944) | (7,576,620) |
Gross profit | 5,316,354 | 1,839,429 |
Operating expenses: | ||
Research and development expenses | (3,313,124) | (483,749) |
Sales and marketing expenses | (829,674) | (213,142) |
General and administrative expenses | (2,237,374) | (1,324,481) |
Recovery of (provision for) doubtful accounts | (271,443) | 154,061 |
Total operating expenses | (6,651,615) | (1,867,311) |
Operating loss | (1,335,261) | (27,882) |
Finance (expenses) income, net | 5,014 | (7,598) |
Other income, net | 285,204 | 1,217,648 |
Changes in fair value of warrants liability | 1,632,000 | 28,426,000 |
Income before income tax | 586,957 | 29,608,168 |
Income tax credit | 93,546 | |
Net income | 680,503 | 29,608,168 |
Less: Net loss (income) attributable to non-controlling interests | (236,050) | 1,114 |
Net income attributable to shareholders of CBAK Energy Technology, Inc. | 444,453 | 29,609,282 |
Net income | 680,503 | 29,608,168 |
Other comprehensive income | ||
– Foreign currency translation adjustment | 432,193 | 89,138 |
Comprehensive income | 1,112,696 | 29,697,306 |
Less: Comprehensive loss (income) attributable to non-controlling interests | (277,059) | 6,017 |
Comprehensive income attributable to CBAK Energy Technology, Inc. | $ 835,637 | $ 29,703,323 |
Income per share | ||
– Basic (in Dollars per share) | $ 0.01 | $ 0.35 |
– Diluted (in Dollars per share) | $ 0.01 | $ 0.35 |
Weighted average number of shares of common stock: | ||
– Basic (in Shares) | 88,713,841 | 84,283,605 |
– Diluted (in Shares) | 88,734,957 | 84,933,913 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) | Common stock Issued | Donated shares | Additional paid-in capital | Statutory reserves | Accumulated deficit | Accumulated other comprehensive loss | Non- controlling interests | Treasury shares | Total |
Balance at Dec. 31, 2020 | $ 79,310 | $ 14,101,689 | $ 225,278,113 | $ 1,230,511 | $ (183,984,311) | $ (239,609) | $ 7,735 | $ (4,066,610) | $ 52,406,828 |
Balance (in Shares) at Dec. 31, 2020 | 79,310,249 | (144,206) | |||||||
Net income (loss) | 29,609,282 | (1,114) | 29,608,168 | ||||||
Share-based compensation for employee and director stock awards | 148,818 | 148,818 | |||||||
Issuance of common stock and warrants | $ 8,940 | 15,621,071 | 15,630,011 | ||||||
Issuance of common stock and warrants (in Shares) | 8,939,976 | ||||||||
Foreign currency translation adjustment | 94,041 | (4,903) | 89,138 | ||||||
Balance at Mar. 31, 2021 | $ 88,250 | 14,101,689 | 241,048,002 | 1,230,511 | (154,375,029) | (145,568) | 1,718 | $ (4,066,610) | 97,882,963 |
Balance (in Shares) at Mar. 31, 2021 | 88,250,225 | (144,206) | |||||||
Balance at Dec. 31, 2021 | $ 88,849 | 14,101,689 | 241,946,362 | 1,230,511 | (122,498,259) | 2,489,017 | 7,593,014 | $ (4,066,610) | 140,884,573 |
Balance (in Shares) at Dec. 31, 2021 | 88,849,222 | (144,206) | |||||||
Net income (loss) | 444,453 | 236,050 | 680,503 | ||||||
Share-based compensation for employee and director stock awards | 34,779 | 34,779 | |||||||
Foreign currency translation adjustment | 391,184 | 41,009 | 432,193 | ||||||
Balance at Mar. 31, 2022 | $ 88,849 | $ 14,101,689 | $ 241,981,141 | $ 1,230,511 | $ (122,053,806) | $ 2,880,201 | $ 7,870,073 | $ (4,066,610) | $ 142,032,048 |
Balance (in Shares) at Mar. 31, 2022 | 88,849,222 | (144,206) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 680,503 | $ 29,608,168 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,925,584 | 704,496 |
(Recovery of) provision for doubtful accounts | 271,443 | (154,061) |
Amortization of operating lease | 187,697 | 10,052 |
Write-down of inventories | 406,152 | 233,305 |
Share-based compensation | 34,779 | 148,818 |
Changes in fair value of warrants liability | (1,632,000) | (28,426,000) |
Gain on disposal of property, plant and equipment | (53,022) | |
Changes in operating assets and liabilities: | ||
Trade and bills receivable | (519,629) | 6,314,111 |
Inventories | (12,064,192) | (1,512,723) |
Prepayments and other receivables | (1,743,638) | (451,150) |
Investment in sales-type lease | 125,303 | (1,639,959) |
Trade and bills payable | 13,733,854 | (2,941,048) |
Accrued expenses and other payables and product warranty provisions | 2,613,310 | (882,416) |
Operating lease liabilities | (7,600) | (134,149) |
Trade receivable from and payables to former subsidiaries | 1,133,083 | (60,563) |
Deferred tax assets | (93,546) | |
Net cash provided by operating activities | 5,051,103 | 763,859 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment and construction in progress | (2,717,822) | (5,681,131) |
Net cash used in investing activities | (2,717,822) | (5,681,131) |
Cash flows from financing activities | ||
Borrowings from banks | 5,836,818 | |
Repayment of borrowings from Mr. Ye Junnan | (3,938,062) | |
Repayment of borrowings to shareholders | (145,321) | |
Proceeds from issuance of shares | 65,495,011 | |
Net cash provided by financing activities | 1,898,756 | 65,349,690 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 163,901 | 336,284 |
Net increase in cash and cash equivalents and restricted cash | 4,395,938 | 60,768,702 |
Cash and cash equivalents and restricted cash at the beginning of period | 26,354,624 | 20,671,498 |
Cash and cash equivalents and restricted cash at the end of period | 30,750,562 | 81,440,200 |
Supplemental non-cash investing and financing activities: | ||
Transfer of construction in progress to property, plant and equipment | 430,973 | 176,628 |
Non-cash payment for purchases of property, plant and equipment and construction in progress by new vehicles | 61,233 | |
Lease liabilities arising from obtaining right-of-use assets | 111,834 | 245,716 |
Cash paid during the year for: | ||
Income taxes | ||
Interest, net of amounts capitalized | $ 180,279 | $ 2,314 |
Principal Activities, Basis of
Principal Activities, Basis of Presentation and Organization | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Principal Activities, Basis of Presentation and Organization | 1. Principal Activities, Basis of Presentation and Organization Principal Activities CBAK Energy Technology, Inc. (formerly known as China BAK Battery, Inc.) (“CBAK” or the “Company”) is a corporation formed in the State of Nevada on October 4, 1999 as Medina Copy, Inc. The Company changed its name to Medina Coffee, Inc. on October 6, 1999 and subsequently changed its name to China BAK Battery, Inc. on February 14, 2005. CBAK and its subsidiaries (hereinafter, collectively referred to as the “Company”) are principally engaged in the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion (known as “Li-ion” or “Li-ion cell”) high power rechargeable batteries. Prior to the disposal of BAK International Limited (“BAK International”) and its subsidiaries (see below), the batteries produced by the Company were for use in cellular telephones, as well as various other portable electronic applications, including high-power handset telephones, laptop computers, power tools, digital cameras, video camcorders, MP3 players, electric bicycles, hybrid/electric vehicles, and general industrial applications. After the disposal of BAK International and its subsidiaries on June 30, 2014, the Company will focus on the manufacture, commercialization and distribution of high power lithium ion rechargeable batteries for use in cordless power tools, light electric vehicles, hybrid electric vehicles, electric cars, electric busses, uninterruptable power supplies and other high power applications. The shares of the Company traded in the over-the-counter market through the Over-the-Counter Bulletin Board from 2005 until May 31, 2006, when the Company obtained approval to list its common stock on The NASDAQ Global Market, and trading commenced that same date under the symbol “CBAK”. On January 10, 2017, the Company filed Articles of Merger with the Secretary of State of Nevada to effectuate a merger between the Company and the Company’s newly formed, wholly owned subsidiary, CBAK Merger Sub, Inc. (the “Merger Sub”). According to the Articles of Merger, effective January 16, 2017, the Merger Sub merged with and into the Company with the Company being the surviving entity (the “Merger”). As permitted by Chapter 92A.180 of Nevada Revised Statutes, the sole purpose of the Merger was to effect a change of the Company’s name. Effective November 30, 2018, the trading symbol for common stock of the Company was changed from CBAK to CBAT. Effective at the opening of business on June 21, 2019, the Company’s common stock started trading on the Nasdaq Capital Market. Basis of Presentation and Organization On November 6, 2004, BAK International, a non-operating holding company that had substantially the same shareholders as Shenzhen BAK Battery Co., Ltd (“Shenzhen BAK”), entered into a share swap transaction with the shareholders of Shenzhen BAK for the purpose of the subsequent reverse acquisition of the Company. The share swap transaction between BAK International and the shareholders of Shenzhen BAK was accounted for as a reverse acquisition of Shenzhen BAK with no adjustment to the historical basis of the assets and liabilities of Shenzhen BAK. On January 20, 2005, the Company completed a share swap transaction with the shareholders of BAK International. The share swap transaction, also referred to as the “reverse acquisition” of the Company, was consummated under Nevada law pursuant to the terms of a Securities Exchange Agreement entered by and among CBAK, BAK International and the shareholders of BAK International on January 20, 2005. The share swap transaction has been accounted for as a capital-raising transaction of the Company whereby the historical financial statements and operations of Shenzhen BAK are consolidated using historical carrying amounts. Also on January 20, 2005, immediately prior to consummating the share swap transaction, BAK International executed a private placement of its common stock with unrelated investors whereby it issued an aggregate of 1,720,087 shares of common stock for gross proceeds of $17,000,000. In conjunction with this financing, Mr. Xiangqian Li, the Chairman and Chief Executive Officer of the Company (“Mr. Li”), agreed to place 435,910 shares of the Company’s common stock owned by him into an escrow account pursuant to an Escrow Agreement dated January 20, 2005 (the “Escrow Agreement”). Pursuant to the Escrow Agreement, 50% of the escrowed shares were to be released to the investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2005 was not at least $12,000,000, and the remaining 50% was to be released to investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2006 was not at least $27,000,000. If the audited net income of the Company for the fiscal years ended September 30, 2005 and 2006 reached the above-mentioned targets, the 435,910 shares would be released to Mr. Li in the amount of 50% upon reaching the 2005 target and the remaining 50% upon reaching the 2006 target. Under accounting principles generally accepted in the United States of America (“US GAAP”), escrow agreements such as the one established by Mr. Li generally constitute compensation if, following attainment of a performance threshold, shares are returned to a company officer. The Company determined that without consideration of the compensation charge, the performance thresholds for the year ended September 30, 2005 would be achieved. However, after consideration of a related compensation charge, the Company determined that such thresholds would not have been achieved. The Company also determined that, even without consideration of a compensation charge, the performance thresholds for the year ended September 30, 2006 would not be achieved. While the 217,955 escrow shares relating to the 2005 performance threshold were previously released to Mr. Li, Mr. Li executed a further undertaking on August 21, 2006 to return those shares to the escrow agent for the distribution to the relevant investors. However, such shares were not returned to the escrow agent, but, pursuant to a Delivery of Make Good Shares, Settlement and Release Agreement between the Company, BAK International and Mr. Li entered into on October 22, 2007 (the “Li Settlement Agreement”), such shares were ultimately delivered to the Company as described below. Because the Company failed to satisfy the performance threshold for the fiscal year ended September 30, 2006, the remaining 217,955 escrow shares relating to the fiscal year 2006 performance threshold were released to the relevant investors. As Mr. Li has not retained any of the shares placed into escrow, and as the investors party to the Escrow Agreement are only shareholders of the Company and do not have and are not expected to have any other relationship to the Company, the Company has not recorded a compensation charge for the years ended September 30, 2005 and 2006. At the time the escrow shares relating to the 2006 performance threshold were transferred to the investors in fiscal year 2007, the Company should have recognized a credit to donated shares and a debit to additional paid-in capital, both of which are elements of shareholders’ equity. This entry is not material because total ordinary shares issued and outstanding, total shareholders’ equity and total assets do not change; nor is there any impact on income or earnings per share. Therefore, previously filed consolidated financial statements for the fiscal year ended September 30, 2007 will not be restated. This share transfer has been reflected in these financial statements by reclassifying the balances of certain items as of October 1, 2007. The balances of donated shares and additional paid-in capital as of October 1, 2007 were credited and debited by $7,955,358 respectively, as set out in the consolidated statements of changes in shareholders’ equity. In November 2007, Mr. Li delivered the 217,955 shares related to the 2005 performance threshold to BAK International pursuant to the Li Settlement Agreement; BAK International in turn delivered the shares to the Company. Such shares (other than those issued to investors pursuant to the 2008 Settlement Agreements, as described below) are now held by the Company. Upon receipt of these shares, the Company and BAK International released all claims and causes of action against Mr. Li regarding the shares, and Mr. Li released all claims and causes of action against the Company and BAK International regarding the shares. Under the terms of the Li Settlement Agreement, the Company commenced negotiations with the investors who participated in the Company’s January 2005 private placement in order to achieve a complete settlement of BAK International’s obligations (and the Company’s obligations to the extent it has any) under the applicable agreements with such investors. Beginning on March 13, 2008, the Company entered into settlement agreements (the “2008 Settlement Agreements”) with certain investors in the January 2005 private placement. Since the other investors have never submitted any claims regarding this matter, the Company did not reach any settlement with them. Pursuant to the 2008 Settlement Agreements, the Company and the settling investors have agreed, without any admission of liability, to a settlement and mutual release from all claims relating to the January 2005 private placement, including all claims relating to the escrow shares related to the 2005 performance threshold that had been placed into escrow by Mr. Li, as well as all claims, including claims for liquidated damages relating to registration rights granted in connection with the January 2005 private placement. Under the 2008 Settlement Agreement, the Company has made settlement payments to each of the settling investors of the number of shares of the Company’s common stock equivalent to 50% of the number of the escrow shares related to the 2005 performance threshold these investors had claimed; aggregate settlement payments as of June 30, 2015amounted to 73,749 shares. Share payments to date have been made in reliance upon the exemptions from registration provided by Section 4(2) and/or other applicable provisions of the Securities Act of 1933, as amended. In accordance with the 2008 Settlement Agreements, the Company filed a registration statement covering the resale of such shares which was declared effective by the SEC on June 26, 2008. Pursuant to the Li Settlement Agreement, the 2008 Settlement Agreements and upon the release of the 217,955 escrow shares relating to the fiscal year 2006 performance threshold to the relevant investors, neither Mr. Li or the Company have any obligations to the investors who participated in the Company’s January 2005 private placement relating to the escrow shares. As of March 31, 2022, the Company had not received any claim from the other investors who have not been covered by the “2008 Settlement Agreements” in the January 2005 private placement. As the Company has transferred the 217,955 shares related to the 2006 performance threshold to the relevant investors in fiscal year 2007 and the Company also have transferred 73,749 shares relating to the 2005 performance threshold to the investors who had entered the “2008 Settlement Agreements” with us in fiscal year 2008, pursuant to “Li Settlement Agreement” and “2008 Settlement Agreements”, neither Mr. Li nor the Company had any remaining obligations to those related investors who participated in the Company’s January 2005 private placement relating to the escrow shares. On August 14, 2013, Dalian BAK Trading Co., Ltd was established as a wholly owned subsidiary of China BAK Asia Holding Limited (“BAK Asia”) with a registered capital of $500,000. Pursuant to CBAK Trading’s articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Trading on or before August 14, 2015. On March 7, 2017, the name of Dalian BAK Trading Co., Ltd was changed to Dalian CBAK Trading Co., Ltd (“CBAK Trading”). On August 5, 2019, CBAK Trading’s registered capital was increased to $5,000,000. Pursuant to CBAK Trading’s amendment articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Trading on or before August 1, 2033. Up to the date of this report, the Company has contributed $2,435,000 to CBAK Trading in cash. On December 27, 2013, Dalian BAK Power Battery Co., Ltd was established as a wholly owned subsidiary of BAK Asia with a registered capital of $30,000,000. Pursuant to CBAK Power’s articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Power on or before December 27, 2015. On March 7, 2017, the name of Dalian BAK Power Battery Co., Ltd was changed to Dalian CBAK Power Battery Co., Ltd (“CBAK Power”). On July 10, 2018, CBAK Power’s registered capital was increased to $50,000,000. On October 29, 2019, CBAK Power’s registered capital was further increased to $60,000,000. Pursuant to CBAK Power’s amendment articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Power on or before December 31, 2021. The Company has paid in full to CBAK Power through injection of a series of patents and cash. On May 4, 2018, CBAK New Energy (Suzhou) Co., Ltd (“CBAK Suzhou”) was established as a 90% owned subsidiary of CBAK Power with a registered capital of RMB10,000,000 (approximately $1.5 million). The remaining 10% equity interest was held by certain employees of CBAK Suzhou. Pursuant to CBAK Suzhou’s articles of association, each shareholder is entitled to the right of the profit distribution or responsible for the loss according to its proportion to the capital contribution. Pursuant to CBAK Suzhou’s articles of association and relevant PRC regulations, CBAK Power was required to contribute the capital to CBAK Suzhou on or before December 31, 2019. Up to the date of this report, the Company has contributed RMB9.0 million (approximately $1.3 million), and the other shareholders have contributed RMB1.0 million (approximately $0.1 million) to CBAK Suzhou through injection of a series of cash. The Company plan to dissolve CBAK Suzhou in 2022. On November 21, 2019, Dalian CBAK Energy Technology Co., Ltd (“CBAK Energy”) was established as a wholly owned subsidiary of BAK Asia with a registered capital of $50,000,000. Pursuant to CBAK Energy’s articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Energy on or before November 20, 2022. Up to the date of this report, the Company has contributed $23,519,880 to CBAK Energy. On July 14, 2020, the Company acquired BAK Asia Investments Limited (“BAK Investments”), a company incorporated under Hong Kong laws, from Mr. Xiangqian Li, the Company’s former CEO, for a cash consideration of HK$1.00. BAK Asia Investments Limited is a holding company without any other business operations. On July 31, 2020, BAK Investments formed a wholly owned subsidiary CBAK New Energy (Nanjing) Co., Ltd. (“CBAK Nanjing”) in China with a registered capital of $100,000,000. Pursuant to CBAK Nanjing’s articles of association and relevant PRC regulations, BAK Investments was required to contribute the capital to CBAK Nanjing on or before July 29, 2040. Up to the date of this report, the Company has contributed $55,289,915 to CBAK Nanjing. On August 6, 2020, Nanjing CBAK New Energy Technology Co., Ltd. (“Nanjing CBAK”) was established as a wholly owned subsidiary of CBAK Nanjing with a registered capital of RMB700,000,000 (approximately $110 million). Pursuant to Nanjing CBAK’s articles of association and relevant PRC regulations, CBAK Nanjing was required to contribute the capital to Nanjing CBAK on or before August 5, 2040. Up to the date of this report, the Company has contributed RMB352,538,138 (approximately $55.6 million) to Nanjing CBAK. On November 9, 2020, Nanjing Daxin New Energy Automobile Industry Co., Ltd (“Nanjing Daxin”) was established as a wholly owned subsidiary of CBAK Nanjing with a register capital of RMB50,000,000 (approximately $7.9 million). Up to the date of this report, the Company has contributed RMB33,416,000 (approximately $5.2 million) to Nanjing Daxin. On April 21, 2021, CBAK Power, along with Shenzhen BAK Power Battery Co., Ltd (BAK SZ), Shenzhen Asian Plastics Technology Co., Ltd (SZ Asian Plastics) and Xiaoxia Liu, entered into an investment agreement with Junxiu Li, Hunan Xintao New Energy Technology Partnership, Xingyu Zhu, and Jiangsu Saideli Pharmaceutical Machinery Manufacturing Co., Ltd for an investment in Hunan DJY Technology Co., Ltd (“DJY”). CBAK Power has paid $1.4 million (RMB9,000,000) to acquire 9.74% of the equity interests of DJY. CBAK Power has appointed one director to the Board of Directors of DJY. DJY is an unrelated third party of the Company engaging in researching and manufacturing of raw materials and equipment. On August 4, 2021, Daxin New Energy Automobile Technology ( Jiangsu) Co., Ltd (“Jiangsu Daxin”) was established as a wholly owned subsidiary of Nanjing CBAK with a register capital of RMB 30,000,000 (approximately $4.7 million). Pursuant to Jiangsu Daxin’s articles of association and relevant PRC regulations, Nanjing Daxin was required to contribute the capital to Jiangsu Daxin on or before July 30, 2061. Up to the date of this report the Company has contributed nil to Jiangsu Daxin. On July 20, 2021, CBAK Power entered into a framework agreement relating to CBAK Power’s investment in Zhejiang Hitrans Lithium Battery Technology Co., Ltd (“Hitrans”, formerly known as Zhejinag Meidu Hitrans Lithium Battery Technology Co., Ltd), pursuant to which CBAK Power agreed to acquire 81.56% of registered equity interests (representing 75.57% of paid-up capital)of Hitrans (the “Acquisition”). The Acquisition was completed on November 26, 2021 (Note 11). After the completion of the Acquisition, Hitrans became a wholly owned subsidiary of the Company. On July 6, 2018, Guangdong Meidu Hitrans Resources Recycling Technology Co., Ltd. (“Guangdong Hitrans”) was established as a 80% owned subsidiary of Hitrans with a registered capital of RMB10 million (approximately $1.6million). The remaining 20% registered equity interest was held by Shenzhen Baijun Technology Co., Ltd. Pursuant to Guangdong Hitrans’s articles of association, each shareholder is entitled to the right of the profit distribution or responsible for the loss according to its proportion to the capital contribution. Pursuant to Guangdong Hitrans’s articles of association and relevant PRC regulations, Hitrans was required to contribute the capital to Guangdong Hitrans on or before December 30, 2038. Up to the date of this report, Hitrans has contributed RMB1.72 million (approximately $0.3 million), and the other shareholder has contributed RMB0.25 million (approximately $0.04 million) to Guangdong Hitrans through injection of a series of cash. Guangdong Hitrans was established under the laws of the People’s Republic of China as a limited liability company on July 6, 2018 with a registered capital RMB10 million (approximately $1.5 million). Guangdong Hitrans is based in Dongguan, Guangdong Province, and is principally engaged in the business of resource recycling, waste processing, and R&D, manufacturing and sales of battery materials. The Company plan to dissolve Guangdong Hitrans in 2022. On October 9, 2021, Shaoxing Haisheng International Trading Co., Ltd. (“Haisheng”) was established as a wholly owned subsidiary of Hitrans with a register capital of RMB5 million (approximately $0.8 million). Pursuant to Haisheng’s articles of association and relevant PRC regulations, Hitrans was required to contribute the capital to Haisheng on or before May 31, 2025. Up to the date of this report, Hitrans has contributed RMB3.5 million (approximately $0.5 million) to Haisheng. The Company’s condensed consolidated financial statements have been prepared under US GAAP. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company and its subsidiaries, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liability established in the PRC or Hong Kong. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company’s subsidiaries to present them in conformity with US GAAP. After the disposal of BAK International Limited and its subsidiaries, namely Shenzhen BAK, Shenzhen BAK Power Battery Co., Ltd (formerly BAK Battery (Shenzhen) Co., Ltd.) (“BAK Shenzhen”), BAK International (Tianjin) Ltd. (“BAK Tianjin”), Tianjin Chenhao Technological Development Limited (a subsidiary of BAK Tianjin established on May 8, 2014, “Tianjin Chenhao”), BAK Battery Canada Ltd. (“BAK Canada”), BAK Europe GmbH (“BAK Europe”) and BAK Telecom India Private Limited (“BAK India”), effective on June 30, 2014, and as of December 31, 2021, the Company’s subsidiaries consisted of: i) China BAK Asia Holdings Limited (“BAK Asia”), a wholly owned limited liability company incorporated in Hong Kong on July 9, 2013; ii) Dalian CBAK Trading Co., Ltd. (“CBAK Trading”), a wholly owned limited company established on August 14, 2013 in the PRC; iii) Dalian CBAK Power Battery Co., Ltd. (“CBAK Power”), a wholly owned limited liability company established on December 27, 2013 in the PRC; iv) CBAK New Energy (Suzhou) Co., Ltd. (“CBAK Suzhou”), a 90% owned limited liability company established on May 4, 2018 in the PRC; v) Dalian CBAK Energy Technology Co., Ltd (“CBAK Energy”), a wholly owned limited liability company established on November 21, 2019 in the PRC; (vi) BAK Asia Investments Limited (“BAK Investments”), a wholly owned limited liability company incorporated in Hong Kong acquired on July 14, 2020; (vii) CBAK New Energy (Nanjing) Co., Ltd. (“CBAK Nanjing”), a wholly owned limited liability company established on July 31, 2020 in the PRC; (viii) Nanjing CBAK New Energy Technology Co., Ltd, (“Nanjing CBAK”), a wholly owned limited liability company established on August 6, 2020 in the PRC; (ix) Nanjing Daxin New Energy Automobile Industry Co., Ltd (“Nanjing Daxin”), a wholly owned limited liability company established on November 9, 2020; (x) Daxin New Energy Automobile Technology ( Jiangsu) Co., Ltd (“Jiangsu Daxin”), a wholly owned limited liability company established on August 4, 2021 in the PRC; (xi) Zhejiang Hitrans Lithium Battery Technology Co., Ltd (“Hitrans”), a 81.56% registered equity interests (representing 75.57% of paid-up capital) owned limited liability company established on December 16, 2015 in the PRC; (xii) Guangdong Meidu Hitrans Resources Recycling Technology Co., Ltd., a 65.25% owned limited liability company established on July 6, 2018 in the PRC and (xiii) Shaoxing Haisheng International Trading Co., Ltd. (“Haisheng”), a 81.56% registered equity interests (representing 75.57% of paid-up capital) owned limited liability company established on October 9, 2021 in the PRC. The Company continued its business and continued to generate revenues from sale of batteries via subcontracting the production to BAK Tianjin and BAK Shenzhen, former subsidiaries before the completion of construction and operation of its facility in Dalian. BAK Tianjin and BAK Shenzhen are now suppliers of the Company and the Company does not have any significant benefits or liability from the operating results of BAK Tianjin and BAK Shenzhen except the normal risk with any major supplier. As of the date of this report, Mr. Xiangqian Li is no longer a director of BAK International and BAK Tianjin. He remained as a director of Shenzhen BAK and BAK Shenzhen. On December 8, 2020, the Company entered into a securities purchase agreement with certain institutional investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 9,489,800 shares of common stock of the Company at a per share purchase price of $5.18, and warrants to purchase an aggregate of 3,795,920 shares of common stock of the Company at an exercise price of $6.46 per share exercisable for 36 months from the date of issuance, for gross proceeds of approximately $49.16 million, before deducting fees to the placement agent and other estimated offering expenses of $3.81 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 379,592 shares of the Company’s common stock at an exercise price of $6.475 per share exercisable for 36 months after 6 months from the issuance. On February 8, 2021, the Company entered into another securities purchase agreement with the same investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 8,939,976 shares of common stock of the Company at a per share purchase price of $7.83. In addition, the Company issued to the investors (i) in a concurrent private placement, the Series A-1 warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.67 and exercisable for 42 months from the date of issuance; (ii) in the registered direct offering, the Series B warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.83 and exercisable for 90 days from the date of issuance; and (iii) in the registered direct offering, the Series A-2 warrants to purchase up to 2,234,992 shares of common stock, at a per share exercise price of $7.67 and exercisable for 45 months from the date of issuance. The Company received gross proceeds of approximately $70 million from the registered direct offering and the concurrent private placement, before deducting fees to the placement agent and other estimated offering expenses of $5.0 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 446,999 shares of the Company’s common stock at an exercise price of $9.204 per share exercisable for 36 months after 6 months from the issuance. On May 10, 2021, the Company entered into that Amendment No. 1 to the Series B Warrant (the “Series B Warrant Amendment”) with each of the holders of the Company’s outstanding Series B warrants. Pursuant to the Series B Warrant Amendment, the term of the Series B warrants was extended from May 11, 2021 to August 31, 2021. As of August 31, 2021, the Company had not received any notices from the investors to exercise Series B warrants. As of the date of this report, Series B warrants, along with Series A-2 warrants, had both expired. As of March 31, 2022, the Company had $14.6 million bank loans and approximately $107.9 million of other current liabilities (excluding warrants derivative liability). The Company is currently expanding its product lines and manufacturing capacity in its Dalian plant and Nanjing plant which requires more funding to finance the expansion. The Company plans to raise additional funds through banks borrowings and equity financing in the future to meet its daily cash demands, if required. COVID-19 The World Health Organization declared the novel coronavirus (“COVID-19”) outbreak as a pandemic in March 2020. The COVID-19 pandemic has caused disruptions to our operations in 2021. Our Dalian facility’s operations were suspended in November 2021 due to the COVID-19 containment measures adopted by the local government. Hitrans’s production facility in Shangyu, Zhejiang was also temporarily closed from December 9 to 24, 2021 to comply with the local lockdown policy in response to a surge of COVID-19 cases. Finally, the Company expects that the impact of the COVID-19 outbreak on the United States and world economies will continue to have a material adverse impact on the demand for its products. Because of the significant uncertainties surrounding the COVID-19 pandemic, the extent of the business interruption and the related financial impact cannot be reasonably estimated at this time. Going Concern The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has accumulated deficit from recurring net losses incurred for the prior years and significant short-term debt obligations maturing in less than one year as of March 31, 2022. These conditions raise substantial doubt about the Company ability to continue as a going concern. The Company’s plan for continuing as a going concern included improving its profitability, and obtaining additional debt financing, loans from existing directors and shareholders for additional funding to meet its operating needs. There can be no assurance that the Company will be successful in the plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify 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 revenues when (or as) we satisfy the performance obligation. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the categories: discounts and returns. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer. Recently Adopted Accounting Standards In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). The Company applied the new standard |
Pledged Deposits
Pledged Deposits | 3 Months Ended |
Mar. 31, 2022 | |
Pledged Deposits [Abstract] | |
Pledged deposits | 2. Pledged deposits Pledged deposits as of December 31, 2021 and March 31, 2022 consisted of the following: December 31, March 31, Pledged deposits with banks for: Bills payable (Note 13) $ 18,996,749 $ 25,141,517 Others - 580 $ 18,996,749 $ 25,142,097 |
Trade and Bills Receivable, net
Trade and Bills Receivable, net | 3 Months Ended |
Mar. 31, 2022 | |
Trade And Bills Receivable Net [Abstract] | |
Trade and Bills Receivable, net | 3. Trade and Bills Receivable, net Trade and bills receivable as of December 31, 2021 and March 31, 2022: December 31, March 31, 2021 2022 Trade accounts receivable $ 48,707,457 $ 46,364,398 Less: Allowance for doubtful accounts (4,618,269 ) (4,904,450 ) 44,089,188 41,459,948 Bills receivable 5,817,941 8,805,836 $ 49,907,129 $ 50,265,784 Included in trade accounts and bills receivables are retention receivables of $1,944,034 and $1,947,547 as of December 31, 2021 and March 31, 2022. Retention receivables are interest-free and recoverable either at the end of the retention period of three to five years since the sales of the EV batteries or 200,000 km since the sales of the motor vehicles (whichever comes first). An analysis of the allowance for doubtful accounts is as follows: March 31, March 31, 2021 2022 Balance at beginning of period $ 5,266,828 $ 4,618,269 Provision for the year - 322,928 Reversal - recoveries by cash (154,061 ) (51,485 ) Charged to consolidated statements of operations and comprehensive (loss) income $ (154,061 ) $ 271,443 Foreign exchange adjustment (17,819 ) 14,738 Balance at end of period $ 5,094,948 $ 4,904,450 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories as of December 31, 2021 and March 31, 2022 consisted of the following: December 31, March 31, 2021 2022 Raw materials $ 11,323,638 $ 15,484,667 Work in progress 8,093,002 9,428,354 Finished goods 10,716,700 16,958,128 $ 30,133,340 $ 41,871,149 During the three months ended March 31, 2021 and 2022, write-downs of obsolete inventories to lower of cost or net realizable value of $233,305 and $406,152, respectively, were charged to cost of revenues. |
Prepayments and Other Receivabl
Prepayments and Other Receivables | 3 Months Ended |
Mar. 31, 2022 | |
Prepayments And Other Receivables And Recoverable From Loan Guarantee [Abstract] | |
Prepayments and Other Receivables | 5. Prepayments and Other Receivables Prepayments and other receivables as of December 31, 2021 and March 31, 2022 consisted of the following: December 31, March 31, 2021 2022 Value added tax recoverable $ 7,144,712 $ 8,332,545 Prepayments to suppliers 4,663,431 5,060,156 Deposits 75,179 76,152 Staff advances 122,531 187,548 Prepaid operating expenses 683,648 758,411 Others 64,489 108,256 12,753,990 14,523,068 Less: Allowance for doubtful accounts (7,000 ) (7,000 ) $ 12,746,990 $ 14,516,068 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 6. Property, Plant and Equipment, net Property, plant and equipment as of December 31, 2021 and March 31, 2022 consisted of the following: December 31, March 31, Buildings $ 48,418,782 $ 48,566,742 Leasehold Improvements 5,543,792 5,593,831 Machinery and equipment 58,899,248 59,488,872 Office equipment 1,200,758 1,229,557 Motor vehicles 486,570 487,644 114,549,150 115,366,646 Impairment (9,194,132 ) (9,213,494 ) Accumulated depreciation (15,312,245 ) (17,620,341 ) Carrying amount $ 90,042,773 $ 88,532,811 During the three months ended March 31, 2021 and 2022, the Company incurred depreciation expense of $698,618 and $2,271,267, respectively. During the course of the Company’s strategic review of its operations, the Company assessed the recoverability of the carrying value of the Company’s property, plant and equipment. The impairment charge, if any, represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated discounted cash flows expected to be generated by the Company’s production facilities. The Company believes that there was no impairment during the three months ended March 31, 2021 and 2022. |
Construction in Progress
Construction in Progress | 3 Months Ended |
Mar. 31, 2022 | |
Construction in Progress [Abstract] | |
Construction in Progress | 7. Construction in Progress Construction in progress as of December 31, 2021 and March 31, 2022 consisted of the following: December 31, March 31, 2021 2022 Construction in progress $ 21,619,522 $ 22,277,466 Prepayment for acquisition of property, plant and equipment 5,723,570 6,132,827 Carrying amount $ 27,343,092 $ 28,410,293 Construction in progress as of December 31, 2021 and March 31, 2022 mainly comprised capital expenditures for the construction of the facilities and production lines of CBAK Power and Nanjing CBAK. For the three months ended March 31, 2021 and 2022, the Company capitalized interest of $213,583 and nil |
Non-Marketable Equity Securitie
Non-Marketable Equity Securities | 3 Months Ended |
Mar. 31, 2022 | |
Non-Marketable Equity Securities [Abstract] | |
Non-marketable equity securities | 8. Non-marketable equity securities December 31, March 31, Cost $ 1,416,185 $ 1,419,312 Impairment (703,255 ) (704,808 ) Carrying amount $ 712,930 $ 714,504 On April 21, 2021, CBAK Power, along with Shenzhen BAK Power Battery Co., Ltd (BAK Shenzhen), Shenzhen Asian Plastics Technology Co., Ltd (SZ Asian Plastics) and Xiaoxia Liu (collectively the “Investors”), entered into an investment agreement with Junxiu Li, Hunan Xintao New Energy Technology Partnership, Xingyu Zhu, and Jiangsu Saideli Pharmaceutical Machinery Manufacturing Co., Ltd for an investment in Hunan DJY Technology Co., Ltd ("DJY"), a privately held company. CBAK Power has paid $1.40 million (RMB9,000,000) to acquire 9.74% of the equity interests of DJY. CBAK Power along with other three new investors have appointed one director on behalf of the Investors to the Board of Directors of DJY. DJY is unrelated third party of the Company engaging in in research and development, production and sales of products and services to lithium battery positive cathode materials producers, including the raw materials, fine ceramics, equipment and industrial engineering. Non-marketable equity securities are investments in privately held companies without readily determinable market value. The Company measures investments in non-marketable equity securities without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3. The Company adjusts the carrying value of non-marketable equity securities which have been remeasured during the period and recognize resulting gains or losses as a component of other operating income (expense), net. The Company recognized nil |
Lease
Lease | 3 Months Ended |
Mar. 31, 2022 | |
Lease Disclosure [Abstract] | |
Lease | 9. Lease (a) Prepaid land use rights Prepaid land lease payments Balance as of January 1, 2021 $ 7,500,780 Addition for the year 6,188,764 Amortization charge for the year (189,044 ) Foreign exchange adjustment 296,730 Balance as of December 31, 2021 13,797,230 Amortization charge for the period (89,718 ) Foreign exchange adjustment 30,359 Balance as of March 31, 2022 $ 13,737,871 In August 2014 and November 2021, the Group acquired land use rights to build a factory of the Company in Dalian, PRC and Zhejiang, PRC. Lump sum payments were made upfront to acquire the leased land from the owners with lease periods of 36 to 50 years, and no ongoing payments will be made under the terms of these land leases. No impairment loss was made to the carrying amounts of the prepaid land use right for the three months ended March 31, 2021 and 2022. (b) Company as Lessor The Company derives a portion of its revenue from leasing arrangements of these vehicles to end users. Such arrangements provide for monthly payments covering the vehicles sales and interest. These arrangements meet the criteria to be accounted for as sales-type leases. Accordingly, vehicle sale net of cost is recorded as other income and recognized upon delivery of the vehicle and its acceptance by the end user. Upon the recognition of such revenue, an asset is established for the investment in sales-type leases. Interests are recognized monthly over the lease term. The components of the net investment in sales-type leases as of December 31, 2021 and March 31, 2022 are as follows: December 31, March 31, 2021 2022 Total future minimum lease payments receivable $ 1,737,817 1,587,106 Less: unearned income, representing interest (108,773 ) (79,911 ) Present value of minimum lease payments receivables 1,629,044 1,507,195 Less: Current portion (790,516 ) (792,262 ) Non-current portion $ 838,528 714,933 Loss on vehicle sale net of cost recognized in other income from vehicle leasing was $91,833 and nil Interest income from vehicle leasing was $26,637 and $29,069 for the three months ended March 31, 2021 and 2022, respectively. The future minimum lease payments receivable for sales type leases are as follows: Fiscal years ending Total Minimum Amortization Income Net Investment in Sales Type Leases Remainder of 2022 $ 710,287 $ 56,764 $ 653,523 2023 685,055 22,568 662,487 2024 191,764 579 191,185 2025 - - - 2026 - - - Thereafter - - - 1,587,106 79,911 1,507,195 (c) Operating lease On April, 2018, Hitrans entered into a lease agreement for staff quarters spaces in Zhejiang with a five year term, commencing on May 1, 2018 and expiring on April 30, 2023 The monthly rental payment is approximately RMB18,000 ($2,839) per month. In 2018, lump sum payments were made to landlord for the rental of staff quarter spaces and no ongoing payments will be made under the terms of these leases. On January 14, 2021, Nanjing Daxin entered into a lease agreement for manufacturing, warehouse and office space in Tianjing with a three year term, commencing on March 1, 2021 and expiring on February 29, 2024. The monthly rental payment is approximately RMB73,143 ($11,535) per month. On February 28, 2022, Nanjing Daxin early terminated the lease after one-year non-cancellable period. On April 6, 2021, Nanjing CBAK entered into a lease agreement for warehouse space in Nanjing with a three year term, commencing on April 15, 2021 and expiring on April 14, 2024. The monthly rental payment is approximately RMB97,743 ($15,414) per month. On June 1, 2021, Nanjing Daxin entered into a lease agreement for manufacturing, warehouse and office space in Wuxi with a three year term, commencing on June 1, 2021 and expiring on May 31, 2024. The monthly rental payment is approximately RMB238,095 ($37,548) per month for the first year and approximately RMB277,778 ($43,806) per month from the second year. On June 1, 2021, Hitrans entered into a lease agreement with liquid gas supplier for a five year term for supplying liquid nitrogen and oxygen, commencing on July 1, 2021. The monthly rental payment is approximately RMB5,310 ($837) per month. On December 9, 2021, Hitrans entered into a lease agreement for extra staff quarters spaces in Zhejiang with a three year term, commencing on December 10, 2021 and expiring on December 9, 2024. The monthly rental payment is approximately RMB9,905 ($1,562) per month for the first year, RMB10,103 ($1,593) and RMB10,305 ($1,625) per month from the second year and third year, respectively. On March 1, 2022, Hitrans entered into a lease agreement for extra staff quarters spaces in Zhejiang with a three year term, commencing on March 1, 2022 and expiring on February 28, 2027. The monthly rental payment is approximately RMB15,840 ($2,497) per month for the first year, with 2% increase per year. Operating lease expenses for the three months ended March 31, 2021 and 2022 for the capitation agreement was as follows: March 31, March 31, Operating lease cost – straight line $ 11,321 $ 212,691 Total lease expense $ 11,321 $ 212,691 The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2022 were as follows:-: Operating leases Remainder of 2022 $ 737,297 2023 770,767 2024 41,235 2025 41,859 2026 37,472 Thereafter - Total undiscounted cash flows 1,628,630 Less: imputed interest (79,666 ) Present value of lease liabilities $ 1,548,964 Lease term and discount rate: December 31, March 31, Weighted-average remaining lease term Land use rights 38.9 38.7 Operating leases 2.32 2.32 Weighted-average discount rate Land use rights Nil Nil Operating leases 5.88 % 5.39 % Supplemental cash flow information related to leases where the Company was the lessee for the three months ended March 31, 2021 and 2022 was as follows: March 31, March 31, Operating cash outflows from operating assets $ 135,379 $ 32,451 |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | 10. Intangible Assets, net Intangible assets as of December 31, 2021 and March 31, 2022 consisted of the followings: December 31, March 31, Computer software at cost $ 108,560 $ 108,801 Sewage discharge permit* 1,915,740 1,919,970 2,024,300 2,028,771 Accumulated amortization (62,561 ) (194,420 ) $ 1,961,739 $ 1,834,351 Amortization expenses were $686 and $131,571 for the three months ended March 31, 2021 and 2022, respectively. * The Company has not yet obtained the ownership of sewage discharge permit in its Zhejiang manufacturing facilities with a carrying amount of $1,898,675 as of December 31, 2021. The sewage discharge permit was registered under the name of New Era (note 11). The Company has obtained a five years sewage discharge permit on January 27, 2022. Total future amortization expenses for finite-lived intangible assets as of March 31, 2022 were estimated as follows: Remainder of 2022 $ 396,837 2023 527,641 2024 526,166 2025 351,785 2026 8,350 Thereafter 23,572 Total $ 1,834,351 |
Acquisition of Subsidiaries
Acquisition of Subsidiaries | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisition of subsidiaries | 11. Acquisition of subsidiaries On April 1, 2021, CBAK Power entered into a framework investment agreement with Hangzhou Juzhong Daxin Asset Management Co., Ltd. (“Juzhong Daxin”) for a potential acquisition of Hitrans. Juzhong Daxin is the trustee of 85% of registered equity interests (representing 78.95% of paid-up capital) of Hitrans and has the voting right over the 85% of registered equity interests. Subject to definitive acquisition agreements to be entered into among the parties, including shareholders owning the 85% of equity interests of Hitrans, CBAK Power intends to acquire 85% of equity interests of Hitrans in cash in 2021. CBAK Power has paid $3.10 million (RMB20,000,000) to Juzhong Daxin as a security deposit in April 2021. Hitrans is an unrelated third party of the Company engaging in researching, manufacturing and trading of raw materials and is one of the major suppliers of the Company in fiscal 2020. On July 20, 2021, CBAK Power entered into a framework agreement relating to CBAK Power’s investment in Hitrans, pursuant to which CBAK Power will acquire 81.56% of registered equity interests (or representing 75.57% of paid-up capital) of Hitrans (the “Acquisition Agreement”). Under the Acquisition Agreement, CBAK Power will acquire 60% of registered equity interests (representing 54.39% of paid-up capital) of Hitrans from Zhejiang Meidu Graphene Technology Co., Ltd. (“Meidu Graphene”) valued at RMB118 million ($18.30 million) and 21.56% of registered equity interests (representing 21.18% of paid-up capital) of Hitrans from Hitrans’s management shareholders valued at approximately RMB40.74 million ($6.32 million). Two individuals among Hitrans management shareholders, including Hitrans’s CEO, Mr. Haijun Wu (“Mr. Wu”), will keep 2.50% registered equity interests (representing 2.46% of paid-up capital) of Hitrans and New Era Group Zhejiang New Energy Materials Co., Ltd. (“New Era”) will continue to hold 15% registered equity interests (representing 21.05% of paid-up capital) of Hitrans after the acquisition. As of the date of the Acquisition Agreement, the 25% registered equity interests (representing 24.56% of paid-up capital) of Hitrans held by Hitrans management shareholders was frozen as a result of a litigation arising from the default by Hitrans management shareholders on debts borrowed from Zhejiang Meidu Pawn Co., Ltd. (“Pawn Co.”) whereby the 25% registered equity interests (representing 24.56% of paid-up capital) of Hitrans was pledged as collateral. Mr. Junnan Ye (“Mr. Ye”), acting as an intermediary, will first acquire 22.5% registered equity interests (representing 22.11% of paid-up capital) of Hitrans, free of any encumbrances, from Hitrans management shareholders. Pursuant to the Acquisition Agreement, within five days of CBAK Power’s obtaining 21.56% registered equity interests (representing 21.18% of paid-up capital) of Hitrans from Mr. Ye, CBAK Power will pay approximately RMB40.74 million ($6.32 million) in cash, which amount shall be used toward the repayment of debts due to Pawn Co. On July 23, 2021, CBAK Power paid RMB40.74 million (approximately $6.32 million) in cash to Mr. Ye. In addition, as of the date of the Acquisition Agreement, Meidu Graphene’s 60% registered equity interests (representing 54.39% of paid-up capital) of Hitrans was frozen as a result of a litigation arising from Hitrans’s failure to make payments to New Era in connection with the purchase of land use rights, plants, equipment, pollution discharge permit and other assets (the “Assets”) under certain asset transfer agreements as well as Meidu Graphene’s guarantee for Hitrans’s payment obligations thereunder. As a part of the transaction, CBAK Power entered into a loan agreement with Hitrans to lend Hitrans approximately RMB131 million ($20.6 million) (the “Hitrans Loan”) by remitting approximately RMB131 million ($20.6 million) into the account of Shaoxing Intermediate People’s Court (the “Court”) to remove the freeze on Meidu Graphene’s 60% registered equity interests (representing 54.39% of paid-up capital) of Hitrans. Moreover, Juzhong Daxin will return RMB10 million ($1.6 million) of the security deposit to CBAK Power before CBAK Power wires approximately RMB131 million ($20.6 million) to the Court. Juzhong Daxin retained RMB5 million ($0.78 million) as commission for facilitating the acquisition and RMB5 million ($0.78 million) recognized as compensation expense to another potential buyer. On July 27, 2021, Juzhong Daxin returned RMB7 million ($1.1 million) of the security deposit to CBAK Power. The remaining RMB3 million ($0.5 million) had not yet been repaid by Juzhong Daxin up to the date of this report (Note 16). The Company is still negotiating with Juzhong Daxin, as Juzhong Daxin believes that according to the Security Acquisition Framework Agreement entered into between CBAK Power and Juzhong Daxin, CBAK Power should pay RMB3 million ($0.5 million) as risk premium for facilitating the acquisition. CBAK Power believes it is not reasonable to pay any of the risk premium in accordance with the terms of the agreement and Juzhong Daxin should return RMB3 million ($0.5 million) to CBAK Power. CBAK Power has taken legal action for the outstanding balance. CBAK Power shall pay all other fees due to Juzhong Daxin in accordance with the Letter of Intent. According to the Acquisition Agreement, Mr. Ye will first acquire 60% registered equity interests (representing 54.39% of paid-up capital) of Hitrans, free of any encumbrances, from Meidu Graphene. Thereafter, CBAK Power will assign RMB118 million ($18.30 million) of the Hitrans Loan to Mr. Junnan Ye as consideration for the acquisition of 60% registered equity interests (representing 54.39% of paid-up capital) of Hitrans from Mr. Ye (the “Assignment”). Hitrans shall repay RMB118 million ($18.27 million) to Mr. Ye in accordance with a separate loan repayment agreement (the “Loan Repayment Agreement”) entered into among Mr. Ye, Hitrans, CBAK Power and Mr. Wu in July 2021. Under the Loan Repayment Agreement, Hitrans shall repay Mr. Ye at least RMB70 million ($10.86 million) within two months of obtaining the title to the Assets from New Era and the remaining RMB 48 million ($7.41 million) by December 31, 2021, with a fixed interest of RMB3.5 million ($0.54 million) which can be reduced by up to RMB1 million ($0.15 million) if the loan is settled before its due date. CBAK Power provides guarantee to Mr. Ye on Hitrans’s repayment obligations under the Loan Repayment Agreement. Hitrans shall repay the remaining approximately RMB13 million ($2.02 million) of the Hitrans Loan to CBAK Power at an interest rate of 6% per annum, maturing in one year from the date of the Assignment. As of December 31, 2021, Hitrans has repaid RMB93 million ($14.6 million) and interest incurred was RMB0.9 million ($0.1 million) recorded as finance cost for the year ended December 31, 2021. As of January 29, 2022, Hitrans has repaid all the loan principals of RMB118 million ($18.3 million) and interests of RMB3.5 million ($0.54 million) to Mr. Ye (Note 14). The transfer of 81.56% registered equity interests (representing 75.57% of paid-up capital) of Zhejiang Hitrans to CBAK Power has been registered with the local government and CBAK Power had paid approximately RMB40.74 million (approximately $6.32 million) in cash to Mr. Ye. In addition, CBAK Power had wired approximately RMB131 million (approximately $20.6 million) to the Court and Juzhong Daxin returned RMB7 million ($1.1 million) of the security deposit to CBAK Power. The Acquisition was completed on November 26, 2021. Upon the closing of the Acquisition, CBAK Power became the largest shareholder of Hitrans holding 81.56% of the Company’s registered equity interests (representing 75.57% of paid-up capital of the Company). As required by applicable Chinese laws, CBAK Power and Management Shareholders are obliged to make capital contributions of RMB11.1 million ($1.7 million) and RMB0.4 million ($0.06 million), respectively, for the unpaid portion of Hitrans’s registered capital in accordance with the articles of association of Hitrans. After the completion of the Acquisition, Hitrans became a wholly owned subsidiary of the Company. The Company completed the valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values of the assets acquired and liabilities assumed as of the closing date, November 26, 2021. Cash and bank $ 7,323,654 Debts product 3,144 Trade and bills receivable, net 37,759,688 Inventories 13,616,922 Prepayments and other receivables 1,384,029 Income tax recoverable 47,138 Amount due from trustee 11,788,931 Property, plant and equipment, net 21,190,890 Construction in progress 2,502,757 Intangible assets, net 1,957,187 Prepaid land use rights, non- current 6,276,898 Leased assets, net 48,394 Deferred tax assets 1,715,998 Short term bank loan (8,802,402 ) Other short term loans – CBAK Power (20,597,522 ) Trade accounts and bills payable (38,044,776 ) Accrued expenses and other payables (7,439,338 ) Deferred government grants (290,794 ) Land appreciation tax (464,162 ) Deferred tax liabilities (333,824 ) NAV 29,642,812 Less: Waiver of dividend payable 1,250,181 Total NAV acquired 30,892,993 Non-controlling interest (24.43%) (7,547,158 ) Goodwill 1,606,518 Total identifiable net assets $ 24,952,353 The components of the consideration transferred to effect the Acquisition are as follows: RMB USD Cash consideration for 60% registered equity interest (representing 54.39% of paid-up capital) of Hitrans from Meidu Graphene 118,000,000 18,547,918 Cash consideration for 21.56% registered equity interest (representing 21.18% of paid-up capital) of Hitrans from Hitrans management 40,744,376 6,404,435 Total Purchase Consideration 158,744,376 24,952,353 The transaction resulted in a purchase price allocation of $1,606,518 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is attributed to the premium that the Company paid to obtain the value of the business of Hitrans and the synergies expected from the combined operations of Hitrans and the Company, the assembled workforce and their knowledge and experience in provision of raw materials used in manufacturing of lithium batteries. The total amount of the goodwill acquired is not deductible for tax purposes. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 12. Goodwill Balance as of January 1, 2021 $ - Acquisition of Hitrans 1,606,518 Foreign exchange adjustment 38,714 Balance as of January 1, 2022 1,645,232 Foreign exchange adjustment 5,397 Balance as of March 31, 2022 $ 1,650,629 The Company performed Goodwill impairment test at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change indicating the asset might be impaired. No impairment loss of Goodwill of the reporting unit of Hitrans was recognized for the three months ended March 31, 2022 and 2021. |
Trade and Bills Payable
Trade and Bills Payable | 3 Months Ended |
Mar. 31, 2022 | |
Trade and Bills Payable [Abstract] | |
Trade and Bills Payable | 13. Trade and Bills Payable Trade and bills payable as of December 31, 2021 and March 31, 2022 consisted of the followings: December 31, March 31, 2021 2022 Trade accounts payable $ 40,352,638 $ 46,550,602 Bills payable – Bank acceptance bills 25,023,574 32,719,399 $ 65,376,212 $ 79,270,001 All the bills payable are of trading nature and will mature within one year from the issue date. The bank acceptance bills were pledged by: (i) the Company’s bank deposits (Note 2); (ii) $4.4 million and $5.0 million of the Company’s bills receivable as of December 31, 2021 and March 31, 2022, respectively (Note 3). (iii) the Company’s prepaid land use rights (note 9) |
Loans
Loans | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Loans | 14. Loans Bank loans Bank borrowings as of December 31, 2021 and March 31, 2022 consisted of the followings: December 31, March 31, 2021 2022 Short-term bank borrowings $ 8,811,820 $ 14,674,721 On June 4, 2018, the Company obtained banking facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB200 million (approximately $30.63 million) with the term from June 12, 2018 to June 10, 2021, bearing interest at 130% of benchmark rate of the People’s Bank of China (“PBOC”) for three-year long-term loans, at current rate 6.175% per annum. The facilities were secured by the Company’s land use rights, buildings, machinery and equipment. According to the original repayment schedule, the loans are repayable in six installments of RMB0.8 million ($0.12 million) on December 10, 2018, RMB24.3 million ($3.72 million) on June 10, 2019, RMB0.8 million ($0.12 million) on December 10, 2019, RMB74.7 million ($11.44 million) on June 10, 2020, RMB0.8 million ($0.12 million) on December 10, 2020 and RMB66.3 million ($10.16 million) on June 10, 2021. The Company repaid the bank loan of RMB0.8 million ($0.12 million), RMB24.3 million ($3.72 million) and RMB0.8 million ($0.12 million) in December 2018, June 2019 and December 2019, respectively. On June 28, 2020, the Company entered into a supplemental agreement with China Everbright Bank Dalian Branch to change the repayment schedule. According to the modification agreement, the remaining RMB141.8 million (approximately $21.72 million) loans are repayable in eight instalments consisting of RMB1.09 million ($0.17 million) on June 10, 2020, RMB1 million ($0.15 million) on December 10, 2020, RMB2 million ($0.31 million) on January 10, 2021, RMB2 million ($0.31 million) on February 10, 2021, RMB2 million ($0.31 million) on March 10, 2021, RMB2 million ($0.31 million) on April 10, 2021, RMB2 million ($0.31 million) on May 10, 2021, and RMB129.7 million ($19.9 million) on June 10, 2021, respectively. As of December 31, 2021, the Company repaid all the bank loan. On November 16, 2021, the Company obtained banking facilities from Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB120.1 million (approximately $19.0 million) with the term from November 18, 2021 to November 18, 2026. The facility was secured by the Company’s land use rights and buildings. Under the facility, the Company has borrowed RMB56.0 million (approximately $8.8 million) and RMB63.1 million (approximately $9.9 million) as of December 31, 2021 and March 31, 2022, respectively, for a term until November 16, 2022 to February 28, 2023, bearing interest at 4.35% per annum. The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaled RMB53.7 million (approximately $8.4 million) for various terms through April to August 2022, which was secured by the Company’s cash totaled RMB22.3 million (approximately $3.5 million) (Note 2) and bills receivables totaled RMB31.3 million (approximately $4.9 million) (Note 3). The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaled RMB32.2 million (approximately $5.1 million) for various terms through May to August 2022, which was secured by the Company’s cash totaled RMB16.1 million (approximately $2.5 million) and the Company’s land use rights and buildings. (Note 9). In October to December 2020, the Company borrowed a series of acceptance bills from China Merchants Bank totaled RMB13.5 million (approximately $2.07 million) for various terms through April to June 2021, which was secured by the Company’s cash totaled RMB13.5 million (approximately $2.07 million). The Company repaid the bills through April to June 2021. On April 19, 2021, the Company obtained five-year acceptance bills facilities from Bank of Ningbo Co., Ltd with a maximum amount of RMB84.4 million (approximately $13.2 million). Any amount drawn under the facilities requires security in the form of cash or bank acceptance bills receivable of at least the same amount. Under the facilities, as of December 31, 2021, the Company borrowed a total of RMB10 million (approximately $1.6 million) from Bank of Ningbo Co., Ltd in the form of bills payable for a various term expiring from January to February 2022, which was secured by the Company’s cash totaled RMB10 million (approximately $1.6 million). The Company repaid the bills in January to February 2022. The Company borrowed a series of acceptance bills from Agricultural Bank of China totaled RMB32.0 million (approximately $5.1 million) for various terms through April to September 2022, which was secured by the Company’s cash totaled RMB32.0 million (approximately $5.1 million) (Note 2). The Company borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shenyang Branch totaled RMB89.6 million (approximately $14.1 million) for various terms through April to September 2022, which was secured by the Company’s cash totaled RMB88.9 million (approximately $14.0 million) (Note 2) and the Company’s bills receivable totaled RMB0.7 million (approximately $0.1 million) (Note 3). On January 17, 2022, the Company obtained a one-year term facility from Agricultural Bank of China with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 105% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 3.85% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. On February 9, 2022, the Company obtained a one-year term facility from Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 124% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 4.94% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. On March 8, 2022, the Company obtained a one-year term facility from China Zheshang Bank Co., Ltd. Shangyu Branch with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 5.5% per annum. The facility was guaranteed by 100% equity in CBAK Power held by BAK Asia and the Company’s CEO, Mr. Yunfei Li. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. On April 29, 2022, the Company obtained a one-year term facility from Industrial and Commercial Bank of China Nanjing Gaochun branch, with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 3.95% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li . The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. The facilities were also secured by the Company’s assets with the following carrying amounts: December 31, March 31, 2021 2022 Pledged deposits (note 2) $ 18,996,749 $ 25,141,517 Bills receivables (note 3) 4,446,553 5,041,978 Right-of-use assets (note 9) 6,268,473 6,236,789 Buildings 8,565,837 8,494,371 $ 38,277,612 $ 44,914,655 As of March 31, 2022, the Company had unutilized committed banking facilities totaled $6.6 million. During the three months ended March 31, 2021 and 2022, interest of $213,583 and $122,973 were incurred on the Company’s bank borrowings, respectively. Other short-term loans Other short-term loans as of December 31, 2021 and March 31, 2022 consisted of the following: December 31, March 31, Note 2021 2022 Advance from related parties – Mr. Xiangqian Li, the Company’s Former CEO (a) $ 100,000 $ 100,000 – Mr. Yunfei Li (b) 153,300 153,639 – Shareholders (c) 94,971 95,180 – Mr. Junnan Ye (Note 11) 3,933,848 - 4,282,119 348,819 Advances from unrelated third party – Mr. Wenwu Yu (d) 17,282 17,320 – Ms. Longqian Peng (d) 301,044 301,709 – Suzhou Zhengyuanwei Needle Ce Co., Ltd (e) 78,677 78,851 397,003 397,880 $ 4,679,122 $ 746,699 (a) Advances from Mr. Xiangqian Li, the Company’s former CEO, was unsecured, non-interest bearing and repayable on demand. (b) Advances from Mr. Yunfei Li, the Company’s CEO, was unsecured, non-interest bearing and repayable on demand. (c) The earnest money paid by certain shareholders in relation to share purchase were unsecured, non-interest bearing and repayable on demand. (d) Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand. (e) In 2019, the Company entered into a short term loan agreement with Suzhou Zhengyuanwei Needle Ce Co., Ltd, an unrelated party to loan RMB0.6 million (approximately $0.1 million), bearing annual interest rate of 12%. As of March 31, 2022, loan amount of RMB0.5 million ($0.1 million) remained outstanding. During the three months ended March 31, 2021 and 2022, interest of $2,314 and $7,167 were incurred on the Company’s borrowings from unrelated parties, respectively. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses and Other Payables [Abstract] | |
Accrued Expenses and Other Payables | 15. Accrued Expenses and Other Payables Accrued expenses and other payables as of December 31, 2021 and March 31, 2022 consisted of the following: December 31, March 31, 2021 2022 Construction costs payable $ 2,036,008 $ 1,529,170 Equipment purchase payable 8,697,637 8,079,179 Liquidated damages* 1,210,119 1,210,119 Accrued staff costs 2,924,105 2,942,699 Customer deposits 1,420,414 4,671,400 Deferred revenue 784,000 784,000 Accrued expenses 4,161,548 3,601,292 Dividend payable to non-controlling interest 1,444,737 1,446,583 Other payables 285,132 212,867 $ 22,963,700 $ 24,477,309 * On August 15, 2006, the SEC declared effective a post-effective amendment that the Company had filed on August 4, 2006, terminating the effectiveness of a resale registration statement on Form SB-2 that had been filed pursuant to a registration rights agreement with certain shareholders to register the resale of shares held by those shareholders. The Company subsequently filed Form S-1 for these shareholders. On December 8, 2006, the Company filed its Annual Report on Form 10-K for the year ended September 30, 2006 (the “2006 Form 10-K”). After the filing of the 2006 Form 10-K, the Company’s previously filed registration statement on Form S-1 was no longer available for resale by the selling shareholders whose shares were included in such Form S-1. Under the registration rights agreement, those selling shareholders became eligible for liquidated damages from the Company relating to the above two events totaling approximately $1,051,000. As of December 31, 2019 and 2020, no liquidated damages relating to both events have been paid. On November 9, 2007, the Company completed a private placement for the gross proceeds to the Company of $13,650,000 by selling 3,500,000 shares of common stock at the price of $3.90 per share. Roth Capital Partners, LLC acted as the Company’s exclusive financial advisor and placement agent in connection with the private placement and received a cash fee of $819,000. The Company may have become liable for liquidated damages to certain shareholders whose shares were included in a resale registration statement on Form S-3 that the Company filed pursuant to a registration rights agreement that the Company entered into with such shareholders in November 2007. Under the registration rights agreement, among other things, if a registration statement filed pursuant thereto was not declared effective by the SEC by the 100th calendar day after the closing of the Company’s private placement on November 9, 2007, or the “Effectiveness Deadline”, then the Company would be liable to pay partial liquidated damages to each such investor of (a) 1.5% of the aggregate purchase price paid by such investor for the shares it purchased on the one month anniversary of the Effectiveness Deadline; (b) an additional 1.5% of the aggregate purchase price paid by such investor every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until the earliest of the effectiveness of the registration statement, the ten-month anniversary of the Effectiveness Deadline and the time that the Company is no longer required to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant to Rule 144 without volume limitations; and (c) 0.5% of the aggregate purchase price paid by such investor for the shares it purchased in the Company’s November 2007 private placement on each of the following dates: the ten-month anniversary of the Effectiveness Deadline and every thirtieth day thereafter (prorated for periods totaling less than thirty days), until the earlier of the effectiveness of the registration statement and the time that the Company no longer is required to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant to Rule 144 without volume limitations. Such liquidated damages would bear interest at the rate of 1% per month (prorated for partial months) until paid in full. On December 21, 2007, pursuant to the registration rights agreement, the Company filed a registration statement on Form S-3, which was declared effective by the SEC on May 7, 2008. As a result, the Company estimated liquidated damages amounting to $561,174 for the November 2007 registration rights agreement. As of December 31, 2021and March 31, 2022, the Company had settled the liquidated damages with all the investors and the remaining provision of approximately $159,000 was included in other payables and accruals. |
Balances and Transactions With
Balances and Transactions With Related Parties | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Balances and Transactions With Related Parties | 16. Balances and Transactions With Related Parties The principal related parties with which the Company had transactions during the years presented are as follows: Name of Entity or Individual Relationship with the Company New Era Group Zhejiang New Energy Materials Co., Ltd. Shareholder of company’s subsidiary Shenzhen Baijun Technology Co., Ltd Shareholder of company’s subsidiary Zhengzhou BAK Battery Co., Ltd Note a Zhengzhou BAK New Energy Technology Co., Ltd Note b Zhengzhou BAK Electronics Co., Ltd Note c Shenzhen BAK Battery Co., Ltd Former subsidiary and refer to Note d Shenzhen BAK Power Battery Co., Ltd Former subsidiary and refer to Note d Hangzhou Juzhong Daxin Asset Management Co., Ltd Note e (a) Mr. Xiangqian Li, the Company’s former CEO, is a director of Zhengzhou BAK Battery Co., Ltd. (b) Mr. Xiangqian Li is a director of Zhengzhou BAK New Energy Vehicle Co., Ltd, which has 29% equity interests in Zhengzhou BAK New Energy Technology Co., Ltd. (c) Shenzhen BAK Power Battery Co., Ltd has 95% equity interests in Zhengzhou BAK Electronics Co., Ltd. (d) Mr. Xiangqian Li is a director of Shenzhen BAK Battery Co., Ltd and Shenzhen BAK Power Battery Co., Ltd (e) Hangzhou Juzhong Daxin Asset Management Co., Ltd. is the trustee of 85% of registered equity interests of Hitrans (note 11) Related party transactions: The Company entered into the following significant related party transactions: For the 2021 2022 Purchase of finished goods from Zhengzhou BAK Battery Co., Ltd $ 1,259,309 $ 5,164,433 Sales of finished goods and raw materials to Zhengzhou BAK Battery Co., Ltd 108,290 25,823,532 Sales of finished goods and raw materials to Zhengzhou BAK Electronics Co., Ltd 412,353 - Sales of finished goods and raw materials to Shenzhen BAK Power Battery Co., Ltd - 112,468 Related party balances: Apart from the above, the Company recorded the following significant related party balances as of December 31, 2021 and March 31, 2022: Receivables from former subsidiary December 31, March 31, Receivables from Shenzhen BAK Power Battery Co., Ltd $ 2,263,955 $ 1,134,585 Balance as of December 31, 2021 and March 31, 2022 consisted of receivable for sales of cathode and precursor to Shenzhen BAK Power Battery Co., Ltd. Up to the date of this report, Shenzhen BAK Power Battery Co., Ltd repaid $0.5 million to the Company. Amount due from non-controlling interest December 31, March 31, Shenzhen Baijun Technology Co., Ltd Current $ 125,883 $ 126,161 Non-current 62,941 63,081 $ 188,824 $ 189,242 In August 2018, Guangdong Hitrans and Shenzhen Baijun entered into a services contract for the provision of consultancy service to assist Guangdong Hitrans to obtain the license for recycling solid wastes with a contract sum of RMB3,000,000 ($465,362). During August and September 2018, RMB1,500,000 ($232,681) was paid to Shenzhen Baijun as deposit. In 2020, Guangdong Hitrans and Shenzhen Baijun entered into supplemental agreement to cancel the services contract and Shenzhen Baijun agreed to refund the deposit paid by four installments from 2021 throughout 2023. The amount due from Shenzhen Baijun is interest fee and RMB300,000 ($45,952) repayable by December 2020, RMB400,000 ($62,048) repayable by December 30, 2021, RMB400,000 ($62,048) repayable by December 30, 2022 and RMB400,000 ($62,049) repayable by December 30, 2023. Amount due from related parties December 31, March 31, Hangzhou Juzhong Daxin Asset Management Co., Ltd (Note 11) $ 472,061 $ 473,104 The above balances are due on demand, interest-free and unsecured. Other balances due from/ (to) related parties December 31, March 31, Trade receivable, net – Zhengzhou BAK Battery Co., Ltd. (i) $ 14,583,061 $ 12,963,529 Trade receivable, net – Zhengzhou BAK New Energy Technology Co., Ltd. (ii) $ 459,714 $ 173,471 Trade payable, net – Zhengzhou BAK Battery Co., Ltd $ (572,768 ) $ (3,057,449 ) Dividend payable to non-controlling interest of Hitrans $ (1,444,737 ) $ (1,446,583 ) (i) Up to the date of this report, Zhengzhou BAK Battery Co., Ltd. repaid $12.5 million to the Company. (ii) Up to the date of this report, Zhengzhou BAK New Energy Technology Co., Ltd repaid $173,471 to the Company. Payables to former subsidiaries Payables to former subsidiaries as of December 31, 2021 and March 31, 2022 consisted of the following: December 31, March 31, Payables to Shenzhen BAK Power Battery Co., Ltd (326,507 ) (325,624 ) $ (326,507 ) (325,624 ) Balance as of December 31, 2021 and March 31, 2022 consisted of payables for purchase of inventories from BAK International (Tianjin) Limited and Shenzhen BAK Power Battery Co., Ltd. From time to time, to meet the needs of its customers, the Company purchased products from these former subsidiaries that it did not produce to meet the needs of its customers. |
Deferred Government Grants
Deferred Government Grants | 3 Months Ended |
Mar. 31, 2022 | |
Other Long Term Payables [Abstract] | |
Deferred Government Grants | 17. Deferred Government Grants Deferred government grants as of December 31, 2021 and March 31, 2022 consist of the following: December 31, March 31, 2021 2022 Total government grants $ 10,023,677 $ 9,473,191 Less: Current portion (3,834,481 ) (2,270,463 ) Non-current portion $ 6,189,196 $ 7,202,728 On October 17, 2014, the Company received a subsidy of RMB46,150,000 pursuant to an agreement with the Management Committee dated July 2, 2013 for costs of land use rights and to be used to construct the new manufacturing site in Dalian. Part of the facilities had been completed and was operated in July 2015 and the Company has initiated amortization on a straight-line basis over the estimated useful lives of the depreciable facilities constructed thereon. On June 23, 2020, BAK Asia, the Company wholly-owned Hong Kong subsidiary, entered into a framework investment agreement with Jiangsu Gaochun Economic Development Zone Development Group Company (“Gaochun EDZ”), pursuant to which the Company intended to develop certain lithium battery projects that aim to have a production capacity of 8Gwh. Gaochun EDZ agreed to provide various support to facilitate the development and operation of the projects. From 2020 to the report date, the Company received RMB10 million (approximately $1.6 million) to finance the costs incurred for moving; RMB20 million (approximately $3.2 million) to finance the costs incurred in construction works; and RMB17.1 million (approximately $2.7 million) to finance equipment purchases from Gaochun EDZ in Nanjing. The Company will recognize the government subsidies as income or offsets them against the related expenditures when there are no present or future obligations for the subsidized projects. For the year ended December 31, 2021, the Company recognized RMB10 million ($1.6 million) as other income after moving of the Company facilities to Nanjing. Remaining subsidy of RMB37.1 million (approximately $5.9 million) was granted to facilities the construction works and equipment in Nanjing. The construction works have been completed in November 2021 and the production line was fully operated in January 2022, the Company has initiated amortization on a straight-line basis over the estimated useful lives of the depreciable facilities constructed thereon. The Company offset government grants of $38,133 and $566,972 for the three months ended March 31, 2021 and 2022, respectively, against depreciation expenses of the Dalian and Nanjing facilities. |
Product Warranty Provisions
Product Warranty Provisions | 3 Months Ended |
Mar. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Provisions | 18. Product Warranty Provisions The Company maintains a policy of providing after sales support for certain of its new EV and LEV battery products introduced since October 1, 2015 by way of a warranty program. The limited cover covers a period of six to twenty four months for battery cells, a period of twelve to twenty seven months for battery modules for light electric vehicles (LEV) such as electric bicycles, and a period of three years to eight years (or 120,000 or 200,000 km if reached sooner) for battery modules for electric vehicles (EV). The Company accrues an estimate of its exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The Company assesses the adequacy of its recorded warranty liability at least annually and adjusts the amounts as necessary. Warranty expense is recorded as a component of sales and marketing expenses. Accrued warranty activity consisted of the following: December 31, March 31, Balance at beginning of year $ 1,991,605 $ 2,028,266 Warranty costs incurred (34,439 ) (9,419 ) Provision for the year 16,995 4,344 Foreign exchange adjustment 54,105 4,473 Balance at end of year 2,028,266 2,027,664 Less: Current portion (127,837 ) (104,122 ) Non-current portion $ 1,900,429 $ 1,923,542 |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities | 19. Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (a) Income taxes in the consolidated statements of comprehensive loss(income) The Company’s provision for income taxes credit consisted of: Three months ended 2021 2022 PRC income tax Current income tax $ - $ - Deferred income tax credit - 93,546 $ - $ 93,546 United States Tax CBAK is a Nevada corporation that is subject to U.S. corporate income tax on its taxable income at a rate of up to 21% for taxable years beginning after December 31, 2017 and U.S. corporate income tax on its taxable income of up to 35% for prior tax years. The U.S. Tax Reform signed into law on December 22, 2017 significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. Taxpayers may elect to pay the one-time transition tax over eight years, or in a single lump sum. The U.S. Tax Reform also includes provisions for a new tax on GILTI effective for tax years of foreign corporations beginning after December 31, 2017. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of controlled foreign corporations (“CFCs”), subject to the possible use of foreign tax credits and a deduction equal to 50 percent to offset the income tax liability, subject to some limitations. To the extent that portions of CBAK’s U.S. taxable income, such as Subpart F income or GILTI, are determined to be from sources outside of the U.S., subject to certain limitations, the Company may be able to claim foreign tax credits to offset its U.S. income tax liabilities. If dividends that CBAK receives from its subsidiaries are determined to be from sources outside of the U.S., subject to certain limitations, CBAK will generally not be required to pay U.S. corporate income tax on those dividends. Any liabilities for U.S. corporate income tax will be accrued in the Company’s consolidated statements of comprehensive loss and estimated tax payments will be made when required by U.S. law. No provision for income taxes in the United States has been made as CBAK had no taxable income for the three months ended March 31, 2021 and 2022. Hong Kong Tax BAK Asia and BAK Investment are subject to Hong Kong profits tax rate of 16.5% and did not have any assessable profits arising in or derived from Hong Kong For the three months ended March 31, 2021 and 2022 and accordingly no provision for Hong Kong profits tax was made in these periods. PRC Tax The CIT Law in China applies an income tax rate of 25% to all enterprises but grants preferential tax treatment to High-New Technology Enterprises. CBAK Power was regarded as a “High-new technology enterprise” pursuant to a certificate jointly issued by the relevant Dalian Government authorities. The certificate was valid for three years commencing from year 2021. Under the preferential tax treatment, CBAK Power was entitled to enjoy a tax rate of 15% for the years from 2021 to 2024 provided that the qualifying conditions as a High-new technology enterprise were met. Hitrans was regarded as a “High-new technology enterprise” pursuant to a certificate jointly issued by the relevant Zhejiang Government authorities. The certificate was valid for three years commencing from year 2021. Under the preferential tax treatment, Hitrans was entitled to enjoy a tax rate of 15% for the years from 2021 to 2024 provided that the qualifying conditions as a High-new technology enterprise were met. A reconciliation of the provision for income taxes determined at the statutory income tax rate to the Company’s income taxes is as follows: Three months ended 2021 2022 Income before income taxes $ 29,608,168 $ 586,957 United States federal corporate income tax rate 21 % 21 % Income tax expenses (credit) computed at United States statutory corporate income tax rate 6,217,715 123,261 Reconciling items: Rate differential for PRC earnings 69,004 (25,584 ) Tax effect of entity at preferential tax rate - (9,972 ) Non-taxable (income) expenses (5,886,790 ) (264,922 ) Share based payments 31,252 7,304 Valuation allowance on deferred tax assets (431,181 ) 76,367 Income tax credit $ - $ (93,546 ) (b) Deferred tax assets and deferred tax liabilities The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2021 and March 31, 2022 are presented below: December 31, March 31, Deferred tax assets Trade receivable $ 2,044,877 $ 2,116,363 Inventories 624,372 662,511 Property, plant and equipment 1,671,628 1,543,877 Non-marketable equity securities 175,813 176,202 Intangible assets 82,174 99,819 Accrued expenses, payroll and others 286,258 154,923 Provision for product warranty 507,067 506,916 Net operating loss carried forward 32,624,714 33,312,212 Valuation allowance (36,278,909 ) (36,751,234 ) Deferred tax assets, non-current $ 1,737,994 $ 1,821,589 Deferred tax liabilities, non-current Long-lived assets arising from acquisitions $ 334,181 $ 321,025 As of December 31, 2021 and March 31, 2022, the Company’s U.S. entity had net operating loss carry forwards of $103,580,741 and $103,580,741, of which $102,293 available to reduce future taxable income which will expire in various years through 2035 and $103,478,448 available to offset capital gains recognized in the succeeding 5 tax years. As of December 31, 2021 and March 31, 2022, the Company’s PRC subsidiaries had net operating loss carry forwards of $43,929,161 and $47,668,784, respectively, which will expire in various years through 2022 to 2030. Management believes it is more likely than not that the Company will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As a result, a valuation allowance of $36,278,909 and $36,751,234 as of December 31, 2021 and March 31, 2022, respectively, were provided against subsidiaries which were not estimated to generate operating profits to utilize the potential tax benefits. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The impact of an uncertain income tax positions on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. |
Statutory Reserves
Statutory Reserves | 3 Months Ended |
Mar. 31, 2022 | |
Statutory Reserves [Abstract] | |
Statutory reserves | 20. Statutory reserves As stipulated by the relevant laws and regulations in the PRC, company established in the PRC (the “PRC subsidiary”) is required to maintain a statutory reserve made out of profit for the year based on the PRC subsidiary’ statutory financial statements which are prepared in accordance with the accounting principles generally accepted in the PRC. The amount and allocation basis are decided by the director of the PRC subsidiary annually and is not to be less than 10% of the profit for the year of the PRC subsidiary. The aggregate amount allocated to the reserves will be limited to 50% of registered capital for certain subsidiaries. Statutory reserve can be used for expanding the capital base of the PRC subsidiary by means of capitalization issue. In addition, as a result of the relevant PRC laws and regulations which impose restriction on distribution or transfer of assets out of the PRC statutory reserve, $1,230,511 representing the PRC statutory reserve of the subsidiary as of December 31, 2021 and March 31, 2022, are also considered under restriction for distribution. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 21. Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable inputs when measuring fair value. Certain current assets and current liabilities are financial instruments. Management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and, if applicable, their current interest rates are equivalent to interest rates currently available. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Valuation of debt products depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, and other relevant terms of the debt. Other factors that may be considered include the borrower’s ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The fair value of these debt products classified as Level 2 is established by reference to the prices quoted by respective fund administrators. The fair value of warrants was determined using the Binomial Model, with level 3 inputs (Note 25). The fair value of share options was determined using the Binomial Model, with level 3 inputs (Note 23). The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, pledged deposits, trade accounts and bills receivable, other receivables, balances with former subsidiaries, notes payable, other short-term loans, short-term and long-term bank loans and other payables approximate their fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate of interest. |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended |
Mar. 31, 2022 | |
Employee Benefit Plan [Abstract] | |
Employee Benefit Plan | 22. Employee Benefit Plan Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. The Company accrues for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The total employee benefits expensed as incurred were $255,989 (RMB1,659,681) and $569,536 (RMB3,615,587) for the three months ended March 31, 2021 and 2022, respectively. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | 23. Share-based Compensation Restricted Shares and Restricted Share Units Restricted shares granted on June 30, 2015 On June 12, 2015, the Board of Director approved the CBAK Energy Technology, Inc. 2015 Equity Incentive Plan (the “2015 Plan”) for Employees, Directors and Consultants of the Company and its Affiliates. The maximum aggregate number of Shares that may be issued under the Plan is ten million (10,000,000) Shares. On June 30, 2015, pursuant to the 2015 Plan, the Compensation Committee of the Company’s Board of Directors granted an aggregate of 690,000 restricted shares of the Company’s common stock, par value $0.001, to certain employees, officers and directors of the Company with a fair value of $3.24 per share on June 30, 2015. In accordance with the vesting schedule of the grant, the restricted shares will vest in twelve equal quarterly installments on the last day of each fiscal quarter beginning on June 30, 2015 (i.e. last vesting period: quarter ended March 31, 2018). The Company recognizes the share-based compensation expenses on a graded-vesting method. All the restricted shares granted in respect of the restricted shares granted on June 30, 2015 have been vested on March 31, 2018. As of March 31, 2022, there was no unrecognized stock-based compensation associated with the above restricted shares and 1,667 vested shares were to be issued. Restricted shares granted on April 19, 2016 On April 19, 2016, pursuant to the Company’s 2015 Plan, the Compensation Committee of the Board of Directors of the Company granted an aggregate of 500,000 restricted shares of the Company’s common stock, par value $0.001 , to certain employees, officers and directors of the Company, of which 220,000 restricted shares were granted to the Company’s executive officers and directors. There are three types of vesting schedules. First, if the number of restricted shares granted is below 3,000, the shares will vest annually in 2 equal installments over a two year period with the first vesting on June 30, 2017. Second, if the number of restricted shares granted is larger than or equal to 3,000 and is below 10,000, the shares will vest annually in 3 equal installments over a three year period with the first vesting on June 30, 2017. Third, if the number of restricted shares granted is above or equal to 10,000, the shares will vest semi-annually in 6 equal installments over a three year period with the first vesting on December 31, 2016. The fair value of these restricted shares was $2.68 per share on April 19, 2016. The Company recognizes the share-based compensation expenses over the vesting period (or the requisite service period) on a graded-vesting method. All the restricted shares granted in respect of the restricted shares granted on April 16, 2016 had been vested on June 30, 2019. As of March 31, 2022, there was no unrecognized stock-based compensation associated with the above restricted shares and 4,167 vested shares were to be issued. Restricted share units granted on August 23, 2019 On August 23, 2019, pursuant to the Company’s 2015 Plan, the Compensation Committee granted an aggregate of 1,887,000 restricted share units of the Company’s common stock to certain employees, officers and directors of the Company, of which 710,000 restricted share units were granted to the Company’s executive officers and directors. There are two types of vesting schedules, (i) the share units will vest semi-annually in 6 equal installments over a three year period with the first vesting on September 30, 2019; (ii) the share units will vest annual in 3 equal installments over a three year period with the first vesting on March 31, 2021. The fair value of these restricted shares was $0.9 per share on August 23, 2019. The Company recognizes the share-based compensation expenses over the vesting period (or the requisite service period) on a graded-vesting method. The Company recorded non-cash share-based compensation expense of $93,786 for three months ended March 31, 2021, in respect of the restricted shares granted on August 23, 2019 of which $75,794, $2,982 and $15,010 were allocated to general and administrative expenses, sales and marketing expenses and research and development expenses. The Company recorded non-cash share-based compensation expense of $23,778 for three months ended March 31, 2022, in respect of the restricted shares granted on August 23, 2019 of which $19,216, $756 and $3,806 were allocated to general and administrative expenses, sales and marketing expenses and research and development expenses. As of March 31, 2022, non-vested restricted share units granted on August 23, 2019 are as follows: Non-vested share units as of January 1, 2022 277,173 Vested (269,175 ) Forfeited (7,998 ) Non-vested share units as of March 31, 2022 - As of March 31, 2022, there was no unrecognized stock-based compensation associated with the above restricted share units and 269,175 vested shares were to be issued. Restricted share units granted on October 23, 2020 On October 23, 2020, pursuant to the Company’s 2015 Plan, the Compensation Committee granted an aggregate of 100,000 restricted share units to an employee of the Company. In accordance with the vesting schedule of the grant, the restricted share units will vest semi-annually in 6 equal installments over a three year period with the first vesting on October 30, 2020. The fair value of these restricted share units was $3 per share on October 23, 2020. The Company recognizes the share-based compensation expenses over the vesting period (or the requisite service period) on a graded-vesting method. The Company recorded non-cash share-based compensation expense of $55,032 and $11,001 for the three months ended March 31, 2021 and 2022, in respect of the restricted share units granted on October 23, 2020 of which allocated to research and development expenses. As of March 31, 2022, non-vested restricted share units granted on October 23, 2020 are as follows: Non-vested share units as of January 1, 2022 49,999 Granted - Vested - Non-vested share units as of March 31, 2022 49,999 As of March 31, 2022, there was unrecognized stock-based compensation $35,942 associated with the above restricted share units and no vested shares were to be issued. Employees Stock Ownership Program on November 29, 2021 On November 29, 2021, pursuant to the Company’s 2015 Plan, the Compensation Committee granted options to obtain an aggregate of 2,750,002 share units of the Company’s common stock to certain employees, officers and directors of the Company, of which options to obtain 350,000 share units were given to the Company’s executive officers and directors with an option exercise price of $1.96 based on fair market value. The vesting of shares each year is subject to certain financial performance indicators. The shares will be vested semi-annually in 10 equal installments over a five year period with the first vesting on May 30, 2022. The options will expire on the 70-month anniversary of the grant date. The fair value of the stock options granted to directors of the Company is estimated on the date of the grant using the Binomial Model. The fair value of the options was calculated using the following assumptions: estimated life of six months to five years, volatility of 106.41%, risk free interest rate of 1.26%, and dividend yield of 0%. The fair value of 350,000 stock options to directors of the Company was $479,599 at the grant date. For the three months ended March 31, 2022, the Company recorded nil as stock compensation expenses. The fair value of the stock options granted to certain employees and officers of the Company is estimated on the date of the grant using the Binomial Model. The fair value of the options was calculated using the following assumptions: estimated life of six months to five years, volatility of 106.41%, risk-free interest rate of 1.26% and dividend yield of 0%. The fair value of 2,400,002 stock options to certain employees and officers of the Company was $2,805,624 at the grant date. During the three months ended March 31, 2022, the Company recorded nil Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Average Aggregate Weighted Average Outstanding at January 1, 2022 2,750,002 $ 1,.96 $ - 5.7 Exercisable at January 1, 2022 - - $ - - Granted - - - - Exercised - - - - Forfeited - - - - Outstanding at March 31, 2022 2,750,002 $ 1.96 $ - 5.45 Exercisable at March 31, 2022 - $ - $ - - * The intrinsic value of the stock options at March 31, 2022 is the amount by which the market value of the Company’s common stock of $1.28 as of March 31, 2022 exceeds the exercise price of the option. As the Company itself is an investment holding company which is not expected to generate operating profits to realize the tax benefits arising from its net operating loss carried forward, no income tax benefits were recognized for such stock-based compensation cost under the stock option plan for the three months ended March 31, 2021 and 2022. |
Income (Loss) Per Share
Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Share | 24. Income (Loss) Per Share The following is the calculation of income (loss) per share: Three months ended 2021 2022 Net income $ 29,608,168 $ 680,503 Less: Net loss (income) attributable to non-controlling interests 1,114 (236,050 ) Net income attributable to shareholders of CBAK Energy Technology, Inc. 29,609,282 444,4 Weighted average shares outstanding – basic 84,283,605 88,713,841 Dilutive unvested restricted stock 650,308 21,116 Weighted average shares outstanding – diluted (note) 84,933,913 88,734,957 Income per share of common stock Basic $ 0.35 $ 0.01 Diluted $ 0.35 $ 0.01 Note: Including 288,498 and 269,175 vested restricted shares granted pursuant to the 2015 Plan that were not yet issued as of March 31, 2021 and 2022, respectively. For the three months ended March 31, 2021, all the outstanding warrants were anti-dilutive and excluded from shares used in the diluted computation. For the three months ended March 31, 2022, 2,750,002 unvested options and all the outstanding warrants were anti-dilutive and excluded from shares used in the diluted computation. |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2022 | |
Warrants [Abstract] | |
Warrants | 25. Warrants On December 8, 2020, the Company entered in a securities purchase agreement with certain institutional investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 9,489,800 shares of its common stock at a price of $5.18 per share, for aggregate gross proceeds to the Company of approximately $49 million, before deducting fees to the placement agent and other estimated offering expenses payable by the Company. As part of the transaction, the institutional investors also received warrants (“Investor Warrants”) for the purchase of up to 3,795,920 shares of the Company’s common stock at an exercise price of $6.46 per share exercisable for 36 months from the date of issuance. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 379,592 shares of the Company’s common stock at an exercise price of $6.475 per share exercisable for 36 months after 6 months from the issuance. The Company has performed a thorough reassessment of the terms of its warrants with reference to the provisions of ASC Topic 815-40-15-7I, regarding its exposure to changes in currency exchange rates. This reassessment has led to the management’s conclusion that the Company’s warrants issued to the investors should not be considered indexed to the Company’s own stock because the warrants are denominated in U.S. dollar, which is different from the Company’s functional currency, Renminbi. Warrants are remeasured at fair value with changes in fair value recorded in earnings in each reporting period. On February 8, 2021, the Company entered into another securities purchase agreement with the same investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 8,939,976 shares of common stock of the Company at a per share purchase price of $7.83. In addition, the Company issued to the investors (i) in a concurrent private placement, the Series A-1 warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.67 and exercisable for 42 months from the date of issuance; (ii) in the registered direct offering, the Series B warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.83 and exercisable for 90 days from the date of issuance; and (iii) in the registered direct offering, the Series A-2 warrants to purchase up to 2,234,992 shares of common stock, at a per share exercise price of $7.67 and exercisable for 45 months from the date of issuance. The Company received gross proceeds of approximately $70 million from the registered direct offering and the concurrent private placement, before deducting fees to the placement agent and other estimated offering expenses of $5.0 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 446,999 shares of the Company’s common stock at an exercise price of $9.204 per share exercisable for 36 months after 6 months from the issuance. On May 10, 2021, the Company entered into that Amendment No. 1 to the Series B Warrant (the “Series B Warrant Amendment”) with each of the holders of the Company’s outstanding Series B warrants. Pursuant to the Series B Warrant Amendment, the term of the Series B warrants was extended from May 11, 2021 to August 31, 2021. As of the date of this report, Series B warrant, along with Series A-2 warrants, had both expired. There was a total of 9,092,499 warrants issued and outstanding as of March 31, 2022. The fair value of the outstanding warrants was calculated using Binomial Model based on backward induction with the following assumptions: Warrants issued in the 2020 Financing Appraisal Date December 31, December 31, Market price per share (USD/share) $ 1.56 $ 1.56 Exercise price (USD/price) 6.46 6.475 Risk free rate 0.7 % 0.8 % Dividend yield 0.0 % 0.0 % Expected term/ Contractual life (years) 1.9 years 2.4 years Expected volatility 140.3 % 132.3 % Appraisal Date March 31, March 31, Market price per share (USD/share) $ 1.28 $ 1.28 Exercise price (USD/price) 6.46 6.475 Risk free rate 2.11 % 2.37 % Dividend yield 0.0 % 0.0 % Expected term/ Contractual life (years) 1.69 years 2.19 years Expected volatility 143.68 % 135.19 % Warrants issued in the 2021 Financing Warrants holder Investor Placement Agent Appraisal Date Series A1 December31, Market price per share (USD/share) 1.56 1.56 Exercise price (USD/price) 7.67 9.204 Risk free rate 0.9 % 0.9 % Dividend yield 0.0 % 0.0 % Expected term/ Contractual life (years) 2.6 years 2.6 years Expected volatility 129.2 % 129.2 % Warrants holder Investor Placement Agent Appraisal Date Series A1 March 31, 2022 Market price per share (USD/share) 1.28 1.28 Exercise price (USD/price) 7.67 9.204 Risk free rate 2.4 % 2.4 % Dividend yield 0.0 % 0.0 % Expected term/ Contractual life (years) 2.4 years 2.36 years Expected volatility 133.61 % 133.61 % The following is a reconciliation of the beginning and ending balances of warrants liability measured at fair value on a recurring basis using Level 3 inputs: December 31, March 31, Balance at the beginning of the year $ 17,783,000 $ 5,846,000 Warrants issued to institution investors 47,519,000 - Warrants issued to placement agent 2,346,000 - Warrants redeemed - - Fair value change of the issued warrants included in earnings (61,802,000 ) (1,632,000 ) Balance at end of year 5,846,000 4,214,000 The following is a summary of the warrant activity: Number of Average Weighted Average Outstanding at January 1, 2022 9,092,499 $ 7.19 2.33 Exercisable at January 1, 2022 9,092,499 $ 7.19 2.33 Granted - - - Exercised / surrendered - - - Expired - - - Outstanding at March 31, 2022 9,092,499 7.19 2.08 Exercisable at March 31, 2022 9,092,499 7.19 2.08 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 26. Commitments and Contingencies (i) Capital Commitments As of December 31, 2021 and March 31, 2022, the Company had the following contracted capital commitments: December 31, March 31, For construction of buildings $ 1,199,606 $ 1,582,346 For purchases of equipment 12,867,786 13,093,091 Capital injection 159,905,519 157,296,525 $ 173,972,911 $ 171,971,962 (ii) Litigation During its normal course of business, the Company may become involved in various lawsuits and legal proceedings. However, litigation is subject to inherent uncertainties, and an adverse result may arise from time to time will affect its operation. Other than the legal proceedings set forth below, the Company is currently not aware of any such legal proceedings or claims that the Company believe will have an adverse effect on the Company’s operation, financial condition or operating results. On July 7, 2016, Shenzhen Huijie Purification System Engineering Co., Ltd (“Shenzhen Huijie”), one of the Company’s contractors, filed a lawsuit against CBAK Power in the Peoples’ Court of Zhuanghe City, Dalian, (the “Court of Zhuanghe”) for failure to pay pursuant to the terms of the contract and entrusting part of the project of the contract to a third party without their prior consent. The plaintiff sought a total amount of $1,241,648 (RMB8,430,792), including construction costs of $0.9 million (RMB6.1 million, which the Company already accrued for at June 30, 2016), interest of $29,812 (RMB0.2 million) and compensation of $0.3 million (RMB1.9 million). On September 7, 2016, upon the request of Shenzhen Huijie for property preservation, the Court of Zhuanghe froze CBAK Power’s bank deposits totaling $1,210,799 (RMB8,430,792) for a period of one year. On September 1, 2017, upon the request of Shenzhen Huijie, the Court of Zhuanghe froze the bank deposits for another one year until August 31, 2018. The Court further froze the bank deposits for another one year until August 27, 2019 upon the request of Shenzhen Huijie on August 27, 2018. On August 27, 2019, the Court froze the bank deposits for another year until August 27, 2020, upon the request of Shenzhen Huijie. On June 28, 2020, the Court of Dalian entered the final judgement as described below and the frozen bank deposit was released in July 2020. On June 30, 2017, according to the trial of first instance, the Court of Zhuanghe ruled that CBAK Power should pay the remaining contract amount of RMB6,135,860 (approximately $0.9 million) claimed by Shenzhen Huijie as well as other expenses incurred including deferred interest, discounted charge on bills payable, litigation fee and property preservation fee totaled $0.1 million. The Company has accrued for these amounts as of December 31, 2017. On July 24, 2017, CBAK Power filed an appellate petition to the Intermediate Peoples’ Court of Dalian (“Court of Dalian)” to appeal the adjudication dated on June 30, 2017. On November 17, 2017, the Court of Dalian rescinded the original judgement and remanded the case to the Court of Zhuanghe for retrial. The Court of Zhuanghe conducted a retrial and requested an appraisal to be performed by a third-party appraisal institution on the construction cost incurred and completed by Shenzhen Huijie on the subject project. On November 8, 2018, the Company received from the Court of Zhuanghe the construction-cost-appraisal report which determined that the construction cost incurred and completed by Shenzhen Huijie for the subject project to be $1,344,605 (RMB9,129,868). On May 20, 2019, the Court of Zhuanghe entered a judgment that Shenzhen Huijie should pay back to CBAK Power $261,316 (RMB1,774,337) (the amount CBAK Power paid in excess of the construction cost appraised by the appraisal institution) and the interest incurred since April 2, 2019. Shenzhen Huijie filed an appellate petition to the Court of Dalian. On June 28, 2020, the Court of Dalian entered the final judgment that Shenzhen Huijie should pay back to CBAK Power $245,530 (RMB1,667,146) (the amount CBAK Power paid in excess of the construction cost appraised by the appraisal institution) and the interest incurred since April 2, 2019, and reimburse the litigation fees totaling $30,826 (RMB209,312) that CBAK Power has paid. As of December 31, 2021, CBAK Power have not received the final judgement amount totaled $276,356 (RMB 1,876,458) from Shenzhen Huijie. Shenzhen Huijie filed an appellate petition to High Peoples’ Court of Liaoning (“Court of Liaoning”) to appeal the adjudication dated on June 28, 2020. In April 2021, the Court of Liaoning rescinded the original judgement and remanded the case to the Court of Dalian for retrial. On December 21, 2021, the Court of Dalian remanded the case to the Court of Zhuanghe for retrial. Upon receiving the notice from the Court of Liaoning, CBAK Power has accrued the construction cost of $0.9 million (RMB6,135,860) as of March 31, 2022. In December 2020, CBAK Power received notice from Court of Dalian Economic and Technology Development Zone that Haoneng filed another lawsuit against CBAK Power for failure to pay pursuant to the terms of the purchase contract. Haoneng sought a total amount of $1,613,984 (RMB10,257,030), including equipment cost of $1,427,515 (RMB9,072,000) and interest amount of $186,469 (RMB1,185,030). In August 2021, CBAK Power and Haoneng reached an agreement that the term of the purchase contract will be extended to December 31, 2023 under which CBAK Power and its related parties shall execute the purchase of equipment in an amount not lower than $2.4 million (RMB15,120,000) from Haoneng, or CBAK Power has to pay 15% of the amount equal to RMB15,120,000 ($2.4 million) net of the purchased amount to Haoneng. Haoneng withdrew the filed lawsuit after the agreement. As of March 31, 2022, the equipment was not received by CBAK Power, CBAK Power has included the equipment cost of $2.4 million (RMB15,120,000) under capital commitments. |
Concentrations and Credit Risk
Concentrations and Credit Risk | 3 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations and Credit Risk | 27. Concentrations and Credit Risk (a) Concentrations The Company had the following customers that individually comprised 10% or more of net revenue for the three months ended March 31, 2021 and 2022 as follows: Three months ended March 31, Sales of finished goods and raw materials 2021 2022 Customer A $ 2,903,261 30.83 % $ * * Customer B 1,789,045 19.00 % * * Customer C 1,348,200 14.32 % * * Customer D * * 24,102,164 30.05 % Zhengzhou BAK Battery Co., Ltd (note 16) * * 25,823,532 32.20 % * Comprised less than 10% of net revenue for the respective period. The Company had the following customers that individually comprised 10% or more of net trade receivable (included VAT) as of December 31, 2021 and March 31, 2022 as follows: December 31, March 31, Customer D $ 14,443,551 32.76 % $ 15,641,986 37.73 % Zhengzhou BAK Battery Co., Ltd (note 16) 14,583,061 33.08 % 12,963,529 31.27 % * Comprised less than 10% of net accounts receivable for the respective period. The Company had the following suppliers that individually comprised 10% or more of net purchase for the three months ended March 31, 2021 and 2022 as follows: Three months ended March 31, 2021 2022 Supplier A $ 659,513 10.21 % $ * * Supplier B * * 20,631,815 25.30 % Supplier C * * 19,332,674 23.71 % Zhengzhou BAK Battery Co., Ltd (note 16) 1,259,309 19.49 % * * * Comprised less than 10% of net purchase for the respective period. The Company had the following suppliers that individually comprised 10% or more of trade payable as of December 31, 2021 and March 31, 2022 as follows: December 31, March 31, Supplier B $ 20,592,979 51.03 % $ 18,430,728 39.59 % Supplier C 6,837,722 16.94 % 8,705,648 18.70 % (b) Credit Risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of December 31, 2021 and March 31, 2022, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in the PRC, which management believes are of high credit quality. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 28. Segment Information The Group’s chief operating decision maker has been identified as the Chief Executive Officer (“CEO”) who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Company. As a result of the Hitrans acquisition discussed in Note 11, the Group determined that Hitrans met the criteria for separate reportable segment given its financial information is separately reviewed by the Group’s CEO. As a result, the Group determined that it operated in two operating segments namely CBAK and Hitrans upon completion of acquisition. CBAK’s segment mainly includes the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion rechargeable batteries for use in a wide array of applications. Hitrans’ segment mainly includes the development and manufacturing of NCM precursor and cathode materials. The Company primarily operates in the PRC and substantially all of the Company’s long-lived assets are located in the PRC. The Company’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, cost of revenues, operating expenses, operating income, finance income (expense), other income and net income. Net revenue, cost of revenues, operating expenses, operating income, finance income (expense), other income and net income by segment for the three months ended March 31, 2021 and 2022 were as follows: For the three months ended March 31, 2021 CBAT Corporate unallocated (note) Consolidated Net revenues $ 9,416,049 $ - $ 9,416,049 Cost of revenues (7,576,620 ) - (7,576,620 ) Gross profit 1,839,429 - 1,839,429 Total operating expenses (1,319,248 ) (548,063 ) (1,867,311 ) Operating income (loss) 520,181 (548,063 ) (27,882 ) Finance (expenses) income, net (13,443 ) 5,845 (7,598 ) Other income, net 1,217,648 28,426,000 29,643,648 Income tax (expense) credit - - - Net income 1,724,386 27,883,782 29,608,168 For the three months ended March 31, 2022 CBAT Hitrans Corporate unallocated (note) Consolidated Net revenues $ 15,020,686 $ 65,175,612 $ - $ 80,196,298 Cost of revenues (14,037,762 ) (60,842,182 ) - (74,879,944 ) Gross profit 982,924 4,333,430 - 5,316,354 Total operating expenses (3,108,736 ) (3,137,747 ) (405,132 ) (6,651,615 ) Operating (loss) income (2,125,812 ) 1,195,683 (405,132 ) (1,335,261 ) Finance income (expenses), net 107,870 (102,708 ) (148 ) 5,014 Other income, net 503,156 (217,952 ) 1,632,000 1,917,204 Income tax credit - 93,546 - 93,546 Net income (1,514,786 ) 968,569 1,226,720 680,503 As of March 31, 2022 Identifiable long-lived assets 101,091,666 31,423,660 - 132,515,326 Total assets 178,351,609 99,826,945 616,667 278,795,221 Note: The Company does not allocate its assets located and expenses incurred outside China to its reportable segments because these assets and activities are managed at a corporate level. Net revenues by product: The Company’s products can be categorized into high power lithium batteries and materials used in manufacturing of lithium batteries.. For the product sales of high power lithium batteries, the Company manufactured five types of Li-ion rechargeable batteries: aluminum-case cell, battery pack, cylindrical cell, lithium polymer cell and high-power lithium battery cell. The Company’s battery products are sold to packing plants operated by third parties primarily for use in mobile phones and other electronic devices. For the product sales of materials used in manufacturing of lithium batteries, the Company, via its subsidiary, Hitrans, manufactured cathode materials and Precursor for use in manufacturing of cathode. Revenue from these products is as follows: Three months ended 2021 2022 High power lithium batteries used in: Electric vehicles $ 100,976 $ 309 Light electric vehicles 34,104 88,764 Uninterruptable supplies 8,763,583 14,931,613 Trading of raw materials used in lithium batteries 517,386 - 9,416,049 15,020,686 Materials used in manufacturing of lithium batteries Cathode - 28,362,877 Precursor - 36,812,735 - 65,175,612 Total consolidated revenue $ 9,416,049 $ 80,196,298 Net revenues by geographic area: The Company’s operations are located in the PRC. The following table provides an analysis of the Company’s sales by geographical markets based on locations of customers: Three months ended 2021 2022 Mainland China $ 7,625,793 71,996,013 Europe 1,789,045 8,134,906 Others 1,211 65,379 Total $ 9,416,049 $ 80,196,298 Substantially all of the Company’s long-lived assets are located in the PRC. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | 29. Subsequent events The Company has evaluated subsequent events from March 31, 2022 to the date the financial statements were issued and has determined that there are no items to disclose. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Principal Activities | Principal Activities CBAK Energy Technology, Inc. (formerly known as China BAK Battery, Inc.) (“CBAK” or the “Company”) is a corporation formed in the State of Nevada on October 4, 1999 as Medina Copy, Inc. The Company changed its name to Medina Coffee, Inc. on October 6, 1999 and subsequently changed its name to China BAK Battery, Inc. on February 14, 2005. CBAK and its subsidiaries (hereinafter, collectively referred to as the “Company”) are principally engaged in the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion (known as “Li-ion” or “Li-ion cell”) high power rechargeable batteries. Prior to the disposal of BAK International Limited (“BAK International”) and its subsidiaries (see below), the batteries produced by the Company were for use in cellular telephones, as well as various other portable electronic applications, including high-power handset telephones, laptop computers, power tools, digital cameras, video camcorders, MP3 players, electric bicycles, hybrid/electric vehicles, and general industrial applications. After the disposal of BAK International and its subsidiaries on June 30, 2014, the Company will focus on the manufacture, commercialization and distribution of high power lithium ion rechargeable batteries for use in cordless power tools, light electric vehicles, hybrid electric vehicles, electric cars, electric busses, uninterruptable power supplies and other high power applications. The shares of the Company traded in the over-the-counter market through the Over-the-Counter Bulletin Board from 2005 until May 31, 2006, when the Company obtained approval to list its common stock on The NASDAQ Global Market, and trading commenced that same date under the symbol “CBAK”. On January 10, 2017, the Company filed Articles of Merger with the Secretary of State of Nevada to effectuate a merger between the Company and the Company’s newly formed, wholly owned subsidiary, CBAK Merger Sub, Inc. (the “Merger Sub”). According to the Articles of Merger, effective January 16, 2017, the Merger Sub merged with and into the Company with the Company being the surviving entity (the “Merger”). As permitted by Chapter 92A.180 of Nevada Revised Statutes, the sole purpose of the Merger was to effect a change of the Company’s name. Effective November 30, 2018, the trading symbol for common stock of the Company was changed from CBAK to CBAT. Effective at the opening of business on June 21, 2019, the Company’s common stock started trading on the Nasdaq Capital Market. |
Basis of Presentation and Organization | Basis of Presentation and Organization On November 6, 2004, BAK International, a non-operating holding company that had substantially the same shareholders as Shenzhen BAK Battery Co., Ltd (“Shenzhen BAK”), entered into a share swap transaction with the shareholders of Shenzhen BAK for the purpose of the subsequent reverse acquisition of the Company. The share swap transaction between BAK International and the shareholders of Shenzhen BAK was accounted for as a reverse acquisition of Shenzhen BAK with no adjustment to the historical basis of the assets and liabilities of Shenzhen BAK. On January 20, 2005, the Company completed a share swap transaction with the shareholders of BAK International. The share swap transaction, also referred to as the “reverse acquisition” of the Company, was consummated under Nevada law pursuant to the terms of a Securities Exchange Agreement entered by and among CBAK, BAK International and the shareholders of BAK International on January 20, 2005. The share swap transaction has been accounted for as a capital-raising transaction of the Company whereby the historical financial statements and operations of Shenzhen BAK are consolidated using historical carrying amounts. Also on January 20, 2005, immediately prior to consummating the share swap transaction, BAK International executed a private placement of its common stock with unrelated investors whereby it issued an aggregate of 1,720,087 shares of common stock for gross proceeds of $17,000,000. In conjunction with this financing, Mr. Xiangqian Li, the Chairman and Chief Executive Officer of the Company (“Mr. Li”), agreed to place 435,910 shares of the Company’s common stock owned by him into an escrow account pursuant to an Escrow Agreement dated January 20, 2005 (the “Escrow Agreement”). Pursuant to the Escrow Agreement, 50% of the escrowed shares were to be released to the investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2005 was not at least $12,000,000, and the remaining 50% was to be released to investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2006 was not at least $27,000,000. If the audited net income of the Company for the fiscal years ended September 30, 2005 and 2006 reached the above-mentioned targets, the 435,910 shares would be released to Mr. Li in the amount of 50% upon reaching the 2005 target and the remaining 50% upon reaching the 2006 target. Under accounting principles generally accepted in the United States of America (“US GAAP”), escrow agreements such as the one established by Mr. Li generally constitute compensation if, following attainment of a performance threshold, shares are returned to a company officer. The Company determined that without consideration of the compensation charge, the performance thresholds for the year ended September 30, 2005 would be achieved. However, after consideration of a related compensation charge, the Company determined that such thresholds would not have been achieved. The Company also determined that, even without consideration of a compensation charge, the performance thresholds for the year ended September 30, 2006 would not be achieved. While the 217,955 escrow shares relating to the 2005 performance threshold were previously released to Mr. Li, Mr. Li executed a further undertaking on August 21, 2006 to return those shares to the escrow agent for the distribution to the relevant investors. However, such shares were not returned to the escrow agent, but, pursuant to a Delivery of Make Good Shares, Settlement and Release Agreement between the Company, BAK International and Mr. Li entered into on October 22, 2007 (the “Li Settlement Agreement”), such shares were ultimately delivered to the Company as described below. Because the Company failed to satisfy the performance threshold for the fiscal year ended September 30, 2006, the remaining 217,955 escrow shares relating to the fiscal year 2006 performance threshold were released to the relevant investors. As Mr. Li has not retained any of the shares placed into escrow, and as the investors party to the Escrow Agreement are only shareholders of the Company and do not have and are not expected to have any other relationship to the Company, the Company has not recorded a compensation charge for the years ended September 30, 2005 and 2006. At the time the escrow shares relating to the 2006 performance threshold were transferred to the investors in fiscal year 2007, the Company should have recognized a credit to donated shares and a debit to additional paid-in capital, both of which are elements of shareholders’ equity. This entry is not material because total ordinary shares issued and outstanding, total shareholders’ equity and total assets do not change; nor is there any impact on income or earnings per share. Therefore, previously filed consolidated financial statements for the fiscal year ended September 30, 2007 will not be restated. This share transfer has been reflected in these financial statements by reclassifying the balances of certain items as of October 1, 2007. The balances of donated shares and additional paid-in capital as of October 1, 2007 were credited and debited by $7,955,358 respectively, as set out in the consolidated statements of changes in shareholders’ equity. In November 2007, Mr. Li delivered the 217,955 shares related to the 2005 performance threshold to BAK International pursuant to the Li Settlement Agreement; BAK International in turn delivered the shares to the Company. Such shares (other than those issued to investors pursuant to the 2008 Settlement Agreements, as described below) are now held by the Company. Upon receipt of these shares, the Company and BAK International released all claims and causes of action against Mr. Li regarding the shares, and Mr. Li released all claims and causes of action against the Company and BAK International regarding the shares. Under the terms of the Li Settlement Agreement, the Company commenced negotiations with the investors who participated in the Company’s January 2005 private placement in order to achieve a complete settlement of BAK International’s obligations (and the Company’s obligations to the extent it has any) under the applicable agreements with such investors. Beginning on March 13, 2008, the Company entered into settlement agreements (the “2008 Settlement Agreements”) with certain investors in the January 2005 private placement. Since the other investors have never submitted any claims regarding this matter, the Company did not reach any settlement with them. Pursuant to the 2008 Settlement Agreements, the Company and the settling investors have agreed, without any admission of liability, to a settlement and mutual release from all claims relating to the January 2005 private placement, including all claims relating to the escrow shares related to the 2005 performance threshold that had been placed into escrow by Mr. Li, as well as all claims, including claims for liquidated damages relating to registration rights granted in connection with the January 2005 private placement. Under the 2008 Settlement Agreement, the Company has made settlement payments to each of the settling investors of the number of shares of the Company’s common stock equivalent to 50% of the number of the escrow shares related to the 2005 performance threshold these investors had claimed; aggregate settlement payments as of June 30, 2015amounted to 73,749 shares. Share payments to date have been made in reliance upon the exemptions from registration provided by Section 4(2) and/or other applicable provisions of the Securities Act of 1933, as amended. In accordance with the 2008 Settlement Agreements, the Company filed a registration statement covering the resale of such shares which was declared effective by the SEC on June 26, 2008. Pursuant to the Li Settlement Agreement, the 2008 Settlement Agreements and upon the release of the 217,955 escrow shares relating to the fiscal year 2006 performance threshold to the relevant investors, neither Mr. Li or the Company have any obligations to the investors who participated in the Company’s January 2005 private placement relating to the escrow shares. As of March 31, 2022, the Company had not received any claim from the other investors who have not been covered by the “2008 Settlement Agreements” in the January 2005 private placement. As the Company has transferred the 217,955 shares related to the 2006 performance threshold to the relevant investors in fiscal year 2007 and the Company also have transferred 73,749 shares relating to the 2005 performance threshold to the investors who had entered the “2008 Settlement Agreements” with us in fiscal year 2008, pursuant to “Li Settlement Agreement” and “2008 Settlement Agreements”, neither Mr. Li nor the Company had any remaining obligations to those related investors who participated in the Company’s January 2005 private placement relating to the escrow shares. On August 14, 2013, Dalian BAK Trading Co., Ltd was established as a wholly owned subsidiary of China BAK Asia Holding Limited (“BAK Asia”) with a registered capital of $500,000. Pursuant to CBAK Trading’s articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Trading on or before August 14, 2015. On March 7, 2017, the name of Dalian BAK Trading Co., Ltd was changed to Dalian CBAK Trading Co., Ltd (“CBAK Trading”). On August 5, 2019, CBAK Trading’s registered capital was increased to $5,000,000. Pursuant to CBAK Trading’s amendment articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Trading on or before August 1, 2033. Up to the date of this report, the Company has contributed $2,435,000 to CBAK Trading in cash. On December 27, 2013, Dalian BAK Power Battery Co., Ltd was established as a wholly owned subsidiary of BAK Asia with a registered capital of $30,000,000. Pursuant to CBAK Power’s articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Power on or before December 27, 2015. On March 7, 2017, the name of Dalian BAK Power Battery Co., Ltd was changed to Dalian CBAK Power Battery Co., Ltd (“CBAK Power”). On July 10, 2018, CBAK Power’s registered capital was increased to $50,000,000. On October 29, 2019, CBAK Power’s registered capital was further increased to $60,000,000. Pursuant to CBAK Power’s amendment articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Power on or before December 31, 2021. The Company has paid in full to CBAK Power through injection of a series of patents and cash. On May 4, 2018, CBAK New Energy (Suzhou) Co., Ltd (“CBAK Suzhou”) was established as a 90% owned subsidiary of CBAK Power with a registered capital of RMB10,000,000 (approximately $1.5 million). The remaining 10% equity interest was held by certain employees of CBAK Suzhou. Pursuant to CBAK Suzhou’s articles of association, each shareholder is entitled to the right of the profit distribution or responsible for the loss according to its proportion to the capital contribution. Pursuant to CBAK Suzhou’s articles of association and relevant PRC regulations, CBAK Power was required to contribute the capital to CBAK Suzhou on or before December 31, 2019. Up to the date of this report, the Company has contributed RMB9.0 million (approximately $1.3 million), and the other shareholders have contributed RMB1.0 million (approximately $0.1 million) to CBAK Suzhou through injection of a series of cash. The Company plan to dissolve CBAK Suzhou in 2022. On November 21, 2019, Dalian CBAK Energy Technology Co., Ltd (“CBAK Energy”) was established as a wholly owned subsidiary of BAK Asia with a registered capital of $50,000,000. Pursuant to CBAK Energy’s articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Energy on or before November 20, 2022. Up to the date of this report, the Company has contributed $23,519,880 to CBAK Energy. On July 14, 2020, the Company acquired BAK Asia Investments Limited (“BAK Investments”), a company incorporated under Hong Kong laws, from Mr. Xiangqian Li, the Company’s former CEO, for a cash consideration of HK$1.00. BAK Asia Investments Limited is a holding company without any other business operations. On July 31, 2020, BAK Investments formed a wholly owned subsidiary CBAK New Energy (Nanjing) Co., Ltd. (“CBAK Nanjing”) in China with a registered capital of $100,000,000. Pursuant to CBAK Nanjing’s articles of association and relevant PRC regulations, BAK Investments was required to contribute the capital to CBAK Nanjing on or before July 29, 2040. Up to the date of this report, the Company has contributed $55,289,915 to CBAK Nanjing. On August 6, 2020, Nanjing CBAK New Energy Technology Co., Ltd. (“Nanjing CBAK”) was established as a wholly owned subsidiary of CBAK Nanjing with a registered capital of RMB700,000,000 (approximately $110 million). Pursuant to Nanjing CBAK’s articles of association and relevant PRC regulations, CBAK Nanjing was required to contribute the capital to Nanjing CBAK on or before August 5, 2040. Up to the date of this report, the Company has contributed RMB352,538,138 (approximately $55.6 million) to Nanjing CBAK. On November 9, 2020, Nanjing Daxin New Energy Automobile Industry Co., Ltd (“Nanjing Daxin”) was established as a wholly owned subsidiary of CBAK Nanjing with a register capital of RMB50,000,000 (approximately $7.9 million). Up to the date of this report, the Company has contributed RMB33,416,000 (approximately $5.2 million) to Nanjing Daxin. On April 21, 2021, CBAK Power, along with Shenzhen BAK Power Battery Co., Ltd (BAK SZ), Shenzhen Asian Plastics Technology Co., Ltd (SZ Asian Plastics) and Xiaoxia Liu, entered into an investment agreement with Junxiu Li, Hunan Xintao New Energy Technology Partnership, Xingyu Zhu, and Jiangsu Saideli Pharmaceutical Machinery Manufacturing Co., Ltd for an investment in Hunan DJY Technology Co., Ltd (“DJY”). CBAK Power has paid $1.4 million (RMB9,000,000) to acquire 9.74% of the equity interests of DJY. CBAK Power has appointed one director to the Board of Directors of DJY. DJY is an unrelated third party of the Company engaging in researching and manufacturing of raw materials and equipment. On August 4, 2021, Daxin New Energy Automobile Technology ( Jiangsu) Co., Ltd (“Jiangsu Daxin”) was established as a wholly owned subsidiary of Nanjing CBAK with a register capital of RMB 30,000,000 (approximately $4.7 million). Pursuant to Jiangsu Daxin’s articles of association and relevant PRC regulations, Nanjing Daxin was required to contribute the capital to Jiangsu Daxin on or before July 30, 2061. Up to the date of this report the Company has contributed nil to Jiangsu Daxin. On July 20, 2021, CBAK Power entered into a framework agreement relating to CBAK Power’s investment in Zhejiang Hitrans Lithium Battery Technology Co., Ltd (“Hitrans”, formerly known as Zhejinag Meidu Hitrans Lithium Battery Technology Co., Ltd), pursuant to which CBAK Power agreed to acquire 81.56% of registered equity interests (representing 75.57% of paid-up capital)of Hitrans (the “Acquisition”). The Acquisition was completed on November 26, 2021 (Note 11). After the completion of the Acquisition, Hitrans became a wholly owned subsidiary of the Company. On July 6, 2018, Guangdong Meidu Hitrans Resources Recycling Technology Co., Ltd. (“Guangdong Hitrans”) was established as a 80% owned subsidiary of Hitrans with a registered capital of RMB10 million (approximately $1.6million). The remaining 20% registered equity interest was held by Shenzhen Baijun Technology Co., Ltd. Pursuant to Guangdong Hitrans’s articles of association, each shareholder is entitled to the right of the profit distribution or responsible for the loss according to its proportion to the capital contribution. Pursuant to Guangdong Hitrans’s articles of association and relevant PRC regulations, Hitrans was required to contribute the capital to Guangdong Hitrans on or before December 30, 2038. Up to the date of this report, Hitrans has contributed RMB1.72 million (approximately $0.3 million), and the other shareholder has contributed RMB0.25 million (approximately $0.04 million) to Guangdong Hitrans through injection of a series of cash. Guangdong Hitrans was established under the laws of the People’s Republic of China as a limited liability company on July 6, 2018 with a registered capital RMB10 million (approximately $1.5 million). Guangdong Hitrans is based in Dongguan, Guangdong Province, and is principally engaged in the business of resource recycling, waste processing, and R&D, manufacturing and sales of battery materials. The Company plan to dissolve Guangdong Hitrans in 2022. On October 9, 2021, Shaoxing Haisheng International Trading Co., Ltd. (“Haisheng”) was established as a wholly owned subsidiary of Hitrans with a register capital of RMB5 million (approximately $0.8 million). Pursuant to Haisheng’s articles of association and relevant PRC regulations, Hitrans was required to contribute the capital to Haisheng on or before May 31, 2025. Up to the date of this report, Hitrans has contributed RMB3.5 million (approximately $0.5 million) to Haisheng. The Company’s condensed consolidated financial statements have been prepared under US GAAP. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company and its subsidiaries, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liability established in the PRC or Hong Kong. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company’s subsidiaries to present them in conformity with US GAAP. After the disposal of BAK International Limited and its subsidiaries, namely Shenzhen BAK, Shenzhen BAK Power Battery Co., Ltd (formerly BAK Battery (Shenzhen) Co., Ltd.) (“BAK Shenzhen”), BAK International (Tianjin) Ltd. (“BAK Tianjin”), Tianjin Chenhao Technological Development Limited (a subsidiary of BAK Tianjin established on May 8, 2014, “Tianjin Chenhao”), BAK Battery Canada Ltd. (“BAK Canada”), BAK Europe GmbH (“BAK Europe”) and BAK Telecom India Private Limited (“BAK India”), effective on June 30, 2014, and as of December 31, 2021, the Company’s subsidiaries consisted of: i) China BAK Asia Holdings Limited (“BAK Asia”), a wholly owned limited liability company incorporated in Hong Kong on July 9, 2013; ii) Dalian CBAK Trading Co., Ltd. (“CBAK Trading”), a wholly owned limited company established on August 14, 2013 in the PRC; iii) Dalian CBAK Power Battery Co., Ltd. (“CBAK Power”), a wholly owned limited liability company established on December 27, 2013 in the PRC; iv) CBAK New Energy (Suzhou) Co., Ltd. (“CBAK Suzhou”), a 90% owned limited liability company established on May 4, 2018 in the PRC; v) Dalian CBAK Energy Technology Co., Ltd (“CBAK Energy”), a wholly owned limited liability company established on November 21, 2019 in the PRC; (vi) BAK Asia Investments Limited (“BAK Investments”), a wholly owned limited liability company incorporated in Hong Kong acquired on July 14, 2020; (vii) CBAK New Energy (Nanjing) Co., Ltd. (“CBAK Nanjing”), a wholly owned limited liability company established on July 31, 2020 in the PRC; (viii) Nanjing CBAK New Energy Technology Co., Ltd, (“Nanjing CBAK”), a wholly owned limited liability company established on August 6, 2020 in the PRC; (ix) Nanjing Daxin New Energy Automobile Industry Co., Ltd (“Nanjing Daxin”), a wholly owned limited liability company established on November 9, 2020; (x) Daxin New Energy Automobile Technology ( Jiangsu) Co., Ltd (“Jiangsu Daxin”), a wholly owned limited liability company established on August 4, 2021 in the PRC; (xi) Zhejiang Hitrans Lithium Battery Technology Co., Ltd (“Hitrans”), a 81.56% registered equity interests (representing 75.57% of paid-up capital) owned limited liability company established on December 16, 2015 in the PRC; (xii) Guangdong Meidu Hitrans Resources Recycling Technology Co., Ltd., a 65.25% owned limited liability company established on July 6, 2018 in the PRC and (xiii) Shaoxing Haisheng International Trading Co., Ltd. (“Haisheng”), a 81.56% registered equity interests (representing 75.57% of paid-up capital) owned limited liability company established on October 9, 2021 in the PRC. The Company continued its business and continued to generate revenues from sale of batteries via subcontracting the production to BAK Tianjin and BAK Shenzhen, former subsidiaries before the completion of construction and operation of its facility in Dalian. BAK Tianjin and BAK Shenzhen are now suppliers of the Company and the Company does not have any significant benefits or liability from the operating results of BAK Tianjin and BAK Shenzhen except the normal risk with any major supplier. As of the date of this report, Mr. Xiangqian Li is no longer a director of BAK International and BAK Tianjin. He remained as a director of Shenzhen BAK and BAK Shenzhen. On December 8, 2020, the Company entered into a securities purchase agreement with certain institutional investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 9,489,800 shares of common stock of the Company at a per share purchase price of $5.18, and warrants to purchase an aggregate of 3,795,920 shares of common stock of the Company at an exercise price of $6.46 per share exercisable for 36 months from the date of issuance, for gross proceeds of approximately $49.16 million, before deducting fees to the placement agent and other estimated offering expenses of $3.81 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 379,592 shares of the Company’s common stock at an exercise price of $6.475 per share exercisable for 36 months after 6 months from the issuance. On February 8, 2021, the Company entered into another securities purchase agreement with the same investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 8,939,976 shares of common stock of the Company at a per share purchase price of $7.83. In addition, the Company issued to the investors (i) in a concurrent private placement, the Series A-1 warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.67 and exercisable for 42 months from the date of issuance; (ii) in the registered direct offering, the Series B warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.83 and exercisable for 90 days from the date of issuance; and (iii) in the registered direct offering, the Series A-2 warrants to purchase up to 2,234,992 shares of common stock, at a per share exercise price of $7.67 and exercisable for 45 months from the date of issuance. The Company received gross proceeds of approximately $70 million from the registered direct offering and the concurrent private placement, before deducting fees to the placement agent and other estimated offering expenses of $5.0 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 446,999 shares of the Company’s common stock at an exercise price of $9.204 per share exercisable for 36 months after 6 months from the issuance. On May 10, 2021, the Company entered into that Amendment No. 1 to the Series B Warrant (the “Series B Warrant Amendment”) with each of the holders of the Company’s outstanding Series B warrants. Pursuant to the Series B Warrant Amendment, the term of the Series B warrants was extended from May 11, 2021 to August 31, 2021. As of August 31, 2021, the Company had not received any notices from the investors to exercise Series B warrants. As of the date of this report, Series B warrants, along with Series A-2 warrants, had both expired. As of March 31, 2022, the Company had $14.6 million bank loans and approximately $107.9 million of other current liabilities (excluding warrants derivative liability). The Company is currently expanding its product lines and manufacturing capacity in its Dalian plant and Nanjing plant which requires more funding to finance the expansion. The Company plans to raise additional funds through banks borrowings and equity financing in the future to meet its daily cash demands, if required. |
COVID-19 | COVID-19 The World Health Organization declared the novel coronavirus (“COVID-19”) outbreak as a pandemic in March 2020. The COVID-19 pandemic has caused disruptions to our operations in 2021. Our Dalian facility’s operations were suspended in November 2021 due to the COVID-19 containment measures adopted by the local government. Hitrans’s production facility in Shangyu, Zhejiang was also temporarily closed from December 9 to 24, 2021 to comply with the local lockdown policy in response to a surge of COVID-19 cases. Finally, the Company expects that the impact of the COVID-19 outbreak on the United States and world economies will continue to have a material adverse impact on the demand for its products. Because of the significant uncertainties surrounding the COVID-19 pandemic, the extent of the business interruption and the related financial impact cannot be reasonably estimated at this time. |
Going Concern | Going Concern The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has accumulated deficit from recurring net losses incurred for the prior years and significant short-term debt obligations maturing in less than one year as of March 31, 2022. These conditions raise substantial doubt about the Company ability to continue as a going concern. The Company’s plan for continuing as a going concern included improving its profitability, and obtaining additional debt financing, loans from existing directors and shareholders for additional funding to meet its operating needs. There can be no assurance that the Company will be successful in the plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify 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 revenues when (or as) we satisfy the performance obligation. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the categories: discounts and returns. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). The Company applied the new standard beginning January 1, 2022. The adoption of ASU 2021-04 did not have any impact on the Company’s condensed consolidated financial statement presentation or disclosures. |
Recently Issued But Not Yet Adopted Accounting Pronouncements | Recently Issued But Not Yet Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is to be adopted on a modified retrospective basis. As a smaller reporting company, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. In March 2022, the FASB issued ASU 2022-02, Topic 326. The ASU eliminates the accounting guidance for trouble debt restructurings by creditors in Subtopic 310-40, and enhances the disclosure requirements for modifications of loans to borrowers experiencing financial difficulty. Additionally, the ASU requires disclosure of gross writeoffs of receivables by year of origination for receivables within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2016-13 and ASU 2022-02 will have on its condensed consolidated financial statement presentations and disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminates Step 2 of the two-step goodwill impairment test, under which a goodwill impairment loss was measured by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 requires only a one-step quantitative impairment test, whereby a goodwill impairment loss is measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). Adoption of the ASUs is on a modified retrospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of ASU 2017-04 will have on its condensed consolidated financial statement presentation or disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires the recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers. This creates an exception to the general recognition and measurement principles in ASC 805. As a smaller reporting company, ASU 2021-08 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2023, with early adoption permitted. The amendments in this ASU should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company does not anticipate that the adoption of this guidance will have a material impact on the condensed consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This update is effective for annual periods beginning after December 15, 2021, and early application is permitted. This guidance should be applied either prospectively to all transactions that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or retrospectively to those transactions. The Company is currently gathering the information and evaluating the future impact on the Company's financial statement annual disclosures. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Pledged Deposits (Tables)
Pledged Deposits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Pledged Deposits [Abstract] | |
Schedule of pledged deposits | December 31, March 31, Pledged deposits with banks for: Bills payable (Note 13) $ 18,996,749 $ 25,141,517 Others - 580 $ 18,996,749 $ 25,142,097 |
Trade and Bills Receivable, n_2
Trade and Bills Receivable, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Trade And Bills Receivable Net [Abstract] | |
Schedule of trade accounts and bills receivable | December 31, March 31, 2021 2022 Trade accounts receivable $ 48,707,457 $ 46,364,398 Less: Allowance for doubtful accounts (4,618,269 ) (4,904,450 ) 44,089,188 41,459,948 Bills receivable 5,817,941 8,805,836 $ 49,907,129 $ 50,265,784 |
Schedule of analysis of the allowance for doubtful accounts | March 31, March 31, 2021 2022 Balance at beginning of period $ 5,266,828 $ 4,618,269 Provision for the year - 322,928 Reversal - recoveries by cash (154,061 ) (51,485 ) Charged to consolidated statements of operations and comprehensive (loss) income $ (154,061 ) $ 271,443 Foreign exchange adjustment (17,819 ) 14,738 Balance at end of period $ 5,094,948 $ 4,904,450 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, March 31, 2021 2022 Raw materials $ 11,323,638 $ 15,484,667 Work in progress 8,093,002 9,428,354 Finished goods 10,716,700 16,958,128 $ 30,133,340 $ 41,871,149 |
Prepayments and Other Receiva_2
Prepayments and Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Prepayments And Other Receivables And Recoverable From Loan Guarantee [Abstract] | |
Schedule of prepayments and other receivables | December 31, March 31, 2021 2022 Value added tax recoverable $ 7,144,712 $ 8,332,545 Prepayments to suppliers 4,663,431 5,060,156 Deposits 75,179 76,152 Staff advances 122,531 187,548 Prepaid operating expenses 683,648 758,411 Others 64,489 108,256 12,753,990 14,523,068 Less: Allowance for doubtful accounts (7,000 ) (7,000 ) $ 12,746,990 $ 14,516,068 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | December 31, March 31, Buildings $ 48,418,782 $ 48,566,742 Leasehold Improvements 5,543,792 5,593,831 Machinery and equipment 58,899,248 59,488,872 Office equipment 1,200,758 1,229,557 Motor vehicles 486,570 487,644 114,549,150 115,366,646 Impairment (9,194,132 ) (9,213,494 ) Accumulated depreciation (15,312,245 ) (17,620,341 ) Carrying amount $ 90,042,773 $ 88,532,811 |
Construction in Progress (Table
Construction in Progress (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Construction in Progress [Abstract] | |
Schedule of construction in progress | December 31, March 31, 2021 2022 Construction in progress $ 21,619,522 $ 22,277,466 Prepayment for acquisition of property, plant and equipment 5,723,570 6,132,827 Carrying amount $ 27,343,092 $ 28,410,293 |
Non-Marketable Equity Securit_2
Non-Marketable Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Non-Marketable Equity Securities [Abstract] | |
Schedule of non-marketable equity securities | December 31, March 31, Cost $ 1,416,185 $ 1,419,312 Impairment (703,255 ) (704,808 ) Carrying amount $ 712,930 $ 714,504 |
Lease (Tables)
Lease (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Lease [Abstract] | |
Schedule of prepaid land use rights | Prepaid land lease payments Balance as of January 1, 2021 $ 7,500,780 Addition for the year 6,188,764 Amortization charge for the year (189,044 ) Foreign exchange adjustment 296,730 Balance as of December 31, 2021 13,797,230 Amortization charge for the period (89,718 ) Foreign exchange adjustment 30,359 Balance as of March 31, 2022 $ 13,737,871 |
Schedule of net investment in sales-type leases | December 31, March 31, 2021 2022 Total future minimum lease payments receivable $ 1,737,817 1,587,106 Less: unearned income, representing interest (108,773 ) (79,911 ) Present value of minimum lease payments receivables 1,629,044 1,507,195 Less: Current portion (790,516 ) (792,262 ) Non-current portion $ 838,528 714,933 |
Schedule of future minimum lease payments receivable for sales type leases | Fiscal years ending Total Minimum Amortization Income Net Investment in Sales Type Leases Remainder of 2022 $ 710,287 $ 56,764 $ 653,523 2023 685,055 22,568 662,487 2024 191,764 579 191,185 2025 - - - 2026 - - - Thereafter - - - 1,587,106 79,911 1,507,195 |
Schedule of operating lease expenses | March 31, March 31, Operating lease cost – straight line $ 11,321 $ 212,691 Total lease expense $ 11,321 $ 212,691 |
Schedule of maturities of lease liabilities | Operating leases Remainder of 2022 $ 737,297 2023 770,767 2024 41,235 2025 41,859 2026 37,472 Thereafter - Total undiscounted cash flows 1,628,630 Less: imputed interest (79,666 ) Present value of lease liabilities $ 1,548,964 |
Schedule of lease term and discount rate | December 31, March 31, Weighted-average remaining lease term Land use rights 38.9 38.7 Operating leases 2.32 2.32 Weighted-average discount rate Land use rights Nil Nil Operating leases 5.88 % 5.39 % |
Schedule of supplemental cash flow | March 31, March 31, Operating cash outflows from operating assets $ 135,379 $ 32,451 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | December 31, March 31, Computer software at cost $ 108,560 $ 108,801 Sewage discharge permit* 1,915,740 1,919,970 2,024,300 2,028,771 Accumulated amortization (62,561 ) (194,420 ) $ 1,961,739 $ 1,834,351 |
Schedule of finite-lived intangible assets | Remainder of 2022 $ 396,837 2023 527,641 2024 526,166 2025 351,785 2026 8,350 Thereafter 23,572 Total $ 1,834,351 |
Acquisition of Subsidiaries (Ta
Acquisition of Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of aggregate fair values of the assets acquired and liabilities | Cash and bank $ 7,323,654 Debts product 3,144 Trade and bills receivable, net 37,759,688 Inventories 13,616,922 Prepayments and other receivables 1,384,029 Income tax recoverable 47,138 Amount due from trustee 11,788,931 Property, plant and equipment, net 21,190,890 Construction in progress 2,502,757 Intangible assets, net 1,957,187 Prepaid land use rights, non- current 6,276,898 Leased assets, net 48,394 Deferred tax assets 1,715,998 Short term bank loan (8,802,402 ) Other short term loans – CBAK Power (20,597,522 ) Trade accounts and bills payable (38,044,776 ) Accrued expenses and other payables (7,439,338 ) Deferred government grants (290,794 ) Land appreciation tax (464,162 ) Deferred tax liabilities (333,824 ) NAV 29,642,812 Less: Waiver of dividend payable 1,250,181 Total NAV acquired 30,892,993 Non-controlling interest (24.43%) (7,547,158 ) Goodwill 1,606,518 Total identifiable net assets $ 24,952,353 |
Schedule of components of the consideration | RMB USD Cash consideration for 60% registered equity interest (representing 54.39% of paid-up capital) of Hitrans from Meidu Graphene 118,000,000 18,547,918 Cash consideration for 21.56% registered equity interest (representing 21.18% of paid-up capital) of Hitrans from Hitrans management 40,744,376 6,404,435 Total Purchase Consideration 158,744,376 24,952,353 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of the movement of the goodwill | Balance as of January 1, 2021 $ - Acquisition of Hitrans 1,606,518 Foreign exchange adjustment 38,714 Balance as of January 1, 2022 1,645,232 Foreign exchange adjustment 5,397 Balance as of March 31, 2022 $ 1,650,629 |
Trade and Bills Payable (Tables
Trade and Bills Payable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Trade and Bills Payable [Abstract] | |
Schedule of trade and bills payable | December 31, March 31, 2021 2022 Trade accounts payable $ 40,352,638 $ 46,550,602 Bills payable – Bank acceptance bills 25,023,574 32,719,399 $ 65,376,212 $ 79,270,001 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of bank borrowings | December 31, March 31, 2021 2022 Short-term bank borrowings $ 8,811,820 $ 14,674,721 |
Schedule of facilities were also secured by the company’s assets | December 31, March 31, 2021 2022 Pledged deposits (note 2) $ 18,996,749 $ 25,141,517 Bills receivables (note 3) 4,446,553 5,041,978 Right-of-use assets (note 9) 6,268,473 6,236,789 Buildings 8,565,837 8,494,371 $ 38,277,612 $ 44,914,655 |
Schedule of other short-term loans | December 31, March 31, Note 2021 2022 Advance from related parties – Mr. Xiangqian Li, the Company’s Former CEO (a) $ 100,000 $ 100,000 – Mr. Yunfei Li (b) 153,300 153,639 – Shareholders (c) 94,971 95,180 – Mr. Junnan Ye (Note 11) 3,933,848 - 4,282,119 348,819 Advances from unrelated third party – Mr. Wenwu Yu (d) 17,282 17,320 – Ms. Longqian Peng (d) 301,044 301,709 – Suzhou Zhengyuanwei Needle Ce Co., Ltd (e) 78,677 78,851 397,003 397,880 $ 4,679,122 $ 746,699 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses and Other Payables [Abstract] | |
Schedule of accrued expenses and other payables | December 31, March 31, 2021 2022 Construction costs payable $ 2,036,008 $ 1,529,170 Equipment purchase payable 8,697,637 8,079,179 Liquidated damages* 1,210,119 1,210,119 Accrued staff costs 2,924,105 2,942,699 Customer deposits 1,420,414 4,671,400 Deferred revenue 784,000 784,000 Accrued expenses 4,161,548 3,601,292 Dividend payable to non-controlling interest 1,444,737 1,446,583 Other payables 285,132 212,867 $ 22,963,700 $ 24,477,309 * On August 15, 2006, the SEC declared effective a post-effective amendment that the Company had filed on August 4, 2006, terminating the effectiveness of a resale registration statement on Form SB-2 that had been filed pursuant to a registration rights agreement with certain shareholders to register the resale of shares held by those shareholders. The Company subsequently filed Form S-1 for these shareholders. On December 8, 2006, the Company filed its Annual Report on Form 10-K for the year ended September 30, 2006 (the “2006 Form 10-K”). After the filing of the 2006 Form 10-K, the Company’s previously filed registration statement on Form S-1 was no longer available for resale by the selling shareholders whose shares were included in such Form S-1. Under the registration rights agreement, those selling shareholders became eligible for liquidated damages from the Company relating to the above two events totaling approximately $1,051,000. As of December 31, 2019 and 2020, no liquidated damages relating to both events have been paid. |
Balances and Transactions Wit_2
Balances and Transactions With Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of principal related parties with company transactions | Name of Entity or Individual Relationship with the Company New Era Group Zhejiang New Energy Materials Co., Ltd. Shareholder of company’s subsidiary Shenzhen Baijun Technology Co., Ltd Shareholder of company’s subsidiary Zhengzhou BAK Battery Co., Ltd Note a Zhengzhou BAK New Energy Technology Co., Ltd Note b Zhengzhou BAK Electronics Co., Ltd Note c Shenzhen BAK Battery Co., Ltd Former subsidiary and refer to Note d Shenzhen BAK Power Battery Co., Ltd Former subsidiary and refer to Note d Hangzhou Juzhong Daxin Asset Management Co., Ltd Note e |
Schedule of related party transactions | For the 2021 2022 Purchase of finished goods from Zhengzhou BAK Battery Co., Ltd $ 1,259,309 $ 5,164,433 Sales of finished goods and raw materials to Zhengzhou BAK Battery Co., Ltd 108,290 25,823,532 Sales of finished goods and raw materials to Zhengzhou BAK Electronics Co., Ltd 412,353 - Sales of finished goods and raw materials to Shenzhen BAK Power Battery Co., Ltd - 112,468 |
Schedule of receivables from former subsidiary | December 31, March 31, Receivables from Shenzhen BAK Power Battery Co., Ltd $ 2,263,955 $ 1,134,585 |
Schedule of amount due from non-controlling interest | December 31, March 31, Shenzhen Baijun Technology Co., Ltd Current $ 125,883 $ 126,161 Non-current 62,941 63,081 $ 188,824 $ 189,242 |
Schedule of amount due from related parties | December 31, March 31, Hangzhou Juzhong Daxin Asset Management Co., Ltd (Note 11) $ 472,061 $ 473,104 |
Schedule of other balances due from related parties | December 31, March 31, Trade receivable, net – Zhengzhou BAK Battery Co., Ltd. (i) $ 14,583,061 $ 12,963,529 Trade receivable, net – Zhengzhou BAK New Energy Technology Co., Ltd. (ii) $ 459,714 $ 173,471 Trade payable, net – Zhengzhou BAK Battery Co., Ltd $ (572,768 ) $ (3,057,449 ) Dividend payable to non-controlling interest of Hitrans $ (1,444,737 ) $ (1,446,583 ) |
Schedule of payables to former subsidiaries | December 31, March 31, Payables to Shenzhen BAK Power Battery Co., Ltd (326,507 ) (325,624 ) $ (326,507 ) (325,624 ) |
Deferred Government Grants (Tab
Deferred Government Grants (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Long Term Payables [Abstract] | |
Schedule of deferred government grants | December 31, March 31, 2021 2022 Total government grants $ 10,023,677 $ 9,473,191 Less: Current portion (3,834,481 ) (2,270,463 ) Non-current portion $ 6,189,196 $ 7,202,728 |
Product Warranty Provisions (Ta
Product Warranty Provisions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Schedule of accrued warranty activity | December 31, March 31, Balance at beginning of year $ 1,991,605 $ 2,028,266 Warranty costs incurred (34,439 ) (9,419 ) Provision for the year 16,995 4,344 Foreign exchange adjustment 54,105 4,473 Balance at end of year 2,028,266 2,027,664 Less: Current portion (127,837 ) (104,122 ) Non-current portion $ 1,900,429 $ 1,923,542 |
Income Taxes, Deferred Tax As_2
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes expenses (credit) | Three months ended 2021 2022 PRC income tax Current income tax $ - $ - Deferred income tax credit - 93,546 $ - $ 93,546 |
Schedule of provision for income taxes at statutory income tax rate | Three months ended 2021 2022 Income before income taxes $ 29,608,168 $ 586,957 United States federal corporate income tax rate 21 % 21 % Income tax expenses (credit) computed at United States statutory corporate income tax rate 6,217,715 123,261 Reconciling items: Rate differential for PRC earnings 69,004 (25,584 ) Tax effect of entity at preferential tax rate - (9,972 ) Non-taxable (income) expenses (5,886,790 ) (264,922 ) Share based payments 31,252 7,304 Valuation allowance on deferred tax assets (431,181 ) 76,367 Income tax credit $ - $ (93,546 ) |
Schedule of deferred tax assets and liabilities | December 31, March 31, Deferred tax assets Trade receivable $ 2,044,877 $ 2,116,363 Inventories 624,372 662,511 Property, plant and equipment 1,671,628 1,543,877 Non-marketable equity securities 175,813 176,202 Intangible assets 82,174 99,819 Accrued expenses, payroll and others 286,258 154,923 Provision for product warranty 507,067 506,916 Net operating loss carried forward 32,624,714 33,312,212 Valuation allowance (36,278,909 ) (36,751,234 ) Deferred tax assets, non-current $ 1,737,994 $ 1,821,589 Deferred tax liabilities, non-current Long-lived assets arising from acquisitions $ 334,181 $ 321,025 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Compensation (Tables) [Line Items] | |
Schedule of the stock option activity | Number of Average Aggregate Weighted Average Outstanding at January 1, 2022 2,750,002 $ 1,.96 $ - 5.7 Exercisable at January 1, 2022 - - $ - - Granted - - - - Exercised - - - - Forfeited - - - - Outstanding at March 31, 2022 2,750,002 $ 1.96 $ - 5.45 Exercisable at March 31, 2022 - $ - $ - - |
Restricted shares granted on August 23, 2019 [Member] | |
Share-based Compensation (Tables) [Line Items] | |
Schedule of non-vested restricted shares | Non-vested share units as of January 1, 2022 277,173 Vested (269,175 ) Forfeited (7,998 ) Non-vested share units as of March 31, 2022 - |
Restricted Share Granted on October 23, 2020 [Member] | |
Share-based Compensation (Tables) [Line Items] | |
Schedule of non-vested restricted shares | Non-vested share units as of January 1, 2022 49,999 Granted - Vested - Non-vested share units as of March 31, 2022 49,999 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of (loss) income per share | Three months ended 2021 2022 Net income $ 29,608,168 $ 680,503 Less: Net loss (income) attributable to non-controlling interests 1,114 (236,050 ) Net income attributable to shareholders of CBAK Energy Technology, Inc. 29,609,282 444,4 Weighted average shares outstanding – basic 84,283,605 88,713,841 Dilutive unvested restricted stock 650,308 21,116 Weighted average shares outstanding – diluted (note) 84,933,913 88,734,957 Income per share of common stock Basic $ 0.35 $ 0.01 Diluted $ 0.35 $ 0.01 |
Warrants (Tables)
Warrants (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Warrants [Abstract] | |
Schedule of the warrants issued 2020 financing | Appraisal Date December 31, December 31, Market price per share (USD/share) $ 1.56 $ 1.56 Exercise price (USD/price) 6.46 6.475 Risk free rate 0.7 % 0.8 % Dividend yield 0.0 % 0.0 % Expected term/ Contractual life (years) 1.9 years 2.4 years Expected volatility 140.3 % 132.3 % Appraisal Date March 31, March 31, Market price per share (USD/share) $ 1.28 $ 1.28 Exercise price (USD/price) 6.46 6.475 Risk free rate 2.11 % 2.37 % Dividend yield 0.0 % 0.0 % Expected term/ Contractual life (years) 1.69 years 2.19 years Expected volatility 143.68 % 135.19 % |
Schedule of the warrants issued 2021 financing | Warrants holder Investor Placement Agent Appraisal Date Series A1 December31, Market price per share (USD/share) 1.56 1.56 Exercise price (USD/price) 7.67 9.204 Risk free rate 0.9 % 0.9 % Dividend yield 0.0 % 0.0 % Expected term/ Contractual life (years) 2.6 years 2.6 years Expected volatility 129.2 % 129.2 % Warrants holder Investor Placement Agent Appraisal Date Series A1 March 31, 2022 Market price per share (USD/share) 1.28 1.28 Exercise price (USD/price) 7.67 9.204 Risk free rate 2.4 % 2.4 % Dividend yield 0.0 % 0.0 % Expected term/ Contractual life (years) 2.4 years 2.36 years Expected volatility 133.61 % 133.61 % |
Schedule of warrants liability measured at fair value on a recurring basis using Level 3 inputs | December 31, March 31, Balance at the beginning of the year $ 17,783,000 $ 5,846,000 Warrants issued to institution investors 47,519,000 - Warrants issued to placement agent 2,346,000 - Warrants redeemed - - Fair value change of the issued warrants included in earnings (61,802,000 ) (1,632,000 ) Balance at end of year 5,846,000 4,214,000 |
Schedule of the warrant activity | Number of Average Weighted Average Outstanding at January 1, 2022 9,092,499 $ 7.19 2.33 Exercisable at January 1, 2022 9,092,499 $ 7.19 2.33 Granted - - - Exercised / surrendered - - - Expired - - - Outstanding at March 31, 2022 9,092,499 7.19 2.08 Exercisable at March 31, 2022 9,092,499 7.19 2.08 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of capital commitments | December 31, March 31, For construction of buildings $ 1,199,606 $ 1,582,346 For purchases of equipment 12,867,786 13,093,091 Capital injection 159,905,519 157,296,525 $ 173,972,911 $ 171,971,962 |
Concentrations and Credit Risk
Concentrations and Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of customers net revenue | Three months ended March 31, Sales of finished goods and raw materials 2021 2022 Customer A $ 2,903,261 30.83 % $ * * Customer B 1,789,045 19.00 % * * Customer C 1,348,200 14.32 % * * Customer D * * 24,102,164 30.05 % Zhengzhou BAK Battery Co., Ltd (note 16) * * 25,823,532 32.20 % * Comprised less than 10% of net revenue for the respective period. |
Schedule of customers net trade receivable | December 31, March 31, Customer D $ 14,443,551 32.76 % $ 15,641,986 37.73 % Zhengzhou BAK Battery Co., Ltd (note 16) 14,583,061 33.08 % 12,963,529 31.27 % * Comprised less than 10% of net accounts receivable for the respective period. |
Schedule of suppliers net purchase | Three months ended March 31, 2021 2022 Supplier A $ 659,513 10.21 % $ * * Supplier B * * 20,631,815 25.30 % Supplier C * * 19,332,674 23.71 % Zhengzhou BAK Battery Co., Ltd (note 16) 1,259,309 19.49 % * * * Comprised less than 10% of net purchase for the respective period. |
Schedule of suppliers trade payable | December 31, March 31, Supplier B $ 20,592,979 51.03 % $ 18,430,728 39.59 % Supplier C 6,837,722 16.94 % 8,705,648 18.70 % |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of operating decision maker evaluates performance based on each reporting segment | For the three months ended March 31, 2021 CBAT Corporate unallocated (note) Consolidated Net revenues $ 9,416,049 $ - $ 9,416,049 Cost of revenues (7,576,620 ) - (7,576,620 ) Gross profit 1,839,429 - 1,839,429 Total operating expenses (1,319,248 ) (548,063 ) (1,867,311 ) Operating income (loss) 520,181 (548,063 ) (27,882 ) Finance (expenses) income, net (13,443 ) 5,845 (7,598 ) Other income, net 1,217,648 28,426,000 29,643,648 Income tax (expense) credit - - - Net income 1,724,386 27,883,782 29,608,168 For the three months ended March 31, 2022 CBAT Hitrans Corporate unallocated (note) Consolidated Net revenues $ 15,020,686 $ 65,175,612 $ - $ 80,196,298 Cost of revenues (14,037,762 ) (60,842,182 ) - (74,879,944 ) Gross profit 982,924 4,333,430 - 5,316,354 Total operating expenses (3,108,736 ) (3,137,747 ) (405,132 ) (6,651,615 ) Operating (loss) income (2,125,812 ) 1,195,683 (405,132 ) (1,335,261 ) Finance income (expenses), net 107,870 (102,708 ) (148 ) 5,014 Other income, net 503,156 (217,952 ) 1,632,000 1,917,204 Income tax credit - 93,546 - 93,546 Net income (1,514,786 ) 968,569 1,226,720 680,503 As of March 31, 2022 Identifiable long-lived assets 101,091,666 31,423,660 - 132,515,326 Total assets 178,351,609 99,826,945 616,667 278,795,221 |
Schedule of net revenues from manufacture of batteries by products | Three months ended 2021 2022 High power lithium batteries used in: Electric vehicles $ 100,976 $ 309 Light electric vehicles 34,104 88,764 Uninterruptable supplies 8,763,583 14,931,613 Trading of raw materials used in lithium batteries 517,386 - 9,416,049 15,020,686 Materials used in manufacturing of lithium batteries Cathode - 28,362,877 Precursor - 36,812,735 - 65,175,612 Total consolidated revenue $ 9,416,049 $ 80,196,298 |
Schedule of net revenues from manufacture of batteries by geographical areas | Three months ended 2021 2022 Mainland China $ 7,625,793 71,996,013 Europe 1,789,045 8,134,906 Others 1,211 65,379 Total $ 9,416,049 $ 80,196,298 |
Principal Activities, Basis o_2
Principal Activities, Basis of Presentation and Organization (Details) | Oct. 09, 2021 | Feb. 08, 2021 | Dec. 08, 2020 | Nov. 09, 2020USD ($) | Nov. 09, 2020CNY (¥) | Aug. 06, 2020USD ($) | Aug. 06, 2020CNY (¥) | Oct. 10, 2019 | Jul. 06, 2018 | May 04, 2018USD ($) | Jun. 30, 2015shares | Nov. 30, 2007shares | Oct. 01, 2007USD ($) | Sep. 30, 2006shares | Apr. 21, 2021USD ($) | Apr. 21, 2021CNY (¥) | Jan. 20, 2005USD ($)shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Aug. 04, 2021USD ($) | Aug. 04, 2021CNY (¥) | Nov. 09, 2020CNY (¥) | Aug. 06, 2020CNY (¥) | Jul. 31, 2020USD ($) | Nov. 21, 2019USD ($) | Oct. 29, 2019USD ($) | Aug. 05, 2019USD ($) | May 04, 2018CNY (¥) | Jan. 10, 2018USD ($) | Dec. 27, 2013USD ($) | Aug. 14, 2013USD ($) |
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Issued an aggregate shares (in Shares) | shares | 1,720,087 | ||||||||||||||||||||||||||||||
Gross proceeds of common stock | $ 17,000,000 | $ 15,630,011 | |||||||||||||||||||||||||||||
Shares placed in escrow (in Shares) | shares | 435,910 | ||||||||||||||||||||||||||||||
Description of terms of shares places in escrow | Pursuant to the Escrow Agreement, 50% of the escrowed shares were to be released to the investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2005 was not at least $12,000,000, and the remaining 50% was to be released to investors in the private placement if audited net income of the Company for the fiscal year ended September 30, 2006 was not at least $27,000,000. If the audited net income of the Company for the fiscal years ended September 30, 2005 and 2006 reached the above-mentioned targets, the 435,910 shares would be released to Mr. Li in the amount of 50% upon reaching the 2005 target and the remaining 50% upon reaching the 2006 target. | ||||||||||||||||||||||||||||||
Shares released from escrow (in Shares) | shares | 217,955 | 217,955 | 217,955 | ||||||||||||||||||||||||||||
Adjustments of additional paid in capital | $ 7,955,358 | ||||||||||||||||||||||||||||||
Common stock equivalent percentage | 90.00% | 50.00% | 90.00% | ||||||||||||||||||||||||||||
Aggregate settlement payments shares (in Shares) | shares | 73,749 | ||||||||||||||||||||||||||||||
Registered capital of subsidiary | $ 1,500,000 | $ 4,700,000 | ¥ 30,000,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||
Registered capital increased | $ 100,000,000 | $ 50,000,000 | |||||||||||||||||||||||||||||
Equity interest rate | 10.00% | ||||||||||||||||||||||||||||||
Company contribution | $ 23,519,880 | ||||||||||||||||||||||||||||||
Contributed amount | $ 5,200,000 | ¥ 33,416,000 | |||||||||||||||||||||||||||||
Investment amount paid | $ 1,400,000 | ¥ 9,000,000 | |||||||||||||||||||||||||||||
Investment acquire percentage | 9.74% | 9.74% | |||||||||||||||||||||||||||||
Guangdong Meidu Hitrans Resources, description | (“Guangdong Hitrans”) was established as a 80% owned subsidiary of Hitrans with a registered capital of RMB10 million (approximately $1.6million). The remaining 20% registered equity interest was held by Shenzhen Baijun Technology Co., Ltd. Pursuant to Guangdong Hitrans’s articles of association, each shareholder is entitled to the right of the profit distribution or responsible for the loss according to its proportion to the capital contribution. Pursuant to Guangdong Hitrans’s articles of association and relevant PRC regulations, Hitrans was required to contribute the capital to Guangdong Hitrans on or before December 30, 2038. Up to the date of this report, Hitrans has contributed RMB1.72 million (approximately $0.3 million), and the other shareholder has contributed RMB0.25 million (approximately $0.04 million) to Guangdong Hitrans through injection of a series of cash. Guangdong Hitrans was established under the laws of the People’s Republic of China as a limited liability company on July 6, 2018 with a registered capital RMB10 million (approximately $1.5 million). Guangdong Hitrans is based in Dongguan, Guangdong Province, and is principally engaged in the business of resource recycling, waste processing, and R&D, manufacturing and sales of battery materials. The Company plan to dissolve Guangdong Hitrans in 2022. On October 9, 2021, Shaoxing Haisheng International Trading Co., Ltd. (“Haisheng”) was established as a wholly owned subsidiary of Hitrans with a register capital of RMB5 million (approximately $0.8 million). Pursuant to Haisheng’s articles of association and relevant PRC regulations, Hitrans was required to contribute the capital to Haisheng on or before May 31, 2025. Up to the date of this report, Hitrans has contributed RMB3.5 million (approximately $0.5 million) to Haisheng. The Company’s condensed consolidated financial statements have been prepared under US GAAP. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company and its subsidiaries, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liability established in the PRC or Hong Kong. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company’s subsidiaries to present them in conformity with US GAAP. After the disposal of BAK International Limited and its subsidiaries, namely Shenzhen BAK, Shenzhen BAK Power Battery Co., Ltd (formerly BAK Battery (Shenzhen) Co., Ltd.) (“BAK Shenzhen”), BAK International (Tianjin) Ltd. (“BAK Tianjin”), Tianjin Chenhao Technological Development Limited (a subsidiary of BAK Tianjin established on May 8, 2014, “Tianjin Chenhao”), BAK Battery Canada Ltd. (“BAK Canada”), BAK Europe GmbH (“BAK Europe”) and BAK Telecom India Private Limited (“BAK India”), effective on June 30, 2014, and as of December 31, 2021, the Company’s subsidiaries consisted of: i) China BAK Asia Holdings Limited (“BAK Asia”), a wholly owned limited liability company incorporated in Hong Kong on July 9, 2013; ii) Dalian CBAK Trading Co., Ltd. (“CBAK Trading”), a wholly owned limited company established on August 14, 2013 in the PRC; iii) Dalian CBAK Power Battery Co., Ltd. (“CBAK Power”), a wholly owned limited liability company established on December 27, 2013 in the PRC; iv) CBAK New Energy (Suzhou) Co., Ltd. (“CBAK Suzhou”), a 90% owned limited liability company established on May 4, 2018 in the PRC; v) Dalian CBAK Energy Technology Co., Ltd (“CBAK Energy”), a wholly owned limited liability company established on November 21, 2019 in the PRC; (vi) BAK Asia Investments Limited (“BAK Investments”), a wholly owned limited liability company incorporated in Hong Kong acquired on July 14, 2020; (vii) CBAK New Energy (Nanjing) Co., Ltd. (“CBAK Nanjing”), a wholly owned limited liability company established on July 31, 2020 in the PRC; (viii) Nanjing CBAK New Energy Technology Co., Ltd, (“Nanjing CBAK”), a wholly owned limited liability company established on August 6, 2020 in the PRC; (ix) Nanjing Daxin New Energy Automobile Industry Co., Ltd (“Nanjing Daxin”), a wholly owned limited liability company established on November 9, 2020; (x) Daxin New Energy Automobile Technology ( Jiangsu) Co., Ltd (“Jiangsu Daxin”), a wholly owned limited liability company established on August 4, 2021 in the PRC; (xi) Zhejiang Hitrans Lithium Battery Technology Co., Ltd (“Hitrans”), a 81.56% registered equity interests (representing 75.57% of paid-up capital) owned limited liability company established on December 16, 2015 in the PRC; (xii) Guangdong Meidu Hitrans Resources Recycling Technology Co., Ltd., a 65.25% owned limited liability company established on July 6, 2018 in the PRC and (xiii) Shaoxing Haisheng International Trading Co., Ltd. | ||||||||||||||||||||||||||||||
Shaoxing Haisheng International Trading, description | (“Haisheng”) was established as a wholly owned subsidiary of Hitrans with a register capital of RMB5 million (approximately $0.8 million). Pursuant to Haisheng’s articles of association and relevant PRC regulations, Hitrans was required to contribute the capital to Haisheng on or before May 31, 2025. Up to the date of this report, Hitrans has contributed RMB3.5 million (approximately $0.5 million) to Haisheng. | ||||||||||||||||||||||||||||||
Company contribution related, description | , Ltd. | ||||||||||||||||||||||||||||||
Bank loans | $ 14,600,000 | ||||||||||||||||||||||||||||||
Other current liabilities | $ 107,900,000 | ||||||||||||||||||||||||||||||
Cbak Trading [Member] | |||||||||||||||||||||||||||||||
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Registered capital increased | $ 5,000,000 | ||||||||||||||||||||||||||||||
CBAK Power [Member] | |||||||||||||||||||||||||||||||
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Registered capital of subsidiary | $ 30,000,000 | ||||||||||||||||||||||||||||||
Registered capital increased | $ 60,000,000 | ||||||||||||||||||||||||||||||
Cash | $ 2,435,000 | ||||||||||||||||||||||||||||||
Ownership percentage of equity method investment | 90.00% | 90.00% | |||||||||||||||||||||||||||||
CBAK Energy [Member] | |||||||||||||||||||||||||||||||
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Registered capital increased | $ 50,000,000 | ||||||||||||||||||||||||||||||
CBAK New Energy Technology Co Ltd [Member] | |||||||||||||||||||||||||||||||
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Registered capital of subsidiary | $ 110,000,000 | ¥ 700,000,000 | |||||||||||||||||||||||||||||
Contributed amount | $ 55,600,000 | ¥ 352,538,138 | |||||||||||||||||||||||||||||
Nanjing Daxin New Energy Automobile Industry Co Ltd [Member] | |||||||||||||||||||||||||||||||
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Registered capital of subsidiary | $ 7,900,000 | ¥ 50,000,000 | |||||||||||||||||||||||||||||
Cbak Trading [Member] | |||||||||||||||||||||||||||||||
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Registered capital of subsidiary | $ 500,000 | ||||||||||||||||||||||||||||||
Investor [Member] | |||||||||||||||||||||||||||||||
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Securities purchase agreement, description | the Company entered into another securities purchase agreement with the same investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 8,939,976 shares of common stock of the Company at a per share purchase price of $7.83. In addition, the Company issued to the investors (i) in a concurrent private placement, the Series A-1 warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.67 and exercisable for 42 months from the date of issuance; (ii) in the registered direct offering, the Series B warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.83 and exercisable for 90 days from the date of issuance; and (iii) in the registered direct offering, the Series A-2 warrants to purchase up to 2,234,992 shares of common stock, at a per share exercise price of $7.67 and exercisable for 45 months from the date of issuance. The Company received gross proceeds of approximately $70 million from the registered direct offering and the concurrent private placement, before deducting fees to the placement agent and other estimated offering expenses of $5.0 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 446,999 shares of the Company’s common stock at an exercise price of $9.204 per share exercisable for 36 months after 6 months from the issuance. | the Company entered into a securities purchase agreement with certain institutional investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 9,489,800 shares of common stock of the Company at a per share purchase price of $5.18, and warrants to purchase an aggregate of 3,795,920 shares of common stock of the Company at an exercise price of $6.46 per share exercisable for 36 months from the date of issuance, for gross proceeds of approximately $49.16 million, before deducting fees to the placement agent and other estimated offering expenses of $3.81 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 379,592 shares of the Company’s common stock at an exercise price of $6.475 per share exercisable for 36 months after 6 months from the issuance. | |||||||||||||||||||||||||||||
Li Settlement Agreement [Member] | |||||||||||||||||||||||||||||||
Principal Activities, Basis of Presentation and Organization (Details) [Line Items] | |||||||||||||||||||||||||||||||
Shares released from escrow (in Shares) | shares | 217,955 |
Pledged Deposits (Details) - Sc
Pledged Deposits (Details) - Schedule of pledged deposits - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Pledged deposits with banks for: | ||
Bills payable (Note 13) | $ 25,141,517 | $ 18,996,749 |
Others | 580 | |
Total | $ 25,142,097 | $ 18,996,749 |
Trade and Bills Receivable, n_3
Trade and Bills Receivable, net (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Trade And Bills Receivable Net [Abstract] | ||
Trade and bills receivable | $ 1,947,547 | $ 1,944,034 |
Trade and Bills Receivable, n_4
Trade and Bills Receivable, net (Details) - Schedule of trade and bills receivable - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of trade and bills receivable [Abstract] | ||
Trade accounts receivable | $ 46,364,398 | $ 48,707,457 |
Less: Allowance for doubtful accounts | (4,904,450) | (4,618,269) |
Trade receivable, net | 41,459,948 | 44,089,188 |
Bills receivable | 8,805,836 | 5,817,941 |
Trade and bills receivable, net | $ 50,265,784 | $ 49,907,129 |
Trade and Bills Receivable, n_5
Trade and Bills Receivable, net (Details) - Schedule of analysis of the allowance for doubtful accounts - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of analysis of the allowance for doubtful accounts [Abstract] | ||
Balance at beginning of period | $ 4,618,269 | $ 5,266,828 |
Provision for the year | 322,928 | |
Reversal - recoveries by cash | (51,485) | (154,061) |
Charged to consolidated statements of operations and comprehensive (loss) income | 271,443 | (154,061) |
Foreign exchange adjustment | 14,738 | (17,819) |
Balance at end of period | $ 4,904,450 | $ 5,094,948 |
Inventories (Details)
Inventories (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | ||
Inventory write-down | $ 406,152 | $ 233,305 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 15,484,667 | $ 11,323,638 |
Work in progress | 9,428,354 | 8,093,002 |
Finished goods | 16,958,128 | 10,716,700 |
Inventories, total | $ 41,871,149 | $ 30,133,340 |
Prepayments and Other Receiva_3
Prepayments and Other Receivables (Details) - Schedule of prepayments and other receivables - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of prepayments and other receivables [Abstract] | ||
Value added tax recoverable | $ 8,332,545 | $ 7,144,712 |
Prepayments to suppliers | 5,060,156 | 4,663,431 |
Deposits | 76,152 | 75,179 |
Staff advances | 187,548 | 122,531 |
Prepaid operating expenses | 758,411 | 683,648 |
Others | 108,256 | 64,489 |
Prepayments and other receivables, gross | 14,523,068 | 12,753,990 |
Less: Allowance for doubtful accounts | (7,000) | (7,000) |
Prepayments and other receivables, net | $ 14,516,068 | $ 12,746,990 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Incurred depreciation | $ 2,271,267 | $ 698,618 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net (Details) - Schedule of property, plant and equipment - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 115,366,646 | $ 114,549,150 |
Impairment | (9,213,494) | (9,194,132) |
Accumulated depreciation | (17,620,341) | (15,312,245) |
Carrying amount | 88,532,811 | 90,042,773 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 48,566,742 | 48,418,782 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 5,593,831 | 5,543,792 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 59,488,872 | 58,899,248 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,229,557 | 1,200,758 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 487,644 | $ 486,570 |
Construction in Progress (Detai
Construction in Progress (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Construction in Progress [Abstract] | ||
Interest costs capitalized | $ 213,583 |
Construction in Progress (Det_2
Construction in Progress (Details) - Schedule of construction in progress - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of construction in progress [Abstract] | ||
Construction in progress | $ 22,277,466 | $ 21,619,522 |
Prepayment for acquisition of property, plant and equipment | 6,132,827 | 5,723,570 |
Carrying amount | $ 28,410,293 | $ 27,343,092 |
Non-Marketable Equity Securit_3
Non-Marketable Equity Securities (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 21, 2021USD ($) | Apr. 21, 2021CNY (¥) | Mar. 31, 2022USD ($) | May 04, 2018 | |
Non-Marketable Equity Securities (Details) [Line Items] | ||||
Equity interests percentage | 50.00% | 90.00% | ||
Impairment loss | ||||
CBAK Power [Member] | ||||
Non-Marketable Equity Securities (Details) [Line Items] | ||||
Cash paid | $ 1,400 | ¥ 9,000,000 | ||
Equity interests percentage | 9.74% | 9.74% |
Non-Marketable Equity Securit_4
Non-Marketable Equity Securities (Details) - Schedule of non-marketable equity securities - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of non-marketable equity securities [Abstract] | ||
Cost | $ 1,419,312 | $ 1,416,185 |
Impairment | (704,808) | (703,255) |
Carrying amount | $ 714,504 | $ 712,930 |
Lease (Details)
Lease (Details) | Mar. 01, 2022USD ($) | Mar. 01, 2022CNY (¥) | Dec. 09, 2021 | Jun. 01, 2021USD ($) | Jun. 01, 2021CNY (¥) | Apr. 06, 2021USD ($) | Apr. 06, 2021CNY (¥) | Jan. 14, 2021USD ($) | Jan. 14, 2021CNY (¥) | Apr. 30, 2018USD ($) | Apr. 30, 2018CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Lease (Details) [Line Items] | |||||||||||||
Interest income other | $ 91,833 | ||||||||||||
Lease maturity date | Mar. 1, 2022 | Mar. 1, 2022 | Dec. 9, 2021 | Jun. 1, 2021 | Jun. 1, 2021 | Apr. 6, 2021 | Apr. 6, 2021 | Jan. 14, 2021 | Jan. 14, 2021 | Apr. 30, 2023 | Apr. 30, 2023 | ||
Rental payment per month | $ 2,497 | ¥ 15,840 | $ 43,806 | ¥ 277,778 | $ 15,414 | ¥ 97,743 | $ 11,535 | ¥ 73,143 | $ 2,839 | ¥ 18,000 | |||
Rental payment description | The monthly rental payment is approximately RMB9,905 ($1,562) per month for the first year, RMB10,103 ($1,593) and RMB10,305 ($1,625) per month from the second year and third year, respectively. | ||||||||||||
Increase percentage | 2.00% | 2.00% | |||||||||||
Vehicle [Member] | |||||||||||||
Lease (Details) [Line Items] | |||||||||||||
Interest income other | $ 29,069 | $ 26,637 | |||||||||||
Minimum [Member] | |||||||||||||
Lease (Details) [Line Items] | |||||||||||||
Owners lease period | 36 years | ||||||||||||
Maximum [Member] | |||||||||||||
Lease (Details) [Line Items] | |||||||||||||
Owners lease period | 50 years | ||||||||||||
Nanjing Daxin [Member] | |||||||||||||
Lease (Details) [Line Items] | |||||||||||||
Rental payment per month | 37,548 | 238,095 | |||||||||||
Hitrans [Member] | |||||||||||||
Lease (Details) [Line Items] | |||||||||||||
Rental payment per month | $ 837 | ¥ 5,310 |
Lease (Details) - Schedule of p
Lease (Details) - Schedule of prepaid land use rights - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of prepaid land use rights [Abstract] | ||
Balance at beginning of period | $ 13,797,230 | $ 7,500,780 |
Addition for the year | 6,188,764 | |
Amortization charge for the period | (89,718) | (189,044) |
Foreign exchange adjustment | 30,359 | 296,730 |
Balance at end of period | $ 13,737,871 | $ 13,797,230 |
Lease (Details) - Schedule of n
Lease (Details) - Schedule of net investment in sales-type leases - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of net investment in sales-type leases [Abstract] | ||
Total future minimum lease payments receivable | $ 1,587,106 | $ 1,737,817 |
Less: unearned income, representing interest | (79,911) | (108,773) |
Present value of minimum lease payments receivables | 1,507,195 | 1,629,044 |
Less: Current portion | (792,262) | (790,516) |
Non-current portion | $ 714,933 | $ 838,528 |
Lease (Details) - Schedule of f
Lease (Details) - Schedule of future minimum lease payments receivable for sales type leases | Mar. 31, 2022USD ($) |
Total Minimum Lease Payments to be Received [Member] | |
Lease (Details) - Schedule of future minimum lease payments receivable for sales type leases [Line Items] | |
Remainder of 2022 | $ 710,287 |
2023 | 685,055 |
2024 | 191,764 |
2025 | |
2026 | |
Thereafter | |
Total | 1,587,106 |
Amortization of Unearned Income [Member] | |
Lease (Details) - Schedule of future minimum lease payments receivable for sales type leases [Line Items] | |
Remainder of 2022 | 56,764 |
2023 | 22,568 |
2024 | 579 |
2025 | |
2026 | |
Thereafter | |
Total | 79,911 |
Net Investment in Sales Type Leases [Member] | |
Lease (Details) - Schedule of future minimum lease payments receivable for sales type leases [Line Items] | |
Remainder of 2022 | 653,523 |
2023 | 662,487 |
2024 | 191,185 |
2025 | |
2026 | |
Thereafter | |
Total | $ 1,507,195 |
Lease (Details) - Schedule of o
Lease (Details) - Schedule of operating lease expenses - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of operating lease expenses [Abstract] | ||
Operating lease cost – straight line | $ 212,691 | $ 11,321 |
Total lease expense | $ 212,691 | $ 11,321 |
Lease (Details) - Schedule of m
Lease (Details) - Schedule of maturities of lease liabilities | Mar. 31, 2022USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
Remainder of 2022 | $ 737,297 |
2023 | 770,767 |
2024 | 41,235 |
2025 | 41,859 |
2026 | 37,472 |
Thereafter | |
Total undiscounted cash flows | 1,628,630 |
Less: imputed interest | (79,666) |
Present value of lease liabilities | $ 1,548,964 |
Lease (Details) - Schedule of l
Lease (Details) - Schedule of lease term and discount rate | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Weighted-average remaining lease term | ||
Land use rights | 38 years 8 months 12 days | 38 years 10 months 24 days |
Operating leases | 2 years 3 months 25 days | 2 years 3 months 25 days |
Weighted-average discount rate | ||
Land use rights | ||
Operating leases | 5.39% | 5.88% |
Lease (Details) - Schedule of s
Lease (Details) - Schedule of supplemental cash flow - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of supplemental cash flow [Abstract] | ||
Operating cash outflows from operating assets | $ 32,451 | $ 135,379 |
Intangible Assets, net (Details
Intangible Assets, net (Details) - USD ($) | Jan. 27, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | $ 131,571 | $ 686 | ||
Manufacturing facilities | $ 1,898,675 | |||
Sewage discharge permit | 5 years |
Intangible Assets, net (Detai_2
Intangible Assets, net (Details) - Schedule of intangible assets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of intangible assets [Abstract] | |||
Computer software at cost | $ 108,801 | $ 108,560 | |
Sewage discharge permit | [1] | 1,919,970 | 1,915,740 |
Intangible assets, gross | 2,028,771 | 2,024,300 | |
Accumulated amortization | (194,420) | (62,561) | |
Intangible assets, net | $ 1,834,351 | $ 1,961,739 | |
[1] | The Company has not yet obtained the ownership of sewage discharge permit in its Zhejiang manufacturing facilities with a carrying amount of $1,898,675 as of December 31, 2021. The sewage discharge permit was registered under the name of New Era (note 11). The Company has obtained a five years sewage discharge permit on January 27, 2022. |
Intangible Assets, net (Detai_3
Intangible Assets, net (Details) - Schedule of finite-lived intangible assets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of finite-lived intangible assets [Abstract] | ||
Remainder of 2022 | $ 396,837 | |
2023 | 527,641 | |
2024 | 526,166 | |
2025 | 351,785 | |
2026 | 8,350 | |
Thereafter | 23,572 | |
Total | $ 1,834,351 | $ 1,961,739 |
Acquisition of Subsidiaries (De
Acquisition of Subsidiaries (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Jul. 27, 2021USD ($) | Jul. 27, 2021CNY (¥) | Jul. 23, 2021USD ($) | Jul. 23, 2021CNY (¥) | Jul. 20, 2021USD ($) | Jul. 20, 2021CNY (¥) | Apr. 01, 2021USD ($) | Apr. 01, 2021CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Jan. 29, 2022USD ($) | Jan. 29, 2022CNY (¥) | May 04, 2018 | |
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Ownership percentage | 50.00% | 90.00% | |||||||||||||
Equity Interests capital percentage | 75.57% | 75.57% | |||||||||||||
Registered equity interests | 81.56% | 81.56% | |||||||||||||
Loan agreement | $ 20,600,000 | ||||||||||||||
Remitting value | 20,600,000 | ||||||||||||||
Repayments of loan agreement | 7,410,000 | ¥ 48,000,000 | |||||||||||||
Fixed interest | 150,000 | $ 540,000 | |||||||||||||
Interest incurred | 100,000 | ¥ 900,000 | |||||||||||||
Purchase price (in Dollars) | $ 1,606,518 | ||||||||||||||
Maximum [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Fixed interest (in Yuan Renminbi) | ¥ | 3,500,000 | ||||||||||||||
Minimum [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Fixed interest (in Yuan Renminbi) | ¥ | ¥ 1,000,000 | ||||||||||||||
Juzhong Daxin [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Ownership percentage | 85.00% | 85.00% | |||||||||||||
Equity Interests capital percentage | 54.39% | 54.39% | |||||||||||||
Security deposit paid | $ 3,100,000 | ¥ 20,000,000 | |||||||||||||
Registered equity interests | 60.00% | 60.00% | |||||||||||||
Cash paid | ¥ | ¥ 3,000,000 | ||||||||||||||
Security deposits | $ 1,100,000 | ¥ 7,000,000 | 10,000,000 | ||||||||||||
(in Dollars) | $ 1,600,000 | ||||||||||||||
Acquisition costs | 780,000 | 5,000,000 | |||||||||||||
Compensation expense | $ 780,000 | ¥ 5,000,000 | |||||||||||||
Amount no yet repaid | $ 500,000 | ¥ 3,000,000 | |||||||||||||
Hitrans [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 75.57% | 75.57% | 78.95% | 78.95% | 54.39% | 54.39% | |||||||||
Voting right and right to dividend | 85.00% | 85.00% | |||||||||||||
Ownership of equity interest | 85.00% | 85.00% | |||||||||||||
Acquired equity interest | 85.00% | 85.00% | |||||||||||||
Registered equity interests | 60.00% | 60.00% | |||||||||||||
Repayments of loan agreement | $ 10,860,000 | ¥ 70,000,000 | |||||||||||||
Repaid amount | $ 14,600,000 | 93,000,000 | |||||||||||||
CBAK Power [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 21.18% | 21.18% | |||||||||||||
Acquired equity interest | 81.56% | 81.56% | |||||||||||||
Acquired ownership interest | 60.00% | 60.00% | |||||||||||||
Registered equity interests | 21.56% | 21.56% | |||||||||||||
Cash paid | $ 6,320,000 | ¥ 40,740,000 | |||||||||||||
Loan agreement | ¥ | 131,000,000 | ||||||||||||||
Remitting value | 20,600,000 | 131,000,000 | |||||||||||||
Security deposits | ¥ | 131,000,000 | ||||||||||||||
(in Dollars) | 20,600,000 | ||||||||||||||
Interest rate | 6.00% | ||||||||||||||
CBAK Power [Member] | Maximum [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Capital contribution (in Yuan Renminbi) | ¥ | 11,100,000 | ||||||||||||||
Capital contribution (in Dollars) | 1,700,000 | ||||||||||||||
CBAK Power [Member] | Minimum [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Capital contribution (in Yuan Renminbi) | ¥ | ¥ 400,000 | ||||||||||||||
Capital contribution (in Dollars) | $ 60,000 | ||||||||||||||
Zhejiang Meidu Graphene Technology Co., Ltd [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 54.39% | 54.39% | |||||||||||||
Acquired ownership by cash | $ 18,300,000 | ¥ 118,000,000 | |||||||||||||
Registered equity interests | 21.56% | 21.56% | |||||||||||||
Hitrans’s Management [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 21.18% | 21.18% | 24.56% | 24.56% | |||||||||||
Registered equity interests | 25.00% | 25.00% | |||||||||||||
Cash paid | $ 6,320,000 | ¥ 40,740,000 | |||||||||||||
Mr. Haijun Wu [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 2.46% | 2.46% | |||||||||||||
Registered equity interests | 2.50% | 2.50% | |||||||||||||
New Era Group Zhejiang New Energy Materials Co., Ltd.[Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 21.05% | 21.05% | |||||||||||||
Registered equity interests | 15.00% | 15.00% | |||||||||||||
Pawn Co [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 24.56% | 24.56% | |||||||||||||
Registered equity interests | 25.00% | 25.00% | |||||||||||||
Mr. Ye [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 22.11% | 22.11% | |||||||||||||
Registered equity interests | 22.50% | 22.50% | |||||||||||||
Cash paid | $ 6,320,000 | ¥ 40,740,000 | $ 6,320,000 | ¥ 40,740,000 | |||||||||||
Repayments of loan agreement | $ 18,270,000 | ¥ 118,000,000 | |||||||||||||
Fixed interest | $ 540,000 | ¥ 3,500,000 | |||||||||||||
Meidu Graphene’s [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 54.39% | 54.39% | |||||||||||||
Registered equity interests | 60.00% | 60.00% | |||||||||||||
Hitrans Loan [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Loan agreement | $ 18,300,000 | ¥ 118,000,000 | |||||||||||||
Remitting value | ¥ | 131,000,000 | ||||||||||||||
Repayments of loan agreement | $ 2,020,000 | ¥ 13,000,000 | |||||||||||||
CBAK Power [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Cash paid | $ 500,000 | ¥ 3,000,000 | |||||||||||||
Mr. Junnan Ye [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 54.39% | 54.39% | |||||||||||||
Registered equity interests | 60.00% | 60.00% | |||||||||||||
Cash paid | $ 500,000 | ||||||||||||||
Zhejiang Hitrans [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Repaid of loan principals | $ 18,300,000 | ¥ 118,000,000 | |||||||||||||
Court and Juzhong Daxin [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Remitting value | $ 1,100,000 | ¥ 7,000,000 | |||||||||||||
Hitrans holding [Member] | |||||||||||||||
Acquisition of Subsidiaries (Details) [Line Items] | |||||||||||||||
Equity Interests capital percentage | 75.57% | 75.57% | |||||||||||||
Registered equity interests | 81.56% | 81.56% |
Acquisition of Subsidiaries (_2
Acquisition of Subsidiaries (Details) - Schedule of aggregate fair values of the assets acquired and liabilities | Nov. 26, 2021USD ($) |
Schedule of aggregate fair values of the assets acquired and liabilities [Abstract] | |
Cash and bank | $ 7,323,654 |
Debts product | 3,144 |
Trade and bills receivable, net | 37,759,688 |
Inventories | 13,616,922 |
Prepayments and other receivables | 1,384,029 |
Income tax recoverable | 47,138 |
Amount due from trustee | 11,788,931 |
Property, plant and equipment, net | 21,190,890 |
Construction in progress | 2,502,757 |
Intangible assets, net | 1,957,187 |
Prepaid land use rights, non- current | 6,276,898 |
Leased assets, net | 48,394 |
Deferred tax assets | 1,715,998 |
Short term bank loan | (8,802,402) |
Other short term loans – CBAK Power | (20,597,522) |
Trade accounts and bills payable | (38,044,776) |
Accrued expenses and other payables | (7,439,338) |
Deferred government grants | (290,794) |
Land appreciation tax | (464,162) |
Deferred tax liabilities | (333,824) |
NAV | 29,642,812 |
Less: Waiver of dividend payable | 1,250,181 |
Total NAV acquired | 30,892,993 |
Non-controlling interest (24.43%) | (7,547,158) |
Goodwill | 1,606,518 |
Total identifiable net assets | $ 24,952,353 |
Acquisition of Subsidiaries (_3
Acquisition of Subsidiaries (Details) - Schedule of components of the consideration - Mar. 31, 2022 | USD ($) | CNY (¥) |
Business Acquisition, Contingent Consideration [Line Items] | ||
Total Purchase Consideration | $ 24,952,353 | ¥ 158,744,376 |
Hitrans from Meidu Graphene [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Total Purchase Consideration | 18,547,918 | 118,000,000 |
Hitrans from Hitrans management [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Total Purchase Consideration | $ 6,404,435 | ¥ 40,744,376 |
Acquisition of Subsidiaries (_4
Acquisition of Subsidiaries (Details) - Schedule of components of the consideration (Parentheticals) | 3 Months Ended |
Mar. 31, 2022 | |
Hitrans from Meidu Graphene [Member] | |
Business Acquisition, Contingent Consideration [Line Items] | |
Cash consideration for registered equity interest | 60.00% |
Cash consideration for paid-up capital | 54.39% |
Hitrans from Hitrans management [Member] | |
Business Acquisition, Contingent Consideration [Line Items] | |
Cash consideration for registered equity interest | 21.56% |
Cash consideration for paid-up capital | 21.18% |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of the movement of the goodwill - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of the movement of the goodwill [Abstract] | ||
Balance, beginning | $ 1,645,232 | |
Acquisition of Hitrans | 1,606,518 | |
Foreign exchange adjustment | 5,397 | 38,714 |
Balance, ending | $ 1,650,629 | $ 1,645,232 |
Trade and Bills Payable (Detail
Trade and Bills Payable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Trade and Bills Payable [Abstract] | ||
Bills payable maturity period | 1 year | |
Bills receivable | $ 5 | $ 4.4 |
Trade and Bills Payable (Deta_2
Trade and Bills Payable (Details) - Schedule of trade and bills payable - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of trade and bills payable [Abstract] | ||
Trade accounts payable | $ 46,550,602 | $ 40,352,638 |
Bills payable | ||
– Bank acceptance bills | 32,719,399 | 25,023,574 |
Trade and bills payable | $ 79,270,001 | $ 65,376,212 |
Loans (Details)
Loans (Details) - USD ($) | Mar. 08, 2022 | Feb. 09, 2022 | Jun. 04, 2018 | Apr. 29, 2022 | Jan. 17, 2022 | Nov. 16, 2021 | Apr. 19, 2021 | Jun. 28, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans (Details) [Line Items] | ||||||||||||
Banking facilities | $ 6.6 | |||||||||||
Interest amount | 213,583 | $ 122,973 | ||||||||||
China Everbright Bank Dalian Branch [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Description of loans | the Company obtained banking facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB200 million (approximately $30.63 million) with the term from June 12, 2018 to June 10, 2021, bearing interest at 130% of benchmark rate of the People’s Bank of China (“PBOC”) for three-year long-term loans, at current rate 6.175% per annum. The facilities were secured by the Company’s land use rights, buildings, machinery and equipment. According to the original repayment schedule, the loans are repayable in six installments of RMB0.8 million ($0.12 million) on December 10, 2018, RMB24.3 million ($3.72 million) on June 10, 2019, RMB0.8 million ($0.12 million) on December 10, 2019, RMB74.7 million ($11.44 million) on June 10, 2020, RMB0.8 million ($0.12 million) on December 10, 2020 and RMB66.3 million ($10.16 million) on June 10, 2021. The Company repaid the bank loan of RMB0.8 million ($0.12 million), RMB24.3 million ($3.72 million) and RMB0.8 million ($0.12 million) in December 2018, June 2019 and December 2019, respectively. | the Company entered into a supplemental agreement with China Everbright Bank Dalian Branch to change the repayment schedule. According to the modification agreement, the remaining RMB141.8 million (approximately $21.72 million) loans are repayable in eight instalments consisting of RMB1.09 million ($0.17 million) on June 10, 2020, RMB1 million ($0.15 million) on December 10, 2020, RMB2 million ($0.31 million) on January 10, 2021, RMB2 million ($0.31 million) on February 10, 2021, RMB2 million ($0.31 million) on March 10, 2021, RMB2 million ($0.31 million) on April 10, 2021, RMB2 million ($0.31 million) on May 10, 2021, and RMB129.7 million ($19.9 million) on June 10, 2021, respectively. | ||||||||||
Shaoxing Branch of Bank of Communications Co., Ltd [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Description of loans | the Company obtained banking facilities from Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB120.1 million (approximately $19.0 million) with the term from November 18, 2021 to November 18, 2026. The facility was secured by the Company’s land use rights and buildings. Under the facility, the Company has borrowed RMB56.0 million (approximately $8.8 million) and RMB63.1 million (approximately $9.9 million) as of December 31, 2021 and March 31, 2022, respectively, for a term until November 16, 2022 to February 28, 2023, bearing interest at 4.35% per annum. The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaled RMB53.7 million (approximately $8.4 million) for various terms through April to August 2022, which was secured by the Company’s cash totaled RMB22.3 million (approximately $3.5 million) (Note 2) and bills receivables totaled RMB31.3 million (approximately $4.9 million) (Note 3). The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaled RMB32.2 million (approximately $5.1 million) for various terms through May to August 2022, which was secured by the Company’s cash totaled RMB16.1 million (approximately $2.5 million) and the Company’s land use rights and buildings. | |||||||||||
China Merchants Bank [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Description of bills | the Company borrowed a series of acceptance bills from China Merchants Bank totaled RMB13.5 million (approximately $2.07 million) for various terms through April to June 2021, which was secured by the Company’s cash totaled RMB13.5 million (approximately $2.07 million). The Company repaid the bills through April to June 2021. | |||||||||||
Bank of Ningbo Co., Ltd [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Description of bills | the Company obtained five-year acceptance bills facilities from Bank of Ningbo Co., Ltd with a maximum amount of RMB84.4 million (approximately $13.2 million). Any amount drawn under the facilities requires security in the form of cash or bank acceptance bills receivable of at least the same amount. Under the facilities, as of December 31, 2021, the Company borrowed a total of RMB10 million (approximately $1.6 million) from Bank of Ningbo Co., Ltd in the form of bills payable for a various term expiring from January to February 2022, which was secured by the Company’s cash totaled RMB10 million (approximately $1.6 million). The Company repaid the bills in January to February 2022.The Company borrowed a series of acceptance bills from Agricultural Bank of China totaled RMB32.0 million (approximately $5.1 million) for various terms through April to September 2022, which was secured by the Company’s cash totaled RMB32.0 million (approximately $5.1 million) (Note 2). The Company borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shenyang Branch totaled RMB89.6 million (approximately $14.1 million) for various terms through April to September 2022, which was secured by the Company’s cash totaled RMB88.9 million (approximately $14.0 million) (Note 2) and the Company’s bills receivable totaled RMB0.7 million (approximately $0.1 million) (Note 3). | |||||||||||
China Zheshang Bank Co Ltd [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Description of loans | the Company obtained a one-year term facility from Agricultural Bank of China with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 105% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 3.85% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. | |||||||||||
Jiangsu Gaochun Rural Commercial Bank [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Description of loans | the Company obtained a one-year term facility from Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 124% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 4.94% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. | |||||||||||
China Zheshang Bank Co Ltd [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Description of loans | the Company obtained a one-year term facility from China Zheshang Bank Co., Ltd. Shangyu Branch with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 5.5% per annum. The facility was guaranteed by 100% equity in CBAK Power held by BAK Asia and the Company’s CEO, Mr. Yunfei Li. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. | |||||||||||
Industrial and Commercial Bank of China Nanjing Gaochun Branch [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Description of loans | the Company obtained a one-year term facility from Industrial and Commercial Bank of China Nanjing Gaochun branch, with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 3.95% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. | |||||||||||
Suzhou Zhengyuanwei Needle Ce Co., Ltd [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Loan agreement description | Company entered into a short term loan agreement with Suzhou Zhengyuanwei Needle Ce Co., Ltd, an unrelated party to loan RMB0.6 million (approximately $0.1 million), bearing annual interest rate of 12%. As of March 31, 2022, loan amount of RMB0.5 million ($0.1 million) remained outstanding. | |||||||||||
Unrelated Parties [Member] | ||||||||||||
Loans (Details) [Line Items] | ||||||||||||
Interest amount | $ 2,314 | $ 7,167 |
Loans (Details) - Schedule of b
Loans (Details) - Schedule of bank borrowings - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of bank borrowings [Abstract] | ||
Short-term bank borrowings | $ 14,674,721 | $ 8,811,820 |
Loans (Details) - Schedule of f
Loans (Details) - Schedule of facilities were also secured by the company’s assets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Carrying Amounts | $ 44,914,655 | $ 38,277,612 |
Pledged deposits [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Carrying Amounts | 25,141,517 | 18,996,749 |
Bills receivables [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Carrying Amounts | 5,041,978 | 4,446,553 |
Right-of-use assets [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Carrying Amounts | 6,236,789 | 6,268,473 |
Buildings [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Carrying Amounts | $ 8,494,371 | $ 8,565,837 |
Loans (Details) - Schedule of o
Loans (Details) - Schedule of other short-term loans - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | |
Short-Term Debt [Line Items] | |||
Advance from related parties | $ 348,819 | $ 4,282,119 | |
Advances from unrelated third party | 397,880 | 397,003 | |
Other short-term loans | 746,699 | 4,679,122 | |
– Mr. Xiangqian Li, the Company’s Former CEO | |||
Short-Term Debt [Line Items] | |||
Advance from related parties | [1] | 100,000 | 100,000 |
Mr. Yunfei Li [Member] | |||
Short-Term Debt [Line Items] | |||
Advance from related parties | [2] | 153,639 | 153,300 |
Shareholders [Member] | |||
Short-Term Debt [Line Items] | |||
Advance from related parties | [3] | 95,180 | 94,971 |
Mr. Junnan Ye [Member] | |||
Short-Term Debt [Line Items] | |||
Advance from related parties | 3,933,848 | ||
Mr. Wenwu Yu [Member] | |||
Short-Term Debt [Line Items] | |||
Advances from unrelated third party | [4] | 17,320 | 17,282 |
Mr. Longqian Peng [Member] | |||
Short-Term Debt [Line Items] | |||
Advances from unrelated third party | [4] | 301,709 | 301,044 |
Suzhou Zhengyuanwei Needle Ce Co., Ltd [Member] | |||
Short-Term Debt [Line Items] | |||
Advances from unrelated third party | [5] | $ 78,851 | $ 78,677 |
[1] | Advances from Mr. Xiangqian Li, the Company’s former CEO, was unsecured, non-interest bearing and repayable on demand. | ||
[2] | Advances from Mr. Yunfei Li, the Company’s CEO, was unsecured, non-interest bearing and repayable on demand. | ||
[3] | The earnest money paid by certain shareholders in relation to share purchase were unsecured, non-interest bearing and repayable on demand. | ||
[4] | Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand. | ||
[5] | In 2019, the Company entered into a short term loan agreement with Suzhou Zhengyuanwei Needle Ce Co., Ltd, an unrelated party to loan RMB0.6 million (approximately $0.1 million), bearing annual interest rate of 12%. As of March 31, 2022, loan amount of RMB0.5 million ($0.1 million) remained outstanding. |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - USD ($) | Nov. 09, 2007 | Aug. 15, 2006 | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses and Other Payables (Details) [Line Items] | ||||
Liquidated damages amount | $ 1,051,000 | $ 561,174 | ||
Other payables and accruals | $ 159,000 | $ 159,000 | ||
Private Placement [Member] | ||||
Accrued Expenses and Other Payables (Details) [Line Items] | ||||
Gross proceeds shares of common stock | $ 13,650,000 | |||
Sale of shares common stock (in Shares) | 3,500,000 | |||
Sale of price per share (in Dollars per share) | $ 3.9 | |||
Cash fee | $ 819,000 | |||
Liquidated damages, description | (a) 1.5% of the aggregate purchase price paid by such investor for the shares it purchased on the one month anniversary of the Effectiveness Deadline; (b) an additional 1.5% of the aggregate purchase price paid by such investor every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until the earliest of the effectiveness of the registration statement, the ten-month anniversary of the Effectiveness Deadline and the time that the Company is no longer required to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant to Rule 144 without volume limitations; and (c) 0.5% of the aggregate purchase price paid by such investor for the shares it purchased in the Company’s November 2007 private placement on each of the following dates: the ten-month anniversary of the Effectiveness Deadline and every thirtieth day thereafter (prorated for periods totaling less than thirty days), until the earlier of the effectiveness of the registration statement and the time that the Company no longer is required to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant to Rule 144 without volume limitations. Such liquidated damages would bear interest at the rate of 1% per month (prorated for partial months) until paid in full. |
Accrued Expenses and Other Pa_4
Accrued Expenses and Other Payables (Details) - Schedule of accrued expenses and other payables - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of accrued expenses and other payables [Abstract] | |||
Construction costs payable | $ 1,529,170 | $ 2,036,008 | |
Equipment purchase payable | 8,079,179 | 8,697,637 | |
Liquidated damages | [1] | 1,210,119 | 1,210,119 |
Accrued staff costs | 2,942,699 | 2,924,105 | |
Customer deposits | 4,671,400 | 1,420,414 | |
Deferred revenue | 784,000 | 784,000 | |
Accrued expenses | 3,601,292 | 4,161,548 | |
Dividend payable to non-controlling interest | 1,446,583 | 1,444,737 | |
Other payables | 212,867 | 285,132 | |
Accrued expenses and other payables | $ 24,477,309 | $ 22,963,700 | |
[1] | On August 15, 2006, the SEC declared effective a post-effective amendment that the Company had filed on August 4, 2006, terminating the effectiveness of a resale registration statement on Form SB-2 that had been filed pursuant to a registration rights agreement with certain shareholders to register the resale of shares held by those shareholders. The Company subsequently filed Form S-1 for these shareholders. On December 8, 2006, the Company filed its Annual Report on Form 10-K for the year ended September 30, 2006 (the “2006 Form 10-K”). After the filing of the 2006 Form 10-K, the Company’s previously filed registration statement on Form S-1 was no longer available for resale by the selling shareholders whose shares were included in such Form S-1. Under the registration rights agreement, those selling shareholders became eligible for liquidated damages from the Company relating to the above two events totaling approximately $1,051,000. As of December 31, 2019 and 2020, no liquidated damages relating to both events have been paid. |
Balances and Transactions Wit_3
Balances and Transactions With Related Parties (Details) - USD ($) | 1 Months Ended | |
Aug. 31, 2018 | Mar. 31, 2022 | |
Balances and Transactions With Related Parties (Details) [Line Items] | ||
Repaid amount | $ 0.5 | |
Transactions related parties, description | Guangdong Hitrans and Shenzhen Baijun entered into a services contract for the provision of consultancy service to assist Guangdong Hitrans to obtain the license for recycling solid wastes with a contract sum of RMB3,000,000 ($465,362). During August and September 2018, RMB1,500,000 ($232,681) was paid to Shenzhen Baijun as deposit. In 2020, Guangdong Hitrans and Shenzhen Baijun entered into supplemental agreement to cancel the services contract and Shenzhen Baijun agreed to refund the deposit paid by four installments from 2021 throughout 2023. The amount due from Shenzhen Baijun is interest fee and RMB300,000 ($45,952) repayable by December 2020, RMB400,000 ($62,048) repayable by December 30, 2021, RMB400,000 ($62,048) repayable by December 30, 2022 and RMB400,000 ($62,049) repayable by December 30, 2023. | |
Mr. Xiangqian Li [Member] | ||
Balances and Transactions With Related Parties (Details) [Line Items] | ||
Equity interests | 29.00% | |
Shenzhen BAK Power Battery Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) [Line Items] | ||
Equity interests | 95.00% | |
Hangzhou Juzhong Daxin Asset Management Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) [Line Items] | ||
Equity interests | 85.00% | |
Zhengzhou BAK Battery Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) [Line Items] | ||
Other balances due from/ (to) related parties | $ 12.5 | |
Zhengzhou BAK New Energy Technology Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) [Line Items] | ||
Other balances due from/ (to) related parties | $ 173,471 |
Balances and Transactions Wit_4
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions | 3 Months Ended | |
Mar. 31, 2022 | ||
New Era Group Zhejiang New Energy Materials Co., Ltd.[Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions [Line Items] | ||
Relationship with the Company | Shareholder of company’s subsidiary | |
Shenzhen Baijun Technology Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions [Line Items] | ||
Relationship with the Company | Shareholder of company’s subsidiary | |
Zhengzhou BAK Battery Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions [Line Items] | ||
Relationship with the Company | Note a | [1] |
Zhengzhou BAK New Energy Technology Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions [Line Items] | ||
Relationship with the Company | Note b | [2] |
Zhengzhou BAK Electronics Co., Ltd. [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions [Line Items] | ||
Relationship with the Company | Note c | [3] |
Shenzhen BAK Battery Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions [Line Items] | ||
Relationship with the Company | Former subsidiary and refer to Note d | [4] |
Shenzhen BAK Power Battery Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions [Line Items] | ||
Relationship with the Company | Former subsidiary and refer to Note d | [4] |
Hangzhou Juzhong Daxin Asset Management Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of principal related parties with company transactions [Line Items] | ||
Relationship with the Company | Note e | [5] |
[1] | Mr. Xiangqian Li, the Company’s former CEO, is a director of Zhengzhou BAK Battery Co., Ltd. | |
[2] | Mr. Xiangqian Li is a director of Zhengzhou BAK New Energy Vehicle Co., Ltd, which has 29% equity interests in Zhengzhou BAK New Energy Technology Co., Ltd. | |
[3] | Shenzhen BAK Power Battery Co., Ltd has 95% equity interests in Zhengzhou BAK Electronics Co., Ltd. | |
[4] | Mr. Xiangqian Li is a director of Shenzhen BAK Battery Co., Ltd and Shenzhen BAK Power Battery Co., Ltd | |
[5] | Hangzhou Juzhong Daxin Asset Management Co., Ltd. is the trustee of 85% of registered equity interests of Hitrans (note 11) |
Balances and Transactions Wit_5
Balances and Transactions With Related Parties (Details) - Schedule of related party transactions - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Purchase of finished goods from Zhengzhou BAK Battery Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party transactions amount | $ 5,164,433 | $ 1,259,309 |
Sales of finished goods and raw materials to Zhengzhou BAK Battery Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party transactions amount | 25,823,532 | 108,290 |
Sales of finished goods and raw materials to Zhengzhou BAK Electronics Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party transactions amount | 412,353 | |
Sales of finished goods and raw materials to Shenzhen BAK Power Battery Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party transactions amount | $ 112,468 |
Balances and Transactions Wit_6
Balances and Transactions With Related Parties (Details) - Schedule of receivables from former subsidiary - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of receivables from former subsidiary [Abstract] | ||
Receivables from Shenzhen BAK Power Battery Co., Ltd | $ 1,134,585 | $ 2,263,955 |
Balances and Transactions Wit_7
Balances and Transactions With Related Parties (Details) - Schedule of amount due from non-controlling interest - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of amount due from non-controlling interest [Abstract] | ||
Current | $ 126,161 | $ 125,883 |
Non-current | 63,081 | 62,941 |
Total non-controlling interest | $ 189,242 | $ 188,824 |
Balances and Transactions Wit_8
Balances and Transactions With Related Parties (Details) - Schedule of amount due from related parties - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Hangzhou Juzhong Daxin Asset Management Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of amount due from related parties [Line Items] | ||
Amount due from related parties | $ 473,104 | $ 472,061 |
Balances and Transactions Wit_9
Balances and Transactions With Related Parties (Details) - Schedule of other balances due from related parties - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | |
Balances and Transactions With Related Parties (Details) - Schedule of other balances due from related parties [Line Items] | |||
Dividend payable to non-controlling interest of Hitrans | $ (1,446,583) | $ (1,444,737) | |
Trade receivable, net – Zhengzhou BAK Battery Co., Ltd. [Member] | |||
Balances and Transactions With Related Parties (Details) - Schedule of other balances due from related parties [Line Items] | |||
Trade receivable, net | [1] | 12,963,529 | 14,583,061 |
Trade receivable, net – Zhengzhou BAK New Energy Technology Co., Ltd. [Member] | |||
Balances and Transactions With Related Parties (Details) - Schedule of other balances due from related parties [Line Items] | |||
Trade receivable, net | [2] | 173,471 | 459,714 |
Trade payable, net – Zhengzhou BAK Battery Co., Ltd [Member] | |||
Balances and Transactions With Related Parties (Details) - Schedule of other balances due from related parties [Line Items] | |||
Trade payable, net | $ (3,057,449) | $ (572,768) | |
[1] | Up to the date of this report, Zhengzhou BAK Battery Co., Ltd. repaid $12.5 million to the Company. | ||
[2] | Up to the date of this report, Zhengzhou BAK New Energy Technology Co., Ltd repaid $173,471 to the Company. |
Balances and Transactions Wi_10
Balances and Transactions With Related Parties (Details) - Schedule of payables to former subsidiaries - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Balances and Transactions With Related Parties (Details) - Schedule of payables to former subsidiaries [Line Items] | ||
Payables | $ (325,624) | $ (326,507) |
Payables to Shenzhen BAK Power Battery Co., Ltd [Member] | ||
Balances and Transactions With Related Parties (Details) - Schedule of payables to former subsidiaries [Line Items] | ||
Payables | $ (325,624) | $ (326,507) |
Deferred Government Grants (Det
Deferred Government Grants (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 23, 2020USD ($) | Jun. 23, 2020CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Oct. 17, 2014CNY (¥) | |
Other Long Term Payables [Abstract] | |||||||
Subsidy received (in Yuan Renminbi) | ¥ | ¥ 46,150,000 | ||||||
Amount received | $ 1,600,000 | ¥ 10,000,000 | |||||
Cost incurred | 3,200,000 | 20,000,000 | |||||
Finance equipment purchases | $ 2,700,000 | ¥ 17,100,000 | |||||
Other income | $ 1,600,000 | ¥ 10,000,000 | |||||
Subsidy | $ 5,900,000 | ¥ 37,100,000 | |||||
Depreciation expenses | $ | $ 566,972 | $ 38,133 |
Deferred Government Grants (D_2
Deferred Government Grants (Details) - Schedule of deferred government grants - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of deferred government grants [Abstract] | ||
Total government grants | $ 9,473,191 | $ 10,023,677 |
Less: Current portion | (2,270,463) | (3,834,481) |
Non-current portion | $ 7,202,728 | $ 6,189,196 |
Product Warranty Provisions (De
Product Warranty Provisions (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Standard product warranty, description | The Company maintains a policy of providing after sales support for certain of its new EV and LEV battery products introduced since October 1, 2015 by way of a warranty program. The limited cover covers a period of six to twenty four months for battery cells, a period of twelve to twenty seven months for battery modules for light electric vehicles (LEV) such as electric bicycles, and a period of three years to eight years (or 120,000 or 200,000 km if reached sooner) for battery modules for electric vehicles (EV). The Company accrues an estimate of its exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The Company assesses the adequacy of its recorded warranty liability at least annually and adjusts the amounts as necessary. |
Product Warranty Provisions (_2
Product Warranty Provisions (Details) - Schedule of accrued warranty activity - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2020 | |
Schedule of accrued warranty activity [Abstract] | ||
Balance at beginning of year | $ 2,028,266 | $ 1,991,605 |
Warranty costs incurred | (9,419) | (34,439) |
Provision for the year | 4,344 | 16,995 |
Foreign exchange adjustment | 4,473 | 54,105 |
Balance at end of year | 2,027,664 | 2,028,266 |
Less: Current portion | (104,122) | (127,837) |
Non-current portion | $ 1,923,542 | $ 1,900,429 |
Income Taxes, Deferred Tax As_3
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2017 | |
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) [Line Items] | ||||
U.S. corporate income tax description | The U.S. Tax Reform signed into law on December 22, 2017 significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. Taxpayers may elect to pay the one-time transition tax over eight years, or in a single lump sum. | |||
Income tax liability percentage | 50.00% | |||
PRC tax, description | The CIT Law in China applies an income tax rate of 25% to all enterprises but grants preferential tax treatment to High-New Technology Enterprises. CBAK Power was regarded as a “High-new technology enterprise” pursuant to a certificate jointly issued by the relevant Dalian Government authorities. The certificate was valid for three years commencing from year 2021. Under the preferential tax treatment, CBAK Power was entitled to enjoy a tax rate of 15% for the years from 2021 to 2024 provided that the qualifying conditions as a High-new technology enterprise were met. Hitrans was regarded as a “High-new technology enterprise” pursuant to a certificate jointly issued by the relevant Zhejiang Government authorities. The certificate was valid for three years commencing from year 2021. Under the preferential tax treatment, Hitrans was entitled to enjoy a tax rate of 15% for the years from 2021 to 2024 provided that the qualifying conditions as a High-new technology enterprise were met. | |||
Net operating loss carry forwards, description | As of December 31, 2021 and March 31, 2022, the Company’s U.S. entity had net operating loss carry forwards of $103,580,741 and $103,580,741, of which $102,293 available to reduce future taxable income which will expire in various years through 2035 and $103,478,448 available to offset capital gains recognized in the succeeding 5 tax years. | |||
Valuation allowance | $ 36,751,234 | $ 36,278,909 | ||
United States Tax [Member] | Minimum [Member] | ||||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) [Line Items] | ||||
Taxable income rate | 21.00% | |||
United States Tax [Member] | Maximum [Member] | ||||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) [Line Items] | ||||
Taxable income rate | 35.00% | |||
Hong Kong Tax [Member] | ||||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) [Line Items] | ||||
Tax rate | 3.00% | 16.50% | ||
State Administration of Taxation, China [Member] | ||||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) [Line Items] | ||||
PRC tax administration description | According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. | |||
PRC [Member] | ||||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) [Line Items] | ||||
Net operating loss carry forwards, description | As of December 31, 2021 and March 31, 2022, the Company’s PRC subsidiaries had net operating loss carry forwards of $43,929,161 and $47,668,784, respectively, which will expire in various years through 2022 to 2030. |
Income Taxes, Deferred Tax As_4
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of provision for income taxes expenses (credit) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of provision for income taxes expenses (credit) [Abstract] | ||
PRC income tax | ||
Current income tax | ||
Deferred income tax credit | 93,546 | |
Total income tax | $ 93,546 |
Income Taxes, Deferred Tax As_5
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of provision for income taxes at statutory income tax rate - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of provision for income taxes at statutory income tax rate [Abstract] | ||
Income before income taxes | $ 586,957 | $ 29,608,168 |
United States federal corporate income tax rate | 21.00% | 21.00% |
Income tax expenses (credit) computed at United States statutory corporate income tax rate | $ 123,261 | $ 6,217,715 |
Reconciling items: | ||
Rate differential for PRC earnings | (25,584) | 69,004 |
Tax effect of entity at preferential tax rate | (9,972) | |
Non-taxable (income) expenses | (264,922) | (5,886,790) |
Share based payments | 7,304 | 31,252 |
Valuation allowance on deferred tax assets | 76,367 | (431,181) |
Income tax credit | $ (93,546) |
Income Taxes, Deferred Tax As_6
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Valuation allowance | $ (36,751,234) | $ (36,278,909) |
Deferred tax assets, non-current | 1,821,589 | 1,737,994 |
Long-lived assets arising from acquisitions | 321,025 | 334,181 |
Trade receivable [Member] | ||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Deferred tax assets | 2,116,363 | 2,044,877 |
Inventories [Member] | ||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Deferred tax assets | 662,511 | 624,372 |
Property, plant and equipment [Member] | ||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Deferred tax assets | 1,543,877 | 1,671,628 |
Non-marketable equity securities [Member] | ||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Deferred tax assets | 176,202 | 175,813 |
Intangible assets [Member] | ||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Deferred tax assets | 99,819 | 82,174 |
Accrued expenses, payroll and others [Member] | ||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Deferred tax assets | 154,923 | 286,258 |
Provision for product warranty [Member] | ||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Deferred tax assets | 506,916 | 507,067 |
Net operating loss carried forward [Member] | ||
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Deferred tax assets | $ 33,312,212 | $ 32,624,714 |
Statutory Reserves (Details)
Statutory Reserves (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Statutory Reserves (Details) [Line Items] | ||
Reserves at percentage | 50.00% | |
Other assets | $ 1,230,511 | $ 1,230,511 |
PRC subsidiary [Member] | ||
Statutory Reserves (Details) [Line Items] | ||
Reserves at percentage | 10.00% |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) | 3 Months Ended | |||
Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | |
Employee Benefit Plan [Abstract] | ||||
Total employee benefits | $ 3,615,587 | ¥ 569,536 | $ 1,659,681 | ¥ 255,989 |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) | Aug. 23, 2019 | Jun. 12, 2015 | Nov. 29, 2021 | Oct. 23, 2020 | Apr. 19, 2016 | Jun. 30, 2015 | Jan. 20, 2005 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Share-based Compensation (Details) [Line Items] | ||||||||||
Aggregate number of shares (in Shares) | 1,720,087 | |||||||||
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||||||||
Fair value price per share (in Dollars per share) | $ 1.28 | $ 1.56 | ||||||||
Share issued (in Shares) | 4,167 | |||||||||
Non-cash share based compensation expense | $ 23,778 | |||||||||
General and administrative expenses | 19,216 | |||||||||
Sales and marketing expenses | 756 | |||||||||
Research and development expenses | 3,806 | |||||||||
Unrecognized stock-based compensation | $ 269,175 | |||||||||
Stock Option expire term | 70 months | |||||||||
Fair value of the options description | The fair value of the options was calculated using the following assumptions: estimated life of six months to five years, volatility of 106.41%, risk free interest rate of 1.26%, and dividend yield of 0%. The fair value of 350,000 stock options to directors of the Company was $479,599 at the grant date. For the three months ended March 31, 2022, the Company recorded nil as stock compensation expenses.The fair value of the stock options granted to certain employees and officers of the Company is estimated on the date of the grant using the Binomial Model. The fair value of the options was calculated using the following assumptions: estimated life of six months to five years, volatility of 106.41%, risk-free interest rate of 1.26% and dividend yield of 0%. The fair value of 2,400,002 stock options to certain employees and officers of the Company was $2,805,624 at the grant date. | |||||||||
Stock compensation expenses | ||||||||||
Market value of common stock | 1.28 | |||||||||
Officer [Member] | ||||||||||
Share-based Compensation (Details) [Line Items] | ||||||||||
Stock compensation expenses | $ 2,805,624 | |||||||||
2015 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation (Details) [Line Items] | ||||||||||
Aggregate number of shares (in Shares) | 10,000,000 | |||||||||
Aggregated shares units (in Shares) | 690,000 | |||||||||
Restricted Stock [Member] | ||||||||||
Share-based Compensation (Details) [Line Items] | ||||||||||
Common stock par value (in Dollars per share) | $ 0.001 | |||||||||
Fair value price per share (in Dollars per share) | $ 3.24 | |||||||||
Share issued (in Shares) | 1,667 | |||||||||
Non-cash share based compensation expense | $ 55,032 | $ 11,001 | ||||||||
Restricted Shares Granted on April 19, 2016 [Member] | ||||||||||
Share-based Compensation (Details) [Line Items] | ||||||||||
Description of restricted shares | the Company’s 2015 Plan, the Compensation Committee of the Board of Directors of the Company granted an aggregate of 500,000 restricted shares of the Company’s common stock, par value $0.001 , to certain employees, officers and directors of the Company, of which 220,000 restricted shares were granted to the Company’s executive officers and directors. There are three types of vesting schedules. First, if the number of restricted shares granted is below 3,000, the shares will vest annually in 2 equal installments over a two year period with the first vesting on June 30, 2017. Second, if the number of restricted shares granted is larger than or equal to 3,000 and is below 10,000, the shares will vest annually in 3 equal installments over a three year period with the first vesting on June 30, 2017. Third, if the number of restricted shares granted is above or equal to 10,000, the shares will vest semi-annually in 6 equal installments over a three year period with the first vesting on December 31, 2016. The fair value of these restricted shares was $2.68 per share on April 19, 2016. | |||||||||
Restricted shares granted on August 23, 2019 [Member] | ||||||||||
Share-based Compensation (Details) [Line Items] | ||||||||||
Description of restricted share units | the Company’s 2015 Plan, the Compensation Committee granted an aggregate of 1,887,000 restricted share units of the Company’s common stock to certain employees, officers and directors of the Company, of which 710,000 restricted share units were granted to the Company’s executive officers and directors. There are two types of vesting schedules, (i) the share units will vest semi-annually in 6 equal installments over a three year period with the first vesting on September 30, 2019; (ii) the share units will vest annual in 3 equal installments over a three year period with the first vesting on March 31, 2021. The fair value of these restricted shares was $0.9 per share on August 23, 2019. | |||||||||
Non-cash share based compensation expense | 93,786 | |||||||||
General and administrative expenses | 75,794 | |||||||||
Sales and marketing expenses | 2,982 | |||||||||
Research and development expenses | $ 15,010 | |||||||||
Restricted Shares Granted on October 23, 2020 [Member] | ||||||||||
Share-based Compensation (Details) [Line Items] | ||||||||||
Aggregated shares units (in Shares) | 100,000 | |||||||||
Vesting schedules, description | In accordance with the vesting schedule of the grant, the restricted share units will vest semi-annually in 6 equal installments over a three year period with the first vesting on October 30, 2020. | |||||||||
Fair value per share (in Shares) | 3 | |||||||||
Restricted Shares Granted on October 23, 2020 [Member] | ||||||||||
Share-based Compensation (Details) [Line Items] | ||||||||||
Unrecognized stock-based compensation | $ 35,942 | |||||||||
Employees Stock Ownership Program on November 29, 2021 [Member] | ||||||||||
Share-based Compensation (Details) [Line Items] | ||||||||||
Description of restricted shares | the Company’s 2015 Plan, the Compensation Committee granted options to obtain an aggregate of 2,750,002 share units of the Company’s common stock to certain employees, officers and directors of the Company, of which options to obtain 350,000 share units were given to the Company’s executive officers and directors with an option exercise price of $1.96 based on fair market value. The vesting of shares each year is subject to certain financial performance indicators. The shares will be vested semi-annually in 10 equal installments over a five year period with the first vesting on May 30, 2022. |
Share-based Compensation (Det_2
Share-based Compensation (Details) - Schedule of non-vested restricted shares - Restricted shares granted on August 23, 2019 [Member] | 3 Months Ended |
Mar. 31, 2022shares | |
Share-based Compensation (Details) - Schedule of non-vested restricted shares [Line Items] | |
Non-vested share units as of January 1, 2022 | 277,173 |
Vested | (269,175) |
Forfeited | (7,998) |
Non-vested share units as of March 31, 2022 |
Share-based Compensation (Det_3
Share-based Compensation (Details) - Schedule of non-vested restricted shares | 3 Months Ended |
Mar. 31, 2022shares | |
Schedule of non-vested restricted shares [Abstract] | |
Non-vested share units as of January 1, 2022 | 49,999 |
Granted | |
Vested | |
Non-vested share units as of March 31, 2022 | 49,999 |
Share-based Compensation (Det_4
Share-based Compensation (Details) - Schedule of the stock option activity | 3 Months Ended | |
Mar. 31, 2022USD ($)$ / sharesshares | ||
Schedule of the stock option activity [Abstract] | ||
Number of Shares ,Outstanding Begging balance | 2,750,002 | |
Average Exercise Price per Share ,Outstanding Beginning balance (in Dollars per share) | $ / shares | $ 1.96 | |
Aggregate Intrinsic Value ,Outstanding Beginning balance (in Dollars) | $ | [1] | |
Weighted Average Remaining Contractual Term in Years ,Outstanding Beginning balance | 5 years 8 months 12 days | |
Number of Shares Exercisable Beginning balance | ||
Average Exercise Price per Share Exercisable Beginning balance (in Dollars per share) | $ / shares | ||
Aggregate Intrinsic Value Exercisable Beginning balance (in Dollars) | $ | [1] | |
Weighted Average Remaining Contractual Term in Years Exercisable Beginning balance | ||
Number of Shares Granted | ||
Average Exercise Price per Share Granted (in Dollars per share) | $ / shares | ||
Aggregate Intrinsic Value Granted (in Dollars) | $ | [1] | |
Weighted Average Remaining Contractual Term in Years Granted | ||
Number of Shares Exercised | ||
Average Exercise Price per Share Exercised | ||
Aggregate Intrinsic Value Exercised (in Dollars) | $ | [1] | |
Weighted Average Remaining Contractual Term in Years Exercised | ||
Number of Shares Forfeited | ||
Average Exercise Price per Share Forfeited | ||
Aggregate Intrinsic Value Forfeited (in Dollars) | $ | [1] | |
Weighted Average Remaining Contractual Term in Years Forfeited | ||
Number of Shares ,Outstanding Ending balance | 2,750,002 | |
Average Exercise Price per Share Outstanding Ending balance (in Dollars per share) | $ / shares | $ 1.96 | |
Aggregate Intrinsic Value Outstanding Ending balance (in Dollars) | $ | [1] | |
Weighted Average Remaining Contractual Term in Years Outstanding Ending balance | 5 years 5 months 12 days | |
Number of Shares Exercisable Ending balance Ending balance | ||
Average Exercise Price per Share Exercisable Ending balance (in Dollars per share) | $ / shares | ||
Aggregate Intrinsic Value Exercisable Ending balance (in Dollars) | $ | [1] | |
Weighted Average Remaining Contractual Term in Years Exercisable Ending balance | ||
[1] | The intrinsic value of the stock options at March 31, 2022 is the amount by which the market value of the Company’s common stock of $1.28 as of March 31, 2022 exceeds the exercise price of the option. |
Income (Loss) Per Share (Detail
Income (Loss) Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Vested restricted shares | 269,175 | 288,498 |
Unvested shares | 2,750,002 |
Income (Loss) Per Share (Deta_2
Income (Loss) Per Share (Details) - Schedule of calculation of (loss) income per share - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of calculation of (loss) income per share [Abstract] | ||
Net income | $ 680,503 | $ 29,608,168 |
Less: Net loss (income) attributable to non-controlling interests | (236,050) | 1,114 |
Net income attributable to shareholders of CBAK Energy Technology, Inc. | $ 4,444 | $ 29,609,282 |
Weighted average shares outstanding – basic | 88,713,841 | 84,283,605 |
Dilutive unvested restricted stock | 21,116 | 650,308 |
Weighted average shares outstanding – diluted (note) | 88,734,957 | 84,933,913 |
Income per share of common stock | ||
Basic | $ 0.01 | $ 0.35 |
Diluted | $ 0.01 | $ 0.35 |
Warrants (Details)
Warrants (Details) - shares | Feb. 08, 2021 | Dec. 08, 2020 | Mar. 31, 2022 |
Warrants (Details) [Line Items] | |||
Warrants issued and outstanding | 9,092,499 | ||
Securities Purchase Agreement [Member] | |||
Warrants (Details) [Line Items] | |||
Warrants, description | the Company entered into another securities purchase agreement with the same investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 8,939,976 shares of common stock of the Company at a per share purchase price of $7.83. In addition, the Company issued to the investors (i) in a concurrent private placement, the Series A-1 warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.67 and exercisable for 42 months from the date of issuance; (ii) in the registered direct offering, the Series B warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.83 and exercisable for 90 days from the date of issuance; and (iii) in the registered direct offering, the Series A-2 warrants to purchase up to 2,234,992 shares of common stock, at a per share exercise price of $7.67 and exercisable for 45 months from the date of issuance. The Company received gross proceeds of approximately $70 million from the registered direct offering and the concurrent private placement, before deducting fees to the placement agent and other estimated offering expenses of $5.0 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 446,999 shares of the Company’s common stock at an exercise price of $9.204 per share exercisable for 36 months after 6 months from the issuance. | the Company entered in a securities purchase agreement with certain institutional investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 9,489,800 shares of its common stock at a price of $5.18 per share, for aggregate gross proceeds to the Company of approximately $49 million, before deducting fees to the placement agent and other estimated offering expenses payable by the Company. As part of the transaction, the institutional investors also received warrants (“Investor Warrants”) for the purchase of up to 3,795,920 shares of the Company’s common stock at an exercise price of $6.46 per share exercisable for 36 months from the date of issuance. In addition, the placement agent for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 379,592 shares of the Company’s common stock at an exercise price of $6.475 per share exercisable for 36 months after 6 months from the issuance. |
Warrants (Details) - Schedule o
Warrants (Details) - Schedule of the warrants issued 2020 financing - Warrant [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Warrants (Details) - Schedule of the warrants issued 2020 financing [Line Items] | ||
Market price per share (USD/share) (in Dollars per share) | $ 1.28 | $ 1.56 |
Exercise price (USD/price) (in Dollars per share) | $ 6.475 | $ 6.475 |
Risk free rate | 2.37% | 0.80% |
Dividend yield | 0.00% | 0.00% |
Expected term/ Contractual life (years) | 2 years 2 months 8 days | 2 years 4 months 24 days |
Expected volatility | 135.19% | 132.30% |
2021 [Member] | ||
Warrants (Details) - Schedule of the warrants issued 2020 financing [Line Items] | ||
Market price per share (USD/share) (in Dollars per share) | $ 1.56 | |
Exercise price (USD/price) (in Dollars per share) | $ 6.46 | |
Risk free rate | 0.70% | |
Dividend yield | 0.00% | |
Expected term/ Contractual life (years) | 1 year 10 months 24 days | |
Expected volatility | 140.30% | |
2022 [Member] | ||
Warrants (Details) - Schedule of the warrants issued 2020 financing [Line Items] | ||
Market price per share (USD/share) (in Dollars per share) | $ 1.28 | |
Exercise price (USD/price) (in Dollars per share) | $ 6.46 | |
Risk free rate | 2.11% | |
Dividend yield | 0.00% | |
Expected term/ Contractual life (years) | 1 year 8 months 8 days | |
Expected volatility | 143.68% |
Warrants (Details) - Schedule_2
Warrants (Details) - Schedule of the warrants issued 2021 financing - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Warrants (Details) - Schedule of the warrants issued 2021 financing [Line Items] | ||
Market price per share (USD/share) (in Dollars per share) | $ 1.28 | $ 1.56 |
Exercise price (USD/price) (in Dollars per share) | $ 7.67 | $ 7.67 |
Risk free rate | 2.40% | 0.90% |
Dividend yield | 0.00% | 0.00% |
Expected term/ Contractual life (years) | 2 years 4 months 24 days | 2 years 7 months 6 days |
Expected volatility | 133.61% | 129.20% |
Placement Agent Warrants [Member] | ||
Warrants (Details) - Schedule of the warrants issued 2021 financing [Line Items] | ||
Market price per share (USD/share) (in Dollars per share) | $ 1.28 | $ 1.56 |
Exercise price (USD/price) (in Dollars per share) | $ 9.204 | $ 9.204 |
Risk free rate | 2.40% | 0.90% |
Dividend yield | 0.00% | 0.00% |
Expected term/ Contractual life (years) | 2 years 4 months 9 days | 2 years 7 months 6 days |
Expected volatility | 133.61% | 129.20% |
Warrants (Details) - Schedule_3
Warrants (Details) - Schedule of warrants liability measured at fair value on a recurring basis using Level 3 inputs - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of warrants liability measured at fair value on a recurring basis using Level 3 inputs [Abstract] | ||
Balance at the beginning of the year | $ 5,846,000 | $ 17,783,000 |
Warrants issued to institution investors | 47,519,000 | |
Warrants issued to placement agent | 2,346,000 | |
Warrants redeemed | ||
Fair value change of the issued warrants included in earnings | (1,632,000) | (61,802,000) |
Balance at end of year | $ 4,214,000 | $ 5,846,000 |
Warrants (Details) - Schedule_4
Warrants (Details) - Schedule of the warrant activity | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Schedule of the warrant activity [Abstract] | |
Number of Warrants, Outstanding Beginning (in Shares) | shares | 9,092,499 |
Average Exercise Price, Outstanding Beginning | $ 7.19 |
Weighted Average Remaining Contractual Term in Years, Outstanding Beginning | 2 years 3 months 29 days |
Number of Warrants, Exercisable (in Shares) | shares | 9,092,499 |
Average Exercise Price, Exercisable | $ 7.19 |
Weighted Average Remaining Contractual Term in Years, Exercisable | 2 years 3 months 29 days |
Number of Warrants, Granted (in Shares) | shares | |
Average Exercise Price, Granted | |
Weighted Average Remaining Contractual Term in Years, Granted | |
Number of Warrants, Exercised / surrendered (in Shares) | shares | |
Average Exercise Price, Exercised / surrendered | |
Exercised / surrendered | |
Number of Warrants, Expired (in Shares) | shares | |
Average Exercise Price, Expired | |
Weighted Average Remaining Contractual Term in Years, Expired | |
Number of Warrants, Outstanding (in Shares) | shares | 9,092,499 |
Average Exercise Price, Outstanding | $ 7.19 |
Weighted Average Remaining Contractual Term in Years, Outstanding | 2 years 29 days |
Number of Warrants, Exercisable Ending (in Shares) | shares | 9,092,499 |
Average Exercise Price, Exercisable Ending | $ 7.19 |
Weighted Average Remaining Contractual Term in Years, Exercisable Ending | 2 years 29 days |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Apr. 02, 2019USD ($) | Apr. 02, 2019CNY (¥) | Jul. 07, 2016USD ($) | Jul. 07, 2016CNY (¥) | Aug. 31, 2021 | Jun. 23, 2020USD ($) | Jun. 23, 2020CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Jun. 28, 2020USD ($) | Jun. 28, 2020CNY (¥) | May 20, 2019USD ($) | May 20, 2019CNY (¥) | Nov. 08, 2018USD ($) | Nov. 08, 2018CNY (¥) | Sep. 07, 2016USD ($) | Sep. 07, 2016CNY (¥) |
Commitments and Contingencies (Details) [Line Items] | |||||||||||||||||||||||
Commitments and contingencies, description | , Ltd (“Shenzhen Huijie”), one of the Company’s contractors, filed a lawsuit against CBAK Power in the Peoples’ Court of Zhuanghe City, Dalian, (the “Court of Zhuanghe”) for failure to pay pursuant to the terms of the contract and entrusting part of the project of the contract to a third party without their prior consent. | , Ltd (“Shenzhen Huijie”), one of the Company’s contractors, filed a lawsuit against CBAK Power in the Peoples’ Court of Zhuanghe City, Dalian, (the “Court of Zhuanghe”) for failure to pay pursuant to the terms of the contract and entrusting part of the project of the contract to a third party without their prior consent. | |||||||||||||||||||||
Bank deposits | $ 76,152 | $ 75,179 | |||||||||||||||||||||
Accrued construction cost | $ 900,000 | ¥ 6,135,860 | |||||||||||||||||||||
Equipment expense | $ 2,700,000 | ¥ 17,100,000 | |||||||||||||||||||||
Shenzhen Huijie [Member] | |||||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||||||||||||||||
Plaintiff sought a total amount | $ 1,241,648 | ¥ 8,430,792 | |||||||||||||||||||||
Bank deposits | $ 1,210,799 | ¥ 8,430,792 | |||||||||||||||||||||
Contract amount | $ 900,000 | ¥ 6,135,860 | |||||||||||||||||||||
Litigation fees | $ 30,826 | ¥ 209,312 | |||||||||||||||||||||
Construction cost | $ 245,530 | ¥ 1,667,146 | $ 261,316 | ¥ 1,774,337 | $ 1,344,605 | ¥ 9,129,868 | |||||||||||||||||
Amount of final judgement not received | $ 276,356 | ¥ 1,876,458 | |||||||||||||||||||||
Shenzhen Huijie [Member] | Construction Costs [Member] | |||||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||||||||||||||||
Plaintiff sought a total amount | 900,000 | 6,100,000 | |||||||||||||||||||||
Shenzhen Huijie [Member] | Interest [Member] | |||||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||||||||||||||||
Plaintiff sought a total amount | 29,812 | 200,000 | |||||||||||||||||||||
Shenzhen Huijie [Member] | Compensation [Member] | |||||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||||||||||||||||
Plaintiff sought a total amount | $ 300,000 | ¥ 1,900,000 | |||||||||||||||||||||
Shenzhen Huijie [Member] | Remaining Contract Amount [Member] | |||||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||||||||||||||||
Litigation fees | $ 100,000 | ||||||||||||||||||||||
Jiuzhao New Energy Technology Co., Ltd. [Member] | |||||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||||||||||||||||
Plaintiff sought a total amount | $ 1,613,984 | ¥ 10,257,030 | |||||||||||||||||||||
Equipment expense | 1,427,515 | 9,072,000 | |||||||||||||||||||||
Interest | $ 186,469 | ¥ 1,185,030 | |||||||||||||||||||||
Shenzhen Haoneng Technology Co., Ltd. [Member] | |||||||||||||||||||||||
Commitments and Contingencies (Details) [Line Items] | |||||||||||||||||||||||
Commitments and contingencies, description | CBAK Power and Haoneng reached an agreement that the term of the purchase contract will be extended to December 31, 2023 under which CBAK Power and its related parties shall execute the purchase of equipment in an amount not lower than $2.4 million (RMB15,120,000) from Haoneng, or CBAK Power has to pay 15% of the amount equal to RMB15,120,000 ($2.4 million) net of the purchased amount to Haoneng. Haoneng withdrew the filed lawsuit after the agreement. As of March 31, 2022, the equipment was not received by CBAK Power, CBAK Power has included the equipment cost of $2.4 million (RMB15,120,000) under capital commitments. |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of capital commitments - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Long-Term Purchase Commitment [Line Items] | ||
Capital commitments | $ 171,971,962 | $ 173,972,911 |
For construction of buildings [Member] | ||
Long-Term Purchase Commitment [Line Items] | ||
Capital commitments | 1,582,346 | 1,199,606 |
For purchases of equipment [Member] | ||
Long-Term Purchase Commitment [Line Items] | ||
Capital commitments | 13,093,091 | 12,867,786 |
Capital injection [Member] | ||
Long-Term Purchase Commitment [Line Items] | ||
Capital commitments | $ 157,296,525 | $ 159,905,519 |
Concentrations and Credit Ris_2
Concentrations and Credit Risk (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |||
Net revenue, percentage | 10.00% | 10.00% | |
Trade receivable percentage | 10.00% | 10.00% | |
Net accounts receivable percentage | 10.00% | ||
Net purchase, percentage | 10.00% | 10.00% | |
Trade payable, percentage | 10.00% | 10.00% |
Concentrations and Credit Ris_3
Concentrations and Credit Risk (Details) - Schedule of customers net revenue - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | |||
Customer A [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Sales of finished goods and raw materials | [1] | $ 2,903,261 | ||
Concentration risk, percentage | [1] | 30.83% | ||
Customer B [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Sales of finished goods and raw materials | [1] | $ 1,789,045 | ||
Concentration risk, percentage | [1] | 19.00% | ||
Customer C [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Sales of finished goods and raw materials | [1] | $ 1,348,200 | ||
Concentration risk, percentage | [1] | 14.32% | ||
Customer D [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Sales of finished goods and raw materials | $ 24,102,164 | [1] | ||
Concentration risk, percentage | 30.05% | [1] | ||
Zhengzhou BAK Battery Co., Ltd [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Sales of finished goods and raw materials | $ 25,823,532 | [1] | ||
Concentration risk, percentage | 32.20% | [1] | ||
[1] | Comprised less than 10% of net revenue for the respective period. |
Concentrations and Credit Ris_4
Concentrations and Credit Risk (Details) - Schedule of customers net trade receivable - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Zhengzhou BAK Battery Co., Ltd [Member] | ||
Concentrations and Credit Risk (Details) - Schedule of customers net trade receivable [Line Items] | ||
Trade receivable | $ 12,963,529 | $ 14,583,061 |
Concentration risk, percentage of trade receivable | 31.27% | 33.08% |
Customer D [Member] | ||
Concentrations and Credit Risk (Details) - Schedule of customers net trade receivable [Line Items] | ||
Trade receivable | $ 15,641,986 | $ 14,443,551 |
Concentration risk, percentage of trade receivable | 37.73% | 32.76% |
Concentrations and Credit Ris_5
Concentrations and Credit Risk (Details) - Schedule of suppliers net purchase - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | |||
Supplier A [Member] | ||||
Concentrations and Credit Risk (Details) - Schedule of suppliers net purchase [Line Items] | ||||
Net purchase | [1] | $ 659,513 | ||
Concentration risk, percentage of net purchase | [1] | 10.21% | ||
Supplier B [Member] | ||||
Concentrations and Credit Risk (Details) - Schedule of suppliers net purchase [Line Items] | ||||
Net purchase | $ 20,631,815 | [1] | ||
Concentration risk, percentage of net purchase | 25.30% | [1] | ||
Supplier C [Member] | ||||
Concentrations and Credit Risk (Details) - Schedule of suppliers net purchase [Line Items] | ||||
Net purchase | $ 19,332,674 | [1] | ||
Concentration risk, percentage of net purchase | 23.71% | [1] | ||
Zhengzhou BAK Battery Co., Ltd [Member] | ||||
Concentrations and Credit Risk (Details) - Schedule of suppliers net purchase [Line Items] | ||||
Net purchase | [1] | $ 1,259,309 | ||
Concentration risk, percentage of net purchase | [1] | 19.49% | ||
[1] | Comprised less than 10% of net purchase for the respective period. |
Concentrations and Credit Ris_6
Concentrations and Credit Risk (Details) - Schedule of suppliers trade payable - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Supplier B [Member] | ||
Concentrations and Credit Risk (Details) - Schedule of suppliers trade payable [Line Items] | ||
Trade payable | $ 18,430,728 | $ 20,592,979 |
Concentration risk, percentage of trade payable | 39.59% | 51.03% |
Supplier C [Member] | ||
Concentrations and Credit Risk (Details) - Schedule of suppliers trade payable [Line Items] | ||
Trade payable | $ 8,705,648 | $ 6,837,722 |
Concentration risk, percentage of trade payable | 18.70% | 16.94% |
Segment Information (Details) -
Segment Information (Details) - Schedule of operating decision maker evaluates performance based on each reporting segment - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CBAT [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | $ 15,020,686 | $ 9,416,049 |
Cost of revenues | (14,037,762) | (7,576,620) |
Gross profit | 982,924 | 1,839,429 |
Total operating expenses | (3,108,736) | (1,319,248) |
Operating (loss) income | (2,125,812) | 520,181 |
Finance income (expenses), net | 107,870 | (13,443) |
Other income, net | 503,156 | 1,217,648 |
Income tax (expense) credit | ||
Net income (loss) | (1,514,786) | 1,724,386 |
Identifiable long-lived assets | 101,091,666 | |
Total assets | 178,351,609 | |
Corporate Unallocated Note [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | ||
Cost of revenues | ||
Gross profit | ||
Total operating expenses | (405,132) | (548,063) |
Operating (loss) income | (405,132) | (548,063) |
Finance income (expenses), net | (148) | 5,845 |
Other income, net | 1,632,000 | 28,426,000 |
Income tax (expense) credit | ||
Net income (loss) | 1,226,720 | 27,883,782 |
Identifiable long-lived assets | ||
Total assets | 616,667 | |
Consolidated [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | 80,196,298 | 9,416,049 |
Cost of revenues | (74,879,944) | (7,576,620) |
Gross profit | 5,316,354 | 1,839,429 |
Total operating expenses | (6,651,615) | (1,867,311) |
Operating (loss) income | (1,335,261) | (27,882) |
Finance income (expenses), net | 5,014 | (7,598) |
Other income, net | 1,917,204 | 29,643,648 |
Income tax (expense) credit | 93,546 | |
Net income (loss) | 680,503 | $ 29,608,168 |
Identifiable long-lived assets | 132,515,326 | |
Total assets | 278,795,221 | |
Hitrans [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenues | 65,175,612 | |
Cost of revenues | (60,842,182) | |
Gross profit | 4,333,430 | |
Total operating expenses | (3,137,747) | |
Operating (loss) income | 1,195,683 | |
Finance income (expenses), net | (102,708) | |
Other income, net | (217,952) | |
Income tax (expense) credit | 93,546 | |
Net income (loss) | 968,569 | |
Identifiable long-lived assets | 31,423,660 | |
Total assets | $ 99,826,945 |
Segment Information (Details)_2
Segment Information (Details) - Schedule of net revenues from manufacture of batteries by products - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
High power lithium batteries used in: | ||
Total consolidated revenue | $ 80,196,298 | $ 9,416,049 |
Net revenues by product [Member] | ||
High power lithium batteries used in: | ||
Net revenues | 65,175,612 | |
Net revenues by product [Member] | Electric vehicles [Member] | ||
High power lithium batteries used in: | ||
Net revenues | 309 | 100,976 |
Net revenues by product [Member] | Light electric vehicles [Member] | ||
High power lithium batteries used in: | ||
Net revenues | 88,764 | 34,104 |
Net revenues by product [Member] | Uninterruptable supplies [Member] | ||
High power lithium batteries used in: | ||
Net revenues | 14,931,613 | 8,763,583 |
Net revenues by product [Member] | Trading of raw materials used in lithium batteries [Member] | ||
High power lithium batteries used in: | ||
Net revenues | 517,386 | |
Net revenues by product [Member] | Total high power lithium batteries used [Member] | ||
High power lithium batteries used in: | ||
Net revenues | 15,020,686 | 9,416,049 |
Net revenues by product [Member] | Cathode [Member] | ||
High power lithium batteries used in: | ||
Net revenues | 28,362,877 | |
Net revenues by product [Member] | Precursor [Member] | ||
High power lithium batteries used in: | ||
Net revenues | $ 36,812,735 |
Segment Information (Details)_3
Segment Information (Details) - Schedule of net revenues from manufacture of batteries by geographical areas - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Information (Details) - Schedule of net revenues from manufacture of batteries by geographical areas [Line Items] | ||
Net revenues | $ 80,196,298 | $ 9,416,049 |
Mainland China [Member] | ||
Segment Information (Details) - Schedule of net revenues from manufacture of batteries by geographical areas [Line Items] | ||
Net revenues | 71,996,013 | 7,625,793 |
Europe [Member] | ||
Segment Information (Details) - Schedule of net revenues from manufacture of batteries by geographical areas [Line Items] | ||
Net revenues | 8,134,906 | 1,789,045 |
Others [Member] | ||
Segment Information (Details) - Schedule of net revenues from manufacture of batteries by geographical areas [Line Items] | ||
Net revenues | $ 65,379 | $ 1,211 |