Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 7-May-14 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Trading Symbol | 'kndi | ' |
Entity Registrant Name | 'Kandi Technologies Group, Inc. | ' |
Entity Central Index Key | '0001316517 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 40,743,821 |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well Known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $20,498,275 | $12,762,369 |
Restricted cash | 0 | 1,636 |
Accounts receivable | 22,674,057 | 31,370,862 |
Inventories (net of provision for slow moving inventory of $349,850 and $352,734 as of March 31, 2014 and December 31, 2013, respectively) | 13,646,998 | 9,187,714 |
Notes receivable | 35,078,977 | 13,794,094 |
Other receivables | 705,771 | 556,904 |
Prepayments and prepaid expenses | 461,395 | 505,513 |
Due from employees | 42,759 | 34,272 |
Advances to suppliers | 16,470,855 | 8,867,074 |
Amount due from JV Company, net | 21,625,758 | 2,917,592 |
Deferred tax | 252,684 | 13,706 |
Total Current Assets | 131,457,529 | 80,011,736 |
LONG-TERM ASSETS | ' | ' |
Plant and equipment, net | 27,945,044 | 29,333,516 |
Land use rights, net | 14,246,146 | 14,453,191 |
Construction in progress | 16,222 | 16,356 |
Deferred taxes | 0 | 81,076 |
Investment in associated company | 80,356 | 96,838 |
Investment in JV Company | 80,399,179 | 79,331,930 |
Goodwill | 322,591 | 322,591 |
Intangible assets | 638,972 | 659,496 |
Total Long-Term Assets | 123,648,510 | 124,294,994 |
TOTAL ASSETS | 255,106,039 | 204,306,730 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 44,089,700 | 22,843,143 |
Other payables and accrued expenses | 3,332,258 | 2,422,613 |
Short-term bank loans | 33,742,132 | 34,020,281 |
Customer deposits | 135,398 | 44,404 |
Notes payable | 14,599,961 | 16,683,023 |
Income tax payable | 542,224 | 1,362,828 |
Due to employees | 9,645 | 10,297 |
Due to related party | 0 | 0 |
Deferred taxes | 21,626 | 0 |
Financial derivate - liability | 21,332,440 | 9,256,827 |
Total Current Liabilities | 117,805,384 | 86,643,416 |
LONG-TERM LIABILITIES | ' | ' |
Deferred tax | 1,194,424 | 1,009,477 |
Bond payable | 12,977,743 | 13,084,724 |
Financial derivatives - liability | 4,014,614 | 15,042,994 |
Total Long-Term Liabilities | 18,186,781 | 29,137,195 |
TOTAL LIABILITIES | 135,992,165 | 115,780,611 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, $0.001 par value; 100,000,000 shares authorized; 40,721,321 and 37,012,904 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 40,721 | 37,013 |
Additional paid-in capital | 122,636,097 | 76,754,774 |
Retained earnings (the restricted portion is $3,807,551 and $3,807,551 at March 31, 2014 and December 31, 2013, respectively) | -9,967,074 | 4,119,086 |
Accumulated other comprehensive income | 6,404,130 | 7,615,246 |
TOTAL STOCKHOLDERS' EQUITY | 119,113,874 | 88,526,119 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $255,106,039 | $204,306,730 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Reserve for slow moving inventory | $349,850 | $352,734 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 40,721,321 | 37,012,904 |
Common stock, shares outstanding (in shares) | 40,721,321 | 37,012,904 |
Restricted Retained Earnings | $3,807,551 | $3,807,551 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
REVENUES, NET | $40,171,304 | $14,662,521 |
COST OF GOODS SOLD | -35,310,895 | -11,290,490 |
GROSS PROFIT | 4,860,409 | 3,372,031 |
Research and development | -1,172,257 | -689,665 |
Selling and marketing | -71,257 | -89,614 |
General and administrative | -6,470,766 | -692,964 |
(LOSS) INCOME FROM CONTINUING OPERATIONS | -2,853,871 | 1,899,788 |
Interest (expense) income, net | -471,180 | -670,208 |
Change in fair value of financial instruments | -12,314,171 | 990,395 |
Government grants | 0 | 0 |
Share of (loss) in associated companies | -15,805 | -14,023 |
Share of profit after tax of JV | 1,728,356 | 0 |
Other income, net | 59,580 | 122,365 |
(LOSS) INCOME BEFORE INCOME TAXES | -13,867,091 | 2,328,317 |
INCOME TAX EXPENSE | -219,069 | -91,444 |
NET (LOSS) INCOME | -14,086,160 | 2,236,873 |
OTHER COMPREHENSIVE INCOME | ' | ' |
Foreign currency translation | -1,211,116 | 584,915 |
COMPREHENSIVE INCOME (LOSS) | ($15,297,276) | $2,821,788 |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 39,597,785 | 32,298,832 |
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 39,597,785 | 32,539,339 |
NET (LOSS) INCOME PER SHARE, BASIC | ($0.36) | $0.07 |
NET (LOSS) INCOME PER SHARE, DILUTED | ($0.36) | $0.07 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOW (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net (loss) income | ($14,086,160) | $2,236,873 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 1,386,527 | 2,109,977 |
Deferred taxes | 44,801 | -144,911 |
Change of derivative instrument's fair value | 12,314,171 | -990,395 |
Loss in investment in associated company | 15,805 | 14,023 |
Share of (profit) after tax of JV | -1,728,356 | 0 |
(Increase) Decrease In: | ' | ' |
Accounts receivable | 8,501,760 | -4,440,829 |
Inventories | -4,567,411 | -2,901,362 |
Other receivables and prepaid expenses | -154,488 | -88,166 |
Due from employees | -9,402 | -2,418 |
Prepayments and prepaid expenses | -7,691,861 | 2,717,021 |
Amount due from JV | -18,868,380 | 0 |
Increase (Decrease) In: | ' | ' |
Accounts payable | 21,589,347 | 1,990,665 |
Other payables and accrued liabilities | 930,528 | -85,177 |
Customer deposits | 92,022 | -268,344 |
Income tax payable | -815,354 | -425,109 |
Net cash (used in) provided by operating activities | -3,046,451 | -278,152 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of plant and equipment | -119,476 | -8,698 |
Issuance of notes receivable | -21,553,430 | -1,940,690 |
Deposit for acquisition | 0 | -14,103,172 |
Net cash provided by (used in) investing activities | -21,672,906 | -16,052,560 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Restricted cash | 1,634 | 7,954,409 |
Proceeds from short-term bank loans | 817,013 | 12,727,059 |
Repayments of short-term bank loans | -817,013 | -12,727,059 |
Repayments of notes payable | -1,960,832 | -3,181,765 |
Common stock and warrants issued | 11,067,734 | 0 |
Warrant exercise | 20,484,279 | 3,244,318 |
Option exercise & other financing | 3,066,081 | 38,100 |
Net cash provided by financing activities | 32,658,896 | 8,055,062 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,939,539 | -8,275,650 |
Effect of exchange rate changes on cash | -203,633 | 128,242 |
Cash and cash equivalents at beginning of period | 12,762,369 | 12,135,096 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 20,498,275 | 3,987,688 |
SUPPLEMENTARY CASH FLOW INFORMATION | ' | ' |
Income taxes paid | 1,034,422 | 516,554 |
Interest paid | $580,044 | $553,089 |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITIES | 3 Months Ended |
Mar. 31, 2014 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Text Block] | ' |
NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Kandi Technologies Group, Inc. (“Kandi Technologies”) was incorporated under the laws of the State of Delaware on March 31, 2004. Kandi Technologies changed its name from Stone Mountain Resources, Inc. to Kandi Technologies, Corp. on August 13, 2007. On December 21, 2012, Kandi Technologies changed its name to Kandi Technologies Group, Inc. As used herein, the term the “Company” means Kandi Technologies and its operating subsidiaries, as described below. | |
Headquartered in the Jinhua city, Zhejiang Province, China, the Company is one of China’s leading producers and manufacturers of electrical vehicles, all-terrain vehicles, go-karts, specialized utility vehicles and a variety of other specialty vehicles for sale in the People’s Republic of China (the “PRC”) and global markets. The Company conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”), and the partial and wholly-owned subsidiaries of Kandi Vehicles. | |
The Company’s organizational chart is as follows: | |
[Please see HTML for organizational chart] | |
Operating Subsidiaries: | |
Pursuant to relevant agreements executed in January 2011, Kandi Vehicles is entitled to 100% of the economic benefits, voting rights and residual interests ( 100% profits and loss absorption rate) of Jinhua Kandi New Energy Vehicles Co., Ltd. (“Kandi New Energy”), a company in which Kandi Vehicles has a 50% interest. | |
Jinhua Three Parties New Energy Vehicles Service Co., Ltd. (“Jinhua Service”) was formed as a joint venture, by and among our wholly-owned subsidiary, Kandi Vehicles, the State Grid Power Corporation and Tianneng Power International. The Company, indirectly through Kandi Vehicles, has a 30% ownership interest in Jinhua Service. | |
In April 2012, pursuant to a share exchange agreement, the Company acquired 100% of Yongkang Scrou Electric Co, Ltd.(“Yongkang Scrou”), a manufacturer of automobile and electric vehicle parts. | |
In March 2013, pursuant to a joint venture agreement (the “JV Agreement”) entered into between Kandi Vehicles and Shanghai Maple Guorun Automobile Co., Ltd. (“Shanghai Maple”), a 99%-owned subsidiary of Geely | |
Automobile Holdings Ltd. (“Geely”), the parties established Zhejiang Kandi Electric Vehicles Co., Ltd. (the “JV Company”) to develop, manufacture and sell electrical vehicles (“EVs”) and related auto parts. Each of Kandi Vehicles and Shanghai Maple has a 50% ownership interest in the JV Company. In March 2014, the JV Company changed its name to Kandi Electric Vehicles Group Co., Ltd. | |
In March 2013, Kandi Vehicles formed Kandi Electric Vehicles (Changxing) Co., Ltd. (“Kandi Changxing”) in the Changxing (National) Economic and Technological Development Zone. Kandi Changxing is engaged in the production of EVs. In fourth quarter of 2013, Kandi Vehicles entered into an ownership transfer agreement with JV Company pursuant to which Kandi Vehicles transferred 100% of its ownership in Kandi Changxing to the JV Company. The Company, indirectly through its 50% ownership interest in the JV Company, has a 50% economic interest in Kandi Changxing. | |
In April 2013, Kandi Electric Vehicles (Wanning) Co., Ltd. (“Kandi Wanning”) was formed in Wanning City of Hainan Province by Kandi Vehicles and Kandi New Energy. Kandi Vehicles has a 90% ownership in Kandi Wanning, and Kandi New Energy has the remaining 10% interest. However, Kandi Vehicles is, effectively, entitled to 100% of the economic benefits, voting rights and residual interests ( 100% profits and loss absorption rate) of Kandi Wanning because by contract it is entitled to 100% of the economic benefits, voting rights and residual interests ( 100% profits and loss absorption rate) of Kandi New Energy. | |
In July 2013, Zhejiang ZuoZhongYou Electric Vehicle Service Co., Ltd. (the “Service Company”) was formed. The JV Company has a 19% ownership interest in the Service Company. The Company, indirectly through its 50% ownership interest in the JV Company, has a 9.5% economic interest in the Service Company. | |
In November 2013, Zhejiang Kandi Electric Vehicles Jinhua Co., Ltd. (“Kandi Jinhua”) was formed by the JV Company. The JV Company has 100% ownership interest in Kandi Jinhua, and the Company, indirectly through its 50% ownership interest in the JV Company, has a 50% economic interest in Kandi Jinhua. | |
In November 2013, Zhejiang JiHeKang Electric Vehicle Sales Co., Ltd. (“JiHeKang”) was formed by the JV Company. The JV Company has 100% ownership interest in JiHeKang, and the Company, indirectly through its 50% ownership interest in the JV Company, has a 50% economic interest in JiHeKang. | |
In December 2013, the JV Company entered into an ownership transfer agreement with Shanghai Maple pursuant to which the JV Company acquired 100% ownership of Kandi Electric Vehicles (Shanghai) Co., Ltd. (“Kandi Shanghai”). As a result, Kandi Shanghai is a wholly-owned subsidiary of the JV Company, and the Company, indirectly through its 50% ownership interest in the JV Company, has a 50% economic interest in Kandi Shanghai. | |
In January 2014, Zhejiang Kandi Electric Vehicles Jiangsu Co., Ltd. (“Kandi Jiangsu”) was formed by the JV Company. The JV Company has 100% ownership interest in Kandi Jiangsu, and the Company, indirectly through its 50% ownership interest in the JV Company, has a 50% economic interest in Kandi Jiangsu. | |
The Company’s primary business operations are the design, development, manufacturing and commercialization of EVs, all-terrain vehicles (“ATVs”), go-karts, and other related specialized automobiles. As part of its strategic objective to become a leader in electric vehicles manufacturing and related services, the Company has increased its focus on fuel efficient, pure EVs with a particular emphasis on expanding its market share in China. |
LIQUIDITY
LIQUIDITY | 3 Months Ended |
Mar. 31, 2014 | |
LIQUIDITY [Text Block] | ' |
NOTE 2 – LIQUIDITY | |
As of March 31, 2014, the Company’s working capital surplus was $13,652,145. | |
As of March 31, 2014, the amount of advances to suppliers was $16,470,855, which included the advance of a RMB97 million ($15,735,514) prepayment by Kandi Wanning to equipment supplier - Nanjing Shangtong Auto Technologies Co., Ltd. (“Nanjing Shangton”) for an equipment purchase. The equipment will be purchased and delivered according to the construction schedule and development of Kandi Wanning. This advance will be used to off-set the equipment purchase price upon delivery. | |
As of March 31, 2014, the Company had credit lines from commercial banks of $53,208,747, of which $33,742,132 was used as of March 31, 2014. | |
The Company believes that its cash flows generated internally may not be sufficient to support the growth of future operations and to repay short-term bank loans for the next twelve (12) months, if needed. However, the Company believes its access to existing financing sources and established relationships with PRC banks will enable it to meet its obligations and fund its ongoing operations. | |
The Company has historically financed its operations through short-term commercial bank loans from PRC banks. The term of these loans is typically for one year, and upon the payment of all outstanding principal and interest in a particular loan, the banks have typically rolled over the loan for an additional one-year terms, with adjustments made to the interest rate to reflect prevailing market rates. The Company believes this situation has not changed and that short-term bank loans will be available on normal trade terms if needed. | |
On March 24, 2014, the Company raised approximately $11.05 million from the sale to two institutional investors of an aggregate of 606,000 shares of its common stock at a price of $18.24 per share. As part of the transaction, the Company also issued to the investors warrants for the purchase of up to 90,900 shares of common stock at an exercise price of $22.80 per share, which warrants have a term of 18 months from the date of issuance. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
BASIS OF PRESENTATION [Text Block] | ' |
NOTE 3 - BASIS OF PRESENTATION | |
The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States and have been consistently applied in the presentation of financial statements. | |
The financial information included herein for the three-month periods ended March 31, 2014 and 2013 is unaudited; however, such information reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the Company’s condensed consolidated financial statements for these interim periods . | |
The results of operations for the three-month period ended March 31, 2014 are not necessarily indicative of the results expected for the entire fiscal year ending December 31, 2014. |
PRINCIPLES_OF_CONSOLIDATION
PRINCIPLES OF CONSOLIDATION | 3 Months Ended | |
Mar. 31, 2014 | ||
PRINCIPLES OF CONSOLIDATION [Text Block] | ' | |
NOTE 4 – PRINCIPLES OF CONSOLIDATION | ||
The consolidated financial statements reflect the accounts of the Company and its ownership interest in following subsidiaries: | ||
(i) | Continental Development Limited. (“Continental”) (a wholly-owned subsidiary of the Company) | |
(ii) | Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”) (a wholly-owned subsidiary of Continental) | |
(iii) | Jinhua Three Parties New Energy Vehicles Service Co., Ltd. (“Jinhua Service”) (a 30% owned subsidiary of Kandi Vehicles) | |
(iv) | Jinhua Kandi New Energy Vehicles Co., Ltd. (“Kandi New Energy”) (a 50% owned subsidiary of Kandi Vehicles) | |
(v) | Yongkang Scrou Electric. Co., Ltd (“Yongkang Scrou”) (a wholly-owned subsidiary of Kandi Vehicles) | |
(vi) | Kandi Electric Vehicles (Changxing) Co., Ltd. (“Kandi Changxing”) (a wholly-owned subsidiary of the JV Company) | |
(vii) | Zhejiang Kandi Electric Vehicles Co., Ltd. (the “JV Company”) (a 50% owned subsidiary of Kandi Vehicles) | |
(viii) | Kandi Electric Vehicles (Wanning) Co., Ltd. (“Kandi Wanning”) (a subsidiary 10% owned by Kandi New Energy and 90% owned by Kandi Vehicles) | |
(ix) | Zhejiang ZuoZhongYou Electric Vehicle Service Co., Ltd. (the “Service Company”) (a 19% owned subsidiary of the JV Company). | |
(x) | Zhejiang Kandi Electric Vehicles Jinhua Co., Ltd. (“Kandi Jinhua”) (a wholly-owned subsidiary of the JV Company) | |
(xi) | Zhejiang JiHeKang Electric Vehicle Sales Co., Ltd. (“JiHeKang”) (a wholly-owned subsidiary of the JV Company) | |
(xii) | Kandi Electric Vehicles (Shanghai) Co., Ltd. (“Kandi Shanghai”) (a wholly-owned subsidiary of the JV Company) | |
(xiii) | Kandi Electric Vehicles Jiangsu Co., Ltd. (“Kandi Jiangsu”) (a wholly-owned subsidiary of the JV Company) | |
Inter-company accounts and transactions have been eliminated in consolidation. |
USE_OF_ESTIMATES
USE OF ESTIMATES | 3 Months Ended |
Mar. 31, 2014 | |
USE OF ESTIMATES [Text Block] | ' |
NOTE 5 – USE OF ESTIMATES | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made; however actual results when ultimately realized could differ from those estimates. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | ' | ||||||||||||
NOTE 6 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
(a) Economic and Political Risks | |||||||||||||
The Company’s operations are conducted in the PRC. As a result, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC economy. In addition, the Company’s earnings are subject to movements in foreign currency exchange rates when transactions are denominated in Renminbi (“RMB”), which is the Company’s functional currency. Accordingly, the Company’s operating results are affected by changes in the exchange rate between the U.S. dollar and the RMB. | |||||||||||||
The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s performance may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | |||||||||||||
(b) Fair Value of Financial Instruments | |||||||||||||
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. | |||||||||||||
These tiers include: | |||||||||||||
• | Level 1—defined as observable inputs such as quoted prices in active markets; | ||||||||||||
• | Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and | ||||||||||||
• | Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||
As of March 31, 2014, the Company’s assets, measured at fair value, on a recurring basis, subject to the disclosure requirements of ASC 820, were as follows: | |||||||||||||
Fair Value | Significant | ||||||||||||
Measurements | Active Markets | Other | Significant | ||||||||||
at Reporting | for Identical | Observable | Unobservable | ||||||||||
Date Using | Assets | Inputs | Inputs | ||||||||||
Quoted Prices | |||||||||||||
in Carrying | |||||||||||||
value as of | |||||||||||||
March 31, | |||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Cash and cash equivalents | $ | 20,498,275 | $ | 20,498,275 | - | - | |||||||
Warrants | 25,347,054 | - | - | 25,347,054 | |||||||||
Cash and cash equivalents consist primarily of highly-rated money market funds at a variety of well-known institutions with original maturities of three months or less. Restricted cash represents time deposits on account, some of which are used to secure short-term bank loans and notes payable. The original cost of these assets approximates fair value due to their short term maturity. | |||||||||||||
Warrants, which are accounted as liabilities, are treated as derivative instruments, which will be measured at each reporting date for their fair value using Level 3 inputs. Also see Note 6 section (t). | |||||||||||||
(c) Cash and Cash Equivalents | |||||||||||||
The Company considers highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. | |||||||||||||
Restricted cash, as of March 31, 2014 and December 31, 2013, represented time deposits on account, some of which were used to secure short-term bank loans and notes payable. As of March 31, 2014, the Company’ s restricted cash was $0. | |||||||||||||
(d) Inventories | |||||||||||||
Inventories are stated at the lower of cost or net realizable value (market value). The cost of raw materials is determined on the basis of weighted average. The cost of finished goods is determined on the weighted average basis and comprises direct materials, direct labor and an appropriate proportion of overhead. | |||||||||||||
Net realizable value is based on estimated selling prices less any further costs expected to be incurred for completion and selling expense. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence, or impaired balances. | |||||||||||||
(e) Accounts Receivable | |||||||||||||
Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts is recorded in periods in which the Company determines a loss is probable, based on its assessment of specific factors, such as troubled collections, historical experience, accounts aging, ongoing business relations and other factors. Accounts are written off after an exhaustive collection effort. If accounts receivable are to be provided for, or written off, they are recognized in the consolidated statement of operations within the operating expenses line item. As of March 31, 2014 and December 31, 2013, the Company had no allowance for doubtful accounts, as per the management’s judgment based on their best knowledge. | |||||||||||||
As of March 31, 2014 and December 31, 2013, the credit terms with the Company’s customers were typically 90 to 120 days after delivery. | |||||||||||||
(f) Note receivable | |||||||||||||
Notes receivable represent short-term loans to third parties with the maximum term of one year. Interest income will be recognized according to each agreement between a borrower and the Company on an accrual basis. If notes receivable are paid back, or written off, that transaction will be recognized in the relevant year if the loan default is probable, reasonably assured and the loss can be reasonably estimated. The Company will recognize income if the written-off loan is recovered at a future date. In case of any foreclosure proceedings or legal actions being taken, the Company will provide an accrual for the related foreclosure expenses and related litigation expenses. | |||||||||||||
(g) Prepayments | |||||||||||||
Prepayments represent cash paid in advance to suppliers. As of March 31, 2014, prepayments included advances to raw material suppliers, mold manufacturers, and suppliers of equipment. The Company intends to pay, as a prepaid expense, certain other expenses, such as water and electricity fees. | |||||||||||||
Advances for raw materials purchases typically are settled within two months by the Company’s receipt of raw materials. | |||||||||||||
(h) Plant and Equipment | |||||||||||||
Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets estimated useful lives, using the straight-line method. Leasehold improvements are amortized over the life of the asset or the term of the lease, whichever is shorter. Estimated useful lives are as follows: | |||||||||||||
Buildings | 30 years | ||||||||||||
Machinery and equipment | 10 years | ||||||||||||
Office equipment | 5 years | ||||||||||||
Motor vehicles | 5 years | ||||||||||||
Molds | 5 years | ||||||||||||
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to expense as incurred, whereas significant renewals and betterments are capitalized. | |||||||||||||
(i) Construction in Progress | |||||||||||||
Construction in progress represents the direct costs of construction, the acquisition cost of buildings or machinery and design fees. Capitalization of these costs ceases, and the construction in progress is transferred to plant and equipment, when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until the assets are completed and ready for their intended use. | |||||||||||||
(j) Land Use Rights | |||||||||||||
According to Chinese laws, land in the PRC is owned by the government and land ownership rights cannot be sold to an individual or to a private company. However, the government grants the user a “land use right” to use the land. The land use rights granted to the Company are being amortized using the straight-line method over the term of fifty years. | |||||||||||||
(k) Accounting for the Impairment of Long-Lived Assets | |||||||||||||
The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in Statement of Financial Accounting Standards (“SFAS”) No. 144 (now known as “ASC 360”). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose. | |||||||||||||
During the reporting period, no impairment loss was recognized. | |||||||||||||
(l) Revenue Recognition | |||||||||||||
Revenue represents the invoiced value of goods sold. Revenue is recognized when the Company ships the goods to its customers and all of the following criteria are met: | |||||||||||||
Persuasive evidence of an arrangement exists; | |||||||||||||
Delivery has occurred or services have been rendered; | |||||||||||||
The seller’s price to the buyer is fixed or determinable; and | |||||||||||||
Collectability is reasonably assured. | |||||||||||||
When the products are transferred to the other party while the risks are transferred to it, and at that time the Company recognizes revenue. | |||||||||||||
(m) Research and Development | |||||||||||||
Expenditures relating to the development of new products and processes, including significant improvements to existing products, are expensed as incurred. Research and development expenses were $1,172,257 and $689,665 for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||
(n) Government Grant | |||||||||||||
Grants received from the PRC Government to fund a portion of the Company’s technical research and development efforts are recognized when the proceeds are received or collectible. | |||||||||||||
During the three months ended March 31, 2014 and 2013, the Company did not receive any grants from the PRC government. | |||||||||||||
(o) Income Taxes | |||||||||||||
The Company accounts for income tax using an asset and liability approach, which allows for the recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The accounting for deferred tax calculation represents the management’s best estimate on the most likely future tax consequences of events that have been recognized in our financial statements or tax returns and related future anticipation. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. | |||||||||||||
(p) Foreign Currency Translation | |||||||||||||
The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). Capital accounts of the consolidated financial statements are translated into United States dollars from RMB at their historical exchange rates when the capital transactions occurred. | |||||||||||||
Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the reporting period, which rates are obtained from the website: http://www.oanda.com | |||||||||||||
March 31, | December 31, | March 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||||
Period end RMB : USD exchange rate | 6.1644 | 6.114 | 6.2816 | ||||||||||
Average RMB : USD exchange rate | 6.1199 | 6.1982 | 6.2858 | ||||||||||
(q) Comprehensive Income | |||||||||||||
Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes. | |||||||||||||
(r) Segments | |||||||||||||
In accordance with ASC 280-10, Segment Reporting (“ASC 280-10”), the Company’s chief operating decision makers rely upon consolidated results of operations when making decisions about allocating resources and assessing performance of the Company. As a result of the assessment made by the chief operating decision makers, the Company has only one single operating segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. | |||||||||||||
(s) Stock Option Cost | |||||||||||||
The Company’s stock option cost is recorded in accordance with ASC 718 and ASC 505. | |||||||||||||
The fair value of stock options is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s common stock. The expected life assumption is primarily based on the expiration date of the option. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||
Stock option expense recognized is based on awards expected to vest, and there were no estimated forfeitures. ASC standards require forfeitures to be estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from those estimates. | |||||||||||||
The stock-based option expense for the period ended March 31, 2014 was $0. See Note 18. | |||||||||||||
(t) Warrant Cost | |||||||||||||
The Company’s warrant costs are recorded in liabilities and equities, respectively, in accordance with ASC 480, ASC 505 and ASC 815. | |||||||||||||
The fair value of a warrant, which is classified as a liability, is estimated using the Black-Scholes-Merton model and the lattice valuation model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s common stock. The expected life assumption is primarily based on the expiration date of the warrant. The risk-free interest rate for the expected term of the warrant is based on the U.S. Treasury yield curve in effect at the time of measurement. The warrants, which are freestanding derivatives and are classified as liabilities on the balance sheet, will be measured at fair value on each reporting date, with decreases in fair value recognized in earnings and increases in fair values were recognized in expenses. | |||||||||||||
The fair value of equity-based warrants, which are not considered derivatives under ASC 815, is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s common stock. The expected life assumption is primarily based on the expiration date of the warrant. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||
(u) Goodwill | |||||||||||||
The Company allocates goodwill to reporting units based on the reporting unit expected to benefit from the business combination. The Company evaluates its reporting units on an annual basis and, if necessary, reassigns goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. | |||||||||||||
Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than not threshold is met, the Company performs a quantitative impairment test. At March 31, 2014, the Company determined that goodwill was not impaired. | |||||||||||||
(v) Intangible assets | |||||||||||||
Intangible assets consist of tradenames and customer relations associated with the purchase price allocation of Yongkang Scrou. Such assets are being amortized over their estimated useful lives of 9.7 years. Intangible assets are amortized as of March 31, 2014. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2014 | |
NEW ACCOUNTING PRONOUNCEMENTS [Text Block] | ' |
NOTE 7 – NEW ACCOUNTING PRONOUNCEMENTS | |
Recent Accounting Pronouncements | |
The FASB has issued Accounting Standards Update (ASU) No. 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements. The guidance addresses the consolidation of lessors in certain common control leasing arrangements and is based on a consensus reached by the Private Company Council (PCC). Under current U.S. GAAP, a company is required to consolidate an entity in which it has a controlling financial interest. The assessment of controlling financial interest is performed under either: (a) a voting interest model; or (b) a variable interest entity model. In a variable interest entity model, the company has a controlling financial interest when it has: (a) the power to direct the activities that most significantly affect the economic performance of the entity; and (b) the obligation to absorb losses or the right to receive benefits of the entity that could be potentially significant to the entity. To determine which model applies, a company preparing financial statements must first determine whether it has a variable interest in the entity being evaluated for consolidation and whether that entity is a variable interest entity. The new guidance allows a private company to elect (when certain conditions exist) not to apply the variable interest entity guidance to a lessor under common control. Instead, the private company would make certain disclosures about the lessor and the leasing arrangement. | |
Under the amendments in this ASU, a private company lessee could elect an alternative not to apply variable interest entity guidance to a lessor when:-The private company lessee and the lessor are under common control;-The private company lessee has a leasing arrangement with the lessor;-Substantially all of the activity between the private company lessee and the lessor is related to the leasing activities (including supporting leasing activities) between those two companies, and-If the private company lessee explicitly guarantees or provides collateral for any obligation of the lessor related to the asset leased by the private company, then the principal amount of the obligation at inception does not exceed the value of the asset leased by the private company from the lessor. If elected, the accounting alternative should be applied to all leasing arrangements meeting the above conditions. The alternative should be applied retrospectively to all periods presented, and is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted for all financial statements that have not yet been made available for issuance. | |
The FASB has issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. The amendments in this ASU enhance convergence between U.S. GAAP and International Financial Reporting Standards (IFRS). Part of the new definition of discontinued operation is based on elements of the definition of discontinued operations in IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations. The Company does not expect the adoption of 2014-08 to have a material effect on its operating results or financial position. | |
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 financial statements upon adoption. |
CONCENTRATIONS
CONCENTRATIONS | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
CONCENTRATIONS [Text Block] | ' | ||||
NOTE 8 – CONCENTRATIONS | |||||
(a) Customers | |||||
For the three-month periods ended March 31, 2014, the Company’s major customers, each of whom accounted for more than 10% of the Company’s consolidated revenue, were as follows: | |||||
Sales | Accounts Receivable | ||||
Three Months | Three Months | ||||
Ended March 31, | Ended March 31, | December 31, | |||
Major Customers | 2014 | 2013 | 31-Mar-14 | 2013 | |
Kandi Electric Vehicles (Changxing) Co., Ltd. | 43% | - | - | - | |
Shanghai Huapu Auto Co., Ltd | 19% | - | 22% | 52% | |
Kandi Electric Vehicles (Shanghai) Co., Ltd. | 17% | - | - | - | |
(b) Suppliers | |||||
For the three-month periods ended March 31, 2014, the Company’s material suppliers, each of whom accounted for more than 10% of the Company’s total purchases, were as follows: | |||||
Purchases | Accounts Payable | ||||
Three Months | Three Months | ||||
Ended March 31, | Ended March 31, | December 31, | |||
Major Suppliers | 2014 | 2013 | 31-Mar-14 | 2013 | |
Zhejiang Wanxiang Yineng Power Battery Co., Ltd | 18% | - | 18% | 3% | |
Zhongju (Tianjin) New Energy Investment Co., Ltd. | 15% | - | 13% | - | |
Zhejiang Mengdeli Electric Co., Ltd. | 14% | 49% | - | 13% | |
Shandong Henyuan New Energy Tech Co., Ltd. | 14% | - | 12% | - |
INCOME_PER_SHARE
INCOME PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INCOME PER SHARE [Text Block] | ' | |||||||
NOTE 9 –INCOME (LOSS) PER SHARE | ||||||||
The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share , which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the reporting period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options, warrants and convertible notes (using the if-converted method). For the three months ended March 31, 2014 and 2013, the number of potentially dilutive common shares was 0 and 240,507, respectively. | ||||||||
The following table sets forth the computation of basic and diluted net income per common share: | ||||||||
Three months Ended March 31, | 2014 | 2013 | ||||||
Net (loss) income | $ | (14,086,160 | ) | $ | 2,236,873 | |||
Weighted – average shares of common stock outstanding | ||||||||
Basic | 39,597,785 | 32,298,832 | ||||||
Dilutive shares | - | 240,507 | ||||||
Diluted | 39,597,785 | 32,539,339 | ||||||
Basic (loss) income per share | $ | (0.36 | ) | $ | 0.07 | |||
Diluted (loss) income per share | $ | (0.36 | ) | $ | 0.07 | |||
Also see Note 18. |
INVENTORIES
INVENTORIES | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
INVENTORIES [Text Block] | ' | ||||||
NOTE 10 - INVENTORIES | |||||||
Inventories are summarized as follows: | |||||||
31-Mar-14 | |||||||
(Unaudited) | 31-Dec-13 | ||||||
Raw material | $ | 7,150,481 | $ | 2,646,041 | |||
Work-in-progress | 5,458,551 | 5,065,126 | |||||
Finished goods | 1,387,816 | 1,829,281 | |||||
13,996,848 | 9,540,448 | ||||||
Less: reserve for slow moving | |||||||
inventories | (349,850 | ) | (352,734 | ) | |||
Inventories, net | $ | 13,646,998 | $ | 9,187,714 |
NOTES_RECEIVABLE
NOTES RECEIVABLE | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
NOTES RECEIVABLE [Text Block] | 'NOTE 11 - NOTES RECEIVABLE | ||||||
Notes receivable are summarized as follows: | |||||||
31-Mar-14 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Notes receivable from unrelated companies: | |||||||
Due September 30, 2014, interest at 9.6% per annum 1 | $ | 27,193,957 | $ | 13,794,094 | |||
Due September 30, 2014, interest at 7.2% per annum 2 | 6,262,802 | - | |||||
Due September 30, 2014, interest at 36.0% per annum 3 | 1,622,218 | - | |||||
35,078,977 | 13,794,094 | ||||||
Bank acceptance notes: | |||||||
Bank acceptance notes | - | - | |||||
Notes receivable | $ | 35,078,977 | $ | 13,794,094 | |||
Details of Notes receivable from unrelated parties as of December 31, 2013 | |||||||
Manner of | |||||||
Index | Amount ($) | Counter party | Relationship | Purpose of Loan | settlement | ||
1 | 13,794,094 | Yongkang HuiFeng | No relationship | Receive interest | Not due | ||
Guarantee Co., Ltd | beyond loan | income | |||||
Details of Notes receivable from unrelated parties as of March 31, 2014 | |||||||
Manner of | |||||||
Index | Amount ($) | Counter party | Relationship | Purpose of Loan | settlement | ||
1 | 27,193,957 | Yongkang HuiFeng | No relationship | Receive interest | Not due | ||
Guarantee Co., Ltd | beyond loan | income | |||||
2 | 6,262,802 | Kandi Investment | No relationship | Receive interest | Not due | ||
Group Co., Ltd | beyond loan | income | |||||
3 | 1,622,218 | Zhejiang ZanGao | Not due | ||||
Investment | No relationship | Receive interest | |||||
Management Co., Ltd | beyond loan | income |
LAND_USE_RIGHTS
LAND USE RIGHTS | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
LAND USE RIGHTS [Text Block] | ' | ||||||
NOTE 12 – LAND USE RIGHTS | |||||||
Land use rights consisted of the following: | |||||||
31-Mar-14 | |||||||
(Unaudited) | 31-Dec-13 | ||||||
Cost of land use rights | $ | 16,090,568 | $ | 16,223,208 | |||
Less: Accumulated amortization | (1,844,422 | ) | (1,770,017 | ) | |||
Land use rights, net | $ | 14,246,146 | $ | 14,453,191 | |||
As of March 31, 2014 and December 31, 2013, the net book value of land use rights pledged as collateral for the Company’s bank loans was $9,839,526 and $9,983,647, respectively. Also see Note 14. | |||||||
The amortization expense for the three months ended March 31, 2014 and 2013 was $89,523 and $87,160, respectively. | |||||||
Amortization expense for the next five years and thereafter is as follows: | |||||||
2014 (nine months) | $ | 268,570 | |||||
2015 | 358,093 | ||||||
2016 | 358,093 | ||||||
2017 | 358,093 | ||||||
2018 | 358,093 | ||||||
Thereafter | 12,545,204 | ||||||
Total | $ | 14,246,146 |
PLANT_AND_EQUIPMENT
PLANT AND EQUIPMENT | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
PLANT AND EQUIPMENT [Text Block] | ' | ||||||
NOTE 13 – PLANT AND EQUIPMENT | |||||||
Plant and equipment consisted of the following: | |||||||
31-Mar-14 | |||||||
(Unaudited) | 31-Dec-13 | ||||||
At cost: | |||||||
Buildings | $ | 14,467,322 | $ | 14,514,873 | |||
Machinery and equipment | 10,719,013 | 10,771,899 | |||||
Office equipment | 258,379 | 251,690 | |||||
Motor vehicles | 286,559 | 288,004 | |||||
Moulds | 33,952,746 | 34,230,014 | |||||
59,684,019 | 60,056,480 | ||||||
Less : Accumulated depreciation | |||||||
Buildings | $ | (3,107,795 | ) | $ | (3,010,451 | ) | |
Machinery and equipment | (10,226,031 | ) | (10,278,409 | ) | |||
Office equipment | (201,897 | ) | (196,303 | ) | |||
Motor vehicles | (234,080 | ) | (228,442 | ) | |||
Moulds | (17,611,346 | ) | (16,648,583 | ) | |||
(31,381,149 | ) | (30,362,188 | ) | ||||
Less: provision for impairment for | |||||||
fixed assets | (357,826 | ) | (360,776 | ) | |||
Plant and equipment, net | $ | 27,945,044 | $ | 29,333,516 | |||
As of March 31, 2014 and December 31, 2013, the net book value of plant and equipment pledged as collateral for bank loans was $11,153,071 and $11,292,649, respectively. | |||||||
Depreciation expense for three months ended March 31, 2014 and 2013 was $1,276,480 and $2,002,293, respectively. |
SHORT_TERM_BANK_LOANS
SHORT TERM BANK LOANS | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
SHORT TERM BANK LOANS [Text Block] | ' | ||||||
NOTE 14 – SHORT TERM BANK LOANS | |||||||
Short-term loans are summarized as follows: | |||||||
March 31, | |||||||
2014 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Loans from Jinhua Bank | |||||||
Monthly interest only payments at 6.30% per annum, due October 10, 2014, guaranteed by Mr. Hu Xiaoming and Ms. Ling Yueping, and secured by the assets of the Company. Also see Note 12 and Note 13 | $ | 1,622,217 | $ | 1,635,590 | |||
Monthly interest only payments at 6.30% per annum, due December 2, 2014, guaranteed by Mr. Hu Xiaoming and Ms. Ling Yueping, and secured by the assets of the Company. Also see Note 12 and Note 13 | 811,109 | 817,795 | |||||
Monthly interest only payments at 6.30% per annum, due December 2, 2014, guaranteed by Zhejiang Kangli Metal Manufacturing Company, Mr. Hu Xiaoming, Ms. Ling Yueping, Mr. Lv Qingbo and Mr. Lv Qingjiang, and secured by the assets of the Company. Also see Note 12 and Note 13 | 3,244,436 | 3,271,181 | |||||
Loans from Yongkang Rural Cooperative Bank | |||||||
Monthly interest only payments at 0.927% per month, due January 31, 2015, guaranteed by Yongkang Sanli Metal Co., Ltd. | 811,109 | 817,795 | |||||
Loans from China Ever-bright Bank | |||||||
Monthly interest only payments at 6.94% per annum, due May 14, 2014, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Mr. Hu Wangyuan, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. | 12,653,300 | 12,757,606 | |||||
Loans from Shanghai Pudong Development Bank | |||||||
Monthly interest only payments at 6.60% per annum, due September 4, 2014, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming. Also see Note 12 and Note 13. | 6,488,871 | 6,542,362 | |||||
Loans from Bank of Shanghai | |||||||
Monthly interest only payments at 6.60% per annum, due December 27, 2014, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Kangli Metal Manufacturing Company and Nanlong Group Co., Ltd. | 4,866,654 | 4,906,771 | |||||
Loans from China Ever-growing Bank | |||||||
Monthly interest only payments at 7.20% per annum, due April 22, 2014, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Shuguang industrial Co., Ltd. and Zhejiang Mengdeli Electric Company. | 3,244,436 | 3,271,181 | |||||
Total | $ | 33,742,132 | $ | 34,020,281 | |||
Interest expense for the three month ended March 31, 2014 and 2013 was $578,647, and $552,930, respectively. | |||||||
As of March 31, 2014, the aggregate amount of short-term loans that was guaranteed by various third parties was $27,253,260. | |||||||
- $15,897,736 was guaranteed by Zhejiang Mengdeli Electric Co Ltd (“ZMEC”). | |||||||
- $8,111,090 was guaranteed by Zhejiang Kangli Metal Manufacturing Company, whose bank loan of $4,866,654 was guaranteed by the Company. Also see Note 23. $3,244,436 of the $8,111,090 was guaranteed by Lv Qingjiang and Lv Qingbo, two major shareholders of Zhejiang Kangli Metal Manufacturing Company. Also see Note 23. | |||||||
- $3,244,436 was guaranteed by Zhejiang Shuguang industrial Co., Ltd., whose bank loan of $4,866,654 was guaranteed by the Company. Also see Note 23. | |||||||
- $17,519,954 was guaranteed by Nanlong Group Co., Ltd., whose bank loans of $9,733,307 was also guaranteed by the Company. Also see Note 23. | |||||||
- $811,109 was guaranteed by Yonnkang Sanli Metal Co., Ltd. | |||||||
It is a common business practice among companies in the region of the PRC in which the Company is located to exchange guarantees for bank debt with no consideration given. It is considered a “favor for favor” business practice and is commonly required by Chinese lending banks, as in these cases. |
NOTES_PAYABLE
NOTES PAYABLE | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
NOTES PAYABLE [Text Block] | ' | ||||||
NOTE 15 – NOTES PAYABLE | |||||||
By issuing bank note payables rather than paying cash to suppliers, the Company can defer the payments until the date the bank note payable is due. Simultaneously, the Company needs to deposit restricted cash in banks to back up the bank note payable, while the restricted cash deposited in banks will generate interest income. | |||||||
Notes payable are summarized as follows: | |||||||
March 31,2014 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Bank acceptance notes: | |||||||
Due March 18, 2014 | $ | - | $ | 1,962,709 | |||
Due May 19, 2014 | 8,111,089 | 8,177,952 | |||||
Due May 21, 2014 | 6,488,872 | 6,542,362 | |||||
Subtotal | $ | 14,599,961 | $ | 16,683,023 | |||
Notes payable to unrelated companies: | |||||||
$ | - | $ | - | ||||
Subtotal | $ | - | $ | - | |||
Total | $ | 14,599,961 | $ | 16,683,023 | |||
All of the bank acceptance notes do not bear interest, but are subject to bank charges of 0.05% of the principal as a commission on each transaction. Bank charges for notes payable were $0 for the three months ended March 31, 2014. | |||||||
No restricted cash was held as collateral for the notes payable as of March 31, 2014. |
BOND_PAYABLE
BOND PAYABLE | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
BOND PAYABLE [Text Block] | ' | ||||||||||||
NOTE 16 – BOND PAYABLE | |||||||||||||
Due Date | Face Value | Coupon rate | Interest record date | Interest pay date | |||||||||
27-Dec-16 | $ | 12,977,743 | 11.50% | 27-Dec | 27-Dec | ||||||||
Total face value | $ | 12,977,743 | |||||||||||
On December 27, 2013, the Company issued the bond in the aggregate principal amount of RMB80,000,000 to China Ever-bright Securities Co. Ltd. and CITIC Securities Company Limited. The maturity of this bond is 3 years, and the material terms of this bond are similar to the terms of the bond issued in 2012 and repaid in August 2013, except that the interest rate is reduced to 11.5% . Bond interest is payable on December 27 in each of 2014, 2015 and 2016. |
TAXES
TAXES | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
TAXES [Text Block] | ' | ||||||
NOTE 17 – TAX | |||||||
(a) Corporation Income Tax (“CIT”) | |||||||
In accordance with the relevant tax laws and regulations of the PRC, the applicable CIT rate is 25%. However, Kandi Vehicle is qualified as a high technology company in the PRC and is entitled to pay a reduced income tax rate of 15%. | |||||||
Kandi New Energy is a subsidiary of the Company and its applicable CIT rate is 25%. | |||||||
Yongkang Scrou is a subsidiary of the Company and its applicable CIT rate was 25%. | |||||||
Kandi Wanning is a subsidiary of the Company and its applicable CIT rate is 25%. | |||||||
The Company has a 50% ownership interest in the JV Company and the JV Company’s applicable CIT rate is 25%. | |||||||
Kandi Changxing is a subsidiary of the JV Company and its applicable CIT rate is 25%. | |||||||
Service Company is a 19% investment of the JV Company and its applicable CIT rate is 25%. | |||||||
Kandi Jinhua is a subsidiary of the JV Company and its applicable CIT rate is 25%. | |||||||
JiHeKang is a subsidiary of the JV Company and its applicable CIT rate is 25%. | |||||||
Kandi Shanghai is a subsidiary of the JV Company and its applicable CIT rate is 25%. | |||||||
Kandi Jiangsu is a subsidiary of the JV Company and its applicable CIT rate is 25%. | |||||||
The Company qualifies as a high technology company in the PRC and is entitled to pay CIT at the reduced rate of 15%. However, as the tax policy in the PRC does not allow double tax benefits, the Company’s high technology tax benefit of 10% must be reduced by the research and development tax benefits to which the Company also is entitled, which amount to 25% of an amount equal to 50% of allowable research and development expenses. For the three months ended March 31, 2014, the Company’s CIT before reduction for the Company’s high technology tax benefit was $240,434, or 25% of the Company’s $961,736 of taxable income for such period reduced to $377,040 after giving effect to the Company’s research and development tax credit of $146,174 ( 25% of 50% of $1,169,395 allowable research and development expenses) for such period. To comply with the PRC policy prohibiting double tax benefits, the Company’s high technology tax benefit for the three months ended March 31, 2014 was reduced from $96,174, or 10% of the Company’s $961,736 of taxable income for such period, to $37,704, or 3.92% of such taxable income. As a result, the Company’s effective income tax rate for the three months ended March 31, 2014 was 5.88% after the research and development credit and high technology tax reduction. | |||||||
According to the PRC CIT reporting system, the CIT sales cut-off base is concurrent with the value-added tax (“VAT”), which will be reported to the State Administration of Taxation (“SAT”) on a quarterly basis. Since the VAT and CIT are accounted for on a VAT tax basis that recorded all sales on a “State provided official invoices” reporting system, the Company is reporting the CIT according to the SAT prescribed tax reporting rules. Under the VAT tax reporting system, sales cut-off is not done on an accrual basis but rather on a VAT taxable reporting basis. Therefore, when the Company adopted U.S. GAAP using an accrual basis, the sales cut-off CIT timing (due to the VAT reporting system) created a temporary sales cut-off timing difference. This difference is reflected in the deferred tax assets or liabilities calculations on the income tax estimate reported in the Company’s Annual Report on Form 10-K. | |||||||
Effective January 1, 2007, the Company adopted ASC 740, Income Taxes. The interpretation addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. | |||||||
Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. | |||||||
As of March 31, 2014, the Company did not have a liability for unrecognized tax benefits. The Company files income tax returns to the U.S. Internal Revenue Services (“IRS”) and to states in which the Company has operations. The Company is subject to U.S. federal or state income tax examinations by the IRS and relevant state tax authorities for years after 2006. During the periods open to examination, the Company had net operating loss carry forwards (“NOLs”) for U.S. federal and state tax purposes that have attributes from closed periods. Since these NOLs may be utilized in future periods, they remain subject to examination. The Company also files certain tax returns in the PRC. As of March 31, 2014, the Company was not aware of any pending income tax examinations by the PRC tax authorities. The Company’s policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of March 31, 2014, the Company had no accrued interest or penalties related to uncertain tax positions. The Company has not recorded a provision for U.S. federal income tax for the three months ended March 31, 2013 due to the net operating loss carry forward in the United States. | |||||||
Income tax expense (benefit) for the three months ended March 31, 2014 and 2013 is summarized as follows: | |||||||
For the Three Months Ended | |||||||
March 31, | |||||||
(Unaudited) | |||||||
2014 | 2013 | ||||||
Current: | |||||||
Provision for CIT | $ | 108,101 | $ | 91,444 | |||
Provision for Federal Income Tax | - | - | |||||
Deferred: | |||||||
Provision for CIT | - | - | |||||
Income tax expense (benefit) | $ | 108,101 | $ | 91,444 | |||
The Company’s income tax expense (benefit) differs from the “expected” tax expense for the three months ended March 31, 2014 and 2013 (computed by applying the U.S. Federal Income Tax rate of 34% and PRC CIT rate of 25%, respectively, to income before income taxes) as follows: | |||||||
For the Three Months Ended | |||||||
March 31, | |||||||
(Unaudited) | |||||||
2014 | 2013 | ||||||
Computed “expected” expense | $ | (3,776,682 | ) | $ | 204,940 | ||
Favorable tax rate | (183,878 | ) | (124,314 | ) | |||
Permanent differences | (79,804 | ) | 10,803 | ||||
Valuation allowance | 4,148,465 | 15 | |||||
Income tax expense (benefit) | $ | 108,101 | $ | 91,444 | |||
The tax effects of temporary differences that give rise to the Company’s net deferred tax assets and liabilities as of March 31, 2014 and December 31, 2013 are summarized as follows: | |||||||
31-Mar-14 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Current portion: | |||||||
Deferred tax assets (liabilities): | |||||||
Expense | $ | (21,626 | ) | $ | 47,224 | ||
Subtotal | (21,626 | ) | 47,224 | ||||
Deferred tax assets (liabilities): | |||||||
Sales cut-off (CIT tax reporting on VAT tax system) | 147,302 | (33,518 | ) | ||||
Other | 105,382 | ||||||
Subtotal | 252,684 | (33,518 | ) | ||||
Total deferred tax assets (liabilities) – current portion | 231,058 | 13,706 | |||||
Non-current portion: | |||||||
Deferred tax assets (liabilities): | |||||||
Depreciation | (1,788 | ) | 81,076 | ||||
Loss carried forward | 4,148,465 | 3,992,906 | |||||
Valuation allowance | (4,148,465 | ) | (3,992,906 | ) | |||
Subtotal | (1,788 | ) | 81,076 | ||||
Deferred tax liabilities: | |||||||
Accumulated other comprehensive gain | (1,192,636 | ) | (1,009,477 | ) | |||
Subtotal | (1,192,636 | ) | (1,009,477 | ) | |||
Total deferred tax assets – non-current portion | (1,194,424 | ) | (928,401 | ) | |||
Net deferred tax assets (liabilities) | $ | (963,366 | ) | $ | (914,695 | ) | |
(b) Tax Benefit (Holiday) Effect | |||||||
For the three months ended March 31, 2014 and 2013, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax benefit (holidays) for the three months ended March 31, 2014 and 2013. | |||||||
The combined effects of the income tax expense exemptions and reductions available to the Company for the three months ended March 31, 2014 and 2013 are as follows: | |||||||
For the Three Months Ended | |||||||
March 31, | |||||||
(Unaudited) | |||||||
2014 | 2013 | ||||||
Tax benefit (holiday) credit | $ | 183,878 | $ | 124,314 | |||
Basic net income per share effect | $ | 0.005 | $ | 0.004 |
STOCK_OPTIONS_WARRANTS_AND_CON
STOCK OPTIONS, WARRANTS AND CONVERTIBLE NOTES | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
STOCK OPTIONS, WARRANTS AND CONVERTIBLE NOTES [Text Block] | 'NOTE 18 - STOCK OPTIONS, WARRANTS AND CONVERTIBLE NOTES | ||||||||||||
(a) Stock Options | |||||||||||||
On February 11, 2009, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase 2,600,000 shares of common stock at an exercise price of $.80 per share to ten of the Company’s employees and directors. The stock options vested ratably over three years and expire on the tenth anniversary of the grant date. The Company valued the stock options at $2,062,964 and amortized the stock compensation expense using the straight-line method over the service period from February 11, 2009 through February 11, 2012. The value of the options was estimated using the Black Scholes Model with an expected volatility of 164%, expected life of 10 years, risk-free interest rate of 2.76% and expected dividend yield of 0.00% . As of March 31, 2014, options for 2,366,672 shares had been exercised and options for 6,668 shares had been forfeited. | |||||||||||||
On October 6, 2009, the Company executed an agreement with Wang Rui and Li Qiwen, third-party consultants, whereby Mr. Wang and Mr. Li are to provide to the Company business development services in China in exchange for options to purchase 350,000 shares of the Company’s common stock at an exercise price of $1.50 per share. Per the agreement, options to purchase 250,000 shares vested and became exercisable on March 6, 2010, and options to purchase 100,000 shares vested and became exercisable on June 6, 2010. The options will expire after ten years. The options are issued under and subject to the terms of the Company’s 2008 Omnibus Long-Term Incentive Plan. | |||||||||||||
The following is a summary of the stock option activities of the Company: | |||||||||||||
Weighted Average | |||||||||||||
Number of Shares | Exercise Price | ||||||||||||
Outstanding as of January 1, 2014 | 326,660 | $ | 1.01 | ||||||||||
Granted | - | - | |||||||||||
Exercised | - | - | |||||||||||
Cancelled | - | - | |||||||||||
Outstanding as of March 31, 2014 | 326,660 | 1.01 | |||||||||||
The following table summarizes information about stock options outstanding as of March 31, 2014: | |||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||
Remaining | |||||||||||||
Number of | Exercise | Contractual life | Number of | Exercise | |||||||||
Shares | Price | (in years) | Shares | Price | |||||||||
226,660 | $0.80 | 5 | 226,660 | $0.80 | |||||||||
100,000 | 1.5 | 5.5 | 100,000 | 1.5 | |||||||||
The fair value per share of the 2,600,000 options issued to the employees and directors in February 2009 is $0.7934 per share. The fair value per share of the unexercised 100,000 options issued to Wang Rui and Li Qiwen, which became exercisable on June 6, 2010, is $3.44. | |||||||||||||
(b) Warrants and Convertible Notes | |||||||||||||
On September 21, 2009, the Company executed an agreement with a third-party consultant, whereby the consultant was to provide management consulting and advisory services for a period of 12 months, beginning on September 22, 2009 and ending on September 22, 2010. As compensation for the services provided, the Company issued 200,000 warrants to purchase the Company’s common stock, with 100,000 of these warrants issued at an exercise price of $2.00 per share and 100,000 of these warrants issued at an exercise price of $2.50 per share. All of the warrants have a five year contractual term and were granted on October 22, 2009. The warrants vested in full and became exercisable on January 21, 2010, upon the closing of an initial round of financing. As of August 10, 2012, the consultant had cashless exercised all the 200,000 warrants. | |||||||||||||
Under a Securities Purchase Agreement, dated as of January 21, 2010 (the “2010 Securities Purchase Agreement”), by and among the Company and certain investors, the Company issued a total of $10 million aggregate principal amount of senior secured convertible notes (the “Convertible Notes”) and warrants exercisable for an aggregate of 800,000 shares of the Company’s common stock (the “Investor Warrants”), for gross proceeds of $10 million. The Convertible Notes, which accrue interest at a rate of 6% per annum, will mature in two years following the closing date of the offering and are initially convertible, at the option of the holders, into shares of common stock at $6.25 per share. As of January 21, 2010, the Convertible Notes were convertible into 1,600,000 shares of common stock at the price of $6.25 per share. The Investor Warrants, which are exercisable for a period of three years following the closing date, were initially exercisable upon entering into the 2010 Securities Purchase Agreement at an exercise price of $6.5625 per share. Included in the associated issuance costs is the fair value of 80,000 warrants issued to a placement agent. These warrants have the same terms and conditions as the Investor Warrants issued to the investors. | |||||||||||||
Pursuant to the terms of the Convertible Notes and the Investor Warrants, on May 18, 2010, the conversion price of the Convertible Notes was adjusted to $3.5924 per share and the exercise price of the Investor Warrants and warrants issued to the placement agent was adjusted to $4.3907 per share. On August 19, 2010, the conversion price of the Convertible Notes was adjusted to $3.1146 per share and the exercise price of the Investor Warrants and warrants issued to the placement agent was adjusted to $3.8067 per share. As a result, the number of Investor Warrants and warrants issued to the placement agent were adjusted to 1,379,148 and 137,915 respectively. As of January 12, 2012, the investors had converted all $10,000,000 principal amount and $159,522 of accrued interest of the Convertible Notes into an aggregate of 3,121,121 shares of Common Stock. | |||||||||||||
As of January 22, 2013, 1,162,073 Investor Warrants and 124,123 warrants issued to the placement agent had been exercised. The remaining 217,075 Investor Warrants and 13,792 warrants issued to the placement agent were forfeited. | |||||||||||||
On December 21, 2010, the Company sold to certain institutional investors 3,027,272 shares of the Company’s common stock and warrants to purchase up to 1,210,912 shares of the Company’s common stock in fixed combination, with each combination consisting of one share of common stock and a warrant to purchase 0.40 shares of common stock in a registered direct public offering (the “Second Round Warrants”). The Second Round Warrants became exercisable immediately following the closing date of the offering and initially were exercisable for three years thereafter at an exercise price of $6.30 per share. The exercise price of the Second Round Warrants was adjusted to $5.40 on September 9, 2013 as a result of the registered direct offering that closed on July 1, 2013. On December 12, 2013, the expiration date of the Second Round Warrants was extended to June 30, 2014. As of March 31, 2014, the fair value of the Second Round Warrants was $11.00 per share, and 847,276 of the Second Round Warrants had been exercised. | |||||||||||||
On June 26, 2013, the Company entered into a Securities Purchase Agreement (the “2013 Securities Purchase Agreement”) with certain institutional investors (the “Third Round Investors”) that closed on July 1, 2013 pursuant to which the Company sold to the Third Round Investors, in a registered direct offering, an aggregate of 4,376,036 shares of the Company’s common stock at a negotiated purchase price of $6.03 per share. Under the 2013 Securities Purchase Agreement, the Third Round Investors also received Series A warrants for the purchase of up to 1,750,415 shares of the Company’s common stock at an exercise price of $7.24 per share and an option to make an additional investment in the form of Series B warrants and Series C warrants: Series B warrants to purchase a maximum aggregate of 728,936 shares of the Company’s common stock at an exercise price of $7.24 per share and the Series C warrants to purchase a maximum aggregate of 291,574 shares of the Company’s common stock at an exercise price of $8.69 (the “Third Round Warrants”). In addition, the placement agent for this transaction also received warrants for the purchase of up to 262,562 shares of the Company’s common stock at an exercise price of $7.24 per share (the “Third Round Placement Agent Warrants”). As of March 31, 2014 all the Third Round Warrants had been exercised on a cash basis, and the Third Round Placement Agent ’Warrants had a fair value of $10.83 per share. | |||||||||||||
On January 15, 2014, the Company sold to certain institutional investors warrants to purchase an aggregate of 1,429,393 shares of the Company’s common stock at an exercise price of $15 per share (the “Fourth Round Warrants”) for a total purchase price of approximately $14,294. The Fourth Round Warrants were immediately exercisable and will expire on January 30, 2015. As of March 31, 2014, the fair value of the Fourth Round Warrants was $12.12. | |||||||||||||
On March 19, 2014, the Company entered into a Securities Purchase Agreement with certain purchasers (the “4th round investors”) pursuant to which the Company sold to the 4th round investors, in a registered direct offering, an aggregate of 606,000 shares of common stock, at a negotiated purchase price of $18.24 per share, for aggregate gross proceeds to the Company of approximately $11,053,440, before deducting fees to the placement agent and other estimated offering expenses payable by the Company. As part of the transaction, the 4th round investors also received warrants for the purchase of up to 90,900 shares of the Company’s common stock at an exercise price of $22.80 per share (the “Fifth Round Warrants”). In addition, the placement agent for this transaction also received warrants for the purchase of up to 36,360 shares of the Company’s common stock at an exercise price of $22.80 per share. The Fifth Round Warrants have a term of eighteen months and are exercisable by the holders at any time after the date of issuance. As of March 31, 2014, the fair value of the Fifth Round Warrants was $9.20. |
STOCK_AWARD
STOCK AWARD | 3 Months Ended |
Mar. 31, 2014 | |
STOCK AWARD [Text Block] | ' |
NOTE 19 – STOCK AWARD | |
In connection with his appointment to the Board of Directors, and as compensation for serving, the Board of Directors has authorized the issuance by the Company to Mr. Henry Yu of 5,000 shares of Company’s restricted common stock every six months from July 2011. | |
As compensation for his services, the Board of Directors has authorized the issuance by the Company to Mr. Jerry Lewin of 5,000 shares of Company’s restricted common stock every six months, from August 2011. | |
As compensation for her services, the Board of Directors authorized the issuance by the Company to Ms. Kewa Luo of 5,000 shares of Company’s common stock every six months, beginning in September 2013. | |
As compensation for her services, the Board of Directors authorized the issuance by the Company to Mr. Wei Chen of 2,500 shares of Company’s common stock every three months, beginning in January 2014. | |
The fair value of stock awards based on service is determined based on closing price of the common stock on the date the shares are granted. The compensation cost for awards of common stock are recognized over the requisite service period of six months. | |
On December 30, 2013, the Board of Directors approved a proposal (as submitted by the Compensation Committee) of an award for selected executives and other key employees comprising a total of 335,000 shares of common stock for each fiscal year, beginning with the 2013 fiscal year, under the Company’s 2008 Omnibus Long-Term Incentive Plan (the “Plan”), if the Company’s determination that the Company’s “Non-GAAP Net Income” for the fiscal year increased by 10% comparing to that of the prior year’s. The specific number of shares of common stock to be issued in respect of such award could proportionally increase or decrease if the actual Non-GAAP Net Income increase is more or less than 10%. “Non-GAAP Net Income” means the Company’s net income for a particular year calculated in accordance with GAAP, excluding option-related expenses, stock award expenses, and the effects caused by the change of fair value of financial derivatives. For example, if Non-GAAP Net Income for the 2014 fiscal year increases by 10% compared to the Non-GAAP Net Income for the 2013 fiscal year, the selected executives and other key employees will each be granted his or her target amount of common stock of the Company. If Non-GAAP Net Income in 2014 is less than Non-GAAP Net Income in 2013, then no common stock will be granted. If Non-GAAP Net Income in 2014 increases compared to Non-GAAP Net Income in 2013 but the increase is less than 10%, then the target amount of the common stock grant will be proportionately decreased. If Non-GAAP Net Income in 2014 increases compared to Non- GAAP Net Income in 2013 but the increase is more than 10%, then the target amount of the common stock grant will be proportionately increased. Any such increase in the grant will be subject to the total number of shares available under the Plan, and the Company’s Board of Directors and shareholders will need to approve an increase in the number of shares reserved under the Plan if the number of shares originally reserved is used up. | |
The fair value of each award granted under the Plan is determined based on the closing price of the Company’s stock on the date of grant of the award. To the extent that the performance goal is not met and so no shares become due, no compensation cost is recognized and any recognized compensation cost during the applicable year is reversed. The number of shares of common stock granted under the Plan with respect to fiscal 2014 would be 1,018,839 shares according to the estimation of Non-GAAP Net Income of the whole year of 2014 based on the Non-GAAP Net Income of the first quarter of 2014. The compensation expense is recognized in General and Administrative Expenses. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
INTANGIBLE ASSETS [Text Block] | ' | |||||||||
NOTE 20 – INTANGIBLE ASSETS | ||||||||||
The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill: | ||||||||||
Remaining useful | ||||||||||
life as of March | 31-Mar-14 | |||||||||
31, 2014 | (Unaudited) | 31-Dec-13 | ||||||||
Gross carrying amount: | ||||||||||
Trade name | 7.75 years | $ | 492,235 | 492,235 | ||||||
Customer relations | 7.75 years | 304,086 | 304,086 | |||||||
796,321 | 796,321 | |||||||||
Less : Accumulated amortization | ||||||||||
Trade name | $ | (97,263 | ) | (84,576 | ) | |||||
Customer relations | (60,086 | ) | (52,249 | ) | ||||||
(157,349 | ) | (136,825 | ) | |||||||
Intangible assets, net | $ | 638,972 | 659,496 | |||||||
The aggregate amortization expense for those intangible assets that continue to be amortized is reflected in amortization of intangible assets in the consolidated statements of income, and comprehensive income was $20,524 and $20,524 for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||
Amortization expense for the next five years and thereafter is as follows: | ||||||||||
2014 (nine months) | $ | 61,571 | ||||||||
2015 | 82,095 | |||||||||
2016 | 82,095 | |||||||||
2017 | 82,095 | |||||||||
2018 | 82,095 | |||||||||
Thereafter | 249,021 | |||||||||
Total | $ | 638,972 |
SUMMARIZED_INFORMATION_OF_INVE
SUMMARIZED INFORMATION OF INVESTMENT IN THE JV COMPANY | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
SUMMARIZED INFORMATION OF INVESTMENT IN THE JV COMPANY [Text Block] | 'NOTE 21 –SUMMARIZED INFORMATION OF INVESTMENT IN THE JV COMPANY | ||||||
The Company’s investment in the JV Company, which was organized in March 2013, is accounted for using the equity method of accounting. As of March 31, 2014, the JV Company had consolidated the following: (1) 100% interest in Kandi Changxing; (2) 100% interest in Kandi Jinhua; (3) 100% interest in JiHeKang; (4) 100% interest in Kandi Shanghai; (5) 100% interest in Kandi Jiangsu, and 19% interest in the Service Company. | |||||||
The combined results of operations and financial position of the JV Company are summarized below: | |||||||
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Condensed income statement information: | |||||||
Net sales | $ | 34,860,044 | $ | - | |||
Gross income (loss) | 4,287,928 | - | |||||
Net income (loss) | 1,656,824 | - | |||||
Company’s equity in net income of JV | 828,412 | - | |||||
31-Mar-14 | 31-Dec-13 | ||||||
Condensed balance sheet information: | |||||||
Current assets | $ | 93,135,402 | $ | 108,139,053 | |||
Noncurrent assets | 160,094,993 | 146,130,466 | |||||
Total assets | $ | 253,230,395 | $ | 254,269,519 | |||
Current liabilities | 92,401,059 | 93,772,816 | |||||
Noncurrent liabilities | - | - | |||||
Equity | 160,829,336 | 160,496,703 | |||||
Total liabilities and equity | $ | 253,230,395 | $ | 254,269,519 | |||
Note: The following table illustrates the captions used in the Company’s Income Statements for its equity basis investments in the JV Company. | |||||||
Changes in the Company’s investment in JV Company for the three months ended March 31, 2014 and 2013 are as follows: | |||||||
Condensed income statement information: | Three Months Ended March 31, | ||||||
2014 | 2013 | ||||||
Investment in JV Company, beginning of the period, | $ | 79,331,930 | $ | - | |||
Income (loss) from equity investment | 828,412 | - | |||||
Intercompany transaction unrealized gain effects | 899,943 | - | |||||
Exchange difference | (661,106 | ) | - | ||||
Investment in JV Company, end of the period | $ | 80,399,179 | $ | - | |||
The following tables summarize the effects of transactions, including sales and purchases with the JV Company: | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Sales to Kandi Changxing. | $ | 17,226,293 | $ | - | |||
Sales to Kandi Shanghai. | 6,901,779 | - | |||||
Sales to Service Company | 594,210 | - | |||||
Purchase from Kandi Changxing | 45,422 | ||||||
Purchase from Service Company | 1,509,304 | - | |||||
As of March 31, 2014 and December 31, 2013, significant balances with the JV Company were as follows: | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Due from the JV Company | $ | 4,087,989 | $ | 4,121,688 | |||
Due from Kandi Changxing | 14,459,553 | 1,576,408 | |||||
Due from Kandi Shanghai | 6,985,818 | - | |||||
Due (to) Kandi Jinhua | (3,001,103 | ) | (2,780,504 | ) | |||
Due (to) the Service Company | (906,499 | ) | - | ||||
$ | 21,625,758 | $ | 2,917,592 | ||||
The amounts due from the JV Company as of March 31, 2014 and December 31, 2013 were not collateralized, were interest-free and had normal business payment terms. |
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
ACCOUNTS RECEIVABLE [Text Block] | ' | ||||||
NOTE 22 –ACCOUNTS RECEIVABLE | |||||||
Accounts receivable are summarized as follows: | |||||||
March 31, | |||||||
2014 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Accounts receivable | $ | 22,674,057 | $ | 31,370,862 | |||
Less: Provision for doubtful debts | - | - | |||||
Accounts receivable, net | $ | 22,674,057 | $ | 31,370,862 | |||
During the three months ended March 31, 2014 and 2013, the Company sold products to Kandi USA Inc, a company that operates under the trade name of Eliteway Motorsports (“Eliteway”), amounting to $559,019 and $1,184,180, respectively. As of March 31, 2014 and December 31, 2013, outstanding receivables due from Eliteway was $2,039,176 and $2,800,958, respectively. | |||||||
Mr. Hu Wangyuan is the sole shareholder and officer of Eliteway, which serves as a U.S. importer of the Company’s products. Mr. Hu Wangyuan is the adult son of the Company’s chairman and Chief Executive Officer, Mr. Hu Xiaoming. As of and for the three months ended March 31, 2014, Eliteway and Mr. Hu Wangyuan were financially independent from the Company. The transactions between the Company and Eliteway were carried out at arm’slength without preferential terms compared with other customers that placed orders comparable in size or volume. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES [Text Block] | ' | ||||
NOTE 23 – COMMITMENTS AND CONTINGENCIES | |||||
Guarantees and Pledged collateral for third party bank loans | |||||
As of March 31, 2014, the Company provided guarantees for the following third parties: | |||||
(1) Guarantees for bank loans | |||||
Guarantee provided to | Amount | ||||
Zhejiang Kangli Metal Manufacturing Company. | $ | 4,866,654 | |||
Zhejiang Shuguang industrial Co., Ltd. | 4,866,654 | ||||
Nanlong Group Co., Ltd. | 9,733,307 | ||||
Total | $ | 19,466,615 | |||
On December 27, 2013, the Company entered into a guarantee contract to serve as the guarantor for the bank loan borrowed from Shanghai Bank Hangzhou branch in the amount of $4,866,654 by Zhejiang Kangli Metal Manufacturing Company (“ZKMMC”) for the period from December 27, 2013 to December 27, 2014. ZKMMC is not related to the Company. Under this guarantee contract, the Company agrees to perform all obligations of ZKMMC under the loan contract if ZKMMC fails to perform its obligations as set forth therein. | |||||
On March 4, 2014, the Company entered into a guarantee contract to serve as the guarantor for the bank loan borrowed from PingAn Bank in the amount of $4,866,654 by Zhejiang Shuguang industrial Co., Ltd. (“ZSICL”) for the period from March 4, 2014 to March 4, 2015. ZSICL is not related to the Company. Under this guarantee contract, the Company agrees to perform all obligations of ZSICL under the loan contracts if ZSICL fails to perform its obligations as set forth therein. | |||||
On March 15, 2013 and December 27, 2013, the Company entered into two guarantee contracts to serve as the guarantor for the bank loans borrowed from Shanghai Pudong Development Bank Jinhua Branch and Shanghai Bank Hangzhou branch in the amount of $3,244,436 and $6,488,871, respectively, by Nanlong Group Co., Ltd. (“NGCL”) for the period from March 15, 2013 to March 15, 2016, and December 27, 2013 to December 27, 2014, respectively. NGCL is not related to the Company. Under these guarantee contracts, the Company agrees to perform all obligations of NGCL under the loan contracts if NGCL fails to perform its obligations as set forth therein. | |||||
(2) Pledged collateral for a third party’s bank loans | |||||
As of March 31, 2014, none of the Company’s land use rights or plant and equipment were pledged as collateral securing bank loans to third parties. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Reporting [Text Block] | ' | ||||||||||||
NOTE 24 –SEGMENT REPORTING | |||||||||||||
The Company has only one single operating segment. The Company’s revenue and long-lived assets are primarily derived from and located in the PRC. The Company only has operations in the PRC. | |||||||||||||
The following table sets forth revenues by geographic area | |||||||||||||
Three Months Ended March 31 | |||||||||||||
2013 | |||||||||||||
2014 | |||||||||||||
Long Lived | |||||||||||||
Sales Revenue | Long Lived Assets | Sales Revenue | Assets | ||||||||||
North America | $ | 569,218 | - | $ | 1,628,080 | - | |||||||
Europe and other region | 526,602 | - | 410,717 | - | |||||||||
China | |||||||||||||
39,075,484 | 123,648,510 | 12,623,724 | 49,449,558 | ||||||||||
Total | $ | 40,171,304 | 123,648,510 | $ | 14,662,521 | 49,449,558 | |||||||
Recovered_Sheet1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Economic and Political Risks [Policy Text Block] | ' | ||||||||||||
(a) Economic and Political Risks | |||||||||||||
The Company’s operations are conducted in the PRC. As a result, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC economy. In addition, the Company’s earnings are subject to movements in foreign currency exchange rates when transactions are denominated in Renminbi (“RMB”), which is the Company’s functional currency. Accordingly, the Company’s operating results are affected by changes in the exchange rate between the U.S. dollar and the RMB. | |||||||||||||
Fair Value of Financial Instruments [Policy Text Block] | ' | ||||||||||||
(b) Fair Value of Financial Instruments | |||||||||||||
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. | |||||||||||||
These tiers include: | |||||||||||||
• | Level 1—defined as observable inputs such as quoted prices in active markets; | ||||||||||||
• | Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and | ||||||||||||
• | Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||
As of March 31, 2014, the Company’s assets, measured at fair value, on a recurring basis, subject to the disclosure requirements of ASC 820, were as follows: | |||||||||||||
Fair Value | Significant | ||||||||||||
Measurements | Active Markets | Other | Significant | ||||||||||
at Reporting | for Identical | Observable | Unobservable | ||||||||||
Date Using | Assets | Inputs | Inputs | ||||||||||
Quoted Prices | |||||||||||||
in Carrying | |||||||||||||
value as of | |||||||||||||
March 31, | |||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Cash and cash equivalents | $ | 20,498,275 | $ | 20,498,275 | - | - | |||||||
Warrants | 25,347,054 | - | - | 25,347,054 | |||||||||
Cash and cash equivalents consist primarily of highly-rated money market funds at a variety of well-known institutions with original maturities of three months or less. Restricted cash represents time deposits on account, some of which are used to secure short-term bank loans and notes payable. The original cost of these assets approximates fair value due to their short term maturity. | |||||||||||||
Warrants, which are accounted as liabilities, are treated as derivative instruments, which will be measured at each reporting date for their fair value using Level 3 inputs. Also see Note 6 section (t). | |||||||||||||
Cash and Cash Equivalents [Policy Text Block] | ' | ||||||||||||
(c) Cash and Cash Equivalents | |||||||||||||
The Company considers highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. | |||||||||||||
Restricted cash, as of March 31, 2014 and December 31, 2013, represented time deposits on account, some of which were used to secure short-term bank loans and notes payable. As of March 31, 2014, the Company’ s restricted cash was $0. | |||||||||||||
Inventories [Policy Text Block] | ' | ||||||||||||
(d) Inventories | |||||||||||||
Inventories are stated at the lower of cost or net realizable value (market value). The cost of raw materials is determined on the basis of weighted average. The cost of finished goods is determined on the weighted average basis and comprises direct materials, direct labor and an appropriate proportion of overhead. | |||||||||||||
Net realizable value is based on estimated selling prices less any further costs expected to be incurred for completion and selling expense. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence, or impaired balances. | |||||||||||||
Accounts Receivable [Policy Text Block] | ' | ||||||||||||
(e) Accounts Receivable | |||||||||||||
Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts is recorded in periods in which the Company determines a loss is probable, based on its assessment of specific factors, such as troubled collections, historical experience, accounts aging, ongoing business relations and other factors. Accounts are written off after an exhaustive collection effort. If accounts receivable are to be provided for, or written off, they are recognized in the consolidated statement of operations within the operating expenses line item. As of March 31, 2014 and December 31, 2013, the Company had no allowance for doubtful accounts, as per the management’s judgment based on their best knowledge. | |||||||||||||
As of March 31, 2014 and December 31, 2013, the credit terms with the Company’s customers were typically 90 to 120 days after delivery. | |||||||||||||
Note receivable [Policy Text Block] | ' | ||||||||||||
(f) Note receivable | |||||||||||||
Notes receivable represent short-term loans to third parties with the maximum term of one year. Interest income will be recognized according to each agreement between a borrower and the Company on an accrual basis. If notes receivable are paid back, or written off, that transaction will be recognized in the relevant year if the loan default is probable, reasonably assured and the loss can be reasonably estimated. The Company will recognize income if the written-off loan is recovered at a future date. In case of any foreclosure proceedings or legal actions being taken, the Company will provide an accrual for the related foreclosure expenses and related litigation expenses. | |||||||||||||
Prepayments [Policy Text Block] | ' | ||||||||||||
(g) Prepayments | |||||||||||||
Prepayments represent cash paid in advance to suppliers. As of March 31, 2014, prepayments included advances to raw material suppliers, mold manufacturers, and suppliers of equipment. The Company intends to pay, as a prepaid expense, certain other expenses, such as water and electricity fees. | |||||||||||||
Advances for raw materials purchases typically are settled within two months by the Company’s receipt of raw materials. | |||||||||||||
Plant and Equipment [Policy Text Block] | ' | ||||||||||||
(h) Plant and Equipment | |||||||||||||
Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets estimated useful lives, using the straight-line method. Leasehold improvements are amortized over the life of the asset or the term of the lease, whichever is shorter. Estimated useful lives are as follows: | |||||||||||||
Buildings | 30 years | ||||||||||||
Machinery and equipment | 10 years | ||||||||||||
Office equipment | 5 years | ||||||||||||
Motor vehicles | 5 years | ||||||||||||
Molds | 5 years | ||||||||||||
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to expense as incurred, whereas significant renewals and betterments are capitalized. | |||||||||||||
Construction in Progress [Policy Text Block] | ' | ||||||||||||
(i) Construction in Progress | |||||||||||||
Construction in progress represents the direct costs of construction, the acquisition cost of buildings or machinery and design fees. Capitalization of these costs ceases, and the construction in progress is transferred to plant and equipment, when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until the assets are completed and ready for their intended use. | |||||||||||||
Land Use Rights [Policy Text Block] | ' | ||||||||||||
(j) Land Use Rights | |||||||||||||
According to Chinese laws, land in the PRC is owned by the government and land ownership rights cannot be sold to an individual or to a private company. However, the government grants the user a “land use right” to use the land. The land use rights granted to the Company are being amortized using the straight-line method over the term of fifty years. | |||||||||||||
Accounting for the Impairment of Long-Lived Assets [Policy Text Block] | ' | ||||||||||||
(k) Accounting for the Impairment of Long-Lived Assets | |||||||||||||
The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in Statement of Financial Accounting Standards (“SFAS”) No. 144 (now known as “ASC 360”). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose. | |||||||||||||
During the reporting period, no impairment loss was recognized. | |||||||||||||
Revenue Recognition [Policy Text Block] | ' | ||||||||||||
(l) Revenue Recognition | |||||||||||||
Revenue represents the invoiced value of goods sold. Revenue is recognized when the Company ships the goods to its customers and all of the following criteria are met: | |||||||||||||
Persuasive evidence of an arrangement exists; | |||||||||||||
Delivery has occurred or services have been rendered; | |||||||||||||
Research and Development [Policy Text Block] | ' | ||||||||||||
(m) Research and Development | |||||||||||||
Expenditures relating to the development of new products and processes, including significant improvements to existing products, are expensed as incurred. Research and development expenses were $1,172,257 and $689,665 for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||
Government Grant [Policy Text Block] | ' | ||||||||||||
(n) Government Grant | |||||||||||||
Grants received from the PRC Government to fund a portion of the Company’s technical research and development efforts are recognized when the proceeds are received or collectible. | |||||||||||||
During the three months ended March 31, 2014 and 2013, the Company did not receive any grants from the PRC government. | |||||||||||||
Income Taxes [Policy Text Block] | ' | ||||||||||||
(o) Income Taxes | |||||||||||||
The Company accounts for income tax using an asset and liability approach, which allows for the recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The accounting for deferred tax calculation represents the management’s best estimate on the most likely future tax consequences of events that have been recognized in our financial statements or tax returns and related future anticipation. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. | |||||||||||||
Foreign Currency Translation [Policy Text Block] | ' | ||||||||||||
(p) Foreign Currency Translation | |||||||||||||
The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). Capital accounts of the consolidated financial statements are translated into United States dollars from RMB at their historical exchange rates when the capital transactions occurred. | |||||||||||||
Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the reporting period, which rates are obtained from the website: http://www.oanda.com | |||||||||||||
March 31, | December 31, | March 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||||
Period end RMB : USD exchange rate | 6.1644 | 6.114 | 6.2816 | ||||||||||
Average RMB : USD exchange rate | 6.1199 | 6.1982 | 6.2858 | ||||||||||
Comprehensive Income [Policy Text Block] | ' | ||||||||||||
(q) Comprehensive Income | |||||||||||||
Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes. | |||||||||||||
Segments [Policy Text Block] | ' | ||||||||||||
(r) Segments | |||||||||||||
In accordance with ASC 280-10, Segment Reporting (“ASC 280-10”), the Company’s chief operating decision makers rely upon consolidated results of operations when making decisions about allocating resources and assessing performance of the Company. As a result of the assessment made by the chief operating decision makers, the Company has only one single operating segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. | |||||||||||||
Stock Option Cost [Policy Text Block] | ' | ||||||||||||
(s) Stock Option Cost | |||||||||||||
The Company’s stock option cost is recorded in accordance with ASC 718 and ASC 505. | |||||||||||||
The fair value of stock options is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s common stock. The expected life assumption is primarily based on the expiration date of the option. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||
Stock option expense recognized is based on awards expected to vest, and there were no estimated forfeitures. ASC standards require forfeitures to be estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from those estimates. | |||||||||||||
The stock-based option expense for the period ended March 31, 2014 was $0. See Note 18. | |||||||||||||
Warrant Cost [Policy Text Block] | ' | ||||||||||||
(t) Warrant Cost | |||||||||||||
The Company’s warrant costs are recorded in liabilities and equities, respectively, in accordance with ASC 480, ASC 505 and ASC 815. | |||||||||||||
The fair value of a warrant, which is classified as a liability, is estimated using the Black-Scholes-Merton model and the lattice valuation model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s common stock. The expected life assumption is primarily based on the expiration date of the warrant. The risk-free interest rate for the expected term of the warrant is based on the U.S. Treasury yield curve in effect at the time of measurement. The warrants, which are freestanding derivatives and are classified as liabilities on the balance sheet, will be measured at fair value on each reporting date, with decreases in fair value recognized in earnings and increases in fair values were recognized in expenses. | |||||||||||||
The fair value of equity-based warrants, which are not considered derivatives under ASC 815, is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s common stock. The expected life assumption is primarily based on the expiration date of the warrant. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||
Goodwill [Policy Text Block] | ' | ||||||||||||
(u) Goodwill | |||||||||||||
The Company allocates goodwill to reporting units based on the reporting unit expected to benefit from the business combination. The Company evaluates its reporting units on an annual basis and, if necessary, reassigns goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. | |||||||||||||
Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than not threshold is met, the Company performs a quantitative impairment test. At March 31, 2014, the Company determined that goodwill was not impaired. | |||||||||||||
Intangible assets [Policy Text Block] | ' | ||||||||||||
(v) Intangible assets | |||||||||||||
Intangible assets consist of tradenames and customer relations associated with the purchase price allocation of Yongkang Scrou. Such assets are being amortized over their estimated useful lives of 9.7 years. Intangible assets are amortized as of March 31, 2014. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Schedule of Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||
Fair Value | Significant | ||||||||||||
Measurements | Active Markets | Other | Significant | ||||||||||
at Reporting | for Identical | Observable | Unobservable | ||||||||||
Date Using | Assets | Inputs | Inputs | ||||||||||
Quoted Prices | |||||||||||||
in Carrying | |||||||||||||
value as of | |||||||||||||
March 31, | |||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Cash and cash equivalents | $ | 20,498,275 | $ | 20,498,275 | - | - | |||||||
Warrants | 25,347,054 | - | - | 25,347,054 | |||||||||
Schedule of Property and Equipment Estimated Useful Lives [Table Text Block] | ' | ||||||||||||
Buildings | 30 years | ||||||||||||
Machinery and equipment | 10 years | ||||||||||||
Office equipment | 5 years | ||||||||||||
Motor vehicles | 5 years | ||||||||||||
Molds | 5 years | ||||||||||||
Schedule of Average Foreign Currency Exchange Rates [Table Text Block] | ' | ||||||||||||
March 31, | December 31, | March 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||||
Period end RMB : USD exchange rate | 6.1644 | 6.114 | 6.2816 | ||||||||||
Average RMB : USD exchange rate | 6.1199 | 6.1982 | 6.2858 |
CONCENTRATIONS_Tables
CONCENTRATIONS (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Schedule of Revenue and Accounts Receivable Percentage by Major Customers [Table Text Block] | ' | ||||
Sales | Accounts Receivable | ||||
Three Months | Three Months | ||||
Ended March 31, | Ended March 31, | December 31, | |||
Major Customers | 2014 | 2013 | 31-Mar-14 | 2013 | |
Kandi Electric Vehicles (Changxing) Co., Ltd. | 43% | - | - | - | |
Shanghai Huapu Auto Co., Ltd | 19% | - | 22% | 52% | |
Kandi Electric Vehicles (Shanghai) Co., Ltd. | 17% | - | - | - | |
Schedule of Purchases and Accounts Payable Percentage by Major Suppliers [Table Text Block] | ' | ||||
Purchases | Accounts Payable | ||||
Three Months | Three Months | ||||
Ended March 31, | Ended March 31, | December 31, | |||
Major Suppliers | 2014 | 2013 | 31-Mar-14 | 2013 | |
Zhejiang Wanxiang Yineng Power Battery Co., Ltd | 18% | - | 18% | 3% | |
Zhongju (Tianjin) New Energy Investment Co., Ltd. | 15% | - | 13% | - | |
Zhejiang Mengdeli Electric Co., Ltd. | 14% | 49% | - | 13% | |
Shandong Henyuan New Energy Tech Co., Ltd. | 14% | - | 12% | - |
INCOME_PER_SHARE_Tables
INCOME PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
Three months Ended March 31, | 2014 | 2013 | ||||||
Net (loss) income | $ | (14,086,160 | ) | $ | 2,236,873 | |||
Weighted – average shares of common stock outstanding | ||||||||
Basic | 39,597,785 | 32,298,832 | ||||||
Dilutive shares | - | 240,507 | ||||||
Diluted | 39,597,785 | 32,539,339 | ||||||
Basic (loss) income per share | $ | (0.36 | ) | $ | 0.07 | |||
Diluted (loss) income per share | $ | (0.36 | ) | $ | 0.07 |
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Inventories [Table Text Block] | ' | ||||||
31-Mar-14 | |||||||
(Unaudited) | 31-Dec-13 | ||||||
Raw material | $ | 7,150,481 | $ | 2,646,041 | |||
Work-in-progress | 5,458,551 | 5,065,126 | |||||
Finished goods | 1,387,816 | 1,829,281 | |||||
13,996,848 | 9,540,448 | ||||||
Less: reserve for slow moving | |||||||
inventories | (349,850 | ) | (352,734 | ) | |||
Inventories, net | $ | 13,646,998 | $ | 9,187,714 |
NOTES_RECEIVABLE_Tables
NOTES RECEIVABLE (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Notes Receivable [Table Text Block] | ' | ||||||
31-Mar-14 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Notes receivable from unrelated companies: | |||||||
Due September 30, 2014, interest at 9.6% per annum 1 | $ | 27,193,957 | $ | 13,794,094 | |||
Due September 30, 2014, interest at 7.2% per annum 2 | 6,262,802 | - | |||||
Due September 30, 2014, interest at 36.0% per annum 3 | 1,622,218 | - | |||||
35,078,977 | 13,794,094 | ||||||
Bank acceptance notes: | |||||||
Bank acceptance notes | - | - | |||||
Notes receivable | $ | 35,078,977 | $ | 13,794,094 | |||
Schedule of Detailed Unrelated Party Notes Receivable as of December 31, 2013 [Table Text Block] | ' | ||||||
Manner of | |||||||
Index | Amount ($) | Counter party | Relationship | Purpose of Loan | settlement | ||
1 | 13,794,094 | Yongkang HuiFeng | No relationship | Receive interest | Not due | ||
Guarantee Co., Ltd | beyond loan | income | |||||
Schedule of Detailed Unrelated Party Notes Receivable as of March 31, 2014 [Table Text Block] | ' | ||||||
Manner of | |||||||
Index | Amount ($) | Counter party | Relationship | Purpose of Loan | settlement | ||
1 | 27,193,957 | Yongkang HuiFeng | No relationship | Receive interest | Not due | ||
Guarantee Co., Ltd | beyond loan | income | |||||
2 | 6,262,802 | Kandi Investment | No relationship | Receive interest | Not due | ||
Group Co., Ltd | beyond loan | income | |||||
3 | 1,622,218 | Zhejiang ZanGao | Not due | ||||
Investment | No relationship | Receive interest | |||||
Management Co., Ltd | beyond loan | income |
LAND_USE_RIGHTS_Tables
LAND USE RIGHTS (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Land Use Rights [Table Text Block] | ' | ||||||
31-Mar-14 | |||||||
(Unaudited) | 31-Dec-13 | ||||||
Cost of land use rights | $ | 16,090,568 | $ | 16,223,208 | |||
Less: Accumulated amortization | (1,844,422 | ) | (1,770,017 | ) | |||
Land use rights, net | $ | 14,246,146 | $ | 14,453,191 | |||
Schedule of Land Use Rights Expected Amortization Expense [Table Text Block] | ' | ||||||
2014 (nine months) | $ | 268,570 | |||||
2015 | 358,093 | ||||||
2016 | 358,093 | ||||||
2017 | 358,093 | ||||||
2018 | 358,093 | ||||||
Thereafter | 12,545,204 | ||||||
Total | $ | 14,246,146 |
PLANT_AND_EQUIPMENT_Tables
PLANT AND EQUIPMENT (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Plant and Equipment [Table Text Block] | ' | ||||||
31-Mar-14 | |||||||
(Unaudited) | 31-Dec-13 | ||||||
At cost: | |||||||
Buildings | $ | 14,467,322 | $ | 14,514,873 | |||
Machinery and equipment | 10,719,013 | 10,771,899 | |||||
Office equipment | 258,379 | 251,690 | |||||
Motor vehicles | 286,559 | 288,004 | |||||
Moulds | 33,952,746 | 34,230,014 | |||||
59,684,019 | 60,056,480 | ||||||
Less : Accumulated depreciation | |||||||
Buildings | $ | (3,107,795 | ) | $ | (3,010,451 | ) | |
Machinery and equipment | (10,226,031 | ) | (10,278,409 | ) | |||
Office equipment | (201,897 | ) | (196,303 | ) | |||
Motor vehicles | (234,080 | ) | (228,442 | ) | |||
Moulds | (17,611,346 | ) | (16,648,583 | ) | |||
(31,381,149 | ) | (30,362,188 | ) | ||||
Less: provision for impairment for | |||||||
fixed assets | (357,826 | ) | (360,776 | ) | |||
Plant and equipment, net | $ | 27,945,044 | $ | 29,333,516 |
SHORT_TERM_BANK_LOANS_Tables
SHORT TERM BANK LOANS (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Short-term Bank Loans [Table Text Block] | ' | ||||||
March 31, | |||||||
2014 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Loans from Jinhua Bank | |||||||
Monthly interest only payments at 6.30% per annum, due October 10, 2014, guaranteed by Mr. Hu Xiaoming and Ms. Ling Yueping, and secured by the assets of the Company. Also see Note 12 and Note 13 | $ | 1,622,217 | $ | 1,635,590 | |||
Monthly interest only payments at 6.30% per annum, due December 2, 2014, guaranteed by Mr. Hu Xiaoming and Ms. Ling Yueping, and secured by the assets of the Company. Also see Note 12 and Note 13 | 811,109 | 817,795 | |||||
Monthly interest only payments at 6.30% per annum, due December 2, 2014, guaranteed by Zhejiang Kangli Metal Manufacturing Company, Mr. Hu Xiaoming, Ms. Ling Yueping, Mr. Lv Qingbo and Mr. Lv Qingjiang, and secured by the assets of the Company. Also see Note 12 and Note 13 | 3,244,436 | 3,271,181 | |||||
Loans from Yongkang Rural Cooperative Bank | |||||||
Monthly interest only payments at 0.927% per month, due January 31, 2015, guaranteed by Yongkang Sanli Metal Co., Ltd. | 811,109 | 817,795 | |||||
Loans from China Ever-bright Bank | |||||||
Monthly interest only payments at 6.94% per annum, due May 14, 2014, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Mr. Hu Wangyuan, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. | 12,653,300 | 12,757,606 | |||||
Loans from Shanghai Pudong Development Bank | |||||||
Monthly interest only payments at 6.60% per annum, due September 4, 2014, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming. Also see Note 12 and Note 13. | 6,488,871 | 6,542,362 | |||||
Loans from Bank of Shanghai | |||||||
Monthly interest only payments at 6.60% per annum, due December 27, 2014, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Kangli Metal Manufacturing Company and Nanlong Group Co., Ltd. | 4,866,654 | 4,906,771 | |||||
Loans from China Ever-growing Bank | |||||||
Monthly interest only payments at 7.20% per annum, due April 22, 2014, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Shuguang industrial Co., Ltd. and Zhejiang Mengdeli Electric Company. | 3,244,436 | 3,271,181 | |||||
Total | $ | 33,742,132 | $ | 34,020,281 |
NOTES_PAYABLE_Tables
NOTES PAYABLE (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Notes Payable [Table Text Block] | ' | ||||||
March 31,2014 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Bank acceptance notes: | |||||||
Due March 18, 2014 | $ | - | $ | 1,962,709 | |||
Due May 19, 2014 | 8,111,089 | 8,177,952 | |||||
Due May 21, 2014 | 6,488,872 | 6,542,362 | |||||
Subtotal | $ | 14,599,961 | $ | 16,683,023 | |||
Notes payable to unrelated companies: | |||||||
$ | - | $ | - | ||||
Subtotal | $ | - | $ | - | |||
Total | $ | 14,599,961 | $ | 16,683,023 |
BOND_PAYABLE_Tables
BOND PAYABLE (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Schedule of Bond Payable [Table Text Block] | ' | ||||||||||||
Due Date | Face Value | Coupon rate | Interest record date | Interest pay date | |||||||||
27-Dec-16 | $ | 12,977,743 | 11.50% | 27-Dec | 27-Dec | ||||||||
Total face value | $ | 12,977,743 |
TAXES_Tables
TAXES (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||
For the Three Months Ended | |||||||
March 31, | |||||||
(Unaudited) | |||||||
2014 | 2013 | ||||||
Current: | |||||||
Provision for CIT | $ | 108,101 | $ | 91,444 | |||
Provision for Federal Income Tax | - | - | |||||
Deferred: | |||||||
Provision for CIT | - | - | |||||
Income tax expense (benefit) | $ | 108,101 | $ | 91,444 | |||
Schedule of Expected Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||
For the Three Months Ended | |||||||
March 31, | |||||||
(Unaudited) | |||||||
2014 | 2013 | ||||||
Computed “expected” expense | $ | (3,776,682 | ) | $ | 204,940 | ||
Favorable tax rate | (183,878 | ) | (124,314 | ) | |||
Permanent differences | (79,804 | ) | 10,803 | ||||
Valuation allowance | 4,148,465 | 15 | |||||
Income tax expense (benefit) | $ | 108,101 | $ | 91,444 | |||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||
31-Mar-14 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Current portion: | |||||||
Deferred tax assets (liabilities): | |||||||
Expense | $ | (21,626 | ) | $ | 47,224 | ||
Subtotal | (21,626 | ) | 47,224 | ||||
Deferred tax assets (liabilities): | |||||||
Sales cut-off (CIT tax reporting on VAT tax system) | 147,302 | (33,518 | ) | ||||
Other | 105,382 | ||||||
Subtotal | 252,684 | (33,518 | ) | ||||
Total deferred tax assets (liabilities) – current portion | 231,058 | 13,706 | |||||
Non-current portion: | |||||||
Deferred tax assets (liabilities): | |||||||
Depreciation | (1,788 | ) | 81,076 | ||||
Loss carried forward | 4,148,465 | 3,992,906 | |||||
Valuation allowance | (4,148,465 | ) | (3,992,906 | ) | |||
Subtotal | (1,788 | ) | 81,076 | ||||
Deferred tax liabilities: | |||||||
Accumulated other comprehensive gain | (1,192,636 | ) | (1,009,477 | ) | |||
Subtotal | (1,192,636 | ) | (1,009,477 | ) | |||
Total deferred tax assets – non-current portion | (1,194,424 | ) | (928,401 | ) | |||
Net deferred tax assets (liabilities) | $ | (963,366 | ) | $ | (914,695 | ) | |
Summary of Income Tax Holiday [Table Text Block] | ' | ||||||
For the Three Months Ended | |||||||
March 31, | |||||||
(Unaudited) | |||||||
2014 | 2013 | ||||||
Tax benefit (holiday) credit | $ | 183,878 | $ | 124,314 | |||
Basic net income per share effect | $ | 0.005 | $ | 0.004 |
STOCK_OPTIONS_WARRANTS_AND_CON1
STOCK OPTIONS, WARRANTS AND CONVERTIBLE NOTES (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Weighted Average | |||||||||||||
Number of Shares | Exercise Price | ||||||||||||
Outstanding as of January 1, 2014 | 326,660 | $ | 1.01 | ||||||||||
Granted | - | - | |||||||||||
Exercised | - | - | |||||||||||
Cancelled | - | - | |||||||||||
Outstanding as of March 31, 2014 | 326,660 | 1.01 | |||||||||||
Schedule of Disclosure of Share-based Compensation, Stock Option Outstanding Summary [Table Text Block] | ' | ||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||
Remaining | |||||||||||||
Number of | Exercise | Contractual life | Number of | Exercise | |||||||||
Shares | Price | (in years) | Shares | Price | |||||||||
226,660 | $0.80 | 5 | 226,660 | $0.80 | |||||||||
100,000 | 1.5 | 5.5 | 100,000 | 1.5 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Schedule of Intangible Assets [Table Text Block] | ' | |||||||||
Remaining useful | ||||||||||
life as of March | 31-Mar-14 | |||||||||
31, 2014 | (Unaudited) | 31-Dec-13 | ||||||||
Gross carrying amount: | ||||||||||
Trade name | 7.75 years | $ | 492,235 | 492,235 | ||||||
Customer relations | 7.75 years | 304,086 | 304,086 | |||||||
796,321 | 796,321 | |||||||||
Less : Accumulated amortization | ||||||||||
Trade name | $ | (97,263 | ) | (84,576 | ) | |||||
Customer relations | (60,086 | ) | (52,249 | ) | ||||||
(157,349 | ) | (136,825 | ) | |||||||
Intangible assets, net | $ | 638,972 | 659,496 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||
2014 (nine months) | $ | 61,571 | ||||||||
2015 | 82,095 | |||||||||
2016 | 82,095 | |||||||||
2017 | 82,095 | |||||||||
2018 | 82,095 | |||||||||
Thereafter | 249,021 | |||||||||
Total | $ | 638,972 |
SUMMARIZED_INFORMATION_OF_INVE1
SUMMARIZED INFORMATION OF INVESTMENT IN THE JV COMPANY (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Combined Results of Condensed Income Statement Information [Table Text Block] | ' | ||||||
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Condensed income statement information: | |||||||
Net sales | $ | 34,860,044 | $ | - | |||
Gross income (loss) | 4,287,928 | - | |||||
Net income (loss) | 1,656,824 | - | |||||
Company’s equity in net income of JV | 828,412 | - | |||||
Schedule of Combined Results of Condensed Balance Sheet Information [Table Text Block] | ' | ||||||
31-Mar-14 | 31-Dec-13 | ||||||
Condensed balance sheet information: | |||||||
Current assets | $ | 93,135,402 | $ | 108,139,053 | |||
Noncurrent assets | 160,094,993 | 146,130,466 | |||||
Total assets | $ | 253,230,395 | $ | 254,269,519 | |||
Current liabilities | 92,401,059 | 93,772,816 | |||||
Noncurrent liabilities | - | - | |||||
Equity | 160,829,336 | 160,496,703 | |||||
Total liabilities and equity | $ | 253,230,395 | $ | 254,269,519 | |||
Schedule of Changes in the Companys Investment [Table Text Block] | ' | ||||||
Condensed income statement information: | Three Months Ended March 31, | ||||||
2014 | 2013 | ||||||
Investment in JV Company, beginning of the period, | $ | 79,331,930 | $ | - | |||
Income (loss) from equity investment | 828,412 | - | |||||
Intercompany transaction unrealized gain effects | 899,943 | - | |||||
Exchange difference | (661,106 | ) | - | ||||
Investment in JV Company, end of the period | $ | 80,399,179 | $ | - | |||
Schedule of Effects of Transactions Including Sales and Purchases [Table Text Block] | ' | ||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Sales to Kandi Changxing. | $ | 17,226,293 | $ | - | |||
Sales to Kandi Shanghai. | 6,901,779 | - | |||||
Sales to Service Company | 594,210 | - | |||||
Purchase from Kandi Changxing | 45,422 | ||||||
Purchase from Service Company | 1,509,304 | - | |||||
Schedule of Significant Balances [Table Text Block] | ' | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Due from the JV Company | $ | 4,087,989 | $ | 4,121,688 | |||
Due from Kandi Changxing | 14,459,553 | 1,576,408 | |||||
Due from Kandi Shanghai | 6,985,818 | - | |||||
Due (to) Kandi Jinhua | (3,001,103 | ) | (2,780,504 | ) | |||
Due (to) the Service Company | (906,499 | ) | - | ||||
$ | 21,625,758 | $ | 2,917,592 |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Accounts Receivable [Table Text Block] | ' | ||||||
March 31, | |||||||
2014 | December 31, | ||||||
(Unaudited) | 2013 | ||||||
Accounts receivable | $ | 22,674,057 | $ | 31,370,862 | |||
Less: Provision for doubtful debts | - | - | |||||
Accounts receivable, net | $ | 22,674,057 | $ | 31,370,862 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Schedule of Guarantees For Bank Loans [Table Text Block] | ' | ||||
Guarantee provided to | Amount | ||||
Zhejiang Kangli Metal Manufacturing Company. | $ | 4,866,654 | |||
Zhejiang Shuguang industrial Co., Ltd. | 4,866,654 | ||||
Nanlong Group Co., Ltd. | 9,733,307 | ||||
Total | $ | 19,466,615 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | ||||||||||||
Three Months Ended March 31 | |||||||||||||
2013 | |||||||||||||
2014 | |||||||||||||
Long Lived | |||||||||||||
Sales Revenue | Long Lived Assets | Sales Revenue | Assets | ||||||||||
North America | $ | 569,218 | - | $ | 1,628,080 | - | |||||||
Europe and other region | 526,602 | - | 410,717 | - | |||||||||
China | |||||||||||||
39,075,484 | 123,648,510 | 12,623,724 | 49,449,558 | ||||||||||
Total | $ | 40,171,304 | 123,648,510 | $ | 14,662,521 | 49,449,558 |
ORGANIZATION_AND_PRINCIPAL_ACT1
ORGANIZATION AND PRINCIPAL ACTIVITIES (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Organization And Principal Activities 1 | 100.00% |
Organization And Principal Activities 2 | 100.00% |
Organization And Principal Activities 3 | 50.00% |
Organization And Principal Activities 4 | 30.00% |
Organization And Principal Activities 5 | 100.00% |
Organization And Principal Activities 6 | 99.00% |
Organization And Principal Activities 7 | 50.00% |
Organization And Principal Activities 8 | 100.00% |
Organization And Principal Activities 9 | 50.00% |
Organization And Principal Activities 10 | 50.00% |
Organization And Principal Activities 11 | 90.00% |
Organization And Principal Activities 12 | 10.00% |
Organization And Principal Activities 13 | 100.00% |
Organization And Principal Activities 14 | 100.00% |
Organization And Principal Activities 15 | 100.00% |
Organization And Principal Activities 16 | 100.00% |
Organization And Principal Activities 17 | 19.00% |
Organization And Principal Activities 18 | 50.00% |
Organization And Principal Activities 19 | 9.50% |
Organization And Principal Activities 20 | 100.00% |
Organization And Principal Activities 21 | 50.00% |
Organization And Principal Activities 22 | 50.00% |
Organization And Principal Activities 23 | 100.00% |
Organization And Principal Activities 24 | 50.00% |
Organization And Principal Activities 25 | 50.00% |
Organization And Principal Activities 26 | 100.00% |
Organization And Principal Activities 27 | 50.00% |
Organization And Principal Activities 28 | 50.00% |
Organization And Principal Activities 29 | 100.00% |
Organization And Principal Activities 30 | 50.00% |
Organization And Principal Activities 31 | 50.00% |
LIQUIDITY_Narrative_Details
LIQUIDITY (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | CNY | |
M | ||
Liquidity 1 | $13,652,145 | ' |
Liquidity 2 | 16,470,855 | ' |
Liquidity 3 | ' | 97,000,000 |
Liquidity 4 | 15,735,514 | ' |
Liquidity 5 | 53,208,747 | ' |
Liquidity 6 | 33,742,132 | ' |
Liquidity 7 | $11,050,000 | ' |
Liquidity 8 | 606,000 | 606,000 |
Liquidity 9 | $18.24 | ' |
Liquidity 10 | 90,900 | 90,900 |
Liquidity 11 | $22.80 | ' |
Liquidity 12 | 18 | 18 |
PRINCIPLES_OF_CONSOLIDATION_Na
PRINCIPLES OF CONSOLIDATION (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Principles Of Consolidation 1 | 30.00% |
Principles Of Consolidation 2 | 50.00% |
Principles Of Consolidation 3 | 50.00% |
Principles Of Consolidation 4 | 10.00% |
Principles Of Consolidation 5 | 90.00% |
Principles Of Consolidation 6 | 19.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
D | |
Y | |
Summary Of Significant Accounting Policies 1 | $0 |
Summary Of Significant Accounting Policies 2 | 90 |
Summary Of Significant Accounting Policies 3 | 120 |
Summary Of Significant Accounting Policies 4 | 1,172,257 |
Summary Of Significant Accounting Policies 5 | 689,665 |
Summary Of Significant Accounting Policies 6 | $0 |
Summary Of Significant Accounting Policies 7 | 9.7 |
CONCENTRATIONS_Narrative_Detai
CONCENTRATIONS (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Concentrations 1 | 10.00% |
Concentrations 2 | 10.00% |
INCOME_PER_SHARE_Narrative_Det
INCOME PER SHARE (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Income Per Share 1 | 0 |
Income Per Share 2 | 240,507 |
LAND_USE_RIGHTS_Narrative_Deta
LAND USE RIGHTS (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Land Use Rights 1 | $9,839,526 |
Land Use Rights 2 | 9,983,647 |
Land Use Rights 3 | 89,523 |
Land Use Rights 4 | $87,160 |
PLANT_AND_EQUIPMENT_Narrative_
PLANT AND EQUIPMENT (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Plant And Equipment 1 | $11,153,071 |
Plant And Equipment 2 | 11,292,649 |
Plant And Equipment 3 | 1,276,480 |
Plant And Equipment 4 | $2,002,293 |
SHORT_TERM_BANK_LOANS_Narrativ
SHORT TERM BANK LOANS (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Short Term Bank Loans 1 | $578,647 |
Short Term Bank Loans 2 | 552,930 |
Short Term Bank Loans 3 | 27,253,260 |
Short Term Bank Loans 4 | 15,897,736 |
Short Term Bank Loans 5 | 8,111,090 |
Short Term Bank Loans 6 | 4,866,654 |
Short Term Bank Loans 7 | 3,244,436 |
Short Term Bank Loans 8 | 8,111,090 |
Short Term Bank Loans 9 | 3,244,436 |
Short Term Bank Loans 10 | 4,866,654 |
Short Term Bank Loans 11 | 17,519,954 |
Short Term Bank Loans 12 | 9,733,307 |
Short Term Bank Loans 13 | $811,109 |
NOTES_PAYABLE_Narrative_Detail
NOTES PAYABLE (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Notes Payable 1 | 0.05% |
Notes Payable 2 | $0 |
BOND_PAYABLE_Narrative_Details
BOND PAYABLE (Narrative) (Details) (CNY) | 3 Months Ended |
Mar. 31, 2014 | |
Y | |
Bond Payable 1 | 80,000,000 |
Bond Payable 2 | 3 |
Bond Payable 3 | 11.50% |
TAXES_Narrative_Details
TAXES (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Taxes 1 | 25.00% |
Taxes 2 | 15.00% |
Taxes 3 | 25.00% |
Taxes 4 | 25.00% |
Taxes 5 | 25.00% |
Taxes 6 | 50.00% |
Taxes 7 | 25.00% |
Taxes 8 | 25.00% |
Taxes 9 | 19.00% |
Taxes 10 | 25.00% |
Taxes 11 | 25.00% |
Taxes 12 | 25.00% |
Taxes 13 | 25.00% |
Taxes 14 | 25.00% |
Taxes 15 | 15.00% |
Taxes 16 | 10.00% |
Taxes 17 | 25.00% |
Taxes 18 | 50.00% |
Taxes 19 | $240,434 |
Taxes 20 | 25.00% |
Taxes 21 | 961,736 |
Taxes 22 | 377,040 |
Taxes 23 | 146,174 |
Taxes 24 | 25.00% |
Taxes 25 | 50.00% |
Taxes 26 | 1,169,395 |
Taxes 27 | 96,174 |
Taxes 28 | 10.00% |
Taxes 29 | 961,736 |
Taxes 30 | $37,704 |
Taxes 31 | 3.92% |
Taxes 32 | 5.88% |
Taxes 33 | 34.00% |
Taxes 34 | 25.00% |
Taxes 35 | 25.00% |
STOCK_OPTIONS_WARRANTS_AND_CON2
STOCK OPTIONS, WARRANTS AND CONVERTIBLE NOTES (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Y | |
M | |
Stock Options, Warrants And Convertible Notes 1 | 2,600,000 |
Stock Options, Warrants And Convertible Notes 2 | $0.80 |
Stock Options, Warrants And Convertible Notes 3 | $2,062,964 |
Stock Options, Warrants And Convertible Notes 4 | 164.00% |
Stock Options, Warrants And Convertible Notes 5 | 10 |
Stock Options, Warrants And Convertible Notes 6 | 2.76% |
Stock Options, Warrants And Convertible Notes 7 | 0.00% |
Stock Options, Warrants And Convertible Notes 8 | 2,366,672 |
Stock Options, Warrants And Convertible Notes 9 | 6,668 |
Stock Options, Warrants And Convertible Notes 10 | 350,000 |
Stock Options, Warrants And Convertible Notes 11 | $1.50 |
Stock Options, Warrants And Convertible Notes 12 | 250,000 |
Stock Options, Warrants And Convertible Notes 13 | 100,000 |
Stock Options, Warrants And Convertible Notes 14 | 2,600,000 |
Stock Options, Warrants And Convertible Notes 15 | $0.79 |
Stock Options, Warrants And Convertible Notes 16 | 100,000 |
Stock Options, Warrants And Convertible Notes 17 | 3.44 |
Stock Options, Warrants And Convertible Notes 18 | 12 |
Stock Options, Warrants And Convertible Notes 19 | 200,000 |
Stock Options, Warrants And Convertible Notes 20 | 100,000 |
Stock Options, Warrants And Convertible Notes 21 | $2 |
Stock Options, Warrants And Convertible Notes 22 | 100,000 |
Stock Options, Warrants And Convertible Notes 23 | $2.50 |
Stock Options, Warrants And Convertible Notes 24 | 200,000 |
Stock Options, Warrants And Convertible Notes 25 | 10,000,000 |
Stock Options, Warrants And Convertible Notes 26 | 800,000 |
Stock Options, Warrants And Convertible Notes 27 | 10,000,000 |
Stock Options, Warrants And Convertible Notes 28 | 6.00% |
Stock Options, Warrants And Convertible Notes 29 | $6.25 |
Stock Options, Warrants And Convertible Notes 30 | 1,600,000 |
Stock Options, Warrants And Convertible Notes 31 | $6.25 |
Stock Options, Warrants And Convertible Notes 32 | $6.56 |
Stock Options, Warrants And Convertible Notes 33 | 80,000 |
Stock Options, Warrants And Convertible Notes 34 | $3.59 |
Stock Options, Warrants And Convertible Notes 35 | $4.39 |
Stock Options, Warrants And Convertible Notes 36 | $3.11 |
Stock Options, Warrants And Convertible Notes 37 | $3.81 |
Stock Options, Warrants And Convertible Notes 38 | 1,379,148 |
Stock Options, Warrants And Convertible Notes 39 | 137,915 |
Stock Options, Warrants And Convertible Notes 40 | 10,000,000 |
Stock Options, Warrants And Convertible Notes 41 | 159,522 |
Stock Options, Warrants And Convertible Notes 42 | 3,121,121 |
Stock Options, Warrants And Convertible Notes 43 | 1,162,073 |
Stock Options, Warrants And Convertible Notes 44 | 124,123 |
Stock Options, Warrants And Convertible Notes 45 | 217,075 |
Stock Options, Warrants And Convertible Notes 46 | 13,792 |
Stock Options, Warrants And Convertible Notes 47 | 3,027,272 |
Stock Options, Warrants And Convertible Notes 48 | 1,210,912 |
Stock Options, Warrants And Convertible Notes 49 | 0.4 |
Stock Options, Warrants And Convertible Notes 50 | $6.30 |
Stock Options, Warrants And Convertible Notes 51 | 5.4 |
Stock Options, Warrants And Convertible Notes 52 | $11 |
Stock Options, Warrants And Convertible Notes 53 | 847,276 |
Stock Options, Warrants And Convertible Notes 54 | 4,376,036 |
Stock Options, Warrants And Convertible Notes 55 | $6.03 |
Stock Options, Warrants And Convertible Notes 56 | 1,750,415 |
Stock Options, Warrants And Convertible Notes 57 | $7.24 |
Stock Options, Warrants And Convertible Notes 58 | 728,936 |
Stock Options, Warrants And Convertible Notes 59 | $7.24 |
Stock Options, Warrants And Convertible Notes 60 | 291,574 |
Stock Options, Warrants And Convertible Notes 61 | 8.69 |
Stock Options, Warrants And Convertible Notes 62 | 262,562 |
Stock Options, Warrants And Convertible Notes 63 | $7.24 |
Stock Options, Warrants And Convertible Notes 64 | $10.83 |
Stock Options, Warrants And Convertible Notes 65 | 1,429,393 |
Stock Options, Warrants And Convertible Notes 66 | $15 |
Stock Options, Warrants And Convertible Notes 67 | 14,294 |
Stock Options, Warrants And Convertible Notes 68 | 12.12 |
Stock Options, Warrants And Convertible Notes 69 | 606,000 |
Stock Options, Warrants And Convertible Notes 70 | $18.24 |
Stock Options, Warrants And Convertible Notes 71 | 11,053,440 |
Stock Options, Warrants And Convertible Notes 72 | 90,900 |
Stock Options, Warrants And Convertible Notes 73 | $22.80 |
Stock Options, Warrants And Convertible Notes 74 | 36,360 |
Stock Options, Warrants And Convertible Notes 75 | $22.80 |
Stock Options, Warrants And Convertible Notes 76 | $9.20 |
STOCK_AWARD_Narrative_Details
STOCK AWARD (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Stock Award 1 | 5,000 |
Stock Award 2 | 5,000 |
Stock Award 3 | 5,000 |
Stock Award 4 | 2,500 |
Stock Award 5 | 335,000 |
Stock Award 6 | 10.00% |
Stock Award 7 | 10.00% |
Stock Award 8 | 10.00% |
Stock Award 9 | 10.00% |
Stock Award 10 | 10.00% |
Stock Award 11 | 1,018,839 |
INTANGIBLE_ASSETS_Narrative_De
INTANGIBLE ASSETS (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Intangible Assets 1 | $20,524 |
Intangible Assets 2 | $20,524 |
SUMMARIZED_INFORMATION_OF_INVE2
SUMMARIZED INFORMATION OF INVESTMENT IN THE JV COMPANY (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Summarized Information Of Investment In The Jv Company 1 | 100.00% |
Summarized Information Of Investment In The Jv Company 2 | 100.00% |
Summarized Information Of Investment In The Jv Company 3 | 100.00% |
Summarized Information Of Investment In The Jv Company 4 | 100.00% |
Summarized Information Of Investment In The Jv Company 5 | 100.00% |
Summarized Information Of Investment In The Jv Company 6 | 19.00% |
ACCOUNTS_RECEIVABLE_Narrative_
ACCOUNTS RECEIVABLE (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Accounts Receivable 1 | $559,019 |
Accounts Receivable 2 | 1,184,180 |
Accounts Receivable 3 | 2,039,176 |
Accounts Receivable 4 | $2,800,958 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies 1 | $4,866,654 |
Commitments And Contingencies 2 | 4,866,654 |
Commitments And Contingencies 3 | 3,244,436 |
Commitments And Contingencies 4 | $6,488,871 |
Schedule_of_Fair_Value_by_Bala
Schedule of Fair Value, by Balance Sheet Grouping (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 1 | $20,498,275 |
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 2 | 20,498,275 |
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 3 | 0 |
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 4 | 0 |
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 5 | 25,347,054 |
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 6 | 0 |
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 7 | 0 |
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 8 | $25,347,054 |
Schedule_of_Property_and_Equip
Schedule of Property and Equipment Estimated Useful Lives (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Y | |
Summary Of Significant Accounting Policies Schedule Of Property And Equipment Estimated Useful Lives 1 | 30 |
Summary Of Significant Accounting Policies Schedule Of Property And Equipment Estimated Useful Lives 2 | 10 |
Summary Of Significant Accounting Policies Schedule Of Property And Equipment Estimated Useful Lives 3 | 5 |
Summary Of Significant Accounting Policies Schedule Of Property And Equipment Estimated Useful Lives 4 | 5 |
Summary Of Significant Accounting Policies Schedule Of Property And Equipment Estimated Useful Lives 5 | 5 |
Schedule_of_Average_Foreign_Cu
Schedule of Average Foreign Currency Exchange Rates (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Summary Of Significant Accounting Policies Schedule Of Average Foreign Currency Exchange Rates 1 | 6.1644 |
Summary Of Significant Accounting Policies Schedule Of Average Foreign Currency Exchange Rates 2 | 6.114 |
Summary Of Significant Accounting Policies Schedule Of Average Foreign Currency Exchange Rates 3 | 6.2816 |
Summary Of Significant Accounting Policies Schedule Of Average Foreign Currency Exchange Rates 4 | 6.1199 |
Summary Of Significant Accounting Policies Schedule Of Average Foreign Currency Exchange Rates 5 | 6.1982 |
Summary Of Significant Accounting Policies Schedule Of Average Foreign Currency Exchange Rates 6 | 6.2858 |
Schedule_of_Revenue_and_Accoun
Schedule of Revenue and Accounts Receivable Percentage by Major Customers (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 1 | 43.00% |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 2 | $0 |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 3 | 0 |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 4 | 0 |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 5 | 19.00% |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 6 | 0 |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 7 | 22.00% |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 8 | 52.00% |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 9 | 17.00% |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 10 | 0 |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 11 | 0 |
Concentrations Schedule Of Revenue And Accounts Receivable Percentage By Major Customers 12 | $0 |
Schedule_of_Purchases_and_Acco
Schedule of Purchases and Accounts Payable Percentage by Major Suppliers (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 1 | 18.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 2 | $0 |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 3 | 18.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 4 | 3.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 5 | 15.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 6 | 0 |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 7 | 13.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 8 | 0 |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 9 | 14.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 10 | 49.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 11 | 0 |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 12 | 13.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 13 | 14.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 14 | 0 |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 15 | 12.00% |
Concentrations Schedule Of Purchases And Accounts Payable Percentage By Major Suppliers 16 | $0 |
Schedule_of_Earnings_Per_Share
Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 1 | ($14,086,160) |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 2 | 2,236,873 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 3 | 39,597,785 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 4 | 32,298,832 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 5 | 0 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 6 | 240,507 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 7 | 39,597,785 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 8 | $32,539,339 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 9 | -0.36 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 10 | 0.07 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 11 | -0.36 |
Income Per Share Schedule Of Earnings Per Share, Basic And Diluted 12 | 0.07 |
Schedule_of_Inventories_Detail
Schedule of Inventories (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Inventories Schedule Of Inventories 1 | $7,150,481 |
Inventories Schedule Of Inventories 2 | 2,646,041 |
Inventories Schedule Of Inventories 3 | 5,458,551 |
Inventories Schedule Of Inventories 4 | 5,065,126 |
Inventories Schedule Of Inventories 5 | 1,387,816 |
Inventories Schedule Of Inventories 6 | 1,829,281 |
Inventories Schedule Of Inventories 7 | 13,996,848 |
Inventories Schedule Of Inventories 8 | 9,540,448 |
Inventories Schedule Of Inventories 9 | -349,850 |
Inventories Schedule Of Inventories 10 | -352,734 |
Inventories Schedule Of Inventories 11 | 13,646,998 |
Inventories Schedule Of Inventories 12 | $9,187,714 |
Schedule_of_Notes_Receivable_D
Schedule of Notes Receivable (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Notes Receivable Schedule Of Notes Receivable 1 | 9.60% |
Notes Receivable Schedule Of Notes Receivable 2 | $27,193,957 |
Notes Receivable Schedule Of Notes Receivable 3 | 13,794,094 |
Notes Receivable Schedule Of Notes Receivable 4 | 7.20% |
Notes Receivable Schedule Of Notes Receivable 5 | 6,262,802 |
Notes Receivable Schedule Of Notes Receivable 6 | 0 |
Notes Receivable Schedule Of Notes Receivable 7 | 36.00% |
Notes Receivable Schedule Of Notes Receivable 8 | 1,622,218 |
Notes Receivable Schedule Of Notes Receivable 9 | 0 |
Notes Receivable Schedule Of Notes Receivable 10 | 35,078,977 |
Notes Receivable Schedule Of Notes Receivable 11 | 13,794,094 |
Notes Receivable Schedule Of Notes Receivable 12 | 0 |
Notes Receivable Schedule Of Notes Receivable 13 | 0 |
Notes Receivable Schedule Of Notes Receivable 14 | 35,078,977 |
Notes Receivable Schedule Of Notes Receivable 15 | $13,794,094 |
Schedule_of_Detailed_Unrelated
Schedule of Detailed Unrelated Party Notes Receivable as of December 31, 2013 (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Notes Receivable Schedule Of Detailed Unrelated Party Notes Receivable As Of December 31, 2013 1 | $13,794,094 |
Schedule_of_Detailed_Unrelated1
Schedule of Detailed Unrelated Party Notes Receivable as of March 31, 2014 (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Notes Receivable Schedule Of Detailed Unrelated Party Notes Receivable As Of March 31, 2014 1 | $27,193,957 |
Notes Receivable Schedule Of Detailed Unrelated Party Notes Receivable As Of March 31, 2014 2 | 6,262,802 |
Notes Receivable Schedule Of Detailed Unrelated Party Notes Receivable As Of March 31, 2014 3 | $1,622,218 |
Schedule_of_Land_Use_Rights_De
Schedule of Land Use Rights (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Land Use Rights Schedule Of Land Use Rights 1 | $16,090,568 |
Land Use Rights Schedule Of Land Use Rights 2 | 16,223,208 |
Land Use Rights Schedule Of Land Use Rights 3 | -1,844,422 |
Land Use Rights Schedule Of Land Use Rights 4 | -1,770,017 |
Land Use Rights Schedule Of Land Use Rights 5 | 14,246,146 |
Land Use Rights Schedule Of Land Use Rights 6 | $14,453,191 |
Schedule_of_Land_Use_Rights_Ex
Schedule of Land Use Rights Expected Amortization Expense (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Land Use Rights Schedule Of Land Use Rights Expected Amortization Expense 1 | $268,570 |
Land Use Rights Schedule Of Land Use Rights Expected Amortization Expense 2 | 358,093 |
Land Use Rights Schedule Of Land Use Rights Expected Amortization Expense 3 | 358,093 |
Land Use Rights Schedule Of Land Use Rights Expected Amortization Expense 4 | 358,093 |
Land Use Rights Schedule Of Land Use Rights Expected Amortization Expense 5 | 358,093 |
Land Use Rights Schedule Of Land Use Rights Expected Amortization Expense 6 | 12,545,204 |
Land Use Rights Schedule Of Land Use Rights Expected Amortization Expense 7 | $14,246,146 |
Schedule_of_Plant_and_Equipmen
Schedule of Plant and Equipment (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Plant And Equipment Schedule Of Plant And Equipment 1 | $14,467,322 |
Plant And Equipment Schedule Of Plant And Equipment 2 | 14,514,873 |
Plant And Equipment Schedule Of Plant And Equipment 3 | 10,719,013 |
Plant And Equipment Schedule Of Plant And Equipment 4 | 10,771,899 |
Plant And Equipment Schedule Of Plant And Equipment 5 | 258,379 |
Plant And Equipment Schedule Of Plant And Equipment 6 | 251,690 |
Plant And Equipment Schedule Of Plant And Equipment 7 | 286,559 |
Plant And Equipment Schedule Of Plant And Equipment 8 | 288,004 |
Plant And Equipment Schedule Of Plant And Equipment 9 | 33,952,746 |
Plant And Equipment Schedule Of Plant And Equipment 10 | 34,230,014 |
Plant And Equipment Schedule Of Plant And Equipment 11 | 59,684,019 |
Plant And Equipment Schedule Of Plant And Equipment 12 | 60,056,480 |
Plant And Equipment Schedule Of Plant And Equipment 13 | -3,107,795 |
Plant And Equipment Schedule Of Plant And Equipment 14 | -3,010,451 |
Plant And Equipment Schedule Of Plant And Equipment 15 | -10,226,031 |
Plant And Equipment Schedule Of Plant And Equipment 16 | -10,278,409 |
Plant And Equipment Schedule Of Plant And Equipment 17 | -201,897 |
Plant And Equipment Schedule Of Plant And Equipment 18 | -196,303 |
Plant And Equipment Schedule Of Plant And Equipment 19 | -234,080 |
Plant And Equipment Schedule Of Plant And Equipment 20 | -228,442 |
Plant And Equipment Schedule Of Plant And Equipment 21 | -17,611,346 |
Plant And Equipment Schedule Of Plant And Equipment 22 | -16,648,583 |
Plant And Equipment Schedule Of Plant And Equipment 23 | -31,381,149 |
Plant And Equipment Schedule Of Plant And Equipment 24 | -30,362,188 |
Plant And Equipment Schedule Of Plant And Equipment 25 | -357,826 |
Plant And Equipment Schedule Of Plant And Equipment 26 | -360,776 |
Plant And Equipment Schedule Of Plant And Equipment 27 | 27,945,044 |
Plant And Equipment Schedule Of Plant And Equipment 28 | $29,333,516 |
Schedule_of_Shortterm_Bank_Loa
Schedule of Short-term Bank Loans (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Short Term Bank Loans Schedule Of Short-term Bank Loans 1 | 6.30% |
Short Term Bank Loans Schedule Of Short-term Bank Loans 2 | $1,622,217 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 3 | 1,635,590 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 4 | 6.30% |
Short Term Bank Loans Schedule Of Short-term Bank Loans 5 | 811,109 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 6 | 817,795 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 7 | 6.30% |
Short Term Bank Loans Schedule Of Short-term Bank Loans 8 | 3,244,436 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 9 | 3,271,181 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 10 | 0.93% |
Short Term Bank Loans Schedule Of Short-term Bank Loans 11 | 811,109 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 12 | 817,795 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 13 | 6.94% |
Short Term Bank Loans Schedule Of Short-term Bank Loans 14 | 12,653,300 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 15 | 12,757,606 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 16 | 6.60% |
Short Term Bank Loans Schedule Of Short-term Bank Loans 17 | 6,488,871 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 18 | 6,542,362 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 19 | 6.60% |
Short Term Bank Loans Schedule Of Short-term Bank Loans 20 | 4,866,654 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 21 | 4,906,771 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 22 | 7.20% |
Short Term Bank Loans Schedule Of Short-term Bank Loans 23 | 3,244,436 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 24 | 3,271,181 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 25 | 33,742,132 |
Short Term Bank Loans Schedule Of Short-term Bank Loans 26 | $34,020,281 |
Schedule_of_Notes_Payable_Deta
Schedule of Notes Payable (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Notes Payable Schedule Of Notes Payable 1 | $0 |
Notes Payable Schedule Of Notes Payable 2 | 1,962,709 |
Notes Payable Schedule Of Notes Payable 3 | 8,111,089 |
Notes Payable Schedule Of Notes Payable 4 | 8,177,952 |
Notes Payable Schedule Of Notes Payable 5 | 6,488,872 |
Notes Payable Schedule Of Notes Payable 6 | 6,542,362 |
Notes Payable Schedule Of Notes Payable 7 | 14,599,961 |
Notes Payable Schedule Of Notes Payable 8 | 16,683,023 |
Notes Payable Schedule Of Notes Payable 9 | 0 |
Notes Payable Schedule Of Notes Payable 10 | 0 |
Notes Payable Schedule Of Notes Payable 11 | 0 |
Notes Payable Schedule Of Notes Payable 12 | 0 |
Notes Payable Schedule Of Notes Payable 13 | 14,599,961 |
Notes Payable Schedule Of Notes Payable 14 | $16,683,023 |
Schedule_of_Bond_Payable_Detai
Schedule of Bond Payable (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Bond Payable Schedule Of Bond Payable 1 | $12,977,743 |
Bond Payable Schedule Of Bond Payable 2 | 11.50% |
Bond Payable Schedule Of Bond Payable 3 | $12,977,743 |
Schedule_of_Components_of_Inco
Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Taxes Schedule Of Components Of Income Tax Expense (benefit) 1 | $108,101 |
Taxes Schedule Of Components Of Income Tax Expense (benefit) 2 | 91,444 |
Taxes Schedule Of Components Of Income Tax Expense (benefit) 3 | 0 |
Taxes Schedule Of Components Of Income Tax Expense (benefit) 4 | 0 |
Taxes Schedule Of Components Of Income Tax Expense (benefit) 5 | 0 |
Taxes Schedule Of Components Of Income Tax Expense (benefit) 6 | 0 |
Taxes Schedule Of Components Of Income Tax Expense (benefit) 7 | 108,101 |
Taxes Schedule Of Components Of Income Tax Expense (benefit) 8 | $91,444 |
Schedule_of_Expected_Component
Schedule of Expected Components of Income Tax Expense (Benefit) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 1 | ($3,776,682) |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 2 | 204,940 |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 3 | -183,878 |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 4 | -124,314 |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 5 | -79,804 |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 6 | 10,803 |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 7 | 4,148,465 |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 8 | 15 |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 9 | 108,101 |
Taxes Schedule Of Expected Components Of Income Tax Expense (benefit) 10 | $91,444 |
Schedule_of_Deferred_Tax_Asset
Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Taxes Schedule Of Deferred Tax Assets And Liabilities 1 | ($21,626) |
Taxes Schedule Of Deferred Tax Assets And Liabilities 2 | 47,224 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 3 | -21,626 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 4 | 47,224 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 5 | 147,302 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 6 | -33,518 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 7 | 105,382 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 8 | 252,684 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 9 | -33,518 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 10 | 231,058 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 11 | 13,706 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 12 | -1,788 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 13 | 81,076 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 14 | 4,148,465 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 15 | 3,992,906 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 16 | -4,148,465 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 17 | -3,992,906 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 18 | -1,788 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 19 | 81,076 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 20 | -1,192,636 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 21 | -1,009,477 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 22 | -1,192,636 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 23 | -1,009,477 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 24 | -1,194,424 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 25 | -928,401 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 26 | -963,366 |
Taxes Schedule Of Deferred Tax Assets And Liabilities 27 | ($914,695) |
Summary_of_Income_Tax_Holiday_
Summary of Income Tax Holiday (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Taxes Summary Of Income Tax Holiday 1 | $183,878 |
Taxes Summary Of Income Tax Holiday 2 | $124,314 |
Taxes Summary Of Income Tax Holiday 3 | 0.005 |
Taxes Summary Of Income Tax Holiday 4 | 0.004 |
Schedule_of_Sharebased_Compens
Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 1 | $326,660 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 2 | 1.01 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 3 | 0 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 4 | 0 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 5 | 0 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 6 | 0 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 7 | 0 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 8 | 0 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 9 | $326,660 |
Stock Options, Warrants And Convertible Notes Schedule Of Share-based Compensation, Stock Options, Activity 10 | 1.01 |
Schedule_of_Disclosure_of_Shar
Schedule of Disclosure of Share-based Compensation, Stock Option Outstanding Summary (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 1 | $226,660 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 2 | 0.8 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 3 | 5 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 4 | 226,660 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 5 | 0.8 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 6 | 100,000 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 7 | 1.5 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 8 | 5.5 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 9 | $100,000 |
Stock Options, Warrants And Convertible Notes Schedule Of Disclosure Of Share-based Compensation, Stock Option Outstanding Summary 10 | 1.5 |
Schedule_of_Intangible_Assets_
Schedule of Intangible Assets (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Y | |
Intangible Assets Schedule Of Intangible Assets 1 | $31 |
Intangible Assets Schedule Of Intangible Assets 2 | 7.75 |
Intangible Assets Schedule Of Intangible Assets 3 | 492,235 |
Intangible Assets Schedule Of Intangible Assets 4 | 492,235 |
Intangible Assets Schedule Of Intangible Assets 5 | 7.75 |
Intangible Assets Schedule Of Intangible Assets 6 | 304,086 |
Intangible Assets Schedule Of Intangible Assets 7 | 304,086 |
Intangible Assets Schedule Of Intangible Assets 8 | 796,321 |
Intangible Assets Schedule Of Intangible Assets 9 | 796,321 |
Intangible Assets Schedule Of Intangible Assets 10 | -97,263 |
Intangible Assets Schedule Of Intangible Assets 11 | -84,576 |
Intangible Assets Schedule Of Intangible Assets 12 | -60,086 |
Intangible Assets Schedule Of Intangible Assets 13 | -52,249 |
Intangible Assets Schedule Of Intangible Assets 14 | -157,349 |
Intangible Assets Schedule Of Intangible Assets 15 | -136,825 |
Intangible Assets Schedule Of Intangible Assets 16 | 638,972 |
Intangible Assets Schedule Of Intangible Assets 17 | $659,496 |
Schedule_of_FiniteLived_Intang
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Intangible Assets Schedule Of Finite-lived Intangible Assets, Future Amortization Expense 1 | $61,571 |
Intangible Assets Schedule Of Finite-lived Intangible Assets, Future Amortization Expense 2 | 82,095 |
Intangible Assets Schedule Of Finite-lived Intangible Assets, Future Amortization Expense 3 | 82,095 |
Intangible Assets Schedule Of Finite-lived Intangible Assets, Future Amortization Expense 4 | 82,095 |
Intangible Assets Schedule Of Finite-lived Intangible Assets, Future Amortization Expense 5 | 82,095 |
Intangible Assets Schedule Of Finite-lived Intangible Assets, Future Amortization Expense 6 | 249,021 |
Intangible Assets Schedule Of Finite-lived Intangible Assets, Future Amortization Expense 7 | $638,972 |
Schedule_of_Combined_Results_o
Schedule of Combined Results of Condensed Income Statement Information (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Income Statement Information 1 | $34,860,044 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Income Statement Information 2 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Income Statement Information 3 | 4,287,928 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Income Statement Information 4 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Income Statement Information 5 | 1,656,824 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Income Statement Information 6 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Income Statement Information 7 | 828,412 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Income Statement Information 8 | $0 |
Schedule_of_Combined_Results_o1
Schedule of Combined Results of Condensed Balance Sheet Information (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 1 | $93,135,402 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 2 | 108,139,053 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 3 | 160,094,993 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 4 | 146,130,466 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 5 | 253,230,395 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 6 | 254,269,519 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 7 | 92,401,059 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 8 | 93,772,816 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 9 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 10 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 11 | 160,829,336 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 12 | 160,496,703 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 13 | 253,230,395 |
Summarized Information Of Investment In The Jv Company Schedule Of Combined Results Of Condensed Balance Sheet Information 14 | $254,269,519 |
Schedule_of_Changes_in_the_Com
Schedule of Changes in the Companys Investment (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 1 | $79,331,930 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 2 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 3 | 828,412 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 4 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 5 | 899,943 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 6 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 7 | -661,106 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 8 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 9 | 80,399,179 |
Summarized Information Of Investment In The Jv Company Schedule Of Changes In The Companys Investment 10 | $0 |
Schedule_of_Effects_of_Transac
Schedule of Effects of Transactions Including Sales and Purchases (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 1 | $17,226,293 |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 2 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 3 | 6,901,779 |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 4 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 5 | 594,210 |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 6 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 7 | 45,422 |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 8 | 1,509,304 |
Summarized Information Of Investment In The Jv Company Schedule Of Effects Of Transactions Including Sales And Purchases 9 | $0 |
Schedule_of_Significant_Balanc
Schedule of Significant Balances (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 1 | $4,087,989 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 2 | 4,121,688 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 3 | 14,459,553 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 4 | 1,576,408 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 5 | 6,985,818 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 6 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 7 | -3,001,103 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 8 | -2,780,504 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 9 | -906,499 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 10 | 0 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 11 | 21,625,758 |
Summarized Information Of Investment In The Jv Company Schedule Of Significant Balances 12 | $2,917,592 |
Schedule_of_Accounts_Receivabl
Schedule of Accounts Receivable (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Accounts Receivable Schedule Of Accounts Receivable 1 | $22,674,057 |
Accounts Receivable Schedule Of Accounts Receivable 2 | 31,370,862 |
Accounts Receivable Schedule Of Accounts Receivable 3 | 0 |
Accounts Receivable Schedule Of Accounts Receivable 4 | 0 |
Accounts Receivable Schedule Of Accounts Receivable 5 | 22,674,057 |
Accounts Receivable Schedule Of Accounts Receivable 6 | $31,370,862 |
Schedule_of_Guarantees_For_Ban
Schedule of Guarantees For Bank Loans (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Schedule Of Guarantees For Bank Loans 1 | $4,866,654 |
Commitments And Contingencies Schedule Of Guarantees For Bank Loans 2 | 4,866,654 |
Commitments And Contingencies Schedule Of Guarantees For Bank Loans 3 | 9,733,307 |
Commitments And Contingencies Schedule Of Guarantees For Bank Loans 4 | $19,466,615 |
Schedule_of_Revenue_from_Exter
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 1 | $569,218 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 2 | 0 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 3 | 1,628,080 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 4 | 0 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 5 | 526,602 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 6 | 0 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 7 | 410,717 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 8 | 0 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 9 | 39,075,484 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 10 | 123,648,510 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 11 | 12,623,724 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 12 | 49,449,558 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 13 | 40,171,304 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 14 | 123,648,510 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 15 | 14,662,521 |
Segment Reporting Schedule Of Revenue From External Customers And Long-lived Assets, By Geographical Areas 16 | $49,449,558 |