Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 05, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | KANDI TECHNOLOGIES GROUP, INC. | |
Trading Symbol | KNDI | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 54,600,758 | |
Amendment Flag | false | |
Entity Central Index Key | 0001316517 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33997 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0363723 | |
Entity Address, Address Line One | Jinhua City Industrial Zone | |
Entity Address, City or Town | Jinhua | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 321016 | |
City Area Code | (86 - 579) | |
Local Phone Number | 82239856 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 3,457,498 | $ 5,490,557 |
Restricted cash | 3,221,053 | 11,022,078 |
Accounts receivable (net of allowance for doubtful accounts of $251,012 and $254,665 as of June 30, 2020 and December 31, 2019, respectively) | 60,020,455 | 61,181,849 |
Inventories | 28,245,267 | 27,736,566 |
Notes receivable | 42,487,225 | |
Other receivables | 42,661,342 | 5,019,971 |
Prepayments and prepaid expense | 10,407,572 | 10,615,063 |
Amount due from the Affiliate Company, net | 20,107,347 | 31,330,763 |
Other current assets | 13,283,400 | 688,364 |
TOTAL CURRENT ASSETS | 181,403,934 | 195,572,436 |
LONG-TERM ASSETS | ||
Property, plant and equipment, net | 69,907,964 | 74,407,858 |
Intangible assets | 3,298,384 | 3,654,772 |
Land use rights, net | 8,765,196 | 11,272,815 |
Investment in the Affiliate Company | 42,490,448 | 47,228,614 |
Goodwill | 27,962,871 | 28,270,400 |
Other long term assets | 10,529,348 | 10,811,501 |
TOTAL Long-Term Assets | 162,954,211 | 175,645,960 |
TOTAL ASSETS | 344,358,145 | 371,218,396 |
CURRENT LIABILITIES | ||
Accounts payable | 59,656,133 | 72,093,940 |
Other payables and accrued expenses | 4,239,760 | 6,078,041 |
Short-term loans | 25,980,364 | |
Notes payable | 2,971,053 | 10,765,344 |
Income tax payable | 2,901,610 | 1,796,601 |
Advance receipts | 18,497,676 | |
Long term loans - current portion | 16,128,576 | 13,779,641 |
Other current liability | 1,421,364 | 1,379,808 |
Total Current Liabilities | 105,816,172 | 131,873,739 |
LONG-TERM LIABILITIES | ||
Long term loans | 11,712,415 | 14,353,792 |
Deferred taxes liability | 3,448,922 | 1,362,786 |
Contingent consideration liability | 2,334,000 | 5,197,000 |
Other long-term liability | 565,915 | 574,152 |
Total Long-Term Liabilities | 18,061,252 | 21,487,730 |
TOTAL LIABILITIES | 123,877,424 | 153,361,469 |
STOCKHOLDER’S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 56,273,102 and 56,263,102 shares issued and 54,352,158 and 52,839,441 outstanding at June 30,2020 and December 31,2019, respectively | 54,352 | 52,839 |
Less: Treasury stock (487,155 shares with average price of $5.09 at June 30,2020 and December 31,2019, respectively ) | (2,477,965) | (2,477,965) |
Additional paid-in capital | 262,878,585 | 259,691,370 |
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at June 30,2020 and December 31,2019, respectively) | (14,205,339) | (16,685,736) |
Accumulated other comprehensive loss | (25,768,912) | (22,723,581) |
TOTAL STOCKHOLDERS’ EQUITY | 220,480,721 | 217,856,927 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 344,358,145 | $ 371,218,396 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts (in Dollars) | $ 251,012 | $ 254,665 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 56,273,102 | 56,263,102 |
Common stock, shares outstanding | 54,352,158 | 52,839,441 |
Treasury stock, shares | 487,155 | 487,155 |
Treasury stock, average price (in Dollars per share) | $ 5.09 | $ 5.09 |
Accumulated deficit restricted portion (in Dollars) | $ 4,422,033 | $ 4,422,033 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
REVENUES FROM UNRELATED PARTY, NET | $ 19,436,120 | $ 20,056,696 | $ 25,808,544 | $ 36,391,659 |
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTY, NET | 956 | 4,089,534 | 956 | 5,823,031 |
REVENUES, NET | 19,437,076 | 24,146,230 | 25,809,500 | 42,214,690 |
COST OF GOODS SOLD | (15,900,298) | (19,944,076) | (21,105,463) | (34,876,099) |
GROSS PROFIT | 3,536,778 | 4,202,154 | 4,704,037 | 7,338,591 |
OPERATING INCOME (EXPENSES): | ||||
Research and development | (1,149,901) | (632,590) | (1,790,141) | (1,170,023) |
Selling and marketing | (763,666) | (899,478) | (1,641,972) | (1,517,481) |
General and administrative | (3,907,191) | (5,623,798) | (6,973,926) | (7,663,326) |
Gain on disposal of long-live asset | 13,907,574 | 13,907,574 | ||
Total Operating Income (Expenses) | 8,086,816 | (7,155,866) | 3,501,535 | (10,350,830) |
INCOME (LOSS) FROM OPERATIONS | 11,623,594 | (2,953,712) | 8,205,572 | (3,012,239) |
OTHER INCOME (EXPENSES): | ||||
Interest income | 221,792 | 97,814 | 560,736 | 350,218 |
Interest expense | (1,123,056) | (429,355) | (2,105,990) | (868,538) |
Change in fair value of contingent consideration | (929,000) | 548,000 | 2,863,000 | 637,000 |
Government grants | 86,799 | 175,319 | 97,898 | 223,043 |
Gain from equity dilution in the Affiliate Company | (24,131) | 4,341,259 | ||
Share of loss after tax of the Affiliate Company | (2,978,529) | (4,500,201) | (4,081,299) | (14,449,359) |
Other income (expenses), net | 1,043,335 | (174,597) | 1,062,985 | 299,793 |
Total other expenses, net | (3,678,659) | (4,307,151) | (1,602,670) | (9,466,584) |
INCOME (LOSS) BEFORE INCOME TAXES | 7,944,935 | (7,260,863) | 6,602,902 | (12,478,823) |
INCOME TAX (EXPENSE) BENEFIT | (3,889,889) | (57,295) | (4,122,502) | 751,193 |
NET INCOME (LOSS) | 4,055,046 | (7,318,158) | 2,480,400 | (11,727,630) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation | 477,734 | (4,915,589) | (3,045,331) | 488,439 |
COMPREHENSIVE INCOME (LOSS) | $ 4,532,780 | $ (12,233,747) | $ (564,931) | $ (11,239,191) |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC (in Shares) | 53,369,602 | 52,806,331 | 52,862,043 | 52,189,237 |
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED (in Shares) | 53,369,602 | 52,806,331 | 52,862,043 | 52,189,237 |
NET INCOME (LOSS) PER SHARE, BASIC (in Dollars per share) | $ 0.08 | $ (0.14) | $ 0.05 | $ (0.22) |
NET INCOME (LOSS) PER SHARE, DILUTED (in Dollars per share) | $ 0.08 | $ (0.14) | $ 0.05 | $ (0.22) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total |
Balance at Dec. 31, 2018 | $ 51,484 | $ 254,989,657 | $ (9,497,009) | $ (19,921,258) | $ 225,622,874 | |
Balance (in Shares) at Dec. 31, 2018 | 51,484,444 | |||||
Stock issuance and award | $ 1,097 | 3,387,379 | 3,388,476 | |||
Stock issuance and award (in Shares) | 1,096,397 | |||||
Net income (loss) | (4,409,472) | (4,409,472) | ||||
Foreign currency translation | 5,404,028 | 5,404,028 | ||||
Balance at Mar. 31, 2019 | $ 52,581 | 258,377,036 | (13,906,481) | (14,517,230) | 230,005,906 | |
Balance (in Shares) at Mar. 31, 2019 | 52,580,841 | |||||
Stock issuance and award | $ 238 | 1,259,569 | 1,259,807 | |||
Stock issuance and award (in Shares) | 238,600 | |||||
Net income (loss) | (7,318,158) | (7,318,158) | ||||
Foreign currency translation | (4,915,589) | (4,915,589) | ||||
Balance at Jun. 30, 2019 | $ 52,819 | 259,636,605 | (21,224,639) | (19,432,819) | 219,031,966 | |
Balance (in Shares) at Jun. 30, 2019 | 52,819,441 | |||||
Balance at Dec. 31, 2019 | $ 52,839 | (2,477,965) | 259,691,370 | (16,685,736) | (22,723,581) | 217,856,927 |
Balance (in Shares) at Dec. 31, 2019 | 52,839,441 | |||||
Stock issuance and award | $ 10 | 22,290 | 22,300 | |||
Stock issuance and award (in Shares) | 10,000 | |||||
Net income (loss) | (1,574,646) | (1,574,646) | ||||
Foreign currency translation | (3,523,065) | (3,523,065) | ||||
Balance at Mar. 31, 2020 | $ 52,849 | (2,477,965) | 259,713,660 | (18,260,382) | (26,246,646) | 212,781,516 |
Balance (in Shares) at Mar. 31, 2020 | 52,849,441 | |||||
Stock issuance and award | $ 1,503 | 3,164,925 | 3,166,428 | |||
Stock issuance and award (in Shares) | 1,502,717 | |||||
Net income (loss) | 4,055,043 | 4,055,043 | ||||
Foreign currency translation | 477,734 | 477,734 | ||||
Balance at Jun. 30, 2020 | $ 54,352 | $ (2,477,965) | $ 262,878,585 | $ (14,205,339) | $ (25,768,912) | $ 220,480,721 |
Balance (in Shares) at Jun. 30, 2020 | 54,352,158 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 2,480,400 | $ (11,727,630) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 4,022,676 | 4,376,097 |
Impairments | (148,054) | 59,799 |
Allowance for doubtful accounts | 15,543 | |
Deferred taxes | 2,089,505 | 51,275 |
Share of loss after tax of the Affiliate Company | 4,081,299 | 14,449,359 |
Gain from equity dilution in the Affiliate Company | (4,341,259) | |
Gain on disposal of long-live asset | (13,907,574) | |
Change in fair value of contingent consideration | (2,863,000) | (637,000) |
Stock compensation cost | 847,546 | 1,314,408 |
(Increase) Decrease In: | ||
Accounts receivable | (1,431,388) | (16,560,338) |
Notes receivable | 250,593 | |
Notes receivable from the Affiliate Company and related party | 442,223 | |
Inventories | (743,483) | (7,093,904) |
Other receivables and other assets | (11,248,701) | (6,258,341) |
Advances to supplier and prepayments and prepaid expenses | (12,586,777) | 708,825 |
Amount due from the Affiliate Company | 4,129,516 | (4,128,506) |
Increase (Decrease) In: | ||
Accounts payable | (282,560) | 387,505 |
Other payables and accrued liabilities | 736,715 | 7,868,402 |
Notes payable | (10,664,922) | (10,161,233) |
Income tax payable | 1,161,312 | (2,134,722) |
Net cash used in by operating activities | (34,327,490) | (33,118,904) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (59,670) | (512,707) |
Proceeds from disposal of long-live asset | 34,696,547 | |
Cash received from equity sale in the Affiliate Company | 15,641,886 | |
Advance receipts of equity transfer | 14,740,783 | |
Net cash provided by investing activities | 50,278,763 | 14,228,076 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 24,031,625 | 17,541,532 |
Repayments of short-term loans | (49,769,638) | (15,920,046) |
Proceeds from long-term loans | 394,116 | |
Repayments of long-term loans | (284,398) | (147,408) |
Net cash (used in) provided by financing activities | (25,628,295) | 1,474,078 |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (9,677,022) | (17,416,750) |
Effect of exchange rate changes on cash | (157,062) | 246,604 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 16,512,635 | 22,353,071 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 6,678,551 | 5,182,925 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 3,457,498 | 3,608,933 |
-RESTRICTED CASH AT END OF PERIOD | 3,221,053 | 1,573,992 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 870,082 | 1,199,807 |
Interest paid | $ 641,213 | $ 868,538 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 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. As used herein, the terms “Company” or “Kandi” refer to Kandi Technologies and its operating subsidiaries, as described below. Headquartered in Jinhua City, Zhejiang Province, People’s Republic of China (“China” or “PRC”), the Company is one of China’s leading producers and manufacturers of electric vehicle (“EV”) products (through the Affiliate Company, formerly defined as the JV Company), EV parts, and off-road vehicles for sale in the Chinese and the global markets. The Company conducts its primary business operations through its wholly-owned subsidiaries, Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”), Kandi Vehicles’ wholly and partially-owned subsidiaries, and SC Autosports LLC (“SC Autosports”, d/b/a Kandi America). The Company’s organizational chart as of the date of this report is as follows: In June 2020, Jinhua An Kao Power Technology Co., Ltd. changed its name to Zhejiang Kandi Smart Battery Swap Technology Co., Ltd (“Kandi Smart Battery Swap”). The Company’s original primary business operations consist of designing, developing, manufacturing and commercializing EV products (through Kandi Electric Vehicles (Hainan) Co., Ltd. and the Affiliate Company), EV parts and off-road vehicles. The COVID-19 outbreak has seriously impacted the EV market in 2020. As a result, the Company plans to manufacture and sell a number of ancillary products aimed at the dynamic power train system of intelligent transportation. For example, the dynamic power train system of Electric Scooters and Electric Self-Balancing Vehicles. The Company is pursuing these opportunities by expanding production of intelligent transportation products that exploit its advantages in the Yongkang Scrou Electric Co, Ltd.’s power electric motor and Kandi Smart Battery Swap’s power battery pack. The products aimed at this market combine the Company’s motors and battery packs into a dynamic power train system. As part of its strategic objective of becoming a leading manufacturer of EV products (through the Affiliate Company) and related services, in the future, the Company will increase its focus on pure EV-related products and intelligent transportation dynamic power train system, and is actively pursuing expansion in the domestic and foreign markets. |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2020 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had working capital of $75,587,762 as of June 30, 2020, an increase of $11,889,065 from the working capital of $63,698,697 as of December 31, 2019. As of June 30, 2020 and December 31, 2019, the Company’s cash and cash equivalents were $3,457,498 and $5,490,557, respectively. The Company’s restricted cash was $3,221,053 and $11,022,078, respectively. After two years of negotiations, on March 10, 2020, a real estate repurchase agreement (the “Repurchase Agreement”) was entered into by and between Kandi Vehicles and Jinhua Economic and Technological Development Zone pursuant to which the local government shall purchase the land use right over the land of 66 acres (400 mu, 265,029 square meters) that is owned by Kandi Vehicles for RMB 525 million ($74 million). Payments to Kandi Vehicles shall be made in three installments as the Company disclosed in a Current Report on Form 8-K filed with the SEC on March 9, 2020. In addition, if Kandi Vehicles achieves certain milestones that contribute to local economic development, the Company will be eligible for tax rebates totaling up to RMB 500 million ($71 million) over the next eight years. On May 22, 2020, the Company received the first payment of RMB 244 million (approximately $35 million) under the Repurchase Agreement. On July 9, 2020, the Company received the second payment of RMB 119 million (approximately $17 million) under the Repurchase Agreement. The final payment of RMB 162 million ($22.9 million) will be received when the Company vacates the land, factory buildings, and other real estate and moved to the new facility. Kandi Vehicles intends to use a portion of the proceeds from the land repurchase (approximately RMB 130 million, or $18.4 million) to fund the land use acquisition and factory construction in the New Energy Automotive Zone, and use the rest portion to fund growth initiatives and for general corporate purposes. Although the Company expects that most of its outstanding trade receivables from customers will be collected in the next twelve months, there are uncertainties with respect to the timing in collecting these receivables, especially the receivables due from the Affiliate Company, because most of them are indirectly impacted by the progress of the receipt of government subsidies. The Company’s primary need for liquidity stems from its need to fund working capital requirements of the Company’s businesses, its capital expenditures and its general operations, including debt repayment. The Company has historically financed its operations through short-term commercial bank loans from Chinese banks, as well as its ongoing operating activities by using funds from operations, external credit or financing arrangements. Although the Company has paid off all the short-term bank loans as of June 30, 2020, it still retains the credit line, which can be used at any time when the Company has special needs. In addition, the Company received the remaining RMB186 million (approximately $26.3 million) equity transfer payment from Geely in July, 2020. The management believes that the Company currently has sufficient working capital to support its ongoing operations for the next twelve months. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 3 - BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In the management’s opinion, the interim financial statements reflect all normal adjustments that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of the Company’s business, financial position, operating results, cash flows, risk factors and other matters, please refer to its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “2019 Form 10-K”). Beginning in 2020, a strain of new coronavirus (“COVID-19”) has spread globally and at this point, the extent to which the COVID-19 may impact operations of the Company is uncertain. The extent of the impact of the COVID-19 on the Company's business and operations will depend on several factors, such as the duration, severity, and geographic spread of the pandemic, development of the testing and treatment and stimulus measures of the government. The Company is monitoring and assessing the evolving situation closely and evaluating its potential exposure. The operating results for the six months ended June 30, 2020 may not be indicative of the future operating results for the fiscal year ending December 31, 2020 or other future periods, particularly in light of the uncertain impact COVID-19 could have on the Company's business. |
Principles of Consolidation
Principles of Consolidation | 6 Months Ended |
Jun. 30, 2020 | |
Principles Of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 4 - PRINCIPLES OF CONSOLIDATION The Company’s consolidated financial statements reflect the accounts of the Company and its ownership interests in the following subsidiaries: (1) Continental Development Limited (“Continental”), a wholly-owned subsidiary of the Company, incorporated under the laws of Hong Kong; (2) Kandi Vehicles, a wholly-owned subsidiary of Continental, incorporated under the laws of the PRC; (3) Kandi New Energy Vehicle Co. Ltd. (“Kandi New Energy”), a 50%-owned subsidiary of Kandi Vehicles (Mr. Hu Xiaoming owns the other 50%), incorporated under the laws of the PRC. Pursuant to agreements executed in January 2011, Mr. Hu Xiaoming contracted with Kandi Vehicles for the operation and management of Kandi New Energy and put his shares of Kandi New Energy into escrow. As a result, Kandi Vehicles is entitled to 100% of the economic benefits, voting rights and residual interests of Kandi New Energy; (4) Yongkang Scrou Electric Co, Ltd. (“Yongkang Scrou”), a wholly-owned subsidiary of Kandi Vehicles, incorporated under the laws of the PRC; (5) Kandi Electric Vehicles (Hainan) Co., Ltd. (“Kandi Hainan”), a subsidiary, 10% owned by Kandi New Energy and 90% owned by Kandi Vehicles, incorporated under the laws of the PRC; and (6) Zhejiang Kandi Smart Battery Swap Technology Co., Ltd (“Kandi Smart Battery Swap”), a wholly-owned subsidiary of Kandi Vehicles, incorporated under the laws of the PRC. (7) SC Autosports, a wholly-owned subsidiary of the Company formed under the laws of the State of Texas. Equity Method Investees The Company’s consolidated net income also includes the Company’s proportionate share of the net income or loss of its equity method investees as follows: The Affiliate Company, a 22% owned subsidiary of Kandi Vehicles All intra-entity profits and losses with regard to the Company’s equity method investees have been eliminated. |
Use of Estimates
Use of Estimates | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Use Of Estimates [Abstract] | |
USE OF ESTIMATES | NOTE 5 - USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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 Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 6 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies are detailed in “Note 6 - Summary of Significant Accounting Policies” of the Company 2019 Form 10-K, excepting the following. (v) Reclassification Certain reclassifications have been made to the condensed consolidated statements of cash flows for six months ended June 30, 2019 to conform to the presentation of consolidated financial statement for six months ended June 30, 2020. The Company reclassified the following 1) grouping due from employees into other receivables and other assets; 2) grouping customer deposits and deferred income into other payables and accrued liabilities. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS In February 2018, the FASB released ASU 2018-2, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This standard update addresses a specific consequence of the Tax Cuts and Jobs Act (the “Tax Act”) and allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Act. Consequently, the update eliminates the stranded tax effects that were created as a result of the historical U.S. federal corporate income tax rate to the newly enacted U.S. federal corporate income tax rate. The Company is required to adopt this standard in the first quarter of fiscal year 2020, with early adoption permitted. The amendments in this update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted this ASU in the first quarter of 2020 and the new standard did not have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds, and modifies certain disclosure requirements for fair value measurements under ASC 820. This ASU is to be applied on a prospective basis for certain modified or new disclosure requirements, and all other amendments in the standard are to be applied on a retrospective basis. The new standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted this ASU in the first quarter of 2020 and the new standard did not have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities, Investments—Equity Method and Joint Ventures, and Derivatives and Hedging, which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. This guidance will be effective in the first quarter of 2021 on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of the new guidance and do not expect the adoption of this guidance will have a material impact on the consolidated financial statements. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the three-month period ended June 30, 2020, the Company’s major customers, each of whom accounted for more than 10% of the Company’s consolidated revenue, were as follows: Sales Trade Receivable Three Months Three Months December 31, Customer A 57 % 36 % 66 % 55 % Customer B 15 % 27 % 6 % 5 % For the six-month period ended June 30, 2020, the Company’s major customers, each of whom accounted for more than 10% of the Company’s consolidated revenue, were as follows: Sales Trade Receivable Major Customers Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 June 30, December 31, 2019 Customer A 51 % 47 % 66 % 55 % Customer B 15 % 18 % 6 % 5 % (b) Suppliers For the three-month period ended June 30, 2020, 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 Major Suppliers Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 June 30, 2020 December 31, 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 59 % 69 % 13 % 8 % Supplier C 24 % 13 % - - For the six-month period ended June 30, 2020, 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 Major Suppliers Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 June 30, 2020 December 31, 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 59 % 48 % 13 % 8 % Supplier C 25 % 15 % - - |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 9 - EARNINGS (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 and warrants (using treasury stock method). Due to the average market price of the common stock during the period below the exercise price of the options and due to the loss from operations, approximately 3,900,000 options were excluded from the calculation of diluted net loss per share, for the three-month and six-month period ended June 30, 2020. The following is the calculation of earnings per share for the three-month and six-month periods ended June 30, 2020 and 2019: For three months ended June 30, 2020 2019 Net income (loss) $ 4,055,046 $ (7,318,158 ) Weighted average shares used in basic computation 53,369,602 52,806,331 Dilutive shares - - Weighted average shares used in diluted computation 53,369,602 52,806,331 Income (loss) per share: Basic $ 0.08 $ (0.14 ) Diluted $ 0.08 $ (0.14 ) For six months ended June 30, 2020 2019 Net income (loss) $ 2,480,400 $ (11,727,630 ) Weighted average shares used in basic computation 52,862,043 52,189,237 Dilutive shares - - Weighted average shares used in diluted computation 52,862,043 52,189,237 Income (loss) per share: Basic $ 0.05 $ (0.22 ) Diluted $ 0.05 $ (0.22 ) |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 10 - ACCOUNTS RECEIVABLE Accounts receivable are summarized as follows: June 30, December 31, 2020 2019 Accounts receivable $ 60,271,467 $ 61,436,514 Less: allowance for doubtful accounts (251,012 ) (254,665 ) Accounts receivable, net $ 60,020,455 $ 61,181,849 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: June 30, December 31, 2020 2019 Raw material $ 10,022,590 $ 12,127,957 Work-in-progress 11,369,771 4,545,736 Finished goods 6,852,906 11,062,873 Inventories $ 28,245,267 $ 27,736,566 |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | NOTE 12 - NOTES RECEIVABLE As of June 30, 2020, there was $0 notes receivable from unrelated parties. As of December 31, 2019, there was $42,487,225 notes receivable from unrelated parties, which was commercial acceptance notes from payments for equity transfer of the Affiliate Company , among which $15,562,661 had been collected during first half of 2020 and the rest were considered as other receivables (refer to Note 22-summarized information of equity method investment in the Affiliate Company). |
Other Receivables
Other Receivables | 6 Months Ended |
Jun. 30, 2020 | |
Other Receivables Disclosure [Abstract] | |
OTHER RECEIVABLES | NOTE 13 - OTHER RECEIVABLES Other receivables consist of the following: June 30, December 31, 2020 2019 Amount due from unrelated party for equity transfer of the Affiliate company $ 26,315,045 $ - Loan to third party 13,726,757 3,577,145 Others 2,619,540 1,442,826 Total other receivables $ 42,661,342 $ 5,019,971 As of June 30, 2020, the Company’s other receivable includes $26,315,045 amount due from unrelated party for equity transfer of the Affiliate Company (refer to Note 22-summarized information of equity method investment in the Affiliate Company). As of June 30, 2020 and December 31, 2019, the Company’s other receivable includes $13,726,757 and $3,577,145 short-term loan lent to an unrelated party with a 6% annual interest rate to maximize the use of idled cash. This loan can be redeemed at any time. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 14 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plants and equipment as of June 30, 2020 and December 31, 2019, consisted of the following: June 30, December 31, 2020 2019 At cost: Buildings $ 30,017,395 $ 30,447,480 Machinery and equipment 62,128,182 62,973,794 Office equipment 1,041,911 1,048,651 Motor vehicles and other transport equipment 412,260 413,046 Molds and others 25,467,098 25,836,241 119,066,846 120,719,212 Less : Accumulated depreciation Buildings $ (6,396,987 ) $ (5,975,030 ) Machinery and equipment (16,735,598 ) (14,127,506 ) Office equipment (611,384 ) (537,829 ) Motor vehicles and other transport equipment (369,453 ) (360,098 ) Molds and others (25,045,460 ) (25,310,891 ) (49,158,882 ) (46,311,354 ) Property, plant and equipment, net $ 69,907,964 $ 74,407,858 As of June 30, 2020 and December 31, 2019, the net book value of property, plant and equipment pledged as collateral for the Company’s bank loans totaled $0 and $6,484,497, respectively. Also see Note 17. Depreciation expenses for the three months ended June 30, 2020 and 2019 were $1,750,013 and $1,876,569, respectively. Depreciation expenses for the six months ended June 30, 2020 and 2019 were $3,530,165 and $3,892,028, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 15 - INTANGIBLE ASSETS Intangible assets include acquired other intangibles of trade name, customer relations and patent recorded at estimated fair values in accordance with purchase accounting guidelines for acquisitions. The following table provides the gross carrying value and accumulated amortization for each major class of our intangible assets, other than goodwill: Remaining June 30, December 31, useful life 2020 2019 Gross carrying amount: Trade name 1.5 years $ 492,235 $ 492,235 Customer relations 1.5 years 304,086 304,086 Patent 5-6.67 years 4,499,024 4,564,506.00 5,295,345 5,360,827 Less : Accumulated amortization Trade name $ (414,426 ) $ (389,053 ) Customer relations (256,017 ) (240,342 ) Patent (1,326,518 ) (1,076,660 ) (1,996,961 ) (1,706,055 ) Intangible assets, net $ 3,298,384 $ 3,654,772 The aggregate amortization expenses for those intangible assets were $ 152,846 and $157,967 for the three months ended June 30, 2020 and 2019, respectively. The aggregate amortization expenses for those intangible assets were $307,702 and $317,470 for the six months ended June 30, 2020 and 2019, respectively. Amortization expenses for the next five years and thereafter are as follows: 2020 (Six months) $ 307,702 2021 615,403 2022 536,044 2023 533,308 2024 533,308 Thereafter 772,619 Total $ 3,298,384 |
Land Use Rights, Net
Land Use Rights, Net | 6 Months Ended |
Jun. 30, 2020 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS, NET | NOTE 16 - LAND USE RIGHTS, NET The Company’s land use rights consist of the following: June 30, December 31, 2020 2019 Cost of land use rights $ 11,531,218 $ 14,731,847 Less: Accumulated amortization (2,766,022 ) (3,459,032 ) Land use rights, net $ 8,765,196 $ 11,272,815 During June 2020, $2.2 million of land use rights was returned to the government as the Company began to perform its obligations under the Repurchase Agreement. As of June 30, 2020 and December 31, 2019, the net book value of land use rights pledged as collateral for the Company’s bank loans was $0 and $4,937,138, respectively. Also see Note 17. The amortization expenses for the three months ended June 30, 2020 and 2019, were $79,751 and $82,837, respectively. The amortization expenses for the six months ended June 30, 2020 and 2019, were $160,712 and $166,599, respectively. Amortization expenses for the next five years and thereafter is as follows: 2020 (Six months) $ 160,712 2021 321,424 2022 321,424 2023 321,424 2024 321,424 Thereafter 7,318,788 Total $ 8,765,196 |
Short-Term and Long-Term Loans
Short-Term and Long-Term Loans | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM LOANS | NOTE 17 - SHORT-TERM AND LONG-TERM LOANS Short-term loans are summarized as follows: June 30, December 31, 2020 2019 Bank A Interest rate 5.66% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle, also guaranteed by company’s subsidiaries. Also see Note 14 and Note 16. - 7,004,650 Interest rate 5.66% per annum, paid off on May 22, 2020,secured by the assets of Kandi Vehicle, also guaranteed by company’s subsidiaries. Also see Note 14 and Note 16. - 4,621,921 Bank B Interest rate 5.22% per annum, paid off on April 22, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 5,741,517 Interest rate 5.22% per annum, paid off on April 24, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 4,306,138 Interest rate 5.22% per annum, paid off on April 26, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 4,306,138 $ - $ 25,980,364 Long-term loans are summarized as follows: June 30, December 31, 2020 2019 Long term bank loans: $ Bank C Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company’s subsidiaries. 27,446,875 28,133,433 Other long term loans: Loan under Paycheck Protection Program① 244,116 - Economic Injury Disaster Loan ② 150,000 - Long term loans - current and noncurrent portion $ 27,840,991 28,133,433 ① The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs;” or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses. As of June 30, 2020, we had received $244,116 under the PPP. ② In addition, Economic Injury Disaster Loans (“EIDL”) through the SBA was also made available under the CARES Act passed by Congress in response to the COVID-19 pandemic. During June 2020, $150,000 of EIDL loan was approved with the term of a 3.75% rate over 30 years, and a 12-month deferment on the first repayment of principal with interest accrued during deferment. The interest expenses of short-term and long-term loans for the three months ended June 30, 2020 and 2019 were $748,269 and $429,355, respectively. The interest expenses of short-term and long-term loans for the six months ended June 30, 2020 and 2019 were $1,590,317 and $868,538, respectively. As of June 30, 2020, the aggregate amount of short-term and long-term loans guaranteed by various third parties was $0. |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 18 - TAXES (a) Corporation Income Tax Pursuant to the tax laws and regulations of the PRC, the Company’s applicable corporate income tax (“CIT”) rate is 25%. However, Kandi Vehicles and Kandi Smart Battery Swap qualify as High and New Technology Enterprise (“HNTE”) companies in the PRC, and are entitled to pay a reduced income tax rate of 15% for the years presented. A HNTE Certificate is valid for three years. An entity may re-apply for an HNTE certificate when the prior certificate expires. Historically, Kandi Vehicles has successfully re-applied for such certificates when the its prior certificates expired. Kandi Smart Battery Swap has been qualified as HNTE since 2018. Therefore no records for renewal are available. The applicable CIT rate of each of the Company’s three other subsidiaries, Kandi New Energy, Yongkang Scrou and Kandi Hainan, the Affiliate Company and its subsidiaries is 25%. The Company’s tax provision or benefit from income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the management makes a cumulative adjustment. For 2019, the management estimates that its effective tax rate will be favorably affected by non-taxable income such as the share of income of the Affiliate Company and the gain from the change of fair value of contingent liabilities and certain research and development super-deduction and adversely affected by non-deductible expenses such as part of entertainment expenses. The Company records valuation allowances against the deferred tax assets associated with losses for which it may not realize a related tax benefit. After combining research and development tax credits of 25% on certain qualified research and development expenses, the Company’s effective tax rate for the six months ended June 30, 2020 and 2019 were a tax expense of 62.43% on a reported income before taxes of approximately $6.6 million, a tax benefit of 6.02% on a reported loss before taxes of approximately $12.5 million, respectively. The quarterly tax provision, and the quarterly estimate of the Company’s annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting the Company’s pre-tax and taxable income and loss, acquisitions (including integrations) and investments, changes in its stock price, changes in its deferred tax assets and liabilities and their valuation, return to provision true-up, foreign currency gains (losses), changes in regulations and interpretations related to tax, accounting, and other areas. Additionally, the Company’s effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. The income tax provision for the six months ended June 30, 2020 and 2019 was tax expense of $4,122,502 and tax benefit of $751,193, respectively. Under ASC 740 guidance relating to uncertain tax positions, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements, 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 June 30, 2020, the Company did not have any liability for unrecognized tax benefits. The Company files income tax returns with the U.S. Internal Revenue Services (“IRS”) and those states where 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 has 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 June 30, 2020, the Company was not aware of any pending income tax examinations by U.S. or PRC tax authorities. The Company records interest and penalties on uncertain tax provisions as income tax expense. As of June 30, 2020, the Company has no accrued interest or penalties related to uncertain tax positions. The aggregate NOLs in 2019 was $9.6 million deriving from entities in the PRC and Hong Kong. The aggregate NOLs in 2018 was $28.1 million deriving from entities in the PRC and Hong Kong. The NOLs will start to expire from 2021 if they are not used. The cumulative net operating loss in the PRC can be carried forward for five years, to offset future net profits for income tax purposes. The Company has $0 cumulative net operating loss in U.S. to carry forward as of June 30, 2020. The cumulative net operating loss in Hong Kong can be carried forward without an expiration date. (b) Tax Holiday Effect For the six months ended June 30, 2020 and 2019, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the six months ended June 30, 2020 and 2019. The combined effects of income tax expense exemptions and reductions available to the Company for the six months ended June 30, 2020 and 2019 are as follows: Six Months Ended June 30, 2020 2019 Tax benefit (holiday) credit $ 164,163 $ 169,810 Basic net income per share effect $ 0.000 $ 0.000 (c) CARES Act On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company does not anticipate significant income tax impact on its financial and continue to examine the impacts this CARES Act may have on its business. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 19 - LEASES The Company has renewed its corporate office leases for SC Autosports, with a term of 15 months from January 31, 2020 to April 30, 2021. The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. The Company recorded operating lease assets and operating lease liabilities at January 31, 2020, with a remaining lease term of 15 months and discount rate of 4.25%. As of June 30, 2020, the Company’s right - of - use asset (grouped in other long term assets on the balance sheet) was $115,087 and lease liability (grouped in other current liability on the balance sheet) was $117,695. For the three months ended June 30, 2020, the Company’s operating lease cost was $35,000. For the six months ended June 30, 2020, the Company’s operating lease cost was $68,000. Supplemental information related to operating leases was as follows: Six months ended Cash payments for operating leases $ 68,000 Maturities of lease liabilities as of June 30, 2020, were as follow: Maturity of Lease Liabilities: Lease payable 2020 $ 70,117 2021 47,578 Total $ 117,695 |
Contingent Consideration Liabil
Contingent Consideration Liability | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
CONTINGENT CONSIDERATION LIABILITY | NOTE 20 - CONTINGENT CONSIDERATION LIABILITY On January 3, 2018, the Company completed the acquisition of 100% of the equity of Jinhua An Kao, currently known as Kandi Smart Battery Swap Co., Ltd. (“Kandi Smart Battery Swap”). The Company paid approximately RMB 25.93 million (approximately $4 million) at the closing of the transaction using cash on hand and issued a total of 2,959,837 shares of restrictive stock or 6.2% of the Company’s total outstanding shares of the common stock immediately prior to the closing of the acquisition valued at approximately $20.7 million to the former shareholders of Kandi Smart Battery Swap and his designees (the “KSBS Shareholders”), and may be required to pay future consideration of up to an additional 2,959,837 shares of common stock, which are being held in escrow and to be released contingent upon the achievement of certain net income-based milestones in the next three years. Any escrowed shares that are not released from escrow to the KSBS Shareholders as a result of the failure to achieve the milestones will be forfeited and returned to the Company for cancellation. While the escrowed shares are held in escrow, the Company will retain all voting rights with respect to such shares. For the year ended December 31, 2018, Kandi Smart Battery Swap achieved its first year net profit target. Accordingly, the KSBS Shareholders received 739,959 shares of Kandi’s restrictive common stock or 12.5% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. For the year ended December 31, 2019, Kandi Smart Battery Swap achieved its second year net profit target. Accordingly, the KSBS Shareholders received 986,810 shares of Kandi’s restrictive common stock or 16.67% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019. As the outbreak of COVID-19 in 2020 affected Kandi Smart Battery Swap’s operation and business, on July 7, 2020, the Company and the KSBS Shareholders made following supplements to Condition III of the original Supplementary Agreement: The transferor has the right to receive a total of 20.83% of total equity consideration (i.e., 5,919,674 total shares), provided that Kandi Smart Battery Swap realizes a net profit of RMB50,000,000 or more for the period from January 1, 2020 to June 30, 2021 (as opposed to be the originally stated “December 31, 2020”), and such profit is audited or reviewed and Kandi Smart Battery Swap gets annual or quarterly financial report issued subject to US GAAP. On July 1, 2018, the Company completed the acquisition of 100% of the equity of SC Autosports (d/b/a Kandi America). The Company issued a total of 171,969 shares of restrictive stock or approximately 0.3% of the Company’s total outstanding shares of the common stock immediately prior to the closing of the acquisition valued at approximately $0.8 million at the closing of transaction to the former members of SC Autosports within 30 days from the signing date of the Transfer Agreement, and may be required to pay future consideration of up to an additional 1,547,721 shares of common stock of the Company, which are being held in escrow and to be released contingent upon the achievement of certain pre-tax profit based milestones in the next three years. Any escrowed shares that are not released from escrow to the SC Autosports former members due to the failure to achieve the milestones will be forfeited and returned to the Company for cancellation. While the escrowed shares are held in escrow, the Company will retain all voting rights with respect to the shares. For the year ended December 31, 2018, SC Autosports achieved its first year pre-tax profit target. Accordingly, the former members of SC Autosports received 343,938 shares of Kandi’s restrictive common stock or 20% of the total equity consideration in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. Accordingly, the former members of SC Autosports received 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019. The Company recorded contingent consideration liability of the estimated fair value of the contingent consideration the Company currently expects to pay to the KSBS Shareholders and SC Autosports’ former members upon the achievement of certain milestones. The fair value of the contingent consideration liability associated with remaining shares of restrictive common stock was estimated by using the Monte Carlo simulation method, which took into account all possible scenarios. This fair value measurement is classified as Level 3 within the fair value hierarchy prescribed by ASC Topic 820, Fair Value Measurement and Disclosures. In accordance with ASC Topic 805, Business Combinations, the Company will re-measure this liability each reporting period and record changes in the fair value through a separate line item within the Company’s consolidated statements of income. As of June 30, 2020 and December 31, 2019, the Company’s contingent consideration liability was $2,334,000 and $5,197,000, respectively. The decrease in contingent consideration liability was mainly due to the decrease of the forecast of SC Autosports’ third year net income as of June 30, 2020. |
Stock Award
Stock Award | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK AWARD | NOTE 21 - STOCK AWARD In connection with the appointment of Mr. Henry Yu as a member of the Board of Directors (the “Board”), the Board authorized the Company to compensate Mr. Henry Yu with 5,000 shares of Company’s restricted common stock every six months as compensation, beginning in July 2011. As compensation for Mr. Jerry Lewin’s services as a member of the Board, the Board authorized the Company to compensate Mr. Jerry Lewin with 5,000 shares of Company’s restricted common stock every six months, beginning in August 2011. As compensation for Ms. Kewa Luo’s services as the Company’s investor relation officer, the Board authorized the Company to compensate Ms. Kewa Luo with 5,000 shares of the Company’s common stock every six months, beginning in September 2013. In November 2016, the Company entered into a three-year employment agreement with Mr. Mei Bing, to hire him as the Company’s Chief Financial Officer. Under the agreement, Mr. Mei Bing was entitled to receive an aggregate 10,000 shares of common stock each year, vested in four equal quarterly installments of 2,500 shares. On January 29, 2019, Mr. Mei resigned from his position as the Company’s CFO. On January 29, 2019, the Board appointed Ms. Zhu Xiaoying as interim Chief Financial Officer. Ms. Zhu was entitled to receive 10,000 shares of the common stock annually under the Company’s 2008 Omnibus Long-Term Incentive Plan (the “2008 Plan”) as a year-end equity bonus. Effective May 15, 2020, Ms. Zhu resigned from her position as interim Chief Financial Officer of the Company. On May 15, 2020, the Board appointed Mr. Jehn Ming Lim as the Chief Financial Officer. Mr. Lim was entitled to receive 6,000 shares of the common stock annually, which shall be issuable evenly on each six-month anniversary hereof. The fair value of stock awards based on service is determined based on the closing price of the common stock on the date the shares are approved by the Board for grant. The compensation costs for awards of common stock are recognized over the requisite service period of three or six months. On December 30, 2013, the Board approved a proposal (as submitted by the Compensation Committee) of an award (the “Board’s Pre-Approved Award Grant Sub-Plan under the 2008 Plan”) for certain executives and other key employees. The fair value of each award granted under the 2008 Plan is determined based on the closing price of the Company’s stock on the date of grant of such award. On September 26, 2016, the Board approved to terminate the previous Board’s Pre-Approved Award Grant Sub-Plan under the 2008 Plan and adopted a new plan to grant the total number of shares of common stock of the stock award for selected executives and key employees 250,000 shares of common stock for each fiscal year. On April 18, 2018, the Company granted 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. On April 30, 2019, the Company granted 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. On May 9, 2020, the Company granted 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. For the three months ended June 30, 2020 and 2019, the Company recognized $824,621 and $1,282,733 of employee stock award expenses for stock compensation and annual incentive award under the 2008 Plan paid to Board members, management and consultants under General and Administrative Expenses, respectively. For the six months ended June 30, 2020 and 2019, the Company recognized $847,546 and $1,314,408 of employee stock award expenses for stock compensation and annual incentive award under the 2008 Plan paid to Board members, management and consultants under General and Administrative Expenses, respectively. |
Summarized Information of Equit
Summarized Information of Equity Method Investment in the Affiliate Company | 6 Months Ended |
Jun. 30, 2020 | |
Summarized Information Of Equity Method Investment [Abstract] | |
SUMMARIZED INFORMATION OF EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY | NOTE 22 - SUMMARIZED INFORMATION OF EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY The Company’s condensed consolidated net income (loss) includes the Company’s proportionate share of the net income or loss of the Company’s equity method investees. When the Company records its proportionate share of net income (loss) in such investees, it increases equity income (loss) – net in the Company’s consolidated statements of income and the Company’s carrying value in that investment. Conversely, when the Company records its proportionate share of a net loss in such investees, it decreases equity income (loss) – net in the Company’s consolidated statements of income (loss) and the Company’s carrying value in that investment. All intra-entity profits and losses with the Company’s equity method investees have been eliminated. On March 21, 2019, Kandi Vehicles signed an Equity Transfer Agreement with Geely Technologies Group Co., Ltd. (“Geely”) to transfer certain equity interests in the Affiliate Company to Geely. Pursuant to the Transfer Agreement, the Affiliate Company converted a loan of RMB 314 million (approximately $44.4 million) from Geely last year to equity in order to increase its cash flow. As a result, the registered capital of the Affiliate Company became RMB 2.40 billion (approximately $339.5 million), of which Kandi Vehicles owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company. Kandi Vehicles further agree to sell 21.47% of its equity interests in the Affiliate Company to Geely for a total amount of RMB 516 million (approximately $73.0 million). Kandi Vehicles shall own 22% of the equity interests of the Affiliate Company as a result of the transfer. As of September 29, 2019, the Company had received payments in cash totaling RMB 220 million (approximately $31.1 million) and certain commercial acceptance notes of RMB 296 million (approximately $41.9 million) from Geely, of which RMB 140 million (approximately $19.8 million) shall mature on January 20, 2020 and the remaining RMB 156 million (approximately $22.1 million) shall mature on March 29, 2020. As of September 30, 2019, the equity transfer had been completed. Therefore, in the third quarter of 2019, the Company recognized the gain from equity sale of $20,438,986. As of June 30, 2020, RMB 110 million (approximately $15.6 million) of the commercial acceptance notes has been collected. And the remaining RMB186 million (approximately $26.3 million) has been collected on July 27, 2020. The Company accounted for its investments in the Affiliate Company under the equity method of accounting. The Company recorded 22% of the Affiliate Company’s loss for the first half of 2020. The consolidated results of operations and financial position of the Affiliate Company are summarized below: Three Months ended June 30, 2020 2019 Condensed income statement information: Net sales $ 16,456,551 $ 2,828,732 Gross loss (2,304,516 ) (2,606,809 ) Gross margin -14.0 % -92.2 % Net loss (13,535,506 ) (10,359,258 ) Six Months ended June 30, 2020 2019 Condensed income statement information: Net sales $ 23,083,813 $ 4,085,605 Gross loss (2,642,287 ) (2,628,351 ) Gross margin -11.4 % -64.3 % Net loss (18,572,368 ) (30,550,572 ) June 30, December 31, 2020 2019 Condensed balance sheet information: Current assets $ 561,723,436 $ 640,688,401 Noncurrent assets 52,287,099 64,589,516 Total assets $ 614,010,535 $ 705,277,917 Current liabilities 420,915,948 490,625,640 Equity 193,094,587 214,652,277 Total liabilities and equity $ 614,010,535 $ 705,277,917 Note: The following table illustrates the captions used in the Company’s Income Statements for its equity based investment in the Affiliate Company. The Company’s equity method investments in the Affiliate Company for the six months ended June 30, 2020 and 2019 are as follows: Six Months ended June 30, 2020 2019 Investment in the Affiliate Company, beginning of the period, $ 47,228,614 $ 128,929,893 Gain from equity dilution - 4,341,259.00 Company’s share in net (loss) income of Affiliate based on 22% ownership for six months ended June 30, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for three months ended June 30, 2019 (4,086,848 ) (14,591,456 ) Intercompany transaction elimination - (14,157 ) Prior year unrealized profit realized 5,549 156,254 Subtotal (4,081,299 ) (14,449,359 ) Exchange difference (656,867 ) 323,099 Investment in Affiliate Company, end of the period $ 42,490,448 $ 119,144,892 The gain from equity dilution for three months ended March 31, 2019 resulted from the Affiliate Company issuing shares to the major shareholder of the Affiliate Company, Greely, in exchange for extinguishment of a loan from Greely, resulting in dilution of equity ownership of the Company from 50% to 43.47%. This dilutive transaction was treated as if the Company sold a proportional share of its investment in the Affiliate Company. Sales to the Company’s customers, the Affiliate Company and its subsidiaries, for the three months ended June 30, 2020, were $ 956 or 0% of the Company’s total revenue, a decrease of 100% from $4,089,534 of the same quarter last year. Sales to the Company’s customers, the Affiliate Company and its subsidiaries, for the six months ended June 30, 2020, were $ 956 or 0% of the Company’s total revenue, a decrease of 100% from $5,823,031 of the same quarter last year. Sales to the Affiliate Company and its subsidiaries were primarily of battery packs, body parts, EV drive motors, EV controllers, air conditioning units and other auto parts. As of June 30, 2020 and December 31, 2019, the net amount due from the Affiliate Company and its subsidiaries, was $20,107,347 and $31,330,763, respectively. As of June 30, 2020 and December 31, 2019 the net amount due from the Affiliate Company and its subsidiaries included $2,053,131 and $2,056,564 interest receivable related to the loan lent to the Affiliate Company, but didn’t include any outstanding loan principal. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 23 - COMMITMENTS AND CONTINGENCIES Guarantees and pledged collateral for bank loans to other parties (1) Guarantees for bank loans On March 15, 2013, the Company entered into a guarantee contract to serve as the guarantor of Nanlong Group Co., Ltd. (“NGCL”) for NGCL’s $ 2,829,575 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua Branch, with a related loan period from March 15, 2013 to March 15, 2016. NGCL is not related to the Company. Under this guarantee contract, the Company agreed to assume joint liability as the loan guarantor. In April 2017, Shanghai Pudong Development Bank filed a lawsuit against NGCL, the Company and ten other parties in Zhejiang Province People’s Court in Yongkang City, alleging NGCL defaulted on a bank loan borrowed from Shanghai Pudong Development Bank for a principal amount of approximately $2.9 million and demanded that the guarantor bear the liability for compensation. On May 27, 2017, a judicial mediation took place in Yongkang City and parties reached a settlement in mediation, in which the plaintiff agreed NGCL would repay the loan principal and interest in installments. If there were an event of default that NGCL could not repay the loan, the Company may be obligated to bear the liability of defaulted amount. The Company expects the likelihood of incurring losses in connection with this matter to be remote. On September 29, 2015, the Company entered into a guarantee contract to serve as the guarantor of Zhejiang Shuguang Industrial Co., Ltd. (“ZSICL”) for a bank loan in the amount of $4,102,883 (RMB 29 million) from Ping An Bank, with a related loan period of September 29, 2015, to September 28, 2016. ZSICL is not related to the Company. Under this guarantee contract, the Company agreed to perform all the obligations of ZSICL under the loan contract if ZSICL failed to perform its obligations as set forth therein. In August 2016, Ping An Bank Yiwu Branch (“Ping An Bank”) filed a lawsuit against ZSICL, the Company, and three other parties in Zhejiang Province People’s Court in Yiwu City, alleging ZSICL defaulted on a bank loan it had borrowed from Pin An Bank for a principal amount of RMB 29 million or approximately $4.2 million (the “Principal”), for which the Company was a guarantor along with other three parties. On December 25, 2016, the court ruled that ZSICL should repay Ping An Bank the principal and associated interest remaining on the bank loan within 10 days once the adjudication was effective. Additionally, the court found that the Company and the three other parties, acting as guarantors, have joint liability for this bank loan. On July 31, 2017, the Company and Ping An Bank reached an agreement to settle. According to the agreement, the Company was to pay Ping An Bank RMB 20 million or approximately $3.0 million in four installments before October 31, 2017 to release the Company from its guarantor liability for this default. As of October 31, 2017, the Company has paid all four installments totaling RMB 20 million or approximately $3.0 million to Ping An Bank and thus the Company has been released from its guarantor liability for this default. According to the Company’s agreement with ZSICL, ZSICL agreed to reimburse all the Company’s losses due to ZSICL’s default on the loan principal and interests, of which RMB 13.9 million has been reimbursed to the Company as of the date of this report and the remainder is expected to be reimbursed in installments. The Company expects the likelihood of incurring losses in connection with this matter to be low. (2) Pledged collateral for bank loans for which the parties other than the Company are the borrowers. As of June 30, 2020 and December 31, 2019, none of the Company’s land use rights or plants and equipment were pledged as collateral securing bank loans for which the parties other than the Company are the borrowers. Litigation Beginning in March 2017, putative shareholder class actions were filed against Kandi Technologies Group, Inc. (“Kandi”) and certain of its current and former directors and officers in the United States District Court for the Central District of California and the United States District Court for the Southern District of New York. The complaints generally alleged violations of the federal securities laws based Kandi’s disclosure in March 2017 that its financial statements for the years 2014, 2015 and the first three quarters of 2016 would need to be restated, and seek damages on behalf of putative classes of shareholders who purchased or acquired Kandi’s securities prior to March 13, 2017. Kandi moved to dismiss the remaining cases, all of which were pending in the New York federal court, and that motion was granted by an order entered on September 30, 2019, and the time to appeal has run. In June 2020, a similar but separate putative securities class action was filed against Kandi and certain of its current and former directors and officers in California federal court and remains pending. Beginning in May 2017, purported shareholder derivative actions based on the same underlying events described above were filed against certain current and former directors of Kandi in the United States District Court for the Southern District of New York. The New York federal court confirmed the voluntary dismissal of these actions in April 2019. In October 2017, a shareholder filed a books and records action against the Company in the Delaware Court of Chancery pursuant to 8 Del. C. Section 220 seeking the production of certain documents generally relating to the same underlying items described above as well as attorney’s fees (the “Section 220 Litigation”). On September 28, 2018, the parties, through their respective counsel, agreed to dismiss the Section 220 Litigation with prejudice and with each party bearing its own attorney’s fees, costs, and expenses, thereby concluding the action. In February 2019, this same shareholder commenced a derivative action against certain current and former directors of Kandi in the Delaware Court of Chancery. A motion to dismiss this derivative action was filed in May 2019 and that motion was denied on April 27, 2020. Separately, in connection with allegations of misconduct identified in pre-suit demands made by putative shareholders of Kandi, Kandi formed a Special Litigation Committee (“SLC”) and retained a Delaware law firm as independent counsel to the SLC to aid in the SLC’s investigation of, and to ultimately report on, the allegations of misconduct set forth in the pre-suit demands. In June 2020, the SLC recommended that it be dissolved in light of the ongoing derivative action pending in the Delaware Court of Chancery as referenced in the immediate above paragraph. While the Company believes that the claims in these litigations are without merit and will defend itself vigorously, the Company is unable to estimate the possible loss, if any, associated with these litigations. The ultimate outcome of any litigation is uncertain and the outcome of these matters, whether favorable or unfavorable, could have a negative impact on the Company’s financial condition or results of operations due to defense costs, diversion of management resources and other factors. Defending litigation can be costly, and adverse results in the litigations could result in substantial monetary judgments. No assurance can be made that litigation will not have a material adverse effect on the Company’s future financial position. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 24 - SEGMENT REPORTING The Company has one operating segment. The Company’s revenue and long-lived assets are primarily derived from and located in China and US. The Company does not have manufacturing operations outside of China. The following table sets forth disaggregation of revenue: Three Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 8,571,281 $ 5,050,136 China 10,865,795 19,096,094 Total $ 19,437,076 $ 24,146,230 Major products EV parts $ 12,514,548 $ 18,988,741 EV products (1,913 ) - Off-road vehicles 6,564,415 5,157,489 Electric Scooters and Electric Self-Balancing Scooters 360,026 - Total $ 19,437,076 $ 24,146,230 Timing of revenue recognition Products transferred at a point in time $ 19,437,076 $ 24,146,230 Total $ 19,437,076 $ 24,146,230 The negative amount is due to exchange rate difference. Six Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 10,702,105 $ 10,272,661 China 15,107,395 31,942,029 Total $ 25,809,500 $ 42,214,690 Major products EV parts $ 14,595,883 $ 31,760,181 EV products 253,906 - Off-road vehicles 10,599,685 10,454,509 Electric Scooters and Electric Self-Balancing Scooters 360,026 - Total $ 25,809,500 $ 42,214,690 Timing of revenue recognition Products transferred at a point in time $ 25,809,500 $ 42,214,690 Total $ 25,809,500 $ 42,214,690 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 25 - SUBSEQUENT EVENTS On July 9, 2020, the Company received the second payment of RMB 119 million (approximately $17 million) under the Repurchase Agreement. In order to construct a new facility in the Jinhua New Energy Automotive Zone, on July 7, 2020, Kandi Vehicles entered in to a construction contract. The total contract amount was RMB 138.2 million (approximately $19.6 million). On July 27, 2020, the Company received the remaining RMB186 million (approximately $26.3 million) equity transfer payment from Geely. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Reclassification | (v) Reclassification Certain reclassifications have been made to the condensed consolidated statements of cash flows for six months ended June 30, 2019 to conform to the presentation of consolidated financial statement for six months ended June 30, 2020. The Company reclassified the following 1) grouping due from employees into other receivables and other assets; 2) grouping customer deposits and deferred income into other payables and accrued liabilities. |
Concentrations (Tables)
Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Customers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Sales Trade Receivable Three Months Three Months December 31, Customer A 57 % 36 % 66 % 55 % Customer B 15 % 27 % 6 % 5 % Sales Trade Receivable Major Customers Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 June 30, December 31, 2019 Customer A 51 % 47 % 66 % 55 % Customer B 15 % 18 % 6 % 5 % |
Suppliers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Purchases Accounts Payable Major Suppliers Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 June 30, 2020 December 31, 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 59 % 69 % 13 % 8 % Supplier C 24 % 13 % - - Purchases Accounts Payable Major Suppliers Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 June 30, 2020 December 31, 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 59 % 48 % 13 % 8 % Supplier C 25 % 15 % - - |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings loss per share | For three months ended June 30, 2020 2019 Net income (loss) $ 4,055,046 $ (7,318,158 ) Weighted average shares used in basic computation 53,369,602 52,806,331 Dilutive shares - - Weighted average shares used in diluted computation 53,369,602 52,806,331 Income (loss) per share: Basic $ 0.08 $ (0.14 ) Diluted $ 0.08 $ (0.14 ) For six months ended June 30, 2020 2019 Net income (loss) $ 2,480,400 $ (11,727,630 ) Weighted average shares used in basic computation 52,862,043 52,189,237 Dilutive shares - - Weighted average shares used in diluted computation 52,862,043 52,189,237 Income (loss) per share: Basic $ 0.05 $ (0.22 ) Diluted $ 0.05 $ (0.22 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | June 30, December 31, 2020 2019 Accounts receivable $ 60,271,467 $ 61,436,514 Less: allowance for doubtful accounts (251,012 ) (254,665 ) Accounts receivable, net $ 60,020,455 $ 61,181,849 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, December 31, 2020 2019 Raw material $ 10,022,590 $ 12,127,957 Work-in-progress 11,369,771 4,545,736 Finished goods 6,852,906 11,062,873 Inventories $ 28,245,267 $ 27,736,566 |
Other Receivables (Tables)
Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Receivables Disclosure [Abstract] | |
Schedule of other receivables | June 30, December 31, 2020 2019 Amount due from unrelated party for equity transfer of the Affiliate company $ 26,315,045 $ - Loan to third party 13,726,757 3,577,145 Others 2,619,540 1,442,826 Total other receivables $ 42,661,342 $ 5,019,971 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | June 30, December 31, 2020 2019 At cost: Buildings $ 30,017,395 $ 30,447,480 Machinery and equipment 62,128,182 62,973,794 Office equipment 1,041,911 1,048,651 Motor vehicles and other transport equipment 412,260 413,046 Molds and others 25,467,098 25,836,241 119,066,846 120,719,212 Less : Accumulated depreciation Buildings $ (6,396,987 ) $ (5,975,030 ) Machinery and equipment (16,735,598 ) (14,127,506 ) Office equipment (611,384 ) (537,829 ) Motor vehicles and other transport equipment (369,453 ) (360,098 ) Molds and others (25,045,460 ) (25,310,891 ) (49,158,882 ) (46,311,354 ) Property, plant and equipment, net $ 69,907,964 $ 74,407,858 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill | Remaining June 30, December 31, useful life 2020 2019 Gross carrying amount: Trade name 1.5 years $ 492,235 $ 492,235 Customer relations 1.5 years 304,086 304,086 Patent 5-6.67 years 4,499,024 4,564,506.00 5,295,345 5,360,827 Less : Accumulated amortization Trade name $ (414,426 ) $ (389,053 ) Customer relations (256,017 ) (240,342 ) Patent (1,326,518 ) (1,076,660 ) (1,996,961 ) (1,706,055 ) Intangible assets, net $ 3,298,384 $ 3,654,772 |
Schedule of amortization expenses | 2020 (Six months) $ 307,702 2021 615,403 2022 536,044 2023 533,308 2024 533,308 Thereafter 772,619 Total $ 3,298,384 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | June 30, December 31, 2020 2019 Cost of land use rights $ 11,531,218 $ 14,731,847 Less: Accumulated amortization (2,766,022 ) (3,459,032 ) Land use rights, net $ 8,765,196 $ 11,272,815 |
Schedule of amortization expense | 2020 (Six months) $ 160,712 2021 321,424 2022 321,424 2023 321,424 2024 321,424 Thereafter 7,318,788 Total $ 8,765,196 |
Short-Term and Long-Term Loans
Short-Term and Long-Term Loans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of short-term loan | June 30, December 31, 2020 2019 Bank A Interest rate 5.66% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle, also guaranteed by company’s subsidiaries. Also see Note 14 and Note 16. - 7,004,650 Interest rate 5.66% per annum, paid off on May 22, 2020,secured by the assets of Kandi Vehicle, also guaranteed by company’s subsidiaries. Also see Note 14 and Note 16. - 4,621,921 Bank B Interest rate 5.22% per annum, paid off on April 22, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 5,741,517 Interest rate 5.22% per annum, paid off on April 24, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 4,306,138 Interest rate 5.22% per annum, paid off on April 26, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 4,306,138 $ - $ 25,980,364 |
Schedule of long-term loan | June 30, December 31, 2020 2019 Long term bank loans: $ Bank C Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company’s subsidiaries. 27,446,875 28,133,433 Other long term loans: Loan under Paycheck Protection Program① 244,116 - Economic Injury Disaster Loan ② 150,000 - Long term loans - current and noncurrent portion $ 27,840,991 28,133,433 ① The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs;” or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses. As of June 30, 2020, we had received $244,116 under the PPP. ② In addition, Economic Injury Disaster Loans (“EIDL”) through the SBA was also made available under the CARES Act passed by Congress in response to the COVID-19 pandemic. During June 2020, $150,000 of EIDL loan was approved with the term of a 3.75% rate over 30 years, and a 12-month deferment on the first repayment of principal with interest accrued during deferment. |
Taxes (Tables)
Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense exemptions and reductions | Six Months Ended June 30, 2020 2019 Tax benefit (holiday) credit $ 164,163 $ 169,810 Basic net income per share effect $ 0.000 $ 0.000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of information related to operating leases | Six months ended Cash payments for operating leases $ 68,000 |
Schedule of maturities of lease liabilities | Maturity of Lease Liabilities: Lease payable 2020 $ 70,117 2021 47,578 Total $ 117,695 |
Summarized Information of Equ_2
Summarized Information of Equity Method Investment in the Affiliate Company (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summarized Information Of Equity Method Investment [Abstract] | |
Schedule of condensed income statement information | Three Months ended June 30, 2020 2019 Condensed income statement information: Net sales $ 16,456,551 $ 2,828,732 Gross loss (2,304,516 ) (2,606,809 ) Gross margin -14.0 % -92.2 % Net loss (13,535,506 ) (10,359,258 ) Six Months ended June 30, 2020 2019 Condensed income statement information: Net sales $ 23,083,813 $ 4,085,605 Gross loss (2,642,287 ) (2,628,351 ) Gross margin -11.4 % -64.3 % Net loss (18,572,368 ) (30,550,572 ) |
Schedule of condensed balance sheet information | June 30, December 31, 2020 2019 Condensed balance sheet information: Current assets $ 561,723,436 $ 640,688,401 Noncurrent assets 52,287,099 64,589,516 Total assets $ 614,010,535 $ 705,277,917 Current liabilities 420,915,948 490,625,640 Equity 193,094,587 214,652,277 Total liabilities and equity $ 614,010,535 $ 705,277,917 |
Schedule of equity method investments | Six Months ended June 30, 2020 2019 Investment in the Affiliate Company, beginning of the period, $ 47,228,614 $ 128,929,893 Gain from equity dilution - 4,341,259.00 Company’s share in net (loss) income of Affiliate based on 22% ownership for six months ended June 30, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for three months ended June 30, 2019 (4,086,848 ) (14,591,456 ) Intercompany transaction elimination - (14,157 ) Prior year unrealized profit realized 5,549 156,254 Subtotal (4,081,299 ) (14,449,359 ) Exchange difference (656,867 ) 323,099 Investment in Affiliate Company, end of the period $ 42,490,448 $ 119,144,892 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic area | Three Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 8,571,281 $ 5,050,136 China 10,865,795 19,096,094 Total $ 19,437,076 $ 24,146,230 Major products EV parts $ 12,514,548 $ 18,988,741 EV products (1,913 ) - Off-road vehicles 6,564,415 5,157,489 Electric Scooters and Electric Self-Balancing Scooters 360,026 - Total $ 19,437,076 $ 24,146,230 Timing of revenue recognition Products transferred at a point in time $ 19,437,076 $ 24,146,230 Total $ 19,437,076 $ 24,146,230 Six Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 10,702,105 $ 10,272,661 China 15,107,395 31,942,029 Total $ 25,809,500 $ 42,214,690 Major products EV parts $ 14,595,883 $ 31,760,181 EV products 253,906 - Off-road vehicles 10,599,685 10,454,509 Electric Scooters and Electric Self-Balancing Scooters 360,026 - Total $ 25,809,500 $ 42,214,690 Timing of revenue recognition Products transferred at a point in time $ 25,809,500 $ 42,214,690 Total $ 25,809,500 $ 42,214,690 |
Liquidity (Details)
Liquidity (Details) ¥ in Millions | Mar. 10, 2020USD ($) | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2020CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Mar. 10, 2020CNY (¥) | Mar. 09, 2020USD ($) | Mar. 09, 2020CNY (¥) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Liquidity (Details) [Line Items] | ||||||||||||
Working capital | $ 75,587,762 | $ 63,698,697 | ||||||||||
Working capital increasing | 11,889,065 | |||||||||||
Cash and cash equivalents | 3,457,498 | 5,490,557 | $ 3,608,933 | |||||||||
Restricted cash | 3,221,053 | $ 11,022,078 | ||||||||||
Real estate repurchase agreement, description | After two years of negotiations, on March 10, 2020, a real estate repurchase agreement (the “Repurchase Agreement”) was entered into by and between Kandi Vehicles and Jinhua Economic and Technological Development Zone pursuant to which the local government shall purchase the land use right over the land of 66 acres (400 mu, 265,029 square meters) that is owned by Kandi Vehicles for RMB 525 million ($74 million). | |||||||||||
Equity method investments on affiliate | $ 26,300,000 | ¥ 186 | $ 35,000,000 | ¥ 244 | ||||||||
Subsequent Event [Member] | ||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||
Equity method investments on affiliate | $ 18,400,000 | ¥ 130 | ||||||||||
Subsequent Event [Member] | Second payment [Member] | ||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||
Equity method investments on affiliate | 17,000,000 | 119 | ||||||||||
Subsequent Event [Member] | Final payment [Member] | ||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||
Equity method investments on affiliate | $ 22,900,000 | ¥ 162 | ||||||||||
Maximum [Member] | ||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||
Equity method investments on affiliate | $ 74,000,000 | ¥ 525 | ||||||||||
Minimum [Member] | ||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||
Equity method investments on affiliate | $ 71,000,000 | ¥ 500 |
Principles of Consolidation (De
Principles of Consolidation (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Kandi New Energy [Member] | Kandi Vehicles [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Percentage owned in subsidiary | 50.00% |
Percentage of economic benefits, voting rights and residual interests | 100.00% |
Kandi New Energy [Member] | Mr. Hu Xiaoming [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Percentage owned in subsidiary | 50.00% |
Kandi New Energy [Member] | Kandi Hainan [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Percentage owned in subsidiary | 10.00% |
Kandi Vehicles [Member] | Kandi Hainan [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Percentage owned in subsidiary | 90.00% |
Kandi Vehicles [Member] | Affiliate Company and its Subsidiaries [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Percentage of ownership interest | 22.00% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Customers [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Suppliers [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of concentration percentage | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Customer A [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 57.00% | 36.00% | 51.00% | 47.00% | |
Customer A [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 66.00% | 55.00% | |||
Customer B [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 15.00% | 27.00% | 15.00% | 18.00% | |
Customer B [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 6.00% | 5.00% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of concentration percentage | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Purchases [Member] | Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 59.00% | 69.00% | 59.00% | 48.00% | |
Purchases [Member] | Supplier C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 24.00% | 13.00% | 25.00% | 15.00% | |
Accounts Payable [Member] | Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 13.00% | 8.00% | |||
Accounts Payable [Member] | Supplier C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) | 6 Months Ended |
Jun. 30, 2020shares | |
Earnings Per Share [Abstract] | |
Potentially dilutive shares | 3,900,000 |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details) - Schedule of earnings loss per share - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of earnings loss per share [Abstract] | ||||
Net income (loss) | $ 4,055,046 | $ (7,318,158) | $ 2,480,400 | $ (11,727,630) |
Weighted average shares used in basic computation | 53,369,602 | 52,806,331 | 52,862,043 | 52,189,237 |
Weighted average shares used in diluted computation | 53,369,602 | 52,806,331 | 52,862,043 | 52,189,237 |
Basic | $ 0.08 | $ (0.14) | $ 0.05 | $ (0.22) |
Diluted | $ 0.08 | $ (0.14) | $ 0.05 | $ (0.22) |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable, net - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of accounts receivable, net [Abstract] | ||
Accounts receivable | $ 60,271,467 | $ 61,436,514 |
Less: allowance for doubtful accounts | (251,012) | (254,665) |
Accounts receivable, net | $ 60,020,455 | $ 61,181,849 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of inventories [Abstract] | ||
Raw material | $ 10,022,590 | $ 12,127,957 |
Work-in-progress | 11,369,771 | 4,545,736 |
Finished goods | 6,852,906 | 11,062,873 |
Inventories | $ 28,245,267 | $ 27,736,566 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Notes Receivable (Details) [Line Items] | ||
Notes receivable | $ 42,487,225 | |
Other Affiliates [Member] | ||
Notes Receivable (Details) [Line Items] | ||
Other receivables | $ 15,562,661 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Other Receivables Disclosure [Abstract] | ||
Amount due from unrelated party for equity transfer of the Affiliate Company | $ 26,315,045 | |
Other receivable | $ 13,726,757 | $ 3,577,145 |
Unrelated party annual interest rate | 6.00% |
Other Receivables (Details) - S
Other Receivables (Details) - Schedule of other receivables - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of other receivables [Abstract] | ||
Amount due from unrelated party for equity transfer of the Affiliate Company | $ 26,315,045 | |
Loan to third party | 13,726,757 | 3,577,145 |
Others | 2,619,540 | 1,442,826 |
Total other receivables | $ 42,661,342 | $ 5,019,971 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||||
Net book value of property, plant and equipment pledged as collateral bank loans | $ 0 | $ 0 | $ 6,484,497 | ||
Depreciation expenses | $ 1,750,013 | $ 1,876,569 | $ 3,530,165 | $ 3,892,028 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plants and equipment - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
At cost | $ 119,066,846 | $ 120,719,212 |
Less: Accumulated depreciation | (49,158,882) | (46,311,354) |
Property, plant and equipment, net | 69,907,964 | 74,407,858 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 30,017,395 | 30,447,480 |
Less: Accumulated depreciation | (6,396,987) | (5,975,030) |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 62,128,182 | 62,973,794 |
Less: Accumulated depreciation | (16,735,598) | (14,127,506) |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 1,041,911 | 1,048,651 |
Less: Accumulated depreciation | (611,384) | (537,829) |
Motor vehicles and other transport equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 412,260 | 413,046 |
Less: Accumulated depreciation | (369,453) | (360,098) |
Molds and others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 25,467,098 | 25,836,241 |
Less: Accumulated depreciation | $ (25,045,460) | $ (25,310,891) |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses for intangible assets | $ 152,846 | $ 157,967 | $ 307,702 | $ 317,470 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Gross carrying value of intangible assets | $ 5,295,345 | $ 5,360,827 |
Less: Accumulated amortization | (1,996,961) | (1,706,055) |
Intangible assets, net | $ 3,298,384 | 3,654,772 |
Trade Name [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 1 year 6 months | |
Gross carrying value of intangible assets | $ 492,235 | 492,235 |
Less: Accumulated amortization | $ (414,426) | (389,053) |
Customer Relations [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 1 year 6 months | |
Gross carrying value of intangible assets | $ 304,086 | 304,086 |
Less: Accumulated amortization | (256,017) | (240,342) |
Patent [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Gross carrying value of intangible assets | 4,499,024 | 4,564,506 |
Less: Accumulated amortization | $ (1,326,518) | $ (1,076,660) |
Patent [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 5 years | |
Patent [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 6 years 8 months 1 day |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of amortization expenses - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of amortization expenses [Abstract] | ||
2020 (Nine months) | $ 307,702 | |
2021 | 615,403 | |
2022 | 536,044 | |
2023 | 533,308 | |
2024 | 533,308 | |
Thereafter | 772,619 | |
Total | $ 3,298,384 | $ 3,654,772 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Land Use Rights [Abstract] | |||||
Land use rights | $ 2,200,000 | ||||
Net book value of land use rights pledged as collateral | $ 0 | 0 | $ 4,937,138 | ||
Land use rights, amortization expenses | $ 79,751 | $ 82,837 | $ 160,712 | $ 166,599 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - Schedule of land use rights - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of land use rights [Abstract] | ||
Cost of land use rights | $ 11,531,218 | $ 14,731,847 |
Less: Accumulated amortization | (2,766,022) | (3,459,032) |
Land use rights, net | $ 8,765,196 | $ 11,272,815 |
Land Use Rights, Net (Details_2
Land Use Rights, Net (Details) - Schedule of amortization expense - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of amortization expense [Abstract] | ||
2020 (Six months) | $ 160,712 | |
2021 | 321,424 | |
2022 | 321,424 | |
2023 | 321,424 | |
2024 | 321,424 | |
Thereafter | 7,318,788 | |
Total | $ 8,765,196 | $ 11,272,815 |
Short-Term and Long-Term Loan_2
Short-Term and Long-Term Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | ||||
Interest expense of short-term and long-term bank loans | $ 748,269 | $ 429,355 | $ 1,590,317 | $ 868,538 |
Aggregate amount of short-term and long-term loans guaranteed by various third parties | $ 0 | $ 0 |
Short-Term and Long-Term Loan_3
Short-Term and Long-Term Loans (Details) - Schedule of short-term loan - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Short-term loans | $ 25,980,364 | |
Paid Off May 22, 2020 [Member] | Bank A [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 7,004,650 | |
Paid Off May 22, 2020 One [Member] | Bank A [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 4,621,921 | |
Paid Off April 22, 2020 [Member] | Bank B [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 5,741,517 | |
Paid Off April 24, 2020 [Member] | Bank B [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 4,306,138 | |
Paid Off April 26, 2020 [Member] | Bank B [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | $ 4,306,138 |
Short-Term and Long-Term Loan_4
Short-Term and Long-Term Loans (Details) - Schedule of short-term loan (Parentheticals) - Bank B [Member] | 6 Months Ended |
Jun. 30, 2020 | |
Paid Off May 22, 2020 [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.66% |
Paid off date | May 22, 2020 |
Paid Off May 22, 2020 One [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.66% |
Paid off date | May 22, 2020 |
Paid Off April 22, 2020 [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.22% |
Paid off date | Apr. 22, 2020 |
Paid Off April 24, 2020 [Member] | |
Short-term Debt [Line Items] | |
Paid off date | Apr. 24, 2020 |
Paid Off April 24, 2020 [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.22% |
Paid Off April 26, 2020 [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.22% |
Paid off date | Apr. 26, 2020 |
Short-Term and Long-Term Loan_5
Short-Term and Long-Term Loans (Details) - Schedule of amortization expense - Bank C [Member] - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | |
Short-Term and Long-Term Loans (Details) - Schedule of amortization expense [Line Items] | |||
Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company’s subsidiaries. | $ 27,446,875 | $ 28,133,433 | |
Loan under Paycheck Protection Program | [1] | 244,116 | |
Economic Injury Disaster Loan | [2] | 150,000 | |
Long term loans - current and noncurrent portion | $ 27,840,991 | $ 28,133,433 | |
[1] | The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs;” or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses. As of June 30, 2020, we had received $244,116 under the PPP. | ||
[2] | In addition, Economic Injury Disaster Loans (“EIDL”) through the SBA was also made available under the CARES Act passed by Congress in response to the COVID-19 pandemic. During June 2020, $150,000 of EIDL loan was approved with the term of a 3.75% rate over 30 years, and a 12-month deferment on the first repayment of principal with interest accrued during deferment. |
Short-Term and Long-Term Loan_6
Short-Term and Long-Term Loans (Details) - Schedule of amortization expense (Parentheticals) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of amortization expense [Abstract] | |
Interest rate | 7.00% |
Due date | Dec. 12, 2021 |
Short term and long term loans description | The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration ("SBA") to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program ("PPP"). An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly "payroll costs;" or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower's PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses. As of June 30, 2020, we had received $244,116 under the PPP. In addition, Economic Injury Disaster Loans ("EIDL") through the SBA was also made available under the CARES Act passed by Congress in response to the COVID-19 pandemic. During June 2020, $150,000 of EIDL loan was approved with the term of a 3.75% rate over 30 years, and a 12-month deferment on the first repayment of principal with interest accrued during deferment. |
Taxes (Details)
Taxes (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Taxes (Details) [Line Items] | ||||
Applicable corporate income tax rate | 25.00% | |||
Reduced income tax rate | 15.00% | |||
Certificate validation period | 3 years | |||
Corporation income tax, description | After combining research and development tax credits of 25% on certain qualified research and development expenses, the Company’s effective tax rate for the six months ended June 30, 2020 and 2019 were a tax expense of 62.43% on a reported income before taxes of approximately $6.6 million, a tax benefit of 6.02% on a reported loss before taxes of approximately $12.5 million, respectively. | |||
Corporate income tax | 25.00% | 25.00% | ||
Tax expense | $ 4,122,502 | $ 751,193 | ||
PRC [Member] | ||||
Taxes (Details) [Line Items] | ||||
Corporation income tax, description | The applicable CIT rate of each of the Company’s three other subsidiaries, Kandi New Energy, Yongkang Scrou and Kandi Hainan, the Affiliate Company and its subsidiaries is 25%. | |||
Net operating loss carry forward | $ 28,100,000 | $ 9,600,000 | ||
Net Loss Carry Forward Term | 5 years | |||
U.S. [Member] | ||||
Taxes (Details) [Line Items] | ||||
Cumulative net operating loss | $ 0 |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax expense exemptions and reductions - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of income tax expense exemptions and reductions [Abstract] | ||
Tax benefit (holiday) credit | $ 164,163 | $ 169,810 |
Basic net income per share effect | $ 0 | $ 0 |
Leases (Details)
Leases (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Leases (Details) [Line Items] | ||
Right of use asset | $ 115,087 | $ 115,087 |
Lease liability | 117,695 | 117,695 |
Operating lease cost | $ 35,000 | $ 68,000 |
SC Autosports [Member] | Corporate Office [Member] | ||
Leases (Details) [Line Items] | ||
Lease term | 15 years | 15 years |
Monthly lease payment, description | The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. | |
Discount rate | 4.25% | 4.25% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of information related to operating leases - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Schedule of information related to operating leases [Abstract] | ||
Cash payments for operating leases | $ 35,000 | $ 68,000 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities | Jun. 30, 2020USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
2020 | $ 70,117 |
2021 | 47,578 |
Total | $ 117,695 |
Contingent Consideration Liab_2
Contingent Consideration Liability (Details) - USD ($) | Jul. 01, 2018 | Jan. 03, 2018 | Dec. 31, 2018 | Jun. 30, 2020 | Dec. 31, 2019 |
Contingent Consideration Liability (Details) [Line Items] | |||||
Contingent Consideration Liability | $ 2,334,000 | $ 5,197,000 | |||
Jinhua An Kao [Member] | |||||
Contingent Consideration Liability (Details) [Line Items] | |||||
Contingent consideration liability, description | Accordingly, the KSBS Shareholders received 739,959 shares of Kandi’s restrictive common stock or 12.5% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. For the year ended December 31, 2019, Kandi Smart Battery Swap achieved its second year net profit target. Accordingly, the KSBS Shareholders received 986,810 shares of Kandi’s restrictive common stock or 16.67% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019.As the outbreak of COVID-19 in 2020 affected Kandi Smart Battery Swap’s operation and business, on July 7, 2020, the Company and the KSBS Shareholders made following supplements to Condition III of the original Supplementary Agreement: The transferor has the right to receive a total of 20.83% of total equity consideration (i.e., 5,919,674 total shares), provided that Kandi Smart Battery Swap realizes a net profit of RMB50,000,000 or more for the period from January 1, 2020 to June 30, 2021 (as opposed to be the originally stated “December 31, 2020”), and such profit is audited or reviewed and Kandi Smart Battery Swap gets annual or quarterly financial report issued subject to US GAAP. On July 1, 2018, the Company completed the acquisition of 100% of the equity of SC Autosports (d/b/a Kandi America). The Company issued a total of 171,969 shares of restrictive stock or approximately 0.3% of the Company’s total outstanding shares of the common stock immediately prior to the closing of the acquisition valued at approximately $0.8 million at the closing of transaction to the former members of SC Autosports within 30 days from the signing date of the Transfer Agreement, and may be required to pay future consideration of up to an additional 1,547,721 shares of common stock of the Company, which are being held in escrow and to be released contingent upon the achievement of certain pre-tax profit based milestones in the next three years. Any escrowed shares that are not released from escrow to the SC Autosports former members due to the failure to achieve the milestones will be forfeited and returned to the Company for cancellation. While the escrowed shares are held in escrow, the Company will retain all voting rights with respect to the shares. For the year ended December 31, 2018, SC Autosports achieved its first year pre-tax profit target. Accordingly, the former members of SC Autosports received 343,938 shares of Kandi’s restrictive common stock or 20% of the total equity consideration in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. Accordingly, the former members of SC Autosports received 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019. | ||||
Number of shares issued | 2,959,837 | ||||
Number of shares, granted | 739,959 | ||||
SC Autosports [Member] | |||||
Contingent Consideration Liability (Details) [Line Items] | |||||
Contingent consideration liability, description | For the year ended December 31, 2018, SC Autosports achieved its first year pre-tax profit target. Accordingly, the former members of SC Autosports received 343,938 shares of Kandi’s restrictive common stock or 20% of the total equity consideration in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. Accordingly, the former members of SC Autosports received 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019. | ||||
Number of shares, granted | 343,938 | ||||
SC Autosports [Member] | Transfer Agreement [Member] | |||||
Contingent Consideration Liability (Details) [Line Items] | |||||
Number of shares issued | 1,547,721 | ||||
Restricted Stock [Member] | Jinhua An Kao [Member] | |||||
Contingent Consideration Liability (Details) [Line Items] | |||||
Contingent consideration liability, description | the Company completed the acquisition of 100% of the equity of Jinhua An Kao, currently known as Kandi Smart Battery Swap Co., Ltd. (“Kandi Smart Battery Swap”). The Company paid approximately RMB 25.93 million (approximately $4 million) at the closing of the transaction using cash on hand and issued a total of 2,959,837 shares of restrictive stock or 6.2% of the Company’s total outstanding shares of the common stock immediately prior to the closing of the acquisition valued at approximately $20.7 million to the former shareholders of Kandi Smart Battery Swap and his designees (the “KSBS Shareholders”), and may be required to pay future consideration of up to an additional 2,959,837 shares of common stock, which are being held in escrow and to be released contingent upon the achievement of certain net income-based milestones in the next three years. | ||||
Number of shares issued, value | $ 20,700,000 | ||||
Number of shares issued | $ 2,959,837 | ||||
Restricted Stock [Member] | SC Autosports [Member] | Transfer Agreement [Member] | |||||
Contingent Consideration Liability (Details) [Line Items] | |||||
Contingent consideration liability, description | the Company completed the acquisition of 100% of the equity of SC Autosports (d/b/a Kandi America). The Company issued a total of 171,969 shares of restrictive stock or approximately 0.3% of the Company’s total outstanding shares of the common stock immediately prior to the closing of the acquisition valued at approximately $0.8 million at the closing of transaction to the former members of SC Autosports within 30 days from the signing date of the Transfer Agreement, and may be required to pay future consideration of up to an additional 1,547,721 shares of common stock of the Company, which are being held in escrow and to be released contingent upon the achievement of certain pre-tax profit based milestones in the next three years. | ||||
Number of shares issued | 171,969 | ||||
Number of shares issued, value | $ 800,000 |
Stock Award (Details)
Stock Award (Details) - USD ($) | May 15, 2020 | May 09, 2020 | Apr. 30, 2019 | Jan. 29, 2019 | Apr. 18, 2018 | Nov. 30, 2016 | Sep. 26, 2016 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Employee Stock Award Expenses [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Employee stock award expenses (in Dollars) | $ 824,621 | $ 1,282,733 | $ 847,546 | $ 1,314,408 | |||||||
2008 Plan [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Reduce total number of shares of common stock | 250,000 | ||||||||||
Number of shares, granted | 238,600 | ||||||||||
Mr. Henry Yu [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Restricted shares of common stock | 5,000 | ||||||||||
Mr. Jerry Lewin [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Restricted shares of common stock | 5,000 | ||||||||||
Ms. Kewa Luo [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Restricted shares of common stock | 5,000 | ||||||||||
Mr Mei Bing [Member] | Three Year Employment Agreement [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Shares of common stock | 10,000 | ||||||||||
Vested shares of four equal quarterly installments | 2,500 | ||||||||||
Ms Zhu Xiaoying [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Shares of common stock | 10,000 | ||||||||||
Mr. Jehn Ming Lim [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Shares of common stock | 6,000 | ||||||||||
Management Members and Employees [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Number of shares, granted | 238,600 | 238,600 |
Summarized Information of Equ_3
Summarized Information of Equity Method Investment in the Affiliate Company (Details) ¥ in Millions | Jul. 27, 2020USD ($) | Jul. 27, 2020CNY (¥) | Sep. 29, 2019USD ($) | Sep. 29, 2019CNY (¥) | Mar. 21, 2019 | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019 | Jun. 30, 2020USD ($) | Jun. 30, 2020CNY (¥) | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | Jun. 30, 2020CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Dec. 31, 2019USD ($) | Sep. 29, 2019CNY (¥) |
Summarized Information of Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||||
Equity method investments on affiliate | $ 26,300,000 | $ 26,300,000 | ¥ 186 | $ 35,000,000 | ¥ 244 | ||||||||||||
Ownership percentage of net income loss | 22.00% | 22.00% | |||||||||||||||
Sales to affiliate Company and subsidiaries, description | The gain from equity dilution for three months ended March 31, 2019 resulted from the Affiliate Company issuing shares to the major shareholder of the Affiliate Company, Greely, in exchange for extinguishment of a loan from Greely, resulting in dilution of equity ownership of the Company from 50% to 43.47%. This dilutive transaction was treated as if the Company sold a proportional share of its investment in the Affiliate Company. | ||||||||||||||||
Net amount due from the affiliate company | 20,107,347 | $ 20,107,347 | $ 31,330,763 | ||||||||||||||
Amount non current due to affiliate company | $ 2,053,131 | 2,053,131 | $ 2,056,564 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||||
Equity method investments on affiliate | $ 18,400,000 | ¥ 130 | |||||||||||||||
Affiliated Company [Member] | |||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||||
Sales to affiliate Company and subsidiaries, description | Kandi Vehicles signed an Equity Transfer Agreement with Geely Technologies Group Co., Ltd. (“Geely”) to transfer certain equity interests in the Affiliate Company to Geely. Pursuant to the Transfer Agreement, the Affiliate Company converted a loan of RMB 314 million (approximately $44.4 million) from Geely last year to equity in order to increase its cash flow. As a result, the registered capital of the Affiliate Company became RMB 2.40 billion (approximately $339.5 million), of which Kandi Vehicles owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company. Kandi Vehicles further agree to sell 21.47% of its equity interests in the Affiliate Company to Geely for a total amount of RMB 516 million (approximately $73.0 million). Kandi Vehicles shall own 22% of the equity interests of the Affiliate Company as a result of the transfer. | Sales to the Company’s customers, the Affiliate Company and its subsidiaries, for the three months ended June 30, 2020, were $ 956 or 0% of the Company’s total revenue, a decrease of 100% from $4,089,534 of the same quarter last year. Sales to the Company’s customers, the Affiliate Company and its subsidiaries, for the six months ended June 30, 2020, were $ 956 or 0% of the Company’s total revenue, a decrease of 100% from $5,823,031 of the same quarter last year. Sales to the Affiliate Company and its subsidiaries were primarily of battery packs, body parts, EV drive motors, EV controllers, air conditioning units and other auto parts. | |||||||||||||||
Realized gain from sale of equity | $ 20,438,986 | $ 15,600,000 | ¥ 110 | ||||||||||||||
Affiliated Company [Member] | Subsequent Event [Member] | |||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||||
Realized gain from sale of equity | $ 26,300,000 | ¥ 186 | |||||||||||||||
Geely Automobile Holdings Ltd [Member] | |||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||||
Cash proceeds from affiliates | $ 31,100,000 | ¥ 220 | |||||||||||||||
Equity method investments on affiliate | 41,900,000 | ¥ 296 | |||||||||||||||
January 20, 2020 [Member] | Geely Automobile Holdings Ltd [Member] | |||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||||
Equity method investments on affiliate | 19,800,000 | 140 | |||||||||||||||
March 29, 2020 [Member] | Geely Automobile Holdings Ltd [Member] | |||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||||
Equity method investments on affiliate | $ 22,100,000 | ¥ 156 |
Summarized Information of Equ_4
Summarized Information of Equity Method Investment in the Affiliate Company (Details) - Schedule of condensed income statement information - Affiliated Company [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||||
Net sales | $ 16,456,551 | $ 2,828,732 | $ 23,083,813 | $ 4,085,605 |
Gross loss | $ (2,304,516) | $ (2,606,809) | $ (2,642,287) | $ (2,628,351) |
Gross margin | (14.00%) | (92.20%) | (11.40%) | (64.30%) |
Net loss | $ (13,535,506) | $ (10,359,258) | $ (18,572,368) | $ (30,550,572) |
Summarized Information of Equ_5
Summarized Information of Equity Method Investment in the Affiliate Company (Details) - Schedule of condensed balance sheet information - Affiliated Company [Member] - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | $ 561,723,436 | $ 640,688,401 |
Noncurrent assets | 52,287,099 | 64,589,516 |
Total assets | 614,010,535 | 705,277,917 |
Current liabilities | 420,915,948 | 490,625,640 |
Equity | 193,094,587 | 214,652,277 |
Total liabilities and equity | $ 614,010,535 | $ 705,277,917 |
Summarized Information of Equ_6
Summarized Information of Equity Method Investment in the Affiliate Company (Details) - Schedule of equity method investments - Affiliated Company [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment in the Affiliate Company, beginning of the period, | $ 47,228,614 | $ 128,929,893 |
Gain from equity dilution | 4,341,259 | |
Company’s share in net (loss) income of Affiliate based on 22% ownership for six months ended June 30, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for three months ended June 30, 2019 | (4,086,848) | (14,591,456) |
Intercompany transaction elimination | (14,157) | |
Prior year unrealized profit realized | 5,549 | 156,254 |
Subtotal | (4,081,299) | (14,449,359) |
Exchange difference | (656,867) | 323,099 |
Investment in Affiliate Company, end of the period | $ 42,490,448 | $ 119,144,892 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ¥ in Millions | Mar. 15, 2013USD ($) | Jul. 31, 2017 | Apr. 30, 2017 | Sep. 29, 2015USD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2016CNY (¥) | Sep. 29, 2015CNY (¥) | Mar. 15, 2013CNY (¥) |
Nanlong Group Co Ltd [Member] | ||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||
Description of loans period | (“NGCL”) for NGCL’s $ 2,829,575 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua Branch, with a related loan period from March 15, 2013 to March 15, 2016. | |||||||
Guarantee for bank loans amount | $ 2,829,575 | ¥ 20 | ||||||
Shanghai Pudong Development Bank [Member] | ||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||
Loan borrowed, description | In April 2017, Shanghai Pudong Development Bank filed a lawsuit against NGCL, the Company and ten other parties in Zhejiang Province People’s Court in Yongkang City, alleging NGCL defaulted on a bank loan borrowed from Shanghai Pudong Development Bank for a principal amount of approximately $2.9 million and demanded that the guarantor bear the liability for compensation. | |||||||
Zhejiang Shuguang Industrial Co Ltd [Member] | ||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||
Description of loans period | (“ZSICL”) for a bank loan in the amount of $4,102,883 (RMB 29 million) from Ping An Bank, with a related loan period of September 29, 2015, to September 28, 2016. | |||||||
Guarantee for bank loans amount | $ 4,102,883 | ¥ 29 | ||||||
Ping An Bank [Member] | ||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||
Guarantee for bank loans amount | $ 4,200,000 | ¥ 29 | ||||||
Loan borrowed, description | the Company and Ping An Bank reached an agreement to settle. According to the agreement, the Company was to pay Ping An Bank RMB 20 million or approximately $3.0 million in four installments before October 31, 2017 to release the Company from its guarantor liability for this default. As of October 31, 2017, the Company has paid all four installments totaling RMB 20 million or approximately $3.0 million to Ping An Bank and thus the Company has been released from its guarantor liability for this default. According to the Company’s agreement with ZSICL, ZSICL agreed to reimburse all the Company’s losses due to ZSICL’s default on the loan principal and interests, of which RMB 13.9 million has been reimbursed to the Company as of the date of this report and the remainder is expected to be reimbursed in installments. The Company expects the likelihood of incurring losses in connection with this matter to be low. |
Segment Reporting (Details)
Segment Reporting (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenues by geographic area - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 19,437,076 | $ 24,146,230 | $ 25,809,500 | $ 42,214,690 |
Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 19,437,076 | 24,146,230 | 25,809,500 | 42,214,690 |
Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 19,437,076 | 24,146,230 | 25,809,500 | 42,214,690 |
Off-road vehicles [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,564,415 | 5,157,489 | 10,599,685 | 10,454,509 |
Electric Scooters and Electric Self-Balancing Scooters [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 360,026 | 360,026 | ||
Overseas [Member] | Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,571,281 | 5,050,136 | 10,702,105 | 10,272,661 |
China [Member] | Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,865,795 | 19,096,094 | 15,107,395 | 31,942,029 |
EV parts [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,514,548 | 18,988,741 | 14,595,883 | 31,760,181 |
EV products [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (1,913) | 253,906 | ||
Products transferred at a point in time [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 19,437,076 | $ 24,146,230 | $ 25,809,500 | $ 42,214,690 |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 09, 2020 |
Subsequent Event [Member] | |
Subsequent Events (Details) [Line Items] | |
Repurchase agreement, description | On July 9, 2020, the Company received the second payment of RMB 119 million (approximately $17 million) under the Repurchase Agreement. In order to construct a new facility in the Jinhua New Energy Automotive Zone, on July 7, 2020, Kandi Vehicles entered in to a construction contract. The total contract amount was RMB 138.2 million (approximately $19.6 million). On July 27, 2020, the Company received the remaining RMB186 million (approximately $26.3 million) equity transfer payment from Geely. |