Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 03, 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 | 54,610,758 | |
Amendment Flag | false | |
Entity Central Index Key | 0001316517 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
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, City or Town | Jinhua | |
Entity Address, Address Line One | Jinhua City Industrial Zone | |
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 ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 23,909,159 | $ 5,490,557 |
Restricted cash | 250,000 | 11,022,078 |
Accounts receivable (net of allowance for doubtful accounts of $105,833 and $254,665 as of September 30, 2020 and December 31, 2019, respectively) | 38,370,898 | 61,181,849 |
Inventories | 30,244,514 | 27,736,566 |
Notes receivable | 235,249 | 42,487,225 |
Other receivables | 54,654,688 | 5,019,971 |
Prepayments and prepaid expense | 10,980,473 | 10,615,063 |
Amount due from the Affiliate Company | 20,869,315 | 31,330,763 |
Other current assets | 4,262,285 | 688,364 |
TOTAL CURRENT ASSETS | 183,776,581 | 195,572,436 |
NON-CURRENT ASSETS | ||
Property, plant and equipment, net | 71,132,470 | 74,407,858 |
Intangible assets, net | 3,264,500 | 3,654,772 |
Land use rights, net | 9,042,991 | 11,272,815 |
Investment in the Affiliate Company | 39,442,126 | 47,228,614 |
Goodwill | 28,792,031 | 28,270,400 |
Other long term assets | 13,132,240 | 10,811,501 |
TOTAL NON-CURRENT ASSETS | 164,806,358 | 175,645,960 |
TOTAL ASSETS | 348,582,939 | 371,218,396 |
CURRENT LIABILITIES | ||
Accounts payable | 42,154,366 | 72,093,940 |
Other payables and accrued expenses | 5,857,897 | 6,078,041 |
Short-term loans | 25,980,364 | |
Notes payable | 10,765,344 | |
Income tax payable | 1,087,338 | 1,796,601 |
Advance receipts | 36,691,372 | |
Long term loans - current portion | 16,761,501 | 13,779,641 |
Other current liabilities | 1,456,108 | 1,379,808 |
TOTAL CURRENT LIABILITIES | 104,008,582 | 131,873,739 |
NON-CURRENT LIABILITIES | ||
Long term loans | 12,156,573 | 14,353,792 |
Deferred taxes liability | 3,460,346 | 1,362,786 |
Contingent consideration liability | 3,403,000 | 5,197,000 |
Other long-term liabilities | 588,123 | 574,152 |
TOTAL NON-CURRENT LIABILITIES | 19,608,042 | 21,487,730 |
TOTAL LIABILITIES | 123,616,624 | 153,361,469 |
STOCKHOLDER'S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 56,531,702 and 56,263,102 shares issued and 54,610,758 and 52,839,441 outstanding at September 30,2020 and December 31,2019, respectively | 54,611 | 52,839 |
Less: Treasury stock (487,155 shares with average price of $5.09 at September 30,2020 and December 31,2019, respectively) | (2,477,965) | (2,477,965) |
Additional paid-in capital | 260,605,209 | 259,691,370 |
Accumulated deficit | (15,663,602) | (16,685,736) |
Accumulated other comprehensive loss | (17,551,938) | (22,723,581) |
TOTAL STOCKHOLDERS' EQUITY | 224,966,315 | 217,856,927 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 348,582,939 | $ 371,218,396 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts (in Dollars) | $ 105,833 | $ 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 | 56,531,702 | 56,263,102 |
Common stock, shares outstanding | 54,610,758 | 52,839,441 |
Treasury stock, shares | 487,155 | 487,155 |
Treasury stock, average price (in Dollars per share) | $ 5.09 | $ 5.09 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
REVENUES FROM UNRELATED PARTIES, NET | $ 18,717,212 | $ 26,968,385 | $ 44,525,756 | $ 63,360,044 |
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTIES, NET | 6 | 4,720,159 | 962 | 10,543,190 |
REVENUES, NET | 18,717,218 | 31,688,544 | 44,526,718 | 73,903,234 |
COST OF GOODS SOLD | (14,806,322) | (26,412,129) | (35,911,785) | (61,288,228) |
GROSS PROFIT | 3,910,896 | 5,276,415 | 8,614,933 | 12,615,006 |
OPERATING EXPENSES: | ||||
Research and development | (987,285) | (596,187) | (2,777,426) | (1,766,210) |
Selling and marketing | (2,165,383) | (930,810) | (3,807,355) | (2,448,291) |
General and administrative | (3,212,209) | (3,432,920) | (10,186,135) | (11,096,246) |
Gain on disposal of long-lived assets | 76,159 | 13,983,733 | ||
TOTAL OPERATING EXPENSES, NET | (6,288,718) | (4,959,917) | (2,787,183) | (15,310,747) |
(LOSS) INCOME FROM OPERATIONS | (2,377,822) | 316,498 | 5,827,750 | (2,695,741) |
OTHER INCOME (EXPENSE): | ||||
Interest income | 558,059 | 209,736 | 1,118,795 | 559,954 |
Interest expense | (788,589) | (435,524) | (2,894,579) | (1,304,062) |
Change in fair value of contingent consideration | (1,069,000) | 57,000 | 1,794,000 | 694,000 |
Government grants | 13,431 | 502,146 | 111,329 | 725,189 |
Gain (loss) from equity dilution in the Affiliate Company | (49,285) | 4,291,974 | ||
Gain from sale of equity in the Affiliate Company | 20,574,217 | 20,574,217 | ||
Share of loss after tax of the Affiliate Company | (1,550,568) | (8,433,767) | (5,631,867) | (22,883,126) |
Other income, net | 988,287 | 57,833 | 2,051,272 | 357,626 |
TOTAL OTHER (EXPENSE) INCOME, NET | (1,848,380) | 12,482,356 | (3,451,050) | 3,015,772 |
(LOSS) INCOME BEFORE INCOME TAXES | (4,226,202) | 12,798,854 | 2,376,700 | 320,031 |
INCOME TAX BENEFIT (EXPENSE) | 2,767,939 | (709,413) | (1,354,563) | 41,780 |
NET (LOSS) INCOME | (1,458,263) | 12,089,441 | 1,022,137 | 361,811 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment | 8,216,974 | (8,531,043) | 5,171,643 | (8,042,604) |
COMPREHENSIVE INCOME (LOSS) | $ 6,758,711 | $ 3,558,398 | $ 6,193,780 | $ (7,680,793) |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED (in Shares) | 54,112,981 | 52,613,642 | 53,282,066 | 52,332,260 |
NET (LOSS) INCOME PER SHARE, BASIC AND DILUTED (in Dollars per share) | $ (0.03) | $ 0.23 | $ 0.02 | $ 0.01 |
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 Loss | 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 awards | $ 1,097 | 3,387,379 | 3,388,476 | |||
Stock issuance and awards (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 awards | $ 238 | 1,259,569 | 1,259,807 | |||
Stock issuance and awards (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 | |||||
Stock issuance and awards | $ 20 | 69,380 | 69,400 | |||
Stock issuance and awards (in Shares) | 20,000 | |||||
Stock buyback | (2,477,965) | (2,477,965) | ||||
Commission in stock buyback | (14,615) | (14,615) | ||||
Net income (loss) | 12,089,441 | 12,089,441 | ||||
Foreign currency translation | (8,531,043) | (8,531,043) | ||||
Balance at Sep. 30, 2019 | $ 52,839 | (2,477,965) | 259,691,370 | (9,135,198) | (27,963,862) | 220,167,184 |
Balance (in Shares) at Sep. 30, 2019 | 52,839,441 | |||||
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 awards | $ 10 | 22,290 | 22,300 | |||
Stock issuance and awards (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 awards | $ 1,503 | 3,164,925 | 3,166,428 | |||
Stock issuance and awards (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 | |||||
Stock issuance and awards | $ 259 | 870,837 | 871,096 | |||
Stock issuance and awards (in Shares) | 258,600 | |||||
Net income (loss) | (1,458,263) | (1,458,263) | ||||
Foreign currency translation | 8,216,974 | 8,216,974 | ||||
Reduction in the Affiliate Company’s equity | (3,144,213) | (3,144,213) | ||||
Balance at Sep. 30, 2020 | $ 54,611 | $ (2,477,965) | $ 260,605,209 | $ (15,663,602) | $ (17,551,938) | $ 224,966,315 |
Balance (in Shares) at Sep. 30, 2020 | 54,610,758 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,022,137 | $ 361,811 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 6,078,070 | 6,443,422 |
(Reversal) provision of allowance for doubtful accounts | (150,756) | 15,366 |
Deferred taxes | 1,256,167 | 50,693 |
Share of loss after tax of the Affiliate Company | 5,631,867 | 22,883,126 |
Gain from equity dilution in the Affiliate Company | (4,291,974) | |
Gain from sale of equity in the Affiliate Company | (20,574,217) | |
Gain on disposal of long-lived assets | (13,983,733) | |
Change in fair value of contingent consideration | (1,794,000) | (694,000) |
Stock based compensation expense | 870,471 | 1,337,333 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 18,165,084 | (36,822,184) |
Notes receivable | 174,881 | |
Notes receivable from the Affiliate Company and related party | 437,203 | |
Inventories | (1,830,827) | (14,768,603) |
Other receivables and other assets | (5,226,968) | (7,746,801) |
Prepayments and prepaid expenses | (84,089) | 1,357,001 |
Amount due from the Affiliate Company | 4,178,477 | 30,549,072 |
Increase (Decrease) In: | ||
Accounts payable | (15,642,931) | 11,383,411 |
Other payables and accrued liabilities | 2,675,156 | 8,934,397 |
Notes payable | (13,725,855) | (11,836,950) |
Income tax payable | (804,238) | (1,803,574) |
Net cash used in operating activities | (13,365,968) | (14,610,587) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (383,568) | (955,670) |
Payment for construction in progress | (1,604,427) | (18,491) |
Proceeds from disposal of long-lived assets | 51,872,829 | |
Loan to third party | (45,958,247) | (9,555,014) |
Cash received from sales of equity in the Affiliate Company | 42,321,385 | 32,061,558 |
Net cash provided by investing activities | 46,247,972 | 21,532,383 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 24,163,223 | 27,864,409 |
Repayments of short-term loans | (50,042,178) | (26,261,331) |
Repayments of long-term loans | (285,955) | (145,734) |
Proceeds from long-term loans | 394,116 | |
Repayments of loan from third party | (1,259,551) | |
Stock buyback with commission | (2,492,579) | |
Net cash used in financing activities | (25,770,794) | (2,294,786) |
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 7,111,210 | 4,627,010 |
Effect of exchange rate changes | 535,314 | (928,440) |
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 | 24,159,159 | 26,051,641 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 23,909,159 | 14,338,637 |
-RESTRICTED CASH AT END OF PERIOD | 250,000 | 11,713,004 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 901,021 | 1,711,101 |
Interest paid | 644,724 | 1,304,062 |
SUPPLEMENTAL NON-CASH DISCLOSURES: | ||
Decrease in investment in the Affiliate Company due to change in its equity | 3,057,540 | |
Notes receivable from unrelated parties for equity transfer payment | 43,137,369 | |
Common stock issued for settlement of payables related to acquisitions (see Note 20) | $ 3,166,427 | $ 3,357,425 |
Organization and Principal Acti
Organization and Principal Activities | 9 Months Ended |
Sep. 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”). In September 2020, Kandi Vehicles transferred all of its equity interest in Yongkang Scrou Electric Co, Ltd. (“Yongkang Scrou”) to its wholly owned subsidiary, Kandi Smart Battery Swap. In September 2020, to better monetize its dozens of patents in the field of battery swap systems and attract strategic investors to participate across the whole sector value chain, including battery swapping services and used battery recycling, the Company formed China Battery Exchange Technology Co., Ltd. (“China Battery Exchange”). Kandi Vehicles has 100% ownership interest in China Battery Exchange. As of September 30, 2020, China Battery Exchange has not commenced any business operations. In September 2020, intending to operate a ridesharing service across China, Zhejiang Ruiheng Technology Co., Ltd (“Ruiheng”) was established by Zhejiang Ruibo New Energy Vehicle Service Company Ltd. (“Ruibo”), Jiangsu Jinpeng Group Ltd. (“Jinpeng”) and Kandi Vehicles. Ruibo, Jinpeng and Kandi Vehicles each owns 80%, 10%, and 10% of Ruiheng, respectively. 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’s power electric motor and Kandi Smart Battery Swap’s power battery pack. |
Liquidity
Liquidity | 9 Months Ended |
Sep. 30, 2020 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had working capital of $ 79,767,999 as of September 30, 2020, an increase of $ 16,069,302 from the working capital of $63,698,697 as of December 31, 2019. As of September 30, 2020 and December 31, 2019, the Company’s cash and cash equivalents were $23,909,159 and $5,490,557, respectively. The Company’s restricted cash was $ 250,000 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 ($77 million). Payments to Kandi Vehicles shall be made in three installments pursuant to the Repurchase Agreement. 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 ($74 million) over the next eight years. On May 22, 2020, the Company received the first payment of RMB 244 million (approximately $36 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 ($23.8 million) will be received when the Company vacates the land, factory buildings, and other real estate and moves to the new facility. Kandi Vehicles intends to use a portion of the proceeds from the land repurchase (approximately RMB 130 million, or $19.1 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 September 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 $27.3 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 | 9 Months Ended |
Sep. 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. Though it becomes more stable in China, there are new cases reported continuously at present. The extent to which the COVID-19 may impact operations of the Company, with majority of operations based in China, is alleviated though it remains uncertain due to the fact that the COVID-19 is not completely over. 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 nine months ended September 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 | 9 Months Ended |
Sep. 30, 2020 | |
Principles Of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 4 - PRINCIPLES OF CONSOLIDATION The Company’s condensed 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) 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; (5) 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; (6) Yongkang Scrou Electric Co, Ltd. (“Yongkang Scrou”), a wholly-owned subsidiary of Kandi Smart Battery Swap, incorporated under the laws of the PRC; and (7) SC Autosports (d/b/a Kandi America), a wholly-owned subsidiary of the Company formed under the laws of the State of Texas. Equity Method Investee The Company’s consolidated net income also includes the Company’s proportionate share of the net income or loss of its equity method investment in the Affiliate Company, in which the Company owns 22% equity interest. All intra-entity profits and losses with regard to the Company’s equity method investee have been eliminated. |
Use of Estimates
Use of Estimates | 9 Months Ended |
Sep. 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 condensed 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 | 9 Months Ended |
Sep. 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’s 2019 Form 10-K, excepting the following. (v) Reclassification Certain reclassifications have been made to the condensed consolidated statements of cash flows for nine months ended September 30, 2019 to conform to the presentation of condensed consolidated financial statement for nine months ended September 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; 3) reclassifying a portion of other receivables and other assets under operating activities to loan to third party under investing activities; 4) reclassifying a portion of other payables and accrued liabilities under operating activities to repayments of loan from third party under financing activities. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 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 December 18, 2019, the FASB issued ASU 2019-12, income Taxes — Simplifying the Accounting for Income Taxes serves to simplify the accounting for income taxes by removing certain following Codification exceptions, including exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment. This guidance will be effective after December 15, 2020, 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. 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 | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the three-month period ended September 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 Ended Ended September 30, September 30, September 30, December 31, Major Customers 2020 2019 2020 2019 Customer A 28 % 30 % 49 % 55 % Customer B 11 % 30 % 9 % 5 % Customer C 11 % - 4 % - For the nine-month period ended September 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 Nine Months Nine Months Ended Ended September 30, September 30, September 30, December 31, Major Customers 2020 2019 2020 2019 Customer A 41 % 39 % 49 % 55 % Customer B 13 % 23 % 9 % 5 % (b) Suppliers For the three-month period ended September 30, 2020, the Company’s major suppliers, each of whom accounted for more than 10% of the Company’s total purchases, were as follows: Purchases Accounts Payable Three Months Three Months Ended Ended September 30, September 30, September 30, December 31, Major Suppliers 2020 2019 2020 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 32 % 93 % 9 % 8 % Supplier D 28 % - 5 % - For the nine -month period ended September 30, 2020, the Company’s major suppliers, each of whom accounted for more than 10% of the Company’s total purchases, were as follows: Purchases Accounts Payable Nine Months Nine Months Ended Ended September 30, September 30, September 30, December 31, Major Suppliers 2020 2019 2020 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 48 % 67 % 9 % 8 % Supplier D 26 % 13 % 5 % - |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 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, approximately 3,900,000 options were excluded from the calculation of diluted net loss per share, for the three-month and nine-month period ended September 30, 2020. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 10 - ACCOUNTS RECEIVABLE Accounts receivable are summarized as follows: September 30, December 31, 2020 2019 Accounts receivable $ 38,476,731 $ 61,436,514 Less: allowance for doubtful accounts (105,833 ) (254,665 ) Accounts receivable, net $ 38,370,898 $ 61,181,849 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: September 30, December 31, 2020 2019 Raw material $ 10,551,048 $ 12,127,957 Work-in-progress 13,643,534 4,545,736 Finished goods 6,049,932 11,062,873 Inventories $ 30,244,514 $ 27,736,566 |
Notes Receivable
Notes Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | NOTE 12 - NOTES RECEIVABLE As of September 30, 2020, there was $235,249 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, which had been collected during the nine-month ended September 30, 2020. |
Other Receivables
Other Receivables | 9 Months Ended |
Sep. 30, 2020 | |
Other Receivables Disclosure [Abstract] | |
OTHER RECEIVABLES | NOTE 13 - OTHER RECEIVABLES Other receivables consist of the following: September 30, December 31, 2020 2019 Loan to third party $ 50,925,239 $ 3,577,145 Others 3,729,449 1,442,826 Total other receivables $ 54,654,688 $ 5,019,971 As of September 30, 2020 and December 31, 2019, the Company’s other receivable includes $50,925,239 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 | 9 Months Ended |
Sep. 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 September 30, 2020 and December 31, 2019, consisted of the following: September 30, December 31, 2020 2019 At cost: Buildings $ 31,196,057 $ 30,447,480 Machinery and equipment 64,833,897 62,973,794 Office equipment 1,098,001 1,048,651 Motor vehicles and other transport equipment 430,468 413,046 Molds and others 26,466,491 25,836,241 124,024,914 120,719,212 Less : Accumulated depreciation $ (52,892,444 ) $ (46,311,354 ) Property, plant and equipment, net $ 71,132,470 $ 74,407,858 As of September 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 September 30, 2020 and 2019 were $1,795,124 and $1,832,835, respectively. Depreciation expenses for the nine months ended September 30, 2020 and 2019 were $5,325,289 and $5,724,864, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 15 - INTANGIBLE ASSETS Intangible assets include acquired intangibles of trade name, customer relations and patent. The following table provides the gross carrying value and accumulated amortization for each major class of our intangible assets, other than goodwill: Remaining September 30, December 31, useful life 2020 2019 Gross carrying amount: Trade name 1.25 years $ 492,235 $ 492,235 Customer relations 1.25 years 304,086 304,086 Patent 4.75-6.42 years 4,675,577 4,564,506 5,471,898 5,360,827 Less : Accumulated amortization Trade name $ (427,113 ) $ (389,053 ) Customer relations (263,854 ) (240,342 ) Patent (1,516,431 ) (1,076,660 ) (2,207,398 ) (1,706,055 ) Intangible assets, net $ 3,264,500 $ 3,654,772 The aggregate amortization expenses for those intangible assets were $156,040 and $154,027 for the three months ended September 30, 2020 and 2019, respectively. The aggregate amortization expenses for those intangible assets were $463,743 and $471,497 for the nine months ended September 30, 2020 and 2019, respectively. Amortization expenses for the next five years and thereafter are as follows: Three months ending December 31, 2020 $ 156,041 Years ending December 31, 2021 624,165 2022 544,805 2023 542,070 2024 542,070 Thereafter 855,349 Total $ 3,264,500 |
Land Use Rights, Net
Land Use Rights, Net | 9 Months Ended |
Sep. 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: September 30, December 31, 2020 2019 Cost of land use rights $ 11,983,731 $ 14,731,847 Less: Accumulated amortization (2,940,740 ) (3,459,032 ) Land use rights, net $ 9,042,991 $ 11,272,815 During June 2020, land use right in the net carrying value of $2.3 million was returned to the government as the Company began to perform its obligations under the Repurchase Agreement. As of September 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 September 30, 2020 and 2019, were $65,229 and $80,462, respectively. The amortization expenses for the nine months ended September 30, 2020 and 2019, were $225,941 and $247,061, respectively. Amortization expenses for the next five years and thereafter is as follows: Three months ending December 31, 2020 $ 75,314 Years ending December 31, 2021 301,255 2022 301,255 2023 301,255 2024 301,255 Thereafter 7,762,657 Total $ 9,042,991 |
Short-Term and Long-Term Loans
Short-Term and Long-Term Loans | 9 Months Ended |
Sep. 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: September 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: September 30, December 31, 2020 2019 Long term bank loans from bank C Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company’s subsidiaries. $ 28,523,958 $ 28,133,433 Other long term loans: Loan under Paycheck Protection Program① 244,116 - Economic Injury Disaster Loan② 150,000 - Total long term loans $ 28,918,074 $ 28,133,433 Long term loans - current portion 16,761,501 13,779,641 Long term loans - noncurrent portion 12,156,573 14,353,792 Total long term loans - current and noncurrent portion $ 28,918,074 $ 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 September 30, 2020, the Company 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 September 30, 2020 and 2019 were $504,905 and $435,524, respectively. The interest expenses of short-term and long-term loans for the nine months ended September 30, 2020 and 2019 were $2,095,222 and $1,304,062, respectively. As of September 30, 2020, the aggregate amount of short-term and long-term loans guaranteed by various third parties was $0. |
Taxes
Taxes | 9 Months Ended |
Sep. 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 2020, 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 stock compensation inelegible for U.S. income tax deduction and 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 nine months ended September 30, 2020 and 2019 were a tax expense of 56.99% on a reported income before taxes of approximately $2.4 million, a tax benefit of 13.05% on a reported income before taxes of approximately $0.3 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 nine months ended September 30, 2020 and 2019 was tax expense of $1,354,563 and tax benefit of $41,780, 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 September 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 September 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 September 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 $28,709 cumulative net operating loss in U.S. to carry forward as of September 30, 2020. The cumulative net operating loss in Hong Kong can be carried forward without an expiration date. (b) Tax Holiday Effect For the nine months ended September 30, 2020 and 2019, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the nine months ended September 30, 2020 and 2019. The combined effects of income tax expense exemptions and reductions available to the Company for the nine months ended September 30, 2020 and 2019 are as follows: Nine Months Ended September 30, 2020 2019 Tax benefit (holiday) credit $ 1,669,668 $ 377,303 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 | 9 Months Ended |
Sep. 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 September 30, 2020, the Company’s right - of - use asset (grouped in other long term assets on the balance sheet) was $80,561 and lease liability (grouped in other current liability on the balance sheet) was $82,823. For the three months ended September 30, 2020, the Company’s operating lease expense was $36,000. For the nine months ended September 30, 2020, the Company’s operating lease expense was $104,000. Supplemental information related to operating leases was as follows: Nine months ended Cash payments for operating leases $ 104,000 Maturities of lease liabilities as of September 30, 2020, were as follow: Maturity of Lease Liabilities: Lease payable Three months ended December 31,2020 $ 35,245 Year ended December 31, 2021 47,578 Total $ 82,823 |
Contingent Consideration Liabil
Contingent Consideration Liability | 9 Months Ended |
Sep. 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 the following supplements to Condition III of the original Supplementary Agreement: The KSBC Shareholders have the right to receive an aggregate of 20.83% of the 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 under 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 September 30, 2020 and December 31, 2019, the Company’s contingent consideration liability was $3,403,000 and $5,197,000, respectively. Details of the contingent consideration liability as of September 30, 2020 and December 31, 2019 were as follow: September 30, December 31, 2020 2019 Contingent consideration liability to KSBS Shareholders $ 3,403,000 $ 2,505,000 Contingent consideration liability to former members of SC Autosports - 2,692,000 Total contingent consideration liability $ 3,403,000 $ 5,197,000 |
Stock Award
Stock Award | 9 Months Ended |
Sep. 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 with service condition is determined based on the closing price of the common stock on the date the shares are granted. The compensation costs for awards of common stock are recognized over the requisite service period. 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 September 30, 2020 and 2019, the Company recognized $22,925 and $22,925 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 nine months ended September 30, 2020 and 2019, the Company recognized $870,471 and $1,337,333 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. |
Equity Method Investment in the
Equity Method Investment in the Affiliate Company | 9 Months Ended |
Sep. 30, 2020 | |
Summarized Information Of Equity Method Investment [Abstract] | |
EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY | NOTE 22 - EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY The Company’s condensed consolidated statement of operations includes the Company’s proportionate share of the net income or loss of the Company’s equity method investee. When the Company records its proportionate share of net income (loss) in such investee, it increases other income (expense) in the Company’s consolidated statements of operations and increase (decrease) the Company’s carrying value in that investment. 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 $46.2 million) from Geely in the year of 2019 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 $352.8 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 sold 21.47% of its equity interests in the Affiliate Company to Geely for a total consideration of RMB 516 million (approximately $75.9 million). Kandi Vehicles owns 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 $32.3 million) and certain commercial acceptance notes of RMB 296 million (approximately $43.5 million) from Geely, of which RMB 140 million (approximately $20.6 million) matured on January 20, 2020 and the remaining RMB 156 million (approximately $22.9 million) matured 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 $20,574,217. As of September 30, 2020, all the equity transfer payment has been collected. 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 nine months ended September 30, 2020. The consolidated results of operations and financial position of the Affiliate Company are summarized below: Three Months ended September 30, 2020 2019 Condensed income statement information: Net sales $ 25,981,694 $ 520,275 Gross loss (3,590,584 ) (377,700 ) Gross margin -13.8 % -72.6 % Net loss (6,700,345 ) (19,435,546 ) Nine Months ended September 30, 2020 2019 Condensed income statement information: Net sales $ 49,065,507 $ 4,605,880 Gross loss (6,232,871 ) (3,006,051 ) Gross margin -12.7 % -65.3 % Net loss (25,272,713 ) (49,986,119 ) September 30, December 31, 2020 2019 Condensed balance sheet information: Current assets $ 612,861,812 $ 640,688,401 Noncurrent assets 275,555,271 64,589,516 Total assets $ 888,417,083 $ 705,277,917 Current liabilities 693,913,123 490,625,640 Noncurrent liabilities 8,738,570 - Shareholder’s equity 179,241,720 214,652,277 Non-controlling interest 6,523,670 - Total liabilities and equity $ 888,417,083 $ 705,277,917 The change for the Company’s investments in the Affiliate Company for the nine months ended September 30, 2020 and 2019 are as follows: Nine Months ended September 30, 2020 2019 Investment in the Affiliate Company, beginning of the period, $ 47,228,614 $ 128,929,893 Investment decreased in 2019 (72,309,417 ) Gain from equity dilution - 4,291,974 Gain from sale of equity - 20,574,217 Reduction in the equity of the Affiliate Company* (3,144,213 ) - Company’s share in net loss of Affiliate Company based on 22% ownership for nine months ended September 30, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for six months ended September 30, 2019 (5,561,258 ) (23,025,049 ) Non-controlling interest (76,189 ) - Intercompany transaction elimination - (12,557 ) Prior year’s unrealized profit realized 5,580 154,480 Subtotal (5,631,867 ) (22,883,126 ) Exchange difference 989,592 (4,766,530 ) Investment in Affiliate Company, end of the period $ 39,442,126 $ 53,837,011 * The Affiliate Company converted RMB 1.2 billion of the debt due from Zhejiang ZuoZhongYou Automobile Service Co., Ltd (“ZuoZhongYou”) into 85% of its equity interest. ZuoZhongYou is under common control with the Affiliate Company by Geely. On August 28, 2020. There was about RMB 97.2 million of difference between the carrying value of the debt of RMB 1.2 billion and the carrying value of ZuoZhongYou’s net asset at the transaction date. Hence, there is a decrease of RMB 21.4 million (approximately $3.1 million, which is 22% of the RMB 97.2 million) of “Investment in the Affiliate Company” on the Company’s book, with a corresponding decrease to the additional paid in capital. 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 related parties, the Affiliate Company and its subsidiaries, for the three months ended September 30, 2020, were $6 (due to exchange rate difference) or 0% of the Company’s total revenue, a decrease of 100% from $4,720,159 of the same quarter last year. Sales to the Company’s related parties, the Affiliate Company and its subsidiaries, for the nine months ended September 30, 2020, were $ 962 or 0% of the Company’s total revenue, a decrease of 100% from $10,543,190 of the same period 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 September 30, 2020 and December 31, 2019, the net amount due from the Affiliate Company and its subsidiaries, was $20,869,315 and $31,330,763, respectively. As of September 30, 2020 and December 31, 2019 the net amount due from the Affiliate Company and its subsidiaries included $2,106,607 and $2,056,564 interest receivable related to the loan lent to the Affiliate Company that was paid off. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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 $2,940,614 (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. (2) Pledged collateral for bank loans for which the parties other than the Company are the borrowers. As of September 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. In September 2020, this action was transferred to the New York 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. The SLC recommended to Kandi’s board of directors in June 2020 that the SLC be dissolved in light of the ongoing derivative action pending in the Delaware Court of Chancery, and this recommendation was adopted by the board in August 2020. 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 | 9 Months Ended |
Sep. 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 $ 9,253,750 $ 5,703,050 China 9,463,468 25,985,494 Total $ 18,717,218 $ 31,688,544 Major products EV parts $ 8,438,958 $ 25,847,506 EV products 515,128 - Off-road vehicles 8,852,475 5,841,038 Electric Scooters, Electric Self-Balancing Scooters and associated parts 910,657 - Total $ 18,717,218 $ 31,688,544 Timing of revenue recognition Products transferred at a point in time $ 18,717,218 $ 31,688,544 Total $ 18,717,218 $ 31,688,544 Nine Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 19,955,855 $ 15,975,711 China 24,570,863 57,927,523 Total $ 44,526,718 $ 73,903,234 Major products EV parts $ 23,034,841 $ 57,607,687 EV products 769,034 - Off-road vehicles 19,452,160 16,295,547 Electric Scooters, Electric Self-Balancing Scooters and associated parts 1,270,683 - Total $ 44,526,718 $ 73,903,234 Timing of revenue recognition Products transferred at a point in time $ 44,526,718 $ 73,903,234 Total $ 44,526,718 $ 73,903,234 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 25 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of issuance of the interim condensed consolidated financial statements, there were no other subsequent events occurred that would require recognition or disclosure in the interim condensed consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Reclassification | (v) Reclassification Certain reclassifications have been made to the condensed consolidated statements of cash flows for nine months ended September 30, 2019 to conform to the presentation of condensed consolidated financial statement for nine months ended September 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; 3) reclassifying a portion of other receivables and other assets under operating activities to loan to third party under investing activities; 4) reclassifying a portion of other payables and accrued liabilities under operating activities to repayments of loan from third party under financing activities. |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Customers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Sales Trade Receivable Three Months Three Months Ended Ended September 30, September 30, September 30, December 31, Major Customers 2020 2019 2020 2019 Customer A 28 % 30 % 49 % 55 % Customer B 11 % 30 % 9 % 5 % Customer C 11 % - 4 % - Sales Trade Receivable Nine Months Nine Months Ended Ended September 30, September 30, September 30, December 31, Major Customers 2020 2019 2020 2019 Customer A 41 % 39 % 49 % 55 % Customer B 13 % 23 % 9 % 5 % |
Suppliers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Purchases Accounts Payable Three Months Three Months Ended Ended September 30, September 30, September 30, December 31, Major Suppliers 2020 2019 2020 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 32 % 93 % 9 % 8 % Supplier D 28 % - 5 % - Purchases Accounts Payable Nine Months Nine Months Ended Ended September 30, September 30, September 30, December 31, Major Suppliers 2020 2019 2020 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 48 % 67 % 9 % 8 % Supplier D 26 % 13 % 5 % - |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | September 30, December 31, 2020 2019 Accounts receivable $ 38,476,731 $ 61,436,514 Less: allowance for doubtful accounts (105,833 ) (254,665 ) Accounts receivable, net $ 38,370,898 $ 61,181,849 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, December 31, 2020 2019 Raw material $ 10,551,048 $ 12,127,957 Work-in-progress 13,643,534 4,545,736 Finished goods 6,049,932 11,062,873 Inventories $ 30,244,514 $ 27,736,566 |
Other Receivables (Tables)
Other Receivables (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Receivables Disclosure [Abstract] | |
Schedule of other receivables | September 30, December 31, 2020 2019 Loan to third party $ 50,925,239 $ 3,577,145 Others 3,729,449 1,442,826 Total other receivables $ 54,654,688 $ 5,019,971 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | September 30, December 31, 2020 2019 At cost: Buildings $ 31,196,057 $ 30,447,480 Machinery and equipment 64,833,897 62,973,794 Office equipment 1,098,001 1,048,651 Motor vehicles and other transport equipment 430,468 413,046 Molds and others 26,466,491 25,836,241 124,024,914 120,719,212 Less : Accumulated depreciation $ (52,892,444 ) $ (46,311,354 ) Property, plant and equipment, net $ 71,132,470 $ 74,407,858 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 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 September 30, December 31, useful life 2020 2019 Gross carrying amount: Trade name 1.25 years $ 492,235 $ 492,235 Customer relations 1.25 years 304,086 304,086 Patent 4.75-6.42 years 4,675,577 4,564,506 5,471,898 5,360,827 Less : Accumulated amortization Trade name $ (427,113 ) $ (389,053 ) Customer relations (263,854 ) (240,342 ) Patent (1,516,431 ) (1,076,660 ) (2,207,398 ) (1,706,055 ) Intangible assets, net $ 3,264,500 $ 3,654,772 |
Schedule of amortization expenses | Three months ending December 31, 2020 $ 156,041 Years ending December 31, 2021 624,165 2022 544,805 2023 542,070 2024 542,070 Thereafter 855,349 Total $ 3,264,500 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | September 30, December 31, 2020 2019 Cost of land use rights $ 11,983,731 $ 14,731,847 Less: Accumulated amortization (2,940,740 ) (3,459,032 ) Land use rights, net $ 9,042,991 $ 11,272,815 |
Schedule of amortization expense | Three months ending December 31, 2020 $ 75,314 Years ending December 31, 2021 301,255 2022 301,255 2023 301,255 2024 301,255 Thereafter 7,762,657 Total $ 9,042,991 |
Short-Term and Long-Term Loans
Short-Term and Long-Term Loans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of short-term loan | September 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 | September 30, December 31, 2020 2019 Long term bank loans from bank C Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company’s subsidiaries. $ 28,523,958 $ 28,133,433 Other long term loans: Loan under Paycheck Protection Program① 244,116 - Economic Injury Disaster Loan② 150,000 - Total long term loans $ 28,918,074 $ 28,133,433 Long term loans - current portion 16,761,501 13,779,641 Long term loans - noncurrent portion 12,156,573 14,353,792 Total long term loans - current and noncurrent portion $ 28,918,074 $ 28,133,433 |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense exemptions and reductions | Nine Months Ended September 30, 2020 2019 Tax benefit (holiday) credit $ 1,669,668 $ 377,303 Basic net income per share effect $ 0.000 $ 0.000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of information related to operating leases | Nine months ended Cash payments for operating leases $ 104,000 |
Schedule of maturities of lease liabilities | Maturity of Lease Liabilities: Lease payable Three months ended December 31,2020 $ 35,245 Year ended December 31, 2021 47,578 Total $ 82,823 |
Contingent Consideration Liab_2
Contingent Consideration Liability (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of contingent consideration liability | September 30, December 31, 2020 2019 Contingent consideration liability to KSBS Shareholders $ 3,403,000 $ 2,505,000 Contingent consideration liability to former members of SC Autosports - 2,692,000 Total contingent consideration liability $ 3,403,000 $ 5,197,000 |
Equity Method Investment in t_2
Equity Method Investment in the Affiliate Company (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summarized Information Of Equity Method Investment [Abstract] | |
Schedule of condensed income statement information | Three Months ended September 30, 2020 2019 Condensed income statement information: Net sales $ 25,981,694 $ 520,275 Gross loss (3,590,584 ) (377,700 ) Gross margin -13.8 % -72.6 % Net loss (6,700,345 ) (19,435,546 ) Nine Months ended September 30, 2020 2019 Condensed income statement information: Net sales $ 49,065,507 $ 4,605,880 Gross loss (6,232,871 ) (3,006,051 ) Gross margin -12.7 % -65.3 % Net loss (25,272,713 ) (49,986,119 ) |
Schedule of condensed balance sheet information | September 30, December 31, 2020 2019 Condensed balance sheet information: Current assets $ 612,861,812 $ 640,688,401 Noncurrent assets 275,555,271 64,589,516 Total assets $ 888,417,083 $ 705,277,917 Current liabilities 693,913,123 490,625,640 Noncurrent liabilities 8,738,570 - Shareholder’s equity 179,241,720 214,652,277 Non-controlling interest 6,523,670 - Total liabilities and equity $ 888,417,083 $ 705,277,917 |
Schedule of equity method investments | Nine Months ended September 30, 2020 2019 Investment in the Affiliate Company, beginning of the period, $ 47,228,614 $ 128,929,893 Investment decreased in 2019 (72,309,417 ) Gain from equity dilution - 4,291,974 Gain from sale of equity - 20,574,217 Reduction in the equity of the Affiliate Company* (3,144,213 ) - Company’s share in net loss of Affiliate Company based on 22% ownership for nine months ended September 30, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for six months ended September 30, 2019 (5,561,258 ) (23,025,049 ) Non-controlling interest (76,189 ) - Intercompany transaction elimination - (12,557 ) Prior year’s unrealized profit realized 5,580 154,480 Subtotal (5,631,867 ) (22,883,126 ) Exchange difference 989,592 (4,766,530 ) Investment in Affiliate Company, end of the period $ 39,442,126 $ 53,837,011 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic area | Three Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 9,253,750 $ 5,703,050 China 9,463,468 25,985,494 Total $ 18,717,218 $ 31,688,544 Major products EV parts $ 8,438,958 $ 25,847,506 EV products 515,128 - Off-road vehicles 8,852,475 5,841,038 Electric Scooters, Electric Self-Balancing Scooters and associated parts 910,657 - Total $ 18,717,218 $ 31,688,544 Timing of revenue recognition Products transferred at a point in time $ 18,717,218 $ 31,688,544 Total $ 18,717,218 $ 31,688,544 Nine Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 19,955,855 $ 15,975,711 China 24,570,863 57,927,523 Total $ 44,526,718 $ 73,903,234 Major products EV parts $ 23,034,841 $ 57,607,687 EV products 769,034 - Off-road vehicles 19,452,160 16,295,547 Electric Scooters, Electric Self-Balancing Scooters and associated parts 1,270,683 - Total $ 44,526,718 $ 73,903,234 Timing of revenue recognition Products transferred at a point in time $ 44,526,718 $ 73,903,234 Total $ 44,526,718 $ 73,903,234 |
Organization and Principal Ac_2
Organization and Principal Activities (Details) | Sep. 30, 2020 |
Organization and Principal Activities (Details) [Line Items] | |
Ownership interest | 100.00% |
Jiangsu Jinpeng Group Ltd. (“Jinpeng”) [Member] | |
Organization and Principal Activities (Details) [Line Items] | |
Ownership interest | 80.00% |
Kandi Vehicles. Ruibo, Jinpeng [Member] | |
Organization and Principal Activities (Details) [Line Items] | |
Ownership interest | 10.00% |
Kandi Vehicles [Member] | |
Organization and Principal Activities (Details) [Line Items] | |
Ownership interest | 10.00% |
Liquidity (Details)
Liquidity (Details) ¥ in Millions | Mar. 10, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Mar. 10, 2020CNY (¥) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Liquidity (Details) [Line Items] | ||||||||||
Working capital | $ 79,767,999 | $ 63,698,697 | ||||||||
Working capital increasing | 16,069,302 | |||||||||
Cash and cash equivalents | 23,909,159 | 5,490,557 | $ 14,338,637 | |||||||
Restricted cash | 250,000 | $ 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 ($77 million). | |||||||||
Equity method investments on affiliate | $ 27,300,000 | ¥ 186 | $ 19,100,000 | ¥ 130 | $ 36,000,000 | ¥ 244 | ||||
Second payment [Member] | ||||||||||
Liquidity (Details) [Line Items] | ||||||||||
Equity method investments on affiliate | 17,000,000 | 119 | ||||||||
Final payment [Member] | ||||||||||
Liquidity (Details) [Line Items] | ||||||||||
Equity method investments on affiliate | $ 23,800,000 | ¥ 162 | ||||||||
Maximum [Member] | ||||||||||
Liquidity (Details) [Line Items] | ||||||||||
Equity method investments on affiliate | $ 77,000,000 | ¥ 525 | ||||||||
Minimum [Member] | ||||||||||
Liquidity (Details) [Line Items] | ||||||||||
Equity method investments on affiliate | $ 74,000,000 | ¥ 500 |
Principles of Consolidation (De
Principles of Consolidation (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Principles of Consolidation (Details) [Line Items] | |
Equity interest percentage | 85.00% |
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] | |
Principles of Consolidation (Details) [Line Items] | |
Equity interest percentage | 22.00% |
Kandi Vehicles [Member] | Kandi Hainan [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Percentage owned in subsidiary | 90.00% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Customer A [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 28.00% | 30.00% | 41.00% | 39.00% | |
Customer A [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 49.00% | 55.00% | |||
Customer B [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11.00% | 30.00% | 13.00% | 23.00% | |
Customer B [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 9.00% | 5.00% | |||
Customer C [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11.00% | ||||
Customer C [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 4.00% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of concentration percentage | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | Purchases [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 32.00% | 93.00% | 48.00% | 67.00% | |
Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | Accounts Payable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 9.00% | 8.00% | |||
Supplier D [Member] | Purchases [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 28.00% | 26.00% | 13.00% | ||
Supplier D [Member] | Accounts Payable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration percentage | 5.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) | 9 Months Ended |
Sep. 30, 2020shares | |
Earnings Per Share [Abstract] | |
Potentially dilutive shares | 3,900,000 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable, net - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of accounts receivable, net [Abstract] | ||
Accounts receivable | $ 38,476,731 | $ 61,436,514 |
Less: allowance for doubtful accounts | (105,833) | (254,665) |
Accounts receivable, net | $ 38,370,898 | $ 61,181,849 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of inventories [Abstract] | ||
Raw material | $ 10,551,048 | $ 12,127,957 |
Work-in-progress | 13,643,534 | 4,545,736 |
Finished goods | 6,049,932 | 11,062,873 |
Inventories | $ 30,244,514 | $ 27,736,566 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Notes receivable | $ 235,249 | $ 42,487,225 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Other Receivables Disclosure [Abstract] | ||
Other receivable | $ 50,925,239 | $ 3,577,145 |
Unrelated party annual interest rate | 6.00% |
Other Receivables (Details) - S
Other Receivables (Details) - Schedule of other receivables - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of other receivables [Abstract] | ||
Loan to third party | $ 50,925,239 | $ 3,577,145 |
Others | 3,729,449 | 1,442,826 |
Total other receivables | $ 54,654,688 | $ 5,019,971 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 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 | $ 1,795,124 | $ 1,832,835 | $ 5,325,289 | $ 5,724,864 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plants and equipment - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
At cost | $ 124,024,914 | $ 120,719,212 |
Less : Accumulated depreciation | (52,892,444) | (46,311,354) |
Property, plant and equipment, net | 71,132,470 | 74,407,858 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 31,196,057 | 30,447,480 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 64,833,897 | 62,973,794 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 1,098,001 | 1,048,651 |
Motor vehicles and other transport equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | 430,468 | 413,046 |
Molds and others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost | $ 26,466,491 | $ 25,836,241 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses for intangible assets | $ 156,040 | $ 154,027 | $ 463,743 | $ 471,497 |
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 ($) | 9 Months Ended | |
Sep. 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 | $ 5,471,898 | $ 5,360,827 |
Less: Accumulated amortization | (2,207,398) | (1,706,055) |
Intangible assets, net | $ 3,264,500 | 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 3 months | |
Gross carrying value of intangible assets | $ 492,235 | 492,235 |
Less: Accumulated amortization | $ (427,113) | (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 3 months | |
Gross carrying value of intangible assets | $ 304,086 | 304,086 |
Less: Accumulated amortization | (263,854) | (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 | 4,675,577 | 4,564,506 |
Less: Accumulated amortization | $ (1,516,431) | $ (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 | 4 years 9 months | |
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 5 months 1 day |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of amortization expenses - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of amortization expenses [Abstract] | ||
Three months ending December 31, 2020 | $ 156,041 | |
2021 | 624,165 | |
2022 | 544,805 | |
2023 | 542,070 | |
2024 | 542,070 | |
Thereafter | 855,349 | |
Total | $ 3,264,500 | $ 3,654,772 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Land Use Rights [Abstract] | ||||||
Land use rights | $ 2,300,000 | |||||
Net book value of land use rights pledged as collateral | $ 0 | $ 4,937,138 | ||||
Land use rights, amortization expenses | $ 65,229 | $ 80,462 | $ 225,941 | $ 247,061 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - Schedule of land use rights - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of land use rights [Abstract] | ||
Cost of land use rights | $ 11,983,731 | $ 14,731,847 |
Less: Accumulated amortization | (2,940,740) | (3,459,032) |
Land use rights, net | $ 9,042,991 | $ 11,272,815 |
Land Use Rights, Net (Details_2
Land Use Rights, Net (Details) - Schedule of amortization expense - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of amortization expense [Abstract] | ||
Three months ending December 31, 2020 | $ 75,314 | |
2021 | 301,255 | |
2022 | 301,255 | |
2023 | 301,255 | |
2024 | 301,255 | |
Thereafter | 7,762,657 | |
Total | $ 9,042,991 | $ 11,272,815 |
Short-Term and Long-Term Loan_2
Short-Term and Long-Term Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | ||||||
Paycheck protection program loan, description | (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. | |||||
Loans under paycheck protection program | $ 244,116 | $ 244,116 | ||||
Economic injury disasters loan | $ 150,000 | |||||
Interest rate | 3.75% | |||||
Interest expense of short-term and long-term bank loans | 504,905 | $ 435,524 | 2,095,222 | $ 1,304,062 | ||
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 ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Short-term loans | $ 25,980,364 | |
Paid Off on May 22, 2020 [Member] | Bank A [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 7,004,650 | |
Paid Off on May 22, 2020 One [Member] | Bank A [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 4,621,921 | |
Paid Off on April 22, 2020 [Member] | Bank B [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 5,741,517 | |
Paid Off on April 24, 2020 [Member] | Bank B [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 4,306,138 | |
Paid Off on 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] | 9 Months Ended |
Sep. 30, 2020 | |
Paid Off on May 22, 2020 [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.66% |
Paid off date | May 22, 2020 |
Paid Off on May 22, 2020 One [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.66% |
Paid off date | May 22, 2020 |
Paid Off on April 22, 2020 [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.22% |
Paid off date | Apr. 22, 2020 |
Paid Off on April 24, 2020 [Member] | |
Short-term Debt [Line Items] | |
Paid off date | Apr. 24, 2020 |
Paid Off on April 24, 2020 [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.22% |
Paid Off on 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 long-term loan - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of long-term loan [Abstract] | |||
Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company’s subsidiaries. | $ 28,523,958 | $ 28,133,433 | |
Loan under Paycheck Protection Program① | [1] | 244,116 | |
Economic Injury Disaster Loan② | [2] | 150,000 | |
Total long term loans | 28,918,074 | 28,133,433 | |
Long term loans - current portion | 16,761,501 | 13,779,641 | |
Long term loans - noncurrent portion | 12,156,573 | 14,353,792 | |
Total long term loans - current and noncurrent portion | $ 28,918,074 | $ 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 September 30, 2020, the Company 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, $150,000 of EIDL loan was approved with the term of a 3.75% rate over 30 years, and a 12-month deferment on the first repayment of principal with interest accrued during deferment. |
Taxes (Details)
Taxes (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 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 nine months ended September 30, 2020 and 2019 were a tax expense of 56.99% on a reported income before taxes of approximately $2.4 million, a tax benefit of 13.05% on a reported income before taxes of approximately $0.3 million, respectively. | |||
Corporate income tax | 25.00% | |||
Tax expense | $ 1,354,563 | $ 41,780 | ||
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 | |||
Subsidiaries [Member] | ||||
Taxes (Details) [Line Items] | ||||
Corporate income tax | 25.00% | |||
U.S. [Member] | ||||
Taxes (Details) [Line Items] | ||||
Cumulative net operating loss | $ 28,709 |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax expense exemptions and reductions - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of income tax expense exemptions and reductions [Abstract] | ||
Tax benefit (holiday) credit | $ 1,669,668 | $ 377,303 |
Basic net income per share effect | $ 0 | $ 0 |
Leases (Details)
Leases (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Leases (Details) [Line Items] | ||
Lease liability | $ 82,823 | $ 82,823 |
Operating lease cost | 104,000 | |
Lease [Member] | ||
Leases (Details) [Line Items] | ||
Right of use asset | 80,561 | 80,561 |
Lease liability | 82,823 | 82,823 |
Operating lease cost | $ 36,000 | $ 104,000 |
SC Autosports [Member] | Corporate Office [Member] | ||
Leases (Details) [Line Items] | ||
Lease term | 15 months | 15 months |
Monthly lease payment, description | The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. | |
Discount rate | 4.25% | 4.25% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of information related to operating leases | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Schedule of information related to operating leases [Abstract] | |
Cash payments for operating leases | $ 104,000 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities | Sep. 30, 2020USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
Three months ended December 31,2020 | $ 35,245 |
Year ended December 31, 2021 | 47,578 |
Total | $ 82,823 |
Contingent Consideration Liab_3
Contingent Consideration Liability (Details) | Jul. 02, 2018 | Jul. 01, 2018shares | Jul. 01, 2018USD ($)shares | Jan. 03, 2018USD ($)shares | Sep. 30, 2020CNY (¥)shares | Dec. 31, 2018shares | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Contingent Consideration Liability | $ 3,403,000 | $ 5,197,000 | ||||||
Jinhua An Kao [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Contingent consideration liability, description | 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 the following supplements to Condition III of the original Supplementary Agreement: The KSBC Shareholders have the right to receive an aggregate of 20.83% of the 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 under 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 | shares | 2,959,837 | |||||||
KSBS Shareholders [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Total equity consideration, percentage | 20.83% | |||||||
Total shares of equity consideration | shares | 5,919,674 | |||||||
Net profit | ¥ | ¥ 50,000,000 | |||||||
Contingent Consideration Liability | 3,403,000 | 2,505,000 | ||||||
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. | |||||||
Contingent Consideration Liability | $ 2,692,000 | |||||||
SC Autosports [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Number of shares, granted | shares | 343,938 | |||||||
SC Autosports [Member] | Transfer Agreement [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Number of shares issued | shares | 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. | |||||||
Restricted Stock [Member] | SC Autosports [Member] | Transfer Agreement [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Number of shares issued | shares | 171,969 | |||||||
Number of shares issued, value | $ 800,000 |
Contingent Consideration Liab_4
Contingent Consideration Liability (Details) - Schedule of contingent consideration liability - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | $ 3,403,000 | $ 5,197,000 |
KSBS Shareholders [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | 3,403,000 | 2,505,000 |
SC Autosports [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | $ 2,692,000 |
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 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Employee Stock Award Expenses [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Employee stock award expenses (in Dollars) | $ 22,925 | $ 22,925 | $ 870,471 | $ 1,337,333 | |||||||
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 |
Equity Method Investment in t_3
Equity Method Investment in the Affiliate Company (Details) ¥ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Aug. 28, 2020 | Sep. 29, 2019USD ($) | Sep. 29, 2019CNY (¥) | Mar. 21, 2019 | Sep. 30, 2019USD ($) | Mar. 31, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020CNY (¥) | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Sep. 29, 2019CNY (¥) | |
Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||
Equity method investments on affiliate | $ 27,300,000 | ¥ 186 | $ 19,100,000 | ¥ 130 | $ 36,000,000 | ¥ 244 | |||||||||
Ownership percentage of net income loss | 22.00% | ||||||||||||||
Equity interest percentage | 85.00% | ||||||||||||||
Equity method investment difference between the carrying value in net assets, description | There was about RMB 97.2 million of difference between the carrying value of the debt of RMB 1.2 billion and the carrying value of ZuoZhongYou’s net asset at the transaction date. Hence, there is a decrease of RMB 21.4 million (approximately $3.1 million, which is 22% of the RMB 97.2 million) of “Investment in the Affiliate Company” on the Company’s book, with a corresponding decrease to the additional paid in capital. | ||||||||||||||
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 | $ 20,869,315 | $ 31,330,763 | |||||||||||||
Affiliated Company [Member] | |||||||||||||||
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 $46.2 million) from Geely in the year of 2019 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 $352.8 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 sold 21.47% of its equity interests in the Affiliate Company to Geely for a total consideration of RMB 516 million (approximately $75.9 million). Kandi Vehicles owns 22% of the equity interests of the Affiliate Company as a result of the transfer. | Sales to the Company’s related parties, the Affiliate Company and its subsidiaries, for the three months ended September 30, 2020, were $6 (due to exchange rate difference) or 0% of the Company’s total revenue, a decrease of 100% from $4,720,159 of the same quarter last year. Sales to the Company’s related parties, the Affiliate Company and its subsidiaries, for the nine months ended September 30, 2020, were $ 962 or 0% of the Company’s total revenue, a decrease of 100% from $10,543,190 of the same period 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 | $ 20,574,217 | ||||||||||||||
Interest receivable related to loan | 2,106,607 | $ 2,056,564 | |||||||||||||
Geely Automobile Holdings Ltd [Member] | |||||||||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||
Cash proceeds from affiliates | $ 32,300,000 | ¥ 220 | |||||||||||||
Equity method investments on affiliate | 43,500,000 | ¥ 296 | |||||||||||||
Realized gain from sale of equity | $ 20,574,217 | ||||||||||||||
Conversion of debt | $ 1,200,000,000 | ||||||||||||||
Geely Automobile Holdings Ltd [Member] | January 20, 2020 [Member] | |||||||||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||
Equity method investments on affiliate | 20,600,000 | 140 | |||||||||||||
Geely Automobile Holdings Ltd [Member] | March 29, 2020 [Member] | |||||||||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||||||||||
Equity method investments on affiliate | $ 22,900,000 | ¥ 156 |
Equity Method Investment in t_4
Equity Method Investment in the Affiliate Company (Details) - Schedule of condensed income statement information - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of condensed income statement information [Abstract] | ||||
Net sales | $ 25,981,694 | $ 520,275 | $ 49,065,507 | $ 4,605,880 |
Gross loss | $ (3,590,584) | $ (377,700) | $ (6,232,871) | $ (3,006,051) |
Gross margin | (13.80%) | (72.60%) | (12.70%) | (65.30%) |
Net loss | $ (6,700,345) | $ (19,435,546) | $ (25,272,713) | $ (49,986,119) |
Equity Method Investment in t_5
Equity Method Investment in the Affiliate Company (Details) - Schedule of condensed balance sheet information - Affiliated Company [Member] - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | $ 612,861,812 | $ 640,688,401 |
Noncurrent assets | 275,555,271 | 64,589,516 |
Total assets | 888,417,083 | 705,277,917 |
Current liabilities | 693,913,123 | 490,625,640 |
Noncurrent liabilities | 8,738,570 | |
Shareholder’s equity | 179,241,720 | 214,652,277 |
Non-controlling interest | 6,523,670 | |
Total liabilities and equity | $ 888,417,083 | $ 705,277,917 |
Equity Method Investment in t_6
Equity Method Investment in the Affiliate Company (Details) - Schedule of equity method investments - Affiliated Company [Member] - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Schedule of Equity Method Investments [Line Items] | |||
Investment in the Affiliate Company, beginning of the period, | $ 47,228,614 | $ 128,929,893 | |
Investment decreased in 2019 | (72,309,417) | ||
Gain from equity dilution | 4,291,974 | ||
Gain from equity sale | 20,574,217 | ||
Reduction in the equity of the Affiliate Company | [1] | (3,144,213) | |
Company’s share in net loss of Affiliate Company based on 22% ownership for nine months ended September 30, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for six months ended September 30, 2019 | (5,561,258) | (23,025,049) | |
Non-controlling interest | (76,189) | ||
Intercompany transaction elimination | (12,557) | ||
Prior year’s unrealized profit realized | 5,580 | 154,480 | |
Subtotal | (5,631,867) | (22,883,126) | |
Exchange difference | 989,592 | (4,766,530) | |
Investment in Affiliate Company, end of the period | $ 39,442,126 | $ 53,837,011 | |
[1] | The Affiliate Company converted RMB 1.2 billion of the debt due from Zhejiang ZuoZhongYou Automobile Service Co., Ltd (“ZuoZhongYou”) into 85% of its equity interest. ZuoZhongYou is under common control with the Affiliate Company by Geely. On August 28, 2020. There was about RMB 97.2 million of difference between the carrying value of the debt of RMB 1.2 billion and the carrying value of ZuoZhongYou’s net asset at the transaction date. Hence, there is a decrease of RMB 21.4 million (approximately $3.1 million, which is 22% of the RMB 97.2 million) of “Investment in the Affiliate Company” on the Company’s book, with a corresponding decrease to the additional paid in capital. |
Commitments and Contingencies (
Commitments and Contingencies (Details) ¥ in Millions | Mar. 15, 2013USD ($) | Jul. 31, 2017 | Apr. 30, 2017 | Mar. 15, 2013CNY (¥) |
Nanlong Group Co Ltd [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Description of loans period | (“NGCL”) for NGCL’s $2,940,614 (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 | $ 2,940,614 | ¥ 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 $2.9 million and demanded that the guarantor bear the liability for compensation. | |||
Ping An Bank [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Loan borrowed, description | The Company expects the likelihood of incurring losses in connection with this matter to be remote. |
Segment Reporting (Details)
Segment Reporting (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenues by geographic area - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 18,717,218 | $ 31,688,544 | $ 44,526,718 | $ 73,903,234 |
Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 18,717,218 | 31,688,544 | 44,526,718 | 73,903,234 |
Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 18,717,218 | 31,688,544 | 44,526,718 | 73,903,234 |
Off-road vehicles [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,852,475 | 5,841,038 | 19,452,160 | 16,295,547 |
Electric Scooters and Electric Self-Balancing Scooters [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 910,657 | 1,270,683 | ||
Overseas [Member] | Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,253,750 | 5,703,050 | 19,955,855 | 15,975,711 |
China [Member] | Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,463,468 | 25,985,494 | 24,570,863 | 57,927,523 |
EV parts [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,438,958 | 25,847,506 | 23,034,841 | 57,607,687 |
EV products [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 515,128 | 769,034 | ||
Products transferred at a point in time [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 18,717,218 | $ 31,688,544 | $ 44,526,718 | $ 73,903,234 |