Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
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 | 77,385,130 | |
Amendment Flag | false | |
Entity Central Index Key | 0001316517 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | 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 | |
City Area Code | (86 - 579) | |
Local Phone Number | 82239856 | |
Entity Address, City or Town | Jinhua | |
Entity Address, Address Line One | Jinhua City Industrial Zone | |
Entity Address, Address Line Two | Zhejiang Province | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 321016 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 132,866,957 | $ 142,078,190 |
Restricted cash | 23,903,418 | 442,445 |
Certificate of deposit | 54,207,258 | |
Accounts receivable (net of allowance for doubtful accounts of $111,481 and $110,269 as of September 30, 2021 and December 31, 2020, respectively) | 43,998,755 | 38,547,137 |
Inventories | 27,346,751 | 19,697,383 |
Notes receivable | 106,514 | 31,404,630 |
Other receivables | 23,754,321 | 1,875,245 |
Prepayments and prepaid expense | 19,371,962 | 13,708,149 |
Advances to suppliers | 12,506,543 | 36,733,182 |
Amount due from the Affiliate Company | 21,742,226 | |
Amount due from related party | 886,989 | |
TOTAL CURRENT ASSETS | 338,062,479 | 307,115,576 |
NON-CURRENT ASSETS | ||
Property, plant and equipment, net | 90,461,708 | 65,402,680 |
Intangible assets, net | 2,770,152 | 3,232,753 |
Land use rights, net | 3,224,185 | 3,257,760 |
Construction in progress | 8,306,311 | 16,317,662 |
Deferred taxes assets | 7,852,209 | 8,964,946 |
Long term investment | 154,878 | 45,958 |
Investment in the Affiliate Company | 28,892,638 | |
Goodwill | 29,963,965 | 29,712,383 |
Other long term assets | 11,946,463 | 32,307,484 |
TOTAL NON-CURRENT ASSETS | 154,679,871 | 188,134,264 |
TOTAL ASSETS | 492,742,350 | 495,249,840 |
CURRENT LIABILITIES | ||
Accounts payable | 26,177,367 | 34,257,935 |
Other payables and accrued expenses | 3,000,136 | 7,218,395 |
Short-term loans | 2,630,000 | |
Notes payable | 371,707 | 92,445 |
Income tax payable | 11,660,654 | 1,313,754 |
Advance receipts | 601,644 | 38,229,242 |
Amount due to related party | 500,000 | 500,000 |
Other current liabilities | 3,682,386 | 2,185,654 |
TOTAL CURRENT LIABILITIES | 48,623,894 | 83,797,425 |
NON-CURRENT LIABILITIES | ||
Deferred taxes liability | 602,435 | 3,483,171 |
Contingent consideration liability | 3,743,000 | |
Other long-term liabilities | 464,634 | 459,580 |
TOTAL NON-CURRENT LIABILITIES | 1,067,069 | 7,685,751 |
TOTAL LIABILITIES | 49,690,963 | 91,483,176 |
STOCKHOLDER’S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 77,462,516 and 77,298,499 shares issued and 77,152,972 and 75,377,555 outstanding at September 30,2021 and December 31,2020, respectively | 77,153 | 75,377 |
Additional paid-in capital | 448,591,602 | 439,549,338 |
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at September 30,2021 and December 31,2020, respectively) | (421,965) | (27,079,900) |
Accumulated other comprehensive loss | (5,195,403) | (8,778,151) |
TOTAL STOCKHOLDERS’ EQUITY | 443,051,387 | 403,766,664 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 492,742,350 | $ 495,249,840 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts (in Dollars) | $ 111,481 | $ 110,269 |
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 | 77,462,516 | 77,298,499 |
Common stock, shares outstanding | 77,152,972 | 75,377,555 |
Restricted portion of accumulated deficit (in Dollars) | $ 4,422,033 | $ 4,422,033 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
REVENUES FROM UNRELATED PARTIES, NET | $ 16,795,712 | $ 18,717,212 | $ 62,647,714 | $ 44,525,756 |
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTIES, NET | 6 | 1,587 | 962 | |
REVENUES, NET | 16,795,712 | 18,717,218 | 62,649,301 | 44,526,718 |
COST OF GOODS SOLD | (14,046,041) | (14,806,322) | (49,447,497) | (35,911,785) |
GROSS PROFIT | 2,749,671 | 3,910,896 | 13,201,804 | 8,614,933 |
OPERATING INCOME (EXPENSE): | ||||
Research and development | (6,747,934) | (987,285) | (31,937,436) | (2,777,426) |
Selling and marketing | (1,290,544) | (2,165,383) | (3,494,927) | (3,807,355) |
General and administrative | (3,733,230) | (3,212,209) | (13,522,925) | (10,186,135) |
Gain on disposal of long-lived assets | 2,238 | 76,159 | 48,255,905 | 13,983,733 |
TOTAL OPERATING EXPENSE | (11,769,470) | (6,288,718) | (699,383) | (2,787,183) |
(LOSS) INCOME FROM OPERATIONS | (9,019,799) | (2,377,822) | 12,502,421 | 5,827,750 |
OTHER INCOME (EXPENSE): | ||||
Interest income | 1,247,544 | 558,059 | 2,750,241 | 1,118,795 |
Interest expense | (63,368) | (788,589) | (267,785) | (2,894,579) |
Change in fair value of contingent consideration | (1,069,000) | 1,794,000 | ||
Government grants | 220,967 | 13,431 | 570,162 | 111,329 |
Gain from sale of equity in the Affiliate Company | 822 | 17,734,733 | ||
Share of loss after tax of the Affiliate Company | (119) | (1,550,568) | (2,584,520) | (5,631,867) |
Other income, net | 442,102 | 988,287 | 4,768,092 | 2,051,272 |
TOTAL OTHER INCOME (EXPENSE), NET | 1,847,948 | (1,848,380) | 22,970,923 | (3,451,050) |
(LOSS) INCOME BEFORE INCOME TAXES | (7,171,851) | (4,226,202) | 35,473,344 | 2,376,700 |
INCOME TAX (EXPENSE) BENEFIT | (696,968) | 2,767,939 | (8,815,409) | (1,354,563) |
NET (LOSS) INCOME | (7,868,819) | (1,458,263) | 26,657,935 | 1,022,137 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment | (116,054) | 8,216,974 | 3,582,748 | 5,171,643 |
COMPREHENSIVE (LOSS) INCOME | $ (7,984,873) | $ 6,758,711 | $ 30,240,683 | $ 6,193,780 |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED (in Shares) | 76,394,573 | 54,112,981 | 75,766,749 | 53,282,066 |
NET (LOSS) INCOME PER SHARE, BASIC AND DILUTED (in Dollars per share) | $ (0.1) | $ (0.03) | $ 0.35 | $ 0.02 |
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, 2019 | $ 52,839 | $ (2,477,965) | $ 259,691,370 | $ (16,685,736) | $ (22,723,581) | $ 217,856,927 |
Balance (in Shares) at Dec. 31, 2019 | 52,839,441 | |||||
Stock issuance and award | $ 10 | 22,290 | 22,300 | |||
Stock issuance and award (in Shares) | 10,000 | |||||
Net income (Loss) | (1,574,646) | (1,574,646) | ||||
Foreign currency translation | (3,523,065) | (3,523,065) | ||||
Balance at Mar. 31, 2020 | $ 52,849 | (2,477,965) | 259,713,660 | (18,260,382) | (26,246,646) | 212,781,516 |
Balance (in Shares) at Mar. 31, 2020 | 52,849,441 | |||||
Stock issuance and award | $ 1,503 | 3,164,925 | 3,166,428 | |||
Stock issuance and award (in Shares) | 1,502,717 | |||||
Net income (Loss) | 4,055,043 | 4,055,043 | ||||
Foreign currency translation | 477,734 | 477,734 | ||||
Balance at Jun. 30, 2020 | $ 54,352 | (2,477,965) | 262,878,585 | (14,205,339) | (25,768,912) | 220,480,721 |
Balance (in Shares) at Jun. 30, 2020 | 54,352,158 | |||||
Stock issuance and award | $ 259 | 870,837 | 871,096 | |||
Stock issuance and award (in Shares) | 258,600 | |||||
Net income (Loss) | (1,458,263) | (1,458,263) | ||||
Foreign currency translation | 8,216,974 | 8,216,974 | ||||
Reversal of reduction in the Affiliate Company’s equity (net off tax effect of $491,400) | (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 | |||||
Balance at Dec. 31, 2020 | $ 75,377 | 439,549,338 | (27,079,900) | (8,778,151) | 403,766,664 | |
Balance (in Shares) at Dec. 31, 2020 | 75,377,555 | |||||
Stock issuance and award | $ 10 | 22,290 | 22,300 | |||
Stock issuance and award (in Shares) | 10,000 | |||||
Net income (Loss) | (6,402,720) | (6,402,720) | ||||
Foreign currency translation | (1,176,013) | (1,176,013) | ||||
Reversal of reduction in the Affiliate Company’s equity (net off tax effect of $491,400) | 2,771,652 | 2,771,652 | ||||
Balance at Mar. 31, 2021 | $ 75,387 | 442,343,280 | (33,482,620) | (9,954,164) | 398,981,883 | |
Balance (in Shares) at Mar. 31, 2021 | 75,387,555 | |||||
Stock issuance and award | $ 239 | 1,374,098 | 1,374,337 | |||
Stock issuance and award (in Shares) | 238,600 | |||||
Net income (Loss) | 40,929,474 | 40,929,474 | ||||
Foreign currency translation | 4,874,815 | 4,874,815 | ||||
Balance at Jun. 30, 2021 | $ 75,626 | 443,717,378 | 7,446,854 | (5,079,349) | 446,160,509 | |
Balance (in Shares) at Jun. 30, 2021 | 75,626,155 | |||||
Stock issuance and award | $ 1,527 | 4,874,224 | 4,875,751 | |||
Stock issuance and award (in Shares) | 1,526,817 | |||||
Net income (Loss) | (7,868,819) | (7,868,819) | ||||
Foreign currency translation | (116,054) | (116,054) | ||||
Balance at Sep. 30, 2021 | $ 77,153 | $ 448,591,602 | $ (421,965) | $ (5,195,403) | $ 443,051,387 | |
Balance (in Shares) at Sep. 30, 2021 | 77,152,972 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) (Parentheticals) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Net off tax effect | $ 491,400 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 26,657,935 | $ 1,022,137 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 6,893,192 | 6,078,070 |
(Reversal) provision of allowance for doubtful accounts | (150,756) | |
Deferred taxes | (11,970) | 1,256,167 |
Share of loss after tax of the Affiliate Company | 2,584,520 | 5,631,867 |
Gain from equity sale in the Affiliate Company | (17,734,733) | |
Gain on disposal of long-live assets | (48,255,905) | (13,983,733) |
Change in fair value of contingent consideration | (1,794,000) | |
Stock based compensation expense | 1,452,381 | 870,471 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,289,150 | 18,165,084 |
Inventories | (7,443,414) | (1,830,827) |
Other receivables and other assets | (17,537,034) | (5,226,968) |
Advances to supplier and prepayments and prepaid expenses | 18,776,708 | (84,089) |
Amount due from the Affiliate Company | 4,178,477 | |
Increase (Decrease) In: | ||
Accounts payable | (4,116,153) | (15,642,931) |
Other payables and accrued liabilities | 7,052,572 | 2,675,156 |
Notes payable | (93,278) | (13,725,855) |
Income tax payable | 8,053,977 | (804,238) |
Net cash used in operating activities | (19,432,052) | (13,365,968) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (10,948,968) | (383,568) |
Prepayments for acquisition of Jiangxi Huiyi | (3,864,346) | |
Payment for construction in progress | (4,048,889) | (1,604,427) |
Proceeds from disposal of long-lived assets | 23,235,758 | 51,872,829 |
Loan to third party | 31,687,637 | (45,958,247) |
Certificate of deposit | (54,100,844) | |
Cash received from sales of equity in the Affiliate Company | 47,608,743 | 42,321,385 |
Long Term Investment | (108,202) | |
Advance receipts of equity transfer | 600,463 | |
Net cash provided by investing activities | 30,061,352 | 46,247,972 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 2,630,000 | 24,163,223 |
Repayments of short-term loans | (50,042,178) | |
Repayments of long-term loans | (285,955) | |
Proceeds from long-term loans | 394,116 | |
Net cash provided by (used in) financing activities | 2,630,000 | (25,770,794) |
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 13,259,300 | 7,111,210 |
Effect of exchange rate changes | 990,440 | 535,314 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 142,520,635 | 16,512,635 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 156,770,375 | 24,159,159 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 132,866,957 | 23,909,159 |
-RESTRICTED CASH AT END OF PERIOD | 23,903,418 | 250,000 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 688,160 | 901,021 |
Interest paid | 17,536 | 644,724 |
SUPPLEMENTAL NON-CASH DISCLOSURES: | ||
Reversal of decrease in investment in the Affiliate Company due to change in its equity (net off tax effect of $491,400) | 2,813,968 | |
Decrease in investment in the Affiliate Company due to change in its equity | 3,057,540 | |
Common stock issued for settlement of payables related to acquisitions (see Note 21) | $ 4,853,451 | $ 3,166,427 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net off tax effect | $ 491,400 | $ 491,400 |
Organization and Principal Acti
Organization and Principal Activities | 9 Months Ended |
Sep. 30, 2021 | |
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) and its wholly-owned subsidiary, Kandi America Investment, LLC (“Kandi Investment”). In March 2021, Zhejiang Kandi Vehicles Co., Ltd. changed its name to Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”). The Company’s organizational chart as of the date of this report is as follows: On July 13, 2021 (the “Signing Date”), Zhejiang Kandi Technologies entered into (i) a Share Transfer Agreement (the “Share Transfer Agreement”) with three individual shareholders of Jiangxi Huiyi, as defined below (the “Transferors”) and (ii) a Supplementary Agreement (the “Supplementary Agreement”) with the Transferors, pursuant to which Zhejiang Kandi Technologies agreed to purchase all the equity interests of Jiangxi Province Huiyi New Energy Co., Ltd., a company organized under the laws of the People’s Republic of China (“Jiangxi Huiyi”). The acquisition is for the purpose of growing the Company’s business through vertical integration. Pursuant to the terms of the Share Transfer Agreement, Zhejiang Kandi Technologies agreed to acquire all the equity interests of Jiangxi Huiyi for paying a purchase price of RMB 50 million (approximately $7.7 million) in cash to the Transferors. The first 50% of the purchase price or RMB 25 million (approximately $3.9 million) was paid on July 19, 2021. The remaining 50% of the purchase price or RMB 25 million (approximately $3.9 million) was paid on October 20, 2021 the acquisition transaction was consummated at October 31, 2021. The Company’s primary business operations consist of designing, developing, manufacturing and commercializing EV products, EV parts, automatic power exchange equipment for pure electric vehicles, off-road vehicles and the dynamic power train system of intelligent transportation. |
Liquidity
Liquidity | 9 Months Ended |
Sep. 30, 2021 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had working capital of $289,438,585 as of September 30, 2021, an increase of $66,120,434 from the working capital of $223,318,151 as of December 31, 2020. As of September 30, 2021 and December 31, 2020, the Company’s cash and cash equivalents were $132,866,957 and $142,078,190, respectively. The Company’s restricted cash was $23,903,418 and $442,445, respectively. As of September 30, 2021, the Company had multiple certificates of deposit with a total amount of $54,207,258. These certificates of deposit have an annual interest rate from 3.7% to 3.99% which can be transferred when necessary without any penalty or any loss of interest and principal. On March 10, 2020, a real estate repurchase agreement (the “Repurchase Agreement”) was entered into by and between Zhejiang Kandi Technologies 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 Zhejiang Kandi Technologies for RMB 525 million ($81 million). Payments to Zhejiang Kandi Technologies shall be made in three installments as the Company disclosed in a Current Report on Form 8-K filed with the SEC on March 9, 2020. In addition, if Zhejiang Kandi Technologies achieves certain milestones that contribute to local economic development, the Company will be eligible for tax rebates that could total up to RMB 500 million ($77 million) over the next eight years. On May 22, 2020, the Company received the first payment of RMB 244 million (approximately $38 million) under the Repurchase Agreement. On July 9, 2020, the Company received the second payment of RMB 119 million (approximately $18 million) under the Repurchase Agreement. By the end of March 2021, the Company finished relocating production and offices to the new industrial park and vacated the old factory property. In early April, the relevant Economic Zone authorities inspected the vacated land and determined that it met all stipulated conditions. On May 20, 2021, the Company received the final portion of repurchase payment of RMB 150 million (approximately $23 million) under the Repurchase Agreement. In addition, there was RMB 12 million (approximately $2 million) reward for moving out of the old location has been submitted to the government for approval and will be collected after the approval. On February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer all of its remaining 22% equity interests in the Affiliate Company to Geely for a total consideration of RMB 308 million (approximately $48 million). On March 16, 2021, the Company received the first half of the equity transfer payment of RMB 154,000,000 (approximately $24 million). On September 10, 2021, the Company received the second half of the equity transfer payment of RMB 154,000,000 (approximately $24 million). If the transfer of the remaining 22% equity interests of the Affiliate Company took place on January 1, 2020, the net income for the nine months ended September 30, 2021 and 2020 would have been $11.5 million and $6.6 million, respectively. 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. Currently the Company has sufficient cash in hand to meet the existing operational needs, but the credit line is retained which can be utilized timely when the Company has special capital needs. The PRC subsidiaries do not have any short-term bank loans and the US subsidiaries has $2,630,000 short-term bank loans as of September 30, 2021. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 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, 2020 (the “2020 Form 10-K”). |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2021 | |
Principles of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 4 - PRINCIPLES OF CONSOLIDATION The Company’s consolidated financial statements reflect the accounts of the Company and its ownership interests in the following subsidiaries: (1) Continental Development Limited (“Continental”), a wholly-owned subsidiary of the Company, incorporated under the laws of Hong Kong; (2) Zhejiang Kandi Technologies, 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 Zhejiang Kandi Technologies (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 Zhejiang Kandi Technologies for the operation and management of Kandi New Energy and put his shares of Kandi New Energy into escrow. As a result, Zhejiang Kandi Technologies 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 Zhejiang Kandi Technologies, 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 Zhejiang Kandi Technologies, 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, USA. (8) China Battery Exchange Technology Co., Ltd. (“China Battery Exchange”) and its subsidiaries, a wholly-owned subsidiary of Zhejiang Kandi Technologies, incorporated under the laws of the PRC. (9) Kandi Investment, a wholly-owned subsidiary of SC Autosports formed under the laws of the State of Texas, USA. Equity Method Investees The Company’s consolidated net income also includes the Company’s proportionate share of the net income or loss of its equity method investment in the Affiliate Company, in which the Company owned 22% equity interest until March 9. 2021. On February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer all of its remaining 22% equity interests in the Affiliate Company to Geely. As the equity transfer was completed on March 9, 2021, the Company recorded 22% of the Affiliate Company’s loss for the period from January 1, 2021 to March 9, 2021 and recognized the gain from equity sale of $17.7 million during the first quarter of 2021. As of September 30, 2021, the amount due from the Affiliate Company has been reclassed to accounts receivable of $17.7 million and other receivables of $2.2 million. All intra-entity profits and losses with regard to the Company’s equity method investees have been eliminated. |
Use of Estimates
Use of Estimates | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Use Of Estimates [Abstract] | |
USE OF ESTIMATES | NOTE 5 - USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s consolidated financial statements primarily include, but are not limited to, allowances for doubtful accounts, lower of cost and net realizable value of inventory, assessment for impairment of long-lived assets and intangible assets, valuation of deferred tax assets, change in fair value of contingent consideration, determination of share-based compensation expenses as well as fair value of stock warrants. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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 2020 Form 10-K. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023.The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its consolidated financial statements, particularly its recognition of allowances for accounts receivable. |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the three-month period ended September 30, 2021, 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 2021 2020 2021 2020 Customer A 14 % 11 % 11 % 7 % Customer B 19 % - 9 % - For the nine-month period ended September 30, 2021, 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 2021 2020 2021 2020 Customer A 17 % 13 % 11 % - Customer C 11 % - - 7 % (b) Suppliers For the three-month period ended September 30, 2021, 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 2021 2020 2021 2020 Zhejiang Kandi Supply Chain Management Co., Ltd. 36 % 32 % 15 % 9 % For the nine -month period ended September 30, 2021, 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 2021 2020 2021 2020 Zhejiang Kandi Supply Chain Management Co., Ltd. 51 % 48 % 15 % 9 % |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2021 | |
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 900,000 options and 8,131,332 warrants were excluded from the calculation of diluted net earnings per share, for the three-month and nine-month period ended September 30, 2021. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 10 - ACCOUNTS RECEIVABLE Accounts receivable are summarized as follows: September 30, December 31, 2021 2020 Accounts receivable $ 44,110,236 $ 38,657,406 Less: allowance for doubtful accounts (111,481 ) (110,269 ) Accounts receivable, net $ 43,998,755 $ 38,547,137 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: September 30, December 31, 2021 2020 Raw material $ 11,709,071 $ 7,512,259 Work-in-progress 8,008,632 5,488,532 Finished goods 7,629,048 6,696,592 Inventories $ 27,346,751 $ 19,697,383 * approximately $2.3 million of inventory of off-roads and EVs held by SC Autosports were pledged as collateral for the $450,000 short-term loan. |
Notes Receivable
Notes Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | NOTE 12 - NOTES RECEIVABLE As of September 30, 2021, there was $106,514 notes receivable from unrelated parties. As of December 31, 2020, there was $31,404,630 notes receivable from unrelated parties with a 6% annual interest rate, among which $6.1 million was collected on January 15, 2021, $6.9 million was collected on January 27, 2021, $9.2 million was collected on April 20, 2021 and $9.2 million was collected on June 22, 2021. |
Other Receivables
Other Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 13 - OTHER RECEIVABLES As of September 30, 2021, the Company had $ 23,754,321 other receivables, among which $11.1 million were lease deposits, $7.4 million were loan to Jiangxi Huiyi with a 5.45% annual interest rate, which will be due on September 8, 2022 and $3.3 million were interest receivables. As of December 31, 2020, the Company had $ 1,875,245 |
Advances to Suppliers
Advances to Suppliers | 9 Months Ended |
Sep. 30, 2021 | |
Advances To Suppliers Are Summarized [Abstract] | |
ADVANCES TO SUPPLIERS | NOTE 14 - ADVANCES TO SUPPLIERS Advances to suppliers are summarized as follows: September 30, December 31, 2021 2020 Advance payment for inventory purchase (1) $ 10,801,708 $ 13,107,630 Advance payment for R & D (2) - 19,365,947 Others 1,704,835 4,259,605 Total $ 12,506,543 $ 36,733,182 (1) This amount represents the advance payment in order to lock up the purchase price of the inventory. (2) This amount presents the advance payment to a third party for designing a new EV model, as well as related research and development and consulting works. The Company entered into a research and development contract with a third party on December 1, 2020 with total contract amount of $38.3 million, and advance payment of $23.0 million as per the contract. This advance payment will be expensed progressively according to the progress of the R & D project. In the first three quarters of 2021, $18.2 million expense was incurred accordingly. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 15 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plants and equipment as of September 30, 2021 and December 31, 2020, consisted of the following: September 30, December 31, 2021 2020 At cost: Buildings* $ 37,527,432 $ 18,924,734 Machinery and equipment 75,904,787 67,893,378 Office equipment 1,232,758 1,138,870 Motor vehicles and other transport equipment 1,069,191 587,785 Molds and others 12,946,031 12,752,789 128,680,199 101,297,556 Less : Accumulated depreciation (38,218,491 ) (35,894,876 ) Property, plant and equipment, net $ 90,461,708 $ 65,402,680 * approximately $10.9 million of production line building structures were recognized as fixed assets during the second quarter of 2021 due to completion of relocation process and readiness in working condition for their intended use. The Company’s Jinhua factory completed the relocation to new industrial park in April 2021. The new location covers an area of more than 57,000 square meters and a construction area of more than 98,000 square meters. The Company’s off-road vehicles, EV battery packs, electric scooters battery packs, smart battery swap system and some EV parts are manufactured in the Jinhua factory. Having the above mentioned production capacity, Jinhua factory owns the above production facilities. The Company’s EV products are manufactured in the Hainan factory. Currently, Hainan factory has production capacity with an annual output (three shifts) of 100,000 units of various models of EV products and owns the above facilities. . Depreciation expenses for the three months ended September 30, 2021 and 2020 were $2,221,175 and $1,795,124, respectively. Depreciation expenses for the nine months ended September 30, 2021 and 2020 were $5,987,730 and $5,325,289, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 16 - 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: September 30, December 31, Remaining 2021 2020 Gross carrying amount: Trade name 0.25 years $ 492,235 $ 492,235 Customer relations 0.25 years 304,086 304,086 Patent 3.75-5.42 years 4,925,117 4,871,547 5,721,438 5,667,868 Less : Accumulated amortization Trade name $ (477,856 ) $ (439,798 ) Customer relations (295,203 ) (271,691 ) Patent (2,178,227 ) (1,723,626 ) (2,951,286 ) (2,435,115 ) Intangible assets, net $ 2,770,152 $ 3,232,753 The aggregate amortization expenses for those intangible assets were $165,467 and $156,040 for the three months ended September 30, 2021 and 2020, respectively. The aggregate amortization expenses for those intangible assets were $496,362 and $463,743 for the nine months ended September 30, 2021 and 2020, respectively. Amortization expenses for the next five years and thereafter are as follows: Three months ended December 31, 2021 $ 165,467 Years ended December 31, 2022 582,510 2023 579,772 2024 579,772 2025 513,295 Thereafter 349,336 Total $ 2,770,152 |
Land Use Rights, Net
Land Use Rights, Net | 9 Months Ended |
Sep. 30, 2021 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS, NET | NOTE 17 - LAND USE RIGHTS, NET The Company’s land use rights consist of the following: September 30, December 31, 2021 2020 Cost of land use rights $ 4,069,148 $ 4,024,889 Less: Accumulated amortization (844,963 ) (767,129 ) Land use rights, net $ 3,224,185 $ 3,257,760 The amortization expenses for the three months ended September 30, 2021 and 2020, were $23,093 and $65,229, respectively. The amortization expenses for the nine months ended September 30, 2021 and 2020, were $69,265 and $225,941, respectively. Amortization expenses for the next five years and thereafter is as follows: Three months ended December 31, 2021 $ 23,087 Years ended December 31, 2022 92,349 2023 92,349 2024 92,349 2025 92,349 Thereafter 2,831,702 Total $ 3,224,185 |
Other Long Term Assets
Other Long Term Assets | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
OTHER LONG TERM ASSETS | NOTE 18 - OTHER LONG TERM ASSETS Other long term assets as of September 30, 2021 and December 31, 2020, consisted of the following: September 30, December 31, 2021 2020 Long term deferred assets $ - $ 3,706,560 Prepayments for land use right (i) 4,298,451 4,319,305 Land and properties with certificates cancelled (ii) - 13,728,557 Prepayments for new product molds - 6,663,909 Right - of - use asset(iii) 3,436,310 3,496,993 Prepayments for acquisition (iv) 3,871,947 - Others 339,755 392,160 Total other long term asset $ 11,946,463 $ 32,307,484 (i) As of September September September September (ii) As of December 31, 2020, the Company’s other long term asset included net value of land of Jinhua facility’s old location with certificates cancelled of $6,095,310 and net value of properties (or buildings/housing) of Jinhua facility’s old location with certificates cancelled of $7,633,247, respectively. In the second quarter of 2021, the land and property of Jinhua facility’s old location has been written off. The land amortization expense of Jinhua facility’s old location for the three months ended September September September September (iii) As of September September September (iv) On July 13, 2021 (the “Signing Date”), Zhejiang Kandi Technologies entered into (i) a Share Transfer Agreement (the “Share Transfer Agreement”) with three individual shareholders of Jiangxi Huiyi, as defined below (the “Transferors”) and (ii) a Supplementary Agreement (the “Supplementary Agreement”) with the Transferors, pursuant to which Zhejiang Kandi Technologies agreed to purchase all the equity interests of Jiangxi Province Huiyi New Energy Co., Ltd., a company organized under the laws of the People’s Republic of China (“Jiangxi Huiyi”). The acquisition is for the purpose of growing the Company’s business through vertical integration.Pursuant to the Share Transfer Agreement, Zhejiang Kandi Technologies agreed to acquire all the equity interests of Jiangxi Huiyi for paying a purchase price of RMB 50 million (approximately $7.7 million) in cash to the Transferors. Zhejiang Kandi Technologies paid 50% of the cash portion of the purchase price, RMB 25 million (approximately $3.9 million) on July 19, 2021. The remaining 50% of the purchase price or RMB 25 million (approximately $3.9 million) was paid on October 20, 2021. The acquisition transaction was consummated on October 31, 2021. |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 19 - 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%. High and New Technology Enterprise (“HNTE”) company’s applicable CIT rate is 15%. Zhejiang Kandi Technologies, Jinhua Ankao and Kandi Hainan qualify as HNTE companies in the PRC, and are entitled to pay a reduced income tax rate of 15% for the years presented within the validity period. A HNTE Certificate is valid for three years. An entity may re-apply for an HNTE certificate when the prior certificate expires. Zhejiang Kandi Technologies has successfully re-applied for such certificates in December 2020. Jinhua Ankao has been qualified as HNTE since 2018. Kandi Hainan has been qualified as HNTE since 2020. Therefore no records for renewal are available. The applicable CIT rate of each of the Company’s other subsidiaries, Kandi New Energy and Yongkang Scrou is 25%. The Company’s tax provision or benefit from income taxes for interim periods is determined using an estimate of our 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 Company’s effective tax rate is favorably affected by a super-deduction for qualified research and development costs and adversely affected by non-deductible expenses such as stock rewards for non-US employees, and part of entertainment expenses. The Company records valuation allowances against the deferred tax assets associated with losses and other timing differences for which we 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 , 2021 and 2020 were a tax expense of 24.85% on a reported income before taxes of approximately $35.5 million, a tax expense of 56.99% on a reported income before taxes of approximately $2.4 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 , 2021 and 2020 was tax expense of $8,815,409 and tax expense of $1,354,563, 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, 2021, 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, 2021, 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 , 2021, the Company has no accrued interest or penalties related to uncertain tax positions. The aggregate NOLs in tax year 2020 was $21.3 million deriving from entities in the PRC, Hong Kong and U.S. The aggregate NOLs in tax year 2019 was $9.6 million deriving from entities in the PRC and Hong Kong. The NOLs will start to expire from 2026 if they are not used. The cumulative net operating loss in the PRC can be carried forward for five years in general, and ten years for entities qualify HNTE treatment, to offset future net profits for income tax purposes. The Company has $0.8 million cumulative net operating loss in U.S. to carry forward as of September , 2021 with indefinite carryforward period. The cumulative net operating loss in Hong Kong of $0.1 million can be carried forward without an expiration date as well. (b) Tax Holiday Effect For the nine months ended September , 2021 and 2020, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the nine months ended September , 2021 and 2020. The combined effects of income tax expense exemptions and reductions available to the Company for the nine months ended September , 2021 and 2020 are as follows: Nine Months Ended September 30, 2021 2020 Tax benefit (holiday) credit $ 5,745,354 $ 1,669,668 Basic net income per share effect $ 0.08 $ 0.03 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 20 - 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%. During October 2020, land use right of gross value of $3.5 million was acquired from the government as the new site of Jinhua Facility’s relocation as per the Repurchase Agreement. This lease was wholly prepaid when the land use right was acquired. See NOTE 18 for more details. As of September 30, 2021 and 2020, the Company’s operating lease right-of-use assets (grouped in other long term assets on the balance sheet) was $3,436,310 and $3,496,993, respectively. For the three months ended September 30, 2021, the Company’s operating lease cost was $17,499. For the nine months ended September 30, 2021, the Company’s operating lease cost was $100,493. Supplemental information related to operating leases was as follows: Nine months ended Cash payments for operating leases $ 100,493 |
Contingent Consideration Liabil
Contingent Consideration Liability | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
CONTINGENT CONSIDERATION LIABILITY | NOTE 21 - 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. For the period from January 1, 2020 to June 30, 2021, Kandi Smart Battery Swap achieved its net profit target. Accordingly, the KSBS Shareholders received 1,233,068 shares of Kandi’s restrictive common stock or 20.83% 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. 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. For the year ended December 31, 2020, SC Autosports partially achieved its third year pre-tax profit target. As the gap between third year’s pretax profit and pre-tax profit target is less than 20%, 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, 2021 and December 31, 2020, the Company’s contingent consideration liability was $0 and $3,743,000, respectively. |
Stock Award
Stock Award | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK AWARD | NOTE 22 - 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. 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. On April 30, 2021, 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, 2021 and 2020, 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, 2021 and 2020, the Company recognized $1,452,381 and $870,471 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, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY | NOTE 23 - EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY The Company’s condensed consolidated net income (loss) includes the Company’s proportionate share of the net income or loss of the Company’s equity method investees. When the Company records its proportionate share of net income (loss) in such investees, it increases equity income (loss) – net in the Company’s consolidated statements of income and the Company’s carrying value in that investment. Conversely, when the Company records its proportionate share of a net loss in such investees, it decreases equity income (loss) – net in the Company’s consolidated statements of income (loss) and the Company’s carrying value in that investment. All intra-entity profits and losses with the Company’s equity method investees have been eliminated. On February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer all of its remaining 22% equity interests in the Affiliate Company to Geely for a total consideration of RMB 308 million (approximately $47.0 million). Zhejiang Provincial Administration for Market Regulation recorded the update of the ownership of Fengsheng on March 9, 2021. On March 16, 2021, the Company received the first half of the equity transfer payment of RMB 154,000,000 (approximately $23.5 million). On September 10, 2021, the Company received the second half of the equity transfer payment of RMB 154,000,000 (approximately $24 million). The Company accounted for its investments in the Affiliate Company under the equity method of accounting. As the equity transfer was completed at March 9, 2021, the Company recorded 22% of the Affiliate Company’s loss for the period until completion of equity transfer during the first quarter of 2021. The Company’s equity method investments in the Affiliate Company for the nine months ended September 30, 2021 and 2020 are as follows: Nine Months Ended September 30, 2021 2020 Investment in the Affiliate Company, beginning of the period, $ 28,892,638 $ 47,228,614 Investment decreased in 2021 (47,702,387 ) - Gain from equity sale 17,734,733 - Reversal of prior year reduction in the equity of the Affiliate Company* 3,312,023 (3,144,213 ) Company’s share in net (loss) income of Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 and nine months ended September 30, 2020 (2,684,110 ) (5,561,258 ) Non-controlling interest 99,590 (76,189 ) Prior year unrealized profit realized - 5,580 Subtotal (2,584,520 ) (5,631,867 ) Exchange difference 347,513 989,592 Investment in Affiliate Company, end of the period $ - $ 39,442,126 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 24 - 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 $3,097,558 (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 until December 2021. 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, 2021 and December 31, 2020, 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 on 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 sought 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, that motion was granted in September 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. This action was transferred to the New York federal court in September 2020, Kandi moved to dismiss in March 2021, and that motion was granted in October 2021, but the time to appeal has yet to run. 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. In December 2020, a putative securities class action was filed against Kandi and certain of its current officers in the United States District Court for the Eastern District of New York. The complaint generally alleges violations of the federal securities laws based on claims made in a report issued by Hindenburg Research in November 2020, and seeks damages on behalf of a putative class of shareholders who purchased or acquired Kandi’s securities prior to March 15, 2019. This action remains pending. 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, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 25 - 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 2021 2020 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 7,060,320 $ 9,253,750 China 9,735,392 9,463,468 Total $ 16,795,712 $ 18,717,218 Major products EV parts $ 3,166,740 $ 8,438,958 EV products 328,772 515,128 Off-road vehicles 6,848,448 8,852,475 Electric Scooters, Electric Self-Balancing Scooters and associated parts 6,275,645 910,657 Battery exchange equipment and Battery exchange service 176,107 - Total $ 16,795,712 $ 18,717,218 Timing of revenue recognition Products transferred at a point in time $ 16,795,712 $ 18,717,218 Total $ 16,795,712 $ 18,717,218 Nine Months Ended 2021 2020 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 21,108,327 $ 19,955,855 China 41,540,974 24,570,863 Total $ 62,649,301 $ 44,526,718 Major products EV parts $ 16,215,586 $ 23,034,841 EV products 1,061,078 769,034 Off-road vehicles 17,940,647 19,452,160 Electric Scooters, Electric Self-Balancing Scooters and associated parts 26,671,006 1,270,683 Battery exchange equipment and Battery exchange service 760,984 - Total $ 62,649,301 $ 44,526,718 Timing of revenue recognition Products transferred at a point in time $ 62,649,301 $ 44,526,718 Total $ 62,649,301 $ 44,526,718 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 26 - SUBSEQUENT EVENTS Pursuant to the terms of the Share Transfer Agreement signed on July 13, 2021 between Zhejiang Kandi Technologies and the Transferors, Zhejiang Kandi Technologies agreed to acquire all the equity interests of Jiangxi Huiyi for a purchase price of RMB 50 million (approximately $7.7 million) in cash to the Transferors. Zhejiang Kandi Technologies paid 50% of the purchase price, RMB 25 million (approximately $3.9 million) on July 19, 2021. The remaining 50% of the purchase price or RMB 25 million (approximately $3.9 million) was paid on October 20, 2021. The acquisition transaction was consummated on October 31, 2021.. |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 2021 2020 Customer A 14 % 11 % 11 % 7 % Customer B 19 % - 9 % - Sales Trade Receivable Nine Months Nine Months Ended Ended September 30, September 30, September 30, December 31, Major Customers 2021 2020 2021 2020 Customer A 17 % 13 % 11 % - Customer C 11 % - - 7 % |
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 2021 2020 2021 2020 Zhejiang Kandi Supply Chain Management Co., Ltd. 36 % 32 % 15 % 9 % Purchases Accounts Payable Nine Months Nine Months Ended Ended September 30, September 30, September 30, December 31, Major Suppliers 2021 2020 2021 2020 Zhejiang Kandi Supply Chain Management Co., Ltd. 51 % 48 % 15 % 9 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | September 30, December 31, 2021 2020 Accounts receivable $ 44,110,236 $ 38,657,406 Less: allowance for doubtful accounts (111,481 ) (110,269 ) Accounts receivable, net $ 43,998,755 $ 38,547,137 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, December 31, 2021 2020 Raw material $ 11,709,071 $ 7,512,259 Work-in-progress 8,008,632 5,488,532 Finished goods 7,629,048 6,696,592 Inventories $ 27,346,751 $ 19,697,383 * approximately $2.3 million of inventory of off-roads and EVs held by SC Autosports were pledged as collateral for the $450,000 short-term loan. |
Advances to Suppliers (Tables)
Advances to Suppliers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Advances To Suppliers Are Summarized [Abstract] | |
Schedule of advances to suppliers | September 30, December 31, 2021 2020 Advance payment for inventory purchase (1) $ 10,801,708 $ 13,107,630 Advance payment for R & D (2) - 19,365,947 Others 1,704,835 4,259,605 Total $ 12,506,543 $ 36,733,182 (1) This amount represents the advance payment in order to lock up the purchase price of the inventory. (2) This amount presents the advance payment to a third party for designing a new EV model, as well as related research and development and consulting works. The Company entered into a research and development contract with a third party on December 1, 2020 with total contract amount of $38.3 million, and advance payment of $23.0 million as per the contract. This advance payment will be expensed progressively according to the progress of the R & D project. In the first three quarters of 2021, $18.2 million expense was incurred accordingly. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | September 30, December 31, 2021 2020 At cost: Buildings* $ 37,527,432 $ 18,924,734 Machinery and equipment 75,904,787 67,893,378 Office equipment 1,232,758 1,138,870 Motor vehicles and other transport equipment 1,069,191 587,785 Molds and others 12,946,031 12,752,789 128,680,199 101,297,556 Less : Accumulated depreciation (38,218,491 ) (35,894,876 ) Property, plant and equipment, net $ 90,461,708 $ 65,402,680 * approximately $10.9 million of production line building structures were recognized as fixed assets during the second quarter of 2021 due to completion of relocation process and readiness in working condition for their intended use. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill | September 30, December 31, Remaining 2021 2020 Gross carrying amount: Trade name 0.25 years $ 492,235 $ 492,235 Customer relations 0.25 years 304,086 304,086 Patent 3.75-5.42 years 4,925,117 4,871,547 5,721,438 5,667,868 Less : Accumulated amortization Trade name $ (477,856 ) $ (439,798 ) Customer relations (295,203 ) (271,691 ) Patent (2,178,227 ) (1,723,626 ) (2,951,286 ) (2,435,115 ) Intangible assets, net $ 2,770,152 $ 3,232,753 |
Schedule of amortization expenses | Three months ended December 31, 2021 $ 165,467 Years ended December 31, 2022 582,510 2023 579,772 2024 579,772 2025 513,295 Thereafter 349,336 Total $ 2,770,152 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | September 30, December 31, 2021 2020 Cost of land use rights $ 4,069,148 $ 4,024,889 Less: Accumulated amortization (844,963 ) (767,129 ) Land use rights, net $ 3,224,185 $ 3,257,760 |
Schedule of amortization expense | Three months ended December 31, 2021 $ 23,087 Years ended December 31, 2022 92,349 2023 92,349 2024 92,349 2025 92,349 Thereafter 2,831,702 Total $ 3,224,185 |
Other Long Term Assets (Tables)
Other Long Term Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of other long term assets | September 30, December 31, 2021 2020 Long term deferred assets $ - $ 3,706,560 Prepayments for land use right (i) 4,298,451 4,319,305 Land and properties with certificates cancelled (ii) - 13,728,557 Prepayments for new product molds - 6,663,909 Right - of - use asset(iii) 3,436,310 3,496,993 Prepayments for acquisition (iv) 3,871,947 - Others 339,755 392,160 Total other long term asset $ 11,946,463 $ 32,307,484 |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense exemptions and reductions | Nine Months Ended September 30, 2021 2020 Tax benefit (holiday) credit $ 5,745,354 $ 1,669,668 Basic net income per share effect $ 0.08 $ 0.03 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of information related to operating leases | Nine months ended Cash payments for operating leases $ 100,493 |
Equity Method Investment in t_2
Equity Method Investment in the Affiliate Company (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | Nine Months Ended September 30, 2021 2020 Investment in the Affiliate Company, beginning of the period, $ 28,892,638 $ 47,228,614 Investment decreased in 2021 (47,702,387 ) - Gain from equity sale 17,734,733 - Reversal of prior year reduction in the equity of the Affiliate Company* 3,312,023 (3,144,213 ) Company’s share in net (loss) income of Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 and nine months ended September 30, 2020 (2,684,110 ) (5,561,258 ) Non-controlling interest 99,590 (76,189 ) Prior year unrealized profit realized - 5,580 Subtotal (2,584,520 ) (5,631,867 ) Exchange difference 347,513 989,592 Investment in Affiliate Company, end of the period $ - $ 39,442,126 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic area | Three Months Ended 2021 2020 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 7,060,320 $ 9,253,750 China 9,735,392 9,463,468 Total $ 16,795,712 $ 18,717,218 Major products EV parts $ 3,166,740 $ 8,438,958 EV products 328,772 515,128 Off-road vehicles 6,848,448 8,852,475 Electric Scooters, Electric Self-Balancing Scooters and associated parts 6,275,645 910,657 Battery exchange equipment and Battery exchange service 176,107 - Total $ 16,795,712 $ 18,717,218 Timing of revenue recognition Products transferred at a point in time $ 16,795,712 $ 18,717,218 Total $ 16,795,712 $ 18,717,218 Nine Months Ended 2021 2020 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 21,108,327 $ 19,955,855 China 41,540,974 24,570,863 Total $ 62,649,301 $ 44,526,718 Major products EV parts $ 16,215,586 $ 23,034,841 EV products 1,061,078 769,034 Off-road vehicles 17,940,647 19,452,160 Electric Scooters, Electric Self-Balancing Scooters and associated parts 26,671,006 1,270,683 Battery exchange equipment and Battery exchange service 760,984 - Total $ 62,649,301 $ 44,526,718 Timing of revenue recognition Products transferred at a point in time $ 62,649,301 $ 44,526,718 Total $ 62,649,301 $ 44,526,718 |
Organization and Principal Ac_2
Organization and Principal Activities (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Oct. 20, 2021USD ($) | Oct. 20, 2021CNY (¥) | Jul. 19, 2021USD ($) | Jul. 19, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | |
Accounting Policies [Abstract] | ||||||
Purchase price | $ 3.9 | ¥ 25 | $ 3.9 | ¥ 25 | $ 7.7 | ¥ 50 |
Purchase price of percentage | 50.00% | 50.00% | 50.00% | 50.00% |
Liquidity (Details)
Liquidity (Details) | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | Mar. 10, 2020USD ($) | Mar. 10, 2020CNY (¥) | May 20, 2021USD ($) | May 20, 2021CNY (¥) | Feb. 18, 2021USD ($) | Feb. 18, 2021CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Sep. 30, 2020USD ($) | Sep. 10, 2021USD ($) | Sep. 10, 2021CNY (¥) | Mar. 16, 2021USD ($) | Mar. 16, 2021CNY (¥) | Mar. 09, 2021 | Dec. 31, 2020USD ($) | Jan. 02, 2020 |
Liquidity (Details) [Line Items] | ||||||||||||||||||||
Working capital | $ 289,438,585 | $ 223,318,151 | ||||||||||||||||||
Working capital increasing | 66,120,434 | |||||||||||||||||||
Cash and cash equivalents | 132,866,957 | $ 23,909,159 | 142,078,190 | |||||||||||||||||
Restricted cash | 23,903,418 | 250,000 | 442,445 | |||||||||||||||||
Certificate of deposit | 54,207,258 | |||||||||||||||||||
Real estate repurchase agreement, description | On March 10, 2020, a real estate repurchase agreement (the “Repurchase Agreement”) was entered into by and between Zhejiang Kandi Technologies 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 Zhejiang Kandi Technologies for RMB 525 million ($81 million). | On March 10, 2020, a real estate repurchase agreement (the “Repurchase Agreement”) was entered into by and between Zhejiang Kandi Technologies 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 Zhejiang Kandi Technologies for RMB 525 million ($81 million). | ||||||||||||||||||
Eligible for tax rebates | $ 77,000,000 | ¥ 500,000,000 | ||||||||||||||||||
First payment under repurchase agreement | $ 38,000,000 | ¥ 244,000,000 | ||||||||||||||||||
Second payment under repurchase agreement | $ 18,000,000 | ¥ 119,000,000 | ||||||||||||||||||
Final payment under repurchase agreement | $ 23,000,000 | ¥ 150,000,000 | ||||||||||||||||||
Additional value of repurchase | 2,000,000 | ¥ 12,000,000 | ||||||||||||||||||
Remaining equity interests Percentage | 22.00% | |||||||||||||||||||
Short-term bank loans | 2,630,000 | |||||||||||||||||||
First Half [Member] | ||||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||||
Equity transfer payment | $ 24,000,000 | ¥ 154,000,000 | ||||||||||||||||||
Second Half [Member] | ||||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||||
Equity transfer payment | $ 24,000,000 | ¥ 154,000,000 | ||||||||||||||||||
Geely [Member] | ||||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||||
Remaining equity interests Percentage | 22.00% | 22.00% | 22.00% | |||||||||||||||||
Total consideration | $ 48,000,000 | ¥ 308,000,000 | ||||||||||||||||||
Net income | $ 11,500,000 | $ 6,600,000 | ||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||||
Percentage of annual certificate of deposit | 3.70% | |||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||||
Percentage of annual certificate of deposit | 3.99% |
Principles of Consolidation (De
Principles of Consolidation (Details) - USD ($) $ in Millions | Mar. 09, 2021 | Sep. 30, 2021 | Feb. 18, 2021 | Jan. 02, 2020 |
Principles of Consolidation (Details) [Line Items] | ||||
Percentage of equity interest | 22.00% | |||
Gain from equity sale (in Dollars) | $ 17.7 | |||
Accounts receivable (in Dollars) | $ 17.7 | |||
Other receivables (in Dollars) | $ 2.2 | |||
Geely [Member] | ||||
Principles of Consolidation (Details) [Line Items] | ||||
Percentage of equity interest | 22.00% | 22.00% | ||
Kandi New Energy [Member] | Zhejiang Kandi Technologies [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 Hainan [Member] | Zhejiang Kandi Technologies [Member] | ||||
Principles of Consolidation (Details) [Line Items] | ||||
Percentage owned in subsidiary | 90.00% | |||
Kandi Hainan [Member] | Kandi New Energy [Member] | ||||
Principles of Consolidation (Details) [Line Items] | ||||
Percentage owned in subsidiary | 10.00% | |||
Equity Method Investees [Member] | ||||
Principles of Consolidation (Details) [Line Items] | ||||
Percentage of equity interest | 22.00% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
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, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Customer A [Member] | Sales [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 14.00% | 11.00% | 17.00% | 13.00% | ||
Customer A [Member] | Trade Receivable [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 11.00% | 7.00% | 11.00% | |||
Customer B [Member] | Sales [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 19.00% | |||||
Customer B [Member] | Trade Receivable [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 9.00% | |||||
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 | 7.00% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of concentration percentage - Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Purchases [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration percentage | 36.00% | 32.00% | 51.00% | 48.00% | ||
Accounts Payable [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration percentage | 15.00% | 9.00% | 15.00% | 9.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) | 9 Months Ended |
Sep. 30, 2021shares | |
Option [Member] | |
Earnings (Loss) Per Share (Details) [Line Items] | |
Excluded from the calculation of diluted net earnings per share | 900,000 |
Warrants [Member] | |
Earnings (Loss) Per Share (Details) [Line Items] | |
Excluded from the calculation of diluted net earnings per share | 8,131,332 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable | $ 44,110,236 | $ 38,657,406 |
Less: allowance for doubtful accounts | (111,481) | (110,269) |
Accounts receivable, net | $ 43,998,755 | $ 38,547,137 |
Inventories (Details)
Inventories (Details) | Sep. 30, 2021USD ($) |
Off-roads [Member] | |
Inventories (Details) [Line Items] | |
Inventory | $ 2,300,000 |
SC Autosports [Member] | |
Inventories (Details) [Line Items] | |
Short-term loan | $ 450,000 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of inventories [Abstract] | ||
Raw material | $ 11,709,071 | $ 7,512,259 |
Work-in-progress | 8,008,632 | 5,488,532 |
Finished goods | 7,629,048 | 6,696,592 |
Inventories | $ 27,346,751 | $ 19,697,383 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Sep. 30, 2021 | Jun. 22, 2021 | Apr. 20, 2021 | Jan. 27, 2021 | Jan. 15, 2021 | Dec. 31, 2020 |
Notes Receivable (Details) [Line Items] | ||||||
Notes receivable from unrelated parties | $ 31,404,630 | |||||
Rate of annual interest | 5.45% | |||||
Notes Receivable One [Member] | ||||||
Notes Receivable (Details) [Line Items] | ||||||
Notes receivable from unrelated parties | $ 106,514 | |||||
Notes Receivable [Member] | ||||||
Notes Receivable (Details) [Line Items] | ||||||
Rate of annual interest | 6.00% | |||||
Notes Receivable Two [Member] | ||||||
Notes Receivable (Details) [Line Items] | ||||||
Notes receivable from unrelated parties | $ 9,200,000 | $ 9,200,000 | $ 6,900,000 | $ 6,100,000 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Other receivables | $ 23,754,321 | $ 1,875,245 |
Lease deposits | 11,100,000 | |
Loan amount | $ 7,400,000 | |
Annual interest rate | 5.45% | |
Interest receivables | $ 3,300,000 |
Advances to Suppliers (Details)
Advances to Suppliers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 01, 2020 | |
Advances To Suppliers Are Summarized [Abstract] | ||
Total contract amount | $ 38.3 | |
Advance payment | $ 23 | |
Expense incurred | $ 18.2 |
Advances to Suppliers (Detail_2
Advances to Suppliers (Details) - Schedule of advances to suppliers - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of advances to suppliers [Abstract] | |||
Advance payment for inventory purchase (1) | [1] | $ 10,801,708 | $ 13,107,630 |
Advance payment for R & D (2) | [2] | 19,365,947 | |
Others | 1,704,835 | 4,259,605 | |
Total | $ 12,506,543 | $ 36,733,182 | |
[1] | This amount represents the advance payment in order to lock up the purchase price of the inventory. | ||
[2] | This amount presents the advance payment to a third party for designing a new EV model, as well as related research and development and consulting works. The Company entered into a research and development contract with a third party on December 1, 2020 with total contract amount of $38.3 million, and advance payment of $23.0 million as per the contract. This advance payment will be expensed progressively according to the progress of the R & D project. In the first three quarters of 2021, $18.2 million expense was incurred accordingly. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)m² | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)m²shares | Sep. 30, 2020USD ($) | |
Property, Plant and Equipment, Net (Details) [Line Items] | ||||
Production capacity with an annual output (in Shares) | shares | 100,000 | |||
Depreciation expenses | $ | $ 2,221,175 | $ 1,795,124 | $ 5,987,730 | $ 5,325,289 |
New Location [Member] | ||||
Property, Plant and Equipment, Net (Details) [Line Items] | ||||
Area (in Square Meters) | 57,000 | 57,000 | ||
Construction [Member] | ||||
Property, Plant and Equipment, Net (Details) [Line Items] | ||||
Area (in Square Meters) | 98,000 | 98,000 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plants and equipment - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | |
At cost: | |||
Property, plant and equipment, gross | $ 128,680,199 | $ 101,297,556 | |
Less : Accumulated depreciation | (38,218,491) | (35,894,876) | |
Property, plant and equipment, net | 90,461,708 | 65,402,680 | |
Buildings [Member] | |||
At cost: | |||
Property, plant and equipment, gross | [1] | 37,527,432 | 18,924,734 |
Machinery and equipment [member | |||
At cost: | |||
Property, plant and equipment, gross | 75,904,787 | 67,893,378 | |
Office equipment [Member] | |||
At cost: | |||
Property, plant and equipment, gross | 1,232,758 | 1,138,870 | |
Motor vehicles and other transport equipment [Member] | |||
At cost: | |||
Property, plant and equipment, gross | 1,069,191 | 587,785 | |
Molds and Others [Member] | |||
At cost: | |||
Property, plant and equipment, gross | $ 12,946,031 | $ 12,752,789 | |
[1] | approximately $10.9 million of production line building structures were recognized as fixed assets during the second quarter of 2021 due to completion of relocation process and readiness in working condition for their intended use. |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses for intangible assets | $ 165,467 | $ 156,040 | $ 496,362 | $ 463,743 |
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, 2021 | Dec. 31, 2020 | |
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 | $ 5,721,438 | $ 5,667,868 |
Less: Accumulated amortization | (2,951,286) | (2,435,115) |
Intangible assets, net | $ 2,770,152 | 3,232,753 |
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 | 3 months | |
Gross carrying value of intangible assets | $ 492,235 | 492,235 |
Less: Accumulated amortization | $ (477,856) | (439,798) |
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 | 3 months | |
Gross carrying value of intangible assets | $ 304,086 | 304,086 |
Less: Accumulated amortization | (295,203) | (271,691) |
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 | 4,925,117 | 4,871,547 |
Less: Accumulated amortization | $ (2,178,227) | $ (1,723,626) |
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 | 3 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 | 5 years 5 months 1 day |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of amortization expenses - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of amortization expenses [Abstract] | ||
Three months ended December 31, 2021 | $ 165,467 | |
2022 | 582,510 | |
2023 | 579,772 | |
2024 | 579,772 | |
2025 | 513,295 | |
Thereafter | 349,336 | |
Total | $ 2,770,152 | $ 3,232,753 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Land Use Rights [Abstract] | ||||
Amortization expenses | $ 23,093 | $ 65,229 | $ 69,265 | $ 225,941 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - Schedule of land use rights - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of land use rights [Abstract] | ||
Cost of land use rights | $ 4,069,148 | $ 4,024,889 |
Less: Accumulated amortization | (844,963) | (767,129) |
Land use rights, net | $ 3,224,185 | $ 3,257,760 |
Land Use Rights, Net (Details_2
Land Use Rights, Net (Details) - Schedule of amortization expense | Sep. 30, 2021USD ($) |
Schedule of amortization expense [Abstract] | |
Three months ended December 31, 2021 | $ 23,087 |
Years ended December 31, | |
2022 | 92,349 |
2023 | 92,349 |
2024 | 92,349 |
2025 | 92,349 |
Thereafter | 2,831,702 |
Total | $ 3,224,185 |
Other Long Term Assets (Details
Other Long Term Assets (Details) ¥ in Millions | Oct. 20, 2021USD ($) | Oct. 20, 2021CNY (¥) | Jul. 19, 2021USD ($) | Jul. 19, 2021CNY (¥) | Jul. 13, 2021USD ($) | Jul. 13, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Other Long Term Assets (Details) [Line Items] | ||||||||||||
Prepayments for land use right | [1] | $ 4,298,451 | $ 4,298,451 | $ 4,319,305 | ||||||||
Amortization expense | 23,093 | $ 65,229 | 69,265 | $ 225,941 | ||||||||
Land and Properties Description | (ii)As of December 31, 2020, the Company’s other long term asset included net value of land of Jinhua facility’s old location with certificates cancelled of $6,095,310 and net value of properties (or buildings/housing) of Jinhua facility’s old location with certificates cancelled of $7,633,247, respectively. | |||||||||||
Depreciation expense | 0 | |||||||||||
Newly acquired land use right | 3,436,310 | 3,436,310 | $ 3,450,958 | |||||||||
Amortization expense | 17,499 | 52,493 | ||||||||||
Purchase price | $ 3,900,000 | ¥ 25 | $ 3,900,000 | ¥ 25 | $ 7,700,000 | ¥ 50 | ||||||
Hainan Facility [Member] | ||||||||||||
Other Long Term Assets (Details) [Line Items] | ||||||||||||
Prepayments for land use right | 4,298,451 | 4,298,451 | $ 4,319,305 | |||||||||
Amortization expense | 22,741 | $ 21,262 | 68,216 | $ 63,098 | ||||||||
Jinhua Facility [Member] | ||||||||||||
Other Long Term Assets (Details) [Line Items] | ||||||||||||
Amortization expense | 0 | 67,898 | ||||||||||
Depreciation expense | 151,230 | |||||||||||
Disposal of long-live asset | $ 48,000,000 | $ 48,000,000 | ||||||||||
Zhejiang Kandi Technologies [Member] | ||||||||||||
Other Long Term Assets (Details) [Line Items] | ||||||||||||
Cash paid percentage | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||
[1] | As of September 30, 2021 and December 31, 2020, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,298,451 and $4,319,305, respectively. As of September 30, 2021, the land use right of Hainan was not recognized since the land certificate is still in process. The amortization expense for the three months ended September 30, 2021 and 2020 were $22,741 and $21,262, respectively. The amortization expense for the nine months ended September 30, 2021 and 2020 were $68,216 and $63,098, respectively. |
Other Long Term Assets (Detai_2
Other Long Term Assets (Details) - Schedule of other long term assets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of other long term assets [Abstract] | |||
Long term deferred assets | $ 3,706,560 | ||
Prepayments for land use right | [1] | $ 4,298,451 | 4,319,305 |
Land and properties with certificates cancelled | [2] | 13,728,557 | |
Prepayments for new product molds | 6,663,909 | ||
Right - of - use asset | [3] | 3,436,310 | 3,496,993 |
Prepayments for acquisition | [4] | 3,871,947 | |
Others | 339,755 | 392,160 | |
Total other long term asset | $ 11,946,463 | $ 32,307,484 | |
[1] | As of September 30, 2021 and December 31, 2020, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,298,451 and $4,319,305, respectively. As of September 30, 2021, the land use right of Hainan was not recognized since the land certificate is still in process. The amortization expense for the three months ended September 30, 2021 and 2020 were $22,741 and $21,262, respectively. The amortization expense for the nine months ended September 30, 2021 and 2020 were $68,216 and $63,098, respectively. | ||
[2] | As of December 31, 2020, the Company’s other long term asset included net value of land of Jinhua facility’s old location with certificates cancelled of $6,095,310 and net value of properties (or buildings/housing) of Jinhua facility’s old location with certificates cancelled of $7,633,247, respectively. In the second quarter of 2021, the land and property of Jinhua facility’s old location has been written off. The land amortization expense of Jinhua facility’s old location for the three months ended September 30, 2021 were $0. The land amortization expense of Jinhua facility’s old location for the nine months ended September 30, 2021 were $67,898. The property depreciation expense of Jinhua facility’s old location for the three months ended September 30, 2021 were $0. The property depreciation expense of Jinhua facility’s old location for the nine months ended September 30, 2021 were $151,230. The Company’s Jinhua facility moved out of the old location and completed the relocation process in April 2021. The relevant Economic Zone authorities inspected the vacated land and determined that the relocation was formally completed by meeting all stipulated conditions. In the second quarter of 2021, the property of Jinhua facility’s old location has been fully disposed, and the related $48 million gain on disposal of long-live asset was recognized. | ||
[3] | As of September 30, 2021 and December 31, 2020, the Company’s operating lease right-of-use assets in other long term asset included net value of newly acquired land use right of Jinhua facility of $3,436,310 and $3,450,958, respectively. The amortization expense for the three months ended September 30, 2021 were $17,499. The amortization expense for the nine months ended September 30, 2021 were $52,493. | ||
[4] | On July 13, 2021 (the “Signing Date”), Zhejiang Kandi Technologies entered into (i) a Share Transfer Agreement (the “Share Transfer Agreement”) with three individual shareholders of Jiangxi Huiyi, as defined below (the “Transferors”) and (ii) a Supplementary Agreement (the “Supplementary Agreement”) with the Transferors, pursuant to which Zhejiang Kandi Technologies agreed to purchase all the equity interests of Jiangxi Province Huiyi New Energy Co., Ltd., a company organized under the laws of the People’s Republic of China (“Jiangxi Huiyi”). The acquisition is for the purpose of growing the Company’s business through vertical integration.Pursuant to the Share Transfer Agreement, Zhejiang Kandi Technologies agreed to acquire all the equity interests of Jiangxi Huiyi for paying a purchase price of RMB 50 million (approximately $7.7 million) in cash to the Transferors. Zhejiang Kandi Technologies paid 50% of the cash portion of the purchase price, RMB 25 million (approximately $3.9 million) on July 19, 2021. The remaining 50% of the purchase price or RMB 25 million (approximately $3.9 million) was paid on October 20, 2021. The acquisition transaction was consummated on October 31, 2021. |
Taxes (Details)
Taxes (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxes (Details) [Line Items] | ||||
Applicable corporate income tax rate | 25.00% | |||
Reduced income tax rate | 15.00% | |||
Corporate income tax | 25.00% | 25.00% | ||
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, 2021 and 2020 were a tax expense of 24.85% on a reported income before taxes of approximately $35.5 million, a tax expense of 56.99% on a reported income before taxes of approximately $2.4 million, respectively. | |||
Income tax provision expense | $ 8,815,409 | $ 1,354,563 | ||
Subsidiaries [Member] | ||||
Taxes (Details) [Line Items] | ||||
Corporate income tax | 25.00% | |||
PRC [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operating loss carried forward term | 5 years | |||
U.S. [Member] | ||||
Taxes (Details) [Line Items] | ||||
Cumulative net operating loss | $ 800,000 | |||
Hong Kong [Member] | ||||
Taxes (Details) [Line Items] | ||||
Cumulative net operating loss | $ 100,000 | |||
High and New Technology Enterprise [Member] | ||||
Taxes (Details) [Line Items] | ||||
Applicable corporate income tax rate | 15.00% | |||
HNTE Treatment [Member] | PRC [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operating loss carried forward term | 10 years | |||
PRC, Hong Kong and U.S. [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operation loss | $ 21,300,000 | $ 9,600,000 |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax expense exemptions and reductions - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of income tax expense exemptions and reductions [Abstract] | ||
Tax benefit (holiday) credit | $ 5,745,354 | $ 1,669,668 |
Basic net income per share effect | $ 0.08 | $ 0.03 |
Leases (Details)
Leases (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases (Details) [Line Items] | ||||
Operating right of use asset | $ 3,436,310 | $ 3,436,310 | $ 3,496,993 | |
Operating lease cost | $ 17,499 | $ 100,493 | ||
Lease [Member] | ||||
Leases (Details) [Line Items] | ||||
Land use rights gross | $ 3,500,000 | |||
Corporate Office Lease [Member] | SC Autosports [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 $12,000 from May 2020 to April 2021. | |||
Discount rate | 4.25% | 4.25% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of information related to operating leases | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Schedule of information related to operating leases [Abstract] | |
Cash payments for operating leases | $ 100,493 |
Contingent Consideration Liab_2
Contingent Consideration Liability (Details) | Jul. 01, 2018USD ($)shares | Jan. 03, 2018USD ($)shares | Sep. 30, 2021CNY (¥)shares | Dec. 31, 2019 | Dec. 31, 2018shares | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 02, 2020 |
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Number of total shares | 5,919,674 | |||||||
Percentage of acquisition of equity | 22.00% | |||||||
Contingent consideration liability (in Dollars) | $ | $ 0 | $ 3,743,000 | ||||||
SC Autosports [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Contingent consideration liability, description | 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. For the year ended December 31, 2020, SC Autosports partially achieved its third year pre-tax profit target. As the gap between third year’s pretax profit and pre-tax profit target is less than 20%, 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. | |||||||
Percentage of acquisition of equity | 100.00% | |||||||
Percentage of outstanding shares | 0.30% | |||||||
Number of shares, granted | 343,938 | |||||||
SC Autosports [Member] | Restricted Stock [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Number of shares issued | 171,969 | |||||||
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. | 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. For the period from January 1, 2020 to June 30, 2021, Kandi Smart Battery Swap achieved its net profit target. Accordingly, the KSBS Shareholders received 1,233,068 shares of Kandi’s restrictive common stock or 20.83% of the total equity consideration (i.e. | ||||||
Number of shares issued | 2,959,837 | |||||||
Value of shares issued (in Dollars) | $ | $ 20,700,000 | |||||||
KSBS Shareholders [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Number of total shares | 5,919,674 | |||||||
Total equity consideration, percentage | 20.83% | |||||||
Total shares of equity consideration | 5,919,674 | |||||||
Net profit (in Yuan Renminbi) | ¥ | ¥ 50,000,000 | |||||||
Number of shares | 1,233,068 | |||||||
Equity consideration percentage | 20.83% | |||||||
Transfer Agreement [Member] | SC Autosports [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Number of shares issued | 1,547,721 | |||||||
Transfer Agreement [Member] | SC Autosports [Member] | Restricted Stock [Member] | ||||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||||
Value of shares issued (in Dollars) | $ | $ 800,000 |
Stock Award (Details)
Stock Award (Details) - USD ($) | May 15, 2020 | May 09, 2020 | Apr. 30, 2021 | Apr. 30, 2019 | Jan. 29, 2019 | Apr. 18, 2018 | Sep. 26, 2016 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Stock Award (Details) [Line Items] | |||||||||||
Expenses for stock compensation (in Dollars) | $ 22,925 | $ 22,925 | $ 1,452,381 | $ 870,471 | |||||||
2008 Plan [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Total number of shares of common stock grant to key employees | 250,000 | ||||||||||
Shares granted to certain management members and employees as compensation | 238,600 | ||||||||||
Mr. Henry Yu [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Restricted shares of common stock compensate | 5,000 | ||||||||||
Mr. Jerry Lewin [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Restricted shares of common stock compensate | 5,000 | ||||||||||
Ms. Kewa Luo [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Shares of common stock compensate | 5,000 | ||||||||||
Ms Zhu Xiaoying [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Shares of common stock compensate | 10,000 | ||||||||||
Mr. Jehn Ming Lim [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Shares of common stock compensate | 6,000 | ||||||||||
Management Members And Employees [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Shares granted to certain management members and employees as compensation | 238,600 | 238,600 | 238,600 |
Equity Method Investment in t_3
Equity Method Investment in the Affiliate Company (Details) $ in Millions | Sep. 10, 2021USD ($) | Sep. 10, 2021CNY (¥) | Mar. 16, 2021USD ($) | Mar. 16, 2021CNY (¥) | Mar. 09, 2021 | Feb. 18, 2021USD ($) | Feb. 18, 2021CNY (¥) | Jan. 02, 2020 |
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Percentage of equity interests | 22.00% | |||||||
First Half [Member] | ||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Equity transfer payment | $ 23.5 | ¥ 154,000,000 | ||||||
Second Half [Member] | ||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Equity transfer payment | $ 24 | ¥ 154,000,000 | ||||||
Equity Transfer Agreement [Member] | ||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Percentage of equity interests | 22.00% | 22.00% | ||||||
Equity interest in affiliate | $ 47 | ¥ 308,000,000 | ||||||
Affiliate [Member] | ||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Percentage of equity interests | 22.00% |
Equity Method Investment in t_4
Equity Method Investment in the Affiliate Company (Details) - Schedule of equity method investments - Affiliated Company [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment in the Affiliate Company, beginning of the period, | $ 28,892,638 | $ 47,228,614 |
Investment decreased in 2021 | (47,702,387) | |
Gain from equity sale | 17,734,733 | |
Reversal of prior year reduction in the equity of the Affiliate Company | 3,312,023 | (3,144,213) |
Company’s share in net (loss) income of Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 and nine months ended September 30, 2020 | (2,684,110) | (5,561,258) |
Non-controlling interest | 99,590 | (76,189) |
Prior year unrealized profit realized | 5,580 | |
Subtotal | (2,584,520) | (5,631,867) |
Exchange difference | 347,513 | 989,592 |
Investment in Affiliate Company, end of the period | $ 39,442,126 |
Equity Method Investment in t_5
Equity Method Investment in the Affiliate Company (Details) - Schedule of equity method investments (Parentheticals) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Affiliated Company [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Affiliate ownership | 22.00% | 22.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) ¥ in Millions | Mar. 15, 2013USD ($) | 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 $3,097,558 (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 | $ 3,097,558 | ¥ 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 $2.9 million and demanded that the guarantor bear the liability for compensation. |
Segment Reporting (Details)
Segment Reporting (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenues by geographic area - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 16,795,712 | $ 18,717,218 | $ 62,649,301 | $ 44,526,718 |
Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 16,795,712 | 18,717,218 | 62,649,301 | 44,526,718 |
Timing of revenue recognition [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 16,795,712 | 18,717,218 | 62,649,301 | 44,526,718 |
Off-road vehicles [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,848,448 | 8,852,475 | 17,940,647 | 19,452,160 |
Electric Scooters, Electric Self-Balancing Scooters and associated parts [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,275,645 | 910,657 | 26,671,006 | 1,270,683 |
Battery exchange equipment and Battery exchange service [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 176,107 | 760,984 | ||
Products transferred at a point in time [Member] | Timing of revenue recognition [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 16,795,712 | 18,717,218 | 62,649,301 | 44,526,718 |
Overseas [Member] | Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,060,320 | 9,253,750 | 21,108,327 | 19,955,855 |
China [Member] | Primary Geographical Markets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,735,392 | 9,463,468 | 41,540,974 | 24,570,863 |
EV parts [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,166,740 | 8,438,958 | 16,215,586 | 23,034,841 |
EV products [Member] | Major products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 328,772 | $ 515,128 | $ 1,061,078 | $ 769,034 |
Subsequent Events (Details)
Subsequent Events (Details) ¥ in Millions, $ in Millions | Jul. 13, 2021USD ($) | Jul. 13, 2021CNY (¥) | Oct. 20, 2021USD ($) | Oct. 20, 2021CNY (¥) | Jul. 19, 2021USD ($) | Jul. 19, 2021CNY (¥) |
Subsequent Events (Details) [Line Items] | ||||||
Purchase price amount | $ 3.9 | ¥ 25 | ||||
Percentage of remaining cash portion | 50.00% | 50.00% | ||||
Jiangxi Huiyi [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Purchase price amount | $ 7.7 | ¥ 50 | ||||
Zhejiang Kandi Technologies [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Purchase price amount | $ 3.9 | ¥ 25 | ||||
Percentage of obligated cash portion | 50.00% | 50.00% |