| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
6 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a)
Economic and Political Risks The
Company’s operations are conducted in China. As a result, the Company’s business, financial condition and results
of operations may be influenced by the political, economic and legal environments in China, and by the general state of the Chinese
economy. In addition, the Company’s earnings are subject to movements in foreign currency exchange rates when transactions
are denominated in Renminbi (“RMB”), which is the Company’s functional currency. Accordingly, the Company’s
operating results are affected by changes in the exchange rate between the U.S. dollar and the RMB. The
Company’s operations in China are subject to special considerations and significant risks not typically associated with
companies in North America and Western Europe. These include risks associated with, among others, the political, economic and
legal environment and foreign currency exchange restrictions. The Company’s performance may be adversely affected by changes
in the political and social conditions in China, and by changes in governmental policies with respect to laws and regulations,
anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. (b)
Fair Value of Financial Instruments ASC
820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes
the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These
tiers include: Level
1 — defined as observable inputs such as quoted prices in active markets; Level
2 — defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;
and Level
3 — defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop
its own assumptions. The
Company’s financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes
receivable, other receivables, accounts payable, other payables and accrued liabilities, short-term bank loans, notes payable,
and warrants. The
carrying value of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, other receivables, accounts
payable, other payables and accrued liabilities, and notes payable approximate fair value because of the short-term nature of
these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented
due to the brief maturities and because the interest rates on these borrowings approximate those that would have been available
for loans of similar remaining maturities and risk profiles. As the carrying amounts are reasonable estimates of fair value, these
financial instruments are classified within Level 1 of the fair value hierarchy. The Company identified notes payable as Level
2 instruments due to the fact that the inputs to valuation are primarily based upon readily observable pricing information. The
balance of notes payable, which were measured and disclosed at fair value, was $8,198,193 and $92,445 as of December 31, 2021
and December 31, 2020, respectively. Contingent
consideration related to the acquisitions of Kandi Smart Battery Swap, SC Autosports and Jiangxi Huiyi, which is accounted for
as liabilities, are measured at each reporting date for their fair value using Level 3 inputs. The fair value of contingent consideration
was $ 7,812,000 and $3,743,000 as of December 31, 2021 and December 31, 2020, respectively. Also see Note 20. (c)
Cash and Cash Equivalents The
Company considers highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. (d)
Restricted cash Restricted
cash primarily represents bank deposits for letter of credit and bank acceptance bill. As
of December 31, 2021 and December 31, 2020, the Company’s restricted cash was $39,452,564 and $ 442,445, respectively. (e)
Inventories Inventories
are stated at the lower of cost or net realizable value (market value). The cost of raw materials is determined on the basis of
weighted average. The cost of finished goods is determined on the basis of weighted average and comprises direct materials, direct
labor and an appropriate proportion of overhead. Net
realizable value is based on estimated selling prices less selling expenses and any further costs expected to be incurred for
completion. Adjustments to reduce the cost of inventory to net realizable value are made, if required, for estimated excess, obsolescence,
or impaired balances. (f)
Accounts Receivable and Due from the Affiliate Company and Related Parties Accounts
receivable are recognized and carried at net realizable value. The Company establishes provision for doubtful accounts when there
is objective evidence that the Company may not be able to collect amounts due. Management reviews the adequacy of the provision
for doubtful accounts on an ongoing basis, using historical collection trends and individual account analysis. The provision is
based on management’s best estimates of specific losses on individual customer exposures, as well as historical trends of
collections. Account balances are charged off against the provision after all means of collection have been exhausted and the
likelihood of collection is not probable. An allowance for doubtful accounts is recorded for periods in which the Company
determines credit losses are probable. In order to measure expected credit losses of the accounts receivable, the Company’s
policy is to adopt aging method by reviewing and analyzing the aging of each customer, especially those with aged balances without
any movement, and then assessing their financial conditions and payment plans. On top of the aging analysis, the Company also
analyzed the nature and background of the customers, and analyzed the probability of recovery of the receivables. Accounts
are written off after exhaustive collection efforts. If accounts receivable are to be provided for, or written off, they are recognized
in the consolidated statement of operations within the operating expenses line item. If accounts receivable previously written
off is recovered in a later period or when facts subsequently become available to indicate that the amount provided as an allowance
for doubtful accounts was incorrect, an adjustment is made to restate allowance for doubtful accounts. Net
amount due from the Affiliate Company represent net trade receivable from the Affiliate Company, loan lending to the Affiliate
Company as well as interest related to such loan. As of December 31, 2020, the Company’s net amount due from the Affiliate
Company includes $19.8 million net trade receivable and $2.2 million loan interest. As of December 31, 2021, the amount due from the
Affiliate Company has been reclassed to accounts receivable of $18.0 million and other receivables of $2.3 million. As
of December 31, 2021 and December 31, 2020, amount due from related party was $0 and $886,989, respectively. As of December 31,
2021 and December 31, 2020, amount due to related party was $0 and $500,000, respectively. As of December 31, 2021 and December 31, 2020, credit terms with the
Company’s customers were typically 60 to 180 days after delivery. Besides, the Company has a credit term with Fengsheng, a former
affiliate of the Company which it disposed the ownership of Fengsheng in March 2021, that allows Fengsheng to repay the receivable amount
when it receives the subsidy from the government. The Company has agreements or purchase orders signed with the customers which state
the payment term based on the scale of sales and background of the customers. The terms and agreements signed are legally enforceable.
As of December 31, 2021 and 2020, the Company had $3,053,277 and $110,269 allowance for doubtful accounts, as per the Company management’s
judgment based on their best knowledge. The Company conducts quarterly assessments of the state of the Company’s outstanding receivables
and reserves any allowance for doubtful accounts if it becomes necessary. The
table below summarized the aging of the accounts receivable as of December 31, 2021 and 2020.
Aging of accountings receivable as of December 31, 2021 Outstanding balance Subsequent
collection (1)
1 to 90 days $ 19,978,931 $ 11,040,304
91 to 180 days 8,317,622 3,868,362
Over 180 days 1,815,817 646,224
Over one year 13,960,230 * 50,881
Over two years 11,876,982 * -
Total $ 55,949,582 $ 15,605,771
Aging of accountings receivable as of December 31, 2020 Outstanding balance Subsequent
collection (1)
1 to 90 days $ 28,298,032 $ 23,894,359
91 to 180 days 7,084,537 6,567,082
Over 180 days 3,164,568 2,847,605
Over one year - -
Over two years 110,269 -
Total $ 38,657,406 $ 33,309,046
(1) the Company reviewed the subsequent collection until March
10, 2022.
* The
increase of accounts receivable as of December 31, 2021 compared to the amount as of December 31, 2020 was due to the acquisition of
Jiangxi Huiyi, and the disposal of ownership of Fengsheng which the amount due from Fengsheng was recorded under “Amount due from
the Affiliate Company” prior to the disposal. (g)
Notes Receivable Notes receivable represent short-term loans to third parties with maximum
terms of six months. Interest income is recognized according to each agreement between a borrower and the Company on an accrual basis.
For notes receivable with banks, the interest rates are determined by banks. For notes receivable with other parties, the interest rates
are based on agreements between the parties. If notes receivable are paid back, that transaction will be recognized in the relevant year.
If notes receivable are not paid back, or are written off, that transaction will be recognized in the relevant year if default is probable,
reasonably assured, and the loss can be reasonably estimated. The Company will recognize income if the written-off loan is recovered at
a future date. In case of any foreclosure proceedings or legal actions, the Company provides an accrual for the related foreclosure and
litigation expenses. The Company also receives notes receivable from the Affiliate Company and other parties to settle accounts receivable.
If the Company decides to discount notes receivable for the purpose of receiving immediate cash, the current discount rate is approximately
in the range of 2.1% to 2.7% annually depends on different banks. As of December 31, 2021 and 2020, the Company had notes receivable from
unrelated parties of $323,128 and $31,404,630, respectively, which notes receivable typically mature within six months. (h)
Property, Plants and Equipment, net Property,
Plants and equipment are carried at cost less accumulated depreciation. Depreciation is calculated over the asset’s estimated
useful life, using the straight-line method. Leasehold improvements are amortized over the life of the asset or the term of the
lease, whichever is shorter. Estimated useful lives are as follows:
Buildings 20-30 years
Machinery and equipment 10 years
Office equipment 5 years
Motor vehicles 5 years
Molds 5 years The
costs and related accumulated depreciation of assets sold or otherwise retired are eliminated from the Company’s accounts
and any gain or loss is included in the statements of income. The cost of maintenance and repairs is charged to expenses as incurred,
whereas significant renewals and betterments are capitalized. (i)
Land Use Rights, net Land
in China is owned by the government and land ownership rights cannot be sold to an individual or to a private company. However,
the Chinese government grants the user a “land use right” to use the land. The land use rights granted to the Company
are amortized using the straight-line method over a term of fifty years. The
Company elected the practical expedient that permits the Company to carry forward the accounting treatment for land use rights
in existing agreements as of the effective date of ASC 842. Upon
the adoption of ASC 842 on January 1, 2019, the new land use rights agreements signed beyond the effective date are identified
as operating lease right-of-use assets, whereas the existing agreements as of the effective date are separately disclosed as “Land
use rights” in the Company’s consolidated balance sheets. (j)
Accounting for the Impairment of Long-Lived Assets The
Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject
to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in ASC Topic 360
Impairment or Disposal of Long-Lived Assets. The carrying value of a long-lived asset is considered impaired when the anticipated
undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is
recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market
value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses
on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for disposal
costs. The
Company recognized no impairment loss for years ended December 31, 2021 and 2020. (k)
Revenue Recognition The
Company adopted ASC Topic 606 Revenue from Contracts with Customers with a date of the initial application of January 1, 2018
using the modified retrospective method. As a result, the Company has changed its accounting policy for revenue recognition. The
impact of the adoption of ASC Topic 606 on the Company’s consolidated financial statements is not material. The
Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which
it expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts
with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii)
determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction
price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance
obligation. The
Company generates revenue through EV parts and off-road vehicles. The revenue is recognized at a point in time once the Company
has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to
the customer when the performance obligation is fulfilled, usually at the time of delivery, at the net sales price (transaction
price). Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.
Shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods are accounted for
as fulfillment costs rather than separate performance obligations and recorded as sales and marketing expenses. See
Note 26 “Segment Reporting” for disaggregation of revenue by reporting segments. The Company believes this disaggregation
best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. (l)
Research and Development Expenditures
relating to the development of new products and processes, including improvements to existing products as well as research and
development and consulting work performed by third parties, are expensed as incurred. Research and development expenses were $38,971,986
and $7,246,312 for the years ended December 31, 2021 and 2020, respectively. (m)
Government Grants Government
grants are recognized when there is reasonable assurance that: (1) the recipient will comply with the relevant conditions and
(2) the grant will be received. After initial recognition, government grants are recognized in profit or loss on a systematic
basis that mirrors the manner in which the Company recognizes the underlying costs for which the grant is intended to compensate.
If some, or all, of a government grant becomes repayable (e.g. due to non-fulfillment of the grant conditions), then the repayment
is accounted for prospectively as a change in accounting estimate. The effect of the change in estimate is recognized in the period
in which management concludes that it is no longer reasonably assured that all of the grant conditions will be met. A corresponding
financial liability is recognized for the amount of the repayment. For
the years ended December 31, 2021 and 2020, $1,233,192 and $1,130,262, respectively, were received by the Company’s subsidiaries
from the Chinese government. (n)
Income Taxes The
Company accounts for income tax using an asset and liability approach, which allows for the recognition of deferred tax benefits
in future years. Under the asset and liability approach, deferred income taxes are recognized for differences between the financial
reporting and tax bases of assets and liabilities at enacted tax rates in effect for the years in which the differences are expected
to reverse. The accounting for deferred tax calculation represents the Company management’s best estimate of the most likely
future tax consequences of events that have been recognized in our financial statements or tax returns and related future anticipation.
A valuation allowance is recorded to reduce the deferred tax assets to an amount that is more likely than not to be realized after
considering all available evidence, both positive and negative. (o)
Foreign Currency Translation The
accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company
is the Renminbi (RMB). Capital accounts of the consolidated financial statements are translated into United States dollars from
RMB at their historical exchange rates when the capital transactions occurred. Assets
and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average
exchange rate of the reporting period, which rates are obtained from the website: http://www.oanda.com
December 31, December 31,
2021 2020
Period end RMB: USD exchange rate 6.3588 6.5277
Average RMB: USD exchange rate 6.4499 6.9001 (p)
Comprehensive Income (Loss) Comprehensive
income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions
to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components
of comprehensive income (loss) are required to be reported in a financial statement that is presented with the same prominence
as other financial statements. Comprehensive income (loss) includes net income (loss) and the foreign currency translation changes. (q)
Segments In
accordance with ASC 280-10, Segment Reporting, the Company’s chief operating decision maker (“CODM”), identified
as the Company’s Chief Executive Officer, relies upon the consolidated results of operations as a whole when making decisions
about allocating resources and assessing the performance of the Company. As a result of the assessment made by CODM, the Company
has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting.
As the Company’s long-lived assets are substantially located in the PRC, no geographical segments are presented. (r)
Stock Option Expenses The
Company’s stock option expenses are recorded in accordance with ASC 718 and ASC 505. The
fair value of stock options is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption
is based on the historical volatility of the Company’s common stock. The expected life assumption is primarily based on
the expiration date of the option. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury
yield curve in effect at the time of grant. The
recognition of stock option expenses is based on awards expected to vest. ASC standards require forfeitures to be estimated at
the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from those estimates. The
stock-based option expenses for the years ended December 31, 2021 and 2020 were $0 and $0, respectively. There were no forfeitures
estimated during the reporting period. (s)
Goodwill The
Company allocates goodwill from business combinations to reporting units based on the expectation that the reporting unit is to
benefit from the business combination. The Company evaluates its reporting units on an annual basis and, if necessary, reassigns
goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an
annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair
value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business
climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting
unit. Application
of the goodwill impairment test requires judgments, including the identification of reporting units, assignment of assets and
liabilities to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of each reporting
unit. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired.
If the more likely than not threshold is met, the Company performs a quantitative impairment test. The
Company applies the reporting unit criteria in ASC 350-20 to the components to determine if the reporting unit should be identified
one level below the operating segment. Each component will be evaluated to determine if: (a) it is a business (as defined in ASC
805), (b) discrete financial information is available and (c) the operating results are regularly reviewed by the segment manager(s).
If the components of a specific operating segment meet these criteria, they might be deemed to be separate reporting units. However,
if they have similar economic characteristics (which is a matter of judgment based on individual facts and circumstances), these
components must be aggregated into one reporting unit. There are three reporting units under the goodwill impairment analysis,
namely 1) SC Autosports, 2) Jinhua An kao and Yongkang Scrou, and 3) Jiangxi Huiyi. As
of December 31, 2021 and 2020, the Company performed goodwill impairment testing at the reporting unit level and determined that
no impairment was necessary. (t)
Intangible Assets Intangible
assets consist of patent, trade names and customer relations associated with the purchase price from the allocation of Yongkang
Scrou, Kandi Smart Battery Swap and Jiangxi Huiyi. Such assets are being amortized over their estimated useful lives. Intangible
assets were amortized as of December 31, 2021. The amortization expenses for intangible assets were $906,618 and $ 625,629 for
the years ended December 31, 2021 and 2020, respectively. (u)
Accounting for Sale of Common Stock and Warrants In
connection of the issuance of common stocks, the Company may issue options or warrants to purchase common stock. Warrants classified
as equity are initially recorded at fair value and subsequent changes in fair value are not recognized as long as the warrants
continue to be classified as equity. (v)
Consolidation of variable interest entities In
accordance with accounting standards regarding consolidation of variable interest entities, or VIEs, VIEs are generally entities
that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity
holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the
primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial
reporting purposes. The Company has concluded, based on the contractual
arrangements, that as of December 31, 2021 and for the past two years that are covered by this report, Kandi New Energy had been a VIE
and that the Company’s wholly-owned subsidiary, Zhejiang Kandi Technologies, absorbs all risk of loss from the activities of this
VIE, thereby enabling the Company, through Zhejiang Kandi Technologies, to receive all of its expected residual returns. Therefore, although
Kandi Technologies only owns 50% equity in Kandi New Energy, for accounting purpose, Kandi Technologies is the sole beneficiary and shall
be wholly included in the consolidation. Additionally,
because Kandi New Energy is under common control with other entities, the consolidated financial statements have been prepared
as if the transactions had occurred retroactively as to the beginning of the reporting period of these consolidated financial
statements. Control and common control are defined under the
accounting standards as “an individual, enterprise, or immediate family members who hold more than 50 percent of the voting ownership
interest of each entity.” Because the owners collectively owned 100% of Kandi New Energy, and had agreed to vote their interests
in concert since the establishment of each of these three companies as memorialized in the Voting Rights Proxy Agreement, the Company
believes that the owners collectively have control and common control of Kandi New Energy. Accordingly, the Company believes that Kandi
New Energy was constructively held under common control by Zhejiang Kandi Technologies as of the time the contractual agreements were
entered into, establishing Zhejiang Kandi Technologies as their primary beneficiary. Zhejiang Kandi Technologies, in turn, is owned by
Continental, which is owned by the Company. For accounting purpose, the tables below are condensed
consolidating schedules summarizing separately the results of operations, financial position and cash flows of the parent company including
non-VIE subsidiaries and Kandi New Energy, which was deemed as an VIE since the Company only owned 50% of the equity, and control Kandi
New Energy through several contractual agreements prior to its conversion to a wholly-owned subsidiary of Zhejiang Kandi Technologies
effective March 14, 2022, together with eliminating adjustments: Consolidated Statements of Operations Information
For the year ended December 31, 2021
Parent VIE Elimination Consolidated
Revenues $ 87,210,780 $ 14,414,362 $ (10,138,758 ) $ 91,486,384
Gross profit $ 15,892,507 $ 355,355 $ - $ 16,247,862
Income (loss) from operations $ 2,576,730 $ (1,240,525 ) $ - $ 1,336,205
Income (loss) before income taxes $ 46,250,219 $ 3,115,420 $ (20,155,351 ) $ 29,210,288
Net income $ 40,739,432 $ 2,279,717 $ (20,155,351 ) $ 22,863,798
For the year ended December 31, 2020
Parent VIE Elimination Consolidated
Revenues $ 68,235,630 $ 27,613,722 $ (18,928,839 ) $ 76,920,513
Gross profit $ 12,973,809 $ 514,124 $ - $ 13,487,933
Income (loss) from operations $ 2,061,373 $ (1,306,977 ) $ - $ 754,396
loss before income taxes $ (14,410,035 ) $ (1,031,298 ) $ - $ (15,441,333 )
Net loss $ (9,648,826 ) $ (745,338 ) $ - $ (10,394,164 ) Consolidated Balance Sheets Information
As of December 31, 2021
Parent VIE Elimination Consolidated
Cash and cash equivalents $ 128,862,704 $ 360,739 $ - $ 129,223,443
Total current assets $ 352,068,155 $ 21,002,017 $ (30,462,036 ) $ 342,608,136
Total non-current assets $ 181,562,128 $ 32,700,203 $ (36,710,195 ) $ 177,552,136
Total current liabilities $ 58,240,678 $ 36,384,048 $ (30,462,036 ) $ 64,162,690
Total non-current liabilities $ 11,971,688 $ 825,567 $ - $ 12,797,255
Total stockholders’ equity $ 463,417,917 $ 16,492,605 $ (36,710,195 ) $ 443,200,327
As of December 31, 2020
Parent VIE Elimination Consolidated
Cash and cash equivalents $ 142,062,013 $ 16,177 $ - $ 142,078,190
Total current assets $ 285,542,114 $ 51,257,889 $ (29,684,427 ) $ 307,115,576
Total non-current assets $ 191,180,142 $ 10,128,747 $ (13,174,625 ) $ 188,134,264
Total current liabilities $ 85,980,986 $ 27,500,866 $ (29,684,427 ) $ 83,797,425
Total non-current liabilities $ 7,544,838 $ 140,913 $ - $ 7,685,751
Total stockholders’ equity $ 383,196,432 $ 33,744,857 $ (13,174,625 ) $ 403,766,664 Percentage of VIE’s assets and liabilities compared to consolidated
assets and liabilities
As of December 31, 2021
VIE Consolidated % of VIE’s assets and liabilities in consolidated assets and liabilities
Cash and cash equivalents $ 360,739 $ 129,223,443 0.3 %
Total current assets $ 21,002,017 $ 342,608,136 6.1 %
Total non-current assets $ 32,700,203 $ 177,552,136 18.4 %
Total current liabilities $ 36,384,048 $ 64,162,690 56.7 %
Total non-current liabilities $ 825,567 $ 12,797,255 6.5 %
As of December 31, 2020
VIE Consolidated % of VIE’s assets and liabilities in consolidated assets and liabilities
Cash and cash equivalents $ 16,177 $ 142,078,190 0.0 %
Total current assets $ 51,257,889 $ 307,115,576 16.7 %
Total non-current assets $ 10,128,747 $ 188,134,264 5.4 %
Total current liabilities $ 27,500,866 $ 83,797,425 32.8 %
Total non-current liabilities $ 140,913 $ 7,685,751 1.8 % Consolidated Cash Flows Information
For the year ended December 31, 2021
Parent including non-VIE subsidiaries VIE Elimination Consolidated
Net cash (used in) provided by operating activities $ (9,412,899 ) $ 9,654,589 $ - $ 241,690
Net cash provided by (used in) investing activities $ 30,230,627 $ (22,811,949 ) $ 14,791,226 $ 22,209,904
Net cash provided by (used in) financing activities $ 2,042,523 $ 13,496,632 $ (14,791,226 ) $ 747,929
For the year ended December 31, 2020
Parent including non-VIE subsidiaries VIE Elimination Consolidated
Net cash provided by (used in) operating activities $ (47,026,465 ) $ (3,856,787 ) $ - $ (50,883,252 )
Net cash provided by (used in) investing activities $ 58,168,723 $ (121,767 ) $ (6,895,506 ) $ 51,151,450
Net cash provided by (used in) financing activities $ 126,446,358 $ (6,895,506 ) $ 6,895,506 $ 126,446,358 Effective March 14, 2022, Mr. Hu Xiaoming transferred
his 50% equity interests of Kandi New Energy to Zhejiang Kandi Technologies. As a result, Kandi New Energy has become a wholly-owned subsidiary
of Zhejiang Kandi Technologies. The Company no longer has any VIE as of the date of this report. |
