Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 03, 2022 | |
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 | 74,239,831 | |
Amendment Flag | false | |
Entity Central Index Key | 0001316517 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33997 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0363723 | |
Entity Address, Address Line One | Jinhua New Energy Vehicle Town Jinhua | |
Entity Address, City or Town | Jinhua | |
Entity Address, Address Line Two | Zhejiang Province | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 321016 | |
City Area Code | (86 - 579) | |
Local Phone Number | 82239856 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 99,029,118 | $ 129,223,443 |
Restricted cash | 40,855,710 | 39,452,564 |
Certificate of deposit | 70,324,477 | 55,041,832 |
Accounts receivable (net of allowance for doubtful accounts of $2,734,642 and $3,053,277 as of September 30, 2022 and December 31, 2021, respectively) | 40,034,961 | 52,896,305 |
Inventories | 43,673,888 | 33,171,973 |
Notes receivable | 1,371,773 | 323,128 |
Other receivables | 19,293,487 | 8,901,109 |
Prepayments and prepaid expense | 4,006,808 | 17,657,326 |
Advances to suppliers | 5,800,659 | 5,940,456 |
TOTAL CURRENT ASSETS | 324,390,881 | 342,608,136 |
NON-CURRENT ASSETS | ||
Property, plant and equipment, net | 94,908,520 | 111,577,411 |
Intangible assets, net | 10,785,106 | 13,249,079 |
Land use rights, net | 2,843,944 | 3,250,336 |
Construction in progress | 329,726 | 79,317 |
Deferred tax assets | 2,171,890 | 2,219,297 |
Long-term investment | 140,649 | 157,262 |
Goodwill | 32,960,659 | 36,027,425 |
Other long-term assets | 10,423,361 | 10,992,009 |
TOTAL NON-CURRENT ASSETS | 154,563,855 | 177,552,136 |
TOTAL ASSETS | 478,954,736 | 520,160,272 |
CURRENT LIABILITIES | ||
Accounts payable | 33,281,208 | 36,677,802 |
Other payables and accrued expenses | 7,894,152 | 9,676,973 |
Short-term loans | 5,604,312 | 950,000 |
Notes payable | 17,170,279 | 8,198,193 |
Income tax payable | 1,121,744 | 1,620,827 |
Other current liabilities | 6,425,151 | 7,038,895 |
TOTAL CURRENT LIABILITIES | 71,496,846 | 64,162,690 |
NON-CURRENT LIABILITIES | ||
Long-term loans | 2,210,589 | 2,210,589 |
Deferred taxes liability | 2,462,901 | 2,460,141 |
Contingent consideration liability | 3,266,000 | 7,812,000 |
Other long-term liabilities | 777,211 | 314,525 |
TOTAL NON-CURRENT LIABILITIES | 8,716,701 | 12,797,255 |
TOTAL LIABILITIES | 80,213,547 | 76,959,945 |
STOCKHOLDER’S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 77,658,730 and 77,385,130 shares issued and 75,343,594 and 76,705,381 outstanding at September 30,2022 and December 31,2021, respectively | 77,659 | 77,385 |
Less: Treasury stock (2,315,136 shares with average price of $2.96 and 679,749 shares with average price of $3.52 at September 30,2022 and December 31,2021, respectively ) | (6,848,731) | (2,392,203) |
Additional paid-in capital | 450,380,994 | 449,479,461 |
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at September 30,2022 and December 31,2021, respectively) | (7,390,410) | (4,216,102) |
Accumulated other comprehensive loss | (39,637,503) | 251,786 |
TOTAL KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS’ EQUITY | 396,582,009 | 443,200,327 |
Non-controlling interests | 2,159,180 | |
TOTAL STOCKHOLDERS’ EQUITY | 398,741,189 | 443,200,327 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 478,954,736 | $ 520,160,272 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts (in Dollars) | $ 2,734,642 | $ 3,053,277 |
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 | 77,658,730 | 77,385,130 |
Common stock, shares outstanding | 75,343,594 | 76,705,381 |
Treasury stock, shares | 2,315,136 | 679,749 |
Treasury stock, average price (in Dollars per share) | $ 2.96 | $ 3.52 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUES FROM UNRELATED PARTIES, NET | $ 33,673,201 | $ 16,795,712 | $ 79,405,788 | $ 62,647,714 |
REVENUES FROM THE FORMER AFFILIATE COMPANY AND RELATED PARTIES, NET | 1,587 | |||
REVENUES, NET | 33,673,201 | 16,795,712 | 79,405,788 | 62,649,301 |
COST OF GOODS SOLD | (27,304,038) | (14,046,041) | (67,930,595) | (49,447,497) |
GROSS PROFIT | 6,369,163 | 2,749,671 | 11,475,193 | 13,201,804 |
OPERATING INCOME (EXPENSE): | ||||
Research and development | (1,433,649) | (6,747,934) | (3,828,078) | (31,937,436) |
Selling and marketing | (1,440,995) | (1,290,544) | (3,807,222) | (3,494,927) |
General and administrative | (5,686,233) | (3,733,230) | (18,016,843) | (13,522,925) |
Gain on disposal of long-lived assets | 2,238 | 48,255,905 | ||
TOTAL OPERATING EXPENSE | (8,560,877) | (11,769,470) | (25,652,143) | (699,383) |
(LOSS) INCOME FROM OPERATIONS | (2,191,714) | (9,019,799) | (14,176,950) | 12,502,421 |
OTHER INCOME (EXPENSE): | ||||
Interest income | 2,138,130 | 1,247,544 | 4,739,208 | 2,750,241 |
Interest expense | (177,417) | (63,368) | (463,994) | (267,785) |
Change in fair value of contingent consideration | 434,995 | 2,733,995 | ||
Government grants | 829,539 | 220,967 | 1,536,856 | 570,162 |
Gain from sale of equity in the Former Affiliate Company | 822 | 17,734,733 | ||
Share of loss after tax of the Former Affiliate Company | (119) | (2,584,520) | ||
Other income, net | 536,726 | 442,102 | 2,954,036 | 4,768,092 |
TOTAL OTHER INCOME , NET | 3,761,973 | 1,847,948 | 11,500,101 | 22,970,923 |
INCOME (LOSS) BEFORE INCOME TAXES | 1,570,259 | (7,171,851) | (2,676,849) | 35,473,344 |
INCOME TAX (EXPENSE) BENEFIT | (497,211) | (696,968) | 255,232 | (8,815,409) |
NET INCOME (LOSS) | 1,073,048 | (7,868,819) | (2,421,617) | 26,657,935 |
LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 694,029 | 752,691 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS | 379,019 | (7,868,819) | (3,174,308) | 26,657,935 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment | (20,932,870) | (116,054) | (39,889,289) | 3,582,748 |
COMPREHENSIVE (LOSS) INCOME | $ (19,859,822) | $ (7,984,873) | $ (42,310,906) | $ 30,240,683 |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC (in Shares) | 75,741,399 | 76,394,573 | 75,962,899 | 75,766,749 |
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED (in Shares) | 75,885,630 | 76,394,573 | 76,061,190 | 75,766,749 |
NET INCOME (LOSS) PER SHARE, BASIC (in Dollars per share) | $ 0.01 | $ (0.1) | $ (0.03) | $ 0.35 |
NET INCOME (LOSS) PER SHARE, DILUTED (in Dollars per share) | $ 0.01 | $ (0.1) | $ (0.03) | $ 0.35 |
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 | Non-controlling interests | Total |
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 Former Affiliate Company’s equity (net of 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 | ||||||
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 | ||||||
Net income (loss) | 26,657,935 | ||||||
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 | ||||||
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 | ||||||
Balance at Dec. 31, 2021 | $ 77,385 | (2,392,203) | 449,479,461 | (4,216,102) | 251,786 | 443,200,327 | |
Balance (in Shares) at Dec. 31, 2021 | 77,385,130 | ||||||
Stock issuance and award | $ 25 | 92,925 | 92,950 | ||||
Stock issuance and award (in Shares) | 25,000 | ||||||
Stock buyback | (1,570,324) | (13,236) | (1,583,560) | ||||
Capital contribution from shareholder | 1,198,398 | 1,198,398 | |||||
Net income (loss) | (1,616,056) | (2,957) | (1,619,013) | ||||
Foreign currency translation | 1,009,811 | 1,009,811 | |||||
Balance at Mar. 31, 2022 | $ 77,410 | (3,962,527) | 449,559,150 | (5,832,158) | 1,261,597 | 1,195,441 | 442,298,913 |
Balance (in Shares) at Mar. 31, 2022 | 77,410,130 | ||||||
Balance at Dec. 31, 2021 | $ 77,385 | (2,392,203) | 449,479,461 | (4,216,102) | 251,786 | 443,200,327 | |
Balance (in Shares) at Dec. 31, 2021 | 77,385,130 | ||||||
Net income (loss) | (2,421,617) | ||||||
Balance at Sep. 30, 2022 | $ 77,659 | (6,848,731) | 450,380,994 | (7,390,410) | (39,637,503) | 2,159,180 | 398,741,189 |
Balance (in Shares) at Sep. 30, 2022 | 77,658,730 | ||||||
Balance at Mar. 31, 2022 | $ 77,410 | (3,962,527) | 449,559,150 | (5,832,158) | 1,261,597 | 1,195,441 | 442,298,913 |
Balance (in Shares) at Mar. 31, 2022 | 77,410,130 | ||||||
Stock issuance and award | $ 239 | 584,331 | 584,570 | ||||
Stock issuance and award (in Shares) | 238,600 | ||||||
Stock buyback | (1,974,490) | (22,578) | (1,997,068) | ||||
Net income (loss) | (1,937,271) | 61,619 | (1,875,652) | ||||
Foreign currency translation | (19,966,230) | (63,460) | (20,029,690) | ||||
Balance at Jun. 30, 2022 | $ 77,649 | (5,937,017) | 450,120,903 | (7,769,429) | (18,704,633) | 1,193,600 | 418,981,073 |
Balance (in Shares) at Jun. 30, 2022 | 77,648,730 | ||||||
Stock issuance and award | $ 10 | 22,290 | 22,300 | ||||
Stock issuance and award (in Shares) | 10,000 | ||||||
Stock based compensation | 250,673 | 250,673 | |||||
Stock buyback | (911,714) | (12,872) | (924,586) | ||||
Capital contribution from shareholder | 337,557 | 337,557 | |||||
Net income (loss) | 379,019 | 694,029 | 1,073,048 | ||||
Foreign currency translation | (20,932,870) | (66,006) | (20,998,876) | ||||
Balance at Sep. 30, 2022 | $ 77,659 | $ (6,848,731) | $ 450,380,994 | $ (7,390,410) | $ (39,637,503) | $ 2,159,180 | $ 398,741,189 |
Balance (in Shares) at Sep. 30, 2022 | 77,658,730 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) (Parentheticals) | 3 Months Ended |
Mar. 31, 2021 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Net of tax effect | $ 491,400 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (2,421,617) | $ 26,657,935 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 9,512,970 | 6,893,192 |
Provision (reversal) of allowance for doubtful accounts | 4,220 | |
Deferred taxes | (116,206) | (11,970) |
Share of loss after tax of the Former Affiliate Company | 2,584,520 | |
Gain from equity sale in the Former Affiliate Company | (17,734,733) | |
Gain on disposal of long-lived assets | (48,255,905) | |
Change in fair value of contingent consideration | (2,733,995) | |
Stock award and stock based compensation expense | 913,288 | 1,452,381 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (20,932,970) | 4,289,150 |
Notes receivable | 1,927,621 | |
Inventories | (13,183,546) | (7,443,414) |
Other receivables and other assets | (10,264,805) | (17,537,034) |
Advances to supplier and prepayments and prepaid expenses | 12,405,615 | 18,776,708 |
Increase (Decrease) In: | ||
Accounts payable | 46,796,615 | (4,116,153) |
Other payables and accrued liabilities | 4,951,022 | 7,052,572 |
Notes payable | (13,574,849) | (93,278) |
Income tax payable | (60,313) | 8,053,977 |
Net cash provided by (used in) operating activities | 13,223,050 | (19,432,052) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (1,674,445) | (10,948,968) |
Acquisition of Jiangxi Huiyi | (3,864,346) | |
Payment for construction in progress | (278,777) | (4,048,889) |
Proceeds from disposal of long-lived assets | 23,235,758 | |
(Loan to) Repayment from third party | (4,545,386) | 31,687,637 |
Certificate of deposit | (22,726,928) | (54,100,844) |
Proceeds from sales of equity in the Former Affiliate Company | 47,608,743 | |
Long-term Investment | (108,202) | |
Advance receipts of equity transfer | 600,463 | |
Net cash (used in) provided by investing activities | (29,225,536) | 30,061,352 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 20,642,224 | 2,630,000 |
Repayments of short-term loans | (15,987,912) | |
Contribution from non-controlling shareholder | 772,716 | |
Purchase of treasury stock | (4,505,213) | |
Net cash provided by financing activities | 921,815 | 2,630,000 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (15,080,671) | 13,259,300 |
Effect of exchange rate changes | (13,710,508) | 990,440 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 168,676,007 | 142,520,635 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 139,884,828 | 156,770,375 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 99,029,118 | 132,866,957 |
-RESTRICTED CASH AT END OF PERIOD | 40,855,710 | 23,903,418 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 274,037 | 688,160 |
Interest paid | 225,479 | 17,536 |
SUPPLEMENTAL NON-CASH DISCLOSURES: | ||
Reversal of decrease in investment in the Former Affiliate Company due to change in its equity (net of tax effect of $491,400) | 2,813,968 | |
Contribution from non-controlling shareholder by inventories, fix assets and intangible assets | $ 393,986 | |
Common stock issued for settlement of payables related to acquisitions (see Note 19) | $ 4,853,451 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
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, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [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, electric off-road vehicles, and associated parts 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 February 15, 2022, Kandi Hainan and Jiangsu Xingchi Electric Technology Co., Ltd. (“Jiangsu Xingchi”) signed a joint venture agreement, pursuant to which the two parties jointly invested RMB 30,000,000 (approximately $4.5 million) in Haikou city of Hainan province to establish Hainan Kandi Holding New Energy Technology Co., Ltd. (“Hainan Kandi Holding”), of which Kandi Hainan owns 66.7% and Jiangsu Xingchi owns 33.3%. |
Liquidity
Liquidity | 9 Months Ended |
Sep. 30, 2022 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had working capital of $252,894,035 as of September 30, 2022, a decrease of $25,551,411 from working capital of $278,445,446 as of December 31, 2021. As of September 30, 2022 and December 31, 2021, the Company’s cash and cash equivalents were $99,029,118 and $129,223,443, respectively, the Company’s restricted cash was $40,855,710 and $39,452,564, respectively. As of September 30, 2022 and December 31, 2021, the Company had multiple certificates of deposit with a total amount of $70,324,477 and $55,041,832, respectively. These certificates of deposit have an annual interest rate from 3.15% to 3.99% which can be transferred when necessary without any penalty or any loss of interest and principal. 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. 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 and 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 have $7.8 million short-term and long-term bank loans outstanding as of September 30, 2022. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation [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 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, 2021 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 Amendment No.1 to the Annual Report on Form 10-K/A for the fiscal year ended December 31, 2021 (the “2021 Form 10-K/A”). |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2022 | |
Principles of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 4 - PRINCIPLES OF CONSOLIDATION The Company’s unaudited condensed consolidated financial statements reflect the accounts of the Company and its ownership interests in the following subsidiaries: (1) Continental Development Limited (“Continental”), a wholly-owned subsidiary of the Company, incorporated under the laws of Hong Kong; (2) 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”), formerly, a 50%-owned subsidiary of Zhejiang Kandi Technologies (Mr. Hu Xiaoming owned 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 was entitled to 100% of the economic benefits, voting rights and residual interests of Kandi New Energy. 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; (4) Kandi Electric Vehicles (Hainan) Co., Ltd. (“Kandi Hainan”), a subsidiary 55% owned by Kandi New Energy and 45% 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; (7) SC Autosports (d/b/a Kandi America), a wholly-owned subsidiary of the Company formed under the laws of the State of Texas. (8) China Battery Exchange (Zhejiang) Technology Co., Ltd. (“China Battery Exchange”), a wholly-owned subsidiary of Zhejiang Kandi Technologies, and its subsidiaries, incorporated under the laws of the PRC; (9) Kandi America Investment, LLC (“Kandi Investment”), a wholly-owned subsidiary of SC Autosports formed under the laws of the State of Texas, USA; (10) Jiangxi Province Huiyi New Energy Co., Ltd. (“Jiangxi Huiyi”) and its subsidiaries, a wholly-owned subsidiary of Zhejiang Kandi Technologies, incorporated under the laws of the PRC; and (11) Hainan Kandi Holding New Energy Technology Co., Ltd. (“Hainan Kandi Holding”), a subsidiary of Kandi Hainan, incorporated under the laws of the PRC; Kandi Hainan owns 66.7% and a non-affiliate, Jiangsu Xingchi owns 33.3% of Hainan Kandi Holding. Consequently, effective February 15, 2022, non-controlling interests of an aggregate of 33.3% of the equity interests of Hainan Kandi Holding held by an entity are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest in the results of the Company are presented on the consolidated statement of operations as an allocation of the total income or loss for the period between non-controlling interest holders and the shareholders of the Company. 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 Fengsheng Automotive Technology Group Co., Ltd. (“Former 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 Former Affiliate Company to Geely. 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, 2022 | |
Disclosure Use of Estimates [Abstract] | |
USE OF ESTIMATES | NOTE 5 - USE OF ESTIMATES The preparation of the unaudited condensed 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 unaudited condensed consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s unaudited condensed 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, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 6 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies are detailed in “Note 6 - Summary of Significant Accounting Policies” of the Company’s 2021 Form 10-K/A. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
New Accounting Pronouncements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. Prior to this ASU, an acquirer generally recognizes contract assets acquired and contract liabilities assumed that arose from contracts with customers at fair value on the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The ASU is to be applied prospectively to business combinations occurring on or after the effective date of the amendment (or if adopted early as of an interim period, as of the beginning of the fiscal year that includes the interim period of early application). The Company is currently assessing this standard’s impact on its consolidated financial statements. |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2022 | |
Concentrations [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the three-month period ended September 30, 2022 and 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 Ended September 30, September 30, December 31, Major Customers 2022 2022 2021 Customer A 39 % 13 % - Sales Trade Receivable Three Months Ended September 30, September 30, Major Customers 2021 2021 Customer B 14 % 11 % Customer C 19 % 9 % For the nine-month period ended September 30, 2022 and 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 Ended September 30, September 30, December 31, Major Customers 2022 2022 2021 Customer A 19 % 13 % - Sales Trade Receivable Nine Months Ended September 30, September 30, Major Customers 2021 2021 Customer B 17 % 11 % Customer D 11 % - (b) Suppliers For the three-month period ended September 30, 2022 and 2021, the Company’s material supplier, the purchase made by which accounted for more than 10% of the Company’s total purchases, was as follows: Purchases Accounts Payable Three Months Ended September 30, September 30, December 31, Major Suppliers 2022 2022 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 29 % 28 % 11 % Purchases Accounts Payable Three Months Ended September 30, September 30, Major Suppliers 2021 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 36 % 15 % (1) Zhejiang Kandi Technologies owns 10% equity interest of the supplier. For the nine-month period ended September 30, 2022 and 2021, the Company’s material supplier, the purchase made by which accounted for more than 10% of the Company’s total purchases, was as follows: Purchases Accounts Payable Nine Months Ended September 30, September 30, December 31, Major Suppliers 2022 2022 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 16 % 28 % 11 % Purchases Accounts Payable Nine Months Ended September 30, September 30, Major Suppliers 2021 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 51 % 15 % (1) Zhejiang Kandi Technologies owns 10% equity interest of the supplier. |
Earnings (loss) Per Share
Earnings (loss) Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 9 - EARNINGS (LOSS) PER SHARE The Company calculates earnings (loss) per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed using the weighted average number of shares outstanding during the reporting period. Diluted earnings (loss) per share represents basic earnings (loss) 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 being below the exercise price of certain options and warrants, approximately 900,000 options and 8,131,332 warrants were excluded from the calculation of diluted earnings per share, for the three-month and nine-month period ended September 30, 2022. On September 7, 2022, the Compensation Committee of the Board of Directors of the Company approved the grant of 5,000,000 stock options, at an exercise price of $2.07 per share. There were dilutive effects of 144,231 shares and 98,291 shares for the three-month and nine-month period ended September 30, 2022. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 10 - ACCOUNTS RECEIVABLE Accounts receivable are summarized as follows: September 30, December 31, 2022 2021 Accounts receivable $ 42,769,603 $ 55,949,582 Less: allowance for doubtful accounts (2,734,642 ) (3,053,277 ) Accounts receivable, net $ 40,034,961 $ 52,896,305 The following table sets forth the movement of provision for doubtful accounts: Allowance BALANCE AT DECEMBER 31, 2020 $ 110,269 Provision 1,147,679 Addition of allowance resulted from acquisition of Jiangxi Huiyi 1,763,231 Exchange rate difference 32,098 BALANCE AT DECEMBER 31, 2021 $ 3,053,277 Provision 4,220 Exchange rate difference (322,855 ) BALANCE AT September 30, 2022 $ 2,734,642 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: September 30, December 31, 2022 2021 Raw material $ 9,884,309 $ 9,291,441 Work-in-progress 6,533,631 9,116,194 Finished goods * 27,255,948 14,764,338 Inventories $ 43,673,888 $ 33,171,973 * As of September 30, 2022, approximately $11.7 million of inventory of off-road vehicles and EVs held by SC Autosports were pledged as collateral for the $1,450,000 short-term loan. |
Other Receivables
Other Receivables | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 12 - OTHER RECEIVABLES Other receivables consist of the following: September 30, December 31, 2022 2021 Fund in the Company’s broker account① 6,082,125 1,587,340 Interest receivable 4,317,183 3,565,657 Loan to third party ② $ 4,219,469 $ - Others 4,674,710 3,748,112 Total other receivables $ 19,293,487 $ 8,901,109 ① As of September 30, 2022 and December 31, 2021, the Company’s other receivable includes $6,082,125 and $1,587,340 of fund deposited in the Company’s broker account for repurchasing of the Company’s common stock. ② As of September 30, 2022, the Company’s other receivable includes $4,219,469 short-term loan lent to a third party with a 6% annual interest rate in order to maximize the use of idled cash. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 13 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plants and equipment as of September 30, 2022 and December 31, 2021, consisted of the following: September 30, December 31, 2022 2021 At cost: Buildings $ 48,004,289 $ 52,481,460 Machinery and equipment 74,399,574 81,994,596 Office equipment 1,480,986 1,497,461 Motor vehicles and other transport equipment 983,233 1,068,616 Molds and others 10,655,051 11,852,568 135,523,133 148,894,701 Less : Accumulated depreciation (40,614,613 ) (37,317,290 ) Property, plant and equipment, net $ 94,908,520 $ 111,577,411 The Company’s Jinhua factory completed the relocation to a 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. The Company’s Jinhua factory owns the above production facilities. The Company’s EV products, EV parts and electrical off-road vehicles, including Neighborhood EVs (“NEVs”), pure electric utility vehicles (“UTV”), pure electric golf cart and EV parts are manufactured in the Hainan factory. The Company’s Hainan factory expects to have production capacity with an annual output (three shifts) of 100,000 units of various models of EV products, EV parts and electrical off-road vehicles and owns the above facilities. Currently, the project completion acceptance of Hainan factory is being processed. Before the completion acceptance is finished, the Hainan factory is manufacturing the above products in the form of trial production. Depreciation expenses for the three months ended September 30, 2022 and 2021 were $2,510,531 and $2,221,175, respectively. Depreciation expenses for the nine months ended September 30, 2022 and 2021 were $7,796,048 and $5,987,730, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 14 - INTANGIBLE ASSETS Intangible assets include acquired other intangibles of patent and technology recorded at estimated fair values in accordance with purchase accounting guidelines for acquisitions. The following table provides the gross carrying value and accumulated amortization for each major class of our intangible assets, other than goodwill: September 30, December 31, Remaining 2022 2021 Gross carrying amount: Patent 2.75-4.42 years $ 4,791,086 5,000,944 Technology 6.08-9.08 years 9,704,778 10,851,104 14,495,864 15,852,048 Less : Accumulated amortization Patent $ (2,511,726 ) (2,359,212 ) Technology (1,199,032 ) (243,757 ) (3,710,758 ) (2,602,969 ) Intangible assets, net $ 10,785,106 $ 13,249,079 The aggregate amortization expenses for those intangible assets were $482,010 and $165,467 for the three months ended September 30, 2022 and 2021, respectively. The aggregate amortization expenses for those intangible assets were $1,489,579 and $165,467 for the nine months ended September 30, 2022 and 2021, respectively. Amortization expenses for the next five years and thereafter are as follows: Three months ended December 31, 2022 $ 874,429 Years ended December 31, 2023 2,061,687 2024 2,061,687 2025 1,939,157 2026 1,721,303 Thereafter 2,126,843 Total $ 10,785,106 |
Land Use Rights, Net
Land Use Rights, Net | 9 Months Ended |
Sep. 30, 2022 | |
Land Use Rights, Net Disclosure [Abstract] | |
LAND USE RIGHTS, NET | NOTE 15 - LAND USE RIGHTS, NET The Company’s land use rights consist of the following: September 30, December 31, 2022 2021 Cost of land use rights $ 3,695,308 $ 4,131,797 Less: Accumulated amortization (851,364 ) (881,461 ) Land use rights, net $ 2,843,944 $ 3,250,336 The amortization expenses for the three months ended September 30, 2022 and 2021, were $21,764 and $23,093, respectively. The amortization expenses for the nine months ended September 30, 2022 and 2021, were $67,889 and $69,265, respectively. Amortization expenses for the next five years and thereafter are as follows: Three months ended December 31, 2022 $ 21,764 Years ended December 31, 2023 87,056 2024 87,056 2025 87,056 2026 87,056 Thereafter 2,473,956 Total $ 2,843,944 |
Other Long Term Assets
Other Long Term Assets | 9 Months Ended |
Sep. 30, 2022 | |
Other Long Term Assets [Abstract] | |
OTHER LONG TERM ASSETS | NOTE 16 - OTHER LONG TERM ASSETS Other long term assets as of September 30, 2022 and December 31, 2021, consisted of the following: September 30, December 31, 2022 2021 Prepayments for land use right (i) $ 3,820,784 4,341,496 Right - of - use asset (ii) 6,277,051 6,308,374 Others 325,526 342,139 Total other long-term asset $ 10,423,361 $ 10,992,009 (i) As of September 30, 2022 and December 31, 2021, the Company’s other long term assets included net value of prepayments for land use right of Hainan facility of $3,820,784 and $4,341,496, respectively. As of September 30, 2022, 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, 2022 and 2021 were $21,436 and $22,741, respectively. The amortization expense for the nine months ended September 30, 2022 and 2021 were $66,865 and $68,216, respectively. (ii) As of September 30, 2022 and December 31, 2021, the Company’s operating lease right-of-use assets in other long term assets included net value of land use right of Jinhua facility acquired in October 2020 and Jiangxi facility acquired in October 2021 of $5,555,997 and $6,308,374, respectively, as well as the amount of $721,054 related to the lease of Hangzhou office starting January 1, 2022. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the three months ended September 30, 2022 and 2021 were $29,682 and $17,499, respectively. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the nine months ended September 30, 2022 and 2021were $92,590 and $52,493, respectively. |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Taxes [Abstract] | |
TAXES | NOTE 17 - TAXES (a) Corporation Income Tax Pursuant to the tax laws and regulations of the PRC, the Company’s applicable corporate income tax (“CIT”) rate is 25%. However, Zhejiang Kandi Technologies, Kandi Smart Battery Swap, Jiangxi Huiyi and Kandi Hainan qualify as High and New Technology Enterprise (“HNTE”) companies in the PRC, and are entitled to a reduced income tax rate of 15% for the years presented. A HNTE Certificate is valid for three years. An entity may re-apply for an HNTE certificate when the prior certificate expires. Historically, Zhejiang Kandi Technologies, Kandi Smart Battery Swap, Jiangxi Huiyi have successfully re-applied for such certificates when their prior certificates expired. Kandi Hainan has been qualified as a HNTE since 2020. Therefore, it will apply for its first renewal when eligible Additionally, Hainan Kandi Holding also has an income tax rate of 15% due to its local preferred tax rate in Hainan Free Trade Port. The applicable CIT rate of each of the Company’s other subsidiaries, Kandi New Energy, Yongkang Scrou, China Battery Exchange and its subsidiaries is 25%. The Company’s provision or benefit from income taxes for interim periods is determined using an estimate of the Company’s 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, management makes a cumulative adjustment. For 2022, 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 30, 2022 and 2021 were a tax benefit of 9.53% on a reported loss before taxes of approximately $2.7 million, a tax expense of 24.85% on a reported income before taxes of approximately $35.5 million, respectively. The quarterly tax provision, and the quarterly estimate of the Company’s annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting the Company’s pre-tax and taxable income and loss, acquisitions (including integrations) and investments, changes in its stock price, changes in its deferred tax assets and liabilities and their valuation, return to provision true-up, foreign currency gains (losses), changes in regulations and interpretations related to tax, accounting, and other areas. Additionally, the Company’s effective tax rate can be volatile based on the amount of pre-tax income or loss. The income tax provision for the nine months ended September 30, 2022 and 2021 was tax benefit of $255,232 and tax expense of $8,815,409, 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, 2022, 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. 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, 2022, the Company was not aware of any pending income tax examinations by U.S. or PRC tax authorities. The Company records interest and penalties on uncertain tax provisions as income tax expense. As of September 30, 2022, the Company has no accrued interest or penalties related to uncertain tax positions. The tax effected aggregate Net Operating Loss (“NOL”) was $8.2 million and $3.4 million in tax year 2021 and 2020, which were deriving from entities in the PRC, Hong Kong and U.S. Some of the NOLs will start to expire from 2026 if they are not used. The cumulative NOL in the PRC can be carried forward for five years in general, and ten years for entities qualify HNTE treatment, which is $0.1 million and $7.5 million respectfully, to offset future net profits for income tax purposes. The Company also has $0.5 million tax effected NOL in U.S. to carry forward with indefinite carryforward period, and $0.1 million tax effected NOL in Hong Kong can be carried forward without an expiration date as well. (b) Tax Holiday Effect For the nine months ended September 30, 2022 and 2021, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the nine months ended September 30, 2022 and 2021. The combined effects of income tax expense exemptions and reductions available to the Company for the nine months ended September 30, 2022 and 2021 are as follows: September 30, 2022 2021 Tax benefit (holiday) credit $ 1,129,332 $ 5,745,354 Basic net income per share effect $ 0.01 $ 0.08 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases and Right-of-Use-Assets [Abstract] | |
LEASES | NOTE 18 - LEASES The Company previously 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 on January 31, 2020, with a remaining lease term of 15 months and discount rate of 4.25%. SC Autosports bought its own corporate office after this lease term expired in April 2021. 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. On October 31, 2021, the Company acquired $2.8 million of land use rights through the acquisition of Jiangxi Huiyi. This land use rights was wholly prepaid. The Company has entered into a lease for Hangzhou office, with a term of 48 months from January 1, 2022 to December 31, 2025. The Company recorded operating lease assets and operating lease liabilities on January 1, 2022, with a remaining lease term of 48 months and discount rate of 3.70%. The annual lease payment for 2022 was prepaid as of January 1, 2022. The Company has prepaid the first year of lease and deposit amount of $253,337. As of September 30, 2022, the Company’s operating lease right-of-use assets (grouped in other long-term assets on the balance sheet) was $6,277,051 and lease liability was $653,355 (grouped in other current liabilities and other long-term liabilities on the balance sheet). For the three months ended September 30, 2022 and 2021, the Company’s operating lease expense were $87,146 and $17,499, respectively. For the nine months ended September 30, 2022 and 2021, the Company’s operating lease expense were $271,839 and $100,493, respectively. Supplemental information related to operating leases was as follows: Nine Months Ended September 30, 2022 2021 Cash payments for operating leases $ 271,839 $ 100,493 Maturities of lease liabilities as of September 30, 2022 were as follow: Maturity of Lease Liabilities: Lease payable Years ended December 31, $ 2023 209,922 2024 217,689 2025 225,744 |
Contingent Consideration Liabil
Contingent Consideration Liability | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
CONTINGENT CONSIDERATION LIABILITY | NOTE 19 - 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 registered 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 KSBS 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 million (approximately $8 million) 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 October 31, 2021, the Company completed the acquisition of 100% of the equity of Jiangxi Huiyi. The Company paid approximately RMB 50 million (approximately $7.9 million) at the closing of the transaction using cash on hand and may be required to pay future consideration of up to an additional 2,576,310 shares of common stock, or the total make good shares, upon the achievement of certain net income-based milestones in the next three years. Due to the fresh COVID-19 outbreak and extended lockdown in some areas in China, in June 2022, the Company agreed with the original shareholders of Jiangxi Huiyi (the “Transferors”) to revise the conditions of the annual profit target and extension of evaluation period for the first year. Pursuant to the supplementary agreement, the Transferors have the right to obtain 858,770 KNDI shares in each of the below-mentioned periods, provided that Jiangxi Huiyi achieves a net income of 1) RMB 8 million yuan or more during the period from July 1, 2021 to September 30, 2022 (“Period I”); 2) RMB 15 million yuan or more during the period from October 1, 2022 to September 30, 2023 (“Period II”); 3) RMB 15 million yuan or more during the period from October 1, 2023 to September 30, 2024 (“Period III”). If the net income of Jiangxi Huiyi fails to reach the respective target number in any of the three periods, the shares that the Transferors are entitled to obtain in that period will be adjusted accordingly: 1) if the difference between the net income in each Period and its Target Number is less than or equivalent to 20% of its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III), the transferee or KNDI has right to directly subtract 171,754 KNDI shares from the total make good shares, and the Transferor are entitled to obtain 687,016 KNDI shares; 2) if the difference between the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is more than 20% of its Target Number but less than 40% of its Target Number, the transferee or KNDI has the right to directly subtract 343,508 KNDI shares from the total make good shares, and the Transferors have the right to obtain 515,262 KNDI shares; 3) if the difference between the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is greater than or equal to 40% of its Target Number, the transferee of KNDI has the right to directly subtract 858,770 KNDI shares from the total make good shares, and the Transferors will not have the right to obtain any shares in such year. For the period from July 1, 2021 to September 30, 2022, Jiangxi Huiyi achieved its net profit target. Accordingly, the Transferors will receive 858,770 shares of Kandi’s restrictive common stock as part of the purchase price. 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 Jiangxi Huiyi’s 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, 2022 and December 31, 2021, the Company’s contingent consideration liability to former members of Jiangxi Huiyi was $3,266,000 and $7,812,000, respectively. |
Stock Options
Stock Options | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTIONS | NOTE 20 - STOCK OPTIONS On September 7, 2022, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase 5,000,000 shares of the Company’s common stock, at an exercise price of $2.07 per share, to the Company’s senior employees. The stock options will vest ratably over three years on October 7, 2023, October 7, 2024 and October 7, 2025, respectively, and expire on the tenth anniversary of the grant date. The Company valued the stock options at $$6,704,829 and has amortized the stock compensation expense using the graded vesting method over the service period from September 7, 2022, through October 7, 2025. The value of the stock options was estimated using the Binomial Tree Model with an expected volatility of 79.83%, an expected life of 10 years, a risk-free interest rate of 3.27% and an expected dividend yield of 0.00%. There were $250,673 in stock compensation expenses associated with stock options booked for the three months and nine months ended September 30, 2022. |
Stock Award
Stock Award | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCK AWARD | NOTE 21 - STOCK AWARD In connection with the appointment of Mr. Henry Yu as a member of the Board of Directors (the “Board”), the Board authorized the Company to compensate Mr. Henry Yu with 5,000 shares of Company’s restricted common stock every six months as compensation, beginning in July 2011. As compensation for Mr. Jerry Lewin’s services as a member of the Board, the Board authorized the Company to compensate Mr. Jerry Lewin with 5,000 shares of Company’s restricted common stock every six months, beginning in August 2011. As compensation for Ms. Kewa Luo’s services as the Company’s investor relation officer, the Board authorized the Company to compensate Ms. Kewa Luo with 5,000 shares of the Company’s common stock every six months, beginning in September 2013. 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. On May 10, 2022, 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, 2022 and 2021, 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, 2022 and 2021, the Company recognized $662,615 and $1,452,381 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, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY | NOTE 22 - EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY The Company’s 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 in such investees, it increases equity income (loss) – net in the Company’s consolidated statements of income (loss) and the Company’s carrying value in that investment. Conversely, when the Company records its proportionate share of 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 Former Affiliate Company to Geely for a total consideration of RMB 308 million (approximately $48 million). Zhejiang Provincial Administration for Market Regulation recorded the update of the ownership of Former Affiliate Company 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 $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). The Company accounted for its investments in the Former Affiliate Company under the equity method of accounting. As the equity transfer was completed on March 9, 2021, the Company recorded 22% of the Former 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 Former Affiliate Company for the nine months ended September 30, 2022 and 2021 are as follows: Nine Months Ended September 30, 2022 2021 Investment in the Former Affiliate Company, beginning of the period, $ - $ 28,892,638 Investment decreased in 2021 - (47,702,387 ) Gain from equity sale - 17,734,733 Reversal of prior year reduction in the equity of the Former Affiliate Company - 3,312,023 Company’s share in net loss of Former Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 - (2,684,110 ) Non-controlling interest - 99,590 Prior year unrealized profit realized - - Subtotal - (2,584,520 ) Exchange difference - 347,513 Investment in Former Affiliate Company, end of the period $ - $ - |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 23 - COMMITMENTS AND CONTINGENCIES Guarantees and pledged collateral for bank loans to other parties (1) Guarantees for bank loans On March 15, 2013, the Company entered into a guarantee contract to serve as the guarantor of Nanlong Group Co., Ltd. (“NGCL”) for NGCL’s $2,812,979 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua Branch, for a term from March 15, 2013 to March 15, 2016. NGCL is not related to the Company. Under this guarantee contract, the Company agreed to assume joint liability as the loan guarantor. In April 2017, Shanghai Pudong Development Bank filed a lawsuit against NGCL, the Company and ten other parties in Zhejiang Province People’s Court in Yongkang City, alleging NGCL defaulted on a bank loan borrowed from Shanghai Pudong Development Bank for a principal amount of approximately $2.9 million and demanded that the guarantor bear the liability for compensation. On May 27, 2017, a judicial mediation took place in Yongkang City and parties reached a settlement in mediation, in which the plaintiff agreed NGCL would repay the loan principal and interest in installments. If there were an event of default that NGCL could not repay the loan, the Company may be obligated to bear the liability of defaulted amount. According to the current financial situation of NGCL, the Company does not expect it will incur any losses in connection with this matter. (2) Pledged collateral for bank loans for which the parties other than the Company are the borrowers. As of September 30, 2022 and December 31, 2021, 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. The plaintiff in this case subsequently filed an amended complaint, Kandi moved to dismiss that complaint in January 2022, and the motion was granted in part and denied in part in September 2022. Discovery is ongoing as to the remaining claims and defendants. 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. Discovery is ongoing. 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, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 24 - SEGMENT REPORTING The Company has one operating segment. The Company’s revenue and long-lived assets are primarily derived from and located in China and U.S. The Company does not have manufacturing operations outside of China. The following table sets forth disaggregation of revenue: Three Months Ended 2022 2021 Sales Revenue Sales Revenue Primary geographical markets U.S. and other $ 20,480,662 $ 7,060,320 China 13,192,539 9,735,392 Total $ 33,673,201 $ 16,795,712 Major products EV parts $ 2,624,505 $ 3,166,740 EV products 1,726,681 328,772 Off-road vehicles and associated parts 21,748,245 6,848,448 Electric Scooters, Electric Self-Balancing Scooters and associated parts 1,167,208 6,275,645 Battery exchange equipment and Battery exchange service 71,184 176,107 Lithium-ion cells 6,335,378 - Total $ 33,673,201 $ 16,795,712 Timing of revenue recognition Products transferred at a point in time $ 33,673,201 $ 16,795,712 Total $ 33,673,201 $ 16,795,712 Nine Months Ended 2022 2021 Sales Revenue Sales Revenue Primary geographical markets U.S. and other countries/areas $ 41,663,512 $ 21,108,327 China 37,742,276 41,540,974 Total $ 79,405,788 $ 62,649,301 Major products EV parts $ 6,881,058 $ 16,215,586 EV products 4,553,194 1,061,078 Off-road vehicles and associated parts 42,554,127 17,940,647 Electric Scooters, Electric Self-Balancing Scooters and associated parts 4,511,647 26,671,006 Battery exchange equipment and Battery exchange service 179,848 760,984 Lithium-ion cells 20,725,914 - Total $ 79,405,788 $ 62,649,301 Timing of revenue recognition Products transferred at a point in time $ 79,405,788 $ 62,649,301 Total $ 79,405,788 $ 62,649,301 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 25 - SUBSEQUENT EVENT During October 1, 2022 to November 3, 2022, the Company had repurchased a total of 1,103,763 shares of the common stock at an average stock price of $2.49 per share under the repurchase plan referenced under Item 2 of Part II of this report. |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Customers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Sales Trade Receivable Three Months Ended September 30, September 30, December 31, Major Customers 2022 2022 2021 Customer A 39 % 13 % - Sales Trade Receivable Three Months Ended September 30, September 30, Major Customers 2021 2021 Customer B 14 % 11 % Customer C 19 % 9 % Sales Trade Receivable Nine Months Ended September 30, September 30, December 31, Major Customers 2022 2022 2021 Customer A 19 % 13 % - Sales Trade Receivable Nine Months Ended September 30, September 30, Major Customers 2021 2021 Customer B 17 % 11 % Customer D 11 % - |
Suppliers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Purchases Accounts Payable Three Months Ended September 30, September 30, December 31, Major Suppliers 2022 2022 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 29 % 28 % 11 % Purchases Accounts Payable Three Months Ended September 30, September 30, Major Suppliers 2021 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 36 % 15 % (1) Zhejiang Kandi Technologies owns 10% equity interest of the supplier. Purchases Accounts Payable Nine Months Ended September 30, September 30, December 31, Major Suppliers 2022 2022 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 16 % 28 % 11 % Purchases Accounts Payable Nine Months Ended September 30, September 30, Major Suppliers 2021 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 51 % 15 % (1) Zhejiang Kandi Technologies owns 10% equity interest of the supplier. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | September 30, December 31, 2022 2021 Accounts receivable $ 42,769,603 $ 55,949,582 Less: allowance for doubtful accounts (2,734,642 ) (3,053,277 ) Accounts receivable, net $ 40,034,961 $ 52,896,305 |
Schedule of provision for doubtful accounts | Allowance BALANCE AT DECEMBER 31, 2020 $ 110,269 Provision 1,147,679 Addition of allowance resulted from acquisition of Jiangxi Huiyi 1,763,231 Exchange rate difference 32,098 BALANCE AT DECEMBER 31, 2021 $ 3,053,277 Provision 4,220 Exchange rate difference (322,855 ) BALANCE AT September 30, 2022 $ 2,734,642 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, December 31, 2022 2021 Raw material $ 9,884,309 $ 9,291,441 Work-in-progress 6,533,631 9,116,194 Finished goods * 27,255,948 14,764,338 Inventories $ 43,673,888 $ 33,171,973 * As of September 30, 2022, approximately $11.7 million of inventory of off-road vehicles and EVs held by SC Autosports were pledged as collateral for the $1,450,000 short-term loan. |
Other Receivables (Tables)
Other Receivables (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of other receivables | September 30, December 31, 2022 2021 Fund in the Company’s broker account① 6,082,125 1,587,340 Interest receivable 4,317,183 3,565,657 Loan to third party ② $ 4,219,469 $ - Others 4,674,710 3,748,112 Total other receivables $ 19,293,487 $ 8,901,109 ① As of September 30, 2022 and December 31, 2021, the Company’s other receivable includes $6,082,125 and $1,587,340 of fund deposited in the Company’s broker account for repurchasing of the Company’s common stock. ② As of September 30, 2022, the Company’s other receivable includes $4,219,469 short-term loan lent to a third party with a 6% annual interest rate in order to maximize the use of idled cash. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | September 30, December 31, 2022 2021 At cost: Buildings $ 48,004,289 $ 52,481,460 Machinery and equipment 74,399,574 81,994,596 Office equipment 1,480,986 1,497,461 Motor vehicles and other transport equipment 983,233 1,068,616 Molds and others 10,655,051 11,852,568 135,523,133 148,894,701 Less : Accumulated depreciation (40,614,613 ) (37,317,290 ) Property, plant and equipment, net $ 94,908,520 $ 111,577,411 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill | September 30, December 31, Remaining 2022 2021 Gross carrying amount: Patent 2.75-4.42 years $ 4,791,086 5,000,944 Technology 6.08-9.08 years 9,704,778 10,851,104 14,495,864 15,852,048 Less : Accumulated amortization Patent $ (2,511,726 ) (2,359,212 ) Technology (1,199,032 ) (243,757 ) (3,710,758 ) (2,602,969 ) Intangible assets, net $ 10,785,106 $ 13,249,079 |
Schedule of amortization expenses | Three months ended December 31, 2022 $ 874,429 Years ended December 31, 2023 2,061,687 2024 2,061,687 2025 1,939,157 2026 1,721,303 Thereafter 2,126,843 Total $ 10,785,106 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Land Use Rights, Net [Abstract] | |
Schedule of land use rights | September 30, December 31, 2022 2021 Cost of land use rights $ 3,695,308 $ 4,131,797 Less: Accumulated amortization (851,364 ) (881,461 ) Land use rights, net $ 2,843,944 $ 3,250,336 |
Schedule of amortization expense | Three months ended December 31, 2022 $ 21,764 Years ended December 31, 2023 87,056 2024 87,056 2025 87,056 2026 87,056 Thereafter 2,473,956 Total $ 2,843,944 |
Other Long Term Assets (Tables)
Other Long Term Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Long Term Assets [Abstract] | |
Schedule of other long term assets | September 30, December 31, 2022 2021 Prepayments for land use right (i) $ 3,820,784 4,341,496 Right - of - use asset (ii) 6,277,051 6,308,374 Others 325,526 342,139 Total other long-term asset $ 10,423,361 $ 10,992,009 (i) As of September 30, 2022 and December 31, 2021, the Company’s other long term assets included net value of prepayments for land use right of Hainan facility of $3,820,784 and $4,341,496, respectively. As of September 30, 2022, 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, 2022 and 2021 were $21,436 and $22,741, respectively. The amortization expense for the nine months ended September 30, 2022 and 2021 were $66,865 and $68,216, respectively. (ii) As of September 30, 2022 and December 31, 2021, the Company’s operating lease right-of-use assets in other long term assets included net value of land use right of Jinhua facility acquired in October 2020 and Jiangxi facility acquired in October 2021 of $5,555,997 and $6,308,374, respectively, as well as the amount of $721,054 related to the lease of Hangzhou office starting January 1, 2022. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the three months ended September 30, 2022 and 2021 were $29,682 and $17,499, respectively. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the nine months ended September 30, 2022 and 2021were $92,590 and $52,493, respectively. |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Taxes [Abstract] | |
Schedule of income tax expense exemptions and reductions | September 30, 2022 2021 Tax benefit (holiday) credit $ 1,129,332 $ 5,745,354 Basic net income per share effect $ 0.01 $ 0.08 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases and Right-of-Use-Assets [Abstract] | |
Schedule of information related to operating leases | Nine Months Ended September 30, 2022 2021 Cash payments for operating leases $ 271,839 $ 100,493 |
Schedule of maturities of lease liabilities | Maturity of Lease Liabilities: Lease payable Years ended December 31, $ 2023 209,922 2024 217,689 2025 225,744 |
Equity Method Investment in t_2
Equity Method Investment in the Affiliate Company (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | Nine Months Ended September 30, 2022 2021 Investment in the Former Affiliate Company, beginning of the period, $ - $ 28,892,638 Investment decreased in 2021 - (47,702,387 ) Gain from equity sale - 17,734,733 Reversal of prior year reduction in the equity of the Former Affiliate Company - 3,312,023 Company’s share in net loss of Former Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 - (2,684,110 ) Non-controlling interest - 99,590 Prior year unrealized profit realized - - Subtotal - (2,584,520 ) Exchange difference - 347,513 Investment in Former Affiliate Company, end of the period $ - $ - |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of forth disaggregation of revenue | Three Months Ended 2022 2021 Sales Revenue Sales Revenue Primary geographical markets U.S. and other $ 20,480,662 $ 7,060,320 China 13,192,539 9,735,392 Total $ 33,673,201 $ 16,795,712 Major products EV parts $ 2,624,505 $ 3,166,740 EV products 1,726,681 328,772 Off-road vehicles and associated parts 21,748,245 6,848,448 Electric Scooters, Electric Self-Balancing Scooters and associated parts 1,167,208 6,275,645 Battery exchange equipment and Battery exchange service 71,184 176,107 Lithium-ion cells 6,335,378 - Total $ 33,673,201 $ 16,795,712 Timing of revenue recognition Products transferred at a point in time $ 33,673,201 $ 16,795,712 Total $ 33,673,201 $ 16,795,712 Nine Months Ended 2022 2021 Sales Revenue Sales Revenue Primary geographical markets U.S. and other countries/areas $ 41,663,512 $ 21,108,327 China 37,742,276 41,540,974 Total $ 79,405,788 $ 62,649,301 Major products EV parts $ 6,881,058 $ 16,215,586 EV products 4,553,194 1,061,078 Off-road vehicles and associated parts 42,554,127 17,940,647 Electric Scooters, Electric Self-Balancing Scooters and associated parts 4,511,647 26,671,006 Battery exchange equipment and Battery exchange service 179,848 760,984 Lithium-ion cells 20,725,914 - Total $ 79,405,788 $ 62,649,301 Timing of revenue recognition Products transferred at a point in time $ 79,405,788 $ 62,649,301 Total $ 79,405,788 $ 62,649,301 |
Organization and Principal Ac_2
Organization and Principal Activities (Details) $ in Millions | 1 Months Ended | |
Feb. 15, 2022 USD ($) | Feb. 15, 2022 CNY (¥) | |
Organization and Principal Activities (Details) [Line Items] | ||
Invested amount | $ 4.5 | ¥ 30,000,000 |
Kandi Hainan [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Ownership interest | 66.70% | 66.70% |
Jiangsu Xingchi [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Ownership interest | 33.30% | 33.30% |
Liquidity (Details)
Liquidity (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Liquidity (Details) [Line Items] | |||
Working capital | $ 278,445,446 | ||
Cash and cash equivalents | $ 99,029,118 | 129,223,443 | |
Restricted cash | 40,855,710 | 39,452,564 | $ 23,903,418 |
Deposits amount | 70,324,477 | $ 55,041,832 | |
Short-term bank loans | 7,800,000 | ||
Maximum [Member] | |||
Liquidity (Details) [Line Items] | |||
Working capital | $ 252,894,035 | ||
Percentage of annual certificate of deposit | 3.99% | ||
Minimum [Member] | |||
Liquidity (Details) [Line Items] | |||
Working capital | $ 25,551,411 | ||
Percentage of annual certificate of deposit | 3.15% |
Principles of Consolidation (De
Principles of Consolidation (Details) | 9 Months Ended | ||||
Sep. 30, 2022 | Mar. 14, 2022 | Feb. 15, 2022 | Mar. 09, 2021 | Feb. 18, 2021 | |
Zhejiang Kandi Technologies [Member] | Kandi New Energy [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage owned in subsidiary | 50% | ||||
Percentage of economic benefits, voting rights and residual interests | 100% | ||||
Zhejiang Kandi Technologies [Member] | Kandi Hainan [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage owned in subsidiary | 45% | ||||
Mr. Hu Xiaoming [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage owned in subsidiary | 50% | ||||
Mr. Hu Xiaoming [Member] | Kandi New Energy [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage owned in subsidiary | 50% | ||||
Kandi New Energy [Member] | Kandi Hainan [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage owned in subsidiary | 55% | ||||
Kandi Hainan [Member] | Hainan Kandi Holding [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage owned in subsidiary | 66.70% | ||||
Jiangsu Xingchi [Member] | Hainan Kandi Holding [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage owned in subsidiary | 33.30% | ||||
Jiangsu Xingchi [Member] | Hainan Kandi Holding [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage owned in subsidiary | 33.30% | ||||
Equity Method Investees [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage of acquisition of equity | 22% | ||||
Geely [Member] | |||||
Principles of Consolidation (Details) [Line Items] | |||||
Percentage of acquisition of equity | 22% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Customer Concentration Risk [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentration risk, percentage | 10% | 10% | 10% | 10% |
Suppliers [Member] | ||||
Concentrations (Details) [Line Items] | ||||
Concentration risk, percentage | 10% | 10% | 10% | 10% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of concentration percentage | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Customer A [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 39% | 19% | |||
Customer A [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 13% | ||||
Customer B [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 14% | 17% | |||
Customer B [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11% | ||||
Customer C [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 19% | ||||
Customer C [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 9% | ||||
Customer D [Member] | Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11% | ||||
Customer D [Member] | Trade Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Purchases [Member] | ||||||
Concentrations (Details) - Schedule of concentration percentage [Line Items] | ||||||
Concentration percentage | [1] | 29% | 36% | 16% | 51% | |
Accounts Payable [Member] | ||||||
Concentrations (Details) - Schedule of concentration percentage [Line Items] | ||||||
Concentration percentage | [1] | 28% | 15% | 11% | ||
[1]Zhejiang Kandi Technologies owns 10% equity interest of the supplier. |
Earnings (loss) Per Share (Deta
Earnings (loss) Per Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 07, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Earnings (loss) Per Share (Details) [Line Items] | |||
Dilutive effects shares | 144,231 | 98,291 | |
Options [Member] | |||
Earnings (loss) Per Share (Details) [Line Items] | |||
Diluted earnings per share | 900,000 | ||
Warrants [Member] | |||
Earnings (loss) Per Share (Details) [Line Items] | |||
Diluted earnings per share | 8,131,332 | ||
Board of Directors [Member] | |||
Earnings (loss) Per Share (Details) [Line Items] | |||
Grant of stock option shares | 5,000,000 | ||
Exercise price (in Dollars per share) | $ 2.07 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Accounts Receivable Abstract | ||
Accounts receivable | $ 42,769,603 | $ 55,949,582 |
Less: allowance for doubtful accounts | (2,734,642) | (3,053,277) |
Accounts receivable, net | $ 40,034,961 | $ 52,896,305 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of provision for doubtful accounts - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Provision For Doubtful Accounts Abstract | ||
BALANCE | $ 3,053,277 | $ 110,269 |
Provision | 4,220 | 1,147,679 |
Addition of allowance resulted from acquisition of Jiangxi Huiyi | 1,763,231 | |
Exchange rate difference | (322,855) | 32,098 |
BALANCE | $ 2,734,642 | $ 3,053,277 |
Inventories (Details)
Inventories (Details) | Sep. 30, 2022 USD ($) |
Off-Roads [Member] | |
Inventories (Details) [Line Items] | |
Inventory | $ 11,700,000 |
SC Autosports [Member] | |
Inventories (Details) [Line Items] | |
Short-term loan | $ 1,450,000 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule of Inventories [Abstract] | |||
Raw material | $ 9,884,309 | $ 9,291,441 | |
Work-in-progress | 6,533,631 | 9,116,194 | |
Finished goods | [1] | 27,255,948 | 14,764,338 |
Inventories | $ 43,673,888 | $ 33,171,973 | |
[1] As of September 30, 2022, approximately $11.7 million of inventory of off-road vehicles and EVs held by SC Autosports were pledged as collateral for the $1,450,000 short-term loan. |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Fund deposited | $ 6,082,125 | $ 1,587,340 |
Short term loan | $ 4,219,469 | |
Percentage of annual interest rate | 6% |
Other Receivables (Details) - S
Other Receivables (Details) - Schedule of other receivables - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule of Other Receivables [Abstract] | |||
Fund in the Company’s broker account | [1] | $ 6,082,125 | $ 1,587,340 |
Interest receivable | 4,317,183 | 3,565,657 | |
Loan to third party | [2] | 4,219,469 | |
Others | 4,674,710 | 3,748,112 | |
Total other receivables | $ 19,293,487 | $ 8,901,109 | |
[1]As of September 30, 2022 and December 31, 2021, the Company’s other receivable includes $6,082,125 and $1,587,340 of fund deposited in the Company’s broker account for repurchasing of the Company’s common stock.[2]As of September 30, 2022, the Company’s other receivable includes $4,219,469 short-term loan lent to a third party with a 6% annual interest rate in order to maximize the use of idled cash. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) m² | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) m² shares | Sep. 30, 2021 USD ($) | |
Property, Plant and Equipment, Net (Details) [Line Items] | ||||
Production capacity with an annual output (in Shares) | shares | 100,000 | |||
Depreciation expenses | $ | $ 2,510,531 | $ 2,221,175 | $ 7,796,048 | $ 5,987,730 |
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, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 135,523,133 | $ 148,894,701 |
Less : Accumulated depreciation | (40,614,613) | (37,317,290) |
Property, plant and equipment, net | 94,908,520 | 111,577,411 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 48,004,289 | 52,481,460 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 74,399,574 | 81,994,596 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,480,986 | 1,497,461 |
Motor vehicles and other transport equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 983,233 | 1,068,616 |
Molds and Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,655,051 | $ 11,852,568 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses for intangible assets | $ 482,010 | $ 165,467 | $ 1,489,579 | $ 165,467 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Gross carrying amount of intangible assets | $ 14,495,864 | $ 15,852,048 |
Less : Accumulated amortization | (3,710,758) | (2,602,969) |
Intangible assets, net | 10,785,106 | 13,249,079 |
Patent [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Gross carrying amount of intangible assets | 4,791,086 | 5,000,944 |
Less : Accumulated amortization | $ (2,511,726) | (2,359,212) |
Patent [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 2 years 9 months | |
Patent [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 4 years 5 months 1 day | |
Technology [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Gross carrying amount of intangible assets | $ 9,704,778 | 10,851,104 |
Less : Accumulated amortization | $ (1,199,032) | $ (243,757) |
Technology [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 6 years 29 days | |
Technology [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 9 years 29 days |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of amortization expenses | Sep. 30, 2022 USD ($) |
Schedule Of Amortization Expenses Abstract | |
Three months ended December 31, 2022 | $ 874,429 |
Years ended December 31, | |
2023 | 2,061,687 |
2024 | 2,061,687 |
2025 | 1,939,157 |
2026 | 1,721,303 |
Thereafter | 2,126,843 |
Total | $ 10,785,106 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Land Use Rights, Net [Abstract] | ||||
Amortization expenses | $ 21,764 | $ 23,093 | $ 67,889 | $ 69,265 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - Schedule of land use rights - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Land Use Rights, Net [Abstract] | ||
Cost of land use rights | $ 3,695,308 | $ 4,131,797 |
Less: Accumulated amortization | (851,364) | (881,461) |
Land use rights, net | $ 2,843,944 | $ 3,250,336 |
Land Use Rights, Net (Details_2
Land Use Rights, Net (Details) - Schedule of amortization expense | Sep. 30, 2022 USD ($) |
Schedule of Amortization Expenses [Abstract] | |
Three months ended December 31, 2022 | $ 21,764 |
Years ended December 31, | |
2023 | 87,056 |
2024 | 87,056 |
2025 | 87,056 |
2026 | 87,056 |
Thereafter | 2,473,956 |
Total | $ 2,843,944 |
Other Long Term Assets (Details
Other Long Term Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jan. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Other Long Term Assets (Details) [Line Items] | ||||||
Amortization expense | $ 21,764 | $ 23,093 | $ 67,889 | $ 69,265 | ||
Lease, amount | $ 721,054 | |||||
Hainan Facility [Member] | ||||||
Other Long Term Assets (Details) [Line Items] | ||||||
Prepayments for land use right | 3,820,784 | 3,820,784 | $ 4,341,496 | |||
Amortization expense | 21,436 | 22,741 | 66,865 | 68,216 | ||
Jinhua Facility [Member] | ||||||
Other Long Term Assets (Details) [Line Items] | ||||||
Amortization expense | 29,682 | $ 17,499 | 92,590 | $ 52,493 | ||
Net value of land use right | $ 5,555,997 | $ 5,555,997 | $ 6,308,374 |
Other Long Term Assets (Detai_2
Other Long Term Assets (Details) - Schedule of other long term assets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule of Other Long Term Assets [Abstract] | |||
Prepayments for land use right | [1] | $ 3,820,784 | $ 4,341,496 |
Right - of - use asset | [2] | 6,277,051 | 6,308,374 |
Others | 325,526 | 342,139 | |
Total other long-term asset | $ 10,423,361 | $ 10,992,009 | |
[1] As of September 30, 2022 and December 31, 2021, the Company’s other long term assets included net value of prepayments for land use right of Hainan facility of $3,820,784 and $4,341,496, respectively. As of September 30, 2022, 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, 2022 and 2021 were $21,436 and $22,741, respectively. The amortization expense for the nine months ended September 30, 2022 and 2021 were $66,865 and $68,216, respectively. As of September 30, 2022 and December 31, 2021, the Company’s operating lease right-of-use assets in other long term assets included net value of land use right of Jinhua facility acquired in October 2020 and Jiangxi facility acquired in October 2021 of $5,555,997 and $6,308,374, respectively, as well as the amount of $721,054 related to the lease of Hangzhou office starting January 1, 2022. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the three months ended September 30, 2022 and 2021 were $29,682 and $17,499, respectively. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the nine months ended September 30, 2022 and 2021were $92,590 and $52,493, respectively. |
Taxes (Details)
Taxes (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes (Details) [Line Items] | ||||
Applicable corporate income tax rate | 25% | |||
Reduced income tax rate | 15% | |||
Corporate income tax | 25% | 25% | ||
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, 2022 and 2021 were a tax benefit of 9.53% on a reported loss before taxes of approximately $2.7 million, a tax expense of 24.85% on a reported income before taxes of approximately $35.5 million, respectively. | |||
Income tax benefit | $ (255,232) | $ 8,815,409 | ||
Indefinite carryforward period | $ 500,000 | |||
Hainan Kandi Holding [Member] | ||||
Taxes (Details) [Line Items] | ||||
Reduced income tax rate | 15% | |||
Subsidiaries [Member] | ||||
Taxes (Details) [Line Items] | ||||
Corporate income tax | 25% | |||
PRC [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operating loss carried forward term | 5 years | |||
PRC, Hong Kong and U.S. [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operation loss | $ 8,200,000 | $ 3,400,000 | ||
High and New Technology Enterprise [Member] | Minimum [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operation loss | $ 100,000 | |||
High and New Technology Enterprise [Member] | Maximum [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operation loss | 7,500,000 | |||
Hong Kong [Member] | ||||
Taxes (Details) [Line Items] | ||||
Indefinite carryforward period | $ 100,000 | |||
HNTE [Member] | PRC [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operating loss carried forward term | 10 years |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax expense exemptions and reductions - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Income Tax Expense Exemptions And Reductions [Abstract] | ||
Tax benefit (holiday) credit | $ 1,129,332 | $ 5,745,354 |
Basic net income per share effect | $ 0.01 | $ 0.08 |
Leases (Details)
Leases (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2021 | Oct. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jan. 31, 2020 | |
Leases (Details) [Line Items] | |||||||
Lease payment, description | The Company has entered into a lease for Hangzhou office, with a term of 48 months from January 1, 2022 to December 31, 2025. The Company recorded operating lease assets and operating lease liabilities on January 1, 2022, with a remaining lease term of 48 months and discount rate of 3.70%. The annual lease payment for 2022 was prepaid as of January 1, 2022. The Company has prepaid the first year of lease and deposit amount of $253,337. | ||||||
Discount rate | 4.25% | ||||||
Acquired for land use | $ 2,800,000 | ||||||
Other long term assets | $ 6,277,051 | $ 6,277,051 | |||||
Lease liability | 653,355 | 653,355 | |||||
Operating lease expense | $ 87,146 | $ 17,499 | $ 271,839 | $ 100,493 | |||
Lease [Member] | |||||||
Leases (Details) [Line Items] | |||||||
Land use rights of gross value | $ 3,500,000 | ||||||
SC Autosports [Member] | Corporate Office Lease [Member] | |||||||
Leases (Details) [Line Items] | |||||||
Lease payment, description | The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. |
Leases (Details) - Schedule of
Leases (Details) - Schedule of information related to operating leases - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Information Related to Operating Leases [Abstract] | ||
Cash payments for operating leases | $ 271,839 | $ 100,493 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities | Sep. 30, 2022 USD ($) |
Schedule of Maturities of Lease Liabilities [Abstract] | |
2023 | $ 209,922 |
2024 | 217,689 |
2025 | $ 225,744 |
Contingent Consideration Liab_2
Contingent Consideration Liability (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 03, 2018 | Oct. 31, 2021 USD ($) shares | Dec. 31, 2018 | Sep. 30, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Oct. 31, 2021 CNY (¥) shares | |
Contingent Consideration Liability (Details) [Line Items] | ||||||
Cash on hand | $ 7,900,000 | ¥ 50 | ||||
Additional shares | 858,770 | |||||
Net income-based milestones, term | 3 years | |||||
Supplementary agreement, description | Pursuant to the supplementary agreement, the Transferors have the right to obtain 858,770 KNDI shares in each of the below-mentioned periods, provided that Jiangxi Huiyi achieves a net income of 1) RMB 8 million yuan or more during the period from July 1, 2021 to September 30, 2022 (“Period I”); 2) RMB 15 million yuan or more during the period from October 1, 2022 to September 30, 2023 (“Period II”); 3) RMB 15 million yuan or more during the period from October 1, 2023 to September 30, 2024 (“Period III”). If the net income of Jiangxi Huiyi fails to reach the respective target number in any of the three periods, the shares that the Transferors are entitled to obtain in that period will be adjusted accordingly: 1) if the difference between the net income in each Period and its Target Number is less than or equivalent to 20% of its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III), the transferee or KNDI has right to directly subtract 171,754 KNDI shares from the total make good shares, and the Transferor are entitled to obtain 687,016 KNDI shares; 2) if the difference between the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is more than 20% of its Target Number but less than 40% of its Target Number, the transferee or KNDI has the right to directly subtract 343,508 KNDI shares from the total make good shares, and the Transferors have the right to obtain 515,262 KNDI shares; 3) if the difference between the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is greater than or equal to 40% of its Target Number, the transferee of KNDI has the right to directly subtract 858,770 KNDI shares from the total make good shares, and the Transferors will not have the right to obtain any shares in such year. | |||||
Common Stock [Member] | ||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||
Additional shares | 2,576,310 | 2,576,310 | ||||
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 registered 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 KSBS 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 million (approximately $8 million) 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. | ||||
SC Autosports [Member] | ||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||
Percentage of acquisition of equity | 100% | 100% | ||||
Jiangxi Huiyi [Member] | ||||||
Contingent Consideration Liability (Details) [Line Items] | ||||||
Contingent consideration liability | $ | $ 3,266,000 | $ 7,812,000 |
Stock Options (Details)
Stock Options (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 07, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Stock Options (Details) [Line Items] | |||
Stock options description | The stock options will vest ratably over three years on October 7, 2023, October 7, 2024 and October 7, 2025, respectively, and expire on the tenth anniversary of the grant date. | ||
Stock compensation expense | $ 6,704,829 | ||
Expected volatitity price | 79.83% | ||
Expected life | 10 years | ||
Risk free interest rate | 3.27% | ||
Expected dividend yield rate | 0% | ||
Stock compensation expenses of stock option | $ 250,673 | $ 250,673 | |
Board of Directors Chairman [Member] | |||
Stock Options (Details) [Line Items] | |||
Grant of stock option shares | 5,000,000 | ||
Excercise price | $ 2.07 |
Stock Award (Details)
Stock Award (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
May 10, 2022 | May 15, 2020 | May 09, 2020 | Apr. 30, 2021 | Apr. 30, 2019 | Apr. 18, 2018 | Sep. 26, 2016 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Award (Details) [Line Items] | |||||||||||
Expenses for stock compensation (in Dollars) | $ 22,925 | $ 22,925 | $ 662,615 | $ 1,452,381 | |||||||
2008 Plan [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Number of shares of common stock grant to key employees | 250,000 | ||||||||||
Granted sharesto certain management members | 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 | ||||||||||
Mr. Jehn Ming Lim [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Shares of common stock compensate | 6,000 | ||||||||||
Certain Management Members and Employees [Member] | |||||||||||
Stock Award (Details) [Line Items] | |||||||||||
Granted sharesto certain management members | 238,600 | 238,600 | 238,600 | 238,600 |
Equity Method Investment in t_3
Equity Method Investment in the Affiliate Company (Details) $ in Millions | 1 Months Ended | ||||||
Sep. 10, 2021 USD ($) | Sep. 10, 2021 CNY (¥) | Mar. 16, 2021 USD ($) | Mar. 16, 2021 CNY (¥) | Mar. 09, 2021 | Feb. 18, 2021 USD ($) | Feb. 18, 2021 CNY (¥) | |
Equity Transfer Agreement [Member] | |||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||
Total consideration | $ 48 | ¥ 308,000,000 | |||||
First Half [Member] | |||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||
Equity transfer payment | $ 24 | ¥ 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] | |||||||
Equity interests percentage | 22% | 22% | |||||
Affiliate [Member] | |||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | |||||||
Equity interests percentage | 22% |
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, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment in the Former Affiliate Company, beginning of the period, | $ 28,892,638 | |
Investment decreased in 2021 | (47,702,387) | |
Gain from equity sale | 17,734,733 | |
Reversal of prior year reduction in the equity of the Former Affiliate Company | 3,312,023 | |
Company’s share in net loss of Former Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 | (2,684,110) | |
Non-controlling interest | 99,590 | |
Prior year unrealized profit realized | ||
Subtotal | (2,584,520) | |
Exchange difference | 347,513 | |
Investment in Former Affiliate Company, end of the period |
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, 2022 | Sep. 30, 2021 | |
Affiliated Company [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Affiliate ownership | 22% | 22% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | |
Mar. 15, 2013 | Apr. 30, 2017 | |
Shanghai Pudong Development Bank [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Principal amount | $ 2.9 | |
Nanlong Group Co., Ltd [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Description of loans period | On March 15, 2013, the Company entered into a guarantee contract to serve as the guarantor of Nanlong Group Co., Ltd. (“NGCL”) for NGCL’s $2,812,979 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua Branch, for a term from March 15, 2013 to March 15, 2016. NGCL is not related to the Company. |
Segment Reporting (Details)
Segment Reporting (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of forth disaggregation of revenue - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Primary geographical markets [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | $ 33,673,201 | $ 16,795,712 | $ 79,405,788 | $ 62,649,301 |
Major products [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 33,673,201 | 16,795,712 | 79,405,788 | 62,649,301 |
Timing of revenue recognition [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 33,673,201 | 16,795,712 | 79,405,788 | 62,649,301 |
U.S. and other countries/areas [Member] | Primary geographical markets [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 20,480,662 | 7,060,320 | 41,663,512 | 21,108,327 |
China [Member] | Primary geographical markets [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 13,192,539 | 9,735,392 | 37,742,276 | 41,540,974 |
EV parts [Member] | Major products [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 2,624,505 | 3,166,740 | 6,881,058 | 16,215,586 |
EV products [Member] | Major products [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 1,726,681 | 328,772 | 4,553,194 | 1,061,078 |
Off-road vehicles and associated parts [Member] | Major products [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 21,748,245 | 6,848,448 | 42,554,127 | 17,940,647 |
Electric Scooters, Electric Self-Balancing Scooters and associated parts [Member] | Major products [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 1,167,208 | 6,275,645 | 4,511,647 | 26,671,006 |
Battery exchange equipment and Battery exchange service [Member] | Major products [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 71,184 | 176,107 | 179,848 | 760,984 |
Lithium-ion cells [Member] | Major products [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | 6,335,378 | 20,725,914 | ||
Products transferred at a point in time [Member] | Timing of revenue recognition [Member] | ||||
Segment Reporting (Details) - Schedule of forth disaggregation of revenue [Line Items] | ||||
Revenues | $ 33,673,201 | $ 16,795,712 | $ 79,405,788 | $ 62,649,301 |
Subsequent Event (Details)
Subsequent Event (Details) | 1 Months Ended |
Nov. 03, 2022 $ / shares shares | |
Subsequent Events [Abstract] | |
Repurchase of shares | shares | 1,103,763 |
Stock price per share | $ / shares | $ 2.49 |