Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 16, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Lithium & Boron Technology, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 185,986,370 | |
Amendment Flag | false | |
Entity Central Index Key | 0001384135 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and equivalents | $ 922,140 | $ 972,066 |
Accounts receivable, net | 233,609 | 223,194 |
Prepaid expense | 3,550 | 0 |
Notes receivable | 73,045 | 96,367 |
Other receivables | 113,468 | 60,226 |
Advances to suppliers, net | 359,395 | 242,311 |
Due from related parties | 2,371,479 | 1,771,789 |
Inventories | 522,138 | 1,179,387 |
Total current assets | 4,598,824 | 4,545,340 |
NONCURRENT ASSETS | ||
Due from related party | 1,401,922 | 1,411,891 |
Property and equipment, net | 1,422,095 | 1,488,783 |
Construction in progress | 783,141 | 141,846 |
Total noncurrent assets | 3,607,158 | 3,042,520 |
TOTAL ASSETS | 8,205,982 | 7,587,860 |
CURRENT LIABILITIES | ||
Accounts payable | 422,468 | 525,775 |
Unearned revenue | 189,084 | 64,190 |
Accrued liabilities and other payables | 1,544,513 | 1,522,347 |
Taxes payable | 190,965 | 106,651 |
Due to related parties | 1,852,818 | 1,114,662 |
Total current liabilities | 4,199,848 | 3,333,625 |
DEFERRED INCOME | 1,194,132 | 1,253,046 |
TOTAL LIABILITIES | 5,393,980 | 4,586,671 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $0.001 par value; 500,000,000 shares authorized, 185,968,370 shares issued and outstanding | 185,968 | 185,968 |
Paid-in capital deficiency | (6,666,351) | (6,666,351) |
Statutory reserve | 198,463 | 177,843 |
Accumulated other comprehensive income | 190,565 | 223,922 |
Retained earnings | 8,167,392 | 8,328,736 |
TOTAL COMPANY STOCKHOLDERS' EQUITY | 2,076,037 | 2,250,118 |
Noncontrolling interest | 735,965 | 751,071 |
TOTAL EQUITY | 2,812,002 | 3,001,189 |
TOTAL LIABILITIES AND EQUITY | $ 8,205,982 | $ 7,587,860 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 185,968,370 | 185,968,370 |
Common stock, shares outstanding | 185,968,370 | 185,968,370 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 1,828,380 | $ 1,010,498 |
Cost of sales | 1,696,118 | 930,744 |
Gross profit | 132,262 | 79,754 |
Operating expenses | ||
Selling | 23,055 | 56,205 |
Bad debts | 0 | 2,568 |
General and administrative | 274,371 | 284,434 |
Total operating expenses | 297,426 | 343,207 |
Loss from operations | (165,164) | (263,453) |
Non-operating income | ||
Financial expense | (189) | 0 |
Other expenses | (60) | (14,349) |
Interest income | 477 | 33 |
Subsidy income | 50,737 | 47,141 |
Total non-operating income, net | 50,965 | 32,825 |
Loss before income tax | (114,199) | (230,628) |
Income tax expense | 11,458 | 0 |
Loss before noncontrolling interest | (125,657) | (230,628) |
Less: loss attributable to noncontrolling interest | (9,933) | 0 |
Net loss to the Company | (115,724) | (230,628) |
Other comprehensive item | ||
Foreign currency translation loss attributable to the Company | (33,357) | (59,196) |
Foreign currency translation loss attributable to noncontrolling interest | (5,173) | 0 |
Comprehensive loss attributable to the Company | (149,081) | (289,824) |
Comprehensive loss attributable to noncontrolling interest | $ (15,106) | $ 0 |
Basic and diluted weighted average shares outstanding (in Shares) | 185,968,370 | 185,968,370 |
Basic and diluted net loss per share (in Dollars per share) | $ 0 | $ 0 |
STATEMENTS OF CHANGES IN CONSOL
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings, Appropriated [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2019 | $ 185,968 | $ (6,666,351) | $ 71,252 | $ (14,600) | $ 8,765,225 | $ 2,341,494 | |
Balance (in Shares) at Dec. 31, 2019 | 185,968,370 | ||||||
Net income (loss) | (230,628) | (230,628) | |||||
Dividend accrued | (25,000) | (25,000) | |||||
Foreign currency translation loss | (59,196) | (59,196) | |||||
Balance at Mar. 31, 2020 | $ 185,968 | (6,666,351) | 71,252 | (73,796) | 8,509,597 | 2,026,670 | |
Balance (in Shares) at Mar. 31, 2020 | 185,968,370 | ||||||
Balance at Dec. 31, 2020 | $ 185,968 | (6,666,351) | 177,843 | 223,922 | 8,328,736 | $ 751,071 | $ 2,250,118 |
Balance (in Shares) at Dec. 31, 2020 | 185,968,370 | 185,968,370 | |||||
Net income (loss) | (115,724) | (9,933) | $ (115,724) | ||||
Statutory reserve | 20,620 | (20,620) | |||||
Dividend accrued | (25,000) | (25,000) | |||||
Foreign currency translation loss | (33,357) | (5,173) | (33,357) | ||||
Balance at Mar. 31, 2021 | $ 185,968 | $ (6,666,351) | $ 198,463 | $ 190,565 | $ 8,167,392 | $ 735,965 | $ 2,076,037 |
Balance (in Shares) at Mar. 31, 2021 | 185,968,370 | 185,968,370 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Loss including noncontrolling interest | $ (125,657) | $ (230,628) |
Adjustments to reconcile loss including noncontrolling interest to net cash provided by operating activities: | ||
Depreciation | 90,534 | 76,346 |
Provision for bad debts | 0 | 2,568 |
Changes in deferred income | (50,737) | (47,141) |
(Increase) decrease in assets and liabilities: | ||
Accounts receivable | (12,152) | 84,486 |
Other receivables | (56,440) | (19,856) |
Advances to suppliers | (120,386) | (44,268) |
Inventories | 657,614 | 606,756 |
Prepaid expense | (1,542) | (15,618) |
Accounts payable | (77,986) | (192,472) |
Unearned revenue | 127,027 | (10,102) |
Accrued liabilities and other payables | (2,351) | 32,719 |
Taxes payable | 86,206 | 31,882 |
Net cash provided by operating activities | 514,130 | 274,672 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (33,606) | 0 |
Construction in progress | (650,901) | 0 |
Net cash used in investing activities | (684,507) | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Changes in due from related parties | (620,402) | (191,744) |
Changes in due to related parties | 747,140 | 112,986 |
Net cash provided by (used in) financing activities | 126,738 | (78,758) |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND EQUIVALENTS | (6,287) | (5,393) |
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS | (49,926) | 190,521 |
CASH AND EQUIVALENTS, BEGINNING OF PERIOD | 972,066 | 160,024 |
CASH AND EQUIVALENTS, END OF PERIOD | 922,140 | 350,545 |
Supplemental cash flow data: | ||
Income tax paid | 0 | 0 |
Interest paid | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations [Text Block] | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Lithium & Boron Technology, Inc., (the “Company” or “Lithium Tech”), formerly known as SmartHeat, Inc. (“SmartHeat”), was incorporated August 4, 2006, in the State of Nevada. The Company currently produces boric acid in the PRC and plans to expand its manufacturing facilities through a joint venture (“JV”) to produce up to 30,000 tonnes of lithium carbonate annually for the electric vehicle battery market in China, subject to funding. On December 31, 2018 (the “Closing Date”), the Company entered into and closed a Share Exchange Agreement and Plan of Reorganization, as amended on January 24, 2019 (the “Share Exchange Agreement”) with Mid-Heaven Sincerity International Resources Investment Co., Ltd (Mid-heaven BVI) and its shareholders Mao Zhang, Jian Zhang, and Ying Zhao, constituting all the shareholders of Mid-heaven BVI (the “Mid-heaven Shareholders”). Pursuant to the terms of the Share Exchange Agreement, the shareholders of Mid-Heaven BVI delivered all issued and outstanding shares of capital stock of Mid-Heaven BVI to the Company, for 106,001,971 shares of the Company’s Common Stock. Mid-heaven BVI, through two subsidiaries, Qinghai Mid-Heaven Sincerity Technology Co., Ltd (“Sincerity”) and Qinghai Mid-Heaven Sincerity Salt-Lake R&D Co., Ltd (“Salt-Lake”) owns 100% of Qing Hai Mid-Heaven Boron & Lithium Technology Company, Ltd. (“Technology”). The acquisition was structured as a tax-free reorganization. As a result of the Share Exchange Agreement, Mid-heaven BVI’s shareholders own approximately 57% of the combined company. For accounting purposes, the transaction was accounted for as a reverse acquisition of the Company by Mid-heaven BVI. The main operating entity, Technology was incorporated December 18, 2018. The business of Technology was carved out of the business of Qinghai Zhongtian Boron & Lithium Mining Co., Ltd (“Qinghai Mining”) on December 20, 2018. Qinghai Mining was founded March 6, 2001, and is engaged in the manufacture and wholesale sale of boric acid and related compounds for industrial and consumer usage. Technology obtains its raw material minerals exclusively from Qinghai Mining and currently processes boric acid by crushing and processing ore. In December 2019, a novel strain of coronavirus (COVID-19) was reported and the World Health Organization declared the outbreak to constitute a “Public Health Emergency of International Concern.” This contagious disease outbreak, which continues to spread to additional countries, and disrupts supply chains and affecting production and sales across a range of industries as a result of quarantines, facility closures, and travel and logistics restrictions in connection with the outbreak. The COVID-19 outbreak impacted the Company’s operations for the first quarter of 2020. However, as a result of PRC government’s effort on disease control, most cities in China were reopened in April 2020, the outbreak in China is under the control; and the Company’s production and sales has started back to normal since April 2020. Since April 2020 to date, there were some new COVID-19 cases discovered in a few provinces of China as of today, however, the number of new cases are not significant due to PRC government’s strict control, and the Company does not believe the new cases would have a significant impact on the Company’s operations in 2021. On March 27, 2020, Technology entered into an Investment Cooperation Agreement, Memorandum of Cooperation and Licensing Agreement with Xi'an Jinzang Membrane Environmental Protection Technology Co., Ltd. (Xi’an Jinzang) to produce up to 30,000 tonnes of battery grade lithium carbonate annually, subject to funding. On April 15, 2020, the parties formed a JV Zhonglixinmo Technology Co., Ltd (“Qinghai Zhongli” or JV) to process brine supplied by Qinghai Technology. Technology owns 51% of the JV and Xi’ Jinzang owns the remaining 49%. The JV cooperation agreement calls for a capital contribution of RMB 140 million ($19,746,000), to be paid in three phases according to the project construction progress: RMB 36 million ($5,077,000) to be paid within 10 days from the date of registration and establishment of the JV, RMB 72 million ($10,155,000) to be paid before July 31, 2020, and RMB 32 million ($4,513,000) to be paid before October 31,2020. The JV’s shareholders are required to contribute capital in accordance with their respective shareholding ratio. Each party made an initial capital contribution of RMB 5 million ($0.71 million) in April 2020. As of the date of this report, the parties have not made all capital contributions on the dates due, pending financing by the Company, as the capital contribution amount and timing of making the capital contribution can be adjusted anytime upon both parties’ mutual consent. During the construction and operation of the project, all parties agree to actively raise construction funds by means of bank loans, self-owned funds, etc. if the funds are not raised in time, the term of capital contribution can be extended upon consensus of all parties. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going Concern The accompanying consolidated financial statements (“CFS”) were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the accompanying CFS, the Company had loss of $115,724 and $230,628 for the three months ended March 31, 2021 and 2020, respectively, which raises substantial doubt about the Company’s ability to continue as a going concern. In addition to current boric acid production business, the Company plans to produce lithium carbonate for electric vehicle batteries through a recently established JV from brine that is provided by Technology. The Company will absorb costs for the brine it provides to the JV which is pumped out directly from the nearby Salt Lake. Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can be no assurance to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The CFS do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern. Basis of Presentation The CFS were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The interim consolidated financial information as of March 31, 2021 and for the three-month periods ended March 31, 2021 and 2020 was prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in CFS prepared in accordance with U.S. GAAP were not included. The interim consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, previously filed with the SEC on April 15, 2021. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of March 31, 2021, its consolidated results of operations and cash flows for the three months ended March 31, 2021 and 2020, as applicable, were made. Principles of Consolidation For the three months ended March 31, 2021, the accompanying CFS include the accounts of the Company’s US parent, and Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake, Technology and Qinghai Zhongli, which are collectively referred to as the “Company.” All significant intercompany accounts and transactions were eliminated in consolidation. Use of Estimates In preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. Cash and Equivalents Cash includes cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. Accounts Receivable, net The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Based on historical collection activity, the Company had allowance of $19,631 and $19,770 at March 31, 2021 and December 31, 2020, respectively. Advances to Suppliers, net The Company makes advances to certain vendors to purchase raw material, tools and equipment for production. The advances are interest-free and unsecured. As of March 31, 2021 and December 31, 2020, the Company had gross advance to suppliers of $362,122 and $245,058 respectively, and the Company had allowance for advances to suppliers of $2,727 and $2,747, respectively. In addition, as of March 31, 2021, advances to suppliers also included a prepayment of $30,436 to a third-party company for purchasing equipment and a land use right; total purchase price is $167,395, the remaining $136,959 will be paid within three days after the completion of the land certificate and related deed transfer, or the prepayment will be returned to the Company if failure to obtain the land use certificate and related deed. As of this report date, the Company is still waiting for relevant authorities to process the title transfer of the land use right. Inventories, net Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Management compares the cost of inventories with the net realizable value and an allowance is made to write down inventories to market value, if lower. Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; major additions, repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 3% - 10% salvage value and estimated lives as follows: Buildings 20 years Structures and improvements 4-20 years Vehicles 4-8 years Office equipment 5 years Production equipment 3-10 years Equipment upgrade 5 years Depreciation of plant, property and equipment attributable to manufacturing is capitalized as part of inventories, and expensed to cost of sales when inventories are sold. Impairment of Long-Lived Assets Long-lived assets, which include tangible assets, such as property and equipment, goodwill and other intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized based on the excess of the carrying amount over the fair value of the assets. Fair value generally is determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of March 31, 2021 and December 31, 2020, there was no significant impairments of its long-lived assets. Effective January 1, 2020, the Company adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Deferred Income Deferred income consists primarily of government grants and subsidies for supporting the Company’s technology innovation and transformation of boric acid, lithium and magnesium sulfate projects. The Company uses most of the subsidies to purchase machinery and equipment. Deferred income is amortized to revenue (other income) over the life of the assets for which the grant and subsidy was used. Subsidies for declared project fund require government inspection to ensure proper use of the funds for the designated project. Unearned Revenue The Company records payments received from customers in advance of their orders as unearned revenue. These orders normally are delivered (usually within one month) based upon contract terms and customer demand. Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive for those goods. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs typically upon receipts of the goods by customers. Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. VAT taxes are not affected by the income tax holiday. Cost of Sales Cost of sales consists primarily of material costs and direct labor and manufacturing overhead attributable to the production of the products. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of sales. Research and Development Costs Research and development (“R&D”) costs are expensed as incurred and included in general and administrative expenses. These costs primarily consist of cost of materials used, salaries paid for the Company’s development department and fees paid to third parties. R&D costs for the three months ended March 31, 2021 and 2020 were immaterial. Share-Based Compensation The Company accounts for share-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that share-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company accounts for share-based compensation awards to non-employees in accordance with FASB ASC Topic 718 and FASB ASC Subtopic 505-50, “Equity-Based Payments to Non-employees”. Share-based compensation associated with the issuance of equity instruments to non-employees is measured at the fair value of the equity instrument issued or committed to be issued, as this is more reliable than the fair value of the services received. The fair value is measured at the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. Effective January 1, 2020, the Company adopted ASU 2018-07, "Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of FASB ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that FASB ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The adoption of ASU 2018-07 did not have an impact on the Company’s CFS. Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows FASB ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under the provisions of FASB ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of operations. At March 31, 2021 and December 31, 2020, the Company did not take any uncertain positions that would necessitate recording a tax related liability. Noncontrolling Interests The Company follows FASB ASC Topic 810, “ Consolidation, The net income (loss) attributed to NCI was separately designated in the accompanying statements of operations and comprehensive income (loss). Losses attributable to NCI in a subsidiary may exceed a non-controlling interest’s interests in the subsidiary’s equity. The excess attributable to NCI is attributed to those interests. non-controlling interests shall continue to be attributed their share of losses even if that attribution results in a deficit non-controlling interests balance. On April 15, 2020, Technology and Xi’an Jinzang formed a JV, Qinghai Zhongli, to process brine supplied by Technology. Technology owns 51% of the JV and Xi’an Jinzang owns the remaining 49%. During the three months ended March 31, 2021, the Company had loss of $9,933 attributable to the NCI. Concentration of Credit Risk Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions and state-owned banks within the PRC are covered by insurance up to RMB 500,000 (US$77,000) per bank. Any balance over RMB 500,000 ($77,000) per bank in PRC will not be covered. The Company has not experienced any losses in such accounts. Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. The operations of the Company are located primarily in China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, as well as by the general state of the PRC economy. Basic and Diluted Earnings (Loss) per Share (EPS) Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to have been exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Foreign Currency Translation and Comprehensive Income (Loss) The accounts of the US parent company are maintained in USD. The functional currency of the Company’s China subsidiaries is the Chinese Yuan Renminbi (“RMB”). The accounts of the China subsidiaries were translated into USD in accordance with FASB ASC Topic 830, “ Foreign Currency Matters. Comprehensive Income. Statement of Cash Flows In accordance with FASB ASC Topic 230, “ Statement of Cash Flows, Fair Value of Financial Instruments Certain of the Company’s financial instruments, including cash and equivalents, notes receivable, accrued liabilities and accounts payable, carrying amounts approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value (“FV”) of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. Fair Value Measurements and Disclosures FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement. Effective January 1, 2020, the Company adopted ASU 2018-13, Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for Level 1, Level 2 and Level 3 instruments in the FV hierarchy. As of March 31, 2021 and December 31, 2020, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV. Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. The Company will elect the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases, and will keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Operating leases are included in operating lease ROU assets and operating lease liabilities (current and non-current), on the consolidated balance sheets. The Company did not have any leases as of March 31, 2021. Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. Segment Reporting FASB ASC Topic 280, “ Segment Reporting, Reclassification Certain prior period balance sheet accounts were reclassified for the purpose of consistency with the current year’s presentation. New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its CFS. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its FV, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its CFS. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply the elections as applicable as changes in the market occur. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its CFS. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC did not or are not believed by management to have a material impact on the Company’s present or future CFS. |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 3. INVENTORIES, NET Inventories at March 31, 2021 and December 31, 2020, respectively, were as follows: 2021 2020 Raw materials $ 229,905 $ 275,416 Finished goods 292,233 903,971 Total $ 522,138 $ 1,179,387 |
NOTES RECEIVABLE - BANK ACCEPTA
NOTES RECEIVABLE - BANK ACCEPTANCES | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. NOTES RECEIVABLE BANK ACCEPTANCES The Company sold goods to its customers and received notes (bank acceptances) from them in lieu of payment. These bank acceptances were issued by customers to the Company and would be honored by the applicable bank. The Company may hold a bank acceptance until the maturity for full payment, or have the bank acceptance cashed out by the bank at a discount at an earlier date, or transfer the bank acceptance to its vendors in lieu of payment for their own obligations. As of March 31, 2021 and December 31, 2020, the Company had notes receivable of $73,045 and $96,367, respectively; and at March 31, 2021, the Company had $0.84 million notes receivable that were endorsed to its vendors, in lieu of payment. The Company was contingently liable for these notes receivable until paid. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Other Current Assets [Text Block] | 5. OTHER RECEIVABLES Other receivables consisted of the following at March 31, 2021 and December 31, 2020: 2021 2020 VAT receivable $ 102,405 $ 57,364 Prepaid rent (short term) 6,528 2,043 Other 4,535 819 Total $ 113,468 $ 60,226 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following at March 31, 2021 and December 31, 2020, respectively: 2021 2020 Structures and improvements $ 477,872 $ 481,270 Production equipment 2,887,416 2,880,146 Vehicle 75,890 70,836 Equipment 265,348 267,235 Total 3,706,526 3,699,487 Less: accumulated depreciation (2,284,431 ) (2,210,704 ) Property and equipment, net $ 1,422,095 $ 1,488,783 Depreciation for the three months ended March 31, 2021 and 2020 was $90,534 and $76,346, respectively. |
CONSTRUCTION IN PROGRESS ("CIP"
CONSTRUCTION IN PROGRESS ("CIP") | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Other Assets Disclosure [Text Block] | 7. CONSTRUCTION IN PROGRESS ( CIP ) As of March 31, 2021 and December 31, 2020, the Company had CIP of $783,141 and $141,846, respectively. The CIP was mainly for Qinghai Zhongli’s Adsorption Station Project, which is the early stage of an integrated lithium carbonate production system. The adsorption station is equipped with a liquid storage tank for the adsorption material to be placed inside, and its function is to preliminarily extract lithium mother solution from brine for initial purification; the lithium mother solution will go into evaporation shed for refining and concentration; and the concentrated mother solution (also called lithium water saturated solution) is then sent to the production workshop for precipitation and drying to form the finished product of lithium carbonate. As of March 31, 2021, the Company spent $783,141 for constructing the adsorption station; as of this report date, the Company completed the construction of two adsorption stations and is currently doing the equipment commissioning for the second absorption station. The Company was committed to pay $203,180 more based on the various construction - related contracts entered as of March 31, 2021. |
TAXES PAYABLE
TAXES PAYABLE | 3 Months Ended |
Mar. 31, 2021 | |
Tax Disclosure [Abstract] | |
Tax Disclosure [Text Block] | 8. TAXES PAYABLE Taxes payable consisted of the following March 31, 2021 and December 31, 2020, respectively: 2021 2020 Other $ 22,318 $ 18,331 VAT 168,647 88,320 Taxes payable $ 190,965 $ 106,651 |
ACCRUED LIABILITIES AND OTHER P
ACCRUED LIABILITIES AND OTHER PAYABLES | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 9. ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables consisted of the following at March 31, 2021 and December 31, 2020, respectively: 2021 2020 Advances from third parties $ 23,342 $ 6,035 Other 612,100 561,000 Accrued salary 909,071 955,312 Total $ 1,544,513 $ 1,522,347 Advances from third parties were short term, non-interest-bearing and due on demand. As of March 31, 2021 and December 31, 2020, other mainly consisted of 1) dividend payable to Northtech of $525,000 and $500,000, respectively; and 2) payables for professional fees and other miscellaneous expenses of $87,100 and $61,000, respectively. As of March 31, 2021, accrued salary of $909,071 included $840,000 accrued salary for the three senior officers. As of December 31, 2020, accrued salary of $955,312 included $840,000 accrued salary for three senior officers. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 10. RELATED PARTY TRANSACTIONS Due from related parties Technology purchased raw material boron rock from Qinghai Mining (owned by three major shareholders of the Company); in addition, Technology received no-interest short-term advances from Qinghai Mining for daily operational needs. As of March 31, 2021 and December 31, 2020, due from Qinghai Mining was $3.77 million and $3.11 million (the net amount of intercompany transactions between Technology and Qinghai Mining), respectively. Technology purchased boron ore of $261,258 and $113,528 from Qinghai Mining during the three months ended March 31, 2021 and 2020, respectively. On July 1, 2019, Technology and Qinghai Mining entered a boron ore purchase contract for one year. Qinghai Mining is to supply Technology boron ore based on Technology’s monthly production plan at RMB 62 ($9.10) per tonne. The price is adjustable in the future if there is a significant fluctuation of the market price for the boron ore. In the fourth quarter of 2019, this price was adjusted to RMB 70.46 ($10.21) per tonne. In the first quarter of 2020, Technology and Qinghai Mining entered a new purchase contract, the price for boron ore was adjusted to RMB 77.5 ($11.10) per tonne, and the price for slag was RMB 30 ($4.41) per tonne. This purchase contract will be in effect until a replacement contact with new purchase price is entered. In September 2020, Technology sold the Test and Experimental Plant I to Qinghai Mining at cost of RMB 11.41 million ($1.74 million) (see Note 7). The payment term is five years with annual interest of 4.75%. The first payment of $334,789 is due September 30, 2021. As of March 31, 2021, the future minimum payments for next five years is: $334,789, $334,789, $334,789, $334,789 and $397,555. Qinghai Mining guarantees payment with its accounts receivables, and has the right to repay the purchase price in full any time before the maturity date. During the fourth quarter 2020, the Company made a short-term cash advance of RMB 500,000 ($76,630) to Xi’an Jinzang (49% NCI of the JV) with no interest and payable upon demand. Xi’an Jinzang repaid the amount in full in January 2021. Due to related parties Technology used equipment for production that belongs to Qinghai Province Dachaidan Zhongtian Resources Development Co., Ltd (“Zhongtian Resources”, which is owned by the Chairman and his brother who are also two major shareholders of the Company). The depreciation of these fixed assets had an impact on the production costs of boric acid of the Company and was included in the Company’s cost of sales. The depreciation of these fixed assets for the three months ended March 31, 2021 and 2020 was $5,586 and $6,263, respectively. Due to Zhongtian Resources resulting from using its equipment and payment of worker’s compensation made by Zhongtian Resource for Technology was $84,261 and $79,309 at March 31, 2021 and December 31, 2020, respectively. Technology sold boric acid to Qinghai Dingjia Zhixin Trading Co., Ltd (“Dingjia”) which is 90% owned by the son of the Company’s major shareholder and Chairman. For the three months ended March 31, 2021 and 2020, the Company’s sales to Dingjia was $0, respectively. At March 31, 2021 and December 31, 2020, payable to Dingjia was $20,615 and $20,762 respectively. During the three months ended March 31, 2021, Qinghai Zhongli and Xi’an Jinzang entered three loan contracts for Qinghai Zhongli borrowing RMB 4 million ($608,708) with an annual interest of 6.8% from Xi’an Jinzang. The fund was used for the production and operation activities of Qinghai Zhongli. The Company shall repay RMB 2.5 million ($380,442) with accrued interest by June 30, 2021 and repay the remaining RMB 1.5 million ($228,266) with accrued interest by December 31, 2021. A late fee of 1/1000 of outstanding balance per day will be charged if the Company is not able to repay the loan on time. In addition, at March 31, 2021 and December 31, 2020, the Company had $1,135,591 and $1,014,591 due to another major shareholder of the Company and Chief Executive Officer, resulting from certain Company operating expenses of the US parent company such as legal and audit fees that were paid by him on behalf of the Company. This short-term advance bore no interest, and was payable upon demand. The following table summarized the due from (to) related parties as of March 31, 2021 and December 31, 2020, respectively: Related party name 2021 2020 Due from Qinghai Mining including $1.75 million sale of CIP $ 4,635,533 $ 3,457,488 Due to Qinghai Mining (862,132 ) (350,438 ) Due from Xi'an Jinzang (NCI of the JV) - 76,630 Due from, net (current and noncurrent) $ 3,773,401 $ 3,183,680 Due to Dingjia $ 20,615 $ 20,762 Due to Xi'an Jinzang (NCI of the JV) with 6.8% interest 612,351 - Due to Zhongtian Resources 84,261 79,309 Due to A major shareholder 1,135,591 1,014,591 Due to, total $ 1,852,818 $ 1,114,662 |
DEFERRED INCOME
DEFERRED INCOME | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Income [Abstract] | |
Deferred Income [Text Block] | 11. DEFERRED INCOME Deferred income consisted mainly of the government subsidy to the Company’s special projects. The detail of deferred income for the Company’s special projects at March 31, 2021 is: Government subsidy amount Project completion date Useful life in years Accumulated amortization Net Technology upgrade for using lean ore to produce magnesium sulfate $ 334,789 8/1/2013 10 $ 256,672 $ 78,117 Technical transformation for boric acid and magnesium sulfate produced from low grade ore 76,088 5/1/2015 10 45,019 31,069 Project of comprehensive utilization of DaChaiDan Solid Boron Mine 1,521,769 1/1/2018 10 494,575 1,027,194 Project of high value utilization of magnesium-rich waste liquid 304,354 7/9/2019 10 246,602 57,752 Total $ 2,237,000 $ 1,042,868 $ 1,194,132 The detail of deferred income for the Company’s special projects at December 31, 2020 is: Government subsidy amount Project completion date Useful life in years Accumulated amortization Net Technology upgrade for using lean ore to produce magnesium sulfate $ 337,170 8/1/2013 10 $ 250,068 $ 87,102 Technical transformation for boric acid and magnesium sulfate produced from low grade ore 76,629 5/1/2015 10 43,422 33,207 Project of comprehensive utilization of DaChaiDan Solid Boron Mine 1,532,591 1/1/2018 10 459,778 1,072,813 Project of high value utilization of magnesium-rich waste liquid 306,518 7/9/2019 10 246,594 59,924 Total $ 2,252,908 $ 999,862 $ 1,253,046 |
SUBSIDY INCOME
SUBSIDY INCOME | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 12. SUBSIDY INCOME Subsidy income consisted of amortization of deferred income for declared special projects and government’s general incentive fund (recorded as income upon receipt) for the three months ended March 31, 2021 and 2020, respectively: Three Months Ended March 31, 2021 2020 Technology upgrade for using lean ore to produce magnesium sulfate $ 8,482 $ 7,881 Technical transformation for boric acid and magnesium sulfate produced from low grade ore 1,928 1,791 Project of comprehensive utilization of DaChaiDan Solid Boron Mine 38,554 35,822 Project of high value utilization of magnesium-rich waste liquid 1,773 1,647 Total $ 50,737 $ 47,141 |
DEFERRED TAX ASSETS
DEFERRED TAX ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Tax Assets (Liabilities), Net Disclosure [Abstract] | |
Deferred Tax Assets (Liabilities), Net Disclosure [Text Block] | 13. DEFERRED TAX ASSETS As of March 31, 2021 and December 31, 2020, respectively, deferred tax assets consisted of the following: 2021 2020 Deferred tax asset –NOL of US parent company $ 1,112,735 $ 1,081,844 Less: valuation allowance (1,112,735 ) (1,081,844 ) Deferred tax assets, net $ - $ - The Company recorded a 100% valuation allowance for deferred tax assets due to the uncertainty of its realization. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 14. INCOME TAXES The Company is subject to income taxes by entity on income arising in or derived from the tax jurisdiction in which each entity is domiciled. The Company’s PRC subsidiaries file their income tax returns online with PRC tax authorities. The H.R. 1 (the “Tax Reform”), effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in changes to existing U.S. tax law, including various provisions that are expected to impact the Company. The Tax Reform Law reduces the federal corporate tax rate from 35% to 21% effective January 1, 2018 for the U.S. entity of the Company. The US parent company, was incorporated in the US and has net operating losses (“NOLs”) for income tax purposes, under the 2018 Tax Reform, the NOLs arising in tax years beginning after 2017 may reduce 80% of a taxpayer’s taxable income, and be carried forward indefinitely. However, the coronavirus Aid, Relief and Economic Security Act (“the CARES Act”) issued in March 2020, provides tax relief to both corporate and noncorporate taxpayers by adding a five-year carryback period and temporarily repealing the 80% limitation for NOLs arising in 2018, 2019 and 2020. The U.S. parent Company has NOLs carry forwards for income taxes of approximately $5.30 million at March 31, 2021. Management believes the realization of benefits from these losses remains uncertain due to the parent Company’s limited operating history and continuing losses. Accordingly, a 100% deferred tax asset valuation allowance was provided. Mid-Heaven BVI is a BVI company, and there is no income tax for companies domiciled in the BVI. Sincerity and Salt-Lake are governed by the Income Tax Law of the PRC concerning privately-run enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriate tax adjustments. Mid-Heaven BVI, Sincerity and Salt-Lake do not have any operations, and are not expected to have any operations in the future. Technology and Qinghai Zhongli have a 15% preferential PRC income tax rate. The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate on income before income taxes for the three months ended March 31, 2021 and 2020, respectively: 2021 2020 Tax benefit at U.S. federal statutory rates $ (23,983 ) $ (48,432 ) Foreign income taxed at different rates 1,317 (3,177 ) Tax holiday in PRC (3,290 ) 7,943 Other 3,482 - Valuation allowance 33,932 43,666 Tax expense per financial statements $ 11,458 $ - The income tax expense for the three months ended March 31, 2021 and 2020, respectively, consisted of the following: 2021 2020 Income tax expense – current $ 11,458 $ - Income tax benefit – deferred - - Total income tax benefit, net $ 11,458 $ - |
MAJOR CUSTOMERS AND VENDORS
MAJOR CUSTOMERS AND VENDORS | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 15. MAJOR CUSTOMERS AND VENDORS The following table sets forth information as to the Company’s major customers that accounted for 10% or more of the Company’s sales for the three months ended March 31, 2021 and 2020. For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020 Customer Percentage of Total Sales Customer Percentage of Total Sales A 11 % A - % B 11 % B - % C 11 % C - % D 10 % D - % E - % E 10 % The Company had one customer that accounted for 10% or more of the Company’s accounts receivable as of March 31, 2021 and December 31, 2020. The accounts receivable from this customer was $233,610 and $211,134 as of March 31, 2021 and December 31, 2020, respectively. Technology purchased all of its boron ore raw material of $261,258 and $113,528 from Qinghai Mining during the three months ended March 31, 2021 and 2020, respectively. The following table sets forth information as to the Company’s major suppliers that accounted for 10% or more of the Company’s total purchases for the three months ended March 31, 2021 and 2020. For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020 Supplier Percentage of Total Purchases Supplier Percentage of Total Purchases A 24 % A 32 % B 13 % B - % C 12 % C - % D 11 % D 14 % The Company had one supplier that accounted for 10% or more of the Company’s accounts payable as of March 31, 2021 and December 31, 2020. The accounts payable from this supplier was $255,716 and $240,504 as of March 31, 2021 and December 31, 2020, respectively. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
Statutory Reserves Disclosure [Abstract] | |
Statutory Reserves Disclosure [Text Block] | 16. STATUTORY RESERVES AND RESTRICTED NET ASSETS The Company’s ability to pay dividends primarily depends on the Company receiving funds from its subsidiaries. PRC laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of the subsidiary’s retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with US GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiaries. In accordance with the PRC Regulations on Enterprises with Foreign Investment and their articles of association, a foreign-invested enterprise (“FIE”) established in the PRC is required to provide certain statutory reserves, which are appropriated from net profit as reported in the FIE’s PRC statutory accounts. An FIE is required to allocate at least 10% of its annual after-tax profit to the surplus reserve until such reserve has reached 50% of its respective registered capital based on the FIE’s PRC statutory accounts. Appropriations to other funds are at the discretion of the BOD for all FIEs. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Additionally, shareholders of an FIE are required to contribute capital to satisfy the registered capital requirement of the FIE. Until such contribution of capital is satisfied, the FIE is not allowed to repatriate profits to its shareholders, unless otherwise approved by the State Administration of Foreign Exchange. Sincerity, incorporated on July 9, 2018 in China as a wholly foreign-owned enterprise (“WFOE”) with registered capital of $1.00 million, has 10 years from the incorporation date to fulfill the registered capital requirement. Additionally, in accordance with the Company Laws of the PRC, a domestic enterprise is required to provide surplus reserve at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to have a discretionary surplus reserve, at the discretion of the BOD, from the profits determined in accordance with the enterprise’s PRC statutory accounts. Appropriation to such reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Technology was established as domestic enterprises and therefore are subject to the above-mentioned restrictions on distributable profits. As a result of these PRC laws and regulations that require annual appropriations of 10% of after-tax income to be set aside prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company as a dividend. According to Administrative Measures for the Collection and Utilization of Enterprise Work Safety Funds issued by the PRC Ministry of Finance and the State Administration of Work Safety, for the companies with dangerous goods production or storage, the company is required to make a special reverse for the use of enhancing and improving its safe production conditions. Under PRC GAAP, the reserve is recorded as cost of sales; however, under US GAAP, since the expense has not been incurred and the Company already recorded cost of sales for safety related expenses when incurred, this special reserve was recorded as an appropriation of its after-tax income. At March 31, 2021, the Company had $89,307 production safety related reserve, which was included in $198,463 statutory reserve in the balance sheet. The reserve is calculated at regressive rates levied on revenue in excess of specific amounts as follows: Annual revenue amount Reserve ratio Less than RMB 10 million ($1.41 million) 4.0% of annual revenue Over RMB 10 million ($1.41 million), but less than RMB 100 million ($14.13 million) 2.0% of annual revenue Over RMB 100 million ($14.13 million), but less than RMB 1 billion ($141.25 million) 0.5% of annual revenue Over RMB 1 billion ($141.25 million) 0.2% of annual revenue |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Commitments Disclosure [Text Block] | 17. COMMITMENTS Capital Contribution Both Sincerity and Salt-Lake were incorporated in China in 2018 with registered capital of $1.00 million and $0.88 million, respectively, they have 10 years from the incorporation date to fulfill the registered capital requirement. Under PRC company law, registered capital must be used in the operations of the domestic company within its approved business scope. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Loss Contingency [Abstract] | |
Contingencies Disclosure [Text Block] | 18. CONTINGENCIES The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments in China and foreign currency exchange. The Company’s results may be adversely affected by changes in PRC government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions in China are denominated in RMB and all of the Company’s assets and liabilities in China are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current PRC law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. SUBSEQUENT EVENTS The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company has no material subsequent events. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Going Concern, Policy [Policy Textblock} | Going Concern The accompanying consolidated financial statements (“CFS”) were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the accompanying CFS, the Company had loss of $115,724 and $230,628 for the three months ended March 31, 2021 and 2020, respectively, which raises substantial doubt about the Company’s ability to continue as a going concern. In addition to current boric acid production business, the Company plans to produce lithium carbonate for electric vehicle batteries through a recently established JV from brine that is provided by Technology. The Company will absorb costs for the brine it provides to the JV which is pumped out directly from the nearby Salt Lake. Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can be no assurance to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The CFS do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The CFS were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The interim consolidated financial information as of March 31, 2021 and for the three-month periods ended March 31, 2021 and 2020 was prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in CFS prepared in accordance with U.S. GAAP were not included. The interim consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, previously filed with the SEC on April 15, 2021. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of March 31, 2021, its consolidated results of operations and cash flows for the three months ended March 31, 2021 and 2020, as applicable, were made. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation For the three months ended March 31, 2021, the accompanying CFS include the accounts of the Company’s US parent, and Mid-heaven BVI and its subsidiaries, Sincerity, Salt-Lake, Technology and Qinghai Zhongli, which are collectively referred to as the “Company.” All significant intercompany accounts and transactions were eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates In preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Equivalents Cash includes cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable, net The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Based on historical collection activity, the Company had allowance of $19,631 and $19,770 at March 31, 2021 and December 31, 2020, respectively. |
Advances to Suppliers [Policy Text Block] | Advances to Suppliers, net The Company makes advances to certain vendors to purchase raw material, tools and equipment for production. The advances are interest-free and unsecured. As of March 31, 2021 and December 31, 2020, the Company had gross advance to suppliers of $362,122 and $245,058 respectively, and the Company had allowance for advances to suppliers of $2,727 and $2,747, respectively. In addition, as of March 31, 2021, advances to suppliers also included a prepayment of $30,436 to a third-party company for purchasing equipment and a land use right; total purchase price is $167,395, the remaining $136,959 will be paid within three days after the completion of the land certificate and related deed transfer, or the prepayment will be returned to the Company if failure to obtain the land use certificate and related deed. As of this report date, the Company is still waiting for relevant authorities to process the title transfer of the land use right. |
Inventory, Policy [Policy Text Block] | Inventories, net Inventories are stated at the lower of cost or net realizable value with cost determined on a weighted-average basis. Management compares the cost of inventories with the net realizable value and an allowance is made to write down inventories to market value, if lower. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; major additions, repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 3% - 10% salvage value and estimated lives as follows: Buildings 20 years Structures and improvements 4-20 years Vehicles 4-8 years Office equipment 5 years Production equipment 3-10 years Equipment upgrade 5 years Depreciation of plant, property and equipment attributable to manufacturing is capitalized as part of inventories, and expensed to cost of sales when inventories are sold. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Long-lived assets, which include tangible assets, such as property and equipment, goodwill and other intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized based on the excess of the carrying amount over the fair value of the assets. Fair value generally is determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of March 31, 2021 and December 31, 2020, there was no significant impairments of its long-lived assets. Effective January 1, 2020, the Company adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. |
Deferred Charges, Policy [Policy Text Block] | Deferred Income Deferred income consists primarily of government grants and subsidies for supporting the Company’s technology innovation and transformation of boric acid, lithium and magnesium sulfate projects. The Company uses most of the subsidies to purchase machinery and equipment. Deferred income is amortized to revenue (other income) over the life of the assets for which the grant and subsidy was used. Subsidies for declared project fund require government inspection to ensure proper use of the funds for the designated project. |
Long-Duration Contracts Revenue Recognition, Policy [Policy Text Block] | Unearned Revenue The Company records payments received from customers in advance of their orders as unearned revenue. These orders normally are delivered (usually within one month) based upon contract terms and customer demand. |
Revenue [Policy Text Block] | Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive for those goods. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs typically upon receipts of the goods by customers. Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. VAT taxes are not affected by the income tax holiday. |
Cost of Goods and Service [Policy Text Block] | Cost of Sales Cost of sales consists primarily of material costs and direct labor and manufacturing overhead attributable to the production of the products. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of sales. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development (“R&D”) costs are expensed as incurred and included in general and administrative expenses. These costs primarily consist of cost of materials used, salaries paid for the Company’s development department and fees paid to third parties. R&D costs for the three months ended March 31, 2021 and 2020 were immaterial. |
Share-based Payment Arrangement [Policy Text Block] | Share-Based Compensation The Company accounts for share-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that share-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company accounts for share-based compensation awards to non-employees in accordance with FASB ASC Topic 718 and FASB ASC Subtopic 505-50, “Equity-Based Payments to Non-employees”. Share-based compensation associated with the issuance of equity instruments to non-employees is measured at the fair value of the equity instrument issued or committed to be issued, as this is more reliable than the fair value of the services received. The fair value is measured at the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. Effective January 1, 2020, the Company adopted ASU 2018-07, "Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of FASB ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that FASB ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The adoption of ASU 2018-07 did not have an impact on the Company’s CFS. |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows FASB ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under the provisions of FASB ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of operations. At March 31, 2021 and December 31, 2020, the Company did not take any uncertain positions that would necessitate recording a tax related liability. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Noncontrolling Interests The Company follows FASB ASC Topic 810, “ Consolidation, The net income (loss) attributed to NCI was separately designated in the accompanying statements of operations and comprehensive income (loss). Losses attributable to NCI in a subsidiary may exceed a non-controlling interest’s interests in the subsidiary’s equity. The excess attributable to NCI is attributed to those interests. non-controlling interests shall continue to be attributed their share of losses even if that attribution results in a deficit non-controlling interests balance. On April 15, 2020, Technology and Xi’an Jinzang formed a JV, Qinghai Zhongli, to process brine supplied by Technology. Technology owns 51% of the JV and Xi’an Jinzang owns the remaining 49%. During the three months ended March 31, 2021, the Company had loss of $9,933 attributable to the NCI. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions and state-owned banks within the PRC are covered by insurance up to RMB 500,000 (US$77,000) per bank. Any balance over RMB 500,000 ($77,000) per bank in PRC will not be covered. The Company has not experienced any losses in such accounts. Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. The operations of the Company are located primarily in China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, as well as by the general state of the PRC economy. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings (Loss) per Share (EPS) Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to have been exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Comprehensive Income (Loss) The accounts of the US parent company are maintained in USD. The functional currency of the Company’s China subsidiaries is the Chinese Yuan Renminbi (“RMB”). The accounts of the China subsidiaries were translated into USD in accordance with FASB ASC Topic 830, “ Foreign Currency Matters. Comprehensive Income. |
Statement of Cash Flows [Policy Text Block] | Statement of Cash Flows In accordance with FASB ASC Topic 230, “ Statement of Cash Flows, |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Certain of the Company’s financial instruments, including cash and equivalents, notes receivable, accrued liabilities and accounts payable, carrying amounts approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value (“FV”) of financial instruments held by the Company. The carrying amounts reported in the balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their FV because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements and Disclosures FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement. Effective January 1, 2020, the Company adopted ASU 2018-13, Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for Level 1, Level 2 and Level 3 instruments in the FV hierarchy. As of March 31, 2021 and December 31, 2020, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV. |
Lessee, Leases [Policy Text Block] | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. The Company will elect the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases, and will keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Operating leases are included in operating lease ROU assets and operating lease liabilities (current and non-current), on the consolidated balance sheets. |
Related Parties, Policy [Policy Text Block] | Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting FASB ASC Topic 280, “ Segment Reporting, |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification Certain prior period balance sheet accounts were reclassified for the purpose of consistency with the current year’s presentation. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its CFS. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its FV, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its CFS. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply the elections as applicable as changes in the market occur. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its CFS. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC did not or are not believed by management to have a material impact on the Company’s present or future CFS. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property and Equipment, Useful Lives [Member] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; major additions, repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 3% - 10% salvage value and estimated lives as follows: Buildings 20 years Structures and improvements 4-20 years Vehicles 4-8 years Office equipment 5 years Production equipment 3-10 years Equipment upgrade 5 years |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories at March 31, 2021 and December 31, 2020, respectively, were as follows: 2021 2020 Raw materials $ 229,905 $ 275,416 Finished goods 292,233 903,971 Total $ 522,138 $ 1,179,387 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Other receivables consisted of the following at March 31, 2021 and December 31, 2020: 2021 2020 VAT receivable $ 102,405 $ 57,364 Prepaid rent (short term) 6,528 2,043 Other 4,535 819 Total $ 113,468 $ 60,226 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment, Net [Member] | |
PROPERTY AND EQUIPMENT, NET (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following at March 31, 2021 and December 31, 2020, respectively: 2021 2020 Structures and improvements $ 477,872 $ 481,270 Production equipment 2,887,416 2,880,146 Vehicle 75,890 70,836 Equipment 265,348 267,235 Total 3,706,526 3,699,487 Less: accumulated depreciation (2,284,431 ) (2,210,704 ) Property and equipment, net $ 1,422,095 $ 1,488,783 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tax Disclosure [Abstract] | |
Schedule of Taxes Payable [Table Text Block] | Taxes payable consisted of the following March 31, 2021 and December 31, 2020, respectively: 2021 2020 Other $ 22,318 $ 18,331 VAT 168,647 88,320 Taxes payable $ 190,965 $ 106,651 |
ACCRUED LIABILITIES AND OTHER_2
ACCRUED LIABILITIES AND OTHER PAYABLES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued liabilities and other payables consisted of the following at March 31, 2021 and December 31, 2020, respectively: 2021 2020 Advances from third parties $ 23,342 $ 6,035 Other 612,100 561,000 Accrued salary 909,071 955,312 Total $ 1,544,513 $ 1,522,347 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following table summarized the due from (to) related parties as of March 31, 2021 and December 31, 2020, respectively: Related party name 2021 2020 Due from Qinghai Mining including $1.75 million sale of CIP $ 4,635,533 $ 3,457,488 Due to Qinghai Mining (862,132 ) (350,438 ) Due from Xi'an Jinzang (NCI of the JV) - 76,630 Due from, net (current and noncurrent) $ 3,773,401 $ 3,183,680 Due to Dingjia $ 20,615 $ 20,762 Due to Xi'an Jinzang (NCI of the JV) with 6.8% interest 612,351 - Due to Zhongtian Resources 84,261 79,309 Due to A major shareholder 1,135,591 1,014,591 Due to, total $ 1,852,818 $ 1,114,662 |
DEFERRED INCOME (Tables)
DEFERRED INCOME (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Income [Abstract] | |
Schedule of Other Nonoperating Income, by Component [Table Text Block] | The detail of deferred income for the Company’s special projects at March 31, 2021 is: Government subsidy amount Project completion date Useful life in years Accumulated amortization Net Technology upgrade for using lean ore to produce magnesium sulfate $ 334,789 8/1/2013 10 $ 256,672 $ 78,117 Technical transformation for boric acid and magnesium sulfate produced from low grade ore 76,088 5/1/2015 10 45,019 31,069 Project of comprehensive utilization of DaChaiDan Solid Boron Mine 1,521,769 1/1/2018 10 494,575 1,027,194 Project of high value utilization of magnesium-rich waste liquid 304,354 7/9/2019 10 246,602 57,752 Total $ 2,237,000 $ 1,042,868 $ 1,194,132 Government subsidy amount Project completion date Useful life in years Accumulated amortization Net Technology upgrade for using lean ore to produce magnesium sulfate $ 337,170 8/1/2013 10 $ 250,068 $ 87,102 Technical transformation for boric acid and magnesium sulfate produced from low grade ore 76,629 5/1/2015 10 43,422 33,207 Project of comprehensive utilization of DaChaiDan Solid Boron Mine 1,532,591 1/1/2018 10 459,778 1,072,813 Project of high value utilization of magnesium-rich waste liquid 306,518 7/9/2019 10 246,594 59,924 Total $ 2,252,908 $ 999,862 $ 1,253,046 |
SUBSIDY INCOME (Tables)
SUBSIDY INCOME (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Subsidy income consisted of amortization of deferred income for declared special projects and government’s general incentive fund (recorded as income upon receipt) for the three months ended March 31, 2021 and 2020, respectively: Three Months Ended March 31, 2021 2020 Technology upgrade for using lean ore to produce magnesium sulfate $ 8,482 $ 7,881 Technical transformation for boric acid and magnesium sulfate produced from low grade ore 1,928 1,791 Project of comprehensive utilization of DaChaiDan Solid Boron Mine 38,554 35,822 Project of high value utilization of magnesium-rich waste liquid 1,773 1,647 Total $ 50,737 $ 47,141 |
DEFERRED TAX ASSETS (Tables)
DEFERRED TAX ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Tax Assets (Liabilities), Net Disclosure [Abstract] | |
Summary of Deferred Tax Liability Not Recognized [Table Text Block] | As of March 31, 2021 and December 31, 2020, respectively, deferred tax assets consisted of the following: 2021 2020 Deferred tax asset –NOL of US parent company $ 1,112,735 $ 1,081,844 Less: valuation allowance (1,112,735 ) (1,081,844 ) Deferred tax assets, net $ - $ - |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate on income before income taxes for the three months ended March 31, 2021 and 2020, respectively: 2021 2020 Tax benefit at U.S. federal statutory rates $ (23,983 ) $ (48,432 ) Foreign income taxed at different rates 1,317 (3,177 ) Tax holiday in PRC (3,290 ) 7,943 Other 3,482 - Valuation allowance 33,932 43,666 Tax expense per financial statements $ 11,458 $ - |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax expense for the three months ended March 31, 2021 and 2020, respectively, consisted of the following: 2021 2020 Income tax expense – current $ 11,458 $ - Income tax benefit – deferred - - Total income tax benefit, net $ 11,458 $ - |
MAJOR CUSTOMERS AND VENDORS (Ta
MAJOR CUSTOMERS AND VENDORS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |
MAJOR CUSTOMERS AND VENDORS (Tables) [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | The following table sets forth information as to the Company’s major customers that accounted for 10% or more of the Company’s sales for the three months ended March 31, 2021 and 2020. For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020 Customer Percentage of Total Sales Customer Percentage of Total Sales A 11 % A - % B 11 % B - % C 11 % C - % D 10 % D - % E - % E 10 % |
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | |
MAJOR CUSTOMERS AND VENDORS (Tables) [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Technology purchased all of its boron ore raw material of $261,258 and $113,528 from Qinghai Mining during the three months ended March 31, 2021 and 2020, respectively. The following table sets forth information as to the Company’s major suppliers that accounted for 10% or more of the Company’s total purchases for the three months ended March 31, 2021 and 2020. For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2020 Supplier Percentage of Total Purchases Supplier Percentage of Total Purchases A 24 % A 32 % B 13 % B - % C 12 % C - % D 11 % D 14 % |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Statutory Reserves Disclosure [Abstract] | |
Reserve [Table Text Block] | The reserve is calculated at regressive rates levied on revenue in excess of specific amounts as follows: Annual revenue amount Reserve ratio Less than RMB 10 million ($1.41 million) 4.0% of annual revenue Over RMB 10 million ($1.41 million), but less than RMB 100 million ($14.13 million) 2.0% of annual revenue Over RMB 100 million ($14.13 million), but less than RMB 1 billion ($141.25 million) 0.5% of annual revenue Over RMB 1 billion ($141.25 million) 0.2% of annual revenue |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) ¥ in Millions | Apr. 15, 2020USD ($) | Apr. 15, 2020CNY (¥) | Mar. 27, 2020 | Dec. 31, 2018shares | Aug. 23, 2013 |
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Number of Wholly Owned Subsidiaries Created | 2 | ||||
Proceeds from Contributed Capital | $ 19,746,000 | ¥ 140 | |||
Qinghai Technology [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Agreement, Description | The Company currently produces boric acid in the PRC and plans to expand its manufacturing facilities through a joint venture (“JV”) to produce up to 30,000 tonnes of lithium carbonate annually for the electric vehicle battery market in China, subject to funding | ||||
Equity Method Investment, Ownership Percentage | 51.00% | 51.00% | |||
Xi'an Jinzang Membrane Environmental Protection Technology Co., Ltd. (Xi'an Jinzang) [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | |||
Mid-Haven Sincerity International Resources Investment Co., Ltd (Mid-Haven) [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Stock Issued During Period, Shares, Acquisitions (in Shares) | 106,001,971 | ||||
Number of Subsidiaries | 2 | ||||
Equity Method Investment, Ownership Percentage | 57.00% | ||||
Mid-Haven Sincerity International Resources Investment Co., Ltd (Mid-Haven) [Member] | Qing Hai Mid-Haven Boron & Lithium Technology Company, Ltd. ("Qing Hai Technology") [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||
Date of Registration and Establishment of JV [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Proceeds from Contributed Capital | $ 5,077,000 | ¥ 36 | |||
Payment before July 31, 2020 [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Proceeds from Contributed Capital | 10,155,000 | 72 | |||
Payment before October 31, 2020 [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Proceeds from Contributed Capital | 4,513,000 | 32 | |||
Initial Capital Contribution [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items] | |||||
Proceeds from Contributed Capital | $ 710,000 | ¥ 5 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Apr. 15, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Net Income (Loss) Attributable to Parent | $ (115,724) | $ (230,628) | |||
Accounts Receivable, Allowance for Credit Loss | 19,631,000,000 | $ 19,770 | |||
Other Inventory, Purchased Goods, Gross | 362,122 | 245,058 | |||
Allowance for Advances to Suppliers | 2,727 | $ 2,747 | |||
Increase (Decrease) in Prepaid Expenses, Other | 30,436 | ||||
Property, Plant and Equipment, Additions | 167,395 | ||||
Payments to Acquire Property, Plant, and Equipment | 33,606 | 0 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | (9,933) | $ 0 | |||
Cash, FDIC Insured Amount | $ 500,000 | ¥ 77,000 | |||
Number of Operating Segments | 1 | ||||
Qinghai Technology [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% | ||||
Xi'an Jinzang Membrane Environmental Protection Technology Co., Ltd. (Xi'an Jinzang) [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 49.00% | ||||
Use Rights [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Payments to Acquire Property, Plant, and Equipment | $ 136,959 | ||||
Minimum [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Property, Plant and Equipment, Salvage Value, Percentage | 3.00% | 3.00% | |||
Maximum [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||
Property, Plant and Equipment, Salvage Value, Percentage | 10.00% | 10.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Estimated Useful Lives of Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 20 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Minimum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 4 years |
Minimum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 4 years |
Minimum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 3 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 20 years |
Maximum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 8 years |
Maximum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 10 years |
INVENTORIES, NET (Details) - S
INVENTORIES, NET (Details) - Schedule of Inventories - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Inventories [Abstract] | ||
Raw materials | $ 229,905 | $ 275,416 |
Finished goods | 292,233 | 903,971 |
Total | $ 522,138 | $ 1,179,387 |
NOTES RECEIVABLE - BANK ACCEP_2
NOTES RECEIVABLE - BANK ACCEPTANCES (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Financing Receivable, after Allowance for Credit Loss, Current | $ 73,045 | $ 96,367 |
Bank Acceptances Executed and Outstanding | $ 840,000 |
OTHER RECEIVABLES (Details) - S
OTHER RECEIVABLES (Details) - Schedule of Receivables, Prepayments and Deposits - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Receivables, Prepayments and Deposits [Abstract] | ||
VAT receivable | $ 102,405 | $ 57,364 |
Prepaid rent (short term) | 6,528 | 2,043 |
Other | 4,535 | 819 |
Total | $ 113,468 | $ 60,226 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 90,534 | $ 76,346 |
PROPERTY AND EQUIPMENT, NET (D
PROPERTY AND EQUIPMENT, NET (Details) - Schedule of Property, Plant and Equipment - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | $ 3,706,526 | $ 3,699,487 |
Less: accumulated depreciation | (2,284,431) | (2,210,704) |
Property and equipment, net | 1,422,095 | 1,488,783 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | 477,872 | 481,270 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | 2,887,416 | 2,880,146 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | 75,890 | 70,836 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property & equipment, gross | $ 265,348 | $ 267,235 |
CONSTRUCTION IN PROGRESS ("CI_2
CONSTRUCTION IN PROGRESS ("CIP") (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | ||
Construction in Progress, Gross | $ 783,141 | $ 141,846 |
Construction in Progress Expenditures Incurred but Not yet Paid | $ 203,180 |
TAXES PAYABLE (Details) - Sched
TAXES PAYABLE (Details) - Schedule of Taxes Payable - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Taxes Payable [Abstract] | ||
Other | $ 22,318 | $ 18,331 |
VAT | 168,647 | 88,320 |
Taxes payable | $ 190,965 | $ 106,651 |
ACCRUED LIABILITIES AND OTHER_3
ACCRUED LIABILITIES AND OTHER PAYABLES (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) | |
ACCRUED LIABILITIES AND OTHER PAYABLES (Details) [Line Items] | |||
Accrued Salaries, Current | $ 955,312 | $ 955,312 | $ 909,071 |
Northtech [Member] | |||
ACCRUED LIABILITIES AND OTHER PAYABLES (Details) [Line Items] | |||
Dividends Payable | 500,000 | 500,000 | 525,000 |
Accounts Payable, Other | 61,000 | 61,000 | 87,100 |
Qinghai Technology [Member] | |||
ACCRUED LIABILITIES AND OTHER PAYABLES (Details) [Line Items] | |||
Accrued Salaries, Current | $ 840,000 | $ 840,000 | $ 840,000 |
Number of Officers | 3 | 3 |
ACCRUED LIABILITIES AND OTHER_4
ACCRUED LIABILITIES AND OTHER PAYABLES (Details) - Schedule of Accrued Liabilities and Other Payables - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Accrued Liabilities and Other Payables [Abstract] | ||
Advances from third parties | $ 23,342 | $ 6,035 |
Other | 612,100 | 561,000 |
Accrued salary | 909,071 | 955,312 |
Total | $ 1,544,513 | $ 1,522,347 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jul. 01, 2019USD ($) | Jul. 01, 2019CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Mar. 31, 2020USD ($) | Mar. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) |
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Due from Related Parties | $ 3,773,401 | $ 3,183,680 | |||||||||||||||
Due to Related Parties | 1,852,818 | 1,114,662 | |||||||||||||||
Depreciation | $ 90,534 | $ 76,346 | |||||||||||||||
Qinghai Technology and Qinghai Mining Boron Ore Purchase Contract [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Related Party Transaction, Description of Transaction | Qinghai Mining is to supply Technology boron ore based on Technology’s monthly production plan at RMB 62 ($9.10) per tonne. The price is adjustable in the future if there is a significant fluctuation of the market price for the boron ore. | Qinghai Mining is to supply Technology boron ore based on Technology’s monthly production plan at RMB 62 ($9.10) per tonne. The price is adjustable in the future if there is a significant fluctuation of the market price for the boron ore. | |||||||||||||||
Related Party Transaction, Amounts of Transaction | $ 9.10 | ¥ 62 | 11.10 | ¥ 77.5 | $ 10.21 | ¥ 70.46 | |||||||||||
Qinghai Technology and Qinghai Mining Slag Purchase Contract [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Related Party Transaction, Amounts of Transaction | 4.41 | ¥ 30 | |||||||||||||||
Property, Plant and Equipment, Disposals | $ 1,740,000 | ¥ 11,410,000 | |||||||||||||||
Related Party Transaction, Rate | 4.75% | 4.75% | |||||||||||||||
Due from Related Parties | $ 334,789 | ||||||||||||||||
Qinghai Mining [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Number of Investors | 3 | 3 | |||||||||||||||
Related Party Transaction, Due from (to) Related Party | $ 3,770,000 | $ 3,110,000 | $ 3,110,000 | ||||||||||||||
Related Party Transaction, Purchases from Related Party | 261,258 | 113,528 | |||||||||||||||
Due from Related Parties | 4,635,533 | 3,457,488 | |||||||||||||||
Due to Related Parties | 862,132 | 350,438 | |||||||||||||||
Xi'an Jinzang Membrane Environmental Protection Technology Co., Ltd. (Xi'an Jinzang) [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Due from Related Parties | 0 | 76,630 | |||||||||||||||
Due to Related Parties | 612,351 | 0 | |||||||||||||||
Origination of Notes Receivable from Related Parties | $ 76,630 | ¥ 500,000 | |||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | |||||||||||||||
Zhongtian Resources [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Related Party Transaction, Due from (to) Related Party | (84,261) | $ (79,309) | $ (79,309) | ||||||||||||||
Due to Related Parties | 84,261 | 79,309 | |||||||||||||||
Depreciation | 5,586 | 6,263 | |||||||||||||||
Dingjia [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Related Party Transaction, Due from (to) Related Party | 20,615 | (20,762) | (20,762) | ||||||||||||||
Due to Related Parties | $ 20,615 | 20,762 | |||||||||||||||
Equity Method Investment, Ownership Percentage | 90.00% | ||||||||||||||||
Revenue from Related Parties | $ 0 | 0 | |||||||||||||||
Qinghai Zhongli [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Related Party Transaction, Rate | 6.80% | 6.80% | |||||||||||||||
Number of Loans | 3 | 3 | |||||||||||||||
Proceeds from Related Party Debt | $ 608,708 | ¥ 4,000,000 | |||||||||||||||
Debt Instrument, Periodic Payment | $ 228,266 | ¥ 1,500,000 | $ 380,442 | ¥ 2,500,000 | |||||||||||||
Debt Instrument, Fee | A late fee of 1/1000 of outstanding balance per day will be charged if the Company is not able to repay the loan on time. | A late fee of 1/1000 of outstanding balance per day will be charged if the Company is not able to repay the loan on time. | |||||||||||||||
Majority Shareholder [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Due to Related Parties | 1,135,591 | $ 1,014,591 | $ 1,014,591 | $ 1,014,591 | |||||||||||||
Due Year One [Member] | Qinghai Technology and Qinghai Mining Slag Purchase Contract [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Due from Related Parties | 334,789 | ||||||||||||||||
Due Year Two [Member] | Qinghai Technology and Qinghai Mining Slag Purchase Contract [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Due from Related Parties | 334,789 | ||||||||||||||||
Due Year Three [Member] | Qinghai Technology and Qinghai Mining Slag Purchase Contract [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Due from Related Parties | 334,789 | ||||||||||||||||
Due Year Four [Member] | Qinghai Technology and Qinghai Mining Slag Purchase Contract [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Due from Related Parties | 334,789 | ||||||||||||||||
Due Year Five [Member] | Qinghai Technology and Qinghai Mining Slag Purchase Contract [Member] | |||||||||||||||||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | |||||||||||||||||
Due to Related Parties | $ 397,555 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details) - Schedule of Related Party Transactions - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Related Party Transaction [Line Items] | |||
Due from | $ 3,773,401 | $ 3,183,680 | |
Due to | 1,852,818 | 1,114,662 | |
Due to | (1,852,818) | (1,114,662) | |
Qinghai Mining [Member] | |||
Related Party Transaction [Line Items] | |||
Due from | 4,635,533 | 3,457,488 | |
Due to | 862,132 | 350,438 | |
Due to | (862,132) | (350,438) | |
Xi'an Jinzang Membrane Environmental Protection Technology Co., Ltd. (Xi'an Jinzang) [Member] | |||
Related Party Transaction [Line Items] | |||
Due from | 0 | 76,630 | |
Due to | 612,351 | 0 | |
Due to | (612,351) | 0 | |
Dingjia [Member] | |||
Related Party Transaction [Line Items] | |||
Due to | 20,615 | 20,762 | |
Due to | (20,615) | (20,762) | |
Zhongtian Resources [Member] | |||
Related Party Transaction [Line Items] | |||
Due to | 84,261 | 79,309 | |
Due to | (84,261) | (79,309) | |
Majority Shareholder [Member] | |||
Related Party Transaction [Line Items] | |||
Due to | 1,135,591 | $ 1,014,591 | 1,014,591 |
Due to | $ (1,135,591) | $ (1,014,591) | $ (1,014,591) |
DEFERRED INCOME (Details) - Sch
DEFERRED INCOME (Details) - Schedule of Other Nonoperating Income, by Component - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
DEFERRED INCOME (Details) - Schedule of Other Nonoperating Income, by Component [Line Items] | ||
Government subsidy amount | $ 2,237,000 | $ 2,252,908 |
Amortization | 1,042,868 | 999,862 |
Net | 1,194,132 | 1,253,046 |
Technology upgrade for using lean ore to produce magnesium sulfate [Member] | ||
DEFERRED INCOME (Details) - Schedule of Other Nonoperating Income, by Component [Line Items] | ||
Government subsidy amount | $ 334,789 | $ 337,170 |
Project completion date | Aug. 1, 2013 | Aug. 1, 2013 |
Useful life in years | 10 years | 10 years |
Amortization | $ 256,672 | $ 250,068 |
Net | 78,117 | 87,102 |
Technical transformation for boric acid and magnesium sulfate produced from low grade ore [Member] | ||
DEFERRED INCOME (Details) - Schedule of Other Nonoperating Income, by Component [Line Items] | ||
Government subsidy amount | $ 76,088 | $ 76,629 |
Project completion date | May 1, 2015 | May 1, 2015 |
Useful life in years | 10 years | 10 years |
Amortization | $ 45,019 | $ 43,422 |
Net | 31,069 | 33,207 |
Project of comprehensive utilization of DaChaiDan Solid Boron Mine [Member] | ||
DEFERRED INCOME (Details) - Schedule of Other Nonoperating Income, by Component [Line Items] | ||
Government subsidy amount | $ 1,521,769 | $ 1,532,591 |
Project completion date | Jan. 1, 2018 | Jan. 1, 2018 |
Useful life in years | 10 years | 10 years |
Amortization | $ 494,575 | $ 459,778 |
Net | 1,027,194 | 1,072,813 |
Project of high value utilization of magnesium-rich waste liquid [Member] | ||
DEFERRED INCOME (Details) - Schedule of Other Nonoperating Income, by Component [Line Items] | ||
Government subsidy amount | $ 304,354 | $ 306,518 |
Project completion date | Jul. 9, 2019 | Jul. 9, 2019 |
Useful life in years | 10 years | 10 years |
Amortization | $ 246,602 | $ 246,594 |
Net | $ 57,752 | $ 59,924 |
SUBSIDY INCOME (Details) - Sche
SUBSIDY INCOME (Details) - Schedule of Other Nonoperating Income (Expense) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
SUBSIDY INCOME (Details) - Schedule of Other Nonoperating Income (Expense) [Line Items] | ||
Other income | $ 50,737 | $ 47,141 |
Technology upgrade for using lean ore to produce magnesium sulfate [Member] | ||
SUBSIDY INCOME (Details) - Schedule of Other Nonoperating Income (Expense) [Line Items] | ||
Other income | 8,482 | 7,881 |
Technical transformation for boric acid and magnesium sulfate produced from low grade ore [Member] | ||
SUBSIDY INCOME (Details) - Schedule of Other Nonoperating Income (Expense) [Line Items] | ||
Other income | 1,928 | 1,791 |
Project of comprehensive utilization of DaChaiDan Solid Boron Mine [Member] | ||
SUBSIDY INCOME (Details) - Schedule of Other Nonoperating Income (Expense) [Line Items] | ||
Other income | 38,554 | 35,822 |
Project of high value utilization of magnesium-rich waste liquid [Member] | ||
SUBSIDY INCOME (Details) - Schedule of Other Nonoperating Income (Expense) [Line Items] | ||
Other income | $ 1,773 | $ 1,647 |
DEFERRED TAX ASSETS (Details)
DEFERRED TAX ASSETS (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Tax Assets (Liabilities), Net Disclosure [Abstract] | |
Deferred Tax Assets Valuation Allowance, Percentage | 100.00% |
DEFERRED TAX ASSETS (Details) -
DEFERRED TAX ASSETS (Details) - Schedule of Deferred Tax Liability - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of Deferred Tax Liability [Abstract] | ||
Deferred tax asset –NOL of US parent company | $ 1,112,735 | $ 1,081,844 |
Less: valuation allowance | (1,112,735) | (1,081,844) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2021 | Dec. 31, 2019 |
INCOME TAXES (Details) [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||
Reduction to Taxable Income, Percent | 80.00% | |||
Operating Loss Carryforwards (in Dollars) | $ 5,300 | |||
Deferred Tax Assets Valuation Allowance, Percentage | 100.00% | |||
Foreign Tax Authority [Member] | Mid-Haven Sincerity International Resources Investment Co., Ltd (Mid-Haven) [Member] | ||||
INCOME TAXES (Details) [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | |||
Foreign Tax Authority [Member] | SmartHeat (Shanghai) Trading Co., Ltd. [Member] | ||||
INCOME TAXES (Details) [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | |||
Foreign Tax Authority [Member] | Qing Hai Mid-Haven Boron & Lithium Technology Company, Ltd. ("Qing Hai Technology") [Member] | ||||
INCOME TAXES (Details) [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 15.00% |
INCOME TAXES (Details) - Schedu
INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Tax benefit at U.S. federal statutory rates | $ (23,983) | $ (48,432) |
Foreign income taxed at different rates | 1,317 | (3,177) |
Tax holiday in PRC | (3,290) | 7,943 |
Other | 3,482 | 0 |
Valuation allowance | 33,932 | 43,666 |
Tax expense per financial statements | $ 11,458 | $ 0 |
INCOME TAXES (Details) - Sche_2
INCOME TAXES (Details) - Schedule of Components of Income Tax Expense - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Components of Income Tax Expense [Abstract] | ||
Income tax benefit – current | $ 11,458 | $ 0 |
Income tax benefit – deferred | 0 | 0 |
Total income tax benefit, net | $ 11,458 | $ 0 |
MAJOR CUSTOMERS AND VENDORS (De
MAJOR CUSTOMERS AND VENDORS (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
MAJOR CUSTOMERS AND VENDORS (Details) [Line Items] | |||
Payments to Suppliers | $ 261,258 | $ 113,528 | |
Accounts Payable | 255,716 | $ 240,504 | |
Customer Concentration Risk [Member] | |||
MAJOR CUSTOMERS AND VENDORS (Details) [Line Items] | |||
Accounts Receivable, after Allowance for Credit Loss | $ 233,610 | $ 211,134 |
MAJOR CUSTOMERS AND VENDORS (_2
MAJOR CUSTOMERS AND VENDORS (Details) - Schedules of Concentration of Risk, by Risk Factor - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 0.00% |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 0.00% |
Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 0.00% |
Customer D [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 0.00% |
Customer E [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
MAJOR CUSTOMERS AND VENDORS (_3
MAJOR CUSTOMERS AND VENDORS (Details) - Schedules of Concentration of Risk, by Risk Factor - Supplier Concentration Risk [Member] - Cost of Goods and Service Benchmark [Member] | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplier A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 24.00% | 32.00% |
Supplier B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 0.00% |
Supplier C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 0.00% |
Supplier D [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 14.00% |
STATUTORY RESERVES AND RESTRI_3
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) [Line Items] | ||
After-Tax Income, Percentage, Appropriations | 10.00% | |
Retained Earnings, Appropriated | $ 198,463 | $ 177,843 |
Foreign Invested Enterprise [Member] | ||
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) [Line Items] | ||
Statutory Reserves, Description | An FIE is required to allocate at least 10% of its annual after-tax profit to the surplus reserve until such reserve has reached 50% of its respective registered capital based on the FIE’s PRC statutory accounts. | |
Domestic Enterprise [Member] | ||
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) [Line Items] | ||
Statutory Reserves, Description | Additionally, in accordance with the Company Laws of the PRC, a domestic enterprise is required to provide surplus reserve at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. | |
Production Safety [Member] | ||
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) [Line Items] | ||
Retained Earnings, Appropriated | $ 89,307 |
STATUTORY RESERVES AND RESTRI_4
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - Reserve | 3 Months Ended |
Mar. 31, 2021 | |
Less than RMB 10 million ($1.41 million) [Member] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - Reserve [Line Items] | |
Reserve Ratio | 4.00% |
Over RMB 10 million ($1.41 million), but less than RMB 100 million ($14.13 million) [Member] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - Reserve [Line Items] | |
Reserve Ratio | 2.00% |
Over RMB 100 million ($14.13 million), but less than RMB 1 billion ($141.25 million) [Member] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - Reserve [Line Items] | |
Reserve Ratio | 0.50% |
Over RMB 1 billion ($141.25 million) [Member] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - Reserve [Line Items] | |
Reserve Ratio | 0.20% |