Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021 shares | |
Document Information [Line Items] | |
Document Type | 20-F/A |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-33911 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | 3rd Floor, 850 Canal St |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Country | US |
Entity Address, Postal Zip Code | 06902 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ReneSola Ltd |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | SOL |
Security Exchange Name | NYSE |
Entity Central Index Key | 0001417892 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Common Stock, Shares Outstanding | 671,510,912 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Auditor Name | GRANT THORNTON |
Auditor Firm ID | 1487 |
Auditor Location | Shanghai, People’s Republic of China |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 3rd Floor, 850 Canal St |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Country | US |
Entity Address, Postal Zip Code | 06902 |
Contact Personnel Name | Ke Chen |
City Area Code | +1(347) |
Local Phone Number | 577 9055 x115 |
Contact Personnel Fax Number | +1 (347) 577-9985 |
Contact Personnel Email Address | ke.chen@renesolapower |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS € in Millions | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Current assets: | ||
Cash and cash equivalents | $ 254,065,589 | $ 40,593,094 |
Restricted cash | 316,777 | 83,217 |
Accounts receivable trade, net | 34,348,925 | 20,187,786 |
Accounts receivable unbilled | 11,473,590 | 0 |
Advances to suppliers | 276,737 | 143,482 |
Value added tax receivable | 4,600,213 | 3,651,593 |
Project assets, current | 9,587,254 | 24,992,068 |
Prepaid expenses and other current assets, net | 14,518,651 | 44,826,334 |
Assets held for sale | 0 | 2,271,015 |
Total current assets | 329,187,736 | 136,748,589 |
Property, plant and equipment, net | 125,646,486 | 119,943,471 |
Deferred tax assets, net | 776,261 | 1,184,321 |
Project assets non-current | 6,550,583 | 3,278,924 |
Goodwill | 1,022,567 | 1,022,567 |
Operating lease right-of-use assets | 16,944,867 | 23,246,413 |
Finance lease right-of-use assets | 24,557,562 | 25,555,792 |
Other non-current assets | 24,582,137 | 25,961,872 |
Total assets | 529,268,199 | 336,941,949 |
Current liabilities: | ||
Accounts payable | 3,764,839 | 6,313,330 |
Advances from customers | 81,611 | 900,604 |
Amounts due to related parties | 9,531,450 | 7,656,569 |
Short-term borrowings | 0 | 31,980,868 |
Bond payable | 0 | 9,034,691 |
Income tax payable | 843,923 | 948,953 |
Salaries payable | 339,883 | 266,373 |
Operating lease liabilities, current | 726,842 | 1,092,797 |
Failed sale-lease back and finance lease liabilities, current | 11,366,707 | 8,097,055 |
Other current liabilities | 8,443,963 | 19,828,633 |
Liabilities held for sale | 0 | 2,188,765 |
Total current liabilities | 35,099,218 | 88,308,638 |
Long-term borrowings | 61,510 | 0 |
Operating lease liabilities, non-current | 15,778,063 | 21,410,701 |
Failed sale-lease back and finance lease liabilities, non-current | 29,916,924 | 43,962,529 |
Total liabilities | 80,855,715 | 153,681,868 |
Commitments and contingencies (see Note 20) | ||
Shareholders' equity | ||
Common shares (800,000,000 shares and 1,000,000,000 shares; no par value, shares authorized at December 31, 2020 and 2021; 582,258,622 shares issued and 572,484,072 shares outstanding at December 31, 2020;717,316,622 shares issued and 671,510,912 shares outstanding at December 31, 2021) | 847,378,968 | 574,499,870 |
Additional paid-in capital | 12,396,170 | 7,769,742 |
Treasury stock | (18,446,119) | |
Accumulated deficit | (432,705,128) | (439,567,002) |
Accumulated other comprehensive loss | (4,618,323) | (3,565,101) |
ReneSola Ltd shareholders' equity | 404,005,568 | 139,137,509 |
Noncontrolling interest | 44,406,916 | 44,122,572 |
Total shareholders' equity | 448,412,484 | 183,260,081 |
Total liabilities and shareholders' equity | $ 529,268,199 | $ 336,941,949 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common shares, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares authorized | 1,000,000,000 | 800,000,000 |
Common shares, shares issued | 717,316,622 | 582,258,622 |
Common shares, shares outstanding | 671,510,912 | 572,484,072 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net revenues: | ||||
Total net revenues | $ 79,661,792 | $ 73,502,883 | $ 119,117,024 | |
Cost of revenues | (48,236,951) | (56,817,101) | (84,890,976) | |
Gross profit | 31,424,841 | 16,685,782 | 34,226,048 | |
Operating (expenses)/income: | ||||
Sales and marketing | (304,933) | (433,121) | (750,461) | |
General and administrative | (16,998,675) | (14,512,631) | (15,757,147) | |
Other operating (expenses)/income | (1,108,681) | 6,472,463 | (11,802,629) | |
Impairment loss of assets | (360,151) | (1,432,296) | (6,880,115) | |
Total operating expenses | (18,772,440) | (9,905,585) | (35,190,352) | |
Income/(loss) from operations | 12,652,401 | 6,780,197 | (964,304) | |
Non-operating (expenses)/income: | ||||
Interest income | 1,654,614 | 975,719 | 822,915 | |
Interest expense | (5,153,794) | (6,206,076) | (9,159,818) | |
Foreign exchange (losses)/gains | (1,764,349) | 769,183 | (1,273,899) | |
Total non-operating expenses | (5,263,529) | (4,461,174) | (9,610,802) | |
Income/(loss) before income tax | 7,388,872 | 2,319,023 | (10,575,106) | |
Income tax expense | (774,412) | (163,036) | (1,105,049) | |
Income/(loss), net of tax | 6,614,460 | 2,155,987 | (11,680,155) | |
Less: Net loss attributed to non-controlling interests | (247,413) | (622,668) | (2,848,932) | |
Net income/(loss) attributed to ReneSola Ltd | $ 6,861,873 | $ 2,778,655 | $ (8,831,223) | |
Income/(loss) attributed to ReneSola Ltd per ADS | ||||
Basic | $ 0.10 | $ 0.06 | $ (0.22) | |
Diluted | $ 0.10 | $ 0.06 | $ (0.22) | |
Weighted average number of ADS used in computing income/(loss) per ADS | ||||
Basic (in ADS) | [1] | 68,906,139 | 49,166,354 | 40,595,551 |
Diluted (in ADS) | [1] | 69,840,638 | 49,788,422 | 40,595,551 |
Solar power projects | ||||
Net revenues: | ||||
Net revenues | $ 61,036,228 | $ 49,160,215 | $ 90,096,551 | |
Electricity generation | ||||
Net revenues: | ||||
Net revenues | 17,969,727 | 23,547,162 | 28,712,942 | |
EPC services | ||||
Net revenues: | ||||
Net revenues | 0 | 0 | 69,751 | |
Other | ||||
Net revenues: | ||||
Net revenues | $ 655,837 | $ 795,506 | $ 237,780 | |
[1]Each American depositary shares (ADS) represents 10 common shares |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | |||
Net income/(loss) | $ 6,614,460 | $ 2,155,987 | $ (11,680,155) |
Other comprehensive (loss)/income, net of tax: | |||
Foreign currency translation adjustment | (521,464) | 1,208,482 | 226,014 |
Other comprehensive (loss)/income | (521,464) | 1,208,482 | 226,014 |
Comprehensive income/(loss) | 6,092,996 | 3,364,469 | (11,454,141) |
Less: Comprehensive income/(loss) attributed to non-controlling interests | 284,344 | 1,292,169 | (4,257,484) |
Comprehensive (loss)/income attributed to ReneSola Ltd | $ 5,808,652 | $ 2,072,300 | $ (7,196,657) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common shares [Member] | Treasury stock [Member] | Additional paid-in Capital [Member] | Accumulated deficit [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2018 | $ 519,313,350 | $ 0 | $ 9,364,019 | $ (433,514,434) | $ (4,493,312) | $ 90,669,623 | $ 33,995,782 | $ 124,665,405 |
Balance (in shares) at Dec. 31, 2018 | 381,027,002 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income/(loss) | $ 0 | $ 0 | 0 | (8,831,223) | 0 | (8,831,223) | (2,848,932) | (11,680,155) |
Issuance of common shares | $ 10,894,890 | 0 | 0 | 0 | 0 | 10,894,890 | 0 | 10,894,890 |
Issuance of common shares (in shares) | 100,000,000 | |||||||
Capital injection from non-controlling interests | $ 0 | 0 | 0 | 0 | 0 | 0 | 13,092,105 | 13,092,105 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 1,634,566 | 1,634,566 | (1,408,552) | 226,014 |
Share-based compensation | 0 | 0 | 348,916 | 0 | 0 | 348,916 | 0 | $ 348,916 |
Share options exercised by employees (in shares) | 0 | |||||||
Balance at Dec. 31, 2019 | $ 530,208,240 | $ 0 | 9,712,935 | (442,345,657) | (2,858,746) | 94,716,772 | 42,830,403 | $ 137,547,175 |
Balance (in shares) at Dec. 31, 2019 | 481,027,002 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income/(loss) | $ 0 | $ 0 | 0 | 2,778,655 | 0 | 2,778,655 | (622,668) | 2,155,987 |
Issuance of common shares | $ 41,495,212 | 0 | 0 | 0 | 0 | 41,495,212 | 0 | 41,495,212 |
Issuance of common shares (in shares) | 99,285,640 | |||||||
Other comprehensive income (loss), net of tax | $ 0 | 0 | 0 | 0 | (706,355) | (706,355) | 1,914,837 | 1,208,482 |
Share-based compensation | 0 | 0 | 369,187 | 0 | 0 | 369,187 | 0 | 369,187 |
Share options exercised by employees | $ 2,796,418 | 0 | (2,312,380) | 0 | 0 | 484,038 | 0 | $ 484,038 |
Share options exercised by employees (in shares) | 1,945,980 | 1,945,980 | ||||||
Balance at Dec. 31, 2020 | $ 574,499,870 | $ 0 | 7,769,742 | (439,567,002) | (3,565,101) | 139,137,509 | 44,122,572 | $ 183,260,081 |
Balance (in shares) at Dec. 31, 2020 | 582,258,622 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Cumulative-effect adjustment for the adoption of Accounting Standards Codification ("ASC") Topic 606 | (439,567,002) | |||||||
Net income/(loss) | $ 0 | $ 0 | 0 | 6,861,874 | 0 | 6,861,874 | (247,414) | 6,614,460 |
Issuance of common shares | $ 272,729,028 | 0 | 0 | 0 | 0 | 272,729,028 | 0 | $ 272,729,028 |
Issuance of common shares (in shares) | 130,127,050 | 130,127,050 | ||||||
Shares repurchase | $ (18,446,119) | 0 | 0 | 0 | (18,446,119) | 0 | $ (18,446,119) | |
Shares repurchase (in shares) | (30,904,110) | (30,904,110) | ||||||
Other comprehensive income (loss), net of tax | $ 0 | $ 0 | 0 | 0 | (1,053,222) | (1,053,222) | 531,758 | $ (521,464) |
Share-based compensation | 0 | 0 | 2,627,032 | 0 | 0 | 2,627,032 | 0 | 2,627,032 |
Share options exercised by employees | $ 150,070 | 0 | (118,844) | 0 | 0 | 31,226 | 0 | $ 31,226 |
Share options exercised by employees (in shares) | 4,930,950 | 120,680 | ||||||
Contribution from non-controlling interest holders | $ 0 | 0 | 2,118,240 | 2,118,240 | $ 2,118,240 | |||
Balance at Dec. 31, 2021 | $ 847,378,968 | $ (18,446,119) | $ 12,396,170 | $ (432,705,128) | $ (4,618,323) | $ 404,005,568 | $ 44,406,916 | 448,412,484 |
Balance (in shares) at Dec. 31, 2021 | 717,316,622 | 30,904,110 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Cumulative-effect adjustment for the adoption of Accounting Standards Codification ("ASC") Topic 606 | $ (432,705,128) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS € in Millions | 12 Months Ended | ||
Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Operating activities: | |||
Net income/(loss) | $ 6,614,460 | $ 2,155,987 | $ (11,680,155) |
Adjustments to reconcile net income/(loss) to net cash (used in)/provided by operating activities: | |||
Depreciation | 6,794,404 | 7,342,327 | 7,796,003 |
Allowances for credit losses | 2,314,201 | 6,667,963 | 6,981,682 |
Write-off of current assets | 0 | 353,418 | 0 |
Share-based compensation | 2,627,031 | 369,187 | 348,916 |
Deferred tax provision | 418,462 | (303,000) | 255,538 |
Cancellation of project assets | 1,300,620 | 1,460,104 | 6,434,935 |
Impairment loss of assets | 360,151 | 1,432,296 | 6,880,115 |
Loss on disposal of property, plant and equipment | 333,821 | 767,879 | 3,908,208 |
Gains on disposal of property, plant and equipment | (65,589) | (16,278,095) | (302,359) |
Changes in working capital, excluding impact of dispositions: | |||
Accounts receivable, trade and unbilled | (27,642,606) | (6,774,212) | 12,522,431 |
Advances to suppliers | (128,932) | 92,070 | 102,869 |
Value added tax recoverable | (923,299) | 1,609,650 | 3,225,883 |
Prepaid expenses and other current assets | (1,281,659) | (6,897,176) | 8,585,326 |
Project assets | 10,035,195 | 11,619,676 | 24,325,633 |
Other non-current assets | 2,064,699 | (7,581,870) | (11,316,279) |
Accounts payable | (2,703,731) | (12,969,701) | 8,244,250 |
Advances from customers | (790,180) | 778,151 | (13,962) |
Amounts due to related parties | 1,763,018 | (252,886) | (12,101,847) |
Other current liabilities | (7,141,701) | 6,702,455 | 1,324,293 |
Income tax payable | (119,566) | (156,747) | 379,140 |
Salary payable | 70,533 | (171,915) | 13,081 |
Net cash (used in)/provided by operating activities | (6,100,668) | (10,034,439) | 55,913,701 |
Investing activities: | |||
Purchase of property, plant and equipment | (11,617,137) | (8,247,790) | (13,693,749) |
Acquisition of business (see Note 3) | 0 | (3,896,627) | 0 |
Proceeds from disposal of property, plant and equipment | 31,273,922 | 7,538,516 | 12,096,869 |
Repayment of lending by related parties | 0 | 1,218,840 | 0 |
Lending to related party | (433,285) | 0 | 0 |
Net cash (used in)/provided by investing activities | 19,223,500 | (3,387,061) | (1,596,880) |
Financing activities: | |||
Proceeds from banks and other third-party borrowings | 61,510 | 9,968,028 | 17,922,511 |
Repayment of banks and other third-party borrowings | (30,204,213) | (19,166,536) | (65,491,414) |
Contribution from non-controlling interest holders of subsidiaries | 2,118,240 | 0 | 13,092,105 |
Proceeds from issuance of ordinary shares | 290,000,000 | 44,999,330 | 11,000,000 |
Share issuance costs | (17,270,972) | (3,504,118) | (105,110) |
Repurchase of shares | (18,446,119) | 0 | 0 |
Proceeds from bonds | 2,358,546 | 8,427,712 | 12,913,675 |
Repayment of bonds | (11,261,572) | (2,544,062) | (10,417,360) |
Borrowings from related parties | 1,272,143 | 12,827 | 793,269 |
Repayment of borrowings from related parties | 0 | (1,174,295) | (8,380,994) |
Repayment of finance lease obligations | (7,207,081) | (2,174,035) | (6,100,711) |
Proceeds from failed sale-lease back agreements | 0 | 0 | 2,793,810 |
Repayment of failed sale-lease back financing | (6,779,968) | (4,667,878) | (7,325,456) |
Net cash provided by/(used in) financing activities | 204,640,514 | 30,176,973 | (39,305,675) |
Effect of exchange rate changes | (4,057,291) | (722,416) | 1,087,262 |
Net increase in cash and cash equivalents and restricted cash | 213,706,055 | 16,033,057 | 16,098,408 |
Cash and cash equivalents and restricted cash, beginning of year | 40,676,311 | 24,697,153 | 9,026,044 |
Less: Cash and cash equivalents and restricted cash reclassified as assets held for sale | 0 | (53,899) | (427,299) |
Cash and cash equivalents and restricted cash, end of year | 254,382,366 | 40,676,311 | 24,697,153 |
Supplemental disclosure of cash flow information | |||
Interest paid, net of capitalized interest | 5,196,490 | 6,193,484 | 9,038,779 |
Income tax paid | (366,352) | (509,493) | (338,103) |
Non-cash investing and financing transactions | |||
Payables for purchase of property, plant and equipment | (5,533,545) | (8,958,993) | (22,810,701) |
Payable for finance leases | $ (14,187,759) | $ (19,852,094) | $ (20,766,512) |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS ReneSola Ltd was incorporated in the British Virgin Island on March 17, 2006. On January 29, 2008, ReneSola Ltd and its subsidiaries (collectively, the “Company”) became listed on the New York Stock Exchange (“NYSE”) in the United States. The Company was principally engaged in the manufacture and sale of solar power products including virgin polysilicon, monocrystalline and multi crystalline solar wafers and photovoltaic (“PV”) cells and modules. From 2012, the Company began entering into arrangements to develop commercial solar power projects, or project assets, which consists primarily of solar power project development, and Engineering, Procurement and Construction (“EPC”) services. On September 29, 2017, the Company announced that it completed restructuring to dispose of its manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business to a related party to help the Company transform its business model to focus on its solar power project business. After the completion of business restructuring in September 2017, the Company has become a solar project developer and operator, a pure solar downstream player with robust pipeline projects around the world. The Company develops and sells solar power projects or sells project SPVs (project development business), and owns and operates solar power projects and sells the electricity generated by the operated solar power plants (IPP business). |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements have been prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to generate cash flows from operations, and the Company’s ability to arrange adequate financing arrangements, to support its working capital requirements. During 2021, the Company entered into securities purchase agreements with several institutional investors with the amount of $290 million. As of December 31, 2021, the balance of cash and cash equivalent was $254,065,589. The Company has performed a review of its cash flow forecast for at least the twelve months following the issuance date of these financial statements. The Company expects the solar power project business to generate positive cash inflow in the forecasted period. Although the Company has certain material short-term obligations that will require material financing cash outflows, such as financing lease payments, the Company concluded that there was no substantial doubt about the Company’s ability to continue as a going concern. Based on the above factors, management believes that adequate sources of liquidity exist to fund the Company’s working capital and capital expenditures requirements, and to meet its short-term debt obligations, other liabilities and commitments as they become due for at least twelve months from the issuance date of these financial statements. (b) Basis of consolidation The consolidated financial statements include the financial statements of ReneSola Ltd and its subsidiaries. All inter-company transactions, balances and unrealized profits and losses have been eliminated on consolidation. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated statements of operations and comprehensive income (loss) includes the net income (loss) attributable to non-controlling interests when applicable. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows, when applicable. (c) Fair value measurement The Company estimates fair value of financial assets and liabilities as the price that would be received from the sales of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. See Note 9, “Fair Value Measurements,” for further details. (d) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting periods presented. Actual results could materially differ from these estimates. Significant accounting estimates are susceptible to changes with the acquisition of the information, which include revenue recognition for sales of solar power projects, inputs used to recognize revenue over time, EPC warranties, allowances for credit losses, valuation of deferred tax assets, and recoverability of the carrying value of long-lived assets and project assets. Management bases its estimates and judgments on historical experience and on various other factors that it is believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The spread of the COVID-19 pandemic, which the World Health Organization declared a pandemic in 2020, has caused substantial disruptions in the global economy as well as significant volatility in the financial markets, the severity and duration of which remains uncertain. As a consequences of COVID-19, currencies in many of the countries where we operate suffered a significant depreciation against the U.S. dollar as compared to December 31, 2020, which increased the cost of some of our development supplies and therefore negatively affected our financial results. It is expected that the impact of the COVID-19 pandemic continues to unfold and may continue to have negative effect on our business, financial performance and the results of our operations. We cannot predict how long the COVID-19 pandemic will last, whether it will worsen or whether there will be further outbreaks in the future in any of the markets where we operate. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change in future periods. Actual results could differ from those estimates under different assumptions and/or conditions. (e) Cash and cash equivalents Cash and cash equivalents represent cash on hand and held with banks, including demand deposits, which are unrestricted as to withdrawal and use, and which have maturities of three months or less when purchased. (f) Restricted Cash Restricted cash consists of cash and cash equivalents held by various banks to secure certain of our notes payable and other deposits designated for the payment of amounts related to loan interest. Restricted cash also includes cash and cash equivalents held in frozen bank accounts due to judicial property preservations. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within our consolidated balance sheets as of December 31, 2020 and 2021 to the total of such amounts as presented in the consolidated statements of cash flows: At December 31, 2020 2021 Cash and cash equivalents $ 40,593,094 $ 254,065,589 Restricted cash 83,217 316,777 Total cash, cash equivalents, and restricted cash $ 40,676,311 $ 254,382,366 (g) Accounts Receivable, trade and unbilled Accounts Receivable Trade The Company records trade accounts receivable for unconditional rights to consideration arising from the performance under contracts with customers. The carrying value of such receivables, net of the allowance for credit losses, represents their estimated net realizable value. Our electricity generation revenue sales generally include up to 30-day payment terms following the transfer of control of the electricity generated to the customer. In addition, The Company is entitled to the feed-in tariff(s) (FIT) that the government guaranteed and subsidized electricity sale price at which solar power projects can produce green energy. The Company recognizes the FIT as part of the electricity generation revenue when the entitlement to receipt of such FIT is fulfilled. Accounts receivable from such FIT is expected to be collected beyond 12 months, which are discounted at an effective interest rate and recorded as a non-current asset. Payment terms for sales of project assets, operations and maintenance services vary by contract but are generally due upon demand or within several months of satisfying the associated performance obligations. As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component when it expects, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. The Company typically does not include extended payment terms in our contracts with customers. Accounts Receivable Unbilled Accounts receivable unbilled represents a contract asset for revenue that has been recognized in advance of billing the customer, which is common for our project-related sales contracts. Revenue may be recognized in advance of billing the customer, resulting in an amount recorded to “Accounts receivable unbilled” depending on the expected timing of payment for such unbilled receivables. Once the Company has an unconditional right to consideration, it typically bill our customer and reclassify the “Accounts receivable unbilled” to “Accounts receivable trade.” Billing requirements vary by contract but are generally structured around the completion of certain development, interconnection, or other specified milestones. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from a financial asset’s amortized cost to present the net amount we expect to collect from such asset. The Company estimates allowances for credit losses using relevant available information from both internal and external sources. The Company monitors the estimated credit losses associated with our trade accounts receivable and unbilled accounts receivable based primarily on our collection history, which it review annually, and the delinquency status of amounts owed to the Company, which it determine based on the aging of such receivables. Such methods and estimates are adjusted, as appropriate, for relevant past events, current conditions, and reasonable and supportable forecasts. The Company recognizes write-offs within the allowance for credit losses when cash receipts associated with our financial assets are deemed uncollectible. (h) Project assets In 2012, the Company began entering into arrangements to develop commercial solar power projects (“project assets”) for sale upon their completion. Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to entering into a definitive sales agreement for the solar power project. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power project. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, and solar modules and related equipment. Interest costs incurred on debt during the construction phase are also capitalized within project assets. The Company does not depreciate the project assets when they are considered held for sale. Any revenue generated from a solar power project connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. In addition, the Company presents all expenditures related to the development and construction of project assets as a component of cash flows from operating activities. During the development phase, these project assets are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970-360, as they are considered in substance real estate. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that construction will be completed, and sale will occur within one year. The Company capitalizes costs related to solar power projects in various stages of development prior to entering into a definitive sales agreement for the solar power project, and classifies these costs as project assets on the consolidated balance sheets when the criteria in ASC 360-10-45-9 are met. If criteria are not met, the Company reclassifies these capitalized costs to property, plant and equipment, unless the delay in the period required to complete the sale is caused by events or circumstances beyond the Company’s control. Deferred project costs represent costs that are capitalized as deferred project assets for arrangements that are accounted for as real estate transactions after the Company has entered into a definitive sales arrangement, but before the sale is completed or before all criteria to recognize the sale as revenue are met. The Company classifies deferred project costs as noncurrent if satisfaction of all revenue recognition criteria is not expected within the next 12 months. The Company reviews project assets and deferred project costs for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets and the estimated costs to complete. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the respective project assets and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. (i) Contract costs The Company provides EPC services including engineering design, construction contracting and management, procurement of PV modules, balance-of-system components and other components. Contract costs generally include all direct costs, such as materials, direct labor, and subcontracts, and indirect costs identifiable with or allocable to the contracts. Contract costs also include the costs related to the design, engineering, and costs of all PV modules and materials needed for the projects for the cooperation arrangements with third party to jointly construct the power projects for sale. Contract costs are accumulated and are charged to operations as the related revenue from contracts is recognized. Refer to note 2 (s) Sale of project assets constructed by a third-party EPC contractor and EPC services for the corresponding revenue streams. (j) Advances to suppliers In order to secure a stable supply of construction materials, the Company makes advance payments to suppliers for raw material supplies and advances for purchases of long-lived assets which are offset against future deliveries. Advances to suppliers for purchases expected within twelve months as of each balance sheet date are recorded as advances to suppliers in current assets and those associated with purchases expected over longer periods of time are recorded in non-current advances to suppliers. As of December 31, 2020 and 2021, advances to suppliers in current assets were $143,482 and $276,737, respectively, and non-current advances to suppliers for construction materials supplies were nil. The Company does not require collateral or other security against its advances to suppliers. As a result, the Company’s claims for such prepayments are unsecured, which exposes the Company to the suppliers’ credit risk. The Company performs ongoing credit evaluations of the financial condition of its material suppliers. (k) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is computed on a straight-line basis over the following estimated useful lives: Plant and machinery 3‑5 years Motor vehicles 4‑5 years Office equipment 3‑5 years Power stations 25 years Estimated useful life of land is infinite and no depreciation is provided. Construction in progress represents mainly the construction of solar power projects the Company will own and operate for electricity generation. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets and is recognized in the consolidated statement of operations upon disposal. (l) Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company’s acquisitions of interests in its subsidiaries. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event occurs, or circumstances change that could indicate that the asset might be impaired. Under ASC 350-20, the Company has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. The Company first make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value to determine whether it is necessary to perform a quantitative goodwill impairment test. Such qualitative impairment test considers various factors, including macroeconomic conditions, industry and market considerations, cost factors, the overall financial performance of a reporting unit, and any other relevant events affecting the Company or a reporting unit. If circumstances determine through the qualitative assessment that a reporting unit’s fair value is more likely than not greater than its carrying value, the quantitative impairment test is not required. If the qualitative assessment indicates it is more likely than not that a reporting unit’s fair value is less than its carrying value, the Company perform a quantitative impairment test. The quantitative impairment test is the comparison of the fair value of a reporting unit with its carrying amount, including goodwill. Our battery storage business represents our only reporting unit. We define the fair value of a reporting unit as the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. We primarily use an income approach to estimate the fair value of our reporting unit. Significant judgment is required when estimating the fair value of a reporting unit, including the forecasting of future operating results and the selection of discount and expected future growth rates used to determine projected cash flows. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is not impaired, and no further analysis is required. Conversely, if the carrying value of a reporting unit exceeds its estimated fair value, we record an impairment loss equal to the excess, not to exceed the total amount of goodwill allocated to the reporting unit. The Company performed a qualitative assessment for battery storage reporting unit and concluded that it was not more likely that the fair value of the reporting unit was less than its carrying amount. Accordingly, a quantitative goodwill impairment test for this reporting unit was not required in any period presented. (m) Assets and liabilities held-for-sale Assets and asset disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when management has committed to a plan of sale and the sale is highly probable, the assets are available for immediate sale in their present condition, and they are expected to qualify for recognition as a completed sale within one year from the date of classification. Assets and liabilities classified as held for sale are measured at lower of their carrying amount or fair value less costs to sell. Long-lived assets to be sold are classified as held for sale considering the recognition criteria in ASC 360-10-45-9 in which all of the following criteria are met: ● Management, having the authority to approve the action, commits to a plan to sell the asset, ● The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; ● An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; ● The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; ● The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and ● Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. (n) Interest capitalization The Company capitalizes interest costs as part of the costs of constructing certain assets during the period of time required to get the assets ready for their intended use. The Company capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold, and all revenue recognition criteria are met. Interest is capitalized for solar power projects that are classified as property, plant and equipment and built for the Company to own and operate for electricity generation before the projects are completed and put into operation. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. (o) Impairment of long-lived assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or that the useful life is shorter than originally estimated. The Company assesses recoverability of the long-lived assets by comparing the carrying amount of the assets to the estimated future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The Company recognizes an impairment loss in the event the carrying amount exceeds the estimated future undiscounted cash flows attributable to such assets, measured as the difference between the carrying amount of the assets and the fair value of the impaired assets. Impairment losses of long-lived assets for the years ended December 31, 2020 and 2021 were $1,432,296 and $360,151, respectively. The impairment loss in 2020 was $1,432,296, of which $929,951 represented impairment loss from project assets with no further constructive value and $502,345 of which represented impairment losses from asset and liabilities held for sale. Impairment losses of these assets represented the difference between the carrying amount and fair value less cost to sell as a result of committed sale plans of solar power plants originally owned and operated by the Company for electricity generation. The impairment loss in 2021 was $360,151 which represented impairment loss from power stations in China. (p) Leases Leases are classified as finance or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a finance lease. At inception, a finance lease is recorded at the lower of the present value of minimum lease payments or the fair value of the asset. Assets under finance leases are amortized on a basis consistent with that of similar useful life of fixed assets or the end of lease term, whichever is earlier. If the lease transfers ownership or contains an option to purchase the asset that the lessee is reasonably certain to exercise, the finance leases should be amortized over the useful life of the asset. At the inception of each lease arrangement, the Company determines if the arrangement is a lease or contains an embedded lease and reviews the facts and circumstances of the arrangement to classify lease assets as operating or finance leases under ASU 2016-02, Leases (Topic 842). The Company has elected not to record any leases with terms of 12 months or less on the consolidated balance sheets. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities current and operating lease liabilities non-current on the consolidated balance sheets. Finance leases represent a small portion of the active lease agreements and are included in finance lease ROU assets, finance lease liabilities current and non-current on the consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation of the Company to make minimum lease payments arising from the lease for the duration of the lease term. Operating lease costs are recognized on a straight-line basis over the lease term. From time to time, the Company’s subsidiaries are asked to prepay the lease costs for over one year. As of December 31, 2020 and 2021, the prepaid rental fees of $767,276 and $706,693, respectively, were recorded in operating lease right-of-use assets. To determine the present value of future minimum lease payments, the Company use the implicit rate when readily determinable. Presently, because many of the leases do not provide an implicit rate, the Company applies its incremental borrowing rate, which is considered as the rate that the Company would negotiate when financing for a similar period, and with a similar guarantee, to obtain an asset of a similar value to the lease asset to determine the present value of the present value of minimum lease payment. The operating and finance lease ROU assets include any lease payment made and exclude lease incentives. For a sale-leaseback transaction, when the transaction involves real estate or integral equipment, sale-leaseback accounting shall be used by a seller-lessee only if the transaction includes all of the following a) normal leaseback; b) payment terms and provisions that adequately demonstrate the buyer-lessor’s initial and continuing investment in the property; and c) payment terms and provisions that transfer all of the other risks and rewards of ownership as demonstrated by the absence of any other continuing involvement by the seller-lessee. Equipment is determined to be integral when the cost to remove the equipment from its existing location, ship and reinstall at a new site, including any diminution in fair value, exceeds 10% of the fair value of the equipment at the time of original installation. If a sale-leaseback of real estate qualifies for sale-leaseback accounting, an analysis is performed to determine if the Company can record a sale and remove the assets from the balance sheet and recognize the lease; and if so, to determine whether to record the lease as either an operating or finance lease. If a sale-leaseback transaction does not qualify for sale-leaseback accounting because of any form of continuing involvement by the seller-lessee other than a normal leaseback, it is accounted for as a financing arrangement. (q) Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. (r) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Deferred tax assets and liabilities are all classified as non-current in the consolidated balance sheets. (s) Revenue recognition Solar power project development a) Sale of project assets constructed by a third-party EPC contractor The Company recognizes revenue for sales of project assets constructed by a third-party EPC contractor over time as the Company’s performance creates an energy generation asset that is owned by the customer as it is being constructed and the customer can direct all activities related to the work in progress. Furthermore, the sale of a project asset when combined with EPC services represents a single performance obligation for the development and construction of a single generation asset. The Company recognizes revenue over time for construction contracts which recognize revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Under this business model, the EPC services are provided by a third-party service provider. In accordance with the terms and conditions of the EPC contract, the Company has the ability to direct a third party to ensure that the EPC services to the customer are performed therefore the Company acts as the principal in this arrangement and both the revenue and cost amounts paid to the EPC contractor are recognized on a gross basis. b) Sale of project assets constructed by the Company’s own EPC team Under this business model, the Company sells power projects after they have been completed or are near completion. The Company conducts the construction of the power plant and completes or nearly completes the project before it identifies a customer. When a customer is identified, the Company enters into two agreements through signing: Sale and Purchase Agreement (“SPA”) and Operations and Maintenance (“O&M”) Services Contract, which are generally signed on the same date. Such arrangements consist of two performance obligations: sale of solar project and O&M services. For sale of a solar project, the Company recognizes revenue at a point in time once control of project company is transferred to the customer as the Company has no remaining performance obligation once the control is transferred upon closing of the sale. For O&M services, the Company recognizes revenue over time, ratably over the service period, as this performance enhances an energy generation asset controlled by the customer. For sales agreements that have energy generation performance guarantees covering a certain timeframe or the availability guarantee in the O&M contract, if there is an underperformance event, the Company may incur liquidated damages as a percentage of the EPC contract price or as a |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS ACQUISITION | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITION The Company accounted for the acquisition described below in accordance with ASC 805, “ Business Combinations Acquisition of ET Cap PA Holdings LLC (“PA Holdings”) and ET Cap CA Holdings LLC (“CA Holdings”) On November 17, 2020 (the “acquisition close date”), the Company acquired a 100% equity interests of PA Holdings and CA Holdings, a utility project with battery storage business under solar power project development stream from Nova Development Management, for a cash consideration totaling $3.9 million. The Company acquired PA Holdings and CA Holdings to enhance its ability to provide a more diverse product portfolio such as battery storage around the world. The final allocation on the purchase price to the fair value of the net assets acquired is as follows: As of acquisition close date Project assets (1) $ 2,874,060 Net assets acquired 2,874,060 Goodwill 1,022,567 Total consideration transferred/Net cash paid $ 3,896,627 (1) Included in project assets are incurred cost such as consultant fee, legal fee and salaries which have been capitalized in accordance with ASC 970-360, as they are directly attributable and incurred in the development phase. The Company performed annual impairment analysis in the fourth quarter of 2020 and 2021. ASC 350-20 allows companies to perform a qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying value to determine whether it is necessary to perform a quantitative goodwill impairment test. Such qualitative assessment considers various factors, including macroeconomic conditions, industry and market considerations, cost factors, the overall financial performance of a reporting unit, and any other relevant events affecting our company or a reporting unit. The Company performed a qualitative assessment for battery storage reporting unit in each respective period and concluded that it was not more likely that the fair value of the reporting unit was less than its carrying amount. Accordingly, a quantitative goodwill impairment test for this reporting unit was not required in any period presented. |
ACCOUNTS RECEIVABLE TRADE, NET
ACCOUNTS RECEIVABLE TRADE, NET | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE TRADE, NET | |
ACCOUNTS RECEIVABLE TRADE, NET | 4. ACCOUNTS RECEIVABLE TRADE, NET At December 31, 2020 2021 Accounts receivable trade – from EPC services $ 3,033,610 $ 2,640,710 – from solar power project assets 16,310,787 22,995,822 – from electricity generation revenue (1) 3,270,966 10,848,278 Total accounts receivable trade 22,615,363 36,484,810 Less: allowance for credit losses (2,427,577) (2,135,885) Accounts receivable trade, net $ 20,187,786 $ 34,348,925 (1) Accounts receivable from electricity generation revenue were mainly due from China’s state grid companies. The amounts included the portion of feed-in tariff(s) (FIT) for the electricity sold to the state grid companies in the PRC in which the relevant on-grid solar power stations are still pending for registration to the Renewable Energy Subsidy Catalog, which the Company has submitted the application for its solar power stations started operation before July 2017 to be registered on the Catalog. The Company expects that a certain part of the FIT receivables will be recovered after twelve months from the reporting date, which are discounted at an effective interest rate. As of December 31, 2021, there are $9,045,884 of FIT receivables classified as current and $24,457,930 classified as non-current. ACCOUNTS RECEIVABLE UNBILLED At December 31, 2020 2021 Accounts receivable unbilled –from solar power project assets $ — $ 11,473,590 During the year ended December 31, 2021, the Company contract assets classified as “Accounts receivable unbilled” are primary due to billing of certain project sales where the Company has the right to consideration in exchange of the project sales transferred. ALLOWANCE FOR CREDIT LOSSES The Company establishes an allowance for expected credit losses based on historical observe default rates over the expected life of the receivable balance and are adjusted for forward-looking information available without undue cost of effort. The grouping is regularly reviewed by management to ensure relevant information about specific debtors is updated. The following table shows the movement in lifetime expected credit losses that has been recognized for trade receivable under simplified approach. At December 31, 2020 2021 At beginning of year $ 1,908,803 $ 2,427,577 Allowance for credit losses 518,774 90,345 Written off — (382,037) At end of year $ 2,427,577 $ 2,135,885 CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS As of December 31, 2020, receivables from a solar power customer amounted to $8,257,527 (41%), which was greater than 10% of the account balance. As of December 31, 2021, receivables from a solar power customer amounted to $19,153,699 (56%), which was greater than 10% of the account balance. For the years ended December 31, 2020 and 2021, a solar power customer accounted for 48% and 28% of the Company’s total net revenues, respectively. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS At December 31, 2020 2021 Receivable from disposal of property, plant and equipment (1) $ 35,298,500 $ 3,714,161 Refundable deposits (2) 8,176,247 8,048,529 EPC Warranty reimbursement receivables 196,322 201,067 Others (3) 2,417,974 3,989,377 Total prepaid expenses and other current assets 46,089,043 15,953,134 Allowance for credit losses (4) (1,262,709) (1,434,483) Total prepaid expenses and other current assets $ 44,826,334 $ 14,518,651 (1) Receivable from disposal of property, plant and equipment mainly represented disposal of Company’s solar power assets which was primarily for electricity generation revenue segment. (2) As of December 31, 2021, refundable deposits mainly represented refundable deposits for interconnection, and the bidding of project asset construction rights and rooftop leases. (3) As of December 31, 2021, others mainly included $ 1,553,881 deposit at the broker for the shares repurchase, $ 859,621 prepayment on Korea project development, and $ 255,025 receivable for compensation from the insurance provider for China projects. (4) Allowance for credit losses mainly represented the portion of compensation receivable from Canadian authorities on closure of a certain project in Canada that the Company believes is not recoverable, unrecoverable collection from sold entities in China, and allowance for the Korea project’s prepayment which the Company deemed partially not recoverable. |
PROJECT ASSETS
PROJECT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
PROJECT ASSETS | |
PROJECT ASSETS | 6. PROJECT ASSETS Project assets consisted of the following at December 31, 2020 and 2021, respectively: At December 31, 2020 2021 Project assets - Module cost $ 3,877,147 $ 1,077,213 Project assets - Development and construction cost 23,367,183 14,631,425 Project assets - Others 1,026,662 429,199 Total project assets $ 28,270,992 $ 16,137,837 Current portion 24,992,068 9,587,254 Non-current portion 3,278,924 6,550,583 |
ASSETS HELD FOR SALE AND LIABIL
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE | 12 Months Ended |
Dec. 31, 2021 | |
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE | |
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE | 7. ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE On December 25, 2019, a subsidiary of the Company entered into a proposed acquisition agreement with Jiangxi Tongli Risheng New Energy Technology Co., Ltd (the “Buyer”) for sale of the Company’s solar power plant subsidiaries in China under the electricity generation revenue segment. The associated assets and liabilities of the solar power plant subsidiaries were consequently presented as held for sale in the consolidated balance sheet. As of December 31, 2020, the sale of all subsidiaries of the Company classified as held for sale in 2019 has been consummated. In December 2020, the Company entered into new proposed acquisition agreements with Shanghai Qirong New Energy Technology Co., Ltd. and Shanghai Tianyu New Energy Technology Co., Ltd. (the “Buyers”) for sale of the Company’s certain other solar power plant subsidiaries in China under the electricity generation revenue segment. The transaction was consummated on April 30, 2021. As of December 31, 2021, the sale has been closed in accordance with contract and the Company has entered no new acquisition agreement enter. At December 31, 2020 2021 Assets classified as held for sale Cash and cash equivalents $ 53,899 $ — Accounts receivable, net 184,920 — Value added tax recoverable 158,213 — Prepaid expenses and other current assets 23,075 — Property, plant and equipment, net 2,169,527 — Operating lease right-of-use asset — — Impairment of assets (1) (318,619) — Total assets classified as held for sale 2,271,015 — Liabilities classified as held for sale Accounts payable — — Other current liabilities 1,659,753 — Operating lease liabilities — — Failed sales leased back and finance lease liability 529,012 — Total liabilities classified as held for sale $ 2,188,765 $ — (1) As a result of the acquisition agreement, the Company reassessed the value of net assets on the solar power plant to the lower of carrying amount or fair value less cost to sell. As of December 31, 2020, the impairment loss of $318,619 has been applied to reduce the carrying amount of these assets classified as held for sale. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net: At December 31, 2020 2021 Land $ 282,000 $ 282,000 Plant and machinery 828,761 858,948 Motor vehicles 193,530 65,473 Office equipment 260,178 252,150 Power stations 131,355,790 138,533,441 Less: Accumulated depreciation (13,728,141) (19,181,277) 119,192,118 120,810,735 Construction in progress 751,353 4,835,751 Property, plant and equipment, net $ 119,943,471 $ 125,646,486 Construction in progress mainly represents solar power projects which are under development for self-electricity generation in China. All power stations were self-constructed for electricity generation purpose. Depreciation expense for the years ended December 31, 2019, 2020 and 2021 was $7,796,003, $7,342,327 and $6,794,404, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS The Company adopted ASC 820, “Fair Value Measurements and Disclosures,” which provides a framework for measuring fair value under U.S. GAAP, and expanded disclosure requirements about assets and liabilities measured at fair value. The Company utilizes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs as follows: ● Level 1-Observable unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2-Observable inputs other than quoted prices in active markets for identical assets or liabilities, for which all significant inputs are observable, either directly or indirectly. ● Level 3-Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. Recurring basis As of December 31, 2020 and 2021, there were no assets and liabilities measured on the Company’s consolidated balance sheet at fair value on a recurring basis subsequent to initial recognition. Non-recurring basis The carrying amount of long-term borrowing and liabilities approximates their fair value as the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities. The impairment loss of assets and cancellation loss of project assets for the years ended December 31, 2020 and 2021, represented non-recurring fair value measurement which the carrying amount of the related assets were either reduced to zero or reduced to a realizable lower amount per a purchase offer. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES The Company and its subsidiaries file separate income tax returns. British Virgin Islands Under the current laws of the British Virgin Islands (“BVI”), the Company’s subsidiary in BVI is not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no British Virgin Islands withholding tax is imposed. People’s Republic of China On March 16, 2007, the National People’s Congress approved the Corporate Income Tax Law of the People’s Republic of China (the “CIT Law”) with effective on January 1, 2008. The CIT Law enacted a statutory income tax rate of 25%. Pursuant to PRC tax laws, certain PRC domiciled subsidiaries of the Company are solar power generation enterprises, which are entitled to a three-year tax exemption from Corporate Income Tax (“CIT”) from first operation year and a 50% CIT reduction for the succeeding three years thereafter. United States of America ReneSola US is incorporated in California, United States. It is subject to a federal corporate income tax rate of 21% for 2018, 2019, and 2020, effective from January 1, 2018 under the 2017 Tax Cuts and Jobs Act. In addition, ReneSola US is subject to California state income tax of 8.84% for 2020 and 2021, and Connecticut state income tax of 7.5% for 2020 and 2021, which is deductible for federal corporate income tax purpose. The tax expense from continuing operations comprises: Years ended December 31, 2019 2020 2021 Income (loss) before income tax PRC $ (10,273,181) $ 2,104,024 $ 1,589,476 Other jurisdictions (301,925) 214,999 5,799,396 Total (10,575,106) 2,319,023 7,388,872 Current tax expense PRC (9,835) (5,118) (348,494) Other jurisdictions (839,676) (441,495) (66,754) Subtotal (849,511) (446,613) (415,248) Deferred tax benefit (expense) PRC — — — Other jurisdictions (255,538) 283,577 (359,164) Subtotal (255,538) 283,577 (359,164) Total income tax expense $ (1,105,049) $ (163,036) $ (774,412) There were no reversals or additions of unrecognized tax benefits during the years ended December 31, 2019, 2020 and 2021, respectively. The Company classifies interest and penalties related to income tax matters in income tax expense. As of December 31, 2020 and 2021, there were no interest and penalties related to uncertain tax positions. As of December 31, 2020 and 2021, there was no accrual of uncertain tax benefits recognized by the Company. The Company does not anticipate significant increases or decreases to its liabilities for unrecognized tax benefits within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of taxes exceeding RMB100,000 (approximately $15,692) is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The principal components of deferred income tax assets and liabilities are as follows: At December 31, 2020 2021 Deferred tax assets: Accrued expenses $ 13,451 $ 13,772 Net operating losses 9,491,051 7,214,260 Unrealized internal profit 1,125,023 776,260 Allowances for credit losses 1,281,259 1,209,220 Impairment loss of assets 122,764 126,337 Other 157,101 133,409 Total gross deferred tax assets 12,190,649 9,473,258 Valuation allowance on deferred tax assets (11,006,328) (8,696,997) Net deferred tax assets $ 1,184,321 $ 776,261 As of December 31, 2021, the subsidiaries of the Company in PRC had net operating loss carry forwards of $12,937,591, of which $2,705, $879, $6,029,897, $1,616,711 and $5,287,399 will expire in 2022, 2023, 2024, 2025 and 2026 respectively. The Company considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible for tax purposes. As a result, the Company has recognized a valuation allowance of $11,006,328 and $8,696,997 as at December 31, 2020 and 2021, respectively. Reconciliation between the applicable statutory income tax rate and the Company’s effective tax rate for the years ended December 31, 2019, 2020 and 2021 is as follows: Years ended December 31, 2019 2020 2021 PRC applicable income tax rate 25 % 25 % 25 % Change in deferred tax valuation allowance (57) % (21) % (20) % Preferential tax rate (1) 7 % (42) % (16) % Effect of different tax rate of subsidiaries 16 % 39 % 17 % Other (1) % 6 % 4 % Effective income tax rate (10) % 7 % 10 % The following table sets forth the effect of preferential tax on China operations for the years ended December 31, 2019, 2020 and 2021, respectively: Years ended December 31, 2019 2020 2021 Preferential tax effect (1) $ 720,847 $ 975,859 $ 1,160,939 (1) Certain solar power project entities are fully exempted from PRC CIT for three years starting from the year in which such project generates revenue from the sale of electricity and is 50% exempted from PRC CIT for another three years. Besides, certain solar power project entities enjoy the preferential tax policies in connection with the development of the western region of China and are subject to a preferential tax rate of 15 %. |
BORROWINGS AND OTHER FINANCING
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | 11. BORROWINGS AND OTHER FINANCING ARRANGEMENTS a) Borrowings from banks and other third parties The Company’s borrowings from banks and other third parties consist of the following: At December 31, 2020 2021 Short-term borrowings $ 31,980,868 $ — Long-term borrowings, current portion — — Subtotal borrowings 31,980,868 — Bond payable 9,034,691 — Long-term borrowings — 61,510 Total borrowings from bank and other third parties $ 41,015,559 $ 61,510 As of December 31, 2020, short-term borrowings of $31,980,868 and bond payable of $9,034,691 were jointly guaranteed by the Company and its subsidiaries. As of December 31, 2021, the long-term borrowings of $61,510 were jointly guarantee by the Company and its subsidiaries. i) Short-term borrowings Interest rates are fixed for the short-term borrowings as of December 31, 2020. The weighted average interest rate of short-term loans in the years ended December 31, 2020 were 4.44%. Included in short-term borrowings there are two four million). In February 2021, the subsidiaries have fully repaid the loans. As of December 31, 2021, all the short-term borrowings has been fully repaid and there was no new short-term borrowings by the Company. ii) Bond payable In July 2020, the Company's Luxembourg subsidiary issued a bond to an investor in France for the purpose of financing the Company's PV plant projects in Poland totaling EUR 10.6 million ($13.1 million). The bond has a maturity date in November 2021. The balance of the bond as of December 31, 2020 was EUR 7.4 million ($9.0 million). In April 2021, the Luxembourg subsidiary fully repaid the bond and early terminated the bond contract. Interest rates are fixed for the bond payable. The weighted average interest rate of bond payable in the year ended December 31, 2020 was 5%. As of December 31, 2021, all bond has been fully repaid and there was no new bond payable issue. iii) Long-term borrowings In January 2021, the Company's United Kingdom ("UK") subsidiary obtained a long-term loan by a lender in the UK totally £45,563 ($61,510). The long-term loan has a maturity date of July 2026. The proceeds from this loan were used for general working capital purposes. The long-term borrowing was interest free for the year ended December 31, 2021. As of December 31, 2021, the long-term borrowings were $61,510. b) Financing associated with failed sale-lease back transactions In 2019, certain subsidiaries of the Company (the “seller-lessee”) sold self-built solar projects (“leased assets”) with carrying amount of $4,008,534 to different domestic financial leasing companies (the “buyer-lessors”) for cash consideration of $2,793,810, and simultaneously entered into the contracts to lease back the leased assets from the buyer-lessors for 5 to 10 years. These arrangements are guaranteed by other subsidiaries of the Company and are also pledged by the shares and rights to the future power generation income of the seller-lessee. Pursuant to the terms of the agreements, the seller-lessee is required to make lease payments to the buyer-lessors over the lease period and is entitled to obtain ownership of the equipment at a nominal price upon the expiration of the lease. As the leased assets are considered integral with real estate under ASC 360, the sale-leaseback rules related to real estate are applied. The lease transactions do not qualify as a sale-leaseback transaction as these solar projects are initially invested and built up by the seller-lessee with expected useful life of 25 years and are continuingly maintained by the seller-lessee. The seller-lessee has an obligation to repurchase the leased assets upon the expiry of the lease. In addition, after the lease period, the seller-lessee will keep using the assets and has no plans to sell or for early-disposal. Accordingly, these transactions are accounted for as financing transactions in accordance with ASC 840. Internal rate of return is used in the computation of interest cost. The assets remain in the property, plant and equipment (“PPE”) and continue to be depreciated. As of December 31, 2020 and 2021, the Company recorded $27,771,450 and $20,383,449 under failed sale and lease back liabilities as non-current portion and $4,436,040 and $6,712,423 as the current portion, which represents principal to be paid in the next year. The weighted average effective interest rate of the financing was 7.15% and 7.02% and interest costs incurred during the years ended December 31, 2020 and 2021 were $3,296,613 and $2,758,095, respectively. These failed sale-leaseback financings were collateralized by the underlying assets of the solar projects. c) Finance lease In 2020 and 2021, the Company leased module, inverter and other materials from different domestic financial leasing companies. Pursuant to the terms of the contracts, the Company is required to make lease payments to the finance lease companies and is entitled to obtain the ownership of this machinery and equipment at a nominal price upon the expiration of the lease. These arrangements are guaranteed by other subsidiaries of the Company and are also pledged by the shares and rights for the future power generation income of the leased assets. The lease is classified as finance lease. As of December 31, 2020, the total finance lease contracts entered by the Company is $33,050,116 and the carrying amount is included in finance lease right-of-use assets that is being depreciated over lives of 25 years. As of December 31, 2021, the total finance lease contracts entered by the Company is $33,840,480 and the carrying amount is included in finance lease right-of-use assets that is being depreciated over lives of 25 years. The payable related to these contracts as of December 31, 2020 and 2021 was $19,852,094 and $14,187,759, respectively. As of December 31, 2020 and 2021, the net values of the leased assets are: As of December 31, 2020 2021 Modules, inverters, and other $ 33,050,116 $ 33,840,480 As of December 31, 2021, future minimum payments required under the finance lease are: USD Years ended December 31, 2022 $ 5,086,027 2023 5,825,001 2024 2,121,515 2025 1,153,067 2026 897,184 2027 and later 879,979 Total minimum lease payments 15,962,773 Less: Amount representing interest (1,775,014) Present value of net minimum lease payments 14,187,759 Current portion 4,654,284 Non-current portion $ 9,533,475 At December 31, 2020 2021 Current portion of finance lease $ 3,661,015 $ 4,654,284 Current portion of failed sale and lease back 4,436,040 6,712,423 Total current portion of failed sale-lease back and finance lease 8,097,055 11,366,707 Non-current portion for finance lease 16,191,079 9,533,475 Non-current portion for failed sale and lease back 27,771,450 20,383,449 Total non-current portion of failed sale-lease back and finance lease $ 43,962,529 $ 29,916,924 d) Interest expense Interest expense incurred for the years ended December 31, 2019, 2020 and 2021 was $12,329,336, $6,464,266 and $5,272,202 of which $3,169,518, $258,190 and $118,408 has been capitalized in the carrying value of PPE and project assets. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
OTHER CURRENT LIABILITIES | |
OTHER CURRENT LIABILITIES | 12. OTHER CURRENT LIABILITIES The Company’s other current liabilities are summarized below: At December 31, 2020 2021 Payables for purchase of property, plant and equipment $ 8,958,993 $ 5,533,545 Interest payable 411,087 — Other tax payables 465,393 150,828 Accrued EPC warranty liabilities 196,322 198,629 Joint settlement payable (1) 7,500,000 — Other (2) 2,296,838 2,560,961 $ 19,828,633 $ 8,443,963 (1) Joint settlement payable represents the Company portion of a Settlement Sum payable by Renesola Zhejiang Ltd (“Zhejiang Yuhui Solar Energy Source Co., Ltd”), a former subsidiary of the Related Party, ReneSola Singapore, to OCI Company Ltd. The payable has been settled during 2021. (2) Other as of December 31, 2021 mainly includes the payables for claims, audit fees and other professional service fees. |
COMMON SHARES
COMMON SHARES | 12 Months Ended |
Dec. 31, 2021 | |
COMMON SHARES | |
COMMON SHARES | 13. COMMON SHARES Upon inception, the Company is authorized to issue a maximum of 500,000,000 no par value shares of a single class. On September 2017, The Company issued 180,000,000 common shares with a fair value of $42,480,000 to ReneSola Singapore Pte Ltd., as a result from the share repurchase and subscription agreement with Mr. Xianshou Li, for the sale of the Company’s manufacturing and LED distribution businesses. Total issued shares of the Company as of December 2017 was 381,027,002. On June 2018, the Company is authorized to issue a maximum of 600,000,000 no par value shares of a single class via approval by the Board of Directors (the “Board”). On October 2019, the Company issued and sold to Shah Capital Opportunity Fund LP 100,000,000 newly issued common shares at a market price of $0.11 per share, for a total consideration of $11,000,000. The newly issued shares are subject to a 180 days lockup period. Net proceeds from the transaction are intended to be used to expand the Company global project development activities. Total issued shares of the Company as of December 2019 was 481,027,002. On December 2020, the Company is authorized to issue a maximum of 800,000,000 no par value shares of a single class via Board approval. Further as of December 31, 2020, the Company issued additional 99,285,640 common shares via offerings with several institutional investors with total net proceeds of $41,495,212 after deducting placement agent fees and other offering expenses. Net proceeds from the transaction are intended to be used for expanding new solar project pipeline and general working capital purposes. Total issued shares of the Company as of December 2020 was 582,258,622. On April 2021, the Company is authorized to increase the maximum number of shares from 800,000,000 to 1,000,000,000 no par value shares of single class. Further as of December 2021, the Board authorized the Company to repurchase up to $50 million of shares. For the year ended December 31, 2021, the Company repurchased 30,904,110 no par value shares at the cost of $18.4 million. All repurchased shares under the repurchase program are classified as treasury shares of the Company until they are retired or reissued. As of December 31, 2021, total issued shares of the Company were 717,316,622. Through 2021, the Company issued additional 130,127,050 common shares, of which 125,000,000 common shares via offerings with several institutional investors with total net proceeds of $272,729,028 after deducting placement agent fees and other offering expenses. Net proceeds from the transaction are intended to be used for expanding new solar project pipeline and general working capital purposes. The remaining 5,127,050 common shares are issued for the employee share option plan. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | 14. SHARE BASED COMPENSATION 2007 Share Incentive Plan On September 27, 2007, the Company adopted the ReneSola Ltd 2007 Share Incentive Plan (the “Plan”) that provides for grant of share options, restricted shares and restricted share units to employees in the Plan. A maximum of 7,500,000 authorized but unissued shares of the Company have been reserved and allocated to the Plan, whose shares were subsequently registered and are issuable upon exercise of outstanding options granted under the Plan. The Plan shall be administered by the Compensation Committee of the Board of Directors (the “Committee”). On July 27, 2010, the Company has amended the Plan so as to increase the maximum number of authorized but unissued shares of the Company to 12,500,000 in accordance with the rules of the 2007 Share Incentive Plan. On December 21, 2020, the Company has amended the Plan to increase the number of authorized but unissued shares of the Company to 22,500,000 in accordance with the rules of the 2007 Share Incentive Plan. On December 29, 2021, the Company has amended the Plan to increase the maximum number of authorized but unissued shares of the Company to 42,500,000 in accordance with the rules of the 2007 Share Incentive Plan. Except as otherwise noted in the award agreements with the employee or consultant, the options can be exercised within six years from the award date, except for participant’s termination of employment or service. The vesting schedule and the exercise price per share will be determined by the Committee and set forth in the individual award agreement. In the event of any distribution, share split, or recapitalization of the Company, the Committee shall make such proportionate and equitable adjustments, if any, to reflect such change with respect to (a) the aggregate number and type of shares that may be issued under the Plan and (b) the terms and conditions of any outstanding awards. Except as may otherwise be provided in any award agreement, if a change of control occurs and a participant’s awards are not converted, assumed, or replaced by a successor, such awards shall become fully exercisable and all forfeiture restrictions on such awards shall lapse Options to Employees From January to December 2018, the Company granted 830,000 share options, representing 83,000 ADS to certain employees with exercise prices of $0.26. From January to December 2019, the Company granted 5,300,000 share options, representing 530,000 ADS to certain employees with exercise prices of $0.11 and $0.15. From January to December 2020, the Company granted 700,000 share options, representing 70,000 ADS to certain employees with an exercise price of $0.30 on the grant date. From January to December 2021, the Company granted 8,740,000 share options, representing 874,000 ADS to certain employees with an exercise price of 0.30, $0.16, $1.00 and $0.727 on the grant date with expected vesting periods within three years. Options Modification On August 8, 2012, the Board of Directors approved an option modification to reduce the exercise price of all the options granted before August 8, 2012 to the then fair market value of the Company’s ordinary shares underlying such options. All other terms of the share options granted remain unchanged. The modification resulted in incremental compensation cost of $774,932, of which $444,373 was recorded during the year ended December 31, 2012. The remaining $330,559 will be amortized over the remaining vesting period of the modified options, ranging from 2013 to 2017. On March 18, 2014, the Board of Directors approved another option modification to reduce the exercise price of certain options granted between August 8, 2012 and December 31, 2013 to the then fair market value of the Company’s ordinary shares underlying such options. All other terms of the share options granted remain unchanged. The incremental compensation cost resulted from modification was not material. On January 1, 2018, the Board of Directors approved an option modification to reduce the exercise price of certain options granted on January 1, 2014 to the then fair market value of the Company’s ordinary shares underlying such options. The number of shares, the expected terms were changed from 350,000 to 400,000, from 5 years to 3 years, respectively, other terms of the share option granted remain unchanged. The modification resulted in incremental compensation cost of $30,396, of which $10,132 and $10,132, $10,132 were recorded during the years ended December 31, 2018, 2019 and 2020, respectively. On April 1, 2018, the Board of Directors approved another option modification to reduce the exercise price of certain options granted on June 21, 2010, August 24, 2010, August 8, 2012, March 8, 2016 and August 24, 2016 to the then fair market value of the Company’s ordinary shares underlying such options. The expected term was changed from 5 years to 3 years, other terms of the share option granted remain unchanged. The modification resulted in incremental compensation cost of $233,996, of which $58,499, $58,499 , $98,174 and $18,824 were recorded during the years ended December 31, 2018, 2019, 2020 and 2021, respectively. The fair value of each option grant, as well as the fair value of option immediately before and after the aforementioned modification, is estimated on the date of grant or modification using the Black-Scholes option pricing model using the assumptions noted below. Average risk- Weighted average free expected option Dividend rate of return life Volatility rate yield Granted in 2019 1.60-1.82 % 3.2 years 47.61-57.16 % 0 % Granted in 2020 0.09-0.1 % 1 year 104.01-119.20 % 0 % Granted in 2021 0.33-0.97 % 3 year 131.84-132.91 % 0 % Expected volatilities based on the average of the standard deviation of the daily stock prices of the Company and other selected comparable companies in the same industry. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free rate of return is based on the US Treasury bond yield curve in effect at the time of grant for periods corresponding with the expected term of the option. A summary of the option activity is as follows: Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Options Exercise Prices Contractual Life Value Options Outstanding on January 1, 2018 6,165,000 0.71 1.64 — Granted 830,000 0.26 3.50 — Exercised — — — — Forfeited (1,535,000) 0.74 — — Outstanding on December 31, 2018 5,460,000 0.36 1.96 — Granted 5,300,000 0.15 2.91 — Exercised — — — — Forfeited (2,185,000) 0.43 — — Outstanding on December 31, 2019 8,575,000 0.21 0.14 — Granted 700,000 0.30 0.97 — Exercised (1,945,980) 0.25 — — Forfeited (25,000) 0.47 — — Outstanding on December 31, 2020 7,304,020 0.21 1.49 Granted 8,740,000 0.64 1.88 Exercised (120,680) 0.26 Forfeited (280,000) 1.00 Outstanding on December 31, 2021 15,643,340 0.43 1.32 2,535,646 Vested or expected to vest at December 31, 2021 15,643,340 0.43 1.31 2,535,646 Exercisable at December 31, 2021 5,250,001 0.23 0.57 2,011,353 The weighted average grant date fair value of options granted during the years ended December 31, 2019, 2020 and 2021 was $0.07, $0.70 and $0.58 respectively. Total intrinsic value of options exercised for the years ended December 31, 2020 and 2021 was $811,268 and $74,138 respectively. Total proceeds from options exercised were $484,038 Compensation cost of $348,916, $369,187 and $2,627,031 has been charged against income during the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2021, there was $4,244,105 in total unrecognized compensation expense related to unvested options granted under the Plan, which is expected to be recognized over a weighted-average period of 1.88 years. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 15. EMPLOYEE BENEFITS In accordance with the relevant rules and regulations in the PRC, employees of the Company are covered by benefit plans established by the local government. These plans are defined contribution plans and Zhejiang ReneSola Investment Ltd. (“ReneSola Investment”), Sichuan Bo Bo Power Engineering Co., Ltd. (“Sichuan Bo Bo”) and ReneSola Shanghai Ltd (“ReneSola Shanghai”), have respectively contributed 15%, 16% and 16% of the basic salaries of their employees to such plans. In addition, ReneSola Investment, Sichuan Bo Bo and ReneSola Shanghai are required by PRC law to respectively contribute approximately 17.95%, 14.63% and 16.16% of the basic salaries of their employees for medical insurance benefits, housing funds, unemployment and other statutory benefits. Other than such contributions, there is no further obligation for payments to employees under these plans. Total contributions were $1,257,335, $877,709 and $408,632 for the years ended December 31, 2019, 2020 and 2021, respectively. |
DISTRIBUTION OF PROFIT AND REST
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | |
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | 16. DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Company’s PRC subsidiaries registered as wholly owned foreign enterprise have to make appropriations from their after-tax profits as determined under Chinese Accounting Standards (“CAS”) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with CAS. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the respective company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion. In addition, in accordance with the PRC Company Laws, the Company’s PRC subsidiaries registered as Chinese domestic Companies must make appropriations from their after-tax profits as determined under CAS to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under CAS. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective Company. Appropriation to the discretionary surplus fund is made at the discretion of the respective Company. The general reserve is used to offset future losses. The subsidiary may, upon a resolution passed by the shareholder, convert the general reserve into capital. These reserves represent appropriations of the retained earnings determined in accordance with the Chinese law. In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiaries are considered as restricted net assets amounting to $32,500,000 and $50,500,000 as of December 31, 2020 and 2021, representing 17.7% and 11.3% of the Company’s total consolidated net assets as of December 31, 2020 and 2021, respectively. |
EARNINGS_ (LOSS) PER ADS
EARNINGS/ (LOSS) PER ADS | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS/ (LOSS) PER ADS | |
EARNINGS/ (LOSS) PER ADS | 17. EARNINGS/ (LOSS) PER ADS Basic earnings/(loss) per ADS and diluted earnings/(loss) per ADS have been calculated as follows: For the years ended December 31, 2019 2020 2021 Numerator: Net income/(loss) $ (11,680,155) $ 2,155,987 $ 6,614,460 Less: Net income/(loss) attributed to noncontrolling interests (2,848,932) (622,668) (247,413) Total net income/(loss) attributed to ReneSola Ltd $ (8,831,223) $ 2,778,655 $ 6,861,873 Numerator for diluted income/(loss) per ADS (8,831,223) 2,778,655 6,861,873 Denominator: Denominator for basic earnings/(loss) per ADS - weighted average number of ADS outstanding 40,595,551 49,166,354 68,906,139 Dilutive effects of share options, RSUs and warrants — 622,068 934,499 Denominator for diluted calculation - weighted average number of ADS outstanding* 40,595,551 49,788,422 69,840,638 Basic earnings/(loss) per ADS (0.22) 0.06 0.10 Diluted earnings/(loss) per ADS (0.22) 0.06 0.10 *Each ADS represents 10 common shares The Company issues ordinary shares to its share depository bank which will be used to settle stock option awards upon their exercise. Any ordinary shares not used in the settlement of stock option awards will be returned to the Company. As of December 31, 2020 and 2021, there are 9,774,550 and 45,805,710 ordinary shares, respectively, are legally issued to the share depository bank but are treated as escrowed shares for accounting purposes and therefore, have been excluded from the computation of earnings/(loss) per share. The Company uses income/(loss) from as the control number in determining whether those potential common shares are dilutive or antidilutive. That is, the number of potential common shares, after considering the shares repurchased used in computing the diluted per-share amount for income/(loss). The following ordinary share equivalents were excluded from the computation of diluted net earnings/(loss) per share for the periods presented because including them would have been anti-dilutive: For the years ended December 31, 2019 2020 2021 Share options 8,575,000 7,304,020 — |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2021 | |
NON-CONTROLLING INTEREST | |
NON-CONTROLLING INTEREST | 18. NON-CONTROLLING INTEREST On April 27, 2018, the Company subsidiary, ReneSola Investment entered into an investment agreement with Jiashan Yaozhuang Modern Service Industry Comprehensive Development Co., Ltd. (“Jiashan Development”) to increase its registered share capital by accepting investment of RMB200 million ($30.9 million). After the Capital Injection, Jiashan Development owns 40.13% of ReneSola Investment. Net proceeds are used for working capital and capital expenditures to develop and deliver solar energy projects. On December 31, 2019, the Company subsidiary, RPNC Holdings, LLC received contributions from non-controlling interest holders of subsidiaries, Fayetteville RG Solar, LLC with consideration of $13.1 million. Net proceeds are used for capital expenditures to construct solar energy projects. On September 15, 2021, the Company, ReneSola Ltd, received contributions from selling 49% of certain Company subsidiaries shares to non-controlling interest holders of subsidiaries, Eiffel Energy Transition Fund S.L.P, with consideration of $2.1 million. Net proceeds are used for capital expenditures to construct solar energy projects. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | 19. RELATED PARTY BALANCES AND TRANSACTIONS (a) Related party balances At December 31, 2020 2021 Due from ReneSola Singapore (1) $ 16,887,295 $ 2,345,874 Due from other Related Party (2) — 433,285 Allowance for credit losses (3) (9,853,290) (2,244,500) Due from Related Party balances, net 7,034,005 534,659 Due to ReneSola Singapore (1) 14,690,574 8,793,966 Due to other Related Party (2) — 1,272,143 Due to related party balances, net $ 7,656,569 $ 9,531,450 (b) Related party transactions During the years ended December 31, 2019, 2020 and 2021, related party transactions with ReneSola Singapore Pte., Ltd and its subsidiaries and other related party were as follows: Years ended December 31, 2019 2020 2021 Purchase of modules from $ 2,534,750 $ — $ — Receiving services — 26,070 23,538 Rendering of service to 834,875 299,626 — Borrowing from (4) 793,269 12,827 — Bond issued to (5) — — 1,272,143 Lending to (2) — — 433,285 (1) After the disposal of the discontinued business in September 2017, ReneSola Singapore Pte., Ltd and its subsidiaries became a related party of the Company in that both ReneSola Singapore and the Company are under common control of Mr. Li Xianshou. The balances due from ReneSola Singapore and its subsidiaries were mainly for rendering service to them. The balances due to ReneSola Singapore and its subsidiaries were mainly for modules, raw materials that the Company purchased from them and borrowings from them. (2) During 2021, the Company entered into joint venture agreement with Eiffel Energy Transition Fund S.L.P with intends to develop solar projects in Europe. The Company also transacted with its non-controlling interest's subsidiary company of Solar Nexus Limited. The balances due from other related party mainly represented borrowing provided to Solar Nexus Limited for working capital purpose. The balances due to other related party were bond issued to Eiffel Investment Group for solar power development purpose. (3) Allowance for credit losses represented long-aging receivable balances from ReneSola Singapore Pte., Ltd and its subsidiaries for which the Company deemed there was a credit risk. (4) Represents borrowings under an agreement between the Company (“borrower”) and ReneSola Singapore (the “lender”). The lender grants to the borrower a loan in the principal amount of up to $200 million with annual interest rate of 1% . There is no fixed repayment schedule of this loan. (5) Represents bond issued to Eiffel Investment Group up to EUR 7.03 million ($ 7.96 million) with annual interest rate of 2% . The bond has a maturity date of September 2031. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES (a) Operating lease accounting The Company leases rooftop, land, other property, and equipment under non-cancellable operating leases whose initial terms are typically 3 As this time, a certain portion of active leases within the Company portfolio are classified as operating leases under the new standard. Operating leases are included in leases right-of-use (“ROU”) assets, operating lease current liabilities, and operating lease non-current liabilities in the consolidated balance sheet. The ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make minimum lease payment arising from the lease for the duration of the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 year to 5 years or greater. The exercise of lease renewal option To determine the present value of future minimum lease payments, the Company use the implicit rate when readily determinable. At this time, many of the Company leases do not provide an implicit rate; therefore, to determine the present value of minimum lease payments, the Company use its incremental borrowing rate based on the information available at lease commencement date. The ROU assets also include any lease payments made and exclude lease incentives. The components of lease expenses consisted of the following: Year Ended December 31, Lease cost Classification 2021 Operating lease cost Amortization of leased assets Depreciation, amortization $ 585,337 Interest on lease liabilities Interest expense 1,100,599 Net lease cost $ 1,685,936 Lease Term and Discount Rate December 31, 2021 Weighted-average remaining lease term (years) Operating leases 20 Weighted-average discount rate (%) Operating leases 6.85 % Year Ended December 31, Other information 2021 Cash paid for amount included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,592,403 As of December 31, 2021, future minimum payments required under the operating lease are: USD Year ended December 31, 2022 $ 1,770,510 2023 1,624,160 2024 1,200,396 2025 1,302,384 2026 1,498,609 2027 and later 22,218,861 Total minimum lease payments 29,614,920 Less: Amount representing interest (13,110,015) Present value of net minimum lease payments $ 16,504,905 Current portion 726,842 Non-current portion 15,778,063 (b) Legal matters The Company is a party to legal matters and claims in the normal course of its operations. While the Company believes that the ultimate outcome of these matters will not have a material adverse effect on its financial position, results of operations or cash flows, the outcome of these matters is not determinable with certainty and negative outcomes may adversely affect the Company. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 21. SEGMENT REPORTING The solar power projects segment was formed in 2015, and involves solar power project development, EPC services and electricity generation revenue. Ancillary revenues and expenses and other unallocated costs and expenses are recorded in other. The Company separated the solar power project segment into three reportable segments, including solar power project development, EPC services and electricity generation revenue. Ancillary revenues and expenses and other unallocated costs and expenses are recorded in other. The chief operating decision maker is the chief executive officer of the Company. The Company only reports the segment information of net revenue and gross profit, to conform to the information the chief operating decision maker receives to assess the financial performance and allocate resources. There are no differences between the measurements of the Company’s reportable segment’s gross profit and the Company’s consolidated gross profit, as the Company uses the same profit measurement for all of the reportable segments and the consolidated entity. Furthermore, the Company’s chief operating decision maker is not provided with asset information by segment. As such, no asset information by segment is presented. The following table summarizes the Company’s revenues generated from each segment: Year ended December 31, 2019 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 90,096,551 $ 28,712,942 $ 69,751 $ 237,780 $ 119,117,024 Gross profit/(loss) $ 17,571,303 $ 16,763,190 $ (178,414) $ 69,969 $ 34,226,048 Year ended December 31, 2020 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 49,160,215 $ 23,547,162 $ — $ 795,506 $ 73,502,883 Gross profit $ 4,374,238 $ 11,668,935 $ — $ 642,609 $ 16,685,782 Year ended December 31, 2021 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 61,036,228 $ 17,969,727 $ — $ 655,837 $ 79,661,792 Gross profit $ 23,867,607 $ 7,420,366 $ — $ 136,868 $ 31,424,841 The following table summarizes the Company’s revenues generated by the geographic location of customers: Years ended December 31, 2019 2020 2021 China $ 24,470,827 $ 16,557,196 $ 16,901,791 United States 9,277,514 4,388,241 13,895,115 Canada — 15,557,800 — Romania 3,193,215 5,709,713 — UK 3,853,687 655,102 — Spain — — 2,839,291 France 730,962 152,548 96,210 Poland 59,884,835 10,008,838 24,943,755 Hungary 17,705,984 20,473,445 20,985,630 Total $ 119,117,024 $ 73,502,883 $ 79,661,792 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS On March 31, 2022, the Company purchased $10 million of two-year U.S. Treasury Note with annual interest rate of 2.33%. The Company expected to hold the Treasury Notes until the maturity on March 31, 2024. The Company classified this investment as held-to-maturity securities. On April 1, 2022, the Company announced the project sales of 24MW solar-plus-storage project in the UK to Innova, a company that invests in and operates renewable energy assets, with a focus on utility-scale ground mounted solar plants and battery energy storage sites, located in the UK. |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements have been prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to generate cash flows from operations, and the Company’s ability to arrange adequate financing arrangements, to support its working capital requirements. During 2021, the Company entered into securities purchase agreements with several institutional investors with the amount of $290 million. As of December 31, 2021, the balance of cash and cash equivalent was $254,065,589. The Company has performed a review of its cash flow forecast for at least the twelve months following the issuance date of these financial statements. The Company expects the solar power project business to generate positive cash inflow in the forecasted period. Although the Company has certain material short-term obligations that will require material financing cash outflows, such as financing lease payments, the Company concluded that there was no substantial doubt about the Company’s ability to continue as a going concern. Based on the above factors, management believes that adequate sources of liquidity exist to fund the Company’s working capital and capital expenditures requirements, and to meet its short-term debt obligations, other liabilities and commitments as they become due for at least twelve months from the issuance date of these financial statements. |
Basis of consolidation | (b) Basis of consolidation The consolidated financial statements include the financial statements of ReneSola Ltd and its subsidiaries. All inter-company transactions, balances and unrealized profits and losses have been eliminated on consolidation. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated statements of operations and comprehensive income (loss) includes the net income (loss) attributable to non-controlling interests when applicable. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows, when applicable. |
Fair value measurement | (c) Fair value measurement The Company estimates fair value of financial assets and liabilities as the price that would be received from the sales of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. See Note 9, “Fair Value Measurements,” for further details. |
Use of estimates | (d) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting periods presented. Actual results could materially differ from these estimates. Significant accounting estimates are susceptible to changes with the acquisition of the information, which include revenue recognition for sales of solar power projects, inputs used to recognize revenue over time, EPC warranties, allowances for credit losses, valuation of deferred tax assets, and recoverability of the carrying value of long-lived assets and project assets. Management bases its estimates and judgments on historical experience and on various other factors that it is believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The spread of the COVID-19 pandemic, which the World Health Organization declared a pandemic in 2020, has caused substantial disruptions in the global economy as well as significant volatility in the financial markets, the severity and duration of which remains uncertain. As a consequences of COVID-19, currencies in many of the countries where we operate suffered a significant depreciation against the U.S. dollar as compared to December 31, 2020, which increased the cost of some of our development supplies and therefore negatively affected our financial results. It is expected that the impact of the COVID-19 pandemic continues to unfold and may continue to have negative effect on our business, financial performance and the results of our operations. We cannot predict how long the COVID-19 pandemic will last, whether it will worsen or whether there will be further outbreaks in the future in any of the markets where we operate. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change in future periods. Actual results could differ from those estimates under different assumptions and/or conditions. |
Cash and cash equivalents | (e) Cash and cash equivalents Cash and cash equivalents represent cash on hand and held with banks, including demand deposits, which are unrestricted as to withdrawal and use, and which have maturities of three months or less when purchased. |
Restricted Cash | (f) Restricted Cash Restricted cash consists of cash and cash equivalents held by various banks to secure certain of our notes payable and other deposits designated for the payment of amounts related to loan interest. Restricted cash also includes cash and cash equivalents held in frozen bank accounts due to judicial property preservations. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within our consolidated balance sheets as of December 31, 2020 and 2021 to the total of such amounts as presented in the consolidated statements of cash flows: At December 31, 2020 2021 Cash and cash equivalents $ 40,593,094 $ 254,065,589 Restricted cash 83,217 316,777 Total cash, cash equivalents, and restricted cash $ 40,676,311 $ 254,382,366 |
Accounts Receivable, trade and unbilled | (g) Accounts Receivable, trade and unbilled Accounts Receivable Trade The Company records trade accounts receivable for unconditional rights to consideration arising from the performance under contracts with customers. The carrying value of such receivables, net of the allowance for credit losses, represents their estimated net realizable value. Our electricity generation revenue sales generally include up to 30-day payment terms following the transfer of control of the electricity generated to the customer. In addition, The Company is entitled to the feed-in tariff(s) (FIT) that the government guaranteed and subsidized electricity sale price at which solar power projects can produce green energy. The Company recognizes the FIT as part of the electricity generation revenue when the entitlement to receipt of such FIT is fulfilled. Accounts receivable from such FIT is expected to be collected beyond 12 months, which are discounted at an effective interest rate and recorded as a non-current asset. Payment terms for sales of project assets, operations and maintenance services vary by contract but are generally due upon demand or within several months of satisfying the associated performance obligations. As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component when it expects, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. The Company typically does not include extended payment terms in our contracts with customers. Accounts Receivable Unbilled Accounts receivable unbilled represents a contract asset for revenue that has been recognized in advance of billing the customer, which is common for our project-related sales contracts. Revenue may be recognized in advance of billing the customer, resulting in an amount recorded to “Accounts receivable unbilled” depending on the expected timing of payment for such unbilled receivables. Once the Company has an unconditional right to consideration, it typically bill our customer and reclassify the “Accounts receivable unbilled” to “Accounts receivable trade.” Billing requirements vary by contract but are generally structured around the completion of certain development, interconnection, or other specified milestones. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from a financial asset’s amortized cost to present the net amount we expect to collect from such asset. The Company estimates allowances for credit losses using relevant available information from both internal and external sources. The Company monitors the estimated credit losses associated with our trade accounts receivable and unbilled accounts receivable based primarily on our collection history, which it review annually, and the delinquency status of amounts owed to the Company, which it determine based on the aging of such receivables. Such methods and estimates are adjusted, as appropriate, for relevant past events, current conditions, and reasonable and supportable forecasts. The Company recognizes write-offs within the allowance for credit losses when cash receipts associated with our financial assets are deemed uncollectible. |
Project assets | (h) Project assets In 2012, the Company began entering into arrangements to develop commercial solar power projects (“project assets”) for sale upon their completion. Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to entering into a definitive sales agreement for the solar power project. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power project. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, and solar modules and related equipment. Interest costs incurred on debt during the construction phase are also capitalized within project assets. The Company does not depreciate the project assets when they are considered held for sale. Any revenue generated from a solar power project connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. In addition, the Company presents all expenditures related to the development and construction of project assets as a component of cash flows from operating activities. During the development phase, these project assets are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970-360, as they are considered in substance real estate. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that construction will be completed, and sale will occur within one year. The Company capitalizes costs related to solar power projects in various stages of development prior to entering into a definitive sales agreement for the solar power project, and classifies these costs as project assets on the consolidated balance sheets when the criteria in ASC 360-10-45-9 are met. If criteria are not met, the Company reclassifies these capitalized costs to property, plant and equipment, unless the delay in the period required to complete the sale is caused by events or circumstances beyond the Company’s control. Deferred project costs represent costs that are capitalized as deferred project assets for arrangements that are accounted for as real estate transactions after the Company has entered into a definitive sales arrangement, but before the sale is completed or before all criteria to recognize the sale as revenue are met. The Company classifies deferred project costs as noncurrent if satisfaction of all revenue recognition criteria is not expected within the next 12 months. The Company reviews project assets and deferred project costs for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets and the estimated costs to complete. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the respective project assets and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. |
Contract costs | (i) Contract costs The Company provides EPC services including engineering design, construction contracting and management, procurement of PV modules, balance-of-system components and other components. Contract costs generally include all direct costs, such as materials, direct labor, and subcontracts, and indirect costs identifiable with or allocable to the contracts. Contract costs also include the costs related to the design, engineering, and costs of all PV modules and materials needed for the projects for the cooperation arrangements with third party to jointly construct the power projects for sale. Contract costs are accumulated and are charged to operations as the related revenue from contracts is recognized. Refer to note 2 (s) Sale of project assets constructed by a third-party EPC contractor and EPC services for the corresponding revenue streams. |
Advances to suppliers | (j) Advances to suppliers In order to secure a stable supply of construction materials, the Company makes advance payments to suppliers for raw material supplies and advances for purchases of long-lived assets which are offset against future deliveries. Advances to suppliers for purchases expected within twelve months as of each balance sheet date are recorded as advances to suppliers in current assets and those associated with purchases expected over longer periods of time are recorded in non-current advances to suppliers. As of December 31, 2020 and 2021, advances to suppliers in current assets were $143,482 and $276,737, respectively, and non-current advances to suppliers for construction materials supplies were nil. The Company does not require collateral or other security against its advances to suppliers. As a result, the Company’s claims for such prepayments are unsecured, which exposes the Company to the suppliers’ credit risk. The Company performs ongoing credit evaluations of the financial condition of its material suppliers. |
Property, plant and equipment | (k) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is computed on a straight-line basis over the following estimated useful lives: Plant and machinery 3‑5 years Motor vehicles 4‑5 years Office equipment 3‑5 years Power stations 25 years Estimated useful life of land is infinite and no depreciation is provided. Construction in progress represents mainly the construction of solar power projects the Company will own and operate for electricity generation. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets and is recognized in the consolidated statement of operations upon disposal. |
Goodwill | (l) Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company’s acquisitions of interests in its subsidiaries. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event occurs, or circumstances change that could indicate that the asset might be impaired. Under ASC 350-20, the Company has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. The Company first make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value to determine whether it is necessary to perform a quantitative goodwill impairment test. Such qualitative impairment test considers various factors, including macroeconomic conditions, industry and market considerations, cost factors, the overall financial performance of a reporting unit, and any other relevant events affecting the Company or a reporting unit. If circumstances determine through the qualitative assessment that a reporting unit’s fair value is more likely than not greater than its carrying value, the quantitative impairment test is not required. If the qualitative assessment indicates it is more likely than not that a reporting unit’s fair value is less than its carrying value, the Company perform a quantitative impairment test. The quantitative impairment test is the comparison of the fair value of a reporting unit with its carrying amount, including goodwill. Our battery storage business represents our only reporting unit. We define the fair value of a reporting unit as the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. We primarily use an income approach to estimate the fair value of our reporting unit. Significant judgment is required when estimating the fair value of a reporting unit, including the forecasting of future operating results and the selection of discount and expected future growth rates used to determine projected cash flows. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is not impaired, and no further analysis is required. Conversely, if the carrying value of a reporting unit exceeds its estimated fair value, we record an impairment loss equal to the excess, not to exceed the total amount of goodwill allocated to the reporting unit. The Company performed a qualitative assessment for battery storage reporting unit and concluded that it was not more likely that the fair value of the reporting unit was less than its carrying amount. Accordingly, a quantitative goodwill impairment test for this reporting unit was not required in any period presented. |
Assets and liabilities held-for-sale | (m) Assets and liabilities held-for-sale Assets and asset disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when management has committed to a plan of sale and the sale is highly probable, the assets are available for immediate sale in their present condition, and they are expected to qualify for recognition as a completed sale within one year from the date of classification. Assets and liabilities classified as held for sale are measured at lower of their carrying amount or fair value less costs to sell. Long-lived assets to be sold are classified as held for sale considering the recognition criteria in ASC 360-10-45-9 in which all of the following criteria are met: ● Management, having the authority to approve the action, commits to a plan to sell the asset, ● The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; ● An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; ● The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; ● The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and ● Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. |
Interest capitalization | (n) Interest capitalization The Company capitalizes interest costs as part of the costs of constructing certain assets during the period of time required to get the assets ready for their intended use. The Company capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold, and all revenue recognition criteria are met. Interest is capitalized for solar power projects that are classified as property, plant and equipment and built for the Company to own and operate for electricity generation before the projects are completed and put into operation. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. |
Impairment of long-lived assets | (o) Impairment of long-lived assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or that the useful life is shorter than originally estimated. The Company assesses recoverability of the long-lived assets by comparing the carrying amount of the assets to the estimated future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The Company recognizes an impairment loss in the event the carrying amount exceeds the estimated future undiscounted cash flows attributable to such assets, measured as the difference between the carrying amount of the assets and the fair value of the impaired assets. Impairment losses of long-lived assets for the years ended December 31, 2020 and 2021 were $1,432,296 and $360,151, respectively. The impairment loss in 2020 was $1,432,296, of which $929,951 represented impairment loss from project assets with no further constructive value and $502,345 of which represented impairment losses from asset and liabilities held for sale. Impairment losses of these assets represented the difference between the carrying amount and fair value less cost to sell as a result of committed sale plans of solar power plants originally owned and operated by the Company for electricity generation. The impairment loss in 2021 was $360,151 which represented impairment loss from power stations in China. |
Leases | (p) Leases Leases are classified as finance or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a finance lease. At inception, a finance lease is recorded at the lower of the present value of minimum lease payments or the fair value of the asset. Assets under finance leases are amortized on a basis consistent with that of similar useful life of fixed assets or the end of lease term, whichever is earlier. If the lease transfers ownership or contains an option to purchase the asset that the lessee is reasonably certain to exercise, the finance leases should be amortized over the useful life of the asset. At the inception of each lease arrangement, the Company determines if the arrangement is a lease or contains an embedded lease and reviews the facts and circumstances of the arrangement to classify lease assets as operating or finance leases under ASU 2016-02, Leases (Topic 842). The Company has elected not to record any leases with terms of 12 months or less on the consolidated balance sheets. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities current and operating lease liabilities non-current on the consolidated balance sheets. Finance leases represent a small portion of the active lease agreements and are included in finance lease ROU assets, finance lease liabilities current and non-current on the consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation of the Company to make minimum lease payments arising from the lease for the duration of the lease term. Operating lease costs are recognized on a straight-line basis over the lease term. From time to time, the Company’s subsidiaries are asked to prepay the lease costs for over one year. As of December 31, 2020 and 2021, the prepaid rental fees of $767,276 and $706,693, respectively, were recorded in operating lease right-of-use assets. To determine the present value of future minimum lease payments, the Company use the implicit rate when readily determinable. Presently, because many of the leases do not provide an implicit rate, the Company applies its incremental borrowing rate, which is considered as the rate that the Company would negotiate when financing for a similar period, and with a similar guarantee, to obtain an asset of a similar value to the lease asset to determine the present value of the present value of minimum lease payment. The operating and finance lease ROU assets include any lease payment made and exclude lease incentives. For a sale-leaseback transaction, when the transaction involves real estate or integral equipment, sale-leaseback accounting shall be used by a seller-lessee only if the transaction includes all of the following a) normal leaseback; b) payment terms and provisions that adequately demonstrate the buyer-lessor’s initial and continuing investment in the property; and c) payment terms and provisions that transfer all of the other risks and rewards of ownership as demonstrated by the absence of any other continuing involvement by the seller-lessee. Equipment is determined to be integral when the cost to remove the equipment from its existing location, ship and reinstall at a new site, including any diminution in fair value, exceeds 10% of the fair value of the equipment at the time of original installation. If a sale-leaseback of real estate qualifies for sale-leaseback accounting, an analysis is performed to determine if the Company can record a sale and remove the assets from the balance sheet and recognize the lease; and if so, to determine whether to record the lease as either an operating or finance lease. If a sale-leaseback transaction does not qualify for sale-leaseback accounting because of any form of continuing involvement by the seller-lessee other than a normal leaseback, it is accounted for as a financing arrangement. |
Contingencies | (q) Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Income taxes | (r) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Deferred tax assets and liabilities are all classified as non-current in the consolidated balance sheets. |
Revenue recognition | (s) Revenue recognition Solar power project development a) Sale of project assets constructed by a third-party EPC contractor The Company recognizes revenue for sales of project assets constructed by a third-party EPC contractor over time as the Company’s performance creates an energy generation asset that is owned by the customer as it is being constructed and the customer can direct all activities related to the work in progress. Furthermore, the sale of a project asset when combined with EPC services represents a single performance obligation for the development and construction of a single generation asset. The Company recognizes revenue over time for construction contracts which recognize revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Under this business model, the EPC services are provided by a third-party service provider. In accordance with the terms and conditions of the EPC contract, the Company has the ability to direct a third party to ensure that the EPC services to the customer are performed therefore the Company acts as the principal in this arrangement and both the revenue and cost amounts paid to the EPC contractor are recognized on a gross basis. b) Sale of project assets constructed by the Company’s own EPC team Under this business model, the Company sells power projects after they have been completed or are near completion. The Company conducts the construction of the power plant and completes or nearly completes the project before it identifies a customer. When a customer is identified, the Company enters into two agreements through signing: Sale and Purchase Agreement (“SPA”) and Operations and Maintenance (“O&M”) Services Contract, which are generally signed on the same date. Such arrangements consist of two performance obligations: sale of solar project and O&M services. For sale of a solar project, the Company recognizes revenue at a point in time once control of project company is transferred to the customer as the Company has no remaining performance obligation once the control is transferred upon closing of the sale. For O&M services, the Company recognizes revenue over time, ratably over the service period, as this performance enhances an energy generation asset controlled by the customer. For sales agreements that have energy generation performance guarantees covering a certain timeframe or the availability guarantee in the O&M contract, if there is an underperformance event, the Company may incur liquidated damages as a percentage of the EPC contract price or as a percentage of O&M fees. Such performance guarantees represent a form of variable consideration and are estimated at contract inception at their most likely amount and updated at the end of each reporting period as additional performance data becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. c) Sale of project asset rights The Company sells the project rights to customers through the disposal of project companies holding the relevant permits. For these transactions, the project companies could either own the land or lease the land under the lease term that could cover the entire power plant’s life. In these transactions, the Company is also responsible for locating the electricity end subscribers on the customer’s behalf for a certain percentage of the entire contact consideration. Such arrangements consist of two performance obligations: sale of project rights and sourcing of end subscribers. The Company recognizes revenue for sale of project rights at a point in time once control of project rights is transferred to customer as the Company has no further obligations related to the project rights. The Company recognizes revenue for sourcing of end subscribers over time as the Company has an ongoing obligation during a certain period to source end subscribers. A portion of the sales price consideration is variable on the percentage of end subscribers sourced for the project. The Company estimates the amount that most likely overcomes the constraint on variable consideration to include in the transaction price based on the historical subscription rates achieved. EPC Services The Company provides EPC services under the EPC contracts, under which the Company provides one distinct performance obligation – design and build the power plant on customer’s site per customer’s request. The Company recognizes revenue for EPC services over time as the Company’s performance creates or enhances an energy generation asset controlled by the customer. In recognizing revenue over time, the Company follows the costs incurred method and uses the actual costs incurred relative to the total estimated costs (including module costs) in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. Costs incurred include direct materials, solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. The over time revenue recognition requires the Company to make estimates of net contract revenues and costs to complete the projects. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives, liquidated damages, and other payments to customers. Significant judgment is also required to evaluate assumptions related to the costs to complete the projects, including materials, labor, contingencies, and other system costs. Although the EPC contract usually clearly states a fixed unit price and the estimated total contract amount, the total contract amount is subject to variable consideration due to the difference between actual grid-connection capacity and estimated grid-connection capacity. The Company makes a reasonable estimation of grid-connection capacity, which represents a form of variable consideration. The variable consideration is estimated at the contact inception at the best estimate based on relevant experience and historical data and updated at the end of each reporting period as additional performance data becomes available and only to the extent that it is probably that a significant reversal of any revenue will not occur. If estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The effect of the changes on future periods are recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period, and the effects may be material depending on the size of the contracts or the changes in estimates. The Company bills the customer based on progress billing terms in the contract. Accounts receivable from EPC services (unbilled) represents revenue that has been recognized in advance of billing the customer, which is common for long-term construction contracts. The Company typically recognizes revenue from contracts for the construction and sale of PV solar power systems over time using cost-based input methods, which recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Accordingly, revenue could be recognized in advance of billing the customer, resulting in an amount recorded to “Accounts receivable from EPC services (unbilled)”. Once the Company has an unconditional right to consideration under a construction contract, the Company typically bills the customer accordingly and reclassifies the “Accounts receivable from EPC services (unbilled)” to “Accounts receivable from EPC services (billed).” Billing requirements vary by contract but are generally structured around the completion of certain construction milestones. Certain of the EPC contracts for PV solar power systems contain retainage provisions. Retainage represents contract costs for the portion of the contract price earned for work performed but held for payment by the customer as a form of security until a certain defined timeframe has been reached. The Company considers whether collectability of such retainage is reasonably assured in connection with our overall assessment of the collectability of amounts due or that will become due under the EPC contracts. Retainage included within “Accounts receivable from EPC services (unbilled)” is expected to be billed and collected within the next 12 months. After the Company has satisfied the EPC contract requirements and has an unconditional right to consideration, the retainage is billed and reclassified to “Accounts receivable from EPC services (billed)”. For EPC services, the Company provides a limited assurance only warranty for the modules, materials and construction part of the power plants. Although the Company subcontracts the construction to third party developers and purchase the raw materials and modules from third party suppliers, the Company is the primary obligor for the limited warranties such as solar module product warranty for a period of five one Electricity generation revenue The Company recognizes electricity generation revenue generated from power plants owned and operated by the Company over time as the customer receives and consumes the benefits as the Company performs. In recognizing revenue overtime, the Company follows the output method and uses the actual electricity supplied in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. The electricity generation records are reconciled with the power grid companies and the price of electricity is based on a fixed unit price according to the power purchase arrangement with the power grid companies. The Company is entitled to the feed-in tariff(s) (FIT) that the government guaranteed and subsidized electricity sale price at which solar power projects can produce green energy. The Company recognizes the FIT as part of the electricity generation revenue when the entitlement to receipt of such FIT is fulfilled. Accounts receivable from such FIT is expected to be collected beyond 12 months, which are discounted at an effective interest rate and recorded as non-current asset. Revenue from green certificates The Company receives green energy certificates based on electricity generated from the power plants in a Romanian subsidiary. The Company sells these certificates to buyers who can then meet the mandatory government quota per year for green energy produced. The Company believes that these green certificates are a government incentive and the sale of green energy certificates does not fall into derivative and lease accounting scope. The Company recognizes revenue for the sale at a point in time once the control of green certificates has been transferred to the buyers according to the green certificate purchase arrangement. The consideration of selling green certificates sold is fixed as stated in the purchase arrangement. For the years ended December 31, 2019, 2020 and 2021, revenues from green certificates were $1,957,109, $4,178,546 and nil, respectively, and are included in electricity generation revenue. In 2021, the Company did not generate revenue from green certificates mainly due to the disposal of the Company’s power plants in a Romanian subsidiary that previously sold green certificates. The Company does not anticipate generating revenue from the sale of green certificates in foreseeable future. Value added tax (“VAT”) Value added tax (“VAT”) at differentiated rates on invoice amount is collected on behalf of the tax authorities in respect of the different types of revenues and is not recorded as revenue. VAT paid for purchases, net of VAT collected from customers, is recorded as an asset. |
Other operating income (expenses) | (t) Other operating income (expenses) Other operating income (expenses) primarily consists of discount charges of long-term receivables, compensation income and expenses, cancellation loss of project assets, and disposal gain (loss) of property, plant and equipment. |
Foreign currency | (u) Foreign currency The functional currency of ReneSola Ltd is the United States Dollar (“U.S. dollar”). The functional currency of ReneSola’s subsidiaries in the People’s Republic of China (“PRC”) is Renminbi (“RMB”). The functional currency of the overseas subsidiaries normally is the local currency in the country where the subsidiary is domiciled. Foreign currency transactions have been translated into the functional currency at the exchange rates prevailing on the date of transactions. Foreign currency denominated monetary assets and liabilities are remeasured into the functional currency at exchange rates prevailing on the balance sheet date. Exchange gains and losses have been included in the determination of net income. The Company has chosen the U.S. dollar as its reporting currency. Assets and liabilities have been translated using exchange rates prevailing on the balance sheet date. Income statement items have been translated using the weighted average exchange rate for the year. Translation adjustments have been reported as a component of other comprehensive income in the consolidated statement of comprehensive income/(loss). The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Company’s cash and cash equivalents and restricted cash denominated in RMB amounted to RMB 22,429,739 ($3,437,515) and RMB79,358,888 ($12,453,155) on December 31, 2020 and 2021, respectively. |
Fair value of financial instruments | (v) Fair value of financial instruments Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). The Company utilizes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value maximize the use of observable inputs. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Company obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and as the Company’s evaluation of those factors changes. Although the Company uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Company’s consolidated assets, liabilities, equity and net income or loss. See Note 9, “Fair Value Measurements,” for further details. |
Earnings (loss) per ADS | (w) Earnings (loss) per ADS Basic earnings (loss) per ADS is computed by dividing income (loss) attributable to holders of ADS by the weighted average number of ADS outstanding during the year. Diluted earnings (loss) per ADS reflects the potential dilution that could occur if securities or other contracts to issue ADS were exercised or converted into ADS. |
Share-based compensation | (x) Share-based compensation The Company recognizes expenses for services received in exchange for awards of equity instruments based on the grant-date fair value of the award as determined by the Black-Scholes option pricing model, net of estimated forfeitures. The estimated compensation cost is recognized ratably over the period the grantee is required to provide services per the conditions of the award. For stock option modifications, the Company measures the incremental compensation cost which should be measured as the excess, if any, of the fair value of the modified award determined over the fair value of the original award immediately before its terms are modified, which is measured based on the share price and other pertinent factors at that date. On January 1, 2018 and April 1, 2018, the Board of Directors of the Company approved two option modifications to reduce the exercise price. Pursuant to the option agreement entered with the optionees, options totaling 3,250,000 were cancelled and options totaling 3,300,000 were granted. The cancellation and replacement of the options shall be considered as an option modification. Subject to ASC 718-20-35, total compensation cost measured at the date of a cancellation and replacement shall be the portion of the grant-date fair value of the original award for which the requisite service is expected to be rendered (or has already been rendered) at the date plus the incremental cost resulting from the cancellation and replacement. The incremental compensation cost should be recognized prospectively over the remaining service period in addition to unrecognized compensation cost for original option. See Note 14, “Share Based Compensation” for further details. |
Comprehensive income (loss) | (y) Comprehensive income (loss) Comprehensive income (loss) is the change in equity during a period from transactions and other events and circumstances from non-shareholder sources and included net income (loss) and foreign currency translation adjustments. As of December 31, 2020 and 2021, accumulated other comprehensive income (loss) is composed of foreign currency translation adjustments. |
Concentrations of credit risk | (z) Concentrations of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, advances to suppliers and other receivables. The Company places its cash and cash equivalents with reputable financial institutions. The Company conducts credit evaluations of customers and generally does not require collateral or other security from its customers. The Company monitors the financial condition of customers and performs credit evaluations whenever considered necessary. |
Recently adopted accounting pronouncements | (aa) Recently adopted accounting pronouncements In December 2019, the FASB issued ASU 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted the ASU during the first quarter of fiscal year 2021. The adoption did not have a material impact on our consolidated financial statements. |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Schedule of the following table provides a reconciliation of cash, cash equivalents, and restricted cash | At December 31, 2020 2021 Cash and cash equivalents $ 40,593,094 $ 254,065,589 Restricted cash 83,217 316,777 Total cash, cash equivalents, and restricted cash $ 40,676,311 $ 254,382,366 |
Schedule of property, plant and equipment estimated useful lives | Plant and machinery 3‑5 years Motor vehicles 4‑5 years Office equipment 3‑5 years Power stations 25 years |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS ACQUISITION | |
Schedule of final allocation on the purchase prices to the fair value of the net assets acquired | As of acquisition close date Project assets (1) $ 2,874,060 Net assets acquired 2,874,060 Goodwill 1,022,567 Total consideration transferred/Net cash paid $ 3,896,627 (1) Included in project assets are incurred cost such as consultant fee, legal fee and salaries which have been capitalized in accordance with ASC 970-360, as they are directly attributable and incurred in the development phase. |
ACCOUNTS RECEIVABLE TRADE, NET
ACCOUNTS RECEIVABLE TRADE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE TRADE, NET | |
Schedule of components of accounts receivable, net | At December 31, 2020 2021 Accounts receivable trade – from EPC services $ 3,033,610 $ 2,640,710 – from solar power project assets 16,310,787 22,995,822 – from electricity generation revenue (1) 3,270,966 10,848,278 Total accounts receivable trade 22,615,363 36,484,810 Less: allowance for credit losses (2,427,577) (2,135,885) Accounts receivable trade, net $ 20,187,786 $ 34,348,925 (1) Accounts receivable from electricity generation revenue were mainly due from China’s state grid companies. The amounts included the portion of feed-in tariff(s) (FIT) for the electricity sold to the state grid companies in the PRC in which the relevant on-grid solar power stations are still pending for registration to the Renewable Energy Subsidy Catalog, which the Company has submitted the application for its solar power stations started operation before July 2017 to be registered on the Catalog. The Company expects that a certain part of the FIT receivables will be recovered after twelve months from the reporting date, which are discounted at an effective interest rate. As of December 31, 2021, there are $9,045,884 of FIT receivables classified as current and $24,457,930 classified as non-current. |
Schedule of Accounts Receivable Unbilled | At December 31, 2020 2021 Accounts receivable unbilled –from solar power project assets $ — $ 11,473,590 |
Schedule of movement in lifetime expected credit losses that has been recognized for trade receivable | At December 31, 2020 2021 At beginning of year $ 1,908,803 $ 2,427,577 Allowance for credit losses 518,774 90,345 Written off — (382,037) At end of year $ 2,427,577 $ 2,135,885 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | At December 31, 2020 2021 Receivable from disposal of property, plant and equipment (1) $ 35,298,500 $ 3,714,161 Refundable deposits (2) 8,176,247 8,048,529 EPC Warranty reimbursement receivables 196,322 201,067 Others (3) 2,417,974 3,989,377 Total prepaid expenses and other current assets 46,089,043 15,953,134 Allowance for credit losses (4) (1,262,709) (1,434,483) Total prepaid expenses and other current assets $ 44,826,334 $ 14,518,651 (1) Receivable from disposal of property, plant and equipment mainly represented disposal of Company’s solar power assets which was primarily for electricity generation revenue segment. (2) As of December 31, 2021, refundable deposits mainly represented refundable deposits for interconnection, and the bidding of project asset construction rights and rooftop leases. (3) As of December 31, 2021, others mainly included $ 1,553,881 deposit at the broker for the shares repurchase, $ 859,621 prepayment on Korea project development, and $ 255,025 receivable for compensation from the insurance provider for China projects. (4) Allowance for credit losses mainly represented the portion of compensation receivable from Canadian authorities on closure of a certain project in Canada that the Company believes is not recoverable, unrecoverable collection from sold entities in China, and allowance for the Korea project’s prepayment which the Company deemed partially not recoverable. |
PROJECT ASSETS (Tables)
PROJECT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROJECT ASSETS | |
Schedule of Project Assets | At December 31, 2020 2021 Project assets - Module cost $ 3,877,147 $ 1,077,213 Project assets - Development and construction cost 23,367,183 14,631,425 Project assets - Others 1,026,662 429,199 Total project assets $ 28,270,992 $ 16,137,837 Current portion 24,992,068 9,587,254 Non-current portion 3,278,924 6,550,583 |
ASSETS HELD FOR SALE AND LIAB_2
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE | |
Schedule of consolidated balance sheet | At December 31, 2020 2021 Assets classified as held for sale Cash and cash equivalents $ 53,899 $ — Accounts receivable, net 184,920 — Value added tax recoverable 158,213 — Prepaid expenses and other current assets 23,075 — Property, plant and equipment, net 2,169,527 — Operating lease right-of-use asset — — Impairment of assets (1) (318,619) — Total assets classified as held for sale 2,271,015 — Liabilities classified as held for sale Accounts payable — — Other current liabilities 1,659,753 — Operating lease liabilities — — Failed sales leased back and finance lease liability 529,012 — Total liabilities classified as held for sale $ 2,188,765 $ — (1) As a result of the acquisition agreement, the Company reassessed the value of net assets on the solar power plant to the lower of carrying amount or fair value less cost to sell. As of December 31, 2020, the impairment loss of $318,619 has been applied to reduce the carrying amount of these assets classified as held for sale. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment. net | At December 31, 2020 2021 Land $ 282,000 $ 282,000 Plant and machinery 828,761 858,948 Motor vehicles 193,530 65,473 Office equipment 260,178 252,150 Power stations 131,355,790 138,533,441 Less: Accumulated depreciation (13,728,141) (19,181,277) 119,192,118 120,810,735 Construction in progress 751,353 4,835,751 Property, plant and equipment, net $ 119,943,471 $ 125,646,486 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of Components of Tax Benefit (Expense) | Years ended December 31, 2019 2020 2021 Income (loss) before income tax PRC $ (10,273,181) $ 2,104,024 $ 1,589,476 Other jurisdictions (301,925) 214,999 5,799,396 Total (10,575,106) 2,319,023 7,388,872 Current tax expense PRC (9,835) (5,118) (348,494) Other jurisdictions (839,676) (441,495) (66,754) Subtotal (849,511) (446,613) (415,248) Deferred tax benefit (expense) PRC — — — Other jurisdictions (255,538) 283,577 (359,164) Subtotal (255,538) 283,577 (359,164) Total income tax expense $ (1,105,049) $ (163,036) $ (774,412) |
Schedule of Principal Components of Deferred Income Tax Assets and Liabilities | At December 31, 2020 2021 Deferred tax assets: Accrued expenses $ 13,451 $ 13,772 Net operating losses 9,491,051 7,214,260 Unrealized internal profit 1,125,023 776,260 Allowances for credit losses 1,281,259 1,209,220 Impairment loss of assets 122,764 126,337 Other 157,101 133,409 Total gross deferred tax assets 12,190,649 9,473,258 Valuation allowance on deferred tax assets (11,006,328) (8,696,997) Net deferred tax assets $ 1,184,321 $ 776,261 |
Schedule of Reconciliation Between the Applicable Statutory Income Tax Rate and the Company's Effective Tax Rate | Years ended December 31, 2019 2020 2021 PRC applicable income tax rate 25 % 25 % 25 % Change in deferred tax valuation allowance (57) % (21) % (20) % Preferential tax rate (1) 7 % (42) % (16) % Effect of different tax rate of subsidiaries 16 % 39 % 17 % Other (1) % 6 % 4 % Effective income tax rate (10) % 7 % 10 % |
Schedule of Aggregate Amount and Per Share Effect of the Tax Holiday | Years ended December 31, 2019 2020 2021 Preferential tax effect (1) $ 720,847 $ 975,859 $ 1,160,939 (1) Certain solar power project entities are fully exempted from PRC CIT for three years starting from the year in which such project generates revenue from the sale of electricity and is 50% exempted from PRC CIT for another three years. Besides, certain solar power project entities enjoy the preferential tax policies in connection with the development of the western region of China and are subject to a preferential tax rate of 15 %. |
BORROWINGS AND OTHER FINANCIN_2
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | |
Schedule of bank borrowings | At December 31, 2020 2021 Short-term borrowings $ 31,980,868 $ — Long-term borrowings, current portion — — Subtotal borrowings 31,980,868 — Bond payable 9,034,691 — Long-term borrowings — 61,510 Total borrowings from bank and other third parties $ 41,015,559 $ 61,510 |
Schedule of net values of leased assets | As of December 31, 2020 2021 Modules, inverters, and other $ 33,050,116 $ 33,840,480 |
Schedule of future minimum payments required under the finance lease | USD Years ended December 31, 2022 $ 5,086,027 2023 5,825,001 2024 2,121,515 2025 1,153,067 2026 897,184 2027 and later 879,979 Total minimum lease payments 15,962,773 Less: Amount representing interest (1,775,014) Present value of net minimum lease payments 14,187,759 Current portion 4,654,284 Non-current portion $ 9,533,475 |
Schedule of components of failed sale-lease back and finance lease liabilities | At December 31, 2020 2021 Current portion of finance lease $ 3,661,015 $ 4,654,284 Current portion of failed sale and lease back 4,436,040 6,712,423 Total current portion of failed sale-lease back and finance lease 8,097,055 11,366,707 Non-current portion for finance lease 16,191,079 9,533,475 Non-current portion for failed sale and lease back 27,771,450 20,383,449 Total non-current portion of failed sale-lease back and finance lease $ 43,962,529 $ 29,916,924 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER CURRENT LIABILITIES | |
Schedule of Other Current Liabilities | At December 31, 2020 2021 Payables for purchase of property, plant and equipment $ 8,958,993 $ 5,533,545 Interest payable 411,087 — Other tax payables 465,393 150,828 Accrued EPC warranty liabilities 196,322 198,629 Joint settlement payable (1) 7,500,000 — Other (2) 2,296,838 2,560,961 $ 19,828,633 $ 8,443,963 (1) Joint settlement payable represents the Company portion of a Settlement Sum payable by Renesola Zhejiang Ltd (“Zhejiang Yuhui Solar Energy Source Co., Ltd”), a former subsidiary of the Related Party, ReneSola Singapore, to OCI Company Ltd. The payable has been settled during 2021. (2) Other as of December 31, 2021 mainly includes the payables for claims, audit fees and other professional service fees. |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE BASED COMPENSATION | |
Schedule of assumptions used to estimate the fair value of the options | Average risk- Weighted average free expected option Dividend rate of return life Volatility rate yield Granted in 2019 1.60-1.82 % 3.2 years 47.61-57.16 % 0 % Granted in 2020 0.09-0.1 % 1 year 104.01-119.20 % 0 % Granted in 2021 0.33-0.97 % 3 year 131.84-132.91 % 0 % |
Schedule of the option activity | Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Options Exercise Prices Contractual Life Value Options Outstanding on January 1, 2018 6,165,000 0.71 1.64 — Granted 830,000 0.26 3.50 — Exercised — — — — Forfeited (1,535,000) 0.74 — — Outstanding on December 31, 2018 5,460,000 0.36 1.96 — Granted 5,300,000 0.15 2.91 — Exercised — — — — Forfeited (2,185,000) 0.43 — — Outstanding on December 31, 2019 8,575,000 0.21 0.14 — Granted 700,000 0.30 0.97 — Exercised (1,945,980) 0.25 — — Forfeited (25,000) 0.47 — — Outstanding on December 31, 2020 7,304,020 0.21 1.49 Granted 8,740,000 0.64 1.88 Exercised (120,680) 0.26 Forfeited (280,000) 1.00 Outstanding on December 31, 2021 15,643,340 0.43 1.32 2,535,646 Vested or expected to vest at December 31, 2021 15,643,340 0.43 1.31 2,535,646 Exercisable at December 31, 2021 5,250,001 0.23 0.57 2,011,353 |
EARNINGS_ (LOSS) PER ADS (Table
EARNINGS/ (LOSS) PER ADS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS/ (LOSS) PER ADS | |
Schedule of Basic earnings/(loss) per ADS and diluted earnings/(loss) per ADS | For the years ended December 31, 2019 2020 2021 Numerator: Net income/(loss) $ (11,680,155) $ 2,155,987 $ 6,614,460 Less: Net income/(loss) attributed to noncontrolling interests (2,848,932) (622,668) (247,413) Total net income/(loss) attributed to ReneSola Ltd $ (8,831,223) $ 2,778,655 $ 6,861,873 Numerator for diluted income/(loss) per ADS (8,831,223) 2,778,655 6,861,873 Denominator: Denominator for basic earnings/(loss) per ADS - weighted average number of ADS outstanding 40,595,551 49,166,354 68,906,139 Dilutive effects of share options, RSUs and warrants — 622,068 934,499 Denominator for diluted calculation - weighted average number of ADS outstanding* 40,595,551 49,788,422 69,840,638 Basic earnings/(loss) per ADS (0.22) 0.06 0.10 Diluted earnings/(loss) per ADS (0.22) 0.06 0.10 *Each ADS represents 10 common shares |
Schedule of the computation of diluted net earnings/(loss) per ADS for the periods presented because including them would have been anti-dilutive | For the years ended December 31, 2019 2020 2021 Share options 8,575,000 7,304,020 — |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
Schedule of amounts due to related parties comprised of amounts payable to purchase of raw materials and others | At December 31, 2020 2021 Due from ReneSola Singapore (1) $ 16,887,295 $ 2,345,874 Due from other Related Party (2) — 433,285 Allowance for credit losses (3) (9,853,290) (2,244,500) Due from Related Party balances, net 7,034,005 534,659 Due to ReneSola Singapore (1) 14,690,574 8,793,966 Due to other Related Party (2) — 1,272,143 Due to related party balances, net $ 7,656,569 $ 9,531,450 |
Schedule of related party transactions | Years ended December 31, 2019 2020 2021 Purchase of modules from $ 2,534,750 $ — $ — Receiving services — 26,070 23,538 Rendering of service to 834,875 299,626 — Borrowing from (4) 793,269 12,827 — Bond issued to (5) — — 1,272,143 Lending to (2) — — 433,285 (1) After the disposal of the discontinued business in September 2017, ReneSola Singapore Pte., Ltd and its subsidiaries became a related party of the Company in that both ReneSola Singapore and the Company are under common control of Mr. Li Xianshou. The balances due from ReneSola Singapore and its subsidiaries were mainly for rendering service to them. The balances due to ReneSola Singapore and its subsidiaries were mainly for modules, raw materials that the Company purchased from them and borrowings from them. (2) During 2021, the Company entered into joint venture agreement with Eiffel Energy Transition Fund S.L.P with intends to develop solar projects in Europe. The Company also transacted with its non-controlling interest's subsidiary company of Solar Nexus Limited. The balances due from other related party mainly represented borrowing provided to Solar Nexus Limited for working capital purpose. The balances due to other related party were bond issued to Eiffel Investment Group for solar power development purpose. (3) Allowance for credit losses represented long-aging receivable balances from ReneSola Singapore Pte., Ltd and its subsidiaries for which the Company deemed there was a credit risk. (4) Represents borrowings under an agreement between the Company (“borrower”) and ReneSola Singapore (the “lender”). The lender grants to the borrower a loan in the principal amount of up to $200 million with annual interest rate of 1% . There is no fixed repayment schedule of this loan. (5) Represents bond issued to Eiffel Investment Group up to EUR 7.03 million ($ 7.96 million) with annual interest rate of 2% . The bond has a maturity date of September 2031. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of components of lease expenses | Year Ended December 31, Lease cost Classification 2021 Operating lease cost Amortization of leased assets Depreciation, amortization $ 585,337 Interest on lease liabilities Interest expense 1,100,599 Net lease cost $ 1,685,936 Lease Term and Discount Rate December 31, 2021 Weighted-average remaining lease term (years) Operating leases 20 Weighted-average discount rate (%) Operating leases 6.85 % Year Ended December 31, Other information 2021 Cash paid for amount included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,592,403 |
Schedule of future minimum payments required under the operating lease | USD Year ended December 31, 2022 $ 1,770,510 2023 1,624,160 2024 1,200,396 2025 1,302,384 2026 1,498,609 2027 and later 22,218,861 Total minimum lease payments 29,614,920 Less: Amount representing interest (13,110,015) Present value of net minimum lease payments $ 16,504,905 Current portion 726,842 Non-current portion 15,778,063 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT REPORTING | |
Schedule of the Company's revenues generated from each segment | Year ended December 31, 2019 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 90,096,551 $ 28,712,942 $ 69,751 $ 237,780 $ 119,117,024 Gross profit/(loss) $ 17,571,303 $ 16,763,190 $ (178,414) $ 69,969 $ 34,226,048 Year ended December 31, 2020 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 49,160,215 $ 23,547,162 $ — $ 795,506 $ 73,502,883 Gross profit $ 4,374,238 $ 11,668,935 $ — $ 642,609 $ 16,685,782 Year ended December 31, 2021 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 61,036,228 $ 17,969,727 $ — $ 655,837 $ 79,661,792 Gross profit $ 23,867,607 $ 7,420,366 $ — $ 136,868 $ 31,424,841 |
Schedule of the Company's revenues generated by geographic location of customers | Years ended December 31, 2019 2020 2021 China $ 24,470,827 $ 16,557,196 $ 16,901,791 United States 9,277,514 4,388,241 13,895,115 Canada — 15,557,800 — Romania 3,193,215 5,709,713 — UK 3,853,687 655,102 — Spain — — 2,839,291 France 730,962 152,548 96,210 Poland 59,884,835 10,008,838 24,943,755 Hungary 17,705,984 20,473,445 20,985,630 Total $ 119,117,024 $ 73,502,883 $ 79,661,792 |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Advances to Suppliers and Advances for Purchase of Property, Plant and Equipment and Intangible Assets) (Details) - USD ($) | 12 Months Ended | |||||
Apr. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents | $ 254,065,589 | $ 40,593,094 | ||||
Advances to suppliers-current | 276,737 | 143,482 | ||||
Advances to suppliers-Noncurrent | $ 0 | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 3,250,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,300,000 | 8,740,000 | 700,000 | 5,300,000 | 830,000 | |
Prepaid Expense, Noncurrent | $ 706,693 | $ 767,276 | ||||
Institutional Investors | ||||||
Amount invested for securities purchase agreements | 290,000,000 | |||||
Cash and cash equivalents | $ 254,065,589 |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Estimated Useful Lives of Property, Plant and Equipment Stated at Cost Less Accumulated Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Plant and machinery [Member] | Minimum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 3 years |
Plant and machinery [Member] | Maximum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | Minimum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 4 years |
Motor vehicles [Member] | Maximum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 5 years |
Office equipment [Member] | Minimum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 5 years |
Power stations [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 25 years |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Convertible Senior Notes, Revenue Recognition, Deferred Project Revenue, Cost of Revenues, Warranty Costs and Government Grants) (Details) | 12 Months Ended | ||
Dec. 31, 2021 USD ($) agreement | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Number of Agreements | agreement | 2 | ||
Impairment losses of long-lived assets | $ 360,151 | $ 1,432,296 | |
Impairment loss from project assets with no further constructive value | 929,951 | ||
Impairment losses from asset and liabilities held for sale | $ 502,345 | ||
Minimum | |||
Term of product warranty | 5 years | ||
Term of service warranty | 1 year | ||
Maximum | |||
Term of product warranty | 10 years | ||
Term of service warranty | 2 years | ||
Green Certificates | |||
Revenue from green certificates | $ 0 | $ 4,178,546 | $ 1,957,109 |
SUMMARY OF PRINCIPAL ACCOUNTI_7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Foreign Currency and Derivative Financial Instruments) (Details) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Cash and cash equivalents, functional currency equivalent of foreign currency denominated amount | ¥ 79,358,888 | $ (12,453,155) | ¥ 22,429,739 | $ 3,437,515 |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Restricted cash (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Cash and cash equivalents | $ 254,065,589 | $ 40,593,094 |
Restricted cash | 316,777 | 83,217 |
Total cash, cash equivalents, and restricted cash | $ 254,382,366 | $ 40,676,311 |
BUSINESS ACQUISITION (Details)
BUSINESS ACQUISITION (Details) - USD ($) | Nov. 17, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 1,022,567 | $ 1,022,567 | |
PA Holdings and CA Holdings | |||
BUSINESS ACQUISITION | |||
Equity interest acquired (in percent) | 100% | ||
Cash consideration | $ 3,900,000 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Project assets | 2,874,060 | ||
Net assets acquired | 2,874,060 | ||
Goodwill | 1,022,567 | ||
Total consideration transferred/Net cash paid | $ 3,896,627 |
ACCOUNTS RECEIVABLE TRADE, NE_2
ACCOUNTS RECEIVABLE TRADE, NET - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 34,348,925 | $ 20,187,786 |
Electricity Revenue Generation | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Feed-in tariff(s) (FIT) receivables, recovery period | 12 months | |
Feed-in tariff(s) (FIT) receivables, current | $ 9,045,884 | |
Feed-in tariff(s) (FIT) receivables, noncurrent | 24,457,930 | |
Solar power customers | Credit concentration | Accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 19,153,699 | $ 8,257,527 |
Concentration risk percentage | 56% | 41% |
Number Of Customer With Greater Than 10 Of Accounts Receivable | 10 | 10 |
Solar power customers | Customer concentration | Net revenues | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk percentage | 28% | 48% |
ACCOUNTS RECEIVABLE TRADE, NE_3
ACCOUNTS RECEIVABLE TRADE, NET (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | $ 36,484,810 | $ 22,615,363 |
Less: allowance for credit losses | (2,135,885) | (2,427,577) |
Accounts receivable trade, net | 34,348,925 | 20,187,786 |
Trade Accounts Receivable One [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | 2,640,710 | 3,033,610 |
Trade Accounts Receivable Two [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | 22,995,822 | 16,310,787 |
Trade Accounts Receivable Three [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | $ 10,848,278 | $ 3,270,966 |
ACCOUNTS RECEIVABLE TRADE, NE_4
ACCOUNTS RECEIVABLE TRADE, NET - Accounts receivable unbilled (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable unbilled | $ 11,473,590 | $ 0 |
solar power project assets | ||
Accounts receivable unbilled | $ 11,473,590 | $ 0 |
ACCOUNTS RECEIVABLE TRADE, NE_5
ACCOUNTS RECEIVABLE TRADE, NET - Allowance for credit losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
ALLOWANCE FOR CREDIT LOSSES | ||
At beginning of year | $ 2,427,577 | $ 1,908,803 |
Allowance for credit losses | 90,345 | 518,774 |
Written off | (382,037) | 0 |
At end of year | $ 2,135,885 | $ 2,427,577 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Receivable from disposal of property, plant and equipment | $ 3,714,161 | $ 35,298,500 |
Refundable deposits | 8,048,529 | 8,176,247 |
EPC Warranty reimbursement receivables | 201,067 | 196,322 |
Others | 3,989,377 | 2,417,974 |
Total prepaid expenses and other current assets | 15,953,134 | 46,089,043 |
Allowance for credit losses | (1,434,483) | (1,262,709) |
Total prepaid expenses and other current assets | $ 14,518,651 | $ 44,826,334 |
PREPAID EXPENSES AND OTHER CU_4
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Additional Information (Details) | Dec. 31, 2021 USD ($) |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Deposit made to broker for Shares repurchase | $ 1,553,881 |
Prepayment on Korea project development | 859,621 |
Compensation from insurance company | $ 255,025 |
PROJECT ASSETS - Schedule of Pr
PROJECT ASSETS - Schedule of Project Assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
PROJECT ASSETS | ||
Project assets - Module cost | $ 1,077,213 | $ 3,877,147 |
Project assets - Development and construction cost | 14,631,425 | 23,367,183 |
Project assets - Others | 429,199 | 1,026,662 |
Total project assets | 16,137,837 | 28,270,992 |
Current portion | 9,587,254 | 24,992,068 |
Non-current portion | $ 6,550,583 | $ 3,278,924 |
ASSETS HELD FOR SALE AND LIAB_3
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Assets classified as held for sale | ||
Total assets classified as held for sale | $ 0 | $ 2,271,015 |
Liabilities classified as held for sale | ||
Total liabilities classified as held for sale | 0 | 2,188,765 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Solar power plant subsidiaries | ||
Assets classified as held for sale | ||
Cash and cash equivalents | 0 | 53,899 |
Accounts receivable, net | 0 | 184,920 |
Value added tax recoverable | 0 | 158,213 |
Prepaid expenses and other current assets | 0 | 23,075 |
Property, plant and equipment, net | 0 | 2,169,527 |
Operating lease right-of-use asset | 0 | |
Impairment of assets | 0 | (318,619) |
Total assets classified as held for sale | 0 | 2,271,015 |
Liabilities classified as held for sale | ||
Accounts payable | 0 | |
Other current liabilities | 0 | 1,659,753 |
Operating lease liabilities | 0 | |
Failed sales leased back and finance lease liability | 0 | 529,012 |
Total liabilities classified as held for sale | $ 0 | $ 2,188,765 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Depreciation expense | $ 6,794,404 | $ 7,342,327 | $ 7,796,003 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment Net (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Less: Accumulated depreciation | $ (19,181,277) | $ (13,728,141) |
Property, plant and equipment Before Construction | 120,810,735 | 119,192,118 |
Property, plant and equipment, net | 125,646,486 | 119,943,471 |
Land [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 282,000 | 282,000 |
Plant and machinery [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 858,948 | 828,761 |
Motor vehicles [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 65,473 | 193,530 |
Office equipment [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 252,150 | 260,178 |
Power stations [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 138,533,441 | 131,355,790 |
Construction in progress [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | $ 4,835,751 | $ 751,353 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 12 Months Ended | ||||||
Jan. 01, 2008 | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
INCOME TAXES | |||||||
Statutory income tax rate in PRC (as a percent) | 25% | 25% | 25% | ||||
Amount of underpayment of tax considered for applicability of extended period of statute of limitations Period | ¥ 100,000 | $ 15,692 | |||||
Interest and penalties | ¥ | 0 | ¥ 0 | |||||
Accrual of uncertain tax benefits | ¥ | ¥ 0 | ¥ 0 | |||||
Preferential tax rate | (16.00%) | (42.00%) | 7% | ||||
Valuation allowance on deferred tax assets | 8,696,997 | $ 11,006,328 | |||||
CHINA | |||||||
INCOME TAXES | |||||||
Statutory income tax rate in PRC (as a percent) | 25% | ||||||
Preferential tax rate | 15% | ||||||
Connecticut | |||||||
INCOME TAXES | |||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 7.50% | 7.50% | |||||
California Franchise Tax Board [Member] | |||||||
INCOME TAXES | |||||||
Statutory income tax rate in PRC (as a percent) | 21% | 21% | 21% | ||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 8.84% | 8.84% | |||||
PRC [Member] | |||||||
INCOME TAXES | |||||||
Net operating loss carryforwards | 12,937,591 | ||||||
Income Tax Holiday, Description | Pursuant to PRC tax laws, certain PRC domiciled subsidiaries of the Company are solar power generation enterprises, which are entitled to a three-year tax exemption from Corporate Income Tax (“CIT”) from first operation year and a 50% CIT reduction for the succeeding three years thereafter. | ||||||
PRC [Member] | 2022 | |||||||
INCOME TAXES | |||||||
Net operating loss carryforwards | 2,705 | ||||||
PRC [Member] | 2023 | |||||||
INCOME TAXES | |||||||
Net operating loss carryforwards | 879 | ||||||
PRC [Member] | 2024 | |||||||
INCOME TAXES | |||||||
Net operating loss carryforwards | 6,029,897 | ||||||
PRC [Member] | 2025 | |||||||
INCOME TAXES | |||||||
Net operating loss carryforwards | 1,616,711 | ||||||
PRC [Member] | 2026 | |||||||
INCOME TAXES | |||||||
Net operating loss carryforwards | $ 5,287,399 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Tax Benefit (Expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income (Loss) before income tax | |||
PRC | $ 1,589,476 | $ 2,104,024 | $ (10,273,181) |
Other jurisdictions | 5,799,396 | 214,999 | (301,925) |
Total | 7,388,872 | 2,319,023 | (10,575,106) |
Current tax expense | |||
PRC | (348,494) | (5,118) | (9,835) |
Other jurisdictions | (66,754) | (441,495) | (839,676) |
Subtotal | (415,248) | (446,613) | (849,511) |
Deferred tax benefit (expense) | |||
PRC | 0 | 0 | 0 |
Other jurisdictions | (359,164) | 283,577 | (255,538) |
Subtotal | (359,164) | 283,577 | (255,538) |
Total income tax expense | $ (774,412) | $ (163,036) | $ (1,105,049) |
INCOME TAXES - Schedule of Prin
INCOME TAXES - Schedule of Principal Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accrued expenses | $ 13,772 | $ 13,451 |
Net operating losses | 7,214,260 | 9,491,051 |
Unrealized internal profit | 776,260 | 1,125,023 |
Allowances for doubtful accounts | 1,209,220 | 1,281,259 |
Impairment loss of assets | 126,337 | 122,764 |
Others | 133,409 | 157,101 |
Total gross deferred tax assets | 9,473,258 | 12,190,649 |
Valuation allowance on deferred tax assets | (8,696,997) | (11,006,328) |
Net deferred tax assets | $ 776,261 | $ 1,184,321 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation Between the Applicable Statutory Income Tax Rate and the Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation between the applicable statutory income tax rate and the Company's effective tax rate | |||
PRC applicable income tax rate | 25% | 25% | 25% |
Change in deferred tax valuation allowance | (20.00%) | (21.00%) | (57.00%) |
Preferential tax rate | (16.00%) | (42.00%) | 7% |
Effect of different tax rate of subsidiaries | 17% | 39% | 16% |
Other | 4% | 6% | (1.00%) |
Effective income tax rate | 10% | 7% | (10.00%) |
INCOME TAXES - Schedule of Aggr
INCOME TAXES - Schedule of Aggregate Amount and Per Share Effect of the Tax Holiday (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CHINA | |||
Aggregate amount and per share effect of the Tax Holiday | |||
Preferential tax effect | $ 1,160,939 | $ 975,859 | $ 720,847 |
BORROWINGS AND OTHER FINANCIN_3
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Details) € in Millions, ₩ in Billions | 1 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2020 USD ($) | Jul. 31, 2020 EUR (€) | Mar. 31, 2013 USD ($) loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Jan. 31, 2021 USD ($) | Jan. 31, 2021 GBP (£) | Dec. 31, 2020 KRW (₩) | Dec. 31, 2020 EUR (€) | Mar. 31, 2013 KRW (₩) | |
BORROWINGS [Line Items] | |||||||||||
Short-term borrowings | $ 0 | $ 31,980,868 | |||||||||
Weighted average interest rate (as a percent) | 4.44% | 4.44% | 4.44% | ||||||||
Proceeds from bonds | $ 13,100,000 | € 10.6 | 2,358,546 | $ 8,427,712 | $ 12,913,675 | ||||||
Bond payable | 0 | 9,034,691 | € 7.4 | ||||||||
Interest expense | |||||||||||
Interest Costs Incurred | 5,272,202 | 6,464,266 | 12,329,336 | ||||||||
Interest Paid, Capitalized | $ 118,408 | 258,190 | 3,169,518 | ||||||||
Sale Leaseback Transaction, Net Book Value | 4,008,534 | ||||||||||
Cash consideration received in sale of self-built solar projects | $ 2,793,810 | ||||||||||
Sale Leaseback Transaction, Lease Terms | 5 to 10 years | ||||||||||
Solar Project, Useful Life | 25 years | ||||||||||
Failed Sale Leaseback Transaction, Amount Due under Financing Arrangement, Noncurrent | $ 20,383,449 | 27,771,450 | |||||||||
Interest Expense, Debt | $ 2,758,095 | $ 3,296,613 | |||||||||
Financings With Failed Sale Lease Back Transactions [Member] | |||||||||||
BORROWINGS [Line Items] | |||||||||||
Weighted average interest rate | 7.02% | 7.15% | 7.15% | 7.15% | |||||||
Interest expense | |||||||||||
Failed Sale Leaseback Transaction, Amount Due under Financing Arrangement, Current | $ 6,712,423 | $ 4,436,040 | |||||||||
Term loan | |||||||||||
BORROWINGS [Line Items] | |||||||||||
Number of term loans | loan | 2 | ||||||||||
Borrowings term (in years) | 4 years | ||||||||||
Term loan amount | $ 30,900,000 | ₩ 35.7 | |||||||||
Short-term borrowings | 26,200,000 | ₩ 28.5 | |||||||||
Bond payable | |||||||||||
BORROWINGS [Line Items] | |||||||||||
Bond payable | $ 9,000,000 | ||||||||||
Weighted average interest rate | 5% | 5% | 5% | ||||||||
Secured debt [Member] | |||||||||||
BORROWINGS [Line Items] | |||||||||||
Short-term borrowings | $ 31,980,868 | ||||||||||
Bond payable | $ 9,034,691 | ||||||||||
Interest expense | |||||||||||
Long-term Debt | $ 61,510 | ||||||||||
Secured debt [Member] | UK Lender | |||||||||||
Interest expense | |||||||||||
Long-term Debt | $ 61,510 | £ 45,563 |
BORROWINGS AND OTHER FINANCIN_4
BORROWINGS AND OTHER FINANCING ARRANGEMENTS - Schedule of Bank Borrowings (Details) € in Millions | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 EUR (€) |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | |||
Short-term | $ 0 | $ 31,980,868 | |
Long-term, current portion | 0 | 0 | |
Subtotal | 0 | 31,980,868 | |
Bond payable | 0 | 9,034,691 | € 7.4 |
Long-term | 61,510 | 0 | |
Total borrowings from bank and other third parties | $ 61,510 | $ 41,015,559 |
BORROWINGS AND OTHER FINANCIN_5
BORROWINGS AND OTHER FINANCING ARRANGEMENTS - Finance lease (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease liabilities | $ 14,187,759 | $ 19,852,094 | $ 20,766,512 |
Modules, inverters, and other | |||
Finance lease right-of-use assets | $ 33,840,480 | $ 33,050,116 | |
Estimated useful lives | 25 years | 25 years | |
Finance lease liabilities | $ 14,187,759 | $ 19,852,094 |
BORROWINGS AND OTHER FINANCIN_6
BORROWINGS AND OTHER FINANCING ARRANGEMENTS - Schedule Of Finance Lease Future Payments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | |||
2022 | $ 5,086,027 | ||
2023 | 5,825,001 | ||
2024 | 2,121,515 | ||
2025 | 1,153,067 | ||
2026 | 897,184 | ||
2027 and later | 879,979 | ||
Total minimum lease payments | 15,962,773 | ||
Less: Amount representing interest | (1,775,014) | ||
Present value of net minimum lease payments | 14,187,759 | $ 19,852,094 | $ 20,766,512 |
Current portion | 4,654,284 | 3,661,015 | |
Non-current portion | 9,533,475 | 16,191,079 | |
Current portion of finance lease | 4,654,284 | 3,661,015 | |
Current portion of failed sale and lease back | 6,712,423 | 4,436,040 | |
Total current portion of failed sale-lease back and finance lease | 11,366,707 | 8,097,055 | |
Non-current portion for finance lease | 9,533,475 | 16,191,079 | |
Non-current portion for failed sale and lease back | 20,383,449 | 27,771,450 | |
Total non-current portion of failed sale-lease back and finance lease | $ 29,916,924 | $ 43,962,529 |
OTHER CURRENT LIABILITIES - Sch
OTHER CURRENT LIABILITIES - Schedule of Other Current Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
OTHER CURRENT LIABILITIES | ||
Payable for purchase of property, plant and equipment | $ 5,533,545 | $ 8,958,993 |
Interest Payable | 0 | 411,087 |
Other tax payables | 150,828 | 465,393 |
Accrued EPC warranty liabilities | 198,629 | 196,322 |
Joint settlement payable | 0 | 7,500,000 |
Others | 2,560,961 | 2,296,838 |
Other current liabilities | $ 8,443,963 | $ 19,828,633 |
COMMON SHARES (Details)
COMMON SHARES (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Oct. 31, 2019 | Sep. 30, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2021 | Jun. 30, 2018 | Dec. 31, 2017 | Mar. 17, 2006 | |
Class of Stock [Line Items] | ||||||||||
Common shares, shares authorized | 800,000,000 | 1,000,000,000 | 800,000,000 | 600,000,000 | 500,000,000 | |||||
Common shares, par value | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Shares issued during period | 99,285,640 | 100,000,000 | 180,000,000 | 130,127,050 | ||||||
Issuance of common shares | $ 42,480,000 | $ 272,729,028 | $ 41,495,212 | $ 10,894,890 | ||||||
Common shares, total issued shares | 582,258,622 | 717,316,622 | 582,258,622 | 481,027,002 | 381,027,002 | |||||
Market price | $ 0.11 | |||||||||
Total consideration | $ 41,495,212 | $ 11,000,000 | $ 290,000,000 | $ 44,999,330 | $ 11,000,000 | |||||
Lockup period for issuance of shares | 180 days | |||||||||
Shares repurchase (in shares) | 30,904,110 | |||||||||
Shares repurchase | $ 18,446,119 | |||||||||
Amount authorized for share repurchase | $ 50,000,000 | |||||||||
Number of shares repurchased | 30,904,110 | |||||||||
Common stock issued from Share option plan | $ 31,226 | $ 484,038 | ||||||||
Common shares, shares issued | 582,258,622 | 717,316,622 | 582,258,622 | 481,027,002 | 381,027,002 | |||||
Several Institutional Investors | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued during period | 125,000,000 | |||||||||
Common shares, total issued shares | 5,127,050 | |||||||||
Common shares, shares issued | 5,127,050 | |||||||||
Minimum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common shares, shares authorized | 800,000,000 | |||||||||
Maximum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common shares, shares authorized | 1,000,000,000 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | ||||||||||
Apr. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2012 | Dec. 29, 2021 | Dec. 21, 2020 | Jul. 27, 2010 | Sep. 27, 2007 | |
Additional disclosures [Abstract] | |||||||||||
Granted (in shares) | 3,300,000 | 8,740,000 | 700,000 | 5,300,000 | 830,000 | ||||||
Granted (in dollars per share) | $ 0.64 | $ 0.30 | $ 0.15 | $ 0.26 | |||||||
Total intrinsic value of options exercised | $ 0 | $ 0 | $ 0 | ||||||||
Additional disclosures [Abstract] | |||||||||||
Unrecognized compensation expense related to unvested share-based compensation arrangements | $ 4,244,105 | ||||||||||
Options [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Total intrinsic value of options exercised | 74,138 | 811,268 | |||||||||
Proceeds received on exercise | $ 31,226 | 484,038 | |||||||||
Previously Reported [Member] | |||||||||||
Options modification [Abstract] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease) | 350,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||||
Restatement Adjustment [Member] | |||||||||||
Options modification [Abstract] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease) | 400,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||
Share Option Exercise Price 0.30 [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Granted (in shares) | 0.30 | ||||||||||
Share Option Exercise Price 0.16 [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Granted (in shares) | 0.16 | ||||||||||
Share Option Exercise Price 1.00 [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Granted (in shares) | 1 | ||||||||||
Share Option Exercise Price 0.727 [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Granted (in shares) | 0.727 | ||||||||||
Share options [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Compensation cost | $ 2,627,031 | $ 369,187 | $ 348,916 | ||||||||
Granted (in shares) | 8,740,000 | 700,000 | 5,300,000 | 830,000 | |||||||
Granted (in dollars per share) | $ 0.30 | $ 0.26 | |||||||||
Options modification [Abstract] | |||||||||||
Total incremental compensation cost | $ 30,396 | $ 774,932 | |||||||||
Incremental compensation cost | $ 10,132 | $ 10,132 | $ 10,132 | 444,373 | |||||||
Unrecognized incremental compensation costs | $ 330,559 | ||||||||||
Additional disclosures [Abstract] | |||||||||||
Weighted average fair value of options granted (in dollars per share) | $ 0.58 | $ 0.70 | $ 0.07 | ||||||||
Period for recognition of unrecognized compensation costs | 1 year 10 months 17 days | ||||||||||
Share options [Member] | Previously Reported [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Granted (in dollars per share) | 0.11 | ||||||||||
Share options [Member] | Restatement Adjustment [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Granted (in dollars per share) | $ 0.15 | ||||||||||
Share another option [Member] | |||||||||||
Options modification [Abstract] | |||||||||||
Total incremental compensation cost | $ 233,996 | ||||||||||
Incremental compensation cost | $ 18,824 | $ 98,174 | $ 58,499 | $ 58,499 | |||||||
Share another option [Member] | Previously Reported [Member] | |||||||||||
Options modification [Abstract] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||||
Share another option [Member] | Restatement Adjustment [Member] | |||||||||||
Options modification [Abstract] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||
American Depositary Shares [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Granted (in shares) | 874,000 | 70,000 | 530,000 | 83,000 | |||||||
2007 Share Incentive Plan [Member] | |||||||||||
Additional disclosures [Abstract] | |||||||||||
Number of authorized shares | 42,500,000 | 22,500,000 | 12,500,000 | 7,500,000 |
SHARE BASED COMPENSATION - Sche
SHARE BASED COMPENSATION - Schedule of Assumptions Used to Estimate the Fair Value of the Options (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assumptions used to estimate fair value of the options [Abstract] | |||
Average risk-free rate of return, minimum (as a percent) | 0.33% | 0.09% | 1.60% |
Average risk-free rate of return, maximum (as a percent) | 0.97% | 0.10% | 1.82% |
Weighted average expected option life | 3 years | 1 year | 3 years 2 months 12 days |
Volatility rate, minimum (as a percent) | 131.84% | 104.01% | 47.61% |
Volatility rate, maximum (as a percent) | 132.91% | 119.20% | 57.16% |
Dividend yield (as a percent) | 0% | 0% | 0% |
Maximum | |||
Assumptions used to estimate fair value of the options [Abstract] | |||
Weighted average expected option life | 6 years |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of the Option Activity (Details) - USD ($) | 12 Months Ended | |||||
Apr. 01, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options [Roll Forward] | ||||||
Options outstanding at the beginning of the period (in shares) | 7,304,020 | 8,575,000 | 6,165,000 | 5,460,000 | ||
Granted (in shares) | 3,300,000 | 8,740,000 | 700,000 | 5,300,000 | 830,000 | |
Exercised (in shares) | (120,680) | (1,945,980) | 0 | 0 | ||
Forfeited (in shares) | (280,000) | (25,000) | (2,185,000) | (1,535,000) | ||
Options outstanding at the end of the period (in shares) | 15,643,340 | 7,304,020 | 8,575,000 | 6,165,000 | 5,460,000 | |
Vested or expected to vest at the end of the period (in shares) | 15,643,340 | |||||
Exercisable at the end of the period (in shares) | 5,250,001 | |||||
Weighted Average Exercise Prices [Abstract] | ||||||
Options outstanding at the beginning of the period (in dollars per share) | $ 0.21 | $ 0.21 | $ 0.71 | $ 0.36 | ||
Granted (in dollars per share) | 0.64 | 0.30 | 0.15 | 0.26 | ||
Exercised (in dollars per share) | 0.26 | 0.25 | 0 | 0 | ||
Forfeited (in dollars per share) | 1 | 0.47 | 0.43 | 0.74 | ||
Options outstanding at the end of the period (in dollars per share) | 0.43 | $ 0.21 | $ 0.21 | $ 0.71 | $ 0.36 | |
Vested or expected to vest at the end of the period (in dollars per share) | 0.43 | |||||
Exercised at the end of the period (in dollars per share) | $ 0.23 | |||||
Weighted Average Remaining Contractual Life [Abstract] | ||||||
Outstanding at the beginning of the period | 1 year 3 months 25 days | 1 year 5 months 26 days | 1 month 20 days | 1 year 7 months 20 days | 1 year 11 months 15 days | |
Granted | 1 year 10 months 17 days | 11 months 19 days | 2 years 10 months 28 days | 3 years 6 months | ||
Outstanding at the end of the period | 1 year 3 months 25 days | 1 year 5 months 26 days | 1 month 20 days | 1 year 7 months 20 days | 1 year 11 months 15 days | |
Vested or expected to vest at the end of the period | 1 year 3 months 21 days | |||||
Exercisable at the end of the period | 6 months 25 days | |||||
Aggregate Intrinsic Value [Abstract] | ||||||
Outstanding at the beginning of the period (in dollars) | $ 0 | $ 0 | $ 0 | |||
Granted (in dollars) | 0 | 0 | 0 | |||
Exercised (in dollars) | 0 | 0 | 0 | |||
Forfeited (in dollars) | $ 0 | 0 | ||||
Outstanding at the end of the period (in dollars) | $ 2,535,646 | $ 0 | $ 0 | $ 0 | ||
Vested or expected to vest at the end of the period (in dollars) | 2,535,646 | |||||
Exercisable at the end of the period (in dollars) | $ 2,011,353 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
EMPLOYEE BENEFITS [Line Items] | |||
Total contribution | $ 408,632 | $ 877,709 | $ 1,257,335 |
ReneSola Investment | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 15% | ||
Percentage of employer's contribution required by PRC law | 17.95% | ||
Sichuan Bo Bo | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 16% | ||
Percentage of employer's contribution required by PRC law | 14.63% | ||
ReneSola Shanghai | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 16% | ||
Percentage of employer's contribution required by PRC law | 16.16% |
DISTRIBUTION OF PROFIT AND RE_2
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | ||
Appropriations to general reserve as a percentage of profit after tax, minimum | 10% | |
Percentage of general reserve fund if appropriation is not required | 50% | |
Percentage of appropriation to statutory surplus fund | 10% | |
Percentage of registered capital when appropriation is not required | 50% | |
Restricted net assets of PRC subsidiaries | $ 50,500,000 | $ 32,500,000 |
Restricted net assets, percent of net assets | 11.30% | 17.70% |
EARNINGS_ (LOSS) PER ADS - Sche
EARNINGS/ (LOSS) PER ADS - Schedule of Basic and Diluted Earnings Per ADS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Numerator: | ||||
Net income/(loss) | $ 6,614,460 | $ 2,155,987 | $ (11,680,155) | |
Less: Net income/(loss) attributed to noncontrolling interests | (247,413) | (622,668) | (2,848,932) | |
Total net income/(loss) attributed to ReneSola Ltd | 6,861,873 | 2,778,655 | (8,831,223) | |
Numerator for diluted income/(loss) per ADS | $ 6,861,873 | $ 2,778,655 | $ (8,831,223) | |
Denominator: | ||||
Denominator for basic earnings/(loss) per ADS - weighted average number of ADS outstanding | [1] | 68,906,139 | 49,166,354 | 40,595,551 |
Dilutive effects of share options, RSUs and warrants | 934,499 | 622,068 | 0 | |
Denominator for diluted calculation - weighted average number of ADS outstanding | [1] | 69,840,638 | 49,788,422 | 40,595,551 |
Basic earnings/(loss) per ADS | $ 0.10 | $ 0.06 | $ (0.22) | |
Diluted earnings/(loss) per ADS | $ 0.10 | $ 0.06 | $ (0.22) | |
[1]Each American depositary shares (ADS) represents 10 common shares |
EARNINGS_ (LOSS) PER ADS - Sc_2
EARNINGS/ (LOSS) PER ADS - Schedules of Computation of Diluted Net Earnings/(Loss) Per ADS (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share options [Member] | |||
Antidilutive Securities Excluded from Computation of Diluted Net Earnings/(loss) Per Share | 0 | 7,304,020 | 8,575,000 |
EARNINGS_ (LOSS) PER ADS - Addi
EARNINGS/ (LOSS) PER ADS - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS/ (LOSS) PER ADS | ||
Number of shares issued to the share depository bank but are treated as escrowed shares | 45,805,710 | 9,774,550 |
Number of shares per ADS | 10 |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) ¥ in Millions | 12 Months Ended | |||||
Sep. 15, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2020 USD ($) | Apr. 27, 2018 USD ($) | Apr. 27, 2018 CNY (¥) | |
NON-CONTROLLING INTEREST [Line Items] | ||||||
Registered share capital | $ 44,406,916 | $ 44,122,572 | ||||
Contribution from non-controlling interest | $ 2,100,000 | $ 2,118,240 | ||||
Percentage of non controlling interest | 49% | |||||
ReneSola Investment | ||||||
NON-CONTROLLING INTEREST [Line Items] | ||||||
Ownership interest | 40.13% | 40.13% | ||||
Jiashan Development | ReneSola Investment | ||||||
NON-CONTROLLING INTEREST [Line Items] | ||||||
Registered share capital | $ 30,900,000 | ¥ 200 | ||||
RPNC Holdings | ||||||
NON-CONTROLLING INTEREST [Line Items] | ||||||
Contribution from non-controlling interest | $ 13,100,000 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | |||
Lending to | $ 433,285 | $ 0 | $ 0 |
Rene Sola Singapore Pte Ltd [Member] | |||
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | |||
Due from related parties, gross | 2,345,874 | 16,887,295 | |
Due from other Related Party (2) | 433,285 | 0 | |
Allowance for credit losses (3) | (2,244,500) | (9,853,290) | |
Due from related parties, net | 534,659 | 7,034,005 | |
Due to related parties | 8,793,966 | 14,690,574 | |
Due to related party balances, net | 9,531,450 | 7,656,569 | |
Due to other Related Party (2) | 1,272,143 | 0 | |
Purchase of modules from | 0 | 0 | 2,534,750 |
Receiving services | 23,538 | 26,070 | 0 |
Rendering of service to | 0 | 299,626 | 834,875 |
Borrowing from | 0 | 12,827 | 793,269 |
Bond issued to (5) | 1,272,143 | 0 | 0 |
Lending to | $ 433,285 | $ 0 | $ 0 |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS - Additional Information (Details) € in Thousands, $ in Thousands | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) |
Rene Sola Singapore Pte Ltd [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | ||
Debt Instrument, Face Amount | $ 200,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1% | 1% |
Eiffel Investment Group [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2% | 2% |
Debt Instrument, Face Amount, Issuance of bond | $ 7,960 | € 7,030 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Operating lease accounting (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Operating lease cost | ||
Amortization of leased assets | $ 585,337 | |
Interest on lease liabilities | 1,100,599 | |
Net lease cost | $ 1,685,936 | |
Lease Term and Discount Rate | ||
Weighted-average remaining lease term (years) - Operating leases | 20 years | |
Weighted-average discount rate (%) - Operating leases | 6.85% | |
Other information | ||
Cash paid for amount included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 1,592,403 | |
Future minimum payments required under the operating lease | ||
2022 | 1,770,510 | |
2023 | 1,624,160 | |
2024 | 1,200,396 | |
2025 | 1,302,384 | |
2026 | 1,498,609 | |
2027 and later | 22,218,861 | |
Total minimum lease payments | 29,614,920 | |
Less: Amount representing interest | (13,110,015) | |
Present value of net minimum lease payments | 16,504,905 | |
Current portion | 726,842 | $ 1,092,797 |
Non-current portion | $ 15,778,063 | $ 21,410,701 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Initial term of the lease | 3 years | |
Initial term of some leases | 35 years | |
Renewal term of the lease | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Initial term of the lease | 25 years | |
Renewal term of the lease | 5 years |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of the Company's Revenues Generated from Each Segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Company's revenues generated from each segment [Line Items] | |||
Net revenue | $ 79,661,792 | $ 73,502,883 | $ 119,117,024 |
Gross profit | 31,424,841 | 16,685,782 | 34,226,048 |
Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 79,661,792 | 73,502,883 | 119,117,024 |
Gross profit | 31,424,841 | 16,685,782 | 34,226,048 |
Solar power projects | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 61,036,228 | 49,160,215 | 90,096,551 |
Gross profit | 23,867,607 | 4,374,238 | 17,571,303 |
Electricity generation | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 17,969,727 | 23,547,162 | 28,712,942 |
Gross profit | 7,420,366 | 11,668,935 | 16,763,190 |
EPC services | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 0 | 69,751 | |
Gross profit | 0 | (178,414) | |
Other | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 655,837 | 795,506 | 237,780 |
Gross profit | $ 136,868 | $ 642,609 | $ 69,969 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of the Company's Revenues Generated by Geographic Location of Customers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 79,661,792 | $ 73,502,883 | $ 119,117,024 |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 16,901,791 | 16,557,196 | 24,470,827 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 13,895,115 | 4,388,241 | 9,277,514 |
CANADA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 0 | 15,557,800 | 0 |
ROMANIA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 0 | 5,709,713 | 3,193,215 |
UK | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 0 | 655,102 | 3,853,687 |
SPAIN | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 2,839,291 | 0 | 0 |
FRANCE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 96,210 | 152,548 | 730,962 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 24,943,755 | 10,008,838 | 59,884,835 |
Hungary | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 20,985,630 | $ 20,473,445 | $ 17,705,984 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event $ in Millions | 1 Months Ended |
Mar. 31, 2022 USD ($) | |
Subsequent Event | |
Amount purchased | $ 10 |
Maturity date | Mar. 31, 2024 |
Borrowings term (in years) | 2 years |
Interest rate (as a percent) | 2.33% |