Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Entity Registrant Name | TANTECH HOLDINGS LTD |
Document Annual Report | true |
Document Transition Report | false |
Trading Symbol | TANH |
Entity Common Stock, Shares Outstanding | 28,853,242 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Document Shell Company Report | false |
Entity Central Index Key | 0001588084 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Current Assets | ||
Cash and cash equivalents (Note 3 at VIE) | $ 12,440,457 | $ 7,748,416 |
Restricted cash (Note 3 at VIE) | 205,520 | 2,121,377 |
Accounts receivable, net (Note 3 at VIE) | 39,352,408 | 32,495,361 |
Inventories, net (Note 3 at VIE) | 595,627 | 1,957,058 |
Advances to suppliers, net (Note 3 at VIE) | 13,079,889 | 14,387,228 |
Prepaid taxes (Note 3 at VIE) | 2,396,349 | 2,136,988 |
Prepaid expenses and other receivables, net (Note 3 at VIE) | 91,377 | 954,362 |
Current assets from discontinued operations | 0 | 8,513,154 |
Total Current Assets (Note 3 at VIE) | 68,161,627 | 70,313,944 |
Property, plant and equipment, net (Note 3 at VIE) | 2,700,034 | 3,240,620 |
Other Assets | ||
Manufacturing rebate receivable (Note 3 at VIE) | 7,746,116 | 9,795,512 |
Intangible assets, net (Note 3 at VIE) | 12,959,017 | 15,268,062 |
Long-term Investment | 23,883,983 | 18,156,000 |
Goodwill (Note 3 at VIE) | 0 | 8,861,361 |
Non-current assets from discontinued operations | 0 | 8,558,515 |
Total Other Assets (Note 3 at VIE) | 44,589,116 | 60,639,450 |
Total Assets (Note 3 at VIE) | 115,450,777 | 134,194,014 |
Current Liabilities | ||
Short-term bank loans | 6,861,208 | 7,683,014 |
Bank acceptance notes payable (Note 3 at VIE) | 205,520 | 2,121,377 |
Accounts payable (Note 3 at VIE) | 1,650,851 | 2,524,462 |
Due to related parties (Note 3 at VIE) | 1,626,120 | 2,102,175 |
Customer deposits (Note 3 at VIE) | 6,955,142 | 865,615 |
Taxes payable (Note 3 at VIE) | 102,704 | 344,563 |
Due to third parties | 287,200 | 3,253,253 |
Accrued liabilities and other payables (Note 3 at VIE) | 1,444,896 | 1,598,104 |
Current liabilities from discontinued operations | 0 | 1,662,252 |
Total Current Liabilities (Note 3 at VIE) | 19,133,641 | 22,154,815 |
Deferred tax liability (Note 3 at VIE) | 1,784,875 | 2,053,512 |
Total Liabilities (Note 3 at VIE) | 20,918,516 | 24,208,327 |
Stockholders' Equity | ||
Common stock, $0.001 par value, 50,000,000 shares authorized,28,853,242 shares issued and outstanding | 28,853 | 28,853 |
Additional paid-in capital | 39,310,178 | 39,310,178 |
Statutory reserves | 6,379,276 | 6,461,788 |
Retained earnings | 52,058,681 | 58,333,136 |
Accumulated other comprehensive loss | (7,590,943) | (2,066,364) |
Total Stockholders' Equity attributable to the Company | 90,186,045 | 102,067,591 |
Noncontrolling interest | 4,346,216 | 7,918,096 |
Total Stockholders' Equity | 94,532,261 | 109,985,687 |
Total Liabilities and Stockholders' Equity | $ 115,450,777 | $ 134,194,014 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 28,853,242 | 28,853,242 |
Common Stock, Shares Outstanding | 28,853,242 | 28,853,242 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Revenues | $ 49,230,570 | $ 29,561,399 | $ 42,297,612 |
Cost of revenues | 43,253,070 | 21,532,319 | 31,741,753 |
Gross Profit | 5,977,500 | 8,029,080 | 10,555,859 |
Operating expenses | |||
Selling expenses | 319,946 | 320,479 | 730,834 |
General and administrative expenses | 4,655,382 | 4,971,804 | 4,625,563 |
Impairment of goodwill and intangible asset | 9,584,000 | 0 | 0 |
Research and development expenses | 327,260 | 386,628 | 627,577 |
Total operating expenses | 14,886,588 | 5,678,911 | 5,983,974 |
Income (loss) from operations | (8,909,088) | 2,350,169 | 4,571,885 |
Other income (expenses) | |||
Interest income | 53,060 | 56,894 | 18,648 |
Interest expense | (443,262) | (626,343) | (551,044) |
Other income, net | 3,669 | 247,069 | 436,095 |
Total other expenses | (386,533) | (322,380) | (96,301) |
Income (loss) before provision for income taxes | (9,295,621) | 2,027,789 | 4,475,584 |
Provision for income taxes | 363,662 | 1,031,158 | 1,528,003 |
Net income (loss) from continuing operations | (9,659,283) | 996,631 | 2,947,581 |
Discontinued operation: | |||
Income from discontinued operations, net of tax | 270,479 | 83,367 | 65,550 |
Loss from disposal of discontinued operations | (569,891) | 0 | 0 |
Net income (loss) from discontinued operations | (299,412) | 83,367 | 65,550 |
Net income (loss) | (9,958,695) | 1,079,998 | 3,013,131 |
Less: net loss attributable to noncontrolling interest from continuing operations | (3,601,728) | (896,769) | (754,084) |
Net income (loss) attributable to common stockholders of Tantech Holdings Ltd | (6,356,967) | 1,976,767 | 3,767,215 |
Net income (loss) | (9,958,695) | 1,079,998 | 3,013,131 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (5,494,731) | (949,689) | 4,341,324 |
Comprehensive income (loss) | (15,453,426) | 130,309 | 7,354,455 |
Less: Comprehensive loss attributable to noncontrolling interest | (3,571,880) | (881,364) | (784,186) |
Comprehensive income (loss) attributable to common stockholders of Tantech Holdings Ltd. | $ (11,881,546) | $ 1,011,673 | $ 8,138,641 |
Earnings (loss) per share - Basic and Diluted , Continuing operations | $ (0.21) | $ 0.07 | $ 0.15 |
Earnings (loss) per share - Basic and Diluted , Discontinued operations | (0.01) | 0 | 0 |
Total | $ (0.22) | $ 0.07 | $ 0.15 |
Weighted Average Shares Outstanding - Basic and diluted, Continuing operations and discontinued operations | 28,853,242 | 28,745,571 | 25,971,912 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Statutory Reserves | Retained Earnings | Noncontrolling Interest | Total |
Balance at Dec. 31, 2016 | $ 24,312 | $ 26,603,511 | $ (5,472,696) | $ 6,461,788 | $ 52,589,154 | $ 0 | $ 80,206,069 |
Balance (In Shares) at Dec. 31, 2016 | 24,311,935 | ||||||
Issuance of common stock for service | 0 | ||||||
Issuance of common stock for acquisition | $ 2,500 | 6,497,500 | 0 | 0 | 0 | 0 | 6,500,000 |
Issuance of common stock for acquisition (in shares) | 2,500,000 | ||||||
Issuance of common stock for private placement | $ 1,891 | 5,966,317 | 0 | 0 | 0 | 0 | 5,968,208 |
Issuance of common stock for private placement (in shares) | 1,891,307 | ||||||
Foreign currency translation adjustment | $ 0 | 0 | 4,371,426 | 0 | 0 | (30,102) | 4,341,324 |
Net income (loss) | 0 | 0 | 0 | 0 | 3,767,215 | (754,084) | 3,013,131 |
Noncontrolling interest through acquisition | 0 | 0 | 0 | 0 | 0 | 9,583,646 | 9,583,646 |
Balance at Dec. 31, 2017 | $ 28,703 | 39,067,328 | (1,101,270) | 6,461,788 | 56,356,369 | 8,799,460 | 109,612,378 |
Balance (In Shares) at Dec. 31, 2017 | 28,703,242 | ||||||
Issuance of common stock for service | $ 150 | 242,850 | 0 | 0 | 0 | 0 | 243,000 |
Issuance of common stock for service (in shares) | 150,000 | ||||||
Foreign currency translation adjustment | $ 0 | 0 | (965,094) | 0 | 0 | 15,405 | (949,689) |
Net income (loss) | 0 | 0 | 0 | 0 | 1,976,767 | (896,769) | 1,079,998 |
Balance at Dec. 31, 2018 | $ 28,853 | 39,310,178 | (2,066,364) | 6,461,788 | 58,333,136 | 7,918,096 | 109,985,687 |
Balance (In Shares) at Dec. 31, 2018 | 28,853,242 | ||||||
Issuance of common stock for service | 0 | ||||||
Foreign currency translation adjustment | $ 0 | 0 | (5,524,579) | 0 | 0 | 29,848 | (5,494,731) |
Net income (loss) | 0 | 0 | 0 | (82,512) | (6,274,455) | (3,601,728) | (9,958,695) |
Balance at Dec. 31, 2019 | $ 28,853 | $ 39,310,178 | $ (7,590,943) | $ 6,379,276 | $ 52,058,681 | $ 4,346,216 | $ 94,532,261 |
Balance (In Shares) at Dec. 31, 2019 | 28,853,242 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income (loss) | $ (9,958,695) | $ 1,079,998 | $ 3,013,131 |
Net (income) loss from discontinued operations | 299,412 | (83,367) | (65,550) |
Net income (loss) from continuing operations | (9,659,283) | 996,631 | 2,947,581 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Allowance for doubtful accounts - accounts receivable | 1,297,752 | 910,811 | 2,632,813 |
Allowance for doubtful accounts - advance to suppliers | 164,220 | 777,848 | (45,507) |
Allowance for doubtful accounts - other receivables | 705,400 | 66,305 | (16,827) |
Allowance for doubtful accounts - due from related party | 0 | 364,288 | 0 |
Inventory reserve | 1,030,236 | 700,379 | 13,908 |
Impairment of goodwill and intangible asset | 9,584,000 | 0 | 0 |
Decrease in deferred tax liability | (165,500) | 0 | 0 |
Depreciation expense | 462,639 | 628,144 | 576,953 |
Amortization of intangible asset | 441,489 | 443,318 | 201,647 |
Amortization of prepaid consulting expense | 140,738 | 102,263 | 0 |
Gain from disposal of property, plant and equipment | (8,047) | (44,814) | (1,875,493) |
Changes in operating assets and liabilities: | |||
Accounts receivable - non-related party | (9,879,682) | 7,023,546 | (1,001,613) |
Accounts receivable - related party | 0 | 3,249,359 | 0 |
Advances to suppliers | 415,727 | (3,555,851) | 2,826,316 |
Advances to suppliers, non- current | 0 | 1,558,916 | 6,839,953 |
Inventory | 242,142 | (147,485) | 804,763 |
Prepaid expenses and other receivables | 9,127 | 767,849 | (829,716) |
Manufacturing rebate receivable | (644,959) | (2,942,190) | |
Accounts payable | (751,363) | (2,621,226) | (532,039) |
Accrued liabilities and other payables | (78,923) | 49,492 | (1,489,128) |
Customer deposits | 6,184,836 | (115,771) | (247,059) |
Collection of receivable from discontinued operations | 8,962,187 | 0 | 0 |
Taxes payable | (597,392) | 573,660 | (1,927,737) |
Net cash provided by continuing operations | 10,064,143 | 11,082,703 | 5,936,625 |
Net cash provided by (used in) discontinued operations | 4,632,769 | 3,582,177 | (3,785,614) |
Net cash provided by operating activities | 14,696,912 | 14,664,880 | 2,151,011 |
Cash flows from investing activities | |||
Acquisition of property, plant and equipment | (92,369) | (559,038) | (1,302,721) |
Proceeds from disposal of property, plant and equipment | 16,580 | 54,089 | 662,144 |
Additions to intangible assets | 0 | (2,585) | 0 |
Payment for business acquisition | 0 | 0 | (4,552,240) |
Payment for investment | (6,707,570) | (17,448,000) | 0 |
Cash acquired from business acquisition | 0 | 0 | 35,707 |
Changes in deposit for asset acquisition | 0 | 0 | 443,400 |
Proceeds from disposition of subsidiaries | 854,567 | 0 | 0 |
Net cash used in continuing operations | (5,928,792) | (17,955,534) | (4,713,710) |
Net cash provided by (used in) discontinued operations | (1,522) | (39,976) | 1,220,458 |
Net cash used in investing activities | (5,930,314) | (17,995,510) | (3,493,252) |
Cash flows from financing activities | |||
Proceeds from (repayment of) loans from third party | (2,823,890) | 2,455,806 | (187,706) |
Note receivable | 0 | 14,540 | (14,780) |
Bank acceptance notes payable, net of repayment | (1,823,003) | (4,560,185) | 4,911,990 |
Proceeds from bank loans | 6,918,544 | 10,291,412 | 10,093,262 |
Repayments of bank loans | (7,352,944) | (7,835,606) | (11,957,020) |
Repayment of loans from related parties | (378,833) | (1,175,971) | (477,565) |
Proceeds from issuance of common stocks | 0 | 0 | 5,968,208 |
Net cash provided by (used in) continuing operations | (5,460,126) | (810,004) | 8,336,389 |
Net cash provided by discontinued operations | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (5,460,126) | (810,004) | 8,336,389 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (530,288) | 390,992 | 424,298 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 2,776,184 | (3,749,642) | 7,418,446 |
Cash, restricted cash and cash equivalents, beginning of year | 9,869,793 | 13,619,435 | 6,200,989 |
Cash, restricted cash and cash equivalents, end of year | 12,645,977 | 9,869,793 | 13,619,435 |
Supplemental disclosure information: | |||
Income taxes paid | 1,105,876 | 1,044,480 | 1,156,976 |
Interest paid | 439,869 | 608,048 | 479,358 |
Supplemental non-cash activities: | |||
Common shares issued for service | 0 | 243,000 | 0 |
Common shares issued for acquisition of Shangchi Automobile | 0 | 0 | 6,500,000 |
Net book value of assets and liabilities of Shangchi Automobile acquired | $ 0 | $ 0 | $ 11,122,410 |
Organization and nature of busi
Organization and nature of business | 12 Months Ended |
Dec. 31, 2019 | |
Organization and nature of business | |
Organization and nature of business | Note 1 – Organization and nature of business Tantech Holdings Ltd. (“Tantech” or “Tantech BVI”) is a holding company established under the laws of the British Virgin Islands on November 19, 2010. Through its 100% owned operating subsidiaries and entities controlled through VIE agreements, Tantech engages in the research and development, production and distribution of various products made from bamboo, manufacture and sell electric vehicles, as well as mining exploration. Below is a chart representing the corporate structure as of December 31, 2019: On August 19, 2015, the Board of Directors of Tantech authorized USCNHK Group Limited ("USCNHK"), a 100% owned subsidiary in Hong Kong, to form a wholly-owned subsidiary, Lishui Tantech Energy Tech Co., Ltd. ("LishuiTantech"), as a holding company to hold its 95% equity interest in Tantech Bamboo. On April 7, 2016, LishuiTantech was registered in Lishui, China under the PRC law. On June 24, 2016, Tantech BVI, through LishuiTantech, entered into an equity purchase agreement with the five individual holders of the remaining 5% interest of Tantech Bamboo, to acquire the 5% interest of Tantech Bamboo for 1,018,935 shares of the Company's common stock. The transfer of the 5% equity interest was completed on December 28, 2016. In July 2017, LishuiTantech changed its name to Tantech Holdings (Lishui) Co., Ltd. ("Lishui Tantech"). Zhejiang Tantech Bamboo Technology Co., Ltd. ("Tantech Bamboo" or "Bamboo") was established on October 23, 2002 and is engaged in manufacturing and sale of various products made from bamboo. Zhejiang Tantech Bamboo Charcoal Co., Ltd. (“Tantech Charcoal” or “Charcoal”) was established on September 5, 2002, and is engaged in the trading business, including the export of charcoal products. Hangzhou Tanbo Tech Co., Ltd. ("Tanbo Tech" or "Tanbo"), established by Tantech Bamboo on December 8, 2015, is exploring business opportunities outside Lishui area. Zhejiang Babiku Charcoal Co., Ltd. (“Tantech Babiku” or “Babiku”), established by Tantech Bamboo on October 20, 2015, and is engaged in the production and sales of low emission BBQ charcoal. Lishui Zhongzhu Charcoal Co., Ltd. (“Lishui Zhongzhu” or “Zhongzhu”), established by Tantech Bamboo on November 18, 2015. It changed its name to Zhejiang Zhongzhu Tourism Development Co., Ltd. on May 17, 2017. Zhejiang Tantech Energy Tech Co., Ltd. (“Tantech Energy” or “Energy”), was established on September 24, 2008. Tantech Energy engaged in the manufacturing of Electric Double-Layer Capacitor (“EDLC”) carbon. Energy was sold in July 2019. (See Note 5) Hangzhou Tanbo Tech Co., Ltd. (“Tanbo Tech” or “Tanbo”), established by Tantech Bamboo on December 8, 2015, is exploring business opportunities outside Lishui area. Due to business strategy change, the Company closed Lishui Zhongzhu and Tantech Babiku during the year ended December 31, 2018. As a result, together with Tantech Energy, the assets and liabilities for these discontinued entities were reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all these discontinued operations, less applicable income taxes (benefit), were reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. (See Note 5) Lishui Xincai Industrial Co., Ltd. ("Lishui Xincai") was established on December 14, 2017 by an unrelated third party. On January 8, 2018, the third party transferred all of its shares in Lishui Xincai to Lishui Tantech. Since then, Lishui Xincai has been Lishui Tantech's wholly owned subsidiary. On December 30, 2019, Tantech Bamboo transferred all of its shares in its wholly-owned subsidiary Tantech Charcoal to Lishui Xincai. On July 12, 2017, the Company acquired 70% of the equity interest of Shangchi Automobile Co., Ltd. (“Shangchi Automobile”), formerly known as Suzhou E-Motors Co., Ltd, (“Suzhou E-Motors”) from its original shareholder. Shangchi Automobile is a specialty electric vehicles and power batteries manufacturer based in Zhang Jia Gang City, Jiangsu Province, China. The 70% equity interest include 19% equity interest owned directly through Hangzhou Jiyi Investment Management Co., Ltd (“Jiyi”) and 51% equity interest owned through Hangzhou Wangbo Investment Management Co., Ltd (“Wangbo”). Jiyi is 100% owned through Shanghai Jiamu Investment Management Co., Ltd (“Jiamu”), who is, in turn, wholly owned by Euroasia International Capital (“Euroasia”), a 100% owned subsidiary of the Company. Wangbo is an entity which is controlled through a series of contractual agreements (Note 3). On November 13, 2018, the Company established Shenzhen E-Motors New Energy Sales Co., Ltd. (“Shenzhen E-Motors”), a sales subsidiary through Shangchi Automobile. As a result, the Company ultimately controls 70% equity interest of Shangchi Automobile and its subsidiary Shenzhen E-Motors and accounts of Shangchi Automobile and Shenzhen E-Motors are consolidated into those of the Company. Euroasia is incorporated in Hong Kong, PRC. Jiamu is incorporated in Shanghai, PRC. Both Jiyi and Wangbo are incorporated in Hangzhou, PRC. Euroasia also has a fully owned subsidiary Euroasia New Energy Automotive (Jiangsu) Co., Ltd (“Euroasia New Energy”). They are all investment holding companies with no significant business activities. (Collective “E-Motor Holdings”). |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | Note 2 – Summary of significant accounting policies Principal of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of Tantech BVI and its subsidiaries, and entities controlled through a series of agreements known as variable interest agreements (“VIE”) (collectively, the “Company”). All significant inter-company balances and transactions are eliminated upon consolidation. Non-controlling interest Non-controlling interest represents 30% of the equity interest in Shangchi Automobile and its subsidiary Shenzhen E-Motors owned by Zhangjiagang Jinke Chuangtou Co., Ltd., which is not under the Company’s control. Business Combinations Business combinations are accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. Discontinued operation In accordance with ASU No. 2014‑08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205‑20‑45‑1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205‑20‑45. Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting year. Significant items subject to such estimates and assumptions include the fair value estimates used in the purchase price allocation, the useful lives of property and equipment and intangible assets, allowances pertaining to the allowance for doubtful accounts and advance to suppliers, the valuation of inventories, the impairment of long-lived assets, and the realizability of deferred tax assets. Fair Value of Financial Instruments The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements”, defines fair value, establishes a three-level valuation hierarchy for fair value measurements and enhances disclosure requirements. The three levels are defined as follows: Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, other receivables, accounts payable, customer deposits, accrued expenses, short term bank loans and bank acceptance notes payable approximates their recorded values due to their short-term maturities. Cash and cash equivalents For purposes of the statements of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less and money market accounts to be cash equivalents. All cash balances are in bank accounts in PRC and are not insured by the Federal Deposit Insurance Corporation or other programs. Restricted Cash Restricted cash represents required cash deposits as a part of collateral for bank acceptance notes payable and letters of credit. The Company is required to maintain 0% to 100% of the balance of the bank acceptance notes payable in restricted cash to ensure future credit availability. The Company earns interest at a variable rate per month on this restricted cash. In November 2016, the FASB issued Accounting Standards Update No. 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. The Company adopted the new standard effective January 1, 2018, using the retrospective transition method. Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, trade accounts receivable and advances to suppliers. All of the Company’s cash is maintained with banks within the People’s Republic of China of which no deposits are covered by insurance. The Company has not experienced any losses in such accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company also makes cash advances to certain suppliers to ensure the stable supply of key raw materials. The Company performs ongoing credit evaluations of its customers and key suppliers to help further reduce credit risk. Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. Inventory The Company values its inventories at the lower of cost, determined on a weighted average basis, or net realizable value. The Company reviews its inventories periodically to determine if any reserves are necessary for potential obsolescence or if a write-down is necessary if the carrying value exceeds net realizable value. Advances to Suppliers In order to ensure a steady supply of raw materials, the Company is required from time to time to make cash advances when placing its purchase orders. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to refund an advance or provide supplies to the Company. Property and Equipment and Construction in Progress Property and equipment are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows: Buildings 20 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years Repairs and maintenance costs are normally charged to earnings in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Construction in progress includes direct costs of construction or acquisition of equipment, interest expense associated with the loans used for the construction and design fees incurred. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until it is completed and ready for its intended use. Intangibles assets, net Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at their fair value. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses and permits Indefinite Software 5 - 10 years Land use right 50 years Patents 10 years The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. The Company evaluates licenses and permits for impairment at least annually or whenever indicators of impairment are present. For the year ended December 31, 2019, the Company recorded an impairment of $1,103,332 for the licenses and permits acquired from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors) in fiscal 2017. There was no intangible assets impairment as of and for the years ended December 31, 2018 and 2017. Goodwill Goodwill represents the excess of the consideration over the fair value of the net assets acquired at the date of acquisition. Goodwill is not amortized but rather tested for impairment at least annually at the reporting unit level by applying a fair-value based test in accordance with accounting and disclosure requirements for goodwill and other indefinite-lived intangible assets. This test is performed by management annually or more frequently if the Group believes impairment indicators are present. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Intangibles - Goodwill and Other. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss in general and administrative expenses. For the year ended December 31, 2019, the Company wrote off the goodwill acquired from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors) in fiscal 2017 of $8,480,668. Long term investments The Company accounts for investment in equity investees over which it has significant influence but does not own a majority of the equity interest or lack of control using the equity method. For investment in equity investees over which the Company does not have significant influence or the underlying shares the Company invested in are not considered in-substance common stock and have no readily determinable fair value, the cost method accounting is applied. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company records the cost method investments at historical cost and subsequently record any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Investment in equity investees are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Customer Deposits Customer deposits represent amounts received from customers in advance of shipments relating to the sales of the Company’s products. Due to Third Parties Due to third parties represent amounts the Company borrowed from third parties for working capital purpose. The due to third parties balance are unsecured, interest-free and due upon demand. As of December 31, 2019 and 2018, the due to third parties balance amounted to $287,200 and $3,253,253, respectively. Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases. The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. The new standard establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The Company adopted this standard on January 1, 2019 on a modified retrospective basis and elected the practical expedients permitted under the transition guidance, which allows the Company to carryforward the historical lease classification, the assessment on whether a contract is or contains a lease, and the initial direct costs for any leases that exist prior to adoption of the new standard. Leases with an initial term of 12 months or less are not recognized on the balance sheet and the associated lease payments are included in the consolidated statements of comprehensive income (loss) on a straight-line basis over the lease term. The new standard has no material effect on the consolidated financial statements as the Company does not have a lease with a term longer than 12 months. Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective approach. Revenues for the years ended December 31, 2019 and 2018 were presented under ASC 606, and revenues for the year ended December 31, 2017 was not adjusted and continue to be presented under ASC Topic 605, Revenue Recognition. There is no adjustment to the opening balance of retained earnings at January 1, 2018 since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Company’s revenues are primarily derived from the following sources: Sales of products: The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time the product is delivered to the customer and control is transferred (point of sale). Commission income: The Company acts as an agent without assuming the risks and rewards of ownership of the goods and reports the revenue on a net basis. Revenue is recognized based on the completion of the contracted service. Government manufacturing rebate income: The Company sells electric vehicles in China and is eligible for a government manufacturing rebate on each qualifying electric vehicle sold. The government manufacturing rebates are recognized as part of revenue when sales are finalized, amount of rebates can be reasonably estimated and collection is assured. The collectability of rebates can be assured as long as the sales are deemed qualifying based on the criteria set by the government. Revenue is reported net of all value added taxes. The Company does not routinely permit customers to return products and historically, customer returns have been immaterial. Cost of Revenues Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or market adjustments is also recorded in cost of revenues. Shipping and Handling Shipping and handling costs are expensed as incurred and included in selling expenses. Subsidy Income The Company periodically receives various government grants such as “High Technology Projects Subsidy” and “Scientific Research Grant”. There is no guarantee the Company will continue to receive such grants in the future. Foreign Currency Translation The Company’s financial information is presented in U.S. dollars. The functional currency of the Company’s subsidiaries in the PRC is the RMB, the currency of the PRC. Any subsidiary transactions, which are denominated in currencies other than RMB, are translated into RMB at the exchange rate quoted by the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of comprehensive income (loss) as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. The financial information is first prepared in RMB and then is translated into U.S. dollars at period-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’ equity. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2019 December 31, 2018 December 31, 2017 US$:RMB exchange rate Period End $ 0.1436 Period End $ 0.1513 Period End $ 0.1537 Average $ 0.1448 Average $ 0.1454 Average $ 0.1478 Comprehensive Income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustment from those subsidiaries not using the U.S. dollar as their functional currency. Income Taxes The Company’s subsidiaries in China are subject to the income tax laws of the PRC. No taxable income was generated outside the PRC for the years ended December 31, 2019, 2018 and 2017. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain. ASC 740‑10‑25 prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There were no material uncertain tax positions as of December 31, 2019 and 2018. All tax returns since the Company’s inception are subject to examination by tax authorities. Value Added Tax (“VAT”) The Company is subject to VAT for selling merchandise. The applicable VAT rate is 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. The applicable VAT rate of 17% and 11% decreased to 16% and 10% starting from May 2018, and further decreased to 13% and 9% from April 1, 2019. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of taxes which is determined to be late or deficient, with any penalty being expensed in the period when a determination is made by the tax authorities that a penalty is due. During the reporting periods, the Company had no dispute with PRC tax authorities and there was no tax penalty incurred. Earnings (loss) per Share (“EPS”) The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”), and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2019, 2018 and 2017, there were 1,078,045 warrants not included in the diluted loss per share as they would be anti-dilutive. Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Reclassification Due to business strategy change, during the year ended December 31, 2018, the Company closed Lishui Zhongzhu and Tantech Babiku, and during the year ended December 31, 2019, the Company sold Tantech Energy. In connection with the discontinued operations of the business, certain prior period amounts have been reclassified to conform to the current period presentation. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions are denominated in RMB, and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. The Company does not carry any business interruption insurance, products liability insurance or any other insurance policy except for a limited property insurance policy. As a result, the Company may incur uninsured losses, increasing the possibility that investors would lose their entire investment in the Company. Recent accounting pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016‑13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016‑13”) which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016‑13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016‑13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the adoption of ASU 2016‑13 on its consolidated financial statements. In February 2018, the FASB issued ASU 2018‑02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act). The Company does not believe this guidance has a material impact on its consolidated financial statements. In March 2018, the FASB issued ASU 2018‑05 — Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018‑05”), which amends the FASB Accounting Standards Codification and XBRL Taxonomy based on the Tax Cuts and Jobs Act (the “Act”) that was signed into law on December 22, 2017 and Staff Accounting Bulletin No. 118 (“SAB 118”) that was released by the Securities and Exchange Commission. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international tax consequences for many companies that operate internationally. The Company does not believe this guidance has a material impact on its consolidated financial statements. On June 20, 2018, the FASB issued ASU No. 2018‑07, Compensation—Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU No. 2018‑07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The new standard is effective for us on January 1, 2019. Early adoption is permitted, including in interim periods, and should be applied to all new awards granted after the date of adoption. The Company does not believe this guidance has a material impact on its consolidated financial statements. In August 2018, the FASB Accounting Standards Board issued ASU No. 2018‑13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018‑13”). ASU 2018‑13 modifies the disclosure requirements on fair value measurements. ASU 2018‑13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect this guidance will have a material impact on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) ("ASU 2020-01"), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The Company is currently evaluating the effect of adopting this ASU on the Group's financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entity | |
Variable Interest Entity | Note 3 – Variable Interest Entity The VIE contractual arrangements Wangbo, Shangchi Automobile and its subsidiary, Shenzhen E-Motors, are controlled through contractual arrangements in lieu of direct equity ownership by the Company. These agreements include an Exclusive Management Consulting and Technology Agreement, two Equity Pledge Agreements, two Exclusive Call Option Agreements, two Proxy Agreements and two Powers of Attorney (collectively "VIE Agreements"). Pursuant to the above VIE Agreements, Jiamu has the exclusive right to provide Wangbo consulting services related to business operations including technical and management consulting services. All the above contractual agreements obligate Jiamu to absorb a majority of the risk of loss from Wangbo's activities and entitle Jiamu to receive a majority of their residual returns. In essence, Jiamu has gained effective control over Wangbo. In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Therefore, the Company believes that Wangbo should be considered as a Variable Interest Entity ("VIE") under the Statement of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810 "Consolidation". Jiamu is deemed to have a controlling financial interest in and be the primary beneficiary of Wangbo because it has both of the following characteristics: · The power to direct activities at Wangbo that most significantly impact such entity's economic performance, and · The obligation to absorb losses of, and the right to receive benefits from Wangbo that could potentially be significant to such entity. Pursuant to the contractual arrangements with Wangbo, Wangbo pay service fees equal to 95% of their net profit after tax payments to Jiamu. At the same time, Jiamu is obligated to absorb a majority of Wangbo's losses. Such contractual arrangements are designed so that the operation of Wangbo is for the benefit of Jiamu and ultimately, the Company. Risks associated with the VIE structure The Company believes that the contractual arrangements with its VIE and the VIE's shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company's ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: · revoke the business and operating licenses of the Company's PRC subsidiary and VIE; · discontinue or restrict the operations of any related-party transactions between the Company's PRC subsidiary and VIE; · limit the Company's business expansion in China by way of entering into contractual arrangements; · impose fines or other requirements with which the Company's PRC subsidiary and VIE may not be able to comply; · require the Company or the Company's PRC subsidiary and VIE to restructure the relevant ownership structure or operations; or · restrict or prohibit the Company's use of the proceeds from public offering to finance the Company's business and operations in China. The Company's ability to conduct its business through its VIE may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE and its VIE's subsidiary in its consolidated financial statements as it may lose the ability to exert effective control over the VIE and its shareholders and it may lose the ability to receive economic benefits from the VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and its VIE. The following assets and liabilities of the consolidated VIE were included in the accompanying consolidated financial statements of the Company as of December 31, 2019 and 2018 after elimination of intercompany balances: December 31, 2019 December 31, 2018 Current assets Cash and cash equivalents $ 70,420 $ 33,638 Restricted cash 205,520 2,121,377 Accounts receivable, net 795,240 2,033,535 Prepaid taxes 894,051 936,579 Inventories, net 239,222 1,205,280 Advances to suppliers, net 93,241 14,655 Prepaid expenses and other receivables, net 73,378 70,074 Total Current Assets 2,371,072 6,415,138 Non-current assets Property, plant and equipment, net 1,139,398 1,388,749 Manufacturing rebate receivable 7,746,116 9,795,512 Intangible assets, net 12,764,272 15,056,810 Goodwill — 8,861,361 Total Assets $ 24,020,858 $ 41,517,570 Current liabilities Bank acceptance notes payable $ 205,520 $ 2,121,377 Accounts payable 1,165,718 1,878,713 Customer deposits 113,657 35,749 Taxes payable — 13,703 Due to related parties 943,584 1,233,155 Accrued liabilities and other payables 442,280 614,150 Total Current Liabilities 2,870,759 5,896,847 Non-current liabilities Deferred tax liability 1,784,875 2,053,512 Total Liabilities $ 4,655,634 $ 7,950,359 |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2019 | |
Liquidity | |
Liquidity | Note 4 – Liquidity For the year ended December 31, 2019, the Company had a significant decrease in net income. In addition, the Company closed Babiku and Zhongzhu, and sold Tantech Energy’s remaining operation due to business strategic changes during the years ended December 31, 2019 and 2018. All of these events had significant impact on the Company’s operations. For its consumer product sector, the Company significantly cut its sales to supermarket customers because of long-aged accounts receivable from these supermarket customers as online shopping has become increasingly popular. The Company has been experiencing longer collection periods. That leads to higher balances of accounts receivable as compared to prior years. Meanwhile, the EV sector is also experiencing delays of government rebate processing time and reduction of the amount of government rebates on eligible vehicles. Due to a successful equity financing which resulted in net proceeds of $5.6 million in September 2017, the Company still had approximately $12.4 million cash on hand as of December 31, 2019. Although the Company maintains a positive working capital as of December 31, 2019 and generated positive cash flows from its continued operations during the year ended December 31, 2019, the future operations of the Company depend on whether or not the Company can successfully collect its accounts receivable and utilize its advances, as well as how the change of government policies affect its new EV business. Without additional equity financing, the Company may heavily rely on bank borrowings or shareholder/related party loans to fund its working capital needs. As of December 31, 2019 and 2018, the Company had a short-term loan balance of approximately $6.9 million and $7.7 million, respectively. In addition, the Company had bank acceptance notes payable balance of approximately $0.2 million and $2.1 million as of December 31, 2019 and 2018, respectively. Any failure to renew these bank borrowings upon their maturities could have an adverse impact on the Company’s operations. The Company currently plans to fund its operations mainly through cash flow from its operations, renewal of bank borrowings, additional equity financing and the continuing financial support by its shareholders and its affiliates controlled by its principal shareholder, if necessary, in the near future to ensure sufficient working capital. The Company has implemented a stricter policy on sales to supermarkets and less credible customers and continues to improve its collection efforts on accounts with outstanding balances. The Company is actively working with other customers and suppliers and expects to fully collect or utilize the rest of prepayment balance in 2020. The Company is also working closely with the local government to speed up the collection process of the outstanding government rebate balance in 2020. With disposal of its EDLC business and placing focus on manufacturing of more marketable consumer products, the Company is shifting its strategy to cut back costs and ensure profitability. Although the Company is currently not generating net income from its EV sector, it has been focusing on reducing the costs and expenses and developing other non-rebate alternative energy products. The Company plans to fund this sector through additional private placement and continued support from the parent company even without timely receipt of government rebate. The principal shareholder of the Company, along with the affiliated entity, Forasen Group, has made pledges to provide financial support to the Company whenever necessary. Based on its current operating plan, management believes that the above-mentioned measures collectively will provide sufficient liquidity for the Company to meet its future liquidity and capital requirements for at least next twelve months from the date of this report. |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued operations | |
Discontinued operations | Note 5 – Discontinued operations On December 14, 2017, the Company entered into a sale agreement and related agreements (the “EDLC Agreements”) to transfer its Electric Double-Layer Capacitor (“EDLC”) carbon business (including intellectual property rights and equipment) to Zhejiang Apeikesi Energy Co., Ltd. (the “Buyer”), a PRC start-up company controlled by Dr. Zaihua Chen, the Registrant’s former Chief Technology Officer. Pursuant to the EDLC Agreements, total purchase price was approximately $2.5 million (RMB 16 million) (the “Purchase Price”). The purchase price is payable in ten years with initial payment of approximately $0.7 million (RMB 4.48 million) due in fiscal 2017. The remaining purchase price shall be paid in nine equal installments in the following nine years. The Buyer is required to pay annual interest on the remaining purchase price at the PRC prime borrowing rate. On June 26, 2019, the Company entered a share transfer agreement to sell all of its shares in Tantech Energy to an unrelated third party with a consideration of RMB 6,500,000 (approximately US$941,000). The Company completed the disposition process in July 2019. The Company recorded a loss of $569,891 on disposal of Tantech Energy which was included in the loss from disposal of discontinued operations on statements of comprehensive income (loss). During the year ended December 31, 2018, the Company closed the business operation of Lishui Zhongzhu and Tantech Babiku, due to business strategy change. In connection with the discontinued operations of the above businesses, the revenue and expenses for the year ended December 31, 2017 have been retrospectively reclassified as discontinued operations. The aggregated financial results of the discontinued business are set forth below. December 31, December 31, 2019 2018 Cash and cash equivalent $ — $ 32,919 Accounts receivable — 5,257,684 Inventory — 475,827 Advances to suppliers — 2,647,415 Prepaid value-added taxes — 72,742 Other receivables — 26,567 Total current assets from discontinued operations — 8,513,154 Accounts receivable from EDLC business — 1,235,489 Property, plant and equipment, net — 6,012,285 Intangible assets, net — 1,310,741 Total non-current assets from discontinued operations — 8,558,515 Total assets from discontinued operations — 17,071,669 Accounts payable — 1,038,888 Customer deposits — 337,743 Taxes payable — 140,212 Accrued liabilities and other payables — 145,409 Total current liabilities from discontinued operations — 1,662,252 Total liabilities from discontinued operations $ — $ 1,662,252 For the period from January 1 Year ended Year ended to July 31, December 31, December 31, 2019 2018 2017 Revenue $ 3,803,430 $ 9,107,922 $ 4,189,190 Cost of revenues 4,048,640 9,116,707 2,097,436 Gross profit (loss) (245,210) (8,785) 2,091,754 Operating expenses 629,525 3,164,918 1,270,723 (Reversal of) Bad debt provision (1,144,417) (1,477,631) 2,916,445 Income (loss) from operations 269,682 (1,696,072) (2,095,414) Other income, net 797 1,779,439 2,168,132 Income before income taxes 270,479 83,367 72,718 Income taxes — — 7,168 Income from discontinued operations, net of tax $ 270,479 $ 83,367 $ 65,550 |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2019 | |
Accounts receivable | |
Accounts receivable | Note 6 – Accounts receivable Accounts receivable consisted of the following: December 31, December 31, 2019 2018 Accounts receivable – non-related parties $ 45,083,689 $ 37,177,953 Allowance for doubtful accounts (5,731,281) (4,682,592) Accounts receivable, net $ 39,352,408 $ 32,495,361 The movement of allowance for doubtful accounts are as follows for the years ended December 31, 2019 and 2018: Years ended December 31, 2019 2018 Balance at beginning of year $ 4,682,592 $ 3,794,065 Addition to allowance for doubtful accounts 1,286,997 947,770 Translation adjustments (238,308) (59,243) Balance at end of year $ 5,731,281 $ 4,682,592 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory | |
Inventory | Note 7 – Inventory Inventory consisted of the following: December 31, December 31, 2019 2018 Raw materials $ 515,658 $ 1,619,504 Finished products 79,269 261,283 Work in process 700 76,271 Total Inventory $ 595,627 $ 1,957,058 For the years ended December 31, 2019, 2018 and 2017, the Company recorded inventory write –offs in the amounts of $1,030,236, $700,379 and $13,908, respectively. |
Advances to suppliers
Advances to suppliers | 12 Months Ended |
Dec. 31, 2019 | |
Advances to suppliers | |
Advances to suppliers | Note 8 – Advances to suppliers December 31, December 31, 2019 2018 Advances to suppliers $ 14,596,906 $ 15,813,997 Allowance for doubtful accounts (1,517,017) (1,426,769) Advances to suppliers, net 13,079,889 14,387,228 Less: Advances to suppliers, non-current — — Advances to suppliers, current $ 13,079,889 $ 14,387,228 The movement of allowance for doubtful accounts are as follows for the years ended December 31, 2019 and 2018: Years ended December 31, 2019 2018 Balance at beginning of year $ 1,426,769 $ 627,151 Addition to allowance for doubtful accounts 162,859 809,411 Translation adjustments (72,611) (9,793) Balance at end of year $ 1,517,017 $ 1,426,769 Advances to suppliers – non-current December 31, December 31, 2019 2018 Zhibo Jieli Special Battery Material Co., Ltd * $ 430,800 $ 453,900 Allowance for doubtful accounts (430,800) (453,900) Advances to suppliers – non-current, net $ — $ — * representing the prepayments made to acquire machinery. |
Manufacturing rebate receivable
Manufacturing rebate receivable | 12 Months Ended |
Dec. 31, 2019 | |
Manufacturing rebate receivable | |
Manufacturing rebate receivable | Note 9 – Manufacturing rebate receivable On September 13, 2013, the Chinese Ministry of Finance, the Chinese Ministry of Science and Technology, the Chinese Ministry of Industry and Information Technology, and the Chinese National Development and Reform Commission issued a joint announcement that in order to promote the development, sale and use of alternative energy vehicles, Chinese government will continue to provide a manufacturing rebate for qualifying alternative energy vehicles sold. The government rebate is paid to the Company on behalf of our customer for a portion of selling price, for which, our customer does not need to pay at the time of purchase. The government manufacturing rebates are typically provided to eligible alternative energy automobile manufacturers after sales are finalized and paperwork regarding the eligible mileages is submitted. Based on the criteria listed, Shangchi Automobile (formerly known as Suzhou E-Motors) was eligible for approximately $6,000 and $29,400 in government manufacturing rebates for each of the qualifying electric vehicles sold during the years ended December 31, 2018 and 2017, respectively. Shangchi Automobile didn't sell any electric vehicles during the year ended December 31, 2019. The Company sold nil, 109 and 100 qualified electric vehicles during the years ended December 31, 2019, 2018 and 2017, respectively and recognized $Nil, $644,959 and $2,942,190 manufacturing rebate income as part of revenue and corresponding receivable for the years ended December 31, 2019, 2018 and 2017, respectively, because the management believes that the electric vehicles sold met all the criteria set by the government and the collection of these manufacturing rebates is reasonably assured. As of December 31, 2019, the manufacturing rebate receivable was $7,746,116 (RMB 53,942,315), including $4,250,560 (RMB 29,600,000) of manufacturing rebate receivable related to qualified electric vehicles sold in fiscal 2016, $2,858,582 (RMB 19,906,560) of manufacturing rebate receivable related to qualified electric vehicles sold in fiscal 2017 and $636,974 (RMB 4,435,755) of manufacturing rebate receivable related to qualified electric vehicles sold in fiscal 2018. The Company has not received the full payment of those eligible government rebates for the sales made in the fiscal year 2016 due to the recent slower processing of rebates. The Company is also working closely with the local government to speed up the collection process of the outstanding government rebate balance in 2020. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment, net | |
Property, plant and equipment, net | Note 10 – Property, plant and equipment, net Property, plant and equipment stated at cost less accumulated depreciation consisted of the following: December 31, December 31, 2019 2018 Building $ 5,199,348 $ 5,473,555 Machinery and Production equipment 1,901,886 2,012,061 Electronic equipment 240,606 203,491 Office equipment 55,961 55,407 Automobiles 501,156 527,485 Construction in progress 117,014 121,255 Subtotal 8,015,971 8,393,254 Less: Accumulated depreciation (5,315,937) (5,152,634) Property, plant and equipment, net $ 2,700,034 $ 3,240,620 Depreciation expense was $703,113, $1,049,274 and $613,296 for the years ended December 31, 2019, 2018 and 2017, respectively, among which $462,639, $628,144, and $576,953 were for continuing operations. As of December 31, 2019, and 2018, building with net book value of $966,201 (all from continuing operations) and $7,139,561 (among which $1,149,156 from continuing operations and $5,990,405 from discontinued operations), respectively, were pledged as collateral for bank loans (Note 12). |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets, net | |
Intangible assets, net | Note 11 – Intangible assets, net December 31, December 31, 2019 2018 Software $ 24,314 $ 25,619 Electric vehicle registered license** 11,899,171 13,690,078 Land use rights* 287,800 303,232 Patents** 4,308,000 4,539,000 Subtotal 16,519,285 18,557,929 Less: Accumulated amortization (3,560,268) (3,289,867) Intangible assets, net $ 12,959,017 $ 15,268,062 *There is no private ownership of land in China. Land is usually owned by the local government and the government grants land use rights for specified terms. The Company acquired two land use rights from the local government in December 2002 and September 2008 for periods of 50 years. As of December 31, 2019, and 2018, land use rights with net book value of $194,745 (all from continuing operations) and $1,521,993 (among which $211,252 from continuing operations and $1,310,741 from discontinued operations), respectively, were pledged as collateral for bank loans (Note 12). The land use rights are amortized over 50 years and the software is amortized over 5 years. ** Electric vehicle registered license and patents on specialty electric vehicles resulted from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors). For the year ended December 31, 2019, the Company recorded an impairment of $1,103,332 for the registered license. Amortization expense for intangible assets totaled $459,898, $602,959 and $201,647 for the years ended December 31, 2019, 2018 and 2017, respectively, among which $441,489, $443,318 and $201,647 were for continuing operations. |
Short-term bank loans
Short-term bank loans | 12 Months Ended |
Dec. 31, 2019 | |
Loans Payable [Member] | |
Short-term Debt [Line Items] | |
Short-term bank loans | Note 12 – Short-term bank loans The Company’s short-term bank loans consist of the following: December 31, December 31, 2019 2018 Loan payable to Bank of China Lishui Branch $ 4,132,808 $ 4,808,314 Loan payable to SPD Bank Lishui Branch 2,728,400 2,874,700 Total $ 6,861,208 $ 7,683,014 On February 26, 2019, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $1,436,000 (RMB 10 million) for one year with annual interest rate of 4.35%. The purpose of the loan was for working capital needs. The loan was guaranteed by Tantech Bamboo, two individual related parties, Zhengyu Wang, Chairman of the Board and previous CEO of the Company and his wife, Yefang Zhang and a third party, Zhejiang Meifeng Tea Industry Co., Ltd. The loan was also collateralized by two properties owned by Zhengyu Wang and Yefang Zhang. The loan was fully repaid upon maturity in January 2020. On March 18, 2019, Tantech Bamboo entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $2,696,808 (RMB 18.78 million) for one year with annual interest rate of 6.05%. The purpose of the loan was to fund working capital needs. The loan was collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $3.7 million (RMB25,960,000). The loan was also guaranteed by three related parties, Zhengyu Wang, Chairman of the Board and previous CEO of the Company and his wife, Yefang Zhang and Lishui Jiuanju Trading Co., Ltd., the president of which was also the present CEO and previous COO of the Company. The loan was fully repaid upon maturity in January 2020. On November 4, 2019, Tantech Bamboo entered into a short-term loan agreement with Shanghai Pudong Development Bank (Lishui Branch) to borrow $2,728,400 (RMB 19 million) with fixed annual interest rate of 5.22% and mature date of April 30, 2020. The purpose of the loan was to fund working capital needs. The loan was guaranteed by three related parties, Zhengyu Wang, Chairman of the Board and previous CEO and his wife, Yefang Zhang and Forasen Group Co., Ltd., a company owned by Zhengyu Wang and Yefang Zhang. The loan was also collateralized by building and land use right of Tantech Energy with maximum guaranteed amount up to approximately $4.2 million (RMB29,250,000). The loan was fully repaid upon maturity in April 2020. As of December 31, 2019, total bank loans payable amounted to $6,861,208. On August 16, 2018 and August 20, 2018, Tantech Bamboo entered into two short-term loan agreements with Bank of China (Lishui Branch) to borrow $1,513,000 (RMB 10 million) and $1,328,414 (RMB 8.78 million) for seven months with a fixed annual interest rate of 6.01% and 6.06%, respectively. The purpose of the loans was to fund working capital needs. The loans were collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $3.9 million (RMB25,570,000) as of December 31, 2018. These two loans were also guaranteed by two individual related parties, Zhengyu Wang, Chairman of the Board and previous CEO of the Company and his wife, Yefang Zhang. In addition, loan principal of $1,513,000 (RMB 10 million) was further guaranteed by a related party, Lishui Jiuanju Trading Co., Ltd., the president of which was also the present CEO and previous COO of the Company. These two loans were fully repaid upon maturity in March 2019. On August 1, 2018, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $1,966,900 (RMB 13 million) for seven months with a fixed annual interest rate of 6.1%. The purpose of the loan was for working capital needs. The loan was guaranteed by Tantech Bamboo, two individual related parties, Zhengyu Wang and Yefang Zhang and a third party, Zhejiang Meifeng Tea Industry Co., Ltd. The loan was also collateralized by a property owned by Zhengyu Wang and Yefang Zhang. The loan was fully repaid upon maturity in February 2019. On November 23, 2018, Tantech Bamboo entered into a short-term loan agreement with Shanghai Pudong Development Bank (Lishui Branch) to borrow $2,874,700 (RMB 19 million) for a year with fixed annual interest rate of 6.96%. The purpose of the loan was to fund working capital needs. The loan was collateralized by building and land use right of Tantech Energy with maximum guaranteed amount up to approximately $4.4 million (RMB29,250,000) as of December 31, 2018. The loan was also guaranteed by three related parties, Zhengyu Wang and his wife, Yefang Zhang and Forasen Group Co., Ltd., a company owned by Zhengyu Wang and Yefang Zhang. This loan was fully repaid upon maturity in November 2019. As of December 31, 2018, total bank loans payable amounted to $ 7,683,014 . For the years ended December 31, 2019, 2018 and 2017, the interest expense related to bank loans was $421,646, $378,857 and $479,358, respectively. |
Bank acceptance notes payable
Bank acceptance notes payable | 12 Months Ended |
Dec. 31, 2019 | |
Notes Payable to Banks [Member] | |
Bank acceptance notes payable | Note 13 – Bank acceptance notes payable Bank acceptance notes payable do not carry a stated interest rate but have a specific due date usually for a period of one year. These notes are negotiable documents issued by financial institutions on the Company’s behalf to vendors. These notes can either be endorsed by the vendor to other third parties as payment or can be factored to other financial institutions before becoming due. These notes are short-term in nature. As collateral security for financial institutions’ undertakings, the Company is required to maintain deposits with such financial institutions in restricted cash amounts of 0% to 100% of the balances of the bank acceptance notes. As of December 31, 2019, and 2018, deposits of $205,520 and $2,121,377 were reported as restricted cash on balance sheet. Bank acceptance notes payable consisted of the following: December 31, December 31, 2019 2018 Bank acceptance notes payable issued by Bank of Zhang Jiagang Leyu Branch (a) $ — $ 2,121,377 Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch (b) 205,520 — Total $ 205,520 $ 2,121,377 (a) Bank acceptance notes payable of $2,121,377 (RMB14,021,000) issued by Bank of Zhang Jiagang Leyu Branch with due dates from February 7, 2019 to June 28, 2019. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. (b) Bank acceptance notes payable of $205,520 (RMB1,431,200) issued by Shanghai Pudong Development Bank Zhang Jiagang Branch with due date on January 12, 2020. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Balances and Transactions | |
Related Party Balances and Transactions | Note 14 – Related Party Balances and Transactions The balances due to related parties were as follows: December 31, December 31, 2019 2018 Dr. Henglong Chen and its affiliates * $ 932,616 $ 1,227,773 Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company until December 6, 2019 693,504 874,402 Total $ 1,626,120 $ 2,102,175 * Dr. Henglong Chen is the original shareholder of Shangchi Automobile (formerly known as Suzhou E-Motors). The Company acquired his 70% equity interest in Shangchi Automobile and issued 2,500,000 restricted shares of Tantech’s common stock to him in connection with the acquisition of Shangchi Automobile. As of December 31, 2019 and 2018, Dr. Henglong Chen and its affiliates advanced $932,616 and $1,227,773 to the Company for its working capital purpose, respectively. As of December 31, 2019 and 2018, the Company also borrowed $693,504 and $874,402 from Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company, for working capital purpose. For the year ended December 31, 2017, the Company borrowed $1,537,000 from Mr. Yulong Chen, a shareholder of the Company for working capital purpose. The balance was fully repaid during the year ended December 31, 2018. All balances of due to the related parties were unsecured, interest-free and due upon demand. The Company’s major shareholder Mr. Zhengyu Wang and his wife Ms. Yefang Zhang, as well as related party entities controlled by Mr. Wang, provided guarantees to the Company’s bank loans (Note 12). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies Guaranty provided for related party In July 2017, Tantech Energy provided a guarantee with a bank on behalf of Forasen Group for maximum amount of approximately $8 million (RMB 57,070,000) by pledging certain land and building as the collateral for the loan and notes. The guarantee will expire on July 23, 2020. In March 2019, Tantech Bamboo provided a guarantee with a bank for Zhejiang Forasen Food Co., Ltd. (“Forasen Food”) for maximum amount of approximately $1.4 million (RMB 10 million) by pledging certain land and building as the collateral for the loan and notes. The guarantee will expire on March 4, 2022. Forasen Food is controlled by Ms Yefang Zhang who is the Company’s director. Operating lease Shangchi Automobile leased certain factory facilities under operating leases through May 9, 2019. The annual rent under operating lease agreement was approximately $144,000 (RMB 1 million). This agreement was renewed for the period from May 10, 2019 to August 31, 2019 with daily rent of approximately $400 (RMB2,740). On August 10, 2019, Shangchi Automobile signed a new operating lease agreement with the landlord for one year until August 9, 2020 with annual rent of approximately $144,000 (RMB 1 million). Shenzhen E-Motors leased office space under operating leases for one year from November 12, 2018 to November 11, 2019 with annual rent of approximately $13,500 (RMB93,600). The lease agreement was renewed for another year until November 11, 2020. Tantech Bamboo leased factory facilities and office space from Tantech Energy after Tantech Energy was sold in July 2019 under operating leases until December 31, 2019 with rent free for the whole period in 2019. This agreement was renewed for another year from January 1, 2020 to December 31, 2020 with annual rent of approximately $178,000 (RMB1,238,784). The rental expense for the years ended December 31, 2019, 2018 and 2017 were $167,526, $139,507 and $73,184, respectively. Contingency In May 2018, our wholly owned subsidiary Tantech Bamboo signed an agreement with other co-guarantors to jointly and severally guarantee the share repurchase obligation of Forasen Group, in favor of an unrelated third party. Such third party filed a complaint to claim a payment of approximately $4.2 million (RMB 29.50 million) against Forasen Group, together with the guarantors on January 9, 2019. On August 30, 2019, the court issued a settlement by which another third party agreed to purchase the shares from the plaintiff by paying approximately $13 million (RMB 90 million), and all the co-guarantors including Tantech Bamboo jointly and severally guarantee the payment obligation regarding the $13 million ( RMB 90 million) and other possible fees, for three years from June 30, 2020, the due date of the share purchase payment obligation. The other third party has paid approximately $4.6 million (RMB 32.06 million) and approximately $8.4 million (RMB 57.94 million) remains unpaid. Accordingly, in June 2020, Lishui Jiuanju Commercial Trade Co., Ltd. (“LJC”), another related party, issued to Tantech Bamboo an anti-guaranty guaranty to guarantee Tantech Bamboo’s potential payment obligation, and a bank statement of approximately $10.1 million (RMB 70 million). Therefore, the Company’s PRC counsel believes Tantech Bamboo’s legal risk has been relieved to some extent. The company believes that it is more likely than not that LJC will perform its guaranty obligation and Tantech Bamboo will not need to make the payment . |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' equity | |
Stockholders' equity | Note 16 – Stockholders’ equity On July 12, 2017, in connection of the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors), the Company issued 2,500,000 shares of its common stock to the original shareholder of Shangchi Automobile. These shares are restricted for minimum twelve months after the completion of the acquisition. The fair value of these shares was $6,500,000 based on the share price of $2.6 on July 12, 2017. On September 27, 2017, the Company and certain institutional investors entered into a securities purchase agreement in connection with the September 2017 Offering, pursuant to which the Company agreed to sell an aggregate of 1,891,307 common shares and warrants to initially purchase an aggregate of 1,078,045 common shares, consisting of 945,654 investor warrants and 132,391 placement agent warrants. The common share purchase price was $3.45 per common share. On September 29, 2017, the Company completed the September 2017 Offering. After deducting offering expenses, the Company received $5,968,208 in net proceeds from the sale of the common shares. On September 19, 2018, the Company issued 150,000 shares of common stock to three individuals for consulting services to be provided for the period from September 19, 2018 to May 18, 2019, which were valued at $243,000 based on the quoted market price at issuance. The entire cost of $243,000 was amortized over the 8‑month service period using straight line method. Warrants registered in September 2017 Offering In connection with the September 2017 offering, the Company registered and issued warrants to purchase an aggregate of 1,078,045 common shares, consisting of 945,654 investor warrants (the “Investor Warrants”) and 132,391 placement agent warrants (the “Placement Agent Warrants”). All warrants carry a term of 5 years. The Investor Warrants are exercisable at $4.25 per share and the Placement Agent Warrants are exercisable at $4.675 per share. The Investor Warrants can be exercisable immediately as of the date of issuance. The Placement Agent Warrants are not exercisable for a period of 180 days after the effective date of the offering. A holder of the warrants also will have the right to exercise its warrants on a cashless basis if the registration statement or prospectus contained therein is not available for the issuance of the common shares issuable upon exercise thereof. The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Company’s common shares. Management determined that these warrants are equity instruments because the warrants are indexed to its own stock. The warrants were recorded at their fair value on the date of grant as a component of stockholders’ equity. As of December 31, 2019, the total number of warrants outstanding was 1,078,045 with remaining life of 3 years. No warrants were exercised since the issuance date. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interests | |
Noncontrolling Interests | Note 17 – Noncontrolling Interests A reconciliation of non-controlling interest as of December 31, 2019 and 2018 is as follows: December 31, December 31, 2019 2018 Beginning Balance $ 7,918,096 $ 8,799,460 Proportionate shares of net loss (3,601,728) (896,769) Foreign currency translation adjustment 29,848 15,405 Total $ 4,346,216 $ 7,918,096 As of December 31, 2019 and 2018, the noncontrolling interests balances represented the noncontrolling shareholder’s 30% equity interests in Shangchi Automobile (formerly known as Suzhou E-Motors) and its subsidiary Shenzhen |
Long term investments
Long term investments | 12 Months Ended |
Dec. 31, 2019 | |
Long term investments | |
Long term investments | Note 18 – Long term investments On January 10, 2018, the Company invested approximately $18.2 million (or RMB 120 million) to acquire 18% equity interest in Libo Haokun Stone Co., Ltd. (“Libo Haokun”). Libo Haokun holds a government-issued permit and has the exclusive right to mine a 0.11‑square-kilometer marble quarry in the southwestern province of Guizhou province, China. Libo Haokun obtained the permit to mine the quarry from the local government in September 2016. On November 29, 2019, the Company entered into an investment agreement (the "Investment Agreement") with Jingning Zhonggang Mining Co., Ltd. ("Jingning Zhonggang") through Lishui Tantech to acquire 18% of the equity interest of Fuquan Chengwang Mining Co., Ltd. ("Fuquan Chengwang"), a wholly-owned subsidiary of Jingning Zhonggang, at a price of RMB 46.323 million (approxiamately $6.65 million). The consideration equals 18% of RMB 257.354 million, the value of the mining right under a permit being renewed by Fuquan Chengwang according to an evaluation report. Fuquan Chengwang is a basalt mining company. It is renewing a government-issued mining permit which expired on May 20, 2019. The mining permit would provide it the right to mine a 0.2607-square-kilometer basalt quarry in Fuquan City, Guizhou Province, China. Pursuant to the Investment Agreement, Tantech is obligated to pay the consideration within 30 days after Fuquan Chengwang completes the recording process with the local industrial and commerce administration for transfer of the share ownership. Pursuant to the Investment Agreement, after the transfer of the 18% share ownership, if the value of Fuquan Chengwang is lower than RMB 257.354 million according to the financial statements audited by an accounting firm approved by the Tantech, Jingning Zhonggang will be obligated to refund to Tantech the overpaid amount. The payment could be in the form of cash, shares, or other assets with the same value, as selected by Tantech. On December 17, 2019, Lishui Tantech entered into a supplementary agreement to the Investment Agreement (the "Supplementary Agreement," and collectively with the Investment Agreement, the "Agreements") with Jingning Zhonggang and Lishui Zhonggang Mining Co., Ltd. ("Lishui Zhonggang"). Jingning Zhonggang is a wholly-owned subsidiary of Lishui Zhonggang. Pursuant to the Supplementary Agreement, if Fuquan Chengwang is not able to receive the renewed mining permit by June 30, 2020, Lishui Tantech has the option to terminate the Investment Agreement and Jingning Zhonggang is obligated to return all of the consideration paid by the Company within 30 days after the termination date and the interest calculated by the relevant loan rate of the People's Bank of China. Lishui Zhonggang, as the only shareholder of Jingning Zhonggang, will be jointly and severally liable for Jingning Zhonggang's liabilities under the Agreements. Due to COVID-19 pandemic in early 2020, the permit renewal process has been delayed. Accordingly, the Company is in the process of negotiating an investment agreement amendment to extend the renewal due date from June 30, 2020 to December 31, 2020. After a series of transactions and reorganization, as of December 31, 2019, The Company and Jingning Zhonggang owns 18% and 82% of Libo Haokun, respectively, through Jingning Meizhongkuang Industry Co., Ltd. ("Jingning Meizhongkuang"). Jingning Meizhongkuang owns 100% of Fuquan Chengwang. The Agreements would enable Tantech to indirectly hold a 18% stake in Fuquan Chengwang through holding 18% of the equity interest of Jingning Meizhongkuang. As the Company did not have significant influence over the equity investee, the investments were accounted for using the cost method. For the years ended December 31, 2019 and 2018, the Company did not recognize any impairment losses for the long term investments. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Taxes | |
Taxes | Note 19 – Taxes Prepaid taxes Prepaid taxes as of December 31, 2019 and 2018 consist of the following: December 31, 2019 December 31, 2018 Prepaid corporation income tax $ 356,121 $ — Prepaid value-added tax 2,040,228 2,136,988 Total $ 2,396,349 $ 2,136,988 Taxes Payable Taxes payable as of December 31, 2019 and 2018 consist of the following: December 31, December 31, 2019 2018 Corporation income tax payable $ — $ 227,386 Other tax payable 102,704 117,177 Total $ 102,704 $ 344,563 Corporation Income Tax (“CIT”) Tantech BVI was incorporated in the BVI and is not subject to income taxes under the current laws of BVI. USCNHK and Euroasia are holding companies registered in Hong Kong and has no operating profit for tax liabilities. Tantech Bamboo was registered in the PRC and is subject to corporate income tax at a reduced rate of 15% starting from 2008 when it was approved by local government as a high-tech company. Tantech Energy was registered in the PRC and is also subject to corporate income tax at a reduced rate of 15% starting from 2013 when it was approved by local government as a high-tech company. Shangchi Automobile was approved by local government as a high –Tech company on December 7, 2017 and was subject to income tax rate of 15%. Lishui Tantech, Shenzhen E-Motors, Jiamu, Jiyi, Wangbo, Bamboo Tourism, Tantech Charcoal, Tantech Babiku and Tanbo Tech are all subject to income tax at unified rate of 25%. The impact of the tax holidays noted above decreased foreign taxes by $381,033, $158,424 and $899,503 for the years ended December 31, 2019, 2018 and 2017, respectively. The benefit of the tax holidays on net income (loss) per share (basic and diluted) was $0.01, $0.01 and $0.03 for the years ended December 31, 2019, 2018 and 2017, respectively. The following table reconciles PRC statutory rates to the Company’s effective tax rates for the years ended December 31, 2019, 2018 and 2017: Years ended December 31, 2019 2018 2017 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (a) (11) % (8) % (10) % Permanent difference and others 4 % (1) % 2 % Changes of deferred tax assets valuation allowances (22) % 35 % 17 % Total (4) % 51 % 34 % (a) Two of the Company’s subsidiaries, Tantech Bamboo and Shangchi Automobile are subject to tax rate of 15%. The provision for income tax consisted of the following: Years ended December 31, 2019 2018 2017 Current $ 529,162 $ 1,031,158 $ 1,334,254 Deferred (165,500) — 193,749 Total $ 363,662 $ 1,031,158 $ 1,528,003 Significant components of deferred tax assets and liabilities are as follows: December 31, December 31, 2019 2018 Deferred tax assets: Allowance for doubtful accounts and other reserves and impairments $ 4,426,306 $ 2,389,719 Valuation allowance (4,426,306) (2,389,719) Total $ — $ — Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 1,949,004 $ 2,053,512 Impairment of intangible assets acquired through acquisition (164,129) — Total $ 1,784,875 $ 2,053,512 At December 31, 2019 and 2018, the Company has provided full valuation allowance for deferred tax assets that the Company estimated the Company could not realize due to expected future operating loss in certain entities. As of December 31, 2019 and 2018, the valuation allowance was $4,426,306 and $2,389,719, respectively. The net change in the valuation allowance was an increase of $2,036,587, $707,013 and $1,212,303 for the years ended December 31, 2019, 2018 and 2017, respectively. The Company’s management reviews this valuation allowance periodically and makes adjustments as necessary. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Segment information | |
Segment information | Note 20 – Segment information The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results of consumer products, trading and electric vehicles separately. The Company has determined that it has three operating segments as defined by ASC 280, “Segment Reporting”: consumer products, electric vehicles, and trading. Consumer products segment manufactures and sells Charcoal Doctor branded products and BBQ charcoal in China. Trading segment conducts trading businesses related to bamboo charcoal products. Electric Vehicle segment (“EV”) was acquired in July 2017. Adjustments and eliminations of inter-company transactions were not included in determining segment (loss) profit, as they are not used by the chief operating decision maker. The following table presents summary information by segment for the years ended December 31, 2019, 2018 and 2017, respectively. Consumer product Trading EV Total 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Revenue from external customers $ 45,821,163 $ 22,388,827 $ 31,889,149 $ 3,379,705 $ 3,776,842 $ 1,829,475 $ 29,702 $ 3,395,730 $ 8,578,988 $ 49,230,570 $ 29,561,399 $ 42,297,612 Revenue from inter segment (1,005,029) (7,790,931) (2,736,204) — — (24,550) — — — (1,005,029) (7,790,931) (2,760,754) Cost of revenue 40,138,663 14,347,896 23,693,289 2,270,766 3,290,089 1,412,062 843,641 3,894,334 6,636,402 43,253,070 21,532,319 31,741,753 Gross profit 5,682,500 8,040,931 8,195,860 1,108,939 486,753 417,413 (813,939) (498,604) 1,942,586 5,977,500 8,029,080 10,555,859 Interest Expenses 355,400 292,996 290,383 71,979 126,030 124,587 15,883 207,317 136,162 443,262 626,343 551,044 Depreciation & amortization 276,170 420,301 454,178 — — 25,345 627,958 526,725 299,075 904,128 947,026 778,598 Capital expenditure 6,787,833 13,512,820 74,202 — 209,721 — 12,106 792,981 8,061 6,799,939 14,515,522 82,263 Segment assets 81,944,714 84,899,512 83,024,439 9,487,143 7,777,390 5,988,364 24,018,920 41,517,112 49,474,923 115,450,777 134,194,014 138,487,726 Segment profit $ 2,430,387 $ 4,135,969 $ 5,258,037 $ (83,910) $ (134,511) $ 203,157 $ (12,005,760) $ (3,004,827) $ (2,513,613) $ (9,659,283) $ 996,631 $ 2,947,581 All of the Company’s long-lived assets are located in the PRC. Geographic information about the revenues, which are classified based on customers, is set out as follows: Years ended December 31, 2019 2018 2017 Revenue from China $ 49,230,570 $ 29,561,399 $ 42,297,612 Revenue directly from foreign countries — — — Total Revenue $ 49,230,570 $ 29,561,399 $ 42,297,612 |
Major customers and suppliers
Major customers and suppliers | 12 Months Ended |
Dec. 31, 2019 | |
Major customers and suppliers | |
Major customers and suppliers | Note 21 – Major customers and suppliers The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For the year ended December 31, 2019, six major customers accounted for approximately 19%, 19%, 18%, 17%, 13% and 12% of the Company’s total sales, respectively. For the year ended December 31, 2018, two major customers accounted for approximately 37% and 12% of the Company's total sales, respectively. For the year ended December 31, 2017, two major customers accounted for approximately 39% and 8% of the Company's total sales, respectively. As of December 31, 2019, five customers accounted for approximately 30%, 18%, 18%, 16% and 16% of the Company’s accounts receivable balance. As of December 31, 2018, three customers accounted for approximately 45%, 13% and 11% of the Company’s accounts receivable balance. The Company also had certain major suppliers whose purchases individually represented 10% or more of the Company’s total purchases. For the year ended December 31, 2019, three major suppliers accounted for approximately 38%, 20% and 18% of the Company’s total purchases, respectively. For the year ended December 31, 2018, three major suppliers accounted for approximately 33%, 24% and 15% of the Company’s total purchases, respectively. For the year ended December 31, 2017, three major suppliers accounted for approximately 28%, 17% and 16% of the Company’s total purchases, respectively. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent events | |
Subsequent events | Note 22 – Subsequent events Bank loans On January 6, 2020, Tantech Bamboo entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow approximately $2.6 million (RMB 17.78 million) for six months with annual interest rate of 5.88%. The purpose of the loan was to fund working capital needs. The loan was collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $3.7 million (RMB25,960,000). The loan was also guaranteed by three related parties, Zhengyu Wang, Chairman of the Board and previous CEO of the Company and his wife, Yefang Zhang and Lishui Jiuanju Trading Co., Ltd., the president of which was also the present CEO and previous COO of the Company. On January 6, 2020, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow approximately $1.4 million (RMB 10 million) for six months with annual interest rate of 4%. The purpose of the loan was for working capital needs. The loan was guaranteed by Tantech Bamboo, two individual related parties, Zhengyu Wang and Yefang Zhang and a third party, Zhejiang Meifeng Tea Industry Co., Ltd. The loan was also collateralized by two properties owned by Zhengyu Wang and Yefang Zhang and building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $1.4 million (RMB 10 million). On April 27, 2020, Tantech Bamboo entered into a short-term loan agreement with Shanghai Pudong Development Bank (Lishui Branch) to borrow approximately $2.7 million (RMB 19 million) for one year with fixed annual interest rate of 4.785%. The purpose of the loan was to fund working capital needs. The loan was guaranteed by three related parties, Zhengyu Wang and his wife, Yefang Zhang and Forasen Group Co., Ltd., a company owned by Zhengyu Wang and Yefang Zhang. The loan was also collateralized by building and land use right of Tantech Energy with maximum guaranteed amount up to approximately $4.2 million (RMB29,250,000). Equity investment On April 3, 2020, Lishui Ansheng Energy Technology Co., a third party, signed an investment agreement with Jingning Meizhongkuang to invest in Fuquan Chengwang by paying RMB 46.50 million (approximately $6.6 million) to exchange 18% of the interest of Fuquan Chengwang. After the transaction, the Company’s Corporation structure reorganization On January 2, 2020, Lishui Jikang Energy Technology Co., Ltd. ("Jikang Energy") was established as a wholly owned subsidiary of Lishui Xincai with authorized share capital of RMB 5 million. Jikang Energy is a holding company and does not conduct any substantial business. On January 3, 2020, Tantech Bamboo transferred all of its shares in its wholly-owned subsidiary Tanbo Tech to Lishui Xincai. On January 10, 2020, Lishui Tantech transferred all of its shares in its wholly-owned subsidiary Tantech Bamboo to Jikang Energy. After the above transfers, Tantech Bamboo becomes the wholly-owned subsidiary of Jikang Energy. Jikang Energy, Tanbo Tech and Tantech Charcoal become the wholly-owned subsidiaries of Lishui Xincai. Stockholders’ equity On March 23, 2020, the Company issued 35,592 shares of common stock to an individual for consulting services provided for the period from September 2019 to February 2020, which were valued at $33,812 based on the quoted market price at issuance. The entire cost of $33,812 was amortized over the 6-month service period using straight line method. COVID-19 The Company's operations are affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Company's business has been negatively impacted by the COVID-19 coronavirus outbreak to certain extent. From late January 2020 to the middle of February 2020, the Company had to temporarily suspend our manufacturing activities due to government restrictions. During the temporary business closure period, our employees had very limited access to our manufacturing facilities and the shipping companies were not available and as a result, the Company experienced difficulty delivering our products to the customers on a timely basis. In addition, due to the COVID-19 outbreak, some of the customers or suppliers may experience financial distress, delay or default on their payments, reduce the scale of their business, or suffer disruptions in their business due to the outbreak. Any increased difficulty in collecting accounts receivable, delayed raw materials supply, bankruptcy of small and medium businesses, or early termination of agreements due to deterioration in economic conditions could negatively impact our results of operations. In light of the current circumstances and available information, the Company estimated that for the period from January to May 2020, the Company's revenues for consumer product segment could be approximately 20% lower as compared to the same period of last year, however, the sales for trading segment increased due to the significant increased demand for bamboo charcoal used for air purification and sanitation products. As of the date of this filing, the COVID-19 coronavirus outbreak in China appears to have slowed down and most provinces and cities have resumed business activities under the guidance and support of the government. However, there is still significant uncertainty regarding the possibility of a second wave of infections, and the breadth and duration of business disruptions related to COVID-19, which could continue to have material impact to the Company's operations. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting policies | |
Principal of Consolidation | Principal of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of Tantech BVI and its subsidiaries, and entities controlled through a series of agreements known as variable interest agreements (“VIE”) (collectively, the “Company”). All significant inter-company balances and transactions are eliminated upon consolidation. |
Non-controlling interest | Non-controlling interest Non-controlling interest represents 30% of the equity interest in Shangchi Automobile and its subsidiary Shenzhen E-Motors owned by Zhangjiagang Jinke Chuangtou Co., Ltd., which is not under the Company’s control. |
Business Combinations | Business Combinations Business combinations are accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. |
Discontinued operation | Discontinued operation In accordance with ASU No. 2014‑08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205‑20‑45‑1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205‑20‑45. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting year. Significant items subject to such estimates and assumptions include the fair value estimates used in the purchase price allocation, the useful lives of property and equipment and intangible assets, allowances pertaining to the allowance for doubtful accounts and advance to suppliers, the valuation of inventories, the impairment of long-lived assets, and the realizability of deferred tax assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements”, defines fair value, establishes a three-level valuation hierarchy for fair value measurements and enhances disclosure requirements. The three levels are defined as follows: Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, other receivables, accounts payable, customer deposits, accrued expenses, short term bank loans and bank acceptance notes payable approximates their recorded values due to their short-term maturities. |
Cash and cash equivalents | Cash and cash equivalents For purposes of the statements of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less and money market accounts to be cash equivalents. All cash balances are in bank accounts in PRC and are not insured by the Federal Deposit Insurance Corporation or other programs. |
Restricted Cash | Restricted Cash Restricted cash represents required cash deposits as a part of collateral for bank acceptance notes payable and letters of credit. The Company is required to maintain 0% to 100% of the balance of the bank acceptance notes payable in restricted cash to ensure future credit availability. The Company earns interest at a variable rate per month on this restricted cash. In November 2016, the FASB issued Accounting Standards Update No. 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. The Company adopted the new standard effective January 1, 2018, using the retrospective transition method. |
Concentrations of credit risk | Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, trade accounts receivable and advances to suppliers. All of the Company’s cash is maintained with banks within the People’s Republic of China of which no deposits are covered by insurance. The Company has not experienced any losses in such accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company also makes cash advances to certain suppliers to ensure the stable supply of key raw materials. The Company performs ongoing credit evaluations of its customers and key suppliers to help further reduce credit risk. |
Accounts receivable | Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. |
Inventory | Inventory The Company values its inventories at the lower of cost, determined on a weighted average basis, or net realizable value. The Company reviews its inventories periodically to determine if any reserves are necessary for potential obsolescence or if a write-down is necessary if the carrying value exceeds net realizable value. |
Advances to Suppliers | Advances to Suppliers In order to ensure a steady supply of raw materials, the Company is required from time to time to make cash advances when placing its purchase orders. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to refund an advance or provide supplies to the Company. |
Property and Equipment and Construction in Progress | Property and Equipment and Construction in Progress Property and equipment are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows: Buildings 20 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years Repairs and maintenance costs are normally charged to earnings in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Construction in progress includes direct costs of construction or acquisition of equipment, interest expense associated with the loans used for the construction and design fees incurred. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until it is completed and ready for its intended use. |
Intangibles assets, net | Intangibles assets, net Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at their fair value. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses and permits Indefinite Software 5 - 10 years Land use right 50 years Patents 10 years The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. The Company evaluates licenses and permits for impairment at least annually or whenever indicators of impairment are present. For the year ended December 31, 2019, the Company recorded an impairment of $1,103,332 for the licenses and permits acquired from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors) in fiscal 2017. There was no intangible assets impairment as of and for the years ended December 31, 2018 and 2017. |
Goodwill | Goodwill Goodwill represents the excess of the consideration over the fair value of the net assets acquired at the date of acquisition. Goodwill is not amortized but rather tested for impairment at least annually at the reporting unit level by applying a fair-value based test in accordance with accounting and disclosure requirements for goodwill and other indefinite-lived intangible assets. This test is performed by management annually or more frequently if the Group believes impairment indicators are present. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20, Intangibles - Goodwill and Other. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss in general and administrative expenses. For the year ended December 31, 2019, the Company wrote off the goodwill acquired from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors) in fiscal 2017 of $8,480,668. |
Long term investment | Long term investments The Company accounts for investment in equity investees over which it has significant influence but does not own a majority of the equity interest or lack of control using the equity method. For investment in equity investees over which the Company does not have significant influence or the underlying shares the Company invested in are not considered in-substance common stock and have no readily determinable fair value, the cost method accounting is applied. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company records the cost method investments at historical cost and subsequently record any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Investment in equity investees are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. |
Customer Deposits | Customer Deposits Customer deposits represent amounts received from customers in advance of shipments relating to the sales of the Company’s products. |
Due to Third Parties | Due to Third Parties Due to third parties represent amounts the Company borrowed from third parties for working capital purpose. The due to third parties balance are unsecured, interest-free and due upon demand. As of December 31, 2019 and 2018, the due to third parties balance amounted to $287,200 and $3,253,253, respectively. |
Leases | Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases. The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. The new standard establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The Company adopted this standard on January 1, 2019 on a modified retrospective basis and elected the practical expedients permitted under the transition guidance, which allows the Company to carryforward the historical lease classification, the assessment on whether a contract is or contains a lease, and the initial direct costs for any leases that exist prior to adoption of the new standard. Leases with an initial term of 12 months or less are not recognized on the balance sheet and the associated lease payments are included in the consolidated statements of comprehensive income (loss) on a straight-line basis over the lease term. The new standard has no material effect on the consolidated financial statements as the Company does not have a lease with a term longer than 12 months. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective approach. Revenues for the years ended December 31, 2019 and 2018 were presented under ASC 606, and revenues for the year ended December 31, 2017 was not adjusted and continue to be presented under ASC Topic 605, Revenue Recognition. There is no adjustment to the opening balance of retained earnings at January 1, 2018 since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Company’s revenues are primarily derived from the following sources: Sales of products: The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time the product is delivered to the customer and control is transferred (point of sale). Commission income: The Company acts as an agent without assuming the risks and rewards of ownership of the goods and reports the revenue on a net basis. Revenue is recognized based on the completion of the contracted service. Government manufacturing rebate income: The Company sells electric vehicles in China and is eligible for a government manufacturing rebate on each qualifying electric vehicle sold. The government manufacturing rebates are recognized as part of revenue when sales are finalized, amount of rebates can be reasonably estimated and collection is assured. The collectability of rebates can be assured as long as the sales are deemed qualifying based on the criteria set by the government. Revenue is reported net of all value added taxes. The Company does not routinely permit customers to return products and historically, customer returns have been immaterial. |
Cost of Revenues | Cost of Revenues Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or market adjustments is also recorded in cost of revenues. |
Shipping and Handling | Shipping and Handling Shipping and handling costs are expensed as incurred and included in selling expenses. |
Subsidy Income | Subsidy Income The Company periodically receives various government grants such as “High Technology Projects Subsidy” and “Scientific Research Grant”. There is no guarantee the Company will continue to receive such grants in the future. |
Foreign Currency Translation | Foreign Currency Translation The Company’s financial information is presented in U.S. dollars. The functional currency of the Company’s subsidiaries in the PRC is the RMB, the currency of the PRC. Any subsidiary transactions, which are denominated in currencies other than RMB, are translated into RMB at the exchange rate quoted by the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of comprehensive income (loss) as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. The financial information is first prepared in RMB and then is translated into U.S. dollars at period-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’ equity. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2019 December 31, 2018 December 31, 2017 US$:RMB exchange rate Period End $ 0.1436 Period End $ 0.1513 Period End $ 0.1537 Average $ 0.1448 Average $ 0.1454 Average $ 0.1478 |
Comprehensive Income (loss) | Comprehensive Income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustment from those subsidiaries not using the U.S. dollar as their functional currency. |
Income Taxes | Income Taxes The Company’s subsidiaries in China are subject to the income tax laws of the PRC. No taxable income was generated outside the PRC for the years ended December 31, 2019, 2018 and 2017. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain. ASC 740‑10‑25 prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There were no material uncertain tax positions as of December 31, 2019 and 2018. All tax returns since the Company’s inception are subject to examination by tax authorities. |
Value Added Tax ("VAT") | Value Added Tax (“VAT”) The Company is subject to VAT for selling merchandise. The applicable VAT rate is 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. The applicable VAT rate of 17% and 11% decreased to 16% and 10% starting from May 2018, and further decreased to 13% and 9% from April 1, 2019. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of taxes which is determined to be late or deficient, with any penalty being expensed in the period when a determination is made by the tax authorities that a penalty is due. During the reporting periods, the Company had no dispute with PRC tax authorities and there was no tax penalty incurred. |
Earnings (loss) per Share ("EPS") | Earnings (loss) per Share (“EPS”) The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”), and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2019, 2018 and 2017, there were 1,078,045 warrants not included in the diluted loss per share as they would be anti-dilutive. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Reclassification | Reclassification Due to business strategy change, during the year ended December 31, 2018, the Company closed Lishui Zhongzhu and Tantech Babiku, and during the year ended December 31, 2019, the Company sold Tantech Energy. In connection with the discontinued operations of the business, certain prior period amounts have been reclassified to conform to the current period presentation. |
Risks and Uncertainties | Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions are denominated in RMB, and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. The Company does not carry any business interruption insurance, products liability insurance or any other insurance policy except for a limited property insurance policy. As a result, the Company may incur uninsured losses, increasing the possibility that investors would lose their entire investment in the Company. |
Recent accounting pronouncements | Recent accounting pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016‑13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016‑13”) which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016‑13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016‑13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the adoption of ASU 2016‑13 on its consolidated financial statements. In February 2018, the FASB issued ASU 2018‑02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act). The Company does not believe this guidance has a material impact on its consolidated financial statements. In March 2018, the FASB issued ASU 2018‑05 — Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018‑05”), which amends the FASB Accounting Standards Codification and XBRL Taxonomy based on the Tax Cuts and Jobs Act (the “Act”) that was signed into law on December 22, 2017 and Staff Accounting Bulletin No. 118 (“SAB 118”) that was released by the Securities and Exchange Commission. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international tax consequences for many companies that operate internationally. The Company does not believe this guidance has a material impact on its consolidated financial statements. On June 20, 2018, the FASB issued ASU No. 2018‑07, Compensation—Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU No. 2018‑07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The new standard is effective for us on January 1, 2019. Early adoption is permitted, including in interim periods, and should be applied to all new awards granted after the date of adoption. The Company does not believe this guidance has a material impact on its consolidated financial statements. In August 2018, the FASB Accounting Standards Board issued ASU No. 2018‑13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018‑13”). ASU 2018‑13 modifies the disclosure requirements on fair value measurements. ASU 2018‑13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect this guidance will have a material impact on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) ("ASU 2020-01"), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The Company is currently evaluating the effect of adopting this ASU on the Group's financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting policies | |
Schedule of estimated useful lives for significant property and equipment | The estimated useful lives for significant property and equipment are as follows: Buildings 20 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years |
Schedule of estimated useful lives of the Company's | The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses and permits Indefinite Software 5 - 10 years Land use right 50 years Patents 10 years |
Schedule of currency exchange rates that were used in creating the consolidated financial statements | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2019 December 31, 2018 December 31, 2017 US$:RMB exchange rate Period End $ 0.1436 Period End $ 0.1513 Period End $ 0.1537 Average $ 0.1448 Average $ 0.1454 Average $ 0.1478 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entity | |
Schedule of variable interest entities | The following assets and liabilities of the consolidated VIE were included in the accompanying consolidated financial statements of the Company as of December 31, 2019 and 2018 after elimination of intercompany balances: December 31, 2019 December 31, 2018 Current assets Cash and cash equivalents $ 70,420 $ 33,638 Restricted cash 205,520 2,121,377 Accounts receivable, net 795,240 2,033,535 Prepaid taxes 894,051 936,579 Inventories, net 239,222 1,205,280 Advances to suppliers, net 93,241 14,655 Prepaid expenses and other receivables, net 73,378 70,074 Total Current Assets 2,371,072 6,415,138 Non-current assets Property, plant and equipment, net 1,139,398 1,388,749 Manufacturing rebate receivable 7,746,116 9,795,512 Intangible assets, net 12,764,272 15,056,810 Goodwill — 8,861,361 Total Assets $ 24,020,858 $ 41,517,570 Current liabilities Bank acceptance notes payable $ 205,520 $ 2,121,377 Accounts payable 1,165,718 1,878,713 Customer deposits 113,657 35,749 Taxes payable — 13,703 Due to related parties 943,584 1,233,155 Accrued liabilities and other payables 442,280 614,150 Total Current Liabilities 2,870,759 5,896,847 Non-current liabilities Deferred tax liability 1,784,875 2,053,512 Total Liabilities $ 4,655,634 $ 7,950,359 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued operations | |
Schedule of aggregated financial results of the discontinued business | The aggregated financial results of the discontinued business are set forth below. December 31, December 31, 2019 2018 Cash and cash equivalent $ — $ 32,919 Accounts receivable — 5,257,684 Inventory — 475,827 Advances to suppliers — 2,647,415 Prepaid value-added taxes — 72,742 Other receivables — 26,567 Total current assets from discontinued operations — 8,513,154 Accounts receivable from EDLC business — 1,235,489 Property, plant and equipment, net — 6,012,285 Intangible assets, net — 1,310,741 Total non-current assets from discontinued operations — 8,558,515 Total assets from discontinued operations — 17,071,669 Accounts payable — 1,038,888 Customer deposits — 337,743 Taxes payable — 140,212 Accrued liabilities and other payables — 145,409 Total current liabilities from discontinued operations — 1,662,252 Total liabilities from discontinued operations $ — $ 1,662,252 For the period from January 1 Year ended Year ended to July 31, December 31, December 31, 2019 2018 2017 Revenue $ 3,803,430 $ 9,107,922 $ 4,189,190 Cost of revenues 4,048,640 9,116,707 2,097,436 Gross profit (loss) (245,210) (8,785) 2,091,754 Operating expenses 629,525 3,164,918 1,270,723 (Reversal of) Bad debt provision (1,144,417) (1,477,631) 2,916,445 Income (loss) from operations 269,682 (1,696,072) (2,095,414) Other income, net 797 1,779,439 2,168,132 Income before income taxes 270,479 83,367 72,718 Income taxes — — 7,168 Income from discontinued operations, net of tax $ 270,479 $ 83,367 $ 65,550 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of accounts receivable | Accounts receivable consisted of the following: December 31, December 31, 2019 2018 Accounts receivable – non-related parties $ 45,083,689 $ 37,177,953 Allowance for doubtful accounts (5,731,281) (4,682,592) Accounts receivable, net $ 39,352,408 $ 32,495,361 |
Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowance for doubtful accounts | The movement of allowance for doubtful accounts are as follows for the years ended December 31, 2019 and 2018: Years ended December 31, 2019 2018 Balance at beginning of year $ 4,682,592 $ 3,794,065 Addition to allowance for doubtful accounts 1,286,997 947,770 Translation adjustments (238,308) (59,243) Balance at end of year $ 5,731,281 $ 4,682,592 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory | |
Schedule of inventory | December 31, December 31, 2019 2018 Raw materials $ 515,658 $ 1,619,504 Finished products 79,269 261,283 Work in process 700 76,271 Total Inventory $ 595,627 $ 1,957,058 |
Advances to suppliers (Tables)
Advances to suppliers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Advances to suppliers [Line Items] | |
Schedule of advances to suppliers | December 31, December 31, 2019 2018 Advances to suppliers $ 14,596,906 $ 15,813,997 Allowance for doubtful accounts (1,517,017) (1,426,769) Advances to suppliers, net 13,079,889 14,387,228 Less: Advances to suppliers, non-current — — Advances to suppliers, current $ 13,079,889 $ 14,387,228 |
Schedule of advances to suppliers - non-current | December 31, December 31, 2019 2018 Zhibo Jieli Special Battery Material Co., Ltd * $ 430,800 $ 453,900 Allowance for doubtful accounts (430,800) (453,900) Advances to suppliers – non-current, net $ — $ — * representing the prepayments made to acquire machinery. |
Advances To Suppliers [Member] | |
Advances to suppliers [Line Items] | |
Schedule of allowance for doubtful accounts | Years ended December 31, 2019 2018 Balance at beginning of year $ 1,426,769 $ 627,151 Addition to allowance for doubtful accounts 162,859 809,411 Translation adjustments (72,611) (9,793) Balance at end of year $ 1,517,017 $ 1,426,769 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment, net | |
Schedule of property, plant and equipment | December 31, December 31, 2019 2018 Building $ 5,199,348 $ 5,473,555 Machinery and Production equipment 1,901,886 2,012,061 Electronic equipment 240,606 203,491 Office equipment 55,961 55,407 Automobiles 501,156 527,485 Construction in progress 117,014 121,255 Subtotal 8,015,971 8,393,254 Less: Accumulated depreciation (5,315,937) (5,152,634) Property, plant and equipment, net $ 2,700,034 $ 3,240,620 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets, net | |
Schedule of intangible assets, net | December 31, December 31, 2019 2018 Software $ 24,314 $ 25,619 Electric vehicle registered license** 11,899,171 13,690,078 Land use rights* 287,800 303,232 Patents** 4,308,000 4,539,000 Subtotal 16,519,285 18,557,929 Less: Accumulated amortization (3,560,268) (3,289,867) Intangible assets, net $ 12,959,017 $ 15,268,062 *There is no private ownership of land in China. Land is usually owned by the local government and the government grants land use rights for specified terms. The Company acquired two land use rights from the local government in December 2002 and September 2008 for periods of 50 years. As of December 31, 2019, and 2018, land use rights with net book value of $194,745 (all from continuing operations) and $1,521,993 (among which $211,252 from continuing operations and $1,310,741 from discontinued operations), respectively, were pledged as collateral for bank loans (Note 12). The land use rights are amortized over 50 years and the software is amortized over 5 years. ** Electric vehicle registered license and patents on specialty electric vehicles resulted from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors). For the year ended December 31, 2019, the Company recorded an impairment of $1,103,332 for the registered license. |
Short-term bank loans (Tables)
Short-term bank loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-term bank loans | |
Schedule of Short-term bank loans | The Company’s short-term bank loans consist of the following: December 31, December 31, 2019 2018 Loan payable to Bank of China Lishui Branch $ 4,132,808 $ 4,808,314 Loan payable to SPD Bank Lishui Branch 2,728,400 2,874,700 Total $ 6,861,208 $ 7,683,014 |
Bank acceptance notes payable (
Bank acceptance notes payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Bank acceptance notes payable | |
Schedule of Bank acceptance notes payable | Bank acceptance notes payable consisted of the following: December 31, December 31, 2019 2018 Bank acceptance notes payable issued by Bank of Zhang Jiagang Leyu Branch (a) $ — $ 2,121,377 Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch (b) 205,520 — Total $ 205,520 $ 2,121,377 (a) Bank acceptance notes payable of $2,121,377 (RMB14,021,000) issued by Bank of Zhang Jiagang Leyu Branch with due dates from February 7, 2019 to June 28, 2019. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. Bank acceptance notes payable of $205,520 (RMB1,431,200) issued by Shanghai Pudong Development Bank Zhang Jiagang Branch with due date on January 12, 2020. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Balances and Transactions | |
Schedule of balances due to related parties | December 31, December 31, 2019 2018 Dr. Henglong Chen and its affiliates * $ 932,616 $ 1,227,773 Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company until December 6, 2019 693,504 874,402 Total $ 1,626,120 $ 2,102,175 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interests | |
Schedule of reconciliation of non-controlling interest | December 31, December 31, 2019 2018 Beginning Balance $ 7,918,096 $ 8,799,460 Proportionate shares of net loss (3,601,728) (896,769) Foreign currency translation adjustment 29,848 15,405 Total $ 4,346,216 $ 7,918,096 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes | |
Schedule of prepaid taxes | December 31, 2019 December 31, 2018 Prepaid corporation income tax $ 356,121 $ — Prepaid value-added tax 2,040,228 2,136,988 Total $ 2,396,349 $ 2,136,988 |
Schedule of taxes payable | December 31, December 31, 2019 2018 Corporation income tax payable $ — $ 227,386 Other tax payable 102,704 117,177 Total $ 102,704 $ 344,563 |
Schedule of effective tax rates reconciliation | Years ended December 31, 2019 2018 2017 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (a) (11) % (8) % (10) % Permanent difference and others 4 % (1) % 2 % Changes of deferred tax assets valuation allowances (22) % 35 % 17 % Total (4) % 51 % 34 % (a) Two of the Company’s subsidiaries, Tantech Bamboo and Shangchi Automobile are subject to tax rate of 15%. |
Schedule of provision for income | Years ended December 31, 2019 2018 2017 Current $ 529,162 $ 1,031,158 $ 1,334,254 Deferred (165,500) — 193,749 Total $ 363,662 $ 1,031,158 $ 1,528,003 |
Schedule of components of deferred tax assets and liabilities | December 31, December 31, 2019 2018 Deferred tax assets: Allowance for doubtful accounts and other reserves and impairments $ 4,426,306 $ 2,389,719 Valuation allowance (4,426,306) (2,389,719) Total $ — $ — Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 1,949,004 $ 2,053,512 Impairment of intangible assets acquired through acquisition (164,129) — Total $ 1,784,875 $ 2,053,512 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment information | |
Schedule of information by segment | Consumer product Trading EV Total 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Revenue from external customers $ 45,821,163 $ 22,388,827 $ 31,889,149 $ 3,379,705 $ 3,776,842 $ 1,829,475 $ 29,702 $ 3,395,730 $ 8,578,988 $ 49,230,570 $ 29,561,399 $ 42,297,612 Revenue from inter segment (1,005,029) (7,790,931) (2,736,204) — — (24,550) — — — (1,005,029) (7,790,931) (2,760,754) Cost of revenue 40,138,663 14,347,896 23,693,289 2,270,766 3,290,089 1,412,062 843,641 3,894,334 6,636,402 43,253,070 21,532,319 31,741,753 Gross profit 5,682,500 8,040,931 8,195,860 1,108,939 486,753 417,413 (813,939) (498,604) 1,942,586 5,977,500 8,029,080 10,555,859 Interest Expenses 355,400 292,996 290,383 71,979 126,030 124,587 15,883 207,317 136,162 443,262 626,343 551,044 Depreciation & amortization 276,170 420,301 454,178 — — 25,345 627,958 526,725 299,075 904,128 947,026 778,598 Capital expenditure 6,787,833 13,512,820 74,202 — 209,721 — 12,106 792,981 8,061 6,799,939 14,515,522 82,263 Segment assets 81,944,714 84,899,512 83,024,439 9,487,143 7,777,390 5,988,364 24,018,920 41,517,112 49,474,923 115,450,777 134,194,014 138,487,726 Segment profit $ 2,430,387 $ 4,135,969 $ 5,258,037 $ (83,910) $ (134,511) $ 203,157 $ (12,005,760) $ (3,004,827) $ (2,513,613) $ (9,659,283) $ 996,631 $ 2,947,581 |
Schedule of long-lived assets, by geographic information about the revenues | Years ended December 31, 2019 2018 2017 Revenue from China $ 49,230,570 $ 29,561,399 $ 42,297,612 Revenue directly from foreign countries — — — Total Revenue $ 49,230,570 $ 29,561,399 $ 42,297,612 |
Organization and nature of bu_2
Organization and nature of business - (Details ) | Dec. 28, 2016shares | Dec. 31, 2019 | Jul. 12, 2017 | Jun. 24, 2016individual | Aug. 19, 2015 |
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | ||||
Ownership (percentage) | 100.00% | ||||
Euroasia [Member] | |||||
Ownership (percentage) | 100.00% | ||||
Shangchi Automobile [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | ||||
Ownership (percentage) | 70.00% | ||||
USCNHK [Member] | |||||
Ownership (percentage) | 100.00% | ||||
Tantech Bamboo [Member] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 1,018,935 | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | ||||
Ownership (percentage) | 95.00% | ||||
Number of individual holders entered Into an equity purchase agreement | individual | 5 | ||||
Hangzhou Jiyi Trading Co., Ltd [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | ||||
Ownership (percentage) | 19.00% | ||||
Hangzhou Jiyi Trading Co., Ltd [Member] | Jiamu [Member] | |||||
Ownership (percentage) | 100.00% | ||||
Hangzhou Wangbo Investment Management Co Ltd [Member] | |||||
Ownership (percentage) | 51.00% |
Summary of significant accoun_4
Summary of significant accounting policies - Significant property and equipment (Details ) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Electronic equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Electronic equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary of significant accoun_5
Summary of significant accounting policies - Estimated useful lives of intangible assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impairment of intangible assets | $ 0 | $ 0 | |
Recorded Impairment | $ 1,103,332 | ||
Software | Maximum | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Software | Minimum | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Land use right | |||
Finite-Lived Intangible Asset, Useful Life | 50 years | ||
Patents | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Summary of significant accoun_6
Summary of significant accounting policies - Currency exchange rates (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Foreign Currency Translation [Abstract] | |||
Foreign Currency Exchange Rate, Translation | 0.1436 | 0.1513 | 0.1537 |
Foreign Currency Average Exchange Rate Translation | 0.1448 | 0.1454 | 0.1478 |
Summary of significant accoun_7
Summary of significant accounting policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Value Added Tax Description | The Company is subject to VAT for selling merchandise. The applicable VAT rate is 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. The applicable VAT rate of 17% and 11% decreased to 16% and 10% starting from May 2018, and further decreased to 13% and 9% from April 1, 2019. | ||
Due to third parties | $ 287,200 | $ 3,253,253 | |
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted Cash Minimum Balance Maintain Percentage | 100.00% | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted Cash Minimum Balance Maintain Percentage | 0.00% | ||
Warrant [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,078,045 | 1,078,045 | 1,078,045 |
Suzhou E-Motor [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | ||
Goodwill written off | $ 8,480,668 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Current assets | |||
Cash and cash equivalents | $ 12,440,457 | $ 7,748,416 | |
Restricted cash | 205,520 | 2,121,377 | |
Accounts receivable, net | 39,352,408 | 32,495,361 | |
Prepaid taxes | 2,396,349 | 2,136,988 | |
Inventories, net | 595,627 | 1,957,058 | |
Advances to suppliers, net | 13,079,889 | 14,387,228 | |
Prepaid expenses and other receivables, net | 91,377 | 954,362 | |
Total Current Assets (Note 3 at VIE) | 68,161,627 | 70,313,944 | |
Non-current assets | |||
Property, plant and equipment, net | 2,700,034 | 3,240,620 | |
Manufacturing rebate receivable | ¥ 53,942,315 | 7,746,116 | 9,795,512 |
Intangible assets, net | 12,959,017 | 15,268,062 | |
Goodwill | 0 | 8,861,361 | |
Total Assets (Note 3 at VIE) | 115,450,777 | 134,194,014 | |
Current liabilities | |||
Bank acceptance notes payable | 205,520 | 2,121,377 | |
Accounts payable | 1,650,851 | 2,524,462 | |
Customer deposits | 6,955,142 | 865,615 | |
Taxes payable | 102,704 | 344,563 | |
Due to related parties | 1,626,120 | 2,102,175 | |
Accrued liabilities and other payables | 1,444,896 | 1,598,104 | |
Total Current Liabilities (Note 3 at VIE) | 19,133,641 | 22,154,815 | |
Non-current liabilities | |||
Deferred tax liability | 1,784,875 | 2,053,512 | |
Total Liabilities (Note 3 at VIE) | 20,918,516 | 24,208,327 | |
VIE [Member] | |||
Current assets | |||
Cash and cash equivalents | 70,420 | 33,638 | |
Restricted cash | 205,520 | 2,121,377 | |
Accounts receivable, net | 795,240 | 2,033,535 | |
Prepaid taxes | 894,051 | 936,579 | |
Inventories, net | 239,222 | 1,205,280 | |
Advances to suppliers, net | 93,241 | 14,655 | |
Prepaid expenses and other receivables, net | 73,378 | 70,074 | |
Total Current Assets (Note 3 at VIE) | 2,371,072 | 6,415,138 | |
Non-current assets | |||
Property, plant and equipment, net | 1,139,398 | 1,388,749 | |
Manufacturing rebate receivable | 7,746,116 | 9,795,512 | |
Intangible assets, net | 12,764,272 | 15,056,810 | |
Goodwill | 0 | 8,861,361 | |
Total Assets (Note 3 at VIE) | 24,020,858 | 41,517,570 | |
Current liabilities | |||
Bank acceptance notes payable | 205,520 | 2,121,377 | |
Accounts payable | 1,165,718 | 1,878,713 | |
Customer deposits | 113,657 | 35,749 | |
Taxes payable | 0 | 13,703 | |
Due to related parties | 943,584 | 1,233,155 | |
Accrued liabilities and other payables | 442,280 | 614,150 | |
Total Current Liabilities (Note 3 at VIE) | 2,870,759 | 5,896,847 | |
Non-current liabilities | |||
Deferred tax liability | 1,784,875 | 2,053,512 | |
Total Liabilities (Note 3 at VIE) | $ 4,655,634 | $ 7,950,359 |
Variable Interest Entity - Addi
Variable Interest Entity - Additional Information (Details) | Jul. 12, 2017 |
Wangbo [Member] | VIE [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Service fee (percentage) | 95.00% |
Liquidity (Details)
Liquidity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liquidity | ||||
Net proceeds from equity financing | $ 5,600,000 | $ 0 | $ 0 | $ 5,968,208 |
Cash on hand | 12,440,457 | 7,748,416 | ||
Short-term bank loans | 6,861,208 | 7,683,014 | ||
Bank acceptance notes payable | $ 205,520 | $ 2,121,377 |
Discontinued operations (Detail
Discontinued operations (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Discontinued operations | ||
Cash and cash equivalent | $ 0 | $ 32,919 |
Accounts receivable | 0 | 5,257,684 |
Inventory | 0 | 475,827 |
Advances to suppliers | 0 | 2,647,415 |
Prepaid value-added taxes | 0 | 72,742 |
Other receivables | 0 | 26,567 |
Total current assets from discontinued operations | 0 | 8,513,154 |
Accounts receivable from EDLC business | 0 | 1,235,489 |
Property, plant and equipment, net | 0 | 6,012,285 |
Intangible assets, net | 0 | 1,310,741 |
Total non-current assets from discontinued operations | 0 | 8,558,515 |
Total assets from discontinued operations | 0 | 17,071,669 |
Accounts payable | 0 | 1,038,888 |
Customer deposits | 0 | 337,743 |
Taxes payable | 0 | 140,212 |
Accrued liabilities and other payables | 0 | 145,409 |
Total current liabilities from discontinued operations | 0 | 1,662,252 |
Total liabilities from discontinued operations | $ 0 | $ 1,662,252 |
Discontinued operations - Incom
Discontinued operations - Income statement (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Discontinued operations | |||
Revenue | $ 3,803,430 | $ 9,107,922 | $ 4,189,190 |
Cost of revenues | 4,048,640 | 9,116,707 | 2,097,436 |
Gross profit (loss) | (245,210) | (8,785) | 2,091,754 |
Operating expenses | 629,525 | 3,164,918 | 1,270,723 |
(Reversal of) Bad debt provision | (1,144,417) | (1,477,631) | 2,916,445 |
Income (loss) from operations | 269,682 | (1,696,072) | (2,095,414) |
Other income, net | 797 | 1,779,439 | 2,168,132 |
Income before income taxes | 270,479 | 83,367 | 72,718 |
Income taxes | 0 | 0 | 7,168 |
Income from discontinued operations, net of tax | $ 270,479 | $ 83,367 | $ 65,550 |
Discontinued operations - Addit
Discontinued operations - Additional Information (Details) | Dec. 14, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 26, 2019CNY (¥) | Jun. 26, 2019USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 14, 2017USD ($) |
Loss from disposal of discontinued operations | $ (569,891) | $ 0 | $ 0 | ||||||
Electric Double Layer Capacitor [Member] | |||||||||
Total Purchase price | ¥ 16,000,000 | $ 2,500,000 | |||||||
Term of purchase price payable | 10 years | ||||||||
Initial payments | ¥ 4,480,000 | $ 700,000 | |||||||
Number of equal installments | 9 | ||||||||
Discontinued Operations, Disposed of by Sale [Member] | Tantech Energy [Member] | |||||||||
Total Purchase price | ¥ 6,500,000 | $ 941,000 | |||||||
Loss from disposal of discontinued operations | $ 569,891 |
Accounts receivable (Details)
Accounts receivable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable | ||
Accounts receivable - non-related parties | $ 45,083,689 | $ 37,177,953 |
Allowance for doubtful accounts | (5,731,281) | (4,682,592) |
Accounts Receivable, Net | $ 39,352,408 | $ 32,495,361 |
Accounts receivable - Movement
Accounts receivable - Movement of allowance for doubtful accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts receivable | ||
Balance at beginning of year | $ 4,682,592 | $ 3,794,065 |
Addition to allowance for doubtful accounts | 1,286,997 | 947,770 |
Translation adjustments | (238,308) | (59,243) |
Balance at end of year | $ 5,731,281 | $ 4,682,592 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory | ||
Raw materials | $ 515,658 | $ 1,619,504 |
Finished products | 79,269 | 261,283 |
Work in process | 700 | 76,271 |
Total Inventory | $ 595,627 | $ 1,957,058 |
Inventory - Write-offs (Details
Inventory - Write-offs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory | |||
Inventory, LIFO Reserve, Period Charge | $ 1,030,236 | $ 700,379 | $ 13,908 |
Advances to suppliers (Details)
Advances to suppliers (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Advances to suppliers | ||
Advances to suppliers | $ 14,596,906 | $ 15,813,997 |
Allowance for doubtful accounts | (1,517,017) | (1,426,769) |
Including: | ||
Advances to suppliers, net | 13,079,889 | 14,387,228 |
Advances to suppliers, current | $ 13,079,889 | $ 14,387,228 |
Advances to suppliers - Allowan
Advances to suppliers - Allowance for doubtful accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Advances to suppliers [Line Items] | ||
Balance at beginning of year | $ 4,682,592 | $ 3,794,065 |
Addition to allowance for doubtful accounts | 1,286,997 | 947,770 |
Translation adjustments | (238,308) | (59,243) |
Balance at end of year | 5,731,281 | 4,682,592 |
Advances To Suppliers [Member] | ||
Advances to suppliers [Line Items] | ||
Balance at beginning of year | 1,426,769 | 627,151 |
Addition to allowance for doubtful accounts | 162,859 | 809,411 |
Translation adjustments | (72,611) | (9,793) |
Balance at end of year | $ 1,517,017 | $ 1,426,769 |
Advances to suppliers - Advance
Advances to suppliers - Advances to suppliers - non-current (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ (430,800) | $ (453,900) |
Advances to suppliers - non-current, net | 0 | 0 |
Zhibo Jieli Special Battery Material Co Ltd [Member] | ||
Advances to suppliers - non-current, gross | $ 430,800 | $ 453,900 |
Manufacturing rebate receivab_2
Manufacturing rebate receivable (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | Dec. 31, 2019USD ($) | |
Number of Qualified Electric Buses Sold | item | 0 | 109 | 100 | |
Increase Decrease In Manufacturing Rebate Receivable | $ 644,959 | $ 2,942,190 | ||
Manufacturing Rebate Receivables | ¥ 53,942,315 | 9,795,512 | $ 7,746,116 | |
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Sixteen | 29,600,000 | 4,250,560 | ||
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Seventeen | 19,906,560 | 2,858,582 | ||
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Eighteen | ¥ 4,435,755 | $ 636,974 | ||
Suzhou E-Motor [Member] | ||||
Manufacturing Rebate Receivables | $ 6,000 | $ 29,400 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 8,015,971 | $ 8,393,254 |
Less: Accumulated depreciation | (5,315,937) | (5,152,634) |
Property, plant and equipment, net | 2,700,034 | 3,240,620 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 5,199,348 | 5,473,555 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,901,886 | 2,012,061 |
Electronic equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 240,606 | 203,491 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 55,961 | 55,407 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 501,156 | 527,485 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 117,014 | $ 121,255 |
Property, plant and equipment_4
Property, plant and equipment, net - Depreciation expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Continued and Discontinued Operations | $ 703,113 | $ 1,049,274 | $ 613,296 |
Depreciation | 462,639 | 628,144 | $ 576,953 |
Buildings pledged as collateral for bank loans | 7,139,561 | ||
Continuing Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Buildings pledged as collateral for bank loans | $ 966,201 | 1,149,156 | |
Discontinued Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Buildings pledged as collateral for bank loans | $ 5,990,405 |
Intangible assets, net (Details
Intangible assets, net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 16,519,285 | $ 18,557,929 |
Less: Accumulated amortization | (3,560,268) | (3,289,867) |
Intangible assets, net | 12,959,017 | 15,268,062 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 24,314 | 25,619 |
Electric Vehicle Registered License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 11,899,171 | 13,690,078 |
Land Use Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 287,800 | 303,232 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 4,308,000 | $ 4,539,000 |
Intangible assets, net - Land u
Intangible assets, net - Land use rights (Details) | 12 Months Ended | 70 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2008item | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization, Continued and Discontinued Operations | $ 459,898 | $ 602,959 | $ 201,647 | |
Amortization of Intangible Assets | $ 441,489 | 443,318 | 201,647 | |
Impairment of intangible assets | 0 | $ 0 | ||
Software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years | |||
Land Use Rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of Land Use Rights Acquired | item | 2 | |||
Intangible Assets, Net (Excluding Goodwill) | $ 194,745 | $ 1,521,993 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 50 years | |||
Land Use Rights [Member] | Continuing Operations [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Net (Excluding Goodwill) | $ 211,252 | |||
Land Use Rights [Member] | Discontinued Operations [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Net (Excluding Goodwill) | 1,310,741 | |||
Shangchi Automobile [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 1,103,332 |
Short-term bank loans (Details)
Short-term bank loans (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Bank Loans and Notes Payable | $ 6,861,208 | $ 7,683,014 |
Loan payable One [Member] | Loan payable to Bank of China Lishui Branch [Member] | ||
Short-term Bank Loans and Notes Payable | 4,132,808 | 4,808,314 |
Loan payable Two [Member] | Loan payable to SPD Bank Lishui Branch [Member] | ||
Short-term Bank Loans and Notes Payable | $ 2,728,400 | $ 2,874,700 |
Short-term bank loans - Additio
Short-term bank loans - Additional Information (Details) | Nov. 04, 2019CNY (¥)item | Mar. 18, 2019CNY (¥)item | Feb. 26, 2019CNY (¥)item | Nov. 23, 2018CNY (¥)item | Aug. 20, 2018CNY (¥)item | Aug. 20, 2018CNY (¥) | Aug. 16, 2018CNY (¥) | Aug. 01, 2018CNY (¥)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Nov. 04, 2019USD ($) | Mar. 18, 2019USD ($) | Feb. 26, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Nov. 23, 2018USD ($) | Aug. 20, 2018USD ($) | Aug. 16, 2018USD ($) | Aug. 01, 2018USD ($) |
Short-term Debt [Line Items] | ||||||||||||||||||||
Short-term Bank Loans and Notes Payable | $ | $ 6,861,208 | $ 7,683,014 | ||||||||||||||||||
Debt Instrument, Collateral Amount | $ | 7,139,561 | |||||||||||||||||||
Interest Expense | $ | 443,262 | $ 626,343 | $ 551,044 | |||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | ¥ 18,780,000 | $ 2,696,808 | ||||||||||||||||||
Debt Instrument, Term | 1 year | 7 months | 7 months | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | 6.05% | ||||||||||||||||||
Number of Guarantors | item | 3 | 2 | ||||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Charcoal | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | ¥ 10,000,000 | ¥ 13,000,000 | $ 1,436,000 | $ 1,966,900 | ||||||||||||||||
Debt Instrument, Term | 1 year | 7 months | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 6.10% | 4.35% | 6.10% | ||||||||||||||||
Number of Guarantors | item | 2 | 2 | ||||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Building And Land Use Right [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Collateral Amount | ¥ 25,960,000 | $ 3,700,000 | ¥ 25,570,000 | 3,900,000 | ||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Lishui Jiuanju Commercial Trade Co., Ltd. | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Collateral Amount | 10,000,000 | 1,513,000 | ||||||||||||||||||
Loan payable to Bank of China Lishui Branch, Debt One [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | ¥ 10,000,000 | $ 1,513,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.01% | 6.01% | ||||||||||||||||||
Loan payable to Bank of China Lishui Branch, Debt Two [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | ¥ 8,780,000 | ¥ 8,780,000 | $ 1,328,414 | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.06% | 6.06% | 6.06% | |||||||||||||||||
Loan payable to SPD Bank Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | ¥ 19,000,000 | ¥ 19,000,000 | $ 2,728,400 | $ 2,874,700 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.22% | 6.96% | 5.22% | 6.96% | ||||||||||||||||
Number of Guarantors | item | 3 | 3 | ||||||||||||||||||
Loan payable to SPD Bank Lishui Branch [Member] | Building And Land Use Right [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Collateral Amount | ¥ 29,250,000 | $ 4,200,000 | ¥ 29,250,000 | $ 4,400,000 | ||||||||||||||||
Notes Payable to Banks [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Interest Expense | $ | $ 421,646 | $ 378,857 | $ 479,358 | |||||||||||||||||
Notes Payable to Banks [Member] | Loan payable to Bank of China Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Number of Loans | item | 2 |
Bank acceptance notes payable_2
Bank acceptance notes payable (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) |
Bank acceptance notes payable (Note 3 at VIE) | $ 205,520 | $ 2,121,377 | ||
Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch [Member] | ||||
Bank acceptance notes payable (Note 3 at VIE) | 0 | ¥ 14,021,000 | 2,121,377 | |
Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch [Member] | ||||
Bank acceptance notes payable (Note 3 at VIE) | ¥ 1,431,200 | $ 205,520 | $ 0 |
Bank acceptance notes payable -
Bank acceptance notes payable - Additional Information (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) |
Restricted Cash and Cash Equivalents, Current | $ 205,520 | $ 2,121,377 | ||
Debt Instrument, Collateral Amount | 7,139,561 | |||
Notes Payable to Bank, Current | $ 205,520 | 2,121,377 | ||
Maximum | ||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | 100.00% | ||
Minimum | ||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 0.00% | 0.00% | ||
Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch [Member] | ||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | 100.00% | ||
Notes Payable to Bank, Current | $ 0 | ¥ 14,021,000 | 2,121,377 | |
Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch [Member] | ||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | 100.00% | ||
Notes Payable to Bank, Current | ¥ 1,431,200 | $ 205,520 | $ 0 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Due to related parties (Note 3 at VIE) | $ 1,626,120 | $ 2,102,175 |
Dr. Henglong Chen and its affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties (Note 3 at VIE) | 932,616 | 1,227,773 |
Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman previous and CEO of the Company until December 6, 2019 | ||
Related Party Transaction [Line Items] | ||
Due to related parties (Note 3 at VIE) | $ 693,504 | $ 874,402 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Additional Information (Details) - USD ($) | Jul. 12, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 28, 2016 |
Related Party Transaction [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | ||||
Due to Related Parties, Current | $ 1,626,120 | $ 2,102,175 | |||
Shangchi Automobile [Member] | |||||
Related Party Transaction [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,500,000 | ||||
Dr. Henglong Chen and its affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties, Current | 932,616 | 1,227,773 | |||
Dr. Henglong Chen and its affiliates [Member] | Shangchi Automobile [Member] | |||||
Related Party Transaction [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,500,000 | ||||
Forasen Group, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties, Current | $ 693,504 | $ 874,402 | |||
Mr. Yulong Chen, a shareholder of the Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties, Current | $ 1,537,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Aug. 30, 2019CNY (¥) | Aug. 30, 2019USD ($) | Aug. 10, 2019CNY (¥) | Aug. 10, 2019USD ($) | Mar. 31, 2019CNY (¥) | May 31, 2018CNY (¥) | May 31, 2018USD ($) | Jul. 31, 2017CNY (¥) | Aug. 31, 2019CNY (¥) | Aug. 31, 2019USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($) | Nov. 11, 2019CNY (¥) | Aug. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jul. 31, 2017USD ($) |
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||
Operating Leases, Rent Expense | $ 167,526 | $ 139,507 | $ 73,184 | |||||||||||||||||||||
Subsequent Event [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||
Operating lease daily rent | ¥ 1,238,784 | $ 178,000 | ||||||||||||||||||||||
Shangchi Automobile [Member] | ||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||
Short-term Lease Commitment, Amount | ¥ 1,000,000 | $ 144,000 | ||||||||||||||||||||||
Operating lease rent | ¥ 1,000,000 | $ 144,000 | ||||||||||||||||||||||
Operating lease daily rent | ¥ 2,740 | $ 400 | ||||||||||||||||||||||
Lease term | 1 year | 1 year | ||||||||||||||||||||||
Shenzhen E-Motors [Member] | ||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||
Short-term Lease Commitment, Amount | $ 13,500 | ¥ 93,600 | ||||||||||||||||||||||
Lease term | 1 year | |||||||||||||||||||||||
Forasen Group's [Member] | ||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||
Guaranty Liabilities | ¥ 57,070,000 | $ 8,000,000 | ||||||||||||||||||||||
Building Pledged As Collateral For Loans | ¥ 10,000,000 | $ 1,400,000 | ||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Mar. 4, 2022 | Jul. 23, 2020 | ||||||||||||||||||||||
Forasen Group's [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||
Loss contingency, damage sought | ¥ 29,500,000 | $ 4,200,000 | ||||||||||||||||||||||
Settlement awarded | ¥ 90,000,000 | $ 13,000,000 | ||||||||||||||||||||||
Payments by third party | 32,060,000 | $ 4,600,000 | ||||||||||||||||||||||
Remaining unpaid | ¥ 57,940,000 | $ 8,400,000 | ||||||||||||||||||||||
Lishui Jiuanju Commercial Trade Co., Ltd. | Tantech Bamboo [Member] | ||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||
Potential payment obligation | ¥ 70,000,000 | $ 10,100,000 |
Stockholders' equity (Details)
Stockholders' equity (Details) - USD ($) | Mar. 23, 2020 | Sep. 19, 2018 | Sep. 27, 2017 | Jul. 12, 2017 | Dec. 28, 2016 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Shares Issued, Price Per Share | $ 3.45 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,078,045 | ||||||||
Proceeds from Issuance of Common Stock | $ 5,600,000 | $ 0 | $ 0 | $ 5,968,208 | |||||
Sale of Stock, Number of Shares agreed to Sell | 1,891,307 | ||||||||
Description Warrants Exercise Term | The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Company's common shares. | ||||||||
Class of Warrant or Right, Outstanding | 1,078,045 | ||||||||
Weighted Average Remaining Life of Warrants | 3 years | ||||||||
Stock Issued During Period, Shares, Issued for Services | 150,000 | ||||||||
Stock Issued During Period, Value, Issued for Services | $ 35,592 | $ 243,000 | $ 0 | $ 243,000 | $ 0 | ||||
Proceeds from Warrant Exercises | $ 0 | ||||||||
Investor Warrants [Member] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 945,654 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.25 | ||||||||
Placement Agent Warrants [Member] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 132,391 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.675 | ||||||||
Term of Warrant | 5 years | ||||||||
Shangchi Automobile [Member] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,500,000 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 6,500,000 | ||||||||
Business Acquisition, Share Price | $ 2.6 | ||||||||
Tantech Bamboo [Member] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,018,935 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interests | |||
Beginning Balance | $ 7,918,096 | $ 8,799,460 | |
Proportionate shares of net loss | (3,601,728) | (896,769) | $ (754,084) |
Foreign currency translation adjustment | 29,848 | 15,405 | |
Total | $ 4,346,216 | $ 7,918,096 | $ 8,799,460 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Shangchi Automobile And Subsidiary Shenzhen E Motors [Member] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | 30.00% |
Long term investments (Details)
Long term investments (Details) ¥ in Thousands | Nov. 29, 2019CNY (¥) | Jan. 10, 2018CNY (¥)km² | Jun. 30, 2020 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 29, 2019USD ($) | Jan. 10, 2018USD ($) |
Equity Method Investment, Ownership Percentage | 100.00% | ||||||
Other than Temporary Impairment Losses, Investments | $ | $ 0 | $ 0 | |||||
Libo Haokun [Member] | |||||||
Equity Method Investment, Aggregate Cost | ¥ 120,000 | $ 18,200,000 | |||||
Equity Method Investment, Ownership Percentage | 18.00% | 18.00% | |||||
Number of square kilometers, right to mine provided | km² | 0.11 | ||||||
Jingning Zhonggang [Member] | |||||||
Equity Method Investment, Ownership Percentage | 82.00% | ||||||
Number of days from the supplementary agreement, consideration along with interest refundable if mining permit not received | 30 days | ||||||
Tantech [Member] | |||||||
Equity Method Investment, Ownership Percentage | 18.00% | ||||||
Fuquan Chengwang [Member] | |||||||
Equity Method Investment, Aggregate Cost | ¥ 46,323 | $ 6,650,000 | |||||
Equity Method Investment, Ownership Percentage | 18.00% | 100.00% | 18.00% | ||||
Value of the mining rights | ¥ | ¥ 257,354 | ||||||
Number of days, consideration payable after the completion of transfer of ownership | 30 days | ||||||
Fuquan Chengwang [Member] | Tantech [Member] | |||||||
Equity Method Investment, Ownership Percentage | 18.00% | ||||||
Jingning Meizhongkuang [Member] | |||||||
Equity Method Investment, Ownership Percentage | 18.00% |
Taxes - Prepaid taxes (Details)
Taxes - Prepaid taxes (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Taxes | ||
Prepaid corporation income tax | $ 356,121 | $ 0 |
Prepaid value-added tax | 2,040,228 | 2,136,988 |
Total | $ 2,396,349 | $ 2,136,988 |
Taxes - Taxes payable (Details)
Taxes - Taxes payable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Taxes | ||
Corporation income tax payable | $ 0 | $ 227,386 |
Other tax payable | 102,704 | 117,177 |
Total | $ 102,704 | $ 344,563 |
Taxes - Reconciles PRC statutor
Taxes - Reconciles PRC statutory rates (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes | |||
Statutory PRC income tax rate | 25.00% | 25.00% | 25.00% |
Favorable tax rate impact | (11.00%) | (8.00%) | (10.00%) |
Permanent difference and others | 4.00% | (1.00%) | 2.00% |
Changes of deferred tax assets valuation allowances | (22.00%) | 35.00% | 17.00% |
Total | (4.00%) | 51.00% | 34.00% |
Taxes - Provision for income ta
Taxes - Provision for income tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes | |||
Current | $ 529,162 | $ 1,031,158 | $ 1,334,254 |
Deferred | (165,500) | 0 | 193,749 |
Total | $ 363,662 | $ 1,031,158 | $ 1,528,003 |
Taxes - Components of deferred
Taxes - Components of deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for doubtful accounts and other reserves and impairments | $ 4,426,306 | $ 2,389,719 |
Valuation allowance | (4,426,306) | (2,389,719) |
Total | 0 | 0 |
Deferred tax liability: | ||
Increase in fair value of intangible assets acquired through acquisition | 1,949,004 | 2,053,512 |
Impairment of intangible assets acquired through acquisition | (164,129) | |
Total | $ 1,784,875 | $ 2,053,512 |
Taxes - Additional Information
Taxes - Additional Information (Details) - USD ($) | Jul. 17, 2017 | Jan. 01, 2013 | Jan. 01, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | |||
Deferred Tax Assets, Valuation Allowance | $ 4,426,306 | $ 2,389,719 | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2,036,587 | 707,013 | $ 1,212,303 | |||
Income Tax Holiday, decreased foreign taxes | $ 381,033 | $ 158,424 | $ 899,503 | |||
Benefit of the tax holidays on net income (loss) per share (basic and diluted) | $ 0.01 | $ 0.01 | $ 0.03 | |||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |||
Tantech Bamboo [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15.00% | |||||
Income tax rate (as a percent) | 15.00% | |||||
Tantech Energy [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15.00% | |||||
Income tax rate (as a percent) | 15.00% | |||||
Tantech Energy [Member] | Shangchi Automobile [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15.00% | |||||
Income tax rate (as a percent) | 15.00% |
Segment information (Details)
Segment information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Operating Segments | segment | 3 | ||
Revenues | $ 49,230,570 | $ 29,561,399 | $ 42,297,612 |
Cost of revenue | 43,253,070 | 21,532,319 | 31,741,753 |
Gross profit | 5,977,500 | 8,029,080 | 10,555,859 |
Interest Expenses | 439,869 | 608,048 | 479,358 |
Capital expenditure | 92,369 | 559,038 | 1,302,721 |
Segment assets | 115,450,777 | 134,194,014 | |
Segment profit | (9,659,283) | 996,631 | 2,947,581 |
Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 43,253,070 | 21,532,319 | 31,741,753 |
Gross profit | 5,977,500 | 8,029,080 | 10,555,859 |
Interest Expenses | 443,262 | 626,343 | 551,044 |
Depreciation & amortization | 904,128 | 947,026 | 778,598 |
Capital expenditure | 6,799,939 | 14,515,522 | 82,263 |
Segment assets | 115,450,777 | 134,194,014 | 138,487,726 |
Segment profit | (9,659,283) | 996,631 | 2,947,581 |
Consumer product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 40,138,663 | 14,347,896 | 23,693,289 |
Gross profit | 5,682,500 | 8,040,931 | 8,195,860 |
Interest Expenses | 355,400 | 292,996 | 290,383 |
Depreciation & amortization | 276,170 | 420,301 | 454,178 |
Capital expenditure | 6,787,833 | 13,512,820 | 74,202 |
Segment assets | 81,944,714 | 84,899,512 | 83,024,439 |
Segment profit | 2,430,387 | 4,135,969 | 5,258,037 |
Trading [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 2,270,766 | 3,290,089 | 1,412,062 |
Gross profit | 1,108,939 | 486,753 | 417,413 |
Interest Expenses | 71,979 | 126,030 | 124,587 |
Depreciation & amortization | 0 | 0 | 25,345 |
Capital expenditure | 0 | 209,721 | 0 |
Segment assets | 9,487,143 | 7,777,390 | 5,988,364 |
Segment profit | (83,910) | (134,511) | 203,157 |
EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 843,641 | 3,894,334 | 6,636,402 |
Gross profit | (813,939) | (498,604) | 1,942,586 |
Interest Expenses | 15,883 | 207,317 | 136,162 |
Depreciation & amortization | 627,958 | 526,725 | 299,075 |
Capital expenditure | 12,106 | 792,981 | 8,061 |
Segment assets | 24,018,920 | 41,517,112 | 49,474,923 |
Segment profit | (12,005,760) | (3,004,827) | (2,513,613) |
External customers [Member] | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 49,230,570 | 29,561,399 | 42,297,612 |
External customers [Member] | Consumer product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 45,821,163 | 22,388,827 | 31,889,149 |
External customers [Member] | Trading [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,379,705 | 3,776,842 | 1,829,475 |
External customers [Member] | EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 29,702 | 3,395,730 | 8,578,988 |
Intersegment [Member] | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | (1,005,029) | (7,790,931) | (2,760,754) |
Intersegment [Member] | Consumer product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | (1,005,029) | (7,790,931) | (2,736,204) |
Intersegment [Member] | Trading [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | (24,550) |
Intersegment [Member] | EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Segment information - Geographi
Segment information - Geographic information about revenues (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 49,230,570 | $ 29,561,399 | $ 42,297,612 |
CHINA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 49,230,570 | 29,561,399 | 42,297,612 |
Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Major customers and suppliers (
Major customers and suppliers (Details) | 12 Months Ended | ||
Dec. 31, 2019itemcustomer | Dec. 31, 2018itemcustomer | Dec. 31, 2017itemcustomer | |
Revenue from Contract with Customer Benchmark [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Two Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | |||
Number of Customers | 2 | 2 | |
Two Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 37.00% | ||
Two Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 12.00% | ||
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers A | |||
Concentration Risk, Percentage | 38.00% | 33.00% | 28.00% |
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers B | |||
Concentration Risk, Percentage | 20.00% | 24.00% | 17.00% |
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers C | |||
Concentration Risk, Percentage | 18.00% | 15.00% | 16.00% |
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 19.00% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 19.00% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 18.00% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 17.00% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer E [Member] | |||
Concentration Risk, Percentage | 13.00% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer F [Member] | |||
Concentration Risk, Percentage | 12.00% | ||
Three Customers [ Member] | Accounts Receivable [Member] | |||
Number of Customers | 3 | ||
Three Customers [ Member] | Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 45.00% | ||
Three Customers [ Member] | Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 13.00% | ||
Three Customers [ Member] | Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 11.00% | ||
Five Customers [Member] | Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 30.00% | ||
Five Customers [Member] | Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 18.00% | ||
Five Customers [Member] | Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 18.00% | ||
Five Customers [Member] | Accounts Receivable [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 16.00% | ||
Five Customers [Member] | Accounts Receivable [Member] | Customer E [Member] | |||
Concentration Risk, Percentage | 16.00% | ||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | |||
Number of Customers | 6 | ||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 39.00% | ||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 8.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Number of Customers | 5 | ||
Major Suppliers [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Major Suppliers [Member] | Cost of Goods, Total [Member] | |||
Number of Suppliers | item | 3 | 3 | 3 |
Subsequent events (Details)
Subsequent events (Details) | Apr. 27, 2020CNY (¥)item | Mar. 23, 2020USD ($)shares | Jan. 06, 2020CNY (¥)item | Mar. 18, 2019CNY (¥)item | Feb. 26, 2019CNY (¥)item | Sep. 19, 2018USD ($)shares | Aug. 20, 2018 | Aug. 16, 2018 | Aug. 01, 2018CNY (¥)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Apr. 27, 2020USD ($) | Apr. 03, 2020CNY (¥) | Apr. 03, 2020USD ($) | Jan. 06, 2020USD ($) | Jan. 02, 2020CNY (¥) | Nov. 29, 2019CNY (¥) | Nov. 29, 2019USD ($) | Mar. 18, 2019USD ($) | Feb. 26, 2019USD ($) | Aug. 01, 2018USD ($) |
Subsequent Event [Line Items] | ||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ | $ 7,139,561 | |||||||||||||||||||||
Percentage of ownership interest | 100.00% | |||||||||||||||||||||
Amount of maximum borrowing capacity | $ | 7,139,561 | |||||||||||||||||||||
Issuance of common stock for service | $ | $ 35,592 | $ 243,000 | $ 0 | $ 243,000 | $ 0 | |||||||||||||||||
Issuance of common stock for service (in shares) | shares | 150,000 | |||||||||||||||||||||
Fuquan Chengwang [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Amount of investment | ¥ 46,323,000 | $ 6,650,000 | ||||||||||||||||||||
Percentage of ownership interest | 100.00% | 18.00% | 18.00% | |||||||||||||||||||
Tantech [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Percentage of ownership interest | 18.00% | |||||||||||||||||||||
Jingning Meizhongkuang [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Percentage of ownership interest | 18.00% | |||||||||||||||||||||
Jingning Zhonggang [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Percentage of ownership interest | 82.00% | |||||||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Amount of borrowing | ¥ 18,780,000 | $ 2,696,808 | ||||||||||||||||||||
Debt Instrument, Term | 1 year | 7 months | 7 months | |||||||||||||||||||
Annual interest rate | 6.05% | 6.05% | ||||||||||||||||||||
Number of Guarantors | 3 | 2 | ||||||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Charcoal | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Amount of borrowing | ¥ 10,000,000 | ¥ 13,000,000 | $ 1,436,000 | $ 1,966,900 | ||||||||||||||||||
Debt Instrument, Term | 1 year | 7 months | ||||||||||||||||||||
Annual interest rate | 4.35% | 6.10% | 4.35% | 6.10% | ||||||||||||||||||
Number of Guarantors | 2 | 2 | ||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Amount of investment | ¥ 46,500,000 | $ 6,600,000 | ||||||||||||||||||||
Issuance of common stock for service (in shares) | shares | 33,812 | |||||||||||||||||||||
Amortization period | 6 months | |||||||||||||||||||||
Subsequent Event [Member] | Jikang Energy [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Authorized share capital | ¥ | ¥ 5,000,000 | |||||||||||||||||||||
Subsequent Event [Member] | Fuquan Chengwang [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Percentage of ownership interest | 18.00% | 18.00% | ||||||||||||||||||||
Subsequent Event [Member] | Jingning Meizhongkuang [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Percentage of ownership interest | 14.76% | 14.76% | ||||||||||||||||||||
Equity Interest | 18.00% | 18.00% | ||||||||||||||||||||
Subsequent Event [Member] | Loan payable to Bank of China Lishui Branch [Member] | Tantech Bamboo [Member] | Notes Payable to Banks [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Amount of borrowing | ¥ 17,780,000 | $ 2,600,000 | ||||||||||||||||||||
Annual interest rate | 5.88% | 5.88% | ||||||||||||||||||||
Debt Instrument, Collateral Amount | ¥ 25,960,000 | $ 3,700,000 | ||||||||||||||||||||
Number of Guarantors | 3 | |||||||||||||||||||||
Amount of maximum borrowing capacity | ¥ 25,960,000 | 3,700,000 | ||||||||||||||||||||
Subsequent Event [Member] | Loan payable to Bank of China Lishui Branch [Member] | Tantech Charcoal | Notes Payable to Banks [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Amount of borrowing | ¥ 10,000,000 | $ 1,400,000 | ||||||||||||||||||||
Annual interest rate | 4.00% | 4.00% | ||||||||||||||||||||
Debt Instrument, Collateral Amount | ¥ 10,000,000 | $ 1,400,000 | ||||||||||||||||||||
Number of Guarantors | 2 | |||||||||||||||||||||
Amount of maximum borrowing capacity | ¥ 10,000,000 | $ 1,400,000 | ||||||||||||||||||||
Subsequent Event [Member] | Shanghai Pudong Development Bank [Member] | Tantech Bamboo [Member] | Notes Payable to Banks [Member] | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Amount of borrowing | ¥ 19,000,000 | $ 2,700,000 | ||||||||||||||||||||
Annual interest rate | 4.785% | 4.785% | ||||||||||||||||||||
Debt Instrument, Collateral Amount | ¥ 29,250,000 | $ 4,200,000 | ||||||||||||||||||||
Number of Guarantors | 3 | |||||||||||||||||||||
Amount of maximum borrowing capacity | ¥ 29,250,000 | $ 4,200,000 |