Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Entity Registrant Name | TANTECH HOLDINGS LTD |
Title of 12(b) Security | Common shares |
Document Annual Report | true |
Document Transition Report | false |
Trading Symbol | TANH |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 35,894,097 |
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 | 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 | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Current Assets | ||
Cash and cash equivalents (Note 3 at VIE) | $ 37,119,195 | $ 12,440,457 |
Restricted cash (Note 3 at VIE) | 220,109 | 205,520 |
Accounts receivable, net (Note 3 at VIE) | 34,410,597 | 39,352,408 |
Inventories, net (Note 3 at VIE) | 671,251 | 595,627 |
Advances to suppliers, net (Note 3 at VIE) | 6,854,461 | 13,079,889 |
Advances to suppliers - related party | 1,533,000 | 0 |
Prepaid taxes (Note 3 at VIE) | 1,046,667 | 2,396,349 |
Prepaid expenses and other receivables, net (Note 3 at VIE) | 45,467 | 91,377 |
Total Current Assets (Note 3 at VIE) | 81,900,747 | 68,161,627 |
Property, plant and equipment, net (Note 3 at VIE) | 2,477,912 | 2,700,034 |
Other Assets | ||
Manufacturing rebate receivable (Note 3 at VIE) | 5,755,237 | 7,746,116 |
Intangible assets, net (Note 3 at VIE) | 664,033 | 12,959,017 |
Long-term Investment | 25,497,316 | 23,883,983 |
Total Other Assets (Note 3 at VIE) | 31,916,586 | 44,589,116 |
Total Assets (Note 3 at VIE) | 116,295,245 | 115,450,777 |
Current Liabilities | ||
Short-term bank loans | 5,564,790 | 6,861,208 |
Bank acceptance notes payable (Note 3 at VIE) | 1,753,109 | 205,520 |
Accounts payable (Note 3 at VIE) | 1,543,994 | 1,650,851 |
Due to related parties (Note 3 at VIE) | 2,019,087 | 1,838,603 |
Customer deposits (Note 3 at VIE) | 3,183,088 | 6,742,659 |
Taxes payable (Note 3 at VIE) | 571,354 | 102,704 |
Due to third parties | 306,600 | 287,200 |
Accrued liabilities and other payables (Note 3 at VIE) | 1,861,835 | 1,444,896 |
Total Current Liabilities (Note 3 at VIE) | 16,803,857 | 19,133,641 |
Deferred tax liability (Note 3 at VIE) | 0 | 1,784,875 |
Total Liabilities (Note 3 at VIE) | 16,803,857 | 20,918,516 |
Stockholders' Equity | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 35,894,097 and 28,853,242 shares issued and outstanding as of December 31, 2020 and 2019, respectively | 35,894 | 28,853 |
Additional paid-in capital | 48,392,181 | 39,310,178 |
Statutory reserves | 6,437,506 | 6,379,276 |
Retained earnings | 45,480,031 | 52,058,681 |
Accumulated other comprehensive loss | (1,493,070) | (7,590,943) |
Total Stockholders' Equity attributable to the Company | 98,852,542 | 90,186,045 |
Noncontrolling interest | 638,846 | 4,346,216 |
Total Stockholders' Equity | 99,491,388 | 94,532,261 |
Total Liabilities and Stockholders' Equity | $ 116,295,245 | $ 115,450,777 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 35,894,097 | 35,894,097 |
Common Stock, Shares Outstanding | 35,894,097 | 28,853,242 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Revenues | $ 42,283,670 | $ 49,230,570 | $ 29,561,399 |
Cost of revenues | 37,807,297 | 43,253,070 | 21,532,319 |
Gross Profit | 4,476,373 | 5,977,500 | 8,029,080 |
Operating expenses | |||
Selling expenses | 977,201 | 319,946 | 320,479 |
General and administrative expenses | 955,210 | 4,655,382 | 4,971,804 |
Impairment of goodwill and intangible asset | 11,998,606 | 9,584,000 | 0 |
Research and development expenses | 890,316 | 327,260 | 386,628 |
Total operating expenses | 14,821,333 | 14,886,588 | 5,678,911 |
Income (loss) from operations | (10,344,960) | (8,909,088) | 2,350,169 |
Other income (expenses) | |||
Interest income | 50,732 | 53,060 | 56,894 |
Interest expense | (300,125) | (443,262) | (626,343) |
Other (loss) income, net | (39,530) | 3,669 | 247,069 |
Total other expenses | (288,923) | (386,533) | (322,380) |
(Loss) income before income tax expense (credit) | (10,633,883) | (9,295,621) | 2,027,789 |
Income tax expense (credit) | (611,655) | 363,662 | 1,031,158 |
Net (loss) income from continuing operations | (10,022,228) | (9,659,283) | 996,631 |
Discontinued operation: | |||
Income from discontinued operations, net of tax | 0 | 270,479 | 83,367 |
Loss from disposal of discontinued operations | (569,891) | 0 | |
Net (loss) income from discontinued operations | 0 | (299,412) | 83,367 |
Net (loss) income | (10,022,228) | (9,958,695) | 1,079,998 |
Less: net loss attributable to noncontrolling interest from continuing operations | (3,501,808) | (3,601,728) | (896,769) |
Net (loss) income attributable to common stockholders of Tantech Holdings Ltd | (6,520,420) | (6,356,967) | 1,976,767 |
Net (loss) income | (10,022,228) | (9,958,695) | 1,079,998 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 5,892,311 | (5,494,731) | (949,689) |
Comprehensive (loss) income | (4,129,917) | (15,453,426) | 130,309 |
Less: Comprehensive loss attributable to noncontrolling interest | (3,707,370) | (3,571,880) | (881,364) |
Comprehensive income (loss) attributable to common stockholders of Tantech Holdings Ltd | $ (422,547) | $ (11,881,546) | $ 1,011,673 |
Continuing operations | $ (0.22) | $ (0.21) | $ 0.07 |
Discontinued operations | 0 | (0.01) | 0 |
Total | $ (0.22) | $ (0.22) | $ 0.07 |
Weighted Average Shares Outstanding - Basic and Diluted, Continuing operations and discontinued operations | 29,566,243 | 28,853,242 | 28,745,571 |
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, 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 (loss) income | 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 (loss) income | 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 | ||||||
Issuance of common stock for private placement | $ 6,061 | 9,048,939 | 0 | 0 | 0 | 0 | 9,055,000 |
Issuance of common stock for private placement (in shares) | 6,060,608 | ||||||
Exercise of 2017 warrants | $ 945 | (713) | 0 | 0 | 0 | 0 | 232 |
Exercise of 2017 warrants (in shares) | 944,655 | ||||||
Issuance of common stock for service | $ 35 | 33,777 | 0 | 0 | 0 | 0 | 33,812 |
Issuance of common stock for service (in shares) | 35,592 | ||||||
Foreign currency translation adjustment | $ 0 | 0 | 6,097,873 | 0 | 0 | (205,562) | 5,892,311 |
Appropriation of retained earnings to statutory reserve fund | 0 | 0 | 0 | 58,230 | (58,230) | 0 | |
Net (loss) income | 0 | 0 | 0 | 0 | (6,520,420) | (3,501,808) | (10,022,228) |
Balance at Dec. 31, 2020 | $ 35,894 | $ 48,392,181 | $ (1,493,070) | $ 6,437,506 | $ 45,480,031 | $ 638,846 | $ 99,491,388 |
Balance (In Shares) at Dec. 31, 2020 | 35,894,097 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Cash flows from operating activities | ||||
Net (loss) income | $ (10,022,228) | $ (9,958,695) | $ 1,079,998 | |
Net loss (income) from discontinued operations | 0 | 299,412 | (83,367) | |
Segment profit | (10,022,228) | (9,659,283) | 996,631 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
(Reversal of) Allowance for doubtful accounts - accounts receivable | (845,416) | 1,297,752 | 910,811 | |
(Reversal of) Allowance for doubtful accounts - advance to suppliers | (378,233) | 164,220 | 777,848 | |
(Reversal of) Allowance for doubtful accounts - other receivables | (84,573) | 705,400 | 66,305 | |
Allowance for doubtful accounts - due from related party | 0 | 0 | 364,288 | |
Inventory reserve | 92,064 | 1,030,236 | 700,379 | |
Impairment of goodwill and intangible asset | 11,998,606 | 9,584,000 | 0 | |
Decrease in deferred tax liability | (1,799,791) | (165,500) | 0 | |
Depreciation expense | 436,427 | 462,639 | 628,144 | |
Amortization of intangible asset | 441,489 | 441,489 | 443,318 | |
Amortization of prepaid consulting expense | 0 | 140,738 | 102,263 | |
Loss (gain) from disposal of property, plant and equipment | 68,614 | (8,047) | (44,814) | |
Issuance of common stock for service | 33,812 | 0 | 0 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable - non-related party | 8,024,036 | (9,879,682) | 7,023,546 | |
Accounts receivable - related party | 0 | 0 | 3,249,359 | |
Advances to suppliers | 7,093,022 | 415,727 | (3,555,851) | |
Advances to suppliers, non-current | 0 | 0 | 1,558,916 | |
Advances to suppliers - related party | 1,448,000 | 0 | 0 | |
Inventory | (125,492) | 242,142 | (147,485) | |
Prepaid expenses and other receivables | 133,768 | 9,127 | 767,849 | |
Manufacturing rebate receivable | 2,374,720 | 1,563,840 | (644,959) | |
Accounts payable | (206,261) | (751,363) | (2,621,226) | |
Accrued liabilities and other payables | 313,552 | (78,923) | 49,492 | |
Customer deposits | (3,792,409) | 6,184,836 | (115,771) | |
Collection of receivable from discontinued operations | 0 | 8,962,187 | 0 | |
Taxes payable | 1,863,853 | (597,392) | 573,660 | |
Net cash provided by continuing operations | 14,171,560 | 10,064,143 | 11,082,703 | |
Net cash provided by discontinued operations | 0 | 4,632,769 | 3,582,177 | |
Net cash provided by operating activities | 14,171,560 | 14,696,912 | 14,664,880 | |
Cash flows from investing activities | ||||
Acquisition of property, plant and equipment | (144,806) | (92,369) | (559,038) | |
Proceeds from disposal of property, plant and equipment | 21,842 | 16,580 | 54,089 | |
Additions to intangible assets | 0 | 0 | (2,585) | |
Payment for investment | 0 | (6,707,570) | (17,448,000) | |
Proceeds from disposition of subsidiaries | 0 | 854,567 | 0 | |
Net cash used in continuing operations | (122,964) | (5,928,792) | (17,955,534) | |
Net cash used in discontinued operations | 0 | (1,522) | (39,976) | |
Net cash used in investing activities | (122,964) | (5,930,314) | (17,995,510) | |
Cash flows from financing activities | ||||
Proceeds from (repayment of) loans from third parties | 0 | (2,823,890) | 2,455,806 | |
Notes receivable | 0 | 0 | 14,540 | |
Bank acceptance notes payable, net of repayment | 1,448,667 | (1,823,003) | (4,560,185) | |
Proceeds from bank loans | 9,568,384 | 6,918,544 | 10,291,412 | |
Repayment of bank loans | (11,230,688) | (7,352,944) | (7,835,606) | |
Proceeds from (repayment of) loans from related parties, net | 98,474 | (378,833) | (1,175,971) | |
Proceeds from issuance of common stock and warrants | 9,055,232 | 0 | 0 | |
Net cash provided by (used in) continuing operations | 8,940,069 | (5,460,126) | (810,004) | |
Net cash provided by discontinued operations | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | 8,940,069 | (5,460,126) | (810,004) | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 1,704,662 | (530,288) | 390,992 | |
Net increase (decrease) in cash, restricted cash and cash equivalents | 24,693,327 | 2,776,184 | (3,749,642) | |
Cash, restricted cash and cash equivalents, beginning of year | 12,645,977 | 9,869,793 | 13,619,435 | $ 9,869,793 |
Cash, restricted cash and cash equivalents, end of year | 37,339,304 | 12,645,977 | 9,869,793 | $ 37,339,304 |
Supplemental disclosure information: | ||||
Income taxes paid | 436,566 | 1,105,876 | 1,044,480 | |
Interest paid | 308,690 | 439,869 | 608,048 | |
Supplemental non-cash activities: | ||||
Common shares issued for service | $ 33,812 | $ 0 | $ 243,000 |
Organization and nature of busi
Organization and nature of business | 12 Months Ended |
Dec. 31, 2020 | |
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 9, 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 selling electric vehicles and non-electric vehicles, as well as investment in mining exploration. Details of the subsidiaries of the Company and their principal business activities are set out below: Date of Place of % of Name of Entity Incorporation Incorporation Ownership Principal Activities Tantech Holdings Ltd (“Tantech” or “Tantech BVI”) November 9, 2010 BVI Parent Holding Company USCNHK Group Limited (“USCNHK”) October 17, 2008 Hong Kong 100% by the Parent Holding Company EAG International Vantage Capitals Limited (“Euroasia”) April 27,2015 Hong Kong 100% by the Parent Holding Company Tantech Holdings (Lishui) Co. Ltd. ("Lishui Tantech”) April 7, 2016 Lishui, Zhejiang Province, China 100% by USCNHK Holding Company Euroasia New Energy Automotive (Jiangsu) Co. Ltd. (“Euroasia New Energy”) October 24, 2017 Zhangjia Gang, Jiangsu Province, China 100% by Euroasia Holding Company Shanghai Jiamu Investment Management Co., Ltd (“Jiamu”) July 14, 2015 Shanghai, China 100% by Euroasia Holding Company Hangzhou Wangbo Investment Management Co., Ltd (“Wangbo”) February 2, 2016 Hangzhou, Zhejiang Province, China 100% by Jiamu via VIE arrangements Holding Company Hangzhou Jiyi Investment Management Co., Ltd (“Jiyi”) February 2, 2016 Hangzhou, Zhejiang Province, China 100% by Jiamu Holding Company Shangchi Automobile Co., Ltd. (“Shangchi Automobile”) Acquired on July 12, 2017 Zhangjia Gang, Jiangsu Province, China 51% by Wangbo and 19% by Jiyi Manufacturing and sale of specialty electric and non-electric vehicles and power batteries Shenzhen Yimao New Energy Sales Co., Ltd. (“Shenzhen Yimao”) November 13, 2018 Shenzhen, Guangdong Province, China 100% by Shangchi Automobile Electric vehicles sales Lishui Xincai Industrial Co., Ltd. (“Lishui Xincai”) December 14, 2017 Lishui, Zhejiang Province, China 100% by Lishui Tantech Holding Company Zhejiang Tantech Bamboo Charcoal Co., Ltd. (“Tantech Charcoal”) September 5, 2002 Lishui, Zhejiang Province, China 100% by Lishui Xincai Manufacturing and sale of various products made from bamboo and charcoal; trading business Lishui Jikang Energy Technology Co., Ltd. (“Jikang Energy”) January 2, 2020 Lishui, Zhejiang Province, China 100% by Lishui Xincai Holding Company Hangzhou Tanbo Tech Co., Ltd. (“Tanbo Tech”) December 8, 2015 Hangzhou, Zhejiang Province, China 100% by Lishui Xincai Exploring business opportunities outside Lishui area Zhejiang Tantech Bamboo Technology Co., Ltd. (“Tantech Bamboo”) December 31, 2005 Lishui, Zhejiang Province, China 100% by Jikang Energy Manufacturing and sale of various products made from bamboo Zhejiang Babiku Charcoal Co., Ltd. (“Tantech Babiku”) October 20, 2015 Lishui, Zhejiang Province, China — Discontinued in fiscal 2018 (See Note 5) Zhejiang Zhongzhu Tourism Development Co., Ltd. (“Lishui Zhongzhu”) November 18, 2015 Lishui, Zhejiang Province, China — Discontinued in fiscal 2018 (See Note 5) Zhejiang Tantech Energy Tech Co., Ltd. (“Tantech Energy”) September 24, 2008 Lishui, Zhejiang Province, China — Discontinued in fiscal 2019 (See Note 5) Zhejiang Shangchi New Energy Automobile Co., Ltd. (“Zhejiang Shangchi”) November 12, 2020 Lishui, Zhejiang Province, China 100% by Lishui Tantech Sales of automobiles Lishui Smart New Energy Automobile Co., Ltd. (“Lishui Smart”) November 16, 2020 Lishui, Zhejiang Province, China 100% by Lishui Tantech Research, development and manufacturing new energy automobiles 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 January 2, 2020, 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. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
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 Yimao 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 statement of comprehensive income from the date of acquisition. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation, such as reclassification of customer advance to due to related parties, presentation of discontinued operations due to disposition of Tantech Energy in fiscal 2019. These reclassifications had no effect on the reported revenues, net income (loss) and cash flows. 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. 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 at invoiced amount 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 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. Intangible assets Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at cost. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with finite useful lives are amortized using a straight-line method over the period of estimated useful life. 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. 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 Company believes impairment indicators are present. The Company 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 Company 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 Company 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 the income approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Company 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 Company 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. As of 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 Company 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. Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. 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, 2020 and 2019, the due to third parties balance amounted to $306,600 and $287,200, 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. 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 net realizable value 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, 2020 December 31, 2019 December 31, 2018 US$:RMB exchange rate Period End $ 0.1533 Period End $ 0.1436 Period End $ 0.1513 Average $ 0.1448 Average $ 0.1448 Average $ 0.1454 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, 2020, 2019 and 2018. 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, 2020 and 2019. 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. As of December 31, 2020 and 2019, the total number of registered and unregistered warrants outstanding was 6,557,635 and 1,078,045, respectively. For the years ended December 31, 2020, 2019 and 2018, no warrants were included in the diluted income (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. 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. 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. During the year ended December 31, 2020, the Company’s revenues for consumer product segment decreased approximately 36% as compared to the same period of last year, however, the sales for trading segment increased significantly for approximately 269% 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. 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 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 adopted this guidance in fiscal 2020 and this guidance did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company does not expect that the requirements of ASU 2019-12 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 Company’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 statements. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entity | |
Variable Interest Entity | Note 3 – Variable Interest Entity The VIE contractual arrangements Wangbo, Shangchi Automobile and its subsidiary, Shenzhen Yimao, 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. Wangbo owns 51% and Jiyi owns 19% of Shangchi Automobile respectively. A third party owns 30% of Shangchi automobile. 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 balance sheets of the Company as of December 31, 2020 and 2019 after elimination of intercompany balances: December 31, 2020 December 31, 2019 Current assets Cash and cash equivalents $ 206,893 $ 70,420 Restricted cash 220,109 205,520 Accounts receivable, net — 795,240 Prepaid taxes 1,045,027 894,051 Inventories, net 301,607 239,222 Advances to suppliers, net 333,010 93,241 Prepaid expenses and other receivables, net 37,104 73,378 Total Current Assets 2,143,750 2,371,072 Non-current assets Property, plant and equipment, net 1,157,803 1,139,398 Manufacturing rebate receivable 5,755,237 7,746,116 Intangible assets, net 462,279 12,764,272 Total Assets $ 9,519,069 $ 24,020,858 Current liabilities Bank acceptance notes payable $ 220,109 $ 205,520 Accounts payable 1,207,623 1,165,718 Customer deposits 381,623 113,657 Taxes payable 369 — Due to related parties 892,590 943,584 Accrued liabilities and other payables 350,928 442,280 Total Current Liabilities 3,053,242 2,870,759 Non-current liabilities Deferred tax liability — 1,784,875 Total Liabilities $ 3,053,242 $ 4,655,634 |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2020 | |
Liquidity | |
Liquidity | Note 4 – Liquidity For the years ended December 31, 2020 and 2019, the Company had a significant decrease in net income. In addition, the Company closed Tantech Babiku and Lishui 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 segment, the Company significantly cut its sales to supermarket customers because of long-aged accounts receivable from these supermarket customers. In addition, as a result of negative impact of COVID-19, the Company reduced its consumer product manufacturing activities in fiscal 2020. Meanwhile, the Electric Vehicle (the “EV”) segment 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 $9.1 million in November 2020, as well as the equity financing in September 2017 which resulted in net proceeds of $5.6 million, the Company had approximately $37.1 million cash on hand as of December 31, 2020. Although the Company maintains a positive working capital as of December 31, 2020 and generated positive cash flows from its operations for the years ended December 31, 2020 and 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 EV business. As of December 31, 2020 and 2019, the Company had a short-term loan balance of approximately $5.6 million and $6.9 million, respectively. In addition, the Company had bank acceptance notes payable balance of approximately $1.8 million and $0.2 million as of December 31, 2020 and 2019, 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 2021. The Company is also working closely with the local government to speed up the collection process of the outstanding government rebate balance in 2021. Although the Company is currently not generating net income from its EV segment, it has been focusing on reducing the costs and expenses and developing other non-rebate vehicles. During the year ended December 31, 2020, the Company established two subsidiaries to focus on developing and manufacturing of electric vehicles. The Company plans to fund this segment 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 agreed 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, 2020 | |
Discontinued operations | |
Discontinued operations | Note 5 – Discontinued operations 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. The aggregated financial results of the discontinued business are set forth below: Year ended For the period Year ended December 31, from January 1 to December 31, 2020 July 31, 2019 2018 Revenue $ — $ 3,803,430 $ 9,107,922 Cost of revenues — 4,048,640 9,116,707 Gross loss — (245,210) (8,785) Operating expenses — 629,525 3,164,918 (Reversal of) Bad debt provision — (1,144,417) (1,477,631) Income (loss) from operations — 269,682 (1,696,072) Other income, net — 797 1,779,439 Income before income taxes — 270,479 83,367 Income taxes — — — Income from discontinued operations, net of tax $ — $ 270,479 $ 83,367 |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable | |
Accounts receivable | Note 6 – Accounts receivable Accounts receivable consisted of the following: December 31, December 31, 2020 2019 Accounts receivable $ 38,110,487 $ 45,083,689 Allowance for doubtful accounts (3,699,890) (5,731,281) Accounts receivable, net $ 34,410,597 $ 39,352,408 The movement of allowance for doubtful accounts are as follows: Year ended Year ended December 31, December 31, 2020 2019 Balance at beginning of year $ 5,731,281 $ 4,682,592 Change of allowance for doubtful accounts (895,043) 1,286,997 Write off (1,523,489) — Translation adjustments 387,141 (238,308) Balance at end of year $ 3,699,890 $ 5,731,281 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2020 | |
Inventory | |
Inventory | Note 7 – Inventory Inventory consisted of the following: December 31, December 31, 2020 2019 Raw materials $ 489,750 $ 515,658 Finished products 53,223 79,269 Work in process 128,278 700 Total Inventory $ 671,251 $ 595,627 For the years ended December 31, 2020, 2019 and 2018, the Company recorded inventory markdown in the amounts of $92,064, $1,030,236 and $700,379, respectively. |
Advances to suppliers
Advances to suppliers | 12 Months Ended |
Dec. 31, 2020 | |
Advances to suppliers | |
Advances to suppliers | Note 8 – Advances to suppliers December 31, December 31, 2020 2019 Advances to suppliers $ 7,033,556 $ 14,596,906 Allowance for doubtful accounts (179,095) (1,517,017) Advances to suppliers, net 6,854,461 13,079,889 Less: Advances to suppliers, non-current — — Advances to suppliers, current $ 6,854,461 $ 13,079,889 The movement of allowance for doubtful accounts are as follows: Year ended Year ended December 31, December 31, 2020 2019 Balance at beginning of year $ 1,517,017 $ 1,426,769 Change of allowance for doubtful accounts (400,436) 162,859 Write off (1,039,958) — Translation adjustments 102,472 (72,611) Balance at end of year $ 179,095 $ 1,517,017 Advances to suppliers – non-current December 31, December 31, 2020 2019 Zhibo Jieli Special Battery Material Co., Ltd * $ — $ 430,800 Allowance for doubtful accounts — (430,800) Advances to suppliers – non-current, net $ — $ — * representing the prepayments made to acquire machinery. During the year ended December 31, 2020, the Company wrote off the prepayments made to Zhibo Jieli Special Battery Material Co., Ltd for acquiring the machinery. |
Manufacturing rebate receivable
Manufacturing rebate receivable | 12 Months Ended |
Dec. 31, 2020 | |
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, 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. Shangchi Automobile did not make sales of electric vehicles during the years ended December 31, 2020 and 2019, respectively, and recognized $Nil manufacturing rebate income as part of revenue for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the manufacturing rebate receivable was $5,755,237 (RMB 37,542,315), including $2,023,560 (RMB 13,200,000) of manufacturing rebate receivable related to qualified electric vehicles sold in fiscal 2016, $3,051,676 (RMB 19,906,560) of manufacturing rebate receivable related to qualified electric vehicles sold in fiscal 2017 and $680,001 (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 due to the recent slower processing of rebates. The Company is currently working closely with the local government to speed up the collection process of the outstanding government rebate balance. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Building $ 5,631,049 $ 5,199,348 Machinery and Production equipment 1,311,624 1,901,886 Electronic equipment 193,912 240,606 Office equipment 38,524 55,961 Automobiles 545,008 501,156 Construction in progress 133,339 117,014 Subtotal 7,853,456 8,015,971 Less: Accumulated depreciation (5,375,544) (5,315,937) Property, plant and equipment, net $ 2,477,912 $ 2,700,034 Depreciation expense was $436,427, $703,113 and $1,049,274 for the years ended December 31, 2020, 2019 and 2018, respectively, among which $436,427, $462,639 and $628,144 were for continuing operations, respectively. As of December 31, 2020 and 2019, building with net book value of $895,742 (all from continuing operations) and $966,201 (all from continuing operations), respectively, were pledged as collateral for bank loans (Note 12). |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets, net | |
Intangible assets, net | Note 11 – Intangible assets, net December 31, December 31, 2020 2019 Software $ 25,957 $ 24,314 Electric vehicle manufacturing license** — 11,899,171 Land use rights* 307,241 287,800 Patents** 4,599,000 4,308,000 Subtotal 4,932,198 16,519,285 Less: Accumulated amortization (4,268,165) (3,560,268) Intangible assets, net $ 664,033 $ 12,959,017 *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, 2020 and 2019, land use rights with net book value of $201,755 (all from continuing operations) and $194,745 (all from continuing operations), respectively, were pledged as collateral for bank loans (Note 12). ** Electric vehicle manufacturing license and patents on specialty electric vehicles resulted from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors). During the year 2020, due to the impact of COVID-19, Shangchi Automobile was unable to maintain normal operations and all sales and marketing events were disrupted due to travel restrictions and other government regulations. While the spread of COVID-19 has gradually been under control in China, it could adversely affect the Company ’s business for the future. Shangchi Automobile has no immediate business plan to start manufacturing the electric vehicles. Management determined that the electric vehicle production license should be impaired. The Company recorded an impairment of $11,998,606 for the year ended December 31, 2020. For the year ended December 31, 2019, the Company recorded an impairment of $1,103,332 because the carrying amount was not recoverable and it exceeded its fair value based on the management's assessment. For the years ended December 31, 2018, the Company did not record any impairment for the electric vehicle manufacturing license. Amortization expense for intangible assets totaled $441,489, $459,898 and $602,959 for the years ended December 31, 2020, 2019 and 2018, respectively, among which $441,489, $441,489 and $443,318 were for continuing operations, respectively. |
Short-term bank loans
Short-term bank loans | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Loan payable to Bank of China Lishui Branch $ 2,958,690 $ 4,132,808 Loan payable to Shanghai Pudong Development (“SPD”) Bank Lishui Branch 2,606,100 2,728,400 Total $ 5,564,790 $ 6,861,208 On July 9, 2020, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $ 2,958,690 (RMB 19,300,000) for one year with annual interest rate of 4.85%. The purpose of the loan was for purchasing bamboo charcoal materials. The loan was collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $4.0 million (RMB25,960,000). The loan was also guaranteed by two related parties, Lishui Jiuanju Commercial Trade Co., Ltd. (“LJC”), and Forasen Group Co., Ltd., one third party, Zhejiang Meifeng Tea Industry Co., Ltd., and three individual related parties, Zhengyu Wang, Chairman of the Board and previous CEO of the Company, his wife, Yefang Zhang, and Aihong Wang, his relative. On April 27, 2020, Tantech Bamboo entered into a short-term loan agreement with SPD Bank (Lishui Branch) to borrow $ 2,912,700 (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 $4.5 million (RMB29,250,000). The Company repaid $306,600 (RMB2.0 million) as required in fiscal year 2020. The Company further repaid $153,300 (or RMB1.0 million) in February 2021 and $2,452,800 (RMB16 million) in April 2021. On January 6, 2020, Tantech Bamboo entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $2,725,674 (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 $4.0 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 LJC, a related party, the president of which was also the present CEO and previous COO of the Company. The Company repaid the loan upon maturity. On January 6, 2020, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $1,533,000 (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 $1.5 million (RMB 10 million). The Company repaid the loan upon maturity. As of December 31, 2020, total bank loans payable amounted to $ 5,564,790. 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 LJC, a related party, 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 SPD 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. For the years ended December 31, 2020, 2019 and 2018, the interest expense related to bank loans was $300,125, $421,646 and $378,857, respectively. |
Bank acceptance notes payable
Bank acceptance notes payable | 12 Months Ended |
Dec. 31, 2020 | |
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 up to one year. These notes are negotiable documents issued by or guaranteed 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, 2020 and 2019, deposits of $220,109 and $205,520 were reported as restricted cash on balance sheet. Bank acceptance notes payable consisted of the following: December 31, December 31, 2020 2019 Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch (a) $ — $ 205,520 Bank acceptance notes payable issued by Zhang Jiagang Rural Commercial Bank (b) 220,109 — Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch (c) 1,533,000 — Total $ 1,753,109 $ 205,520 (a) Bank acceptance notes payable of $205,520 (RMB1,431,200) issued by SPD 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. These notes were fully paid upon maturity and restricted deposit was also released upon the payments. (b) Bank acceptance notes payable of $220,109 (RMB1,435,805) issued by Zhang Jiagang Rural Commercial Bank with due dates from February 10, 2021 to March 29, 2021. 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. These notes were fully paid upon maturity and restricted deposit was also released upon the payments. (c) Commercial acceptance notes payable of $1,533,000 (RMB10,000,000) issued by Tantech Bamboo and guaranteed by SPD Bank Lishui Branch with due date on April 19, 2021. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order for the bank to make guarantee for the notes and ensure the availability for future credit. A related party, Zhejiang Xinsen Industrial Co., Ltd. (“Zhejiang Xinsen”), made collateral for this commercial acceptance notes payable on behalf of Tantech Bamboo with a one-year term deposit of approximately $1,533,000 (RMB10,000,000), which has a due date of April 21, 2021. The note was fully paid upon maturity by Zhejiang Xinsen on behalf of Tantech Bamboo. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Dr. Henglong Chen and his affiliates * $ 881,442 $ 932,616 Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company until December 6, 2019 1,058,188 864,623 Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates 79,457 41,364 Total $ 2,019,087 $ 1,838,603 * 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, 2020 and 2019, the amount due to Dr. Henglong Chen and his affiliates were $881,442 and $932,616, respectively. As of December 31, 2020 and 2019, the Company also borrowed $1,058,188 and $864,623 from Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company, for working capital purpose. Mr. Wangfeng Yan, the CEO of the Company, and his affiliates, also made advances to the Company. The balance due to Mr. Wangfeng Yan and his affiliates was $79,457 and $41,364 as of December 31, 2020 and 2019, respectively. All balances of due to the related parties were unsecured, interest-free and due upon demand. The Company’s major shareholder Mr. Zhengyu Wang, his wife Ms. Yefang Zhang and his relative Ms. Aihong Wang, as well as related party entities controlled by Mr. Wang, provided guarantees to the Company’s bank loans (Note 12). Advance to vendor – related party During the year ended December 31, 2020, the Company paid $3,089,690 (RMB 20,154,532) to LJC, a company controlled by our CEO, Mr. Wangfeng Yan, to purchase bamboo charcoal materials. As of December 31, 2020, the Company received materials of $1,556,690 (RMB 10,154,532 with tax), the remaining advance of $1,533,000 (RMB 10 million) was returned by the vendor in March 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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 SPD Bank Lishui Branch on behalf of Forasen Group for maximum amount of approximately $8.7 million (RMB 57,070,000) by pledging certain land and building as the collateral for the loan and notes. The guarantee expired on July 23, 2020. In July 2020, Tantech Bamboo provided a guarantee with Bank of China Lishui Branch for Zhejiang Forasen Food Co., Ltd., (“Forasen Food”) for maximum amount of approximately $1.5 million (RMB10 million) by pledging certain land and building as the collateral for the loan and notes. The guarantee will expire on July 8, 2023. 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 August 9, 2020. The annual rent under operating lease agreement was approximately $144,800 (RMB 1 million). On August 10, 2020, Shangchi Automobile renewed the operating lease agreement with the landlord for one year until August 9, 2021 with annual rent of approximately $144,800 (RMB 1 million). Shangchi Automobile was granted 2-month rent-free period due to COVID-19 impact in fiscal 2020. Shenzhen Yimao leased office space under operating leases for one year from November 12, 2018 to November 11, 2019 with annual rent of approximately $13,600 (RMB93,600). The lease agreement was renewed for another year until November 11, 2020. On November 20, 2020, Shenzhen Yimao signed a new operating lease agreement for office space for one year from November 23, 2020 to November 22, 2021 with annual rent of approximately $6,400 (RMB 44,352). 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 $179,400 (RMB1,238,784). In December 2020, the Company renewed the above agreement for another year to December 31, 2021. The rental expense for the years ended December 31, 2020 ,2019 and 2018 were $299,562, $167,526 and $139,507, 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 $4.5 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 $13.8 million (RMB 90 million), and all the co-guarantors including Tantech Bamboo jointly and severally guarantee the payment obligation regarding the $13.8 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 $5.3 million (RMB 34.86 million) and approximately $8.5 million (RMB 55.14 million) remains unpaid. Accordingly, in June 2020, LJC, a company controlled by our CEO, Mr. Wangfeng Yan, issued to Tantech Bamboo an anti-guaranty guaranty to guarantee Tantech Bamboo’s potential payment obligation, and a bank statement of approximately $10.7 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, 2020 | |
Stockholders' equity | |
Stockholders' equity | Note 16 – Stockholders’ equity On September 19, 2018, the Company issued 150,000 common shares 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. On March 23, 2020, the Company issued 35,592 common shares 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. On November 24, 2020, the Company completed an offering of 6,060,608 common shares at an offering price of $1.65 per share. The gross proceeds were approximately $10 million before deducting placement agent’s commission and other offering expenses, resulting in net proceeds of approximately $9.1 million. As of December 31, 2020 and 2019, the Company had an aggregate of 35,894,097 and 28,853,242 common shares outstanding, respectively. September 2017 Offering Warrants In connection with the offering closed in September 2017, the Company registered and issued warrants to purchase an aggregate of 1,078,045 common shares, consisting of 945,654 common shares exercisable underlying investor warrants and 132,391 common shares exercisable underlying placement agent warrants. All warrants carry a term of 5 years. The initial exercise price of the investor warrants and the placement agent warrants was $4.25 per share and $4.675 per share, respectively. 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. During the year ended December 31, 2020, 944,655 common share were issued upon excise of investor warrants at $0.001 per share. The exercise price of such warrants was reduced from $4.25 per share to $0.001 per share by virtue of the Company’s entry into a securities purchase agreement on November 20, 2020, November 2020 Offering Warrants In connection with and upon closing of the offering on November 24, 2020, the Company issued registered warrants to purchase up to 2,754,820 common shares and unregistered warrants to purchase up to 3,305,788 common shares. Such registered and unregistered warrants are immediately exercisable, expire five years from the date of issuance and have an exercise price of $1.81 per share. The placement agent also received unregistered warrants in connection with this offering exercisable for up to 363,637 common shares at $1.815 per share, exercisable between May 24, 2021 to November 24, 2023. Management determined that these warrants meet the requirements for equity classification under ASC 815-40 because they are indexed to its own stock. The warrants were recorded at their fair value on the date of issuance as a component of shareholders’ equity. As of December 31, 2020, the total number of common shares underlying registered and unregistered warrants outstanding was 6,557,635. These warrants have weighted average of remaining life of 4.73 years and weighted average exercise price of $1.87. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interests | |
Noncontrolling Interests | Note 17 – Noncontrolling Interests A reconciliation of non-controlling interest as of December 31, 2020 and 2019 is as follows: December 31, December 31, 2020 2019 Beginning Balance $ 4,346,216 $ 7,918,096 Proportionate shares of net loss (3,501,808) (3,601,728) Foreign currency translation adjustment (205,562) 29,848 Total $ 638,846 $ 4,346,216 As of December 31, 2020 and 2019, 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 Yimao. |
Long term investments
Long term investments | 12 Months Ended |
Dec. 31, 2020 | |
Long term investments | |
Long term investments | Note 18 – Long term investments On January 10, 2018, the Company invested approximately $18.4 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 central area 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 $7.1 million (RMB 46.32 million). The consideration equals 18% of RMB 257.35 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. 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 257.35 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 mining permit renewal process has been delayed. Fuquan Chengwang received the renewed mining permit in March 2021, and expiration date is March 2024. The mining permit provides it the right to mine a 0.2607-square-kilometer basalt quarry in Fuquan City, Guizhou Province, China. 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. 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 $7.13 million (RMB 46.5 million) to exchange 18% of the interest of Fuquan Chengwang. After the transaction, the Company’s indirect interest in Fuquan Chengwang was diluted from 18% to 14.76% 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, 2020, 2019 and 2018 the Company did not recognize any impairment losses for the long-term investments. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Taxes | Note 19 – Taxes Prepaid taxes Prepaid taxes as of December 31, 2020 and 2019 consist of the following: December 31, 2020 December 31, 2019 Prepaid corporation income tax $ — $ 356,121 Prepaid value-added tax 1,046,667 2,040,228 Total $ 1,046,667 $ 2,396,349 Taxes Payable Taxes payable as of December 31, 2020 and 2019 consist of the following: December 31, December 31, 2020 2019 Corporation income tax payable $ 415,488 $ — Other tax payable 155,866 102,704 Total $ 571,354 $ 102,704 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 Bamboo did not renew the high-tech certificate for fiscal 2020 and subject to corporate tax rate of 25% for the year 2020. Shangchi Automobile was approved by local government as a high –tech company on December 7, 2017 and renewed on December 2, 2020. Shangchi Automobile was subject to income tax rate of 15%. Tantech Bamboo, Lishui Tantech, Shenzhen Yimao, Jiamu, Jiyi, Wangbo, Tantech Charcoal, Zhejiang Shangchi, Lishui Smart and Tanbo Tech are all subject to income tax at unified rate of 25% for the year ended December 31, 2020. The impact of the tax holidays noted above decreased foreign taxes by $nil, $381,033 and $158,424 for the years ended December 31, 2020, 2019 and 2018, respectively. The benefit of the tax holidays on net income (loss) per share (basic and diluted) was $nil, $0.01 and $0.01 for the years ended December 31, 2020, 2019 and 2018, respectively. The following table reconciles PRC statutory rates to the Company’s effective tax rates for the years ended December 31, 2020, 2019 and 2018: Years ended December 31, 2020 2019 2018 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (14) % (11) % (8) % Permanent difference and others (5) % 4 % (1) % Changes of deferred tax assets valuation allowances 0 % (22) % 35 % Total 6 % (4) % 51 % The income tax expense (credit) consisted of the following: Years ended December 31, 2020 2019 2018 Current $ 1,188,136 $ 529,162 $ 1,031,158 Deferred (1,799,791) (165,500) — Total $ (611,655) $ 363,662 $ 1,031,158 Significant components of deferred tax assets and liabilities are as follows: December 31, December 31, 2020 2019 Deferred tax assets: Allowance for doubtful accounts and other reserves and impairments $ 4,464,601 $ 4,426,306 Valuation allowance (4,464,601) (4,426,306) Total $ — $ — Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 1,905,442 $ 1,949,004 Impairment of intangible assets acquired through acquisition (1,905,442) (164,129) Total $ — $ 1,784,875 At December 31, 2020 and 2019, 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, 2020 and 2019, the valuation allowance was $4,464,601 and $4,426,306, respectively. The Company’s management reviews this valuation allowance periodically and makes adjustments as necessary. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2020 | |
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. The EV segment 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, 2020, 2019 and 2018, respectively. Consumer product Trading EV Total 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Revenue from external customers $ 29,418,654 $ 45,821,163 $ 22,388,827 $ 12,481,023 $ 3,379,705 $ 3,776,842 $ 383,993 $ 29,702 $ 3,395,730 $ 42,283,670 $ 49,230,570 $ 29,561,399 Revenue from inter segment (2,926,739) (1,005,029) (7,790,931) — — — — — — (2,926,739) (1,005,029) (7,790,931) Cost of revenue 25,598,821 40,138,663 14,347,896 11,813,003 2,270,766 3,290,089 395,473 843,641 3,894,334 37,807,297 43,253,070 21,532,319 Gross profit 3,819,833 5,682,500 8,040,931 668,020 1,108,939 486,753 (11,480) (813,939) (498,604) 4,476,373 5,977,500 8,029,080 Interest expenses 206,365 355,400 292,996 93,760 71,979 126,030 — 15,883 207,317 300,125 443,262 626,343 Depreciation & amortization 44,601 276,170 420,301 — — — 633,315 627,958 526,725 877,916 904,128 947,026 Capital expenditure 2,489 6,787,833 13,512,820 — — 209,721 142,317 12,106 792,981 144,806 6,799,939 14,515,522 Segment assets 29,385,843 81,944,714 84,899,512 77,389,793 9,487,143 7,777,390 9,519,609 24,018,920 41,517,112 116,295,245 115,450,777 134,194,014 Segment profit $ 644,981 $ 2,430,387 $ 4,135,969 $ 1,571,390 $ (83,910) $ (134,511) $ (12,238,599) $ (12,005,760) $ (3,004,827) $ (10,022,228) $ (9,659,283) $ 996,631 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 2020 2019 2018 Revenue from China $ 42,283,670 $ 49,230,570 $ 29,561,399 Revenue directly from foreign countries — — — Total Revenue $ 42,283,670 $ 49,230,570 $ 29,561,399 |
Major customers and suppliers
Major customers and suppliers | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, five major customers accounted for approximately 28%, 20%, 14%, 12% and 10% of the Company’s total sales, respectively. 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. As of December 31, 2020, four customers accounted for approximately 32%, 22%, 21% and 20% of the Company’s accounts receivable balance. As of December 31, 2019, five customers accounted for approximately 30%, 18%, 18%, 16% and 16% 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, 2020, two major suppliers accounted for approximately 53% and 17% of the Company’s total purchases, respectively. 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. |
Subsequent event
Subsequent event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent event | |
Subsequent event | Note 22 – Subsequent event On March 23, 2021, Mr. Hengwei Chen filed a lawsuit against Shangchi Automobile (formerly known as Suzhou E-Motor) and the Company for a debt dispute of total RMB 11.35 million (approximately $1.7 million). Mr. Chen was the former general manager of Shangchi Automobile before the Company acquired Shangchi Automobile in 2017. The Company objected the claim and the case is still under investigation by the court as of the date of this filing. The Company estimates that no liability to be recorded by the Company. On April 7, 2021, Tantech Bamboo entered into a short-term loan agreement with SPD Bank (Lishui Branch) to borrow approximately $2.5 million (RMB 16 million) for one year with fixed annual interest rate of 5.65%. 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 $4.5 million (RMB29,250,000). |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 Yimao 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 statement of comprehensive income from the date of acquisition. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation, such as reclassification of customer advance to due to related parties, presentation of discontinued operations due to disposition of Tantech Energy in fiscal 2019. These reclassifications had no effect on the reported revenues, net income (loss) and cash flows. |
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. |
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 at invoiced amount 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 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. |
Intangible assets | Intangible assets Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at cost. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with finite useful lives are amortized using a straight-line method over the period of estimated useful life. 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. |
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 Company believes impairment indicators are present. The Company 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 Company 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 Company 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 the income approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Company 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 Company 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. As of 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 Company 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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. |
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, 2020 and 2019, the due to third parties balance amounted to $306,600 and $287,200, 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. 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 net realizable value 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, 2020 December 31, 2019 December 31, 2018 US$:RMB exchange rate Period End $ 0.1533 Period End $ 0.1436 Period End $ 0.1513 Average $ 0.1448 Average $ 0.1448 Average $ 0.1454 |
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, 2020, 2019 and 2018. 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, 2020 and 2019. 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. As of December 31, 2020 and 2019, the total number of registered and unregistered warrants outstanding was 6,557,635 and 1,078,045, respectively. For the years ended December 31, 2020, 2019 and 2018, no warrants were included in the diluted income (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. |
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. |
COVID-19 | 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. During the year ended December 31, 2020, the Company’s revenues for consumer product segment decreased approximately 36% as compared to the same period of last year, however, the sales for trading segment increased significantly for approximately 269% 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. |
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 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 adopted this guidance in fiscal 2020 and this guidance did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company does not expect that the requirements of ASU 2019-12 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 Company’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 statements. |
Organization and nature of bu_2
Organization and nature of business (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization and nature of business | |
Schedule of details of subsidiaries of Company and principal business activities | Date of Place of % of Name of Entity Incorporation Incorporation Ownership Principal Activities Tantech Holdings Ltd (“Tantech” or “Tantech BVI”) November 9, 2010 BVI Parent Holding Company USCNHK Group Limited (“USCNHK”) October 17, 2008 Hong Kong 100% by the Parent Holding Company EAG International Vantage Capitals Limited (“Euroasia”) April 27,2015 Hong Kong 100% by the Parent Holding Company Tantech Holdings (Lishui) Co. Ltd. ("Lishui Tantech”) April 7, 2016 Lishui, Zhejiang Province, China 100% by USCNHK Holding Company Euroasia New Energy Automotive (Jiangsu) Co. Ltd. (“Euroasia New Energy”) October 24, 2017 Zhangjia Gang, Jiangsu Province, China 100% by Euroasia Holding Company Shanghai Jiamu Investment Management Co., Ltd (“Jiamu”) July 14, 2015 Shanghai, China 100% by Euroasia Holding Company Hangzhou Wangbo Investment Management Co., Ltd (“Wangbo”) February 2, 2016 Hangzhou, Zhejiang Province, China 100% by Jiamu via VIE arrangements Holding Company Hangzhou Jiyi Investment Management Co., Ltd (“Jiyi”) February 2, 2016 Hangzhou, Zhejiang Province, China 100% by Jiamu Holding Company Shangchi Automobile Co., Ltd. (“Shangchi Automobile”) Acquired on July 12, 2017 Zhangjia Gang, Jiangsu Province, China 51% by Wangbo and 19% by Jiyi Manufacturing and sale of specialty electric and non-electric vehicles and power batteries Shenzhen Yimao New Energy Sales Co., Ltd. (“Shenzhen Yimao”) November 13, 2018 Shenzhen, Guangdong Province, China 100% by Shangchi Automobile Electric vehicles sales Lishui Xincai Industrial Co., Ltd. (“Lishui Xincai”) December 14, 2017 Lishui, Zhejiang Province, China 100% by Lishui Tantech Holding Company Zhejiang Tantech Bamboo Charcoal Co., Ltd. (“Tantech Charcoal”) September 5, 2002 Lishui, Zhejiang Province, China 100% by Lishui Xincai Manufacturing and sale of various products made from bamboo and charcoal; trading business Lishui Jikang Energy Technology Co., Ltd. (“Jikang Energy”) January 2, 2020 Lishui, Zhejiang Province, China 100% by Lishui Xincai Holding Company Hangzhou Tanbo Tech Co., Ltd. (“Tanbo Tech”) December 8, 2015 Hangzhou, Zhejiang Province, China 100% by Lishui Xincai Exploring business opportunities outside Lishui area Zhejiang Tantech Bamboo Technology Co., Ltd. (“Tantech Bamboo”) December 31, 2005 Lishui, Zhejiang Province, China 100% by Jikang Energy Manufacturing and sale of various products made from bamboo Zhejiang Babiku Charcoal Co., Ltd. (“Tantech Babiku”) October 20, 2015 Lishui, Zhejiang Province, China — Discontinued in fiscal 2018 (See Note 5) Zhejiang Zhongzhu Tourism Development Co., Ltd. (“Lishui Zhongzhu”) November 18, 2015 Lishui, Zhejiang Province, China — Discontinued in fiscal 2018 (See Note 5) Zhejiang Tantech Energy Tech Co., Ltd. (“Tantech Energy”) September 24, 2008 Lishui, Zhejiang Province, China — Discontinued in fiscal 2019 (See Note 5) Zhejiang Shangchi New Energy Automobile Co., Ltd. (“Zhejiang Shangchi”) November 12, 2020 Lishui, Zhejiang Province, China 100% by Lishui Tantech Sales of automobiles Lishui Smart New Energy Automobile Co., Ltd. (“Lishui Smart”) November 16, 2020 Lishui, Zhejiang Province, China 100% by Lishui Tantech Research, development and manufacturing new energy automobiles |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 intangible assets | 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, 2020 December 31, 2019 December 31, 2018 US$:RMB exchange rate Period End $ 0.1533 Period End $ 0.1436 Period End $ 0.1513 Average $ 0.1448 Average $ 0.1448 Average $ 0.1454 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entity | |
Schedule of variable interest entities | The following assets and liabilities of the consolidated VIE were included in the accompanying consolidated balance sheets of the Company as of December 31, 2020 and 2019 after elimination of intercompany balances: December 31, 2020 December 31, 2019 Current assets Cash and cash equivalents $ 206,893 $ 70,420 Restricted cash 220,109 205,520 Accounts receivable, net — 795,240 Prepaid taxes 1,045,027 894,051 Inventories, net 301,607 239,222 Advances to suppliers, net 333,010 93,241 Prepaid expenses and other receivables, net 37,104 73,378 Total Current Assets 2,143,750 2,371,072 Non-current assets Property, plant and equipment, net 1,157,803 1,139,398 Manufacturing rebate receivable 5,755,237 7,746,116 Intangible assets, net 462,279 12,764,272 Total Assets $ 9,519,069 $ 24,020,858 Current liabilities Bank acceptance notes payable $ 220,109 $ 205,520 Accounts payable 1,207,623 1,165,718 Customer deposits 381,623 113,657 Taxes payable 369 — Due to related parties 892,590 943,584 Accrued liabilities and other payables 350,928 442,280 Total Current Liabilities 3,053,242 2,870,759 Non-current liabilities Deferred tax liability — 1,784,875 Total Liabilities $ 3,053,242 $ 4,655,634 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued operations | |
Schedule of aggregated financial results of the discontinued business | The aggregated financial results of the discontinued business are set forth below: Year ended For the period Year ended December 31, from January 1 to December 31, 2020 July 31, 2019 2018 Revenue $ — $ 3,803,430 $ 9,107,922 Cost of revenues — 4,048,640 9,116,707 Gross loss — (245,210) (8,785) Operating expenses — 629,525 3,164,918 (Reversal of) Bad debt provision — (1,144,417) (1,477,631) Income (loss) from operations — 269,682 (1,696,072) Other income, net — 797 1,779,439 Income before income taxes — 270,479 83,367 Income taxes — — — Income from discontinued operations, net of tax $ — $ 270,479 $ 83,367 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of accounts receivable | Accounts receivable consisted of the following: December 31, December 31, 2020 2019 Accounts receivable $ 38,110,487 $ 45,083,689 Allowance for doubtful accounts (3,699,890) (5,731,281) Accounts receivable, net $ 34,410,597 $ 39,352,408 |
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: Year ended Year ended December 31, December 31, 2020 2019 Balance at beginning of year $ 5,731,281 $ 4,682,592 Change of allowance for doubtful accounts (895,043) 1,286,997 Write off (1,523,489) — Translation adjustments 387,141 (238,308) Balance at end of year $ 3,699,890 $ 5,731,281 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory | |
Schedule of inventory | December 31, December 31, 2020 2019 Raw materials $ 489,750 $ 515,658 Finished products 53,223 79,269 Work in process 128,278 700 Total Inventory $ 671,251 $ 595,627 |
Advances to suppliers (Tables)
Advances to suppliers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Advances to suppliers [Line Items] | |
Schedule of advances to suppliers | December 31, December 31, 2020 2019 Advances to suppliers $ 7,033,556 $ 14,596,906 Allowance for doubtful accounts (179,095) (1,517,017) Advances to suppliers, net 6,854,461 13,079,889 Less: Advances to suppliers, non-current — — Advances to suppliers, current $ 6,854,461 $ 13,079,889 |
Schedule of advances to suppliers - non-current | December 31, December 31, 2020 2019 Zhibo Jieli Special Battery Material Co., Ltd * $ — $ 430,800 Allowance for doubtful accounts — (430,800) 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 | Year ended Year ended December 31, December 31, 2020 2019 Balance at beginning of year $ 1,517,017 $ 1,426,769 Change of allowance for doubtful accounts (400,436) 162,859 Write off (1,039,958) — Translation adjustments 102,472 (72,611) Balance at end of year $ 179,095 $ 1,517,017 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment, net | |
Schedule of property, plant and equipment | December 31, December 31, 2020 2019 Building $ 5,631,049 $ 5,199,348 Machinery and Production equipment 1,311,624 1,901,886 Electronic equipment 193,912 240,606 Office equipment 38,524 55,961 Automobiles 545,008 501,156 Construction in progress 133,339 117,014 Subtotal 7,853,456 8,015,971 Less: Accumulated depreciation (5,375,544) (5,315,937) Property, plant and equipment, net $ 2,477,912 $ 2,700,034 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets, net | |
Schedule of intangible assets, net | December 31, December 31, 2020 2019 Software $ 25,957 $ 24,314 Electric vehicle manufacturing license** — 11,899,171 Land use rights* 307,241 287,800 Patents** 4,599,000 4,308,000 Subtotal 4,932,198 16,519,285 Less: Accumulated amortization (4,268,165) (3,560,268) Intangible assets, net $ 664,033 $ 12,959,017 *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, 2020 and 2019, land use rights with net book value of $201,755 (all from continuing operations) and $194,745 (all from continuing operations), respectively, were pledged as collateral for bank loans (Note 12). ** Electric vehicle manufacturing license and patents on specialty electric vehicles resulted from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors). During the year 2020, due to the impact of COVID-19, Shangchi Automobile was unable to maintain normal operations and all sales and marketing events were disrupted due to travel restrictions and other government regulations. While the spread of COVID-19 has gradually been under control in China, it could adversely affect the Company ’s business for the future. Shangchi Automobile has no immediate business plan to start manufacturing the electric vehicles. Management determined that the electric vehicle production license should be impaired. The Company recorded an impairment of $11,998,606 for the year ended December 31, 2020. For the year ended December 31, 2019, the Company recorded an impairment of $1,103,332 because the carrying amount was not recoverable and it exceeded its fair value based on the management's assessment. For the years ended December 31, 2018, the Company did not record any impairment for the electric vehicle manufacturing license. |
Short-term bank loans (Tables)
Short-term bank loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Loan payable to Bank of China Lishui Branch $ 2,958,690 $ 4,132,808 Loan payable to Shanghai Pudong Development (“SPD”) Bank Lishui Branch 2,606,100 2,728,400 Total $ 5,564,790 $ 6,861,208 |
Bank acceptance notes payable (
Bank acceptance notes payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Bank acceptance notes payable | |
Schedule of Bank acceptance notes payable | Bank acceptance notes payable consisted of the following: December 31, December 31, 2020 2019 Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch (a) $ — $ 205,520 Bank acceptance notes payable issued by Zhang Jiagang Rural Commercial Bank (b) 220,109 — Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch (c) 1,533,000 — Total $ 1,753,109 $ 205,520 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Balances and Transactions | |
Schedule of balances due to related parties | December 31, December 31, 2020 2019 Dr. Henglong Chen and his affiliates * $ 881,442 $ 932,616 Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company until December 6, 2019 1,058,188 864,623 Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates 79,457 41,364 Total $ 2,019,087 $ 1,838,603 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interests | |
Schedule of reconciliation of non-controlling interest | December 31, December 31, 2020 2019 Beginning Balance $ 4,346,216 $ 7,918,096 Proportionate shares of net loss (3,501,808) (3,601,728) Foreign currency translation adjustment (205,562) 29,848 Total $ 638,846 $ 4,346,216 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Schedule of prepaid taxes | December 31, 2020 December 31, 2019 Prepaid corporation income tax $ — $ 356,121 Prepaid value-added tax 1,046,667 2,040,228 Total $ 1,046,667 $ 2,396,349 |
Schedule of taxes payable | December 31, December 31, 2020 2019 Corporation income tax payable $ 415,488 $ — Other tax payable 155,866 102,704 Total $ 571,354 $ 102,704 |
Schedule of effective tax rates reconciliation | Years ended December 31, 2020 2019 2018 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (14) % (11) % (8) % Permanent difference and others (5) % 4 % (1) % Changes of deferred tax assets valuation allowances 0 % (22) % 35 % Total 6 % (4) % 51 % |
Schedule of provision for income | Years ended December 31, 2020 2019 2018 Current $ 1,188,136 $ 529,162 $ 1,031,158 Deferred (1,799,791) (165,500) — Total $ (611,655) $ 363,662 $ 1,031,158 |
Schedule of components of deferred tax assets and liabilities | December 31, December 31, 2020 2019 Deferred tax assets: Allowance for doubtful accounts and other reserves and impairments $ 4,464,601 $ 4,426,306 Valuation allowance (4,464,601) (4,426,306) Total $ — $ — Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 1,905,442 $ 1,949,004 Impairment of intangible assets acquired through acquisition (1,905,442) (164,129) Total $ — $ 1,784,875 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment information | |
Schedule of information by segment | Consumer product Trading EV Total 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Revenue from external customers $ 29,418,654 $ 45,821,163 $ 22,388,827 $ 12,481,023 $ 3,379,705 $ 3,776,842 $ 383,993 $ 29,702 $ 3,395,730 $ 42,283,670 $ 49,230,570 $ 29,561,399 Revenue from inter segment (2,926,739) (1,005,029) (7,790,931) — — — — — — (2,926,739) (1,005,029) (7,790,931) Cost of revenue 25,598,821 40,138,663 14,347,896 11,813,003 2,270,766 3,290,089 395,473 843,641 3,894,334 37,807,297 43,253,070 21,532,319 Gross profit 3,819,833 5,682,500 8,040,931 668,020 1,108,939 486,753 (11,480) (813,939) (498,604) 4,476,373 5,977,500 8,029,080 Interest expenses 206,365 355,400 292,996 93,760 71,979 126,030 — 15,883 207,317 300,125 443,262 626,343 Depreciation & amortization 44,601 276,170 420,301 — — — 633,315 627,958 526,725 877,916 904,128 947,026 Capital expenditure 2,489 6,787,833 13,512,820 — — 209,721 142,317 12,106 792,981 144,806 6,799,939 14,515,522 Segment assets 29,385,843 81,944,714 84,899,512 77,389,793 9,487,143 7,777,390 9,519,609 24,018,920 41,517,112 116,295,245 115,450,777 134,194,014 Segment profit $ 644,981 $ 2,430,387 $ 4,135,969 $ 1,571,390 $ (83,910) $ (134,511) $ (12,238,599) $ (12,005,760) $ (3,004,827) $ (10,022,228) $ (9,659,283) $ 996,631 |
Schedule of long-lived assets, by geographic information about the revenues | Years ended December 31 2020 2019 2018 Revenue from China $ 42,283,670 $ 49,230,570 $ 29,561,399 Revenue directly from foreign countries — — — Total Revenue $ 42,283,670 $ 49,230,570 $ 29,561,399 |
Organization and nature of bu_3
Organization and nature of business (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Jan. 05, 2020 |
Ownership (percentage) | 100.00% | |
Lishui Xincai | Jikang Energy | ||
Authorized share capital value | ¥ 5 |
Organization and nature of bu_4
Organization and nature of business - Details of Subsidiaries of Company and Principal Business Activities (Details) | Dec. 31, 2020 |
USCNHK | |
% of Ownership | 100.00% |
EAG or Euroasia | |
% of Ownership | 100.00% |
Euroasia New Energy | Euroasia | |
% of Ownership | 100.00% |
Jiamu | Euroasia | |
% of Ownership | 100.00% |
USCNHK | Lishui Tantech | |
% of Ownership | 100.00% |
Jiamu | Wangbo | |
% of Ownership | 100.00% |
Jiamu | Jiyi | |
% of Ownership | 100.00% |
Wangbo | Shangchi Automobile | |
% of Ownership | 51.00% |
Jiyi | Shangchi Automobile | |
% of Ownership | 19.00% |
Shangchi Automobile | Shenzhen Yimao | |
% of Ownership | 100.00% |
Lishui Tantech | Lishui Xincai | |
% of Ownership | 100.00% |
Lishui Tantech | Zhejiang Shangchi | |
% of Ownership | 100.00% |
Lishui Tantech | Lishui Smart | |
% of Ownership | 100.00% |
Lishui Xincai | Tantech Charcoal | |
% of Ownership | 100.00% |
Lishui Xincai | Jikang Energy | |
% of Ownership | 100.00% |
Lishui Xincai | Tanbo Tech | |
% of Ownership | 100.00% |
Jikang Energy | Tantech Bamboo | |
% of Ownership | 100.00% |
Summary of significant accoun_4
Summary of significant accounting policies - Significant property and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Machinery and Production equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Production 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) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020$ / ¥ | Dec. 31, 2019$ / ¥ | Dec. 31, 2018$ / ¥ |
Foreign Currency Translation | |||
Foreign Currency Exchange Rate, Translation | 0.1533 | 0.1436 | 0.1513 |
Foreign Currency Average Exchange Rate Translation | 0.1448 | 0.1448 | 0.1454 |
Summary of significant accoun_7
Summary of significant accounting policies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 306,600 | $ 287,200 |
Consumer product | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Decrease in revenue (as a percent) | 36.00% | |
Sanitation products | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Decrease in revenue (as a percent) | 269.00% | |
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 | 6,557,635 | 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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Current assets | |||
Cash and cash equivalents | $ 37,119,195 | $ 12,440,457 | |
Restricted cash | 220,109 | 205,520 | |
Prepaid taxes | 1,046,667 | 2,396,349 | |
Inventories, net | 671,251 | 595,627 | |
Advances to suppliers, net | 6,854,461 | 13,079,889 | |
Prepaid expenses and other receivables, net | 45,467 | 91,377 | |
Total Current Assets (Note 3 at VIE) | 81,900,747 | 68,161,627 | |
Non-current assets | |||
Property, plant and equipment, net | 2,477,912 | 2,700,034 | |
Manufacturing rebate receivable | ¥ 37,542,315 | 5,755,237 | 7,746,116 |
Intangible assets, net | 664,033 | 12,959,017 | |
Total Assets (Note 3 at VIE) | 116,295,245 | 115,450,777 | |
Current liabilities | |||
Bank acceptance notes payable | 1,753,109 | 205,520 | |
Accounts payable | 1,543,994 | 1,650,851 | |
Customer deposits | 3,183,088 | 6,742,659 | |
Taxes payable | 571,354 | 102,704 | |
Due to related parties | 2,019,087 | 1,838,603 | |
Accrued liabilities and other payables | 1,861,835 | 1,444,896 | |
Total Current Liabilities (Note 3 at VIE) | 16,803,857 | 19,133,641 | |
Non-current liabilities | |||
Deferred tax liability | 0 | 1,784,875 | |
Total Liabilities (Note 3 at VIE) | 16,803,857 | 20,918,516 | |
VIE | |||
Current assets | |||
Cash and cash equivalents | 206,893 | 70,420 | |
Restricted cash | 220,109 | 205,520 | |
Accounts receivable, net | 0 | 795,240 | |
Prepaid taxes | 1,045,027 | 894,051 | |
Inventories, net | 301,607 | 239,222 | |
Advances to suppliers, net | 333,010 | 93,241 | |
Prepaid expenses and other receivables, net | 37,104 | 73,378 | |
Total Current Assets (Note 3 at VIE) | 2,143,750 | 2,371,072 | |
Non-current assets | |||
Property, plant and equipment, net | 1,157,803 | 1,139,398 | |
Manufacturing rebate receivable | 5,755,237 | 7,746,116 | |
Intangible assets, net | 462,279 | 12,764,272 | |
Total Assets (Note 3 at VIE) | 9,519,069 | 24,020,858 | |
Current liabilities | |||
Bank acceptance notes payable | 220,109 | 205,520 | |
Accounts payable | 1,207,623 | 1,165,718 | |
Customer deposits | 381,623 | 113,657 | |
Taxes payable | 369 | ||
Due to related parties | 892,590 | 943,584 | |
Accrued liabilities and other payables | 350,928 | 442,280 | |
Total Current Liabilities (Note 3 at VIE) | 3,053,242 | 2,870,759 | |
Non-current liabilities | |||
Deferred tax liability | 0 | 1,784,875 | |
Total Liabilities (Note 3 at VIE) | $ 3,053,242 | $ 4,655,634 |
Variable Interest Entity - Addi
Variable Interest Entity - Additional Information (Details) - VIE | Jul. 12, 2017 |
Jivi [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest Owned | 19.00% |
Wangbo [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest Owned | 51.00% |
Service fee (percentage) | 95.00% |
Third Party [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest Owned | 30.00% |
Liquidity (Details)
Liquidity (Details) - USD ($) | 1 Months Ended | |||
Nov. 30, 2020 | Sep. 30, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liquidity | ||||
Net proceeds from equity financing | $ 9,100,000 | $ 5,600,000 | ||
Cash on hand | $ 37,119,195 | $ 12,440,457 | ||
Short-term bank loans | 5,564,790 | 6,861,208 | ||
Bank acceptance notes payable | $ 1,753,109 | $ 205,520 |
Discontinued operations - Incom
Discontinued operations - Income statement (Details) - USD ($) | 7 Months Ended | 12 Months Ended | ||
Jul. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discontinued operations | ||||
Revenue | $ 3,803,430 | $ 0 | $ 9,107,922 | |
Cost of revenues | 4,048,640 | 0 | 9,116,707 | |
Gross loss | (245,210) | 0 | (8,785) | |
Operating expenses | 629,525 | 0 | 3,164,918 | |
(Reversal of) Bad debt provision | (1,144,417) | 0 | (1,477,631) | |
Income (loss) from operations | 269,682 | 0 | (1,696,072) | |
Other income, net | 797 | 0 | 1,779,439 | |
Income before income taxes | 270,479 | 0 | 83,367 | |
Income taxes | 0 | 0 | 0 | |
Income from discontinued operations, net of tax | $ 270,479 | $ 0 | $ 270,479 | $ 83,367 |
Discontinued operations - Addit
Discontinued operations - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 26, 2019CNY (¥) | Jun. 26, 2019USD ($) | |
Loss from disposal of discontinued operations | $ (569,891) | $ 0 | |||
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, 2020 | Dec. 31, 2019 |
Accounts receivable | ||
Accounts receivable | $ 38,110,487 | $ 45,083,689 |
Allowance for doubtful accounts | (3,699,890) | (5,731,281) |
Accounts receivable, net | $ 34,410,597 | $ 39,352,408 |
Accounts receivable - Movement
Accounts receivable - Movement of allowance for doubtful accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts receivable | ||
Balance at beginning of year | $ 5,731,281 | $ 4,682,592 |
Change of allowance for doubtful accounts | (895,043) | 1,286,997 |
Write off | (1,523,489) | |
Translation adjustments | 387,141 | (238,308) |
Balance at end of year | $ 3,699,890 | $ 5,731,281 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory | ||
Raw materials | $ 489,750 | $ 515,658 |
Finished products | 53,223 | 79,269 |
Work in process | 128,278 | 700 |
Total Inventory | $ 671,251 | $ 595,627 |
Inventory - Write-offs (Details
Inventory - Write-offs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory | |||
Inventory, LIFO Reserve, Period Charge | $ 92,064 | $ 1,030,236 | $ 700,379 |
Advances to suppliers (Details)
Advances to suppliers (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Advances to suppliers | ||
Advances to suppliers | $ 7,033,556 | $ 14,596,906 |
Allowance for doubtful accounts | (179,095) | (1,517,017) |
Including: | ||
Advances to suppliers, net | 6,854,461 | 13,079,889 |
Advances to suppliers, current | $ 6,854,461 | $ 13,079,889 |
Advances to suppliers - Allowan
Advances to suppliers - Allowance for doubtful accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Advances to suppliers [Line Items] | ||
Balance at beginning of year | $ 5,731,281 | $ 4,682,592 |
Change of allowance for doubtful accounts | (895,043) | 1,286,997 |
Write off | (1,523,489) | |
Translation adjustments | 387,141 | (238,308) |
Balance at end of year | 3,699,890 | 5,731,281 |
Advances To Suppliers [Member] | ||
Advances to suppliers [Line Items] | ||
Balance at beginning of year | 1,517,017 | 1,426,769 |
Change of allowance for doubtful accounts | (400,436) | 162,859 |
Write off | (1,039,958) | |
Translation adjustments | 102,472 | (72,611) |
Balance at end of year | $ 179,095 | $ 1,517,017 |
Advances to suppliers - Advance
Advances to suppliers - Advances to suppliers - non-current (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts | $ 0 | $ (430,800) |
Advances to suppliers - non-current, net | 0 | 0 |
Zhibo Jieli Special Battery Material Co Ltd [Member] | ||
Advances to suppliers - non-current, gross | $ 0 | $ 430,800 |
Manufacturing rebate receivab_2
Manufacturing rebate receivable (Details) | 12 Months Ended | 24 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2017USD ($) | |
Increase Decrease In Manufacturing Rebate Receivable | $ (2,374,720) | $ (1,563,840) | $ 644,959 | ||||
Manufacturing Rebate Receivables | $ 7,746,116 | ¥ 37,542,315 | $ 5,755,237 | ||||
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Sixteen | 13,200,000 | 2,023,560 | |||||
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Seventeen | 19,906,560 | 3,051,676 | |||||
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Eighteen | ¥ 4,435,755 | $ 680,001 | |||||
Suzhou E-Motor [Member] | |||||||
Number of Qualified Electric Buses Sold | 0 | ||||||
Increase Decrease In Manufacturing Rebate Receivable | $ 0 | ||||||
Manufacturing Rebate Receivables | $ 6,000 | $ 29,400 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 7,853,456 | $ 8,015,971 |
Less: Accumulated depreciation | (5,375,544) | (5,315,937) |
Property, plant and equipment, net | 2,477,912 | 2,700,034 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 5,631,049 | 5,199,348 |
Machinery and Production equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,311,624 | 1,901,886 |
Electronic equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 193,912 | 240,606 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 38,524 | 55,961 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 545,008 | 501,156 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 133,339 | $ 117,014 |
Property, plant and equipment_4
Property, plant and equipment, net - Depreciation expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Continued and Discontinued Operations | $ 436,427 | $ 703,113 | $ 1,049,274 |
Depreciation | 436,427 | 462,639 | $ 628,144 |
Continuing Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Buildings pledged as collateral for bank loans | $ 895,742 | $ 966,201 |
Intangible assets, net (Details
Intangible assets, net (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 4,932,198 | $ 16,519,285 |
Less: Accumulated amortization | (4,268,165) | (3,560,268) |
Intangible assets, net | 664,033 | 12,959,017 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 25,957 | 24,314 |
Electric vehicle manufacturing license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 11,899,171 | |
Land use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 307,241 | 287,800 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 4,599,000 | $ 4,308,000 |
Intangible assets, net - Land u
Intangible assets, net - Land use rights (Details) | 12 Months Ended | 70 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2008item | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization, Continued and Discontinued Operations | $ 441,489 | $ 459,898 | $ 602,959 | |
Amortization of Intangible Assets | $ 441,489 | 441,489 | $ 443,318 | |
Land use rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of Land Use Rights Acquired | item | 2 | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 50 years | |||
Intangible Assets, Net (Excluding Goodwill) | $ 201,755 | 194,745 | ||
Shangchi Automobile [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 11,998,606 | $ 1,103,332 |
Short-term bank loans (Details)
Short-term bank loans (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Bank Loans and Notes Payable | $ 5,564,790 | $ 6,861,208 |
Loan payable One [Member] | Loan payable to Bank of China Lishui Branch [Member] | ||
Short-term Bank Loans and Notes Payable | 2,958,690 | 4,132,808 |
Loan payable Two [Member] | Loan payable to Shanghai Pudong Development ("SPD") Bank Lishui Branch [Member] | ||
Short-term Bank Loans and Notes Payable | $ 2,606,100 | $ 2,728,400 |
Short-term bank loans - Additio
Short-term bank loans - Additional Information (Details) | Jul. 09, 2020CNY (¥)item | Apr. 27, 2020CNY (¥)item | Jan. 06, 2020CNY (¥)item | Nov. 04, 2019CNY (¥) | Apr. 30, 2021CNY (¥) | Apr. 30, 2021USD ($) | Feb. 28, 2021CNY (¥) | Feb. 28, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 09, 2020USD ($) | Apr. 27, 2020USD ($) | Jan. 06, 2020USD ($) | Nov. 04, 2019USD ($) | Mar. 18, 2019CNY (¥) | Mar. 18, 2019USD ($) | Feb. 26, 2019CNY (¥) | Feb. 26, 2019USD ($) |
Short-term Debt [Line Items] | ||||||||||||||||||||
Short-term Bank Loans and Notes Payable | $ | $ 5,564,790 | $ 6,861,208 | ||||||||||||||||||
Interest Expense | $ | 300,125 | 443,262 | $ 626,343 | |||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | ¥ 17,780,000 | $ 2,725,674 | ¥ 18,780,000 | $ 2,696,808 | ||||||||||||||||
Debt Instrument, Term | 6 months | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | 5.88% | 6.05% | 6.05% | ||||||||||||||||
Debt Instrument, Collateral Amount | ¥ 25,960,000 | $ 4,000,000 | ||||||||||||||||||
Number of related paties | 3 | |||||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Charcoal [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | ¥ 19,300,000 | ¥ 10,000,000 | $ 2,958,690 | $ 1,533,000 | ¥ 10,000,000 | $ 1,436,000 | ||||||||||||||
Debt Instrument, Term | 1 year | 6 months | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.85% | 4.00% | 4.85% | 4.00% | 4.35% | 4.35% | ||||||||||||||
Debt Instrument, Collateral Amount | ¥ 10,000,000 | $ 1,500,000 | ||||||||||||||||||
Number of related paties | 2 | |||||||||||||||||||
Number of third party | 1 | |||||||||||||||||||
Number of individual related party | 3 | 2 | ||||||||||||||||||
Number of properties collateralized for loan | 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 | ||||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Building And Land Use Right [Member] | Tantech Charcoal [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Collateral Amount | ¥ 25,960,000 | $ 4,000,000 | ||||||||||||||||||
Loan payable to Shanghai Pudong Development ("SPD") Bank Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | ¥ 19,000,000 | ¥ 19,000,000 | $ 2,912,700 | $ 2,728,400 | ||||||||||||||||
Debt Instrument, Term | 1 year | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.785% | 5.22% | 4.785% | 5.22% | ||||||||||||||||
Debt Instrument, Collateral Amount | ¥ 29,250,000 | ¥ 29,250,000 | $ 4,500,000 | $ 4,200,000 | ||||||||||||||||
Number of related paties | 3 | 3 | ||||||||||||||||||
Amount of loan repaid | ¥ 16,000,000 | $ 2,452,800 | ¥ 1,000,000 | $ 153,300 | ¥ 2,000,000 | 306,600 | ||||||||||||||
Notes Payable to Banks [Member] | ||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||
Interest Expense | $ | $ 300,125 | $ 421,646 | $ 378,857 |
Bank acceptance notes payable_2
Bank acceptance notes payable (Details) | Apr. 19, 2021CNY (¥) | Apr. 19, 2021USD ($) | Mar. 29, 2021CNY (¥) | Mar. 29, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 12, 2020CNY (¥) | Jan. 12, 2020USD ($) | Dec. 31, 2019USD ($) |
Bank acceptance notes payable | $ 1,753,109 | $ 205,520 | ||||||
Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch | ||||||||
Bank acceptance notes payable | 0 | ¥ 1,431,200 | $ 205,520 | 205,520 | ||||
Bank acceptance notes payable issued by Zhang Jiagang Rural Commercial Bank | ||||||||
Bank acceptance notes payable | ¥ 1,435,805 | $ 220,109 | 220,109 | 0 | ||||
Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch | ||||||||
Bank acceptance notes payable | ¥ 10,000,000 | $ 1,533,000 | $ 1,533,000 | $ 0 |
Bank acceptance notes payable -
Bank acceptance notes payable - Additional Information (Details) | Apr. 19, 2021CNY (¥) | Apr. 19, 2021USD ($) | Mar. 29, 2021CNY (¥) | Mar. 29, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 12, 2020CNY (¥) | Jan. 12, 2020USD ($) | Dec. 31, 2019USD ($) |
Restricted Cash and Cash Equivalents, Current | $ 220,109 | $ 205,520 | ||||||
Notes Payable to Bank, Current | $ 1,753,109 | 205,520 | ||||||
Maximum | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | |||||||
Minimum | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 0.00% | |||||||
Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | |||||||
Notes Payable to Bank, Current | $ 0 | ¥ 1,431,200 | $ 205,520 | 205,520 | ||||
Bank acceptance notes payable issued by Zhang Jiagang Rural Commercial Bank | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | |||||||
Notes Payable to Bank, Current | ¥ 1,435,805 | $ 220,109 | $ 220,109 | 0 | ||||
Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | 100.00% | ||||||
Notes Payable to Bank, Current | ¥ 10,000,000 | $ 1,533,000 | $ 1,533,000 | $ 0 | ||||
Debt Instrument, Term | 1 year | |||||||
Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch | Zhejiang Xinsen Industrial Co., Ltd., | ||||||||
Collateral amount | ¥ 10,000,000 | $ 1,533,000 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 2,019,087 | $ 1,838,603 |
Due from Related Parties, Current | (1,533,000) | 0 |
Dr. Henglong Chen and his affiliates | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 881,442 | 932,616 |
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 | 1,058,188 | 864,623 |
Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 79,457 | $ 41,364 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||
Due to Related Parties, Current | $ 2,019,087 | $ 1,838,603 | |
Shangchi Automobile [Member] | |||
Related Party Transaction [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 70.00% | |
Dr. Henglong Chen and his affiliates | |||
Related Party Transaction [Line Items] | |||
Due to Related Parties, Current | $ 881,442 | 932,616 | |
Dr. Henglong Chen and his affiliates | Shangchi Automobile [Member] | |||
Related Party Transaction [Line Items] | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,500,000 | ||
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, Current | 1,058,188 | 864,623 | |
Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates | |||
Related Party Transaction [Line Items] | |||
Due to Related Parties, Current | 79,457 | 41,364 | |
Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates | Advances to Company [Member] | |||
Related Party Transaction [Line Items] | |||
Due to Related Parties, Current | 79,457 | $ 41,364 | |
Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates | LJC | |||
Related Party Transaction [Line Items] | |||
Advance paid to purchase bamboo charcoal materials | ¥ 20,154,532 | 3,089,690 | |
Received materials, amount | 10,154,532 | 1,556,690 | |
Remaining advance return amount | ¥ 10,000,000 | $ 1,533,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Aug. 30, 2019CNY (¥) | Aug. 30, 2019USD ($) | Aug. 10, 2019CNY (¥) | Aug. 10, 2019USD ($) | Jul. 31, 2020CNY (¥) | May 31, 2018CNY (¥) | May 31, 2018USD ($) | Jul. 31, 2017CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 22, 2021CNY (¥) | Nov. 22, 2021USD ($) | Aug. 30, 2020CNY (¥) | Aug. 30, 2020USD ($) | Aug. 09, 2020CNY (¥) | Jul. 31, 2020USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Nov. 11, 2019CNY (¥) | Oct. 31, 2019CNY (¥) | Sep. 30, 2019CNY (¥) | Aug. 30, 2019USD ($) | Dec. 31, 2018CNY (¥) | Nov. 30, 2018CNY (¥) | Jul. 31, 2017USD ($) |
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||||||
Operating Leases, Rent Expense | $ 299,562 | $ 167,526 | $ 139,507 | |||||||||||||||||||||||||
Tantech Bamboo [Member] | ||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||||||
Operating lease daily rent | ¥ 1,238,784 | 179,400 | ||||||||||||||||||||||||||
Shangchi Automobile [Member] | ||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||||||
Short-term Lease Commitment, Amount | $ 144,800 | ¥ 1,000,000 | ||||||||||||||||||||||||||
Operating lease rent | ¥ 1,000,000 | $ 144,800 | ||||||||||||||||||||||||||
Lease term | 1 year | 1 year | ||||||||||||||||||||||||||
Shenzhen E-Motors [Member] | ||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||||||
Short-term Lease Commitment, Amount | ¥ 44,352 | $ 6,400 | $ 13,600 | ¥ 93,600 | ¥ 93,600 | ¥ 93,600 | ¥ 93,600 | ¥ 93,600 | ||||||||||||||||||||
Lease term | 1 year | 1 year | 1 year | |||||||||||||||||||||||||
Forasen Group's [Member] | ||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||||||
Guaranty Liabilities | ¥ 57,070,000 | $ 8,700,000 | ||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jul. 8, 2023 | Jul. 23, 2020 | ||||||||||||||||||||||||||
Building Pledged As Collateral For Loans | ¥ 10,000,000 | $ 1,500,000 | ||||||||||||||||||||||||||
Forasen Group's [Member] | Tantech Bamboo [Member] | ||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||||||
Loss contingency, damage sought | ¥ 29,500,000 | $ 4,500,000 | ||||||||||||||||||||||||||
Settlement awarded | ¥ 90,000,000 | $ 13,800,000 | ||||||||||||||||||||||||||
Payments by third party | 34,860,000 | $ 5,300,000 | ||||||||||||||||||||||||||
Remaining unpaid | ¥ 55,140,000 | $ 8,500,000 | ||||||||||||||||||||||||||
Potential payment obligation | ¥ 90,000,000 | $ 13,800,000 | ||||||||||||||||||||||||||
Lishui Jiuanju Commercial Trade Co., Ltd. | Tantech Bamboo [Member] | ||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||||||||||||||||||
Potential payment obligation | ¥ 70,000,000 | $ 10,700,000 |
Stockholders' equity (Details)
Stockholders' equity (Details) - USD ($) | Nov. 24, 2020 | Mar. 23, 2020 | Sep. 19, 2018 | Sep. 27, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 30, 2020 |
Stock Issued During Period, Shares, Issued for Services | 35,592 | 150,000 | ||||||
Stock Issued During Period, Value, Issued for Services | $ 33,812 | $ 243,000 | $ 33,812 | $ 0 | $ 243,000 | |||
Stock Issued During Period, Shares, New Issues | 6,060,608 | |||||||
Shares Issued, Price Per Share | $ 1.65 | |||||||
Proceeds From Issuance of Common Stock Gross | $ 10,000,000 | |||||||
Stock Issued During Period, Value, New Issues | $ 9,100,000 | $ 9,055,000 | ||||||
Common Stock, Shares, Outstanding | 35,894,097 | 28,853,242 | ||||||
September 2017 Offering Warrants | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,078,045 | 944,655 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.001 | $ 4.25 | ||||||
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. | |||||||
November 2020 Offering Warrants | ||||||||
Term of Warrant | 5 years | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.81 | $ 1.87 | ||||||
Class of Warrant or Right, Outstanding | 6,557,635 | |||||||
Weighted Average Remaining Life of Warrants | 4 years 8 months 23 days | |||||||
Investor Warrants [Member] | September 2017 Offering Warrants | ||||||||
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] | September 2017 Offering Warrants | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 132,391 | |||||||
Term of Warrant | 5 years | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.675 | |||||||
Registered Warrants [Member] | November 2020 Offering Warrants | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,754,820 | |||||||
Unregistered Warrants [Member] | November 2020 Offering Warrants | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,305,788 | |||||||
Placement agent [Member] | Unregistered Warrants [Member] | November 2020 Offering Warrants | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 363,637 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.815 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interests | |||
Beginning Balance | $ 4,346,216 | $ 7,918,096 | |
Proportionate shares of net loss | (3,501,808) | (3,601,728) | $ (896,769) |
Foreign currency translation adjustment | (205,562) | 29,848 | |
Total | $ 638,846 | $ 4,346,216 | $ 7,918,096 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Shangchi Automobile And Subsidiary Shenzhen Yimao [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, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 03, 2020CNY (¥) | Apr. 03, 2020USD ($) | Apr. 02, 2020 | Nov. 29, 2019USD ($) | Jan. 10, 2018USD ($) |
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||
Other than Temporary Impairment Losses, Investments | $ | $ 0 | $ 0 | $ 0 | ||||||||
Libo Haokun [Member] | |||||||||||
Amount of investment | ¥ 120,000 | $ 18,400,000 | |||||||||
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] | |||||||||||
Amount of investment | ¥ 7,100 | ¥ 46,500 | $ 7,130,000 | $ 46,320,000 | |||||||
Equity Method Investment, Ownership Percentage | 18.00% | 100.00% | 14.76% | 14.76% | 18.00% | 18.00% | |||||
Value of the mining rights | ¥ | ¥ 257,350 | ||||||||||
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% | 18.00% | 18.00% |
Taxes - Prepaid taxes (Details)
Taxes - Prepaid taxes (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Taxes | ||
Prepaid corporation income tax | $ 0 | $ 356,121 |
Prepaid value-added tax | 1,046,667 | 2,040,228 |
Total | $ 1,046,667 | $ 2,396,349 |
Taxes - Taxes payable (Details)
Taxes - Taxes payable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Taxes | ||
Corporation income tax payable | $ 415,488 | $ 0 |
Other tax payable | 155,866 | 102,704 |
Total | $ 571,354 | $ 102,704 |
Taxes - Reconciles PRC statutor
Taxes - Reconciles PRC statutory rates (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes | |||
Statutory PRC income tax rate | 25.00% | 25.00% | 25.00% |
Favorable tax rate impact | (14.00%) | (11.00%) | (8.00%) |
Permanent difference and others | (5.00%) | 4.00% | (1.00%) |
Changes of deferred tax assets valuation allowances | 0.00% | (22.00%) | 35.00% |
Total | 6.00% | (4.00%) | 51.00% |
Taxes - Income tax expense cred
Taxes - Income tax expense credit (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes | |||
Current | $ 1,188,136 | $ 529,162 | $ 1,031,158 |
Deferred | (1,799,791) | (165,500) | 0 |
Total | $ (611,655) | $ 363,662 | $ 1,031,158 |
Taxes - Components of deferred
Taxes - Components of deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for doubtful accounts and other reserves and impairments | $ 4,464,601 | $ 4,426,306 |
Valuation allowance | (4,464,601) | (4,426,306) |
Total | 0 | 0 |
Deferred tax liability: | ||
Increase in fair value of intangible assets acquired through acquisition | 1,905,442 | 1,949,004 |
Impairment of intangible assets acquired through acquisition | (1,905,442) | (164,129) |
Total | $ 0 | $ 1,784,875 |
Taxes - Additional Information
Taxes - Additional Information (Details) - USD ($) | Dec. 02, 2020 | Jul. 17, 2017 | Jan. 01, 2008 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |||
Income Tax Holiday, decreased foreign taxes | $ 0 | $ 381,033 | $ 158,424 | |||
Benefit of the tax holidays on net income (loss) per share (basic and diluted) | $ 0 | $ 0.01 | $ 0.01 | |||
Deferred Tax Assets, Valuation Allowance | $ 4,464,601 | $ 4,426,306 | ||||
Tantech Bamboo [Member] | ||||||
Income tax rate (as a percent) | 15.00% | 25.00% | ||||
Tantech Bamboo [Member] | Shangchi Automobile [Member] | ||||||
Income tax rate (as a percent) | 15.00% | 15.00% |
Segment information (Details)
Segment information (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Operating Segments | segment | 3 | ||
Cost of revenue | $ 37,807,297 | $ 43,253,070 | $ 21,532,319 |
Revenues | 42,283,670 | 49,230,570 | 29,561,399 |
Gross profit | 4,476,373 | 5,977,500 | 8,029,080 |
Interest Expenses | 308,690 | 439,869 | 608,048 |
Capital expenditure | 144,806 | 92,369 | 559,038 |
Segment assets | 116,295,245 | 115,450,777 | |
Segment profit | (10,022,228) | (9,659,283) | 996,631 |
Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 37,807,297 | 43,253,070 | 21,532,319 |
Gross profit | 4,476,373 | 5,977,500 | 8,029,080 |
Interest Expenses | 300,125 | 443,262 | 626,343 |
Depreciation & amortization | 877,916 | 904,128 | 947,026 |
Capital expenditure | 144,806 | 6,799,939 | 14,515,522 |
Segment assets | 116,295,245 | 115,450,777 | 134,194,014 |
Segment profit | (10,022,228) | (9,659,283) | 996,631 |
Consumer product | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 25,598,821 | 40,138,663 | 14,347,896 |
Gross profit | 3,819,833 | 5,682,500 | 8,040,931 |
Interest Expenses | 206,365 | 355,400 | 292,996 |
Depreciation & amortization | 44,601 | 276,170 | 420,301 |
Capital expenditure | 2,489 | 6,787,833 | 13,512,820 |
Segment assets | 29,385,843 | 81,944,714 | 84,899,512 |
Segment profit | 644,981 | 2,430,387 | 4,135,969 |
Trading [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 11,813,003 | 2,270,766 | 3,290,089 |
Gross profit | 668,020 | 1,108,939 | 486,753 |
Interest Expenses | 93,760 | 71,979 | 126,030 |
Depreciation & amortization | 0 | 0 | 0 |
Capital expenditure | 0 | 0 | 209,721 |
Segment assets | 77,389,793 | 9,487,143 | 7,777,390 |
Segment profit | 1,571,390 | (83,910) | (134,511) |
EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 395,473 | 843,641 | 3,894,334 |
Gross profit | (11,480) | (813,939) | (498,604) |
Interest Expenses | 15,883 | 207,317 | |
Depreciation & amortization | 633,315 | 627,958 | 526,725 |
Capital expenditure | 142,317 | 12,106 | 792,981 |
Segment assets | 9,519,609 | 24,018,920 | 41,517,112 |
Segment profit | (12,238,599) | (12,005,760) | (3,004,827) |
External customers [Member] | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 42,283,670 | 49,230,570 | 29,561,399 |
External customers [Member] | Consumer product | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 29,418,654 | 45,821,163 | 22,388,827 |
External customers [Member] | Trading [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 12,481,023 | 3,379,705 | 3,776,842 |
External customers [Member] | EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 383,993 | 29,702 | 3,395,730 |
Intersegment [Member] | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | (2,926,739) | (1,005,029) | (7,790,931) |
Intersegment [Member] | Consumer product | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ (2,926,739) | $ (1,005,029) | $ (7,790,931) |
Segment information - Geographi
Segment information - Geographic information about revenues (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 42,283,670 | $ 49,230,570 | $ 29,561,399 |
CHINA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 42,283,670 | 49,230,570 | 29,561,399 |
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, 2020itemcustomer | Dec. 31, 2019itemcustomer | Dec. 31, 2018itemcustomer | |
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 | ||
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% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 28.00% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 20.00% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 14.00% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 12.00% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer E [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers A | |||
Concentration Risk, Percentage | 38.00% | 33.00% | |
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers B | |||
Concentration Risk, Percentage | 20.00% | 24.00% | |
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers C | |||
Concentration Risk, Percentage | 18.00% | 15.00% | |
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% | ||
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% | ||
Four Customers [Member] | Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 32.00% | ||
Four Customers [Member] | Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 22.00% | ||
Four Customers [Member] | Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 21.00% | ||
Four Customers [Member] | Accounts Receivable [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 20.00% | ||
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | |||
Number of Customers | 5 | 6 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Number of Customers | 4 | 5 | |
Major Suppliers [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Major Suppliers [Member] | Cost of Goods, Total [Member] | |||
Number of Suppliers | item | 2 | 3 | 3 |
Two Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers A | |||
Concentration Risk, Percentage | 53.00% | ||
Two Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers B | |||
Concentration Risk, Percentage | 17.00% |
Subsequent event (Details)
Subsequent event (Details) | Apr. 07, 2021CNY (¥) | Mar. 23, 2021CNY (¥) | Mar. 23, 2021USD ($) | Jul. 09, 2020CNY (¥) | Apr. 27, 2020CNY (¥) | Jan. 06, 2020CNY (¥) | Apr. 07, 2021USD ($) | Jul. 09, 2020USD ($) | Apr. 27, 2020USD ($) | Jan. 06, 2020USD ($) | Nov. 04, 2019CNY (¥) | Nov. 04, 2019USD ($) | Mar. 18, 2019CNY (¥) | Mar. 18, 2019USD ($) | Feb. 26, 2019CNY (¥) | Feb. 26, 2019USD ($) |
Loan payable to Bank of China Lishui Branch [Member] | Tantech Charcoal [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | ¥ 19,300,000 | ¥ 10,000,000 | $ 2,958,690 | $ 1,533,000 | ¥ 10,000,000 | $ 1,436,000 | ||||||||||
Debt Instrument, Term | 1 year | 6 months | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.85% | 4.00% | 4.85% | 4.00% | 4.35% | 4.35% | ||||||||||
Debt Instrument, Collateral Amount | ¥ 10,000,000 | $ 1,500,000 | ||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | ¥ 17,780,000 | $ 2,725,674 | ¥ 18,780,000 | $ 2,696,808 | ||||||||||||
Debt Instrument, Term | 6 months | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | 5.88% | 6.05% | 6.05% | ||||||||||||
Debt Instrument, Collateral Amount | ¥ 25,960,000 | $ 4,000,000 | ||||||||||||||
Loan payable to Shanghai Pudong Development ("SPD") Bank Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | ¥ 19,000,000 | $ 2,912,700 | ¥ 19,000,000 | $ 2,728,400 | ||||||||||||
Debt Instrument, Term | 1 year | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.785% | 4.785% | 5.22% | 5.22% | ||||||||||||
Debt Instrument, Collateral Amount | ¥ 29,250,000 | $ 4,500,000 | ¥ 29,250,000 | $ 4,200,000 | ||||||||||||
Subsequent Event [Member] | Under investigation [Member] | Mr. Hengwei Chen [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt dispute amount | ¥ 11,350,000 | $ 1,700,000 | ||||||||||||||
Liability to be recorded | $ 0 | |||||||||||||||
Subsequent Event [Member] | Loan payable to Shanghai Pudong Development ("SPD") Bank Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | ¥ 16,000,000 | $ 2,500,000 | ||||||||||||||
Debt Instrument, Term | 1 year | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.65% | 5.65% | ||||||||||||||
Debt Instrument, Collateral Amount | ¥ 29,250,000 | $ 4,500,000 |