Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | TANTECH HOLDINGS LTD |
Entity Central Index Key | 1,588,084 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Trading Symbol | TANH |
Entity Common Stock, Shares Outstanding | 28,703,242 |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Current Assets | ||
Cash and cash equivalents | $ 9,941,040 | $ 5,942,842 |
Restricted cash | 3,901,526 | 328,254 |
Notes receivable | 15,370 | 0 |
Accounts receivable from continuing operations, net | 44,834,930 | 35,904,345 |
Accounts receivable from EDLC business, net | 5,420,047 | 4,736,547 |
Inventories, net | 2,762,016 | 1,075,573 |
Advances to suppliers from continuing operations, net | 11,290,625 | 10,055,316 |
Advances to suppliers from EDLC business, net | 6,230,340 | 4,739,235 |
Prepaid value-added taxes | 3,131,667 | 680,857 |
Other receivables, net | 1,688,625 | 70,683 |
Current assets from discontinued operation | 28,699 | 123,177 |
Total current assets | 89,244,885 | 63,656,829 |
Property, plant and equipment, net | 9,883,846 | 8,677,977 |
Other Assets | ||
Accounts receivable from EDLC business | 1,502,518 | 0 |
Advances to suppliers | 2,109,005 | 8,638,260 |
Manufacturing rebate receivable | 9,269,118 | 0 |
Deferred tax assets | 0 | 94,153 |
Intangible assets, net | 17,476,430 | 1,788,178 |
Deposit for asset acquisition | 0 | 431,913 |
Deposit for business acquisition | 0 | 10,423,500 |
Goodwill | 9,001,924 | 0 |
Non-current assets from discontinued operations | 0 | 591,857 |
Total Assets | 138,487,726 | 94,302,667 |
Current Liabilities | ||
Short-term bank loans | 5,208,893 | 6,694,652 |
Bank acceptance notes payable | 6,975,526 | 1,727,652 |
Accounts payable from continuing operations | 5,543,226 | 575,487 |
Accounts payable from EDLC business | 1,643,579 | 1,372,071 |
Due to related parties | 2,995,228 | 0 |
Customer deposits | 1,198,661 | 799,510 |
Taxes payable | 796,182 | 720,492 |
Due to third parties | 708,864 | 846,837 |
Accrued liabilities and other payables | 1,719,103 | 1,359,897 |
Total Current Liabilities | 26,789,262 | 14,096,598 |
Deferred tax liability | 2,086,086 | 0 |
Total Liabilities | 28,875,348 | 14,096,598 |
Stockholders' Equity | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 28,703,242 and 24,311,935 shares issued and outstanding as of December 31, 2017 and 2016, respectively | 28,703 | 24,312 |
Additional paid-in capital | 39,067,328 | 26,603,511 |
Statutory reserves | 6,461,788 | 6,461,788 |
Retained earnings | 56,356,369 | 52,589,154 |
Accumulated other comprehensive loss | (1,101,270) | (5,472,696) |
Total Stockholders' Equity | 100,812,918 | 80,206,069 |
Noncontrolling interest | 8,799,460 | 0 |
Total Equity | 109,612,378 | 80,206,069 |
Total Liabilities and Equity | $ 138,487,726 | $ 94,302,667 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 28,703,242 | 24,311,935 |
Common Stock, Shares Outstanding | 28,703,242 | 24,311,935 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 43,084,397 | $ 40,532,595 | $ 46,814,536 |
Cost of revenues | 32,405,887 | 27,476,070 | 32,082,693 |
Gross Profit | 10,678,510 | 13,056,525 | 14,731,843 |
Operating expenses | |||
Selling expenses | 790,191 | 690,024 | 857,115 |
General and administrative expenses | 4,653,294 | 3,622,959 | 4,723,387 |
Research and development expenses | 627,577 | 136,625 | 1,084,867 |
Total operating expenses | 6,071,062 | 4,449,608 | 6,665,369 |
Income from operations | 4,607,448 | 8,606,917 | 8,066,474 |
Other income (expenses) | |||
Interest income | 18,750 | 588 | 82,579 |
Interest expense | (551,545) | (470,656) | (410,471) |
Government subsidy income | 0 | 52,597 | 326,018 |
Other income, net | 436,163 | 98,994 | 1,088,334 |
Total other income (expenses) | (96,632) | (318,477) | 1,086,460 |
Income before income taxes | 4,510,816 | 8,288,440 | 9,152,934 |
Provision for income taxes | 1,528,003 | 1,367,270 | 2,115,915 |
Net income from continuing operations | 2,982,813 | 6,921,170 | 7,037,019 |
Discontinued operation: | |||
Net income (loss) from discontinued operations, net of tax | 30,318 | (2,313,477) | 1,889,734 |
Net income | 3,013,131 | 4,607,693 | 8,926,753 |
Less: Net loss (income) attributable to the noncontrolling interest from continuing operations | 754,084 | (308,442) | (487,928) |
Net income attributable to common stockholders of Tantech Holding Inc. | 3,767,215 | 4,299,251 | 8,438,825 |
Net income | 3,013,131 | 4,607,693 | 8,926,753 |
Other comprehensive income: | |||
Foreign currency translation income (losses) | 4,341,324 | (5,448,209) | (3,977,179) |
Comprehensive gain (loss) | 7,354,455 | (840,516) | 4,949,574 |
Less: Comprehensive loss attributable to noncontrolling interest | 784,186 | (70,029) | (289,069) |
Comprehensive income (loss) attributable to common stockholders of Tantech Holding Inc. | $ 8,138,641 | $ (910,545) | $ 4,660,505 |
Earnings Per share -Basic and Diluted, Continuing operations | $ 0.15 | $ 0.19 | $ 0.40 |
Earnings Per share -Basic and Diluted, Discontinuing operations | $ 0 | $ (0.10) | $ 0.09 |
Weighted Average Shares Outstanding - Basic and diluted, Continuing operations and discontinued operations | 25,971,912 | 23,019,185 | 21,240,548 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Non Controlling Interest [Member] | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Statutory Reserves [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2014 | $ 62,476,789 | $ 3,155,273 | $ 20,000 | $ 9,473,230 | $ 3,515,420 | $ 5,377,637 | $ 40,935,229 |
Balance (In Shares) at Dec. 31, 2014 | 20,000,000 | ||||||
Issuance of common stock | 5,663,122 | 0 | $ 1,600 | 5,661,522 | 0 | 0 | 0 |
Issuance of common stock (in shares) | 1,600,000 | ||||||
Issuance of common stock under service agreements | 17,028,000 | 0 | $ 1,200 | 17,026,800 | 0 | 0 | 0 |
Issuance of common stock under service agreements (in shares) | 1,200,000 | ||||||
Cancellation of common stock upon termination of service agreements | (17,028,000) | 0 | $ (1,200) | (17,026,800) | 0 | 0 | 0 |
Cancellation of common stock upon termination of service agreements (in shares) | (1,200,000) | ||||||
Appropriation of retained earnings to statutory reserve fund | 0 | 0 | $ 0 | 0 | 0 | 1,023,598 | (1,023,598) |
Foreign currency translation gain (loss) | (3,977,179) | (198,859) | 0 | 0 | (3,778,320) | 0 | 0 |
Net income (loss) for the year | 8,926,753 | 487,928 | 8,438,825 | ||||
Balance at Dec. 31, 2015 | 73,089,485 | 3,444,342 | $ 21,600 | 15,134,752 | (262,900) | 6,401,235 | 48,350,456 |
Balance (In Shares) at Dec. 31, 2015 | 21,600,000 | ||||||
Issuance of common stock | 7,957,100 | 0 | $ 1,693 | 7,955,407 | 0 | 0 | 0 |
Issuance of common stock (in shares) | 1,693,000 | ||||||
Appropriation of retained earnings to statutory reserve fund | 0 | $ 0 | 0 | 0 | 60,553 | (60,553) | |
Foreign currency translation gain (loss) | (5,448,209) | (238,413) | 0 | 0 | (5,209,796) | 0 | 0 |
Net income (loss) for the year | 4,607,693 | 308,442 | 0 | 0 | 0 | 0 | 4,299,251 |
Stock issuance for minority interest buyback | 0 | (2,160,142) | $ 1,019 | 2,159,123 | 0 | 0 | 0 |
Stock issuance for minority interest buyback (in shares) | 1,018,935 | ||||||
Gain on minority interest buyback | 0 | (1,354,229) | $ 0 | 1,354,229 | 0 | 0 | 0 |
Balance at Dec. 31, 2016 | 80,206,069 | 0 | $ 24,312 | 26,603,511 | (5,472,696) | 6,461,788 | 52,589,154 |
Balance (In Shares) at Dec. 31, 2016 | 24,311,935 | ||||||
Issuance of common stock for acquisition | 6,500,000 | $ 2,500 | 6,497,500 | ||||
Issuance of common stock for acquisition (in shares) | 2,500,000 | ||||||
Issuance of common stock for private placement | 5,968,208 | $ 1,891 | 5,966,317 | ||||
Issuance of common stock for private placement (in shares) | 1,891,307 | ||||||
Foreign currency translation gain (loss) | 4,341,324 | (30,102) | 4,371,426 | ||||
Net income (loss) for the year | 3,013,131 | (754,084) | 3,767,215 | ||||
Noncontrolling interest through acquisition | 9,583,646 | 9,583,646 | |||||
Balance at Dec. 31, 2017 | $ 109,612,378 | $ 8,799,460 | $ 28,703 | $ 39,067,328 | $ (1,101,270) | $ 6,461,788 | $ 56,356,369 |
Balance (In Shares) at Dec. 31, 2017 | 28,703,242 |
Consolidated Statements of Cha6
Consolidated Statements of Changes in Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 736,878 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities | ||||
Net income | $ 3,013,131 | $ 4,607,693 | $ 8,926,753 | |
Net (income) loss from discontinued operations | (30,318) | 2,313,477 | (1,889,734) | |
Net income from continuing operations | 2,982,813 | 6,921,170 | 7,037,019 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities from continuing operations: | ||||
Allowance for doubtful accounts - accounts receivable | 2,632,813 | 239,487 | 949,823 | |
Allowance for doubtful accounts - advance to suppliers | (45,507) | 927,218 | (47,883) | |
Allowance for doubtful accounts - loan to third parties | (16,827) | 59,742 | 0 | |
Inventory reserve (recovery) | 13,908 | (84,414) | 156,775 | |
Depreciation expense | 613,296 | 534,252 | 546,528 | |
Amortization of intangible asset | 201,647 | 39,659 | 9,811 | |
Gain from disposal of property, plant and equipment | 0 | 0 | 197,026 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (1,378,315) | (3,192,557) | (212,550) | |
Advances to suppliers | 4,127,511 | (11,438,701) | (5,762,321) | |
Inventory | 845,496 | (97,373) | 20,295 | |
Other receivables | (812,643) | (11,192) | (49,507) | |
Government rebate receivable | (2,942,190) | 0 | 0 | |
Accounts payable | (955,969) | (965,208) | (486,409) | |
Accrued liabilities and other payables | (1,450,958) | 346,725 | 728,339 | |
Customer deposits | (377,020) | 244,020 | 76,546 | |
Taxes payable | (2,102,969) | 87,175 | (1,516,650) | |
Decrease (increase) in deferred tax liability | 0 | (98,473) | 0 | |
Net cash provided (used in) by continuing operations | 1,335,086 | (6,488,470) | 1,646,842 | |
Net cash provided by (used in) discontinued operating activities | 968,949 | (544,582) | 2,803,690 | |
Net cash provided by (used in) operating activities | 2,304,035 | (7,033,052) | 4,450,532 | |
Cash flows from investing activities | ||||
Acquisition of property, plant and equipment | (82,263) | (10,819) | (242,552) | |
Proceeds from disposal of property, plant and equipment | 0 | 0 | 32,940 | |
Payment for business acquisition | (4,552,240) | (3,372,925) | (8,030,000) | |
Cash acquired from business acquisition | 35,707 | 0 | 0 | |
Changes in deposit for asset acquisition | 443,400 | 1,505,770 | 1,085,752 | |
Net cash used in investing activities from continuing operations | (4,155,396) | (1,877,974) | (7,153,860) | |
Net cash provided by investing activities from discontinued operations | 662,144 | 0 | ||
Net cash used in investing activities | (3,493,252) | (1,877,974) | (7,153,860) | |
Cash flows from financing activities | ||||
Changes in restricted cash | (3,392,606) | (343,316) | 3,533,200 | |
Proceeds from third party loan | 0 | 885,694 | 0 | |
Repayment of loans from third party | (187,706) | 0 | 0 | |
Proceeds from Banker’s acceptance notes payable | 6,893,163 | 4,818,464 | 2,248,400 | |
Repayments of Banker’s acceptance notes payable | (1,995,953) | (3,011,540) | (9,314,800) | |
Proceeds from bank loans | 10,093,262 | 7,001,831 | 12,012,880 | |
Repayments of bank loans | (11,957,020) | (8,251,620) | (5,299,800) | |
Due from related parties | (477,565) | 0 | 0 | |
Proceeds from issuance of common stocks | 5,968,208 | 7,957,100 | 5,663,122 | |
Net cash provided by financing activities from continuing operations | 4,943,783 | 9,056,613 | 8,843,002 | |
Net cash provided by financing activities from discontinued operations | 0 | 0 | 0 | |
Net cash provided by financing activities | 4,943,783 | 9,056,613 | 8,843,002 | |
Effect of exchange rate changes on cash and cash equivalents | 243,632 | (476,134) | (281,560) | |
Net increase (decrease) in cash and cash equivalents | 3,998,198 | (330,547) | 5,858,114 | |
Cash and cash equivalents, beginning of year | 5,942,842 | 6,273,389 | 415,275 | |
Cash and cash equivalents, end of year | 9,941,040 | 5,942,842 | 6,273,389 | |
Supplemental disclosure information: | ||||
Income taxes paid | 1,156,976 | 696,435 | 2,892,808 | |
Interest paid | 479,358 | 261,625 | [1] | 411,805 |
Supplemental non-cash activities: | ||||
Common shares issued for Minority interest buyback | 0 | 2,160,142 | 0 | |
Common shares issued for acquisition of E-Motors | 6,500,000 | 0 | 0 | |
Net book value of assets and liabilities of E-Motors acquired | $ 11,122,410 | $ 0 | $ 0 | |
[1] | On August 16, 2016, the Company entered into a short-term loan agreement with Shanghai Pudong Development Bank to borrow $1,439,710 (RMB 10 million) for a year with fixed annual interest rate of 5.046%. The purpose of the loan is to fund working capital needs. The loan was guaranteed by Tantech Energy and three related parties, Yefang Zhang, Zhengyu Wang and Forasen Group. The loan was repaid on maturity date in 2017. |
Organization and nature of busi
Organization and nature of business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 Organization and nature of business Tantech Holdings Ltd. (“Tantech” or “Tantech BVI” or the “Company”) is a holding company established under the laws of the British Virgin Islands on November 19, 2010. Through its 100 100 In addition, Tantech Bamboo also has five wholly-owned subsidiaries: Zhejiang Tantech Bamboo Charcoal Co., Ltd. (“Tantech Charcoal” or “Charcoal”), Zhejiang Tantech Energy Tech Co., Ltd. (“Tantech Energy” or “Energy”), Zhejiang Babiku Charcoal Co., Ltd. (“Tantech Babiku” or “Babiku”), LishuiZhongzhu Charcoal Co., Ltd. (“LishuiZhongzhu” or “Zhongzhu”) and Hangzhou Tanbo Tech Co., Ltd. (“Tanbo Tech” or “Tanbo”). Tantech Charcoal conducts trading business, including the export of charcoal products; Tantech Babiku, established by Tantech Bamboo on October 20, 2015, conducts BBQ charcoal business and Tantech Energy is currently in the process of transferring its low emission BBQ charcoal business to Tantech Babiku. Lishui Zhongzhu, established by Tantech Bamboo on November 18, 2015, is engaged in the production and sales of active charcoal and other products. Tanbo Tech, another new entity established by Tantech Bamboo on December 8, 2015, plans to explore business opportunities outside Lishui area. Tantech Energy was engaged in the manufacturing of Electric Double-Layer Capacitor (“EDLC”) carbon. On December 14, 2017, the Company entered into a sale agreement and related agreements to transfer its EDLC carbon business (including intellectual property rights and equipment) to Zhejiang Apeikesi Energy Co., Ltd. (the “Buyer”), a PRC start-up company controlled by Dr. Zaihua Chen, the Registrant’s former Chief Technology Officer (the “CTO”). On August 19, 2015, the Board of Directors of the Company authorized USCNHK to form a wholly-owned subsidiary, LishuiTantech Energy Tech Co., Ltd. (“LishuiTantech”), as a holding company to hold its 95 5 1,018,935 On July 12, 2017, the Company acquired 70 70 100 As a result, the Company ultimately controls 70 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 Summary of significant accounting policies 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, USCNHK, Lishui Tantech, Tantech Bamboo and its wholly owned subsidiaries, Tantech Charcoal, Tantech Energy, Tantech Babiku and Tanbo Tech, E-Motor and E-Motor Holdings (collectively, the “Company”). All significant inter-company balances and transactions are eliminated upon consolidation. Non-controlling interest Non-controlling interest represents 30 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. December 31, 2017 Current assets $ 16,760,444 Non-current assets 36,352,228 Total assets 53,112,672 Current liabilities (21,695,054) Non-current liabilities (2,086,086) Total liabilities $ (23,781,140) Business combinations are accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. 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. 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; allowances pertaining to the allowance for doubtful accounts and suppliers; the valuation of inventories; and the realizability of deferred tax assets. 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 banker’s acceptance notes payable approximates their recorded values due to their short-term maturities. 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 Hong Kong and are not insured by the Federal Deposit Insurance Corporation or other programs. 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 19 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 and Hong Kong 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 are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. Inventory The Company values its inventories at the lower of cost, determined on a weighted average basis, or market. 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. 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 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. Buildings 20 Machinery and equipment 5 10 Transportation equipment 4 Office equipment 4 5 Electronic equipment 3 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 are acquired individually or as part of a group of assets, and are initially recorded at their fair value. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. Estimated Useful Life Goodwill Indefinite Licenses and permit Indefinite Software 3 10 Land use right 50 Patents 10 The Company evaluates intangible assets for impairment other than goodwill whenever events or changes in circumstances indicate that the assets might be impaired. The Company evaluates goodwill and licenses and permits for impairment when a triggering event occurs. There is no intangible assets impairment as of December 31, 2017 and 2016. Customer deposits represent amounts received from customers in advance of shipments relating to the sales of the Company’s products. Leases are classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as capital leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. The Company recognizes revenues under FAS Codification Topic 605 (“ASC 605”). Revenue is recognized when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) the ability to collect is reasonably assured. These criteria, as related to the Company’s revenue, are considered to have been met as follows: Sales of products: Upon sales of products, the delivery of goods either occurs when (a) goods leave the Company’s warehouse or production facilities or (b) goods are delivered and accepted by customer, usually at a location outside the Company. For sales under free on board (“FOB”) warehouse or production facilities term, the Company recognizes revenue when product leaves the Company’s warehouse or production facility. Product delivery is evidenced by warehouse shipping log as well as signed shipping bills from the shipping company. For sales under FOB destination term, the Company recognizes revenue when product is delivered and accepted by customer. Product delivery is evidenced by signed receipt document upon delivery. Under both cases, the risk of loss and/or title of goods passes to the customer at the time of delivery. The Company does not recognize any revenue for any sale arrangements that do not transfer title and/or risk of loss. The Company’s sales cutoff for both methods is evidenced by the receipt of goods delivery either signed by the shipping company or the customer acknowledging the receipt of goods. Such document is used as the proof of transfer of title and/or risk of loss. Revenue from the rendering of services: Revenue from electric vehicle assembly services are recognized upon performance of services as stipulated in the underlying contract. Service revenue generated is currently minimum and insignificant. Government manufacturing rebate income: The Company is eligible for a government manufacturing rebate on each qualifying electric bus 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 includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Cost of revenues also includes the cost of raw materials and utility purchased from related parties. Write-down of inventory for lower of cost or market adjustments is also recorded in cost of revenues. 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. Other income was primarily related to the consulting fee that the Company charged a third party using a Company’s patent in the production of doors with air treatment functionality. 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 operations 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. December 31, 2017 December 31, 2016 December 31, 2015 US$:RMB exchange rate Period End $ 0.1537 Period End $ 0.1440 Period End $ 0.1541 Average $ 0.1478 Average $ 0.1506 Average $ 0.1606 Comprehensive income (loss) consists of two components, net income 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 shareholder’s equity but are excluded from net income. Other comprehensive income (loss) consists of foreign currency translation adjustment from those subsidiaries not using the U.S. dollar as their functional currency. 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, 2017 and 2016. 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, 2017 and 2016. All tax returns since the Company’s inception are subject to examination by tax authorities. The Company is subject to VAT for selling merchandise. The applicable VAT rate is 13% or 17% (depending on the type of goods involved) for products sold in the PRC. 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, 2017, there were 1,078,045 not included in the diluted loss per share as they would be anti-dilutive. 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 In connection with the discontinued operation of the EDLC business, certain prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications had no effect on net income or cash flows as previously reported. The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions are denominated in RMB, and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. The Company does not carry any business interruption insurance, products liability insurance or any other insurance policy except for a limited property insurance policy. As a result, the Company may incur uninsured losses, increasing the possibility that investors would lose their entire investment in the Company. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 to fiscal years beginning after December 31, 2017, and interim periods within those fiscal years, with early adoption permitted for reporting periods beginning after December 15, 2016. Subsequently, the FASB issued ASUs in 2016 containing implementation guidance related to ASU 2014-09, including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which is intended to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which contains certain provisions and practical expedients in response to identified implementation issues; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which is intended to clarify the Codification or to correct unintended application of guidance. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. The Company adopted ASU 2014-09 and the related ASUs on January 1, 2018 using the modified retrospective method, which will not result in a cumulative catch-up adjustment to the opening balance sheet of retained earnings at the effective date. In September 2017, the FASB has issued ASU No. 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02. Recent accounting pronouncements Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 also impacts certain other areas, such as the accounting for costs to obtain or fulfill a contract. The standard also requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has performed an assessment of our revenue contracts and concluded that there will be no change to (1) the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606, which includes product sales, (2) the presentation of revenue as gross versus net, or (3) the amount of capitalized contract costs upon adoption of Topic 606. Because there will be no change to the timing and pattern of revenue recognition, we believe there will be no material changes to the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about the entity’s leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. A modified retrospective approach is required. The Company anticipates the adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial position; however, the Company does not believe adoption will have a material impact on the Company’s results of operations. The Company believes the most significant impact relates to our accounting for operating leases for office space and equipment. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Basically, these amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments in this ASU first, require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and second, remove the evaluation of whether a market participant could replace missing elements. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05 (“ASU 2017-05”) to provide guidance for recognizing gains and losses from the transfer of nonfinancial assets and in-substance nonfinancial assets in contracts with non-customers, unless other specific guidance applies. The standard requires a company to derecognize nonfinancial assets once it transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset. Additionally, when a company transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling ownership interest, the company is required to measure any noncontrolling interest it receives or retains at fair value. The guidance requires companies to recognize a full gain or loss on the transaction. As a result of the new guidance, the guidance specific to real estate sales in ASC 360-20 will be eliminated. ASU 2017-05 is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The effective date of this guidance coincides with revenue recognition guidance. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In March 2018, the FASB issued ASU 2018-05 Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”), which amends the FASB Accounting Standards Codification and XBRL Taxonomy based on the Tax Cuts and Jobs Act (the “Act”) that was signed into law on December 22, 2017 and Staff Accounting Bulletin No. 118 (“SAB 118”) that was released by the Securities and Exchange Commission. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international tax consequences for many companies that operate internationally. The Company does not believe this guidance will have a material impact on its consolidated financial statements. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2017 | |
Liquidity Requirements [Abstract] | |
Liquidity Requirements Disclosure [Text Block] | Note 3 -- Liquidity For the year ended December 31, 2017, the Company had a significant decrease in revenue from its consumer product segment due to stiff competition; disposed its EDLC business as a result of operating losses and outdated technology; completed the acquisition of Suzhou E-Motors to enter into the electric vehicle (“EV”) business. All of these events had and will continue to have significant impact on the Company’s operations. For its consumer product sector, the Company significantly cut its sales to supermarket customers because of long-aged accounts receivable from these supermarket customers as online shopping has become increasingly popular. The Company has been experiencing longer sales and collection periods while pushing back on the delivery of raw materials for production. That leads to higher balances of accounts receivable and advances to suppliers as compared to prior years. Meanwhile, the newly acquired EV sector is also experiencing delays of government rebate processing time and reduction of the amount of government rebates on eligible vehicles due to recent policy changes. On the other hand, the disposal of the EDLC business can save the Company certain operating cash flows. Due to a successful equity financing which resulted in net proceeds of $ 5.6 10 5.2 6.7 7.0 1.7 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. As of May 6, 2018, the Company subsequently collected $ 16.4 5.4 2.4 1.0 As of the date of this report, the Company maintains a cash balance of approximately $ 9.8 18.4 The Company is also working closely with the local government to speed up the government rebate process and expects the outstanding rebate receivable being fully collected in 2019. With disposal of its EDLC business and placing focus on manufacturing of more marketable consumer products, the Company is shifting its strategy to cut back costs and ensure profitability. Although the Company is currently not generating net income from its EV sector, it has been focusing on reducing the costs and expenses and developing other non-rebate alternative energy products. The Company plans to fund this sector through additional private placement and continued support from the parent company even without timely receipt of government rebate. The principal shareholder of the Company, along with the affiliated entity, Forasen Group, has made pledges to provide financial support to the Company whenever necessary. Based on its current operating plan, management believes that the above-mentioned measures collectively will provide sufficient liquidity for the Company to meet its future liquidity and capital requirements for at least next twelve months from the date of this report. |
Acquisition of E-Motors
Acquisition of E-Motors | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 4 Acquisition of E-Motors On July 12, 2017 (the “Closing Date”), the Company completed the acquisition of 70 Pursuant to the original Purchase Agreement executed on May 2, 2016, and the Supplemental Agreement No. 1 signed on December 22, 2016 and Supplemental Agreement No. 2 signed on July 12, 2017, the Company acquired 70% equity interest of Suzhou E-Motors for a total cash consideration of $ 15,861,840 103,200,000 2,500,000 6,500,000 The transaction was accounted for as a business combination using the purchase method of accounting. The purchase price allocation of the transaction was determined by the Company with the assistance of an independent appraisal firm based on the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date. Amounts Cash acquired $ 37,132 Restricted cash 23,055 Accounts receivable, net 4,495,690 Accounts receivable from related parties, net 3,434,845 Manufacturer rebate receivable 6,209,480 Inventories, net 2,404,668 Advances to suppliers, net 1,233,274 Due from related party 385,083 Other current assets 1,608,333 Property, plant and equipment, net 1,584,652 Patents and software 2,050,923 Electronic vehicle registered license 13,907,238 Accounts payable (6,101,767) Accrued liabilities and other current liabilities (6,444,440) Deferred tax liability (1,884,603) Noncontrolling interest (9,583,646) Goodwill 9,001,923 Total consideration $ 22,361,840 The intangible assets mainly include E-motor’s electronic vehicles registered license of $ 13,907,238 |
Disposal of Certain Assets of T
Disposal of Certain Assets of Tantech Energy | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 5 Disposal of Certain Assets of Tantech Energy On December 14, 2017, the Company entered into a sale agreement and related agreements (the “EDLC Agreements”) to transfer its Electric Double-Layer Capacitor (“EDLC”) carbon business (including intellectual property rights and equipment) to Zhejiang Apeikesi Energy Co., Ltd. (the “Buyer”), a PRC start-up company controlled by Dr. Zaihua Chen, the Registrant’s former CTO. Pursuant to the EDLC Agreements, total purchase price is $ 2,459,200 16 0.7 4.48 432,929 1,948,490 1,770,624 1,502,518 In connection with the Agreement, Buyer and the Company also signed a lease agreement, pursuant to which, the Buyer agreed to lease the existing production facility from Tantech Energy for five years. The rents for the first two years are free. The annual rent income for the third, fourth and fifth year is $ 50,750 58,000 65,250 For the year ended December 31, 2017 2016 2015 Revenue $ 3,402,405 $ 7,133,079 $ 12,015,364 Cost of revenues (1,433,301) (6,645,824) (9,864,991) Gross profit 1,969,104 487,255 2,150,373 Operating expenses (4,100,079) (2,798,681) (2,405) (Loss) Income from operations (2,130,975) (2,311,426) 2,147,968 Gain on disposal of EDLC 1,948,490 - - Other income (expense), net 219,971 (2,051) 3,566 Net income (loss) before tax 37,486 (2,313,477) 2,151,534 Income taxes (7,168) - (261,800) Income (loss) from discontinued operations $ 30,318 $ (2,313,477) $ 1,889,734 |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables [Text Block] | Note 6 Accounts receivable December 31 December 31, Accounts receivable $ 52,201,869 $ 41,577,348 Accounts receivable related parties * 3,434,845 - Allowance for doubtful accounts (3,879,219) (936,456) 51,757,495 40,640,892 Less: account receivable long term portion from continuing operations ** (1,502,518) - Accounts receivable short term portion, net $ 50,254,977 $ 40,640,892 Including: Accounts receivable short term portion from continuing operations, net $ 44,834,930 $ 35,904,345 Accounts receivable short term portion from EDLC business net $ 5,420,047 $ 4,736,547 Accounts receivable short term portion, net $ 50,254,977 $ 40,640,892 * As of December 31, 2017, the Company had total accounts receivable balances of $ 3,434,845 The Company collected back approximately $ 2.2 14.5 **representing the non-current portion of accounts receivable resulted from disposition of certain assets in Tantech Energy (Note 5). 16.4 37 2.2 $ 23.8 5.4 May 6, 2018. Years ended December 31, 2017 2016 Balance at beginning of year $ 936,456 $ 1,224,364 Addition to doubtful accounts expense 2,768,948 547,176 Deduction collection of doubtful accounts - (748,241) Translation adjustments 173,815 (86,843) Balance at end of year $ 3,879,219 $ 936,456 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 7 Inventory December 31, December 31, Raw materials $ 1,649,403 $ 822,538 Finished products 321,473 282,783 Work in process 876,003 153,261 Subtotal 2,846,879 1,258,582 Inventory reserve (84,863) (59,832) 2,762,016 1,198,750 Less: inventory from discontinued operations - 123,177 Inventory from continuing operations $ 2,762,016 $ 1,075,573 |
Advances to suppliers
Advances to suppliers | 12 Months Ended |
Dec. 31, 2017 | |
Advances To Suppliers [Abstract] | |
Advances To Suppliers [Text Block] | Note 8 Advances to suppliers December 31, December 31, Advances to suppliers $ 22,285,733 $ 16,465,072 Allowance for doubtful accounts (4,764,768) (1,670,521) Advances to suppliers, net $ 17,520,965 $ 14,794,551 Including: Advances to suppliers from continuing operations, net $ 11,290,625 $ 10,055,316 Advances to suppliers from EDLC business, net $ 6,230,340 $ 4,739,235 Advances to suppliers, net $ 17,520,965 $ 14,794,551 Years ended December 31, 2017 2016 Balance at beginning of year $ 1,670,521 $ 306,915 Addition to doubtful accounts expense 2,947,657 1,458,381 Deduction utilization or return of advances (80,740) (22,141) Translation adjustments 227,330 (72,634) Balance at end of year $ 4,764,768 $ 1,670,521 Approximately 21 2.4 1.0 One of the Company’s major vendor in EDLC business, Longquan Zhixin Trading Co., Ltd., with outstanding advance to supplier balance of $ 5.9 Advances to suppliers - long term December 31, December 31, Zhejiang Longquanzhixin Commercial & Trade Co., Ltd * $ 1,647,905 $ 8,638,260 Zhibo Jieli Special Battery Material Co., Ltd ** 461,100 - Advances to suppliers - long term, net $ 2,109,005 $ 8,638,260 * representing the prepayments made to ensure continuous high-quality supply and favorable purchase prices. On December 15, 2016, the Company entered into a long-term supply agreement with Zhejiang Longquanzhixin Commercial & Trade Co., Ltd. (“ZLCT”) to make an advance payment of $ 8,638,260 60,000,000 1,650 13,000 ** representing the prepayments made to acquire machinery. |
Manufacturing Rebate Receivable
Manufacturing Rebate Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Manufacturing Rebate Receivable [Abstract] | |
Manufacturing Rebate Receivable [Text Block] | 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 within two years period after sales are finalized and paperwork is submitted. Based on the criteria listed, E-Motors is eligible for 29,400 60,200 The Company applied 100 2,942,190 9,269,118 6,209,480 3,059,638 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 10 Property, plant and equipment, net December 31, December 31, Building $ 13,430,892 $ 11,936,896 Machinery and Production equipment 2,831,180 2,795,133 Electronic equipment 312,667 236,890 Office equipment 75,097 46,988 Automobiles 655,897 212,167 Subtotal 17,305,733 15,228,074 Accumulated depreciation (7,421,887) (5,958,240) 9,883,846 9,269,834 Less: Property, plant and equipment, net for discontinued operations - 591,857 Property, plant and equipment, net for continuing operations $ 9,883,846 $ 8,677,977 Depreciation expense was $ 613,296 534,252 1,546,528 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Note 11 Intangible assets, net December 31, December 31, Software $ 761,052 $ 702,666 Electronic vehicle registered license (Note 4) 13,907,238 - Land use rights* 1,982,926 1,857,410 Patents** 4,611,000 - Total 21,262,216 2,560,076 Less: Accumulated amortization (3,785,786) (771,898) Intangible assets, net $ 17,476,430 $ 1,788,178 *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 1,365,030 1,522,564 50 5 201,647 39,659 9,811 |
Short-term bank loans
Short-term bank loans | 12 Months Ended |
Dec. 31, 2017 | |
Loans Payable [Member] | |
Short-term Debt [Line Items] | |
Short-term Debt [Text Block] | Note 12 Short-term bank loans December 31, December 31, Loan payable to Hangzhou Bank (a) $ $ 287,942 Loan payable to Bank of China Lishui Branch (b) 5,208,893 4,967,000 Loan payable to SPD bank (c) - 1,439,710 Total $ 5,208,893 $ 6,694,652 (a) On March 28, 2016, the Company entered into a short-term loan agreement with Hangzhou Bank (Lishui Branch) to borrow $ 287,942 2 4.35 (b) On May 10, 2016, the Company entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $ 2,087,580 14.5 5.88 2,879,420 20 5.66 On September 26, 2017, the Company entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $ 2,151,800 14 6.10 On September 26, 2017, the Company entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $ 3,057,093 19.89 5.88 3,930,109 On March 30, 2017, Bamboo entered into a short term loan agreement with Bank of China (Lishui Branch) to borrow $ 3,074,000 20 5.66 On March 30, 2017, the company entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $ 2,213,280 14.4 5.66 The loan was guaranteed by the Company’s CEO Mr. Zhengyu Wang and his wife Ms. Yefang Zhang. The loan was fully repaid upon maturity on September 29, 2017. As of December 31, 2017, total loans payable to Bank of China Lishui Branch amounted to $ 5,208,893 On August 16, 2016, the Company entered into a short-term loan agreement with Shanghai Pudong Development Bank to borrow $ 1,439,710 10 5.046 For the years ended December 31, 2017, 2016 and 2015, the interest expense was $ 479,358 388,007 349,019 |
Bank acceptance notes payable
Bank acceptance notes payable | 12 Months Ended |
Dec. 31, 2017 | |
Notes Payable to Banks [Member] | |
Debt Disclosure [Text Block] | Note 13 Bank acceptance notes payable Bank acceptance notes payable do not carry a stated interest rate but have a specific due date usually for a period of one year. These notes are negotiable documents issued by financial institutions on the Company’s behalf to vendors. These notes can either be endorsed by the vendor to other third parties as payment or can be factored to other financial institutions before becoming due. These notes are short-term in nature. As collateral security for financial institutions’ undertakings, the Company is required to maintain deposits with such financial institutions in restricted cash amounts of 0 100 3,901,526 328,254 December 31, December 31, Bank acceptance notes payable issued by Bank of Hangzhou Lishui Branch (a) $ - $ 287,942 Letter of credit issued by Shanghai Pudong Development Bank Lishui Branch (b) 3,074,000 1,439,710 Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch (c) 3,901,526 Total $ 6,975,526 $ 1,727,652 (a) Bank acceptance notes payable issued by Bank of Hangzhou, Lishui Branch have due date of March 21, 2017 100 (b) Letter of credit of $ 1,439,710 August 16, 2017 3,074,000 4.5 (c) Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch with due dates from April 20, 2018 to July 3, 2018. The Company is required to maintain restricted cash deposits at 100 |
Convertible Note
Convertible Note | 12 Months Ended |
Dec. 31, 2017 | |
Convertible Debt [Abstract] | |
Convertible Debt Disclosure [Text Block] | Note 14 Convertible Note On February 9, 2017, the Company entered into a Convertible Note Agreement with ARC Capital Ltd. to secure a loan for $ 2,000,000 a conversion price which is 85% of the 15 trading day average closing price of the Company’s common stock prior to the date of Tantech receiving Notice of Conversion by Note Holder. The conversion price shall, under no circumstances, be lower than the average closing price of the 10 trading days prior to the date of signing of this Agreement. The term of the loan is one year, and the interest rate is 7% per annum payable at the maturity date, which rate can be increased to 10% per annum subject to the agreement stated |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 15 Related Party Transactions December 31, December 31, Dr. Henglong Chen and its affiliates * $ 240,462 $ - Mr. Yulong Chen, a shareholder of the Company 1,537,000 - Forasen Group, controlled by Mr. Zhengyu Wang, Chairman and CEO of the Company 1,217,766 - Total $ 2,995,228 $ - * Dr. Henglong Chen is the original shareholder of E-Motors (Note 4). The Company acquired his 70 2,500,000 Balances of due to the related parties were unsecured, interest-free and due upon demand. As of December 31, 2017, the Company had total accounts receivable balances of $ 3,434,845 The Company’s major shareholder Mr. Zhengyu Wang and his wife Ms. Yefang Zhang, as well as related party entities controlled by Mr. Wang, provided guarantees to the Company’s bank loans and bank acceptance notes payables (Note 12 and 13). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 16 Commitments and Contingencies Guaranty provided for related party As of December 31, 2017, the Company provided a guaranty on behalf of Forasen Group’s outstanding line of credit of $ 8,771,659 57,070,000 8.8 July 23, 2020 8,645,459 60,050,000 4.0 April 8, 2017 E-Motors also leased certain factory and apartment for employees under operating leases through August 2018. The minimum lease payments under operating leases agreement were $ 65,131 73,184 |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 17 Stockholders’ equity On March 4, 2016, the Company issued a total of 1,693,000 4.70 7,957,100 On December 28, 2016, the Company issued 1,018,935 5 On July 12, 2017, in connection of the acquisition of E-Motors, the Company issued 2,500,000 6,500,000 2.6 On September 27, 2017, the Company and certain institutional investors entered into a securities purchase agreement in connection with the September 2017 Offering, pursuant to which the Company agreed to sell an aggregate of 1,891,307 1,078,045 945,654 132,391 3.45 5,968,208 Warrants registered in September 2017 Offering In connection with the September 2017 offering, the Company registered and issued warrants to purchase an aggregate of 1,078,045 common shares, consisting of 945,654 investor warrants (the “Investor Warrants”) and 132,391 placement agent warrants (the “Placement Agent Warrants”). All warrants carry a term of 5 years. The Investor Warrants are exercisable at $ 4.25 4.675 The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Company’s common shares. Management determined that these warrants are equity instruments because the warrants are indexed to its own stock. The warrants were recorded at their fair value on the date of grant as a component of stockholders’ equity. As of December 31, 2017, the total number of warrants outstanding was 1,078,045 5 |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | Note 18 Noncontrolling Interests December 31, December 31, Beginning Balance $ - $ 3,444,342 Noncontrolling interest through acquisition of E-Motors (Note 4) 9,583,646 Proportionate shares of net (loss) income (754,084) 308,442 Capital contribution by a minority shareholder Buyback of Noncontrolling interest (a) - (2,160,142) Gain on Noncontrolling interest buyback (a) - (1,354,229) Foreign currency transaction adjustment (30,102) (238,413) Total $ 8,799,460 $ - (a) On June 24, 2016, Tantech BVI, through its wholly owned subsidiary, Lishui Tantech, entered into an equity purchase agreement with the five individuals who holds the 5% equity interest of Tantech Bamboo. Pursuant to the equity purchase agreement, Tantech BVI issued 1,018,935 5 95 100 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Taxes [Abstract] | |
Taxes Disclosure [Text Block] | Note 19 Taxes Taxes Payable December 31, December 31, Corporation income tax payable $ 551,610 $ 441,084 Other tax payable 244,572 279,408 Total $ 796,182 $ 720,492 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 Tantech Bamboo was registered in the PRC and is subject to corporate income tax at a reduced rate of 15 Tantech Energy was registered in the PRC and is also subject to corporate income tax at a reduced rate of 15 25 15 The impact of the tax holidays noted above decreased foreign taxes by $ 899,503 906,131 0.03 Years ended December 31, 2017 2016 2015 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (a) (10) % (10) % (12) % Permanent difference 2 % 1 % 5 % Changes of deferred tax assets valuation allowances 17 % - % 5 % Total 34 % 16 % 23 % (a) Two of the Company’s subsidiaries, Tantech Bamboo and Tantech Energy are subject to tax rate of 15 Years ended December 31, 2017 2016 2015 Current $ 1,334,254 $ 1,465,744 $ 2,115,915 Deferred 193,749 (98,474) - Total $ 1,528,003 $ 1,367,270 $ 2,115,915 December 31, December 31, Deferred tax assets: Allowance for doubtful accounts and other reserves $ 1,682,706 $ 564,556 Valuation allowance (1,682,706) (470,403) Total $ - $ 94,153 Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 2,086,086 $ - Total $ 2,086,086 $ - At December 31, 2017, 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, 2017, and 2016, the valuation allowance was $ 1,682,706 470,403 1,212,303 |
Major customers and suppliers
Major customers and suppliers | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Note 20 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 years ended December 31, 2017, 2016 and 2015, two major customers accounted for approximately 47 27 29 43 33 The Company also had certain major suppliers whose purchases individually represented 10% or more of the Company’s total purchases. For the years ended December 31, 2017, three major suppliers accounted for more than 61 and 2015, four major suppliers accounted for approximately 88 61 |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 21 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 electronic vehicles separately. The Company has determined that it has three operating segments as defined by ASC 280, “Segment Reporting”: consumer products, electronic vehicles, and trading. Consumer products segment manufactures and sells Charcoal Doctor branded products and BBQ charcoal in China. Trading segment conducts rubber and other trading businesses. Electronic Vehicle segment (“EV”) was acquired in July 2017 (Note 4). 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. Consumer product Trading EV Total 2017 2016 2015 2017 2016 2015 2017 2017 2016 2015 Revenue from external customers $ 32,675,933 $ 39,978,902 $ 43,235,065 $ 1,829,475 $ 553,693 $ 3,579,471 $ 8,578,988 $ 43,084,397 $ 40,532,595 $ 46,814,536 Revenue from inter segment (2,736,204) 576,302 736,527 (24,550) 12,345 11,988 - (2,760,754) 588,647 748,515 Cost of revenue 24,357,432 27,450,566 28,618,875 1,412,061 25,504 3,463,818 6,636,402 32,405,887 27,476,070 32,082,693 Gross profit 8,318,510 12,528,336 14,616,190 417,414 528,189 115,653 1,942,586 10,678,510 13,056,525 14,731,843 Interest Expenses 290,797 341,697 324,643 124,586 128,959 85,828 136,161 551,545 470,656 410,471 Depreciation & amortization 506,027 522,770 239,170 25,345 51,141 72,715 299,075 814,942 573,911 311,885 Capital expenditure 74,202 10,819 242,552 - - - 8,061 82,263 10,819 242,552 Segment assets 83,024,439 92,878,334 84,205,232 5,988,364 1,424,333 2,071,215 49,474,923 138,487,726 94,302,667 86,276,447 Segment profit $ 5,293,269 $ 7,070,925 $ 6,302,893 $ 203,157 $ (149,755) $ 734,126 $ (2,513,613) $ 2,982,813 $ 6,921,170 $ 7,037,019 All of the Company's long-lived assets are located in the PRC. Years ended December 31, 2017 2016 2015 Revenue from China $ 43,084,397 $ 39,976,470 $ 46,114,044 Revenue directly from foreign countries - 556,125 700,492 Total Revenue $ 43,084,397 $ 40,532,595 $ 46,814,536 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 22 Subsequent Events On January. 10, 2018, the Company signed a share purchase agreement (the “Agreement”) with Shanghai Shicai Minerals Co., Ltd. (“Shanghai Shicai”) to acquire all of the shares of Lishui Xincai Industrial Co., Ltd. (“Lishui XinCai”), a wholly-owned subsidiary of Shanghai Shicai, at a price of approximately $ 18.2 120 18 Libo Haokun holds a government-issued permit and has the exclusive right to mine a 0.11 4.02 3.74 664.74 Pursuant to the Agreement, Tantech agrees to acquire all issued and outstanding common shares of Lishui Xincai for a total consideration of RMB 120 million in cash to be paid in two installments. The first installment of RMB 25 95 The Company paid the consideration of RMB 120 From January 29, 2018 to March 30, 2018, the Company received in aggregated of $ 599,430 |
Summary of significant accoun30
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [PolicyText Block] | 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, USCNHK, Lishui Tantech, Tantech Bamboo and its wholly owned subsidiaries, Tantech Charcoal, Tantech Energy, Tantech Babiku and Tanbo Tech, E-Motor and E-Motor Holdings (collectively, the “Company”). All significant inter-company balances and transactions are eliminated upon consolidation. |
Non Controlling Interest [Policy Text Block] | Non-controlling interest Non-controlling interest represents 30 |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Consolidation of variable interest entities 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. December 31, 2017 Current assets $ 16,760,444 Non-current assets 36,352,228 Total assets 53,112,672 Current liabilities (21,695,054) Non-current liabilities (2,086,086) Total liabilities $ (23,781,140) |
Business Combinations Policy [Policy Text Block] | Business Combinations Business combinations are accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. |
Discontinued Operations, Policy [Policy Text Block] | 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, Policy [Policy Text Block] | 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; allowances pertaining to the allowance for doubtful accounts and suppliers; the valuation of inventories; and the realizability of deferred tax assets. |
Fair Value Measurement, Policy [Policy Text Block] | 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 banker’s acceptance notes payable approximates their recorded values due to their short-term maturities. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | 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 Hong Kong and are not insured by the Federal Deposit Insurance Corporation or other programs. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | 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 19 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 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 and Hong Kong 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. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. |
Advances To Suppliers [Policy Text Block] | 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, Plant and Equipment, Policy [Policy Text Block] | 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. Buildings 20 Machinery and equipment 5 10 Transportation equipment 4 Office equipment 4 5 Electronic equipment 3 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. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangibles including goodwill Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at their fair value. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. Estimated Useful Life Goodwill Indefinite Licenses and permit Indefinite Software 3 10 Land use right 50 Patents 10 The Company evaluates intangible assets for impairment other than goodwill whenever events or changes in circumstances indicate that the assets might be impaired. The Company evaluates goodwill and licenses and permits for impairment when a triggering event occurs. There is no intangible assets impairment as of December 31, 2017 and 2016. |
Customer Deposits [Policy Text Block] | Customer Deposits Customer deposits represent amounts received from customers in advance of shipments relating to the sales of the Company’s products. |
Lessee, Leases [Policy Text Block] | Leases Leases are classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as capital leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenues under FAS Codification Topic 605 (“ASC 605”). Revenue is recognized when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) the ability to collect is reasonably assured. These criteria, as related to the Company’s revenue, are considered to have been met as follows: Sales of products: Upon sales of products, the delivery of goods either occurs when (a) goods leave the Company’s warehouse or production facilities or (b) goods are delivered and accepted by customer, usually at a location outside the Company. For sales under free on board (“FOB”) warehouse or production facilities term, the Company recognizes revenue when product leaves the Company’s warehouse or production facility. Product delivery is evidenced by warehouse shipping log as well as signed shipping bills from the shipping company. For sales under FOB destination term, the Company recognizes revenue when product is delivered and accepted by customer. Product delivery is evidenced by signed receipt document upon delivery. Under both cases, the risk of loss and/or title of goods passes to the customer at the time of delivery. The Company does not recognize any revenue for any sale arrangements that do not transfer title and/or risk of loss. The Company’s sales cutoff for both methods is evidenced by the receipt of goods delivery either signed by the shipping company or the customer acknowledging the receipt of goods. Such document is used as the proof of transfer of title and/or risk of loss. Revenue from the rendering of services: Revenue from electric vehicle assembly services are recognized upon performance of services as stipulated in the underlying contract. Service revenue generated is currently minimum and insignificant. Government manufacturing rebate income: The Company is eligible for a government manufacturing rebate on each qualifying electric bus 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 Sales, Policy [Policy Text Block] | Cost of revenues Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Cost of revenues also includes the cost of raw materials and utility purchased from related parties. Write-down of inventory for lower of cost or market adjustments is also recorded in cost of revenues. |
Subsidy Income [Policy Text Block] | 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. |
Other Income [Policy Text Block] | Other Income Other income was primarily related to the consulting fee that the Company charged a third party using a Company’s patent in the production of doors with air treatment functionality. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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 operations 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. December 31, 2017 December 31, 2016 December 31, 2015 US$:RMB exchange rate Period End $ 0.1537 Period End $ 0.1440 Period End $ 0.1541 Average $ 0.1478 Average $ 0.1506 Average $ 0.1606 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (loss) Comprehensive income (loss) consists of two components, net income 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 shareholder’s equity but are excluded from net income. Other comprehensive income (loss) consists of foreign currency translation adjustment from those subsidiaries not using the U.S. dollar as their functional currency. |
Income Tax, Policy [Policy Text Block] | 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, 2017 and 2016. 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, 2017 and 2016. All tax returns since the Company’s inception are subject to examination by tax authorities. |
Value Added Tax [Policy Text Block] | Value Added Tax (“VAT”) The Company is subject to VAT for selling merchandise. The applicable VAT rate is 13% or 17% (depending on the type of goods involved) for products sold in the PRC. |
Earnings (loss) per Share (“EPS”) [Policy Text Block] | 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, 2017, there were 1,078,045 not included in the diluted loss per share as they would be anti-dilutive. |
Statement Of Cash Flows [Policy Text Block] | Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets |
Reclassification, Policy [Policy Text Block] | Reclassification In connection with the discontinued operation of the EDLC business, certain prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications had no effect on net income or cash flows as previously reported. |
Risks And Uncertainties [Policy Text Block] | 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 to fiscal years beginning after December 31, 2017, and interim periods within those fiscal years, with early adoption permitted for reporting periods beginning after December 15, 2016. Subsequently, the FASB issued ASUs in 2016 containing implementation guidance related to ASU 2014-09, including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which is intended to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which contains certain provisions and practical expedients in response to identified implementation issues; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which is intended to clarify the Codification or to correct unintended application of guidance. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. The Company adopted ASU 2014-09 and the related ASUs on January 1, 2018 using the modified retrospective method, which will not result in a cumulative catch-up adjustment to the opening balance sheet of retained earnings at the effective date. In September 2017, the FASB has issued ASU No. 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02. Recent accounting pronouncements Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 also impacts certain other areas, such as the accounting for costs to obtain or fulfill a contract. The standard also requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has performed an assessment of our revenue contracts and concluded that there will be no change to (1) the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606, which includes product sales, (2) the presentation of revenue as gross versus net, or (3) the amount of capitalized contract costs upon adoption of Topic 606. Because there will be no change to the timing and pattern of revenue recognition, we believe there will be no material changes to the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about the entity’s leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. A modified retrospective approach is required. The Company anticipates the adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial position; however, the Company does not believe adoption will have a material impact on the Company’s results of operations. The Company believes the most significant impact relates to our accounting for operating leases for office space and equipment. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Basically, these amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments in this ASU first, require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and second, remove the evaluation of whether a market participant could replace missing elements. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05 (“ASU 2017-05”) to provide guidance for recognizing gains and losses from the transfer of nonfinancial assets and in-substance nonfinancial assets in contracts with non-customers, unless other specific guidance applies. The standard requires a company to derecognize nonfinancial assets once it transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset. Additionally, when a company transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling ownership interest, the company is required to measure any noncontrolling interest it receives or retains at fair value. The guidance requires companies to recognize a full gain or loss on the transaction. As a result of the new guidance, the guidance specific to real estate sales in ASC 360-20 will be eliminated. ASU 2017-05 is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The effective date of this guidance coincides with revenue recognition guidance. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In March 2018, the FASB issued ASU 2018-05 Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”), which amends the FASB Accounting Standards Codification and XBRL Taxonomy based on the Tax Cuts and Jobs Act (the “Act”) that was signed into law on December 22, 2017 and Staff Accounting Bulletin No. 118 (“SAB 118”) that was released by the Securities and Exchange Commission. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international tax consequences for many companies that operate internationally. The Company does not believe this guidance will have a material impact on its consolidated financial statements. |
Summary of significant accoun31
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following assets and liabilities of the consolidated VIE are included in the accompanying consolidated financial statements of the Company as of December 31, 2017: December 31, 2017 Current assets $ 16,760,444 Non-current assets 36,352,228 Total assets 53,112,672 Current liabilities (21,695,054) Non-current liabilities (2,086,086) Total liabilities $ (23,781,140) |
Property Plant And Equipment Useful Life [Table Text Block] | The estimated useful lives for significant property and equipment are as follows: Buildings 20 Machinery and equipment 5 10 Transportation equipment 4 Office equipment 4 5 Electronic equipment 3 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Goodwill Indefinite Licenses and permit Indefinite Software 3 10 Land use right 50 Patents 10 |
Schedule of Differences between Reported Amount and Reporting Currency Denominated Amount [Table Text Block] | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2017 December 31, 2016 December 31, 2015 US$:RMB exchange rate Period End $ 0.1537 Period End $ 0.1440 Period End $ 0.1541 Average $ 0.1478 Average $ 0.1506 Average $ 0.1606 |
Acquisition of E-Motors (Tables
Acquisition of E-Motors (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price allocation to assets acquired and liabilities assumed as of the date of acquisition was as follows: Amounts Cash acquired $ 37,132 Restricted cash 23,055 Accounts receivable, net 4,495,690 Accounts receivable from related parties, net 3,434,845 Manufacturer rebate receivable 6,209,480 Inventories, net 2,404,668 Advances to suppliers, net 1,233,274 Due from related party 385,083 Other current assets 1,608,333 Property, plant and equipment, net 1,584,652 Patents and software 2,050,923 Electronic vehicle registered license 13,907,238 Accounts payable (6,101,767) Accrued liabilities and other current liabilities (6,444,440) Deferred tax liability (1,884,603) Noncontrolling interest (9,583,646) Goodwill 9,001,923 Total consideration $ 22,361,840 |
Disposal of Certain Assets of33
Disposal of Certain Assets of Tantech Energy (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The financial results of the disposed EDLC business line are set forth below. For the year ended December 31, 2017 2016 2015 Revenue $ 3,402,405 $ 7,133,079 $ 12,015,364 Cost of revenues (1,433,301) (6,645,824) (9,864,991) Gross profit 1,969,104 487,255 2,150,373 Operating expenses (4,100,079) (2,798,681) (2,405) (Loss) Income from operations (2,130,975) (2,311,426) 2,147,968 Gain on disposal of EDLC 1,948,490 - - Other income (expense), net 219,971 (2,051) 3,566 Net income (loss) before tax 37,486 (2,313,477) 2,151,534 Income taxes (7,168) - (261,800) Income (loss) from discontinued operations $ 30,318 $ (2,313,477) $ 1,889,734 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following: December 31 December 31, Accounts receivable $ 52,201,869 $ 41,577,348 Accounts receivable related parties * 3,434,845 - Allowance for doubtful accounts (3,879,219) (936,456) 51,757,495 40,640,892 Less: account receivable long term portion from continuing operations ** (1,502,518) - Accounts receivable short term portion, net $ 50,254,977 $ 40,640,892 Including: Accounts receivable short term portion from continuing operations, net $ 44,834,930 $ 35,904,345 Accounts receivable short term portion from EDLC business net $ 5,420,047 $ 4,736,547 Accounts receivable short term portion, net $ 50,254,977 $ 40,640,892 * As of December 31, 2017, the Company had total accounts receivable balances of $ 3,434,845 The Company collected back approximately $ 2.2 14.5 **representing the non-current portion of accounts receivable resulted from disposition of certain assets in Tantech Energy (Note 5). |
Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Allowance For Doubtful Accounts [Table Text Block] | Years ended December 31, 2017 2016 Balance at beginning of year $ 936,456 $ 1,224,364 Addition to doubtful accounts expense 2,768,948 547,176 Deduction collection of doubtful accounts - (748,241) Translation adjustments 173,815 (86,843) Balance at end of year $ 3,879,219 $ 936,456 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consisted of the following: December 31, December 31, Raw materials $ 1,649,403 $ 822,538 Finished products 321,473 282,783 Work in process 876,003 153,261 Subtotal 2,846,879 1,258,582 Inventory reserve (84,863) (59,832) 2,762,016 1,198,750 Less: inventory from discontinued operations - 123,177 Inventory from continuing operations $ 2,762,016 $ 1,075,573 |
Advances to suppliers (Tables)
Advances to suppliers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Advances to suppliers [Line Items] | |
Schedule Of Advances To Suppliers, Current [Table Text Block] | Advances to suppliers - current December 31, December 31, Advances to suppliers $ 22,285,733 $ 16,465,072 Allowance for doubtful accounts (4,764,768) (1,670,521) Advances to suppliers, net $ 17,520,965 $ 14,794,551 Including: Advances to suppliers from continuing operations, net $ 11,290,625 $ 10,055,316 Advances to suppliers from EDLC business, net $ 6,230,340 $ 4,739,235 Advances to suppliers, net $ 17,520,965 $ 14,794,551 |
Schedule Of Advances To Suppliers, Non-Current [Table Text Block] | Advances to suppliers - long term December 31, December 31, Zhejiang Longquanzhixin Commercial & Trade Co., Ltd * $ 1,647,905 $ 8,638,260 Zhibo Jieli Special Battery Material Co., Ltd ** 461,100 - Advances to suppliers - long term, net $ 2,109,005 $ 8,638,260 * representing the prepayments made to ensure continuous high-quality supply and favorable purchase prices. On December 15, 2016, the Company entered into a long-term supply agreement with Zhejiang Longquanzhixin Commercial & Trade Co., Ltd. (“ZLCT”) to make an advance payment of $ 8,638,260 60,000,000 1,650 13,000 ** representing the prepayments made to acquire machinery. |
Advances To Suppliers [Member] | |
Advances to suppliers [Line Items] | |
Schedule of Allowance For Doubtful Accounts [Table Text Block] | An analysis of the allowance for doubtful accounts for the years ended December 31, 2017 and 2016 is as follows: Years ended December 31, 2017 2016 Balance at beginning of year $ 1,670,521 $ 306,915 Addition to doubtful accounts expense 2,947,657 1,458,381 Deduction utilization or return of advances (80,740) (22,141) Translation adjustments 227,330 (72,634) Balance at end of year $ 4,764,768 $ 1,670,521 |
Property, plant and equipment37
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment stated at cost less accumulated depreciation consisted of the following: December 31, December 31, Building $ 13,430,892 $ 11,936,896 Machinery and Production equipment 2,831,180 2,795,133 Electronic equipment 312,667 236,890 Office equipment 75,097 46,988 Automobiles 655,897 212,167 Subtotal 17,305,733 15,228,074 Accumulated depreciation (7,421,887) (5,958,240) 9,883,846 9,269,834 Less: Property, plant and equipment, net for discontinued operations - 591,857 Property, plant and equipment, net for continuing operations $ 9,883,846 $ 8,677,977 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | December 31, December 31, Software $ 761,052 $ 702,666 Electronic vehicle registered license (Note 4) 13,907,238 - Land use rights* 1,982,926 1,857,410 Patents** 4,611,000 - Total 21,262,216 2,560,076 Less: Accumulated amortization (3,785,786) (771,898) Intangible assets, net $ 17,476,430 $ 1,788,178 *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 1,365,030 1,522,564 50 5 201,647 39,659 9,811 |
Short-term bank loans (Tables)
Short-term bank loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The Company’s short-term bank loans consist of the following: December 31, December 31, Loan payable to Hangzhou Bank (a) $ $ 287,942 Loan payable to Bank of China Lishui Branch (b) 5,208,893 4,967,000 Loan payable to SPD bank (c) - 1,439,710 Total $ 5,208,893 $ 6,694,652 (a) On March 28, 2016, the Company entered into a short-term loan agreement with Hangzhou Bank (Lishui Branch) to borrow $ 287,942 2 4.35 (b) On May 10, 2016, the Company entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $ 2,087,580 14.5 5.88 2,879,420 20 5.66 (c) On August 16, 2016, the Company entered into a short-term loan agreement with Shanghai Pudong Development Bank to borrow $ 1,439,710 10 5.046 |
Bank acceptance notes payable (
Bank acceptance notes payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Bank acceptance notes payable consisted of the following: December 31, December 31, Bank acceptance notes payable issued by Bank of Hangzhou Lishui Branch (a) $ - $ 287,942 Letter of credit issued by Shanghai Pudong Development Bank Lishui Branch (b) 3,074,000 1,439,710 Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch (c) 3,901,526 Total $ 6,975,526 $ 1,727,652 (a) Bank acceptance notes payable issued by Bank of Hangzhou, Lishui Branch have due date of March 21, 2017 100 (b) Letter of credit of $ 1,439,710 August 16, 2017 3,074,000 4.5 (c) Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch with due dates from April 20, 2018 to July 3, 2018. The Company is required to maintain restricted cash deposits at 100 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | The balances due to related parties were as follows: December 31, December 31, Dr. Henglong Chen and its affiliates * $ 240,462 $ - Mr. Yulong Chen, a shareholder of the Company 1,537,000 - Forasen Group, controlled by Mr. Zhengyu Wang, Chairman and CEO of the Company 1,217,766 - Total $ 2,995,228 $ - * Dr. Henglong Chen is the original shareholder of E-Motors (Note 4). The Company acquired his 70 2,500,000 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Reconciliation of non controlling interest [Table Text Block] | December 31, December 31, Beginning Balance $ - $ 3,444,342 Noncontrolling interest through acquisition of E-Motors (Note 4) 9,583,646 Proportionate shares of net (loss) income (754,084) 308,442 Capital contribution by a minority shareholder Buyback of Noncontrolling interest (a) - (2,160,142) Gain on Noncontrolling interest buyback (a) - (1,354,229) Foreign currency transaction adjustment (30,102) (238,413) Total $ 8,799,460 $ - (a) On June 24, 2016, Tantech BVI, through its wholly owned subsidiary, Lishui Tantech, entered into an equity purchase agreement with the five individuals who holds the 5% equity interest of Tantech Bamboo. Pursuant to the equity purchase agreement, Tantech BVI issued 1,018,935 5 95 100 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Taxes [Abstract] | |
Schedule Of Taxes Payable [Table Text Block] | Taxes payable as of December 31, 2017 and 2016 consist of the following: December 31, December 31, Corporation income tax payable $ 551,610 $ 441,084 Other tax payable 244,572 279,408 Total $ 796,182 $ 720,492 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table reconciles PRC statutory rates to the Company’s effective tax rates for the years ended December 31, 2017 and 2016: Years ended December 31, 2017 2016 2015 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (a) (10) % (10) % (12) % Permanent difference 2 % 1 % 5 % Changes of deferred tax assets valuation allowances 17 % - % 5 % Total 34 % 16 % 23 % (a) Two of the Company’s subsidiaries, Tantech Bamboo and Tantech Energy are subject to tax rate of 15 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income tax consisted of the following: Years ended December 31, 2017 2016 2015 Current $ 1,334,254 $ 1,465,744 $ 2,115,915 Deferred 193,749 (98,474) - Total $ 1,528,003 $ 1,367,270 $ 2,115,915 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of deferred tax assets and liabilities are as follows: December 31, December 31, Deferred tax assets: Allowance for doubtful accounts and other reserves $ 1,682,706 $ 564,556 Valuation allowance (1,682,706) (470,403) Total $ - $ 94,153 Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 2,086,086 $ - Total $ 2,086,086 $ - |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Consumer product Trading EV Total 2017 2016 2015 2017 2016 2015 2017 2017 2016 2015 Revenue from external customers $ 32,675,933 $ 39,978,902 $ 43,235,065 $ 1,829,475 $ 553,693 $ 3,579,471 $ 8,578,988 $ 43,084,397 $ 40,532,595 $ 46,814,536 Revenue from inter segment (2,736,204) 576,302 736,527 (24,550) 12,345 11,988 - (2,760,754) 588,647 748,515 Cost of revenue 24,357,432 27,450,566 28,618,875 1,412,061 25,504 3,463,818 6,636,402 32,405,887 27,476,070 32,082,693 Gross profit 8,318,510 12,528,336 14,616,190 417,414 528,189 115,653 1,942,586 10,678,510 13,056,525 14,731,843 Interest Expenses 290,797 341,697 324,643 124,586 128,959 85,828 136,161 551,545 470,656 410,471 Depreciation & amortization 506,027 522,770 239,170 25,345 51,141 72,715 299,075 814,942 573,911 311,885 Capital expenditure 74,202 10,819 242,552 - - - 8,061 82,263 10,819 242,552 Segment assets 83,024,439 92,878,334 84,205,232 5,988,364 1,424,333 2,071,215 49,474,923 138,487,726 94,302,667 86,276,447 Segment profit $ 5,293,269 $ 7,070,925 $ 6,302,893 $ 203,157 $ (149,755) $ 734,126 $ (2,513,613) $ 2,982,813 $ 6,921,170 $ 7,037,019 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Geographic information about the revenues, which are classified based on customers, is set out as follows: Years ended December 31, 2017 2016 2015 Revenue from China $ 43,084,397 $ 39,976,470 $ 46,114,044 Revenue directly from foreign countries - 556,125 700,492 Total Revenue $ 43,084,397 $ 40,532,595 $ 46,814,536 |
Organization and nature of bu45
Organization and nature of business (Details Textual) - shares | 1 Months Ended | |||
Dec. 28, 2016 | Dec. 31, 2017 | Jul. 12, 2017 | Aug. 19, 2015 | |
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 70.00% | ||
Euroasia [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||
Suzhou E Motors Co Ltd [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 70.00% | 70.00% | ||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | |||
Hangzhou Jiyi Trading Co., Ltd [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||
USCNHK [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||
Tantech Bamboo [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 5.00% | 100.00% | 95.00% | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,018,935 |
Summary of significant accoun46
Summary of significant accounting policies (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | $ 89,244,885 | $ 63,656,829 |
Total Assets | 138,487,726 | 94,302,667 |
Current liabilities | (26,789,262) | (14,096,598) |
Total Liabilities | (28,875,348) | $ (14,096,598) |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets | 16,760,444 | |
Non-current assets | 36,352,228 | |
Total Assets | 53,112,672 | |
Current liabilities | (21,695,054) | |
Non-current liabilities | (2,086,086) | |
Total Liabilities | $ (23,781,140) |
Summary of significant accoun47
Summary of significant accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Transportation equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Electronic equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Summary of significant accoun48
Summary of significant accounting policies (Details 2) | 12 Months Ended |
Dec. 31, 2017 | |
Computer Software, Intangible Asset [Member] | Maximum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Computer Software, Intangible Asset [Member] | Minimum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Use Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 50 years |
Patents [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Summary of significant accoun49
Summary of significant accounting policies (Details 3) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign Currency Translation [Abstract] | |||
Foreign Currency Exchange Rate, Translation | 0.1537 | 0.1440 | 0.1541 |
Foreign Currrency Average Exchange Rate Translation | 0.1478 | 0.1506 | 0.1606 |
Summary of significant accoun50
Summary of significant accounting policies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2017shares | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted Cash Minimum Balance Maintain Percentage | 19.00% | ||
Foreign Currency Exchange Rate, Translation | 0.1537 | 0.1440 | 0.1541 |
Value Added Tax Description | The Company is subject to VAT for selling merchandise. The applicable VAT rate is 13% or 17% (depending on the type of goods involved) for products sold in the PRC. | ||
Foreign Currency Average Exchange Rate Translation | 0.1478 | 0.1506 | 0.1606 |
Warrant [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,078,045 | ||
Suzhou E-Motor [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% |
Liquidity (Details Textual)
Liquidity (Details Textual) ¥ in Millions | May 06, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 06, 2016USD ($) | Jun. 06, 2016CNY (¥) | May 10, 2016USD ($) | May 10, 2016CNY (¥) | Mar. 28, 2016USD ($) | Mar. 28, 2016CNY (¥) | Dec. 31, 2014USD ($) |
Proceeds from Issuance of Common Stock | $ 5,600,000 | $ 5,968,208 | $ 7,957,100 | $ 5,663,122 | ||||||||
Cash and Cash Equivalents, at Carrying Value | 9,941,040 | 5,942,842 | 6,273,389 | $ 415,275 | ||||||||
Short-term Bank Loans and Notes Payable | 5,208,893 | 6,694,652 | $ 2,879,420 | ¥ 20 | $ 2,087,580 | ¥ 14.5 | $ 287,942 | ¥ 2 | ||||
Notes Payable to Bank, Current | 6,975,526 | 1,727,652 | ||||||||||
Increase (Decrease) in Accounts Receivable | 1,378,315 | 3,192,557 | 212,550 | |||||||||
Increase (Decrease) in Prepaid Supplies | (4,127,511) | 11,438,701 | 5,762,321 | |||||||||
Restricted Cash | 9,800,000 | |||||||||||
Payments to Acquire Businesses, Gross | $ 4,552,240 | $ 3,372,925 | $ 8,030,000 | |||||||||
Continuing Operations [Member] | Scenario, Forecast [Member] | ||||||||||||
Increase (Decrease) in Accounts Receivable | $ 16,400,000 | |||||||||||
Increase (Decrease) in Prepaid Supplies | 2,400,000 | |||||||||||
Discontinued Operations [Member] | Scenario, Forecast [Member] | ||||||||||||
Increase (Decrease) in Accounts Receivable | 5,400,000 | |||||||||||
Increase (Decrease) in Prepaid Supplies | $ 1,000,000 |
Acquisition of E-Motors (Detail
Acquisition of E-Motors (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill | $ 9,001,924 | $ 0 |
Related Party [Member] | ||
Accounts receivable from related parties, net | 3,434,845 | |
Patents [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,050,923 | |
Electronic vehicle registered license [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 13,907,238 | |
Suzhou E Motors Co Ltd [Member] | ||
Cash acquired | 37,132 | |
Restricted cash | 23,055 | |
Accounts receivable, net | 4,495,690 | |
Manufacturer rebate receivable | 6,209,480 | |
Inventories, net | 2,404,668 | |
Advances to suppliers, net | 1,233,274 | |
Due from related party | 385,083 | |
Other current assets | 1,608,333 | |
Property, plant and equipment, net | 1,584,652 | |
Accounts payable | (6,101,767) | |
Accrued liabilities and other current liabilities | (6,444,440) | |
Deferred tax liability | (1,884,603) | |
Noncontrolling interest | (9,583,646) | |
Goodwill | 9,001,923 | |
Total consideration | $ 22,361,840 |
Acquisition of E-Motors (Deta53
Acquisition of E-Motors (Details Textual) | Jul. 12, 2017USD ($)shares | Jul. 12, 2017CNY (¥)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 70.00% | |||
Payments to Acquire Businesses, Gross | $ 4,552,240 | $ 3,372,925 | $ 8,030,000 | ||
Suzhou E Motors Co Ltd [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | ||||
Payments to Acquire Businesses, Gross | $ 15,861,840 | ¥ 103,200,000 | |||
Suzhou E Motors Co Ltd [Member] | Electronic Registered License [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 13,907,238 | ||||
Suzhou E Motors Co Ltd [Member] | Restricted Common Shares [Member] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,500,000 | 2,500,000 | |||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 6,500,000 |
Disposal of Certain Assets of54
Disposal of Certain Assets of Tantech Energy (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | $ 3,402,405 | $ 7,133,079 | $ 12,015,364 |
Cost of revenues | (1,433,301) | (6,645,824) | (9,864,991) |
Gross profit | 1,969,104 | 487,255 | 2,150,373 |
Operating expenses | (4,100,079) | (2,798,681) | (2,405) |
(Loss) Income from operations | (2,130,975) | (2,311,426) | 2,147,968 |
Gain on disposal of EDLC | 1,948,490 | 0 | 0 |
Other income (expense), net | 219,971 | (2,051) | 3,566 |
Net income (loss) before tax | 37,486 | (2,313,477) | 2,151,534 |
Income taxes | (7,168) | 0 | (261,800) |
Income (loss) from discontinued operations | $ 30,318 | $ (2,313,477) | $ 1,889,734 |
Disposal of Certain Assets of55
Disposal of Certain Assets of Tantech Energy (Details Textual) ¥ in Thousands | Dec. 14, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 14, 2017CNY (¥) | |
Property, Plant and Equipment, Net | $ 9,883,846 | $ 8,677,977 | ||||||||||
Gain (Loss) on Disposition of Property Plant Equipment | 0 | 0 | $ (197,026) | |||||||||
Accounts Receivable, Net, Noncurrent | [1] | 1,502,518 | $ 0 | |||||||||
Operating Leases, Future Minimum Payments Receivable, Current | $ 0 | |||||||||||
Operating Leases, Future Minimum Payments Receivable, in Two Years | $ 0 | |||||||||||
Operating Leases, Future Minimum Payments Receivable, in Three Years | $ 50,750 | |||||||||||
Operating Leases, Future Minimum Payments Receivable, in Four Years | $ 58,000 | |||||||||||
Operating Leases, Future Minimum Payments Receivable, in Five Years | $ 65,250 | |||||||||||
Electric Double Layer Capacitor [Member] | ||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 2,459,200 | ¥ 16,000 | ||||||||||
Disposal Group, Including Discontinued Operation Initial Down Payment Due | 700,000 | ¥ 4,480 | ||||||||||
Property, Plant and Equipment, Net | 432,929 | |||||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,948,490 | |||||||||||
Account Receivable From Purchaser | $ 1,770,624 | |||||||||||
[1] | representing the non-current portion of accounts receivable resulted from disposition of certain assets in Tantech Energy (Note 5). |
Accounts receivable (Details)
Accounts receivable (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 52,201,869 | $ 41,577,348 | |
Accounts receivable - related parties | [1] | 3,434,845 | 0 |
Allowance for doubtful accounts | (3,879,219) | (936,456) | |
Accounts Receivable, Net | 51,757,495 | 40,640,892 | |
Less: account receivable - long term portion from continuing operations | [2] | (1,502,518) | 0 |
Accounts receivable - short term portion, net | 50,254,977 | 40,640,892 | |
Including: | |||
Accounts receivable - short term portion from continuing operations, net | 44,834,930 | 35,904,345 | |
Accounts receivable - short term portion from EDLC business net | $ 5,420,047 | $ 4,736,547 | |
[1] | As of December 31, 2017, the Company had total accounts receivable balances of $3,434,845 due from the affiliates of the original shareholders of E-Motors. E-Motors did not have related party’s sales to these two related parties after being acquired by the Company on July 12, 2017 (Note 4). The Company collected back approximately $2.2 million (RMB 14.5 million) from these two related parties by May 6, 2018 and expects to collect the remaining balance by June 30, 2018. | ||
[2] | representing the non-current portion of accounts receivable resulted from disposition of certain assets in Tantech Energy (Note 5). |
Accounts receivable (Details 1)
Accounts receivable (Details 1) - Accounts Receivable [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of year | $ 936,456 | $ 1,224,364 |
Addition to doubtful accounts expense | 2,768,948 | 547,176 |
Deduction - collection of doubtful accounts | 0 | (748,241) |
Translation adjustments | 173,815 | (86,843) |
Balance at end of year | $ 3,879,219 | $ 936,456 |
Accounts receivable (Details Te
Accounts receivable (Details Textual) ¥ in Millions | May 06, 2018USD ($) | May 06, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts Receivable, Related Parties | [1] | $ 3,434,845 | $ 0 | |||
Increase (Decrease) in Accounts Receivable | 1,378,315 | $ 3,192,557 | $ 212,550 | |||
Suzhou E Motors Co Ltd [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts Receivable, Related Parties | $ 3,434,845 | |||||
Scenario, Forecast [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collection of Accounts Receivable Description | Approximately $16.4 million or 37% of the accounts receivable balances (including $2.2 million accounts receivable from related parties) from continuing operations (equivalent to approximately $23.8 million) | Approximately $16.4 million or 37% of the accounts receivable balances (including $2.2 million accounts receivable from related parties) from continuing operations (equivalent to approximately $23.8 million) | ||||
Cash Collected From Related Party In Payment Of Accounts Receivable | $ 2,200,000 | ¥ 14.5 | ||||
Due from Related Parties, Noncurrent | 2,200,000 | |||||
Scenario, Forecast [Member] | Discontinued Operations [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Increase (Decrease) in Accounts Receivable | 5,400,000 | |||||
Scenario, Forecast [Member] | Continuing Operations [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Increase (Decrease) in Accounts Receivable | $ 16,400,000 | |||||
Accounts Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Concentration Risk, Percentage | 43.00% | |||||
Accounts Receivable [Member] | Scenario, Forecast [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Concentration Risk, Percentage | 37.00% | 37.00% | ||||
Proceeds from Collection of Other Receivables | $ 23,800,000 | |||||
Accounts Receivable [Member] | Scenario, Forecast [Member] | Discontinued Operations [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Proceeds from Collection of Other Receivables | $ 5,400,000 | |||||
[1] | As of December 31, 2017, the Company had total accounts receivable balances of $3,434,845 due from the affiliates of the original shareholders of E-Motors. E-Motors did not have related party’s sales to these two related parties after being acquired by the Company on July 12, 2017 (Note 4). The Company collected back approximately $2.2 million (RMB 14.5 million) from these two related parties by May 6, 2018 and expects to collect the remaining balance by June 30, 2018. |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 1,649,403 | $ 822,538 |
Finished products | 321,473 | 282,783 |
Work in process | 876,003 | 153,261 |
Subtotal | 2,846,879 | 1,258,582 |
Inventory reserve | (84,863) | (59,832) |
Inventory from continuing operations | 2,762,016 | 1,075,573 |
Inventory Net Include Discontinued Operations | 2,762,016 | 1,198,750 |
Less: inventory from discontinued operations | $ 0 | $ 123,177 |
Advances to suppliers (Details)
Advances to suppliers (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Advances to suppliers [Line Items] | ||
Advances to suppliers | $ 22,285,733 | $ 16,465,072 |
Allowance for doubtful accounts | (4,764,768) | (1,670,521) |
Advances to suppliers, net | 17,520,965 | 14,794,551 |
Including [Abstract] | ||
Advances to Suppliers from Continuing Operations, Net | 11,290,625 | 10,055,316 |
Advances to suppliers from EDLC business, net | $ 6,230,340 | $ 4,739,235 |
Advances to suppliers (Details
Advances to suppliers (Details 1) - Advances to suppliers [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Advances to suppliers [Line Items] | ||
Balance at beginning of year | $ 1,670,521 | $ 306,915 |
Addition to doubtful accounts expense | 2,947,657 | 1,458,381 |
Deduction - utilization or return of advances | (80,740) | (22,141) |
Translation adjustments | 227,330 | (72,634) |
Balance at end of year | $ 4,764,768 | $ 1,670,521 |
Advances to suppliers (Detail62
Advances to suppliers (Details 2) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |||
Advances On Inventory Purchases, Non Current | $ 2,109,005 | $ 8,638,260 | ||||
Zhejiang Longquanzhixin Commercial & Trade Co., Ltd [Member] | ||||||
Advances On Inventory Purchases, Non Current | 1,647,905 | [1] | 8,638,260 | [1] | ¥ 60,000,000 | |
Zhibo Jieli Special Battery Material Co., Ltd [Member] | ||||||
Advances On Inventory Purchases, Non Current | [2] | $ 461,100 | $ 0 | |||
[1] | representing the prepayments made to ensure continuous high-quality supply and favorable purchase prices. On December 15, 2016, the Company entered into a long-term supply agreement with Zhejiang Longquanzhixin Commercial & Trade Co., Ltd. (“ZLCT”) to make an advance payment of $8,638,260 million (RMB 60,000,000) as of December 31, 2016. The purpose of the prepayment is to support ZLCT to purchase local bamboo forests (approximately 1,650 acres) and expand its operations. Meanwhile, the Company is guaranteed to receive steady supplies from ZLCT of minimum 13,000 tons of charcoal raw material annually with a fixed purchase price for the next three years. Advances will be offset through bamboo raw material purchases until the advances are fully utilized. | |||||
[2] | representing the prepayments made to acquire machinery. |
Advances to suppliers (Detail63
Advances to suppliers (Details Textual) | May 06, 2018USD ($) | Dec. 31, 2017USD ($)at | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | ||
Advances On Inventory Purchases, Non Current | $ 2,109,005 | $ 8,638,260 | ||||
Number Of Guaranteed Supplies | t | 13,000 | |||||
Area of Land | a | 1,650 | |||||
Advances on Inventory Purchases | $ 17,520,965 | 14,794,551 | ||||
Advances To Suppliers [Member] | ||||||
Concentration Risk, Percentage | 21.00% | |||||
Advances To Suppliers [Member] | Scenario, Forecast [Member] | Continuing Operations [Member] | ||||||
Proceeds from Collection of Advance to Affiliate | $ 2,400,000 | |||||
Advances To Suppliers [Member] | Scenario, Forecast [Member] | Discontinued Operations [Member] | ||||||
Proceeds from Collection of Advance to Affiliate | $ 1,000,000 | |||||
Zhejiang Longquanzhixin Commercial & Trade Co., Ltd [Member] | ||||||
Advances On Inventory Purchases, Non Current | 1,647,905 | [1] | $ 8,638,260 | [1] | ¥ 60,000,000 | |
Longquan Zhixin Trading Co., Ltd [Member] | ||||||
Advances on Inventory Purchases | $ 5,900,000 | |||||
[1] | representing the prepayments made to ensure continuous high-quality supply and favorable purchase prices. On December 15, 2016, the Company entered into a long-term supply agreement with Zhejiang Longquanzhixin Commercial & Trade Co., Ltd. (“ZLCT”) to make an advance payment of $8,638,260 million (RMB 60,000,000) as of December 31, 2016. The purpose of the prepayment is to support ZLCT to purchase local bamboo forests (approximately 1,650 acres) and expand its operations. Meanwhile, the Company is guaranteed to receive steady supplies from ZLCT of minimum 13,000 tons of charcoal raw material annually with a fixed purchase price for the next three years. Advances will be offset through bamboo raw material purchases until the advances are fully utilized. |
Manufacturing Rebate Receivab64
Manufacturing Rebate Receivable (Details Textual) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Manufacturing Rebate Receivables | $ 9,269,118 | $ 9,269,118 | $ 0 | |
Number of Qualified Electric Buses Sold | 100 | |||
Increase Decrease In Manufacturing Rebate Receivable | 2,942,190 | 0 | $ 0 | |
Manufacturing Rebate Receivables Related to Fisacal Year Two Thousand Sixteen | $ 6,209,480 | 6,209,480 | ||
Manufacturing Rebate Receivables Related to Fisacal Year Two Thousand Seventeen | 3,059,638 | 3,059,638 | ||
Suzhou E-Motor [Member] | ||||
Manufacturing Rebate Receivables | $ 29,400 | $ 29,400 | $ 60,200 |
Property, plant and equipment65
Property, plant and equipment, net (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 17,305,733 | $ 15,228,074 |
Accumulated depreciation | (7,421,887) | (5,958,240) |
Property, plant and equipment, net for continuing operations | 9,883,846 | 8,677,977 |
Less: Property, plant and equipment, net for discontinued operations | 0 | 591,857 |
Property Plant And Equipment Net Include Discontinued Operations | 9,883,846 | 9,269,834 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 13,430,892 | 11,936,896 |
Machinery and Production equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 2,831,180 | 2,795,133 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 312,667 | 236,890 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 75,097 | 46,988 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 655,897 | $ 212,167 |
Property, plant and equipment66
Property, plant and equipment, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 613,296 | $ 534,252 | $ 546,528 |
Intangible assets, net (Details
Intangible assets, net (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 21,262,216 | $ 2,560,076 | |
Less: Accumulated amortization | (3,785,786) | (771,898) | |
Intangible assets, net | 17,476,430 | 1,788,178 | |
Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 761,052 | 702,666 | |
Electronic Vehicle Registered License [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 13,907,238 | ||
Land Use Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | [1] | 1,982,926 | 1,857,410 |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | [2] | $ 4,611,000 | |
[1] | 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, 2017, and 2016, land use rights with net book value of $1,365,030 and $1,522,564, respectively, were pledged as collateral for bank loans. The land use rights are amortized over 50 years and the software is amortized over 5 years. Amortization expense for intangible assets for the years ended December 31, 2017, 2016 and 2015 totaled $201,647, $39,659 and $9,811, respectively. | ||
[2] | Patents on specialty electric vehicles resulted from the acquisition of Suzhou E-Motors (Note 4). |
Intangible assets, net (Detai68
Intangible assets, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 201,647 | $ 39,659 | $ 9,811 |
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years | ||
Land Use Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 1,365,030 | $ 1,522,564 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 50 years |
Short-term bank loans (Details)
Short-term bank loans (Details) ¥ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 06, 2016USD ($) | Jun. 06, 2016CNY (¥) | May 10, 2016USD ($) | May 10, 2016CNY (¥) | Mar. 28, 2016USD ($) | Mar. 28, 2016CNY (¥) | |
Short-term Bank Loans and Notes Payable | $ 5,208,893 | $ 6,694,652 | $ 2,879,420 | ¥ 20 | $ 2,087,580 | ¥ 14.5 | $ 287,942 | ¥ 2 | |
Loan payable One [Member] | Hangzhou Bank [Member] | |||||||||
Short-term Bank Loans and Notes Payable | [1] | 287,942 | |||||||
Loan payable Two [Member] | Bank of China Lishui Branch [Member] | |||||||||
Short-term Bank Loans and Notes Payable | [2] | 5,208,893 | 4,967,000 | ||||||
Loan payable Three [Member] | SPD Bank [Member] | |||||||||
Short-term Bank Loans and Notes Payable | [3] | $ 0 | $ 1,439,710 | ||||||
[1] | On March 28, 2016, the Company entered into a short-term loan agreement with Hangzhou Bank (Lishui Branch) to borrow $287,942 (RMB 2 million) for a year with fixed annual interest rate of 4.35%. The purpose of the borrowing is to fund working capital needs. The loan was guaranteed by a third party, China Pacific Property Insurance Co. Ltd. The loan was repaid on maturity date in 2017. | ||||||||
[2] | On May 10, 2016, the Company entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $2,087,580 (RMB 14.5 million) for a year with fixed annual interest rate of 5.88%. In addition, on June 6, 2016, the Company entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $2,879,420 (RMB 20 million) for a year with a floating rate, the annual rate as of the period ended is 5.66%. These loans were for working capital purchases and were guaranteed by related party Mr. Zhengyu Wang and his wife Ms. Yefang Zhang, as well related party Lisui Jiuanju Trading Co,, Ltd., and a third-party Zhejiang Meifeng Tea Industry Co., Ltd. These loans were fully repaid upon maturity. | ||||||||
[3] | On August 16, 2016, the Company entered into a short-term loan agreement with Shanghai Pudong Development Bank to borrow $1,439,710 (RMB 10 million) for a year with fixed annual interest rate of 5.046%. The purpose of the loan is to fund working capital needs. The loan was guaranteed by Tantech Energy and three related parties, Yefang Zhang, Zhengyu Wang and Forasen Group. The loan was repaid on maturity date in 2017. |
Short-term bank loans (Details
Short-term bank loans (Details Textual) | 1 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 14, 2017USD ($) | Sep. 26, 2017USD ($) | Sep. 26, 2017CNY (¥) | Mar. 30, 2017CNY (¥) | Aug. 16, 2016USD ($) | Aug. 16, 2016CNY (¥) | Jun. 06, 2016USD ($) | Jun. 06, 2016CNY (¥) | May 10, 2016USD ($) | May 10, 2016CNY (¥) | Mar. 28, 2016USD ($) | Mar. 28, 2016CNY (¥) | ||
Short-term Debt [Line Items] | |||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 5,208,893 | $ 6,694,652 | $ 2,879,420 | ¥ 20,000,000 | $ 2,087,580 | ¥ 14,500,000 | $ 287,942 | ¥ 2,000,000 | |||||||||
Debt Instrument, Maturity Date | Sep. 29, 2017 | ||||||||||||||||
Interest Paid | $ 479,358 | $ 261,625 | [1] | $ 411,805 | |||||||||||||
Tantech Bamboo [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 1,439,710 | ¥ 10,000,000 | |||||||||||||||
Lishui Jiuanju Trading Co., Ltd. and Zhengyu Wang [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 3,930,109 | ||||||||||||||||
Loans Payable [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.66% | 5.66% | 5.88% | 5.88% | 4.35% | 4.35% | |||||||||||
Loans Payable [Member] | Tantech Bamboo [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.046% | 5.046% | |||||||||||||||
Short Term Debt One [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 2,213,280 | $ 2,151,800 | ¥ 14,000,000 | ¥ 14.4 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.66% | 6.10% | 6.10% | 5.66% | |||||||||||||
Short Term Debt One [Member] | Bamboo [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 3,074,000 | ¥ 20 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.66% | 5.66% | |||||||||||||||
Short Term Debt Two [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 3,057,093 | ¥ 19,890,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | 5.88% | |||||||||||||||
[1] | On August 16, 2016, the Company entered into a short-term loan agreement with Shanghai Pudong Development Bank to borrow $1,439,710 (RMB 10 million) for a year with fixed annual interest rate of 5.046%. The purpose of the loan is to fund working capital needs. The loan was guaranteed by Tantech Energy and three related parties, Yefang Zhang, Zhengyu Wang and Forasen Group. The loan was repaid on maturity date in 2017. |
Bank acceptance notes payable71
Bank acceptance notes payable (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Bank acceptance notes payable | $ 6,975,526 | $ 1,727,652 | |
Bank acceptance notes payable issued by Bank of Hangzhou Lishui Branch [Member] | |||
Bank acceptance notes payable | [1] | 0 | 287,942 |
Letter of credit issued by Shanghai Pudong Development Bank Lishui Branch [Member] | |||
Bank acceptance notes payable | [2] | 3,074,000 | 1,439,710 |
Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch [Member] | |||
Bank acceptance notes payable | [3] | $ 3,901,526 | |
[1] | Bank acceptance notes payable issued by Bank of Hangzhou, Lishui Branch have due date of March 21, 2017. The Company is required to maintain cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. The note payable was repaid when due. | ||
[2] | Letter of credit of $1,439,710 issued by Shanghai Pudong Development Bank, Lishui Branch was due date of August 16, 2017 and the Company fully repaid upon maturity. A new letter of credit of $3,074,000 was issued on August 15, 2017 and due on August 14, 2018. The letter of credit is guaranteed by a land use right and a building with a total carrying value approximately of $2.2 million and three related parties, Forasen Group, Zhengyu Wang, and Yefang Zhang. | ||
[3] | Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch with due dates from April 20, 2018 to July 3, 2018. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. |
Bank acceptance notes payable72
Bank acceptance notes payable (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Mar. 30, 2017 | Dec. 31, 2017 | Aug. 16, 2017 | Aug. 15, 2017 | Dec. 31, 2016 | ||
Restricted Cash and Cash Equivalents, Current | $ 3,901,526 | $ 328,254 | ||||
Debt Instrument, Maturity Date | Sep. 29, 2017 | |||||
Notes Payable to Bank, Current | $ 6,975,526 | 1,727,652 | ||||
Bank of Hangzhou [Member] | ||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | |||||
Debt Instrument, Maturity Date | Mar. 21, 2017 | |||||
Shanghai Pudong Development Bank [Member] | ||||||
Debt Instrument, Maturity Date | Aug. 16, 2017 | |||||
Debt Instrument, Collateral Amount | $ 4,500,000 | |||||
Bank of Zhang Jiagang Yule Branch [Member] | ||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 0.00% | |||||
Maximum [Member] | ||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | |||||
Minimum [Member] | ||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 0.00% | |||||
Letter of Credit [Member] | ||||||
Notes Payable to Bank, Current | [1] | $ 3,074,000 | $ 1,439,710 | |||
Letter of Credit [Member] | Shanghai Pudong Development Bank [Member] | ||||||
Notes Payable to Bank, Current | $ 1,439,710 | $ 3,074,000 | ||||
[1] | Letter of credit of $1,439,710 issued by Shanghai Pudong Development Bank, Lishui Branch was due date of August 16, 2017 and the Company fully repaid upon maturity. A new letter of credit of $3,074,000 was issued on August 15, 2017 and due on August 14, 2018. The letter of credit is guaranteed by a land use right and a building with a total carrying value approximately of $2.2 million and three related parties, Forasen Group, Zhengyu Wang, and Yefang Zhang. |
Convertible Note (Details Textu
Convertible Note (Details Textual) - Convertible Notes Payable [Member] | Feb. 09, 2017USD ($) |
Convertible Debt, Current | $ 2,000,000 |
Debt Conversion, Description | a conversion price which is 85% of the 15 trading day average closing price of the Companys common stock prior to the date of Tantech receiving Notice of Conversion by Note Holder. The conversion price shall, under no circumstances, be lower than the average closing price of the 10 trading days prior to the date of signing of this Agreement. |
Debt Instrument, Interest Rate Terms | The term of the loan is one year, and the interest rate is 7% per annum payable at the maturity date, which rate can be increased to 10% per annum subject to the agreement stated |
Related party transactions (Det
Related party transactions (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Hong Kong Clean Energy Ltd. | $ 2,995,228 | $ 0 | |
Dr. Henglong Chen and its affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Hong Kong Clean Energy Ltd. | [1] | 240,462 | 0 |
Mr. Yulong Chen, a shareholder of the Company [Member] | |||
Related Party Transaction [Line Items] | |||
Hong Kong Clean Energy Ltd. | 1,537,000 | 0 | |
Forasen Group, controlled by Mr. Zhengyu Wang, Chairman and CEO of the Company [Member] | |||
Related Party Transaction [Line Items] | |||
Hong Kong Clean Energy Ltd. | $ 1,217,766 | $ 0 | |
[1] | Dr. Henglong Chen is the original shareholder of E-Motors (Note 4). The Company acquired his 70% equity interest in E-Motors and issued 2,500,000 restricted shares of Tantech’s common stock to him in connection with the acquisition of E-Motors. |
Related party transactions (D75
Related party transactions (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Jul. 12, 2017 | Dec. 31, 2016 | ||
Related Party Transaction [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 70.00% | ||
Accounts Receivable, Related Parties | [1] | $ 3,434,845 | $ 0 | |
Restricted Stock [Member] | ||||
Related Party Transaction [Line Items] | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,500,000 | |||
[1] | As of December 31, 2017, the Company had total accounts receivable balances of $3,434,845 due from the affiliates of the original shareholders of E-Motors. E-Motors did not have related party’s sales to these two related parties after being acquired by the Company on July 12, 2017 (Note 4). The Company collected back approximately $2.2 million (RMB 14.5 million) from these two related parties by May 6, 2018 and expects to collect the remaining balance by June 30, 2018. |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Commitments and Contingencies [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | $ 65,131 | |||
Operating Leases, Rent Expense | 73,184 | |||
Forasen Group’s [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Guaranty Liabilities | 8,771,659 | $ 8,645,459 | ¥ 57,070,000 | ¥ 60,050,000 |
Building Pledged As Collateral For Loans | $ 8,800,000 | $ 4,000,000 | ||
Line of Credit Facility, Expiration Date | Jul. 23, 2020 | Apr. 8, 2017 |
Stockholders' equity (Details T
Stockholders' equity (Details Textual) - USD ($) | Jul. 12, 2017 | Mar. 04, 2016 | Sep. 27, 2017 | Dec. 28, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 19, 2015 | |
Proceeds From Issuance of Common Stock Gross | $ 5,968,208 | ||||||||
Stock Issued During Period, Shares, New Issues | 1,891,307 | ||||||||
Shares Issued, Price Per Share | $ 3.45 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||||||
Stock Issued During Period, Value, New Issues | $ 7,957,100 | $ 5,663,122 | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,078,045 | ||||||||
Description Warrants Exercise Term | [1] | 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 Companys common shares. | |||||||
Class of Warrant or Right, Outstanding | 1,078,045 | ||||||||
Weighted Average Remaining Life of Warrants | 5 years | ||||||||
Investor Warrants [Member] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 945,654 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.25 | ||||||||
Placement Agent Warrants [Member] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 132,391 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.675 | ||||||||
E Motors [Member] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,500,000 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 6,500,000 | ||||||||
Business Acquisition, Share Price | $ 2.6 | ||||||||
Private Placement [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | 1,693,000 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 4.70 | ||||||||
Stock Issued During Period, Value, New Issues | $ 7,957,100 | ||||||||
Tantech Bamboo [Member] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,018,935 | ||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 5.00% | 100.00% | 95.00% | ||||||
[1] | On June 24, 2016, Tantech BVI, through its wholly owned subsidiary, Lishui Tantech, entered into an equity purchase agreement with the five individuals who holds the 5% equity interest of Tantech Bamboo. Pursuant to the equity purchase agreement, Tantech BVI issued 1,018,935 shares of the Company’s common stock in consideration for the 5% equity interest of Tantech Bamboo. The transaction was consummated on December 28, 2016. Upon the completion of the acquisition, Tantech BVI’s equity interest in Tantech Bamboo increased from 95% to 100%. Since Tantech BVI retains its control over Tantech Bamboo before and after the acquisition of minority interest, this change in the parent’s ownership interest shall be accounted for as an equity transaction in accordance with FASB ASC 810-10-45. No gain or loss was recognized in the consolidated net income or comprehensive income. The carrying amount of the previous non-controlling interest was adjusted to reflect the change in its ownership interest in Tantech Bamboo. The difference between the fair value of the common stocks issued and the amount by which the minority interest was adjusted was recorded as additional paid in capital. |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Beginning Balance | $ 0 | |||
Noncontrolling interest through acquisition of E-Motors (Note 4) | 9,583,646 | |||
Proportionate shares of net (loss) income | (754,084) | $ 308,442 | $ 487,928 | |
Capital contribution by a minority shareholder | ||||
Total | 8,799,460 | 0 | ||
Noncontrolling Interest [Member] | ||||
Beginning Balance | 0 | 3,444,342 | ||
Noncontrolling interest through acquisition of E-Motors (Note 4) | 9,583,646 | |||
Proportionate shares of net (loss) income | (754,084) | 308,442 | ||
Buyback of Noncontrolling interest | [1] | 0 | (2,160,142) | |
Gain on Noncontrolling interest buyback | [1] | (1,354,229) | ||
Foreign currency transaction adjustment | (30,102) | (238,413) | ||
Total | $ 8,799,460 | $ 0 | $ 3,444,342 | |
[1] | On June 24, 2016, Tantech BVI, through its wholly owned subsidiary, Lishui Tantech, entered into an equity purchase agreement with the five individuals who holds the 5% equity interest of Tantech Bamboo. Pursuant to the equity purchase agreement, Tantech BVI issued 1,018,935 shares of the Company’s common stock in consideration for the 5% equity interest of Tantech Bamboo. The transaction was consummated on December 28, 2016. Upon the completion of the acquisition, Tantech BVI’s equity interest in Tantech Bamboo increased from 95% to 100%. Since Tantech BVI retains its control over Tantech Bamboo before and after the acquisition of minority interest, this change in the parent’s ownership interest shall be accounted for as an equity transaction in accordance with FASB ASC 810-10-45. No gain or loss was recognized in the consolidated net income or comprehensive income. The carrying amount of the previous non-controlling interest was adjusted to reflect the change in its ownership interest in Tantech Bamboo. The difference between the fair value of the common stocks issued and the amount by which the minority interest was adjusted was recorded as additional paid in capital. |
Noncontrolling Interests (Det79
Noncontrolling Interests (Details Textual) - Tantech Bamboo [Member] - shares | 1 Months Ended | ||
Dec. 28, 2016 | Dec. 31, 2017 | Aug. 19, 2015 | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,018,935 | ||
Noncontrolling Interest, Ownership Percentage by Parent | 5.00% | 100.00% | 95.00% |
Taxes (Details)
Taxes (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Corporation income tax payable | $ 551,610 | $ 441,084 |
Other tax payable | 244,572 | 279,408 |
Total | $ 796,182 | $ 720,492 |
Taxes (Details 1)
Taxes (Details 1) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Statutory PRC income tax rate | 25.00% | 25.00% | 25.00% | |||
Favorable tax rate impact | (10.00%) | [1] | (10.00%) | [1] | (12.00%) | [2] |
Permanent difference | 2.00% | 1.00% | 5.00% | |||
Changes of deferred tax assets valuation allowances | 17.00% | 0.00% | 5.00% | |||
Total | 34.00% | 16.00% | 23.00% | |||
[1] | Two of the Company’s subsidiaries, Tantech Bamboo and Tantech Energy are subject to tax rate of 15%. | |||||
[2] | Two of the Company’s subsidiaries, Tantech Bamboo and Tantech Energy are subject to tax rate of 15%. |
Taxes (Details 2)
Taxes (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | $ 1,334,254 | $ 1,465,744 | $ 2,115,915 |
Deferred | 193,749 | (98,474) | 0 |
Total | $ 1,528,003 | $ 1,367,270 | $ 2,115,915 |
Taxes (Details 3)
Taxes (Details 3) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts and other reserves | $ 1,682,706 | $ 564,556 |
Valuation allowance | (1,682,706) | (470,403) |
Total | 0 | 94,153 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Increase in fair value of intangible assets acquired through acquisition | 2,086,086 | 0 |
Total | $ 2,086,086 | $ 0 |
Taxes (Details Textual)
Taxes (Details Textual) - USD ($) | Dec. 07, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | |
Deferred Tax Assets, Valuation Allowance | $ 1,682,706 | $ 470,403 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 1,212,303 | |||
Income Tax Holiday, Aggregate Dollar Amount | $ 899,503 | $ 906,131 | ||
Tax Holidays Benefit On Net Income Per Share | $ 0.03 | $ 0.03 | ||
Suzhou E-Motor [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15.00% | |||
Tantech Bamboo [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15.00% | |||
Tantech Energy [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15.00% | |||
Tantech Charcoal [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% |
Major customers and suppliers (
Major customers and suppliers (Details Textual) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 43.00% | ||
Two Major Customers [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk, Percentage | 47.00% | 27.00% | 29.00% |
Three Customers [Member] | Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 33.00% | ||
Four Major Suppliers [Member] | Cost of Goods, Total [Member] | |||
Concentration Risk, Percentage | 88.00% | ||
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | |||
Concentration Risk, Percentage | 61.00% | 61.00% |
Segment information (Details)
Segment information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 43,084,397 | $ 40,532,595 | $ 46,814,536 | |
Cost of revenue | 32,405,887 | 27,476,070 | 32,082,693 | |
Gross profit | 10,678,510 | 13,056,525 | 14,731,843 | |
Interest Expenses | 479,358 | 261,625 | [1] | 411,805 |
Capital expenditure | 82,263 | 10,819 | 242,552 | |
Segment assets | 138,487,726 | 94,302,667 | ||
Segment profit | 3,013,131 | 4,607,693 | 8,926,753 | |
Consolidation, Eliminations [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Cost of revenue | 32,405,887 | 27,476,070 | 32,082,693 | |
Gross profit | 10,678,510 | 13,056,525 | 14,731,843 | |
Interest Expenses | 551,545 | 470,656 | 410,471 | |
Depreciation & amortization | 814,942 | 573,911 | 311,885 | |
Capital expenditure | 82,263 | 10,819 | 242,552 | |
Segment assets | 138,487,726 | 94,302,667 | 86,276,447 | |
Segment profit | 2,982,813 | 6,921,170 | 7,037,019 | |
Consumer product [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Cost of revenue | 24,357,432 | 27,450,566 | 28,618,875 | |
Gross profit | 8,318,510 | 12,528,336 | 14,616,190 | |
Interest Expenses | 290,797 | 341,697 | 324,643 | |
Depreciation & amortization | 506,027 | 522,770 | 239,170 | |
Capital expenditure | 74,202 | 10,819 | 242,552 | |
Segment assets | 83,024,439 | 92,878,334 | 84,205,232 | |
Segment profit | 5,293,269 | 7,070,925 | 6,302,893 | |
Trading [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Cost of revenue | 1,412,061 | 25,504 | 3,463,818 | |
Gross profit | 417,414 | 528,189 | 115,653 | |
Interest Expenses | 124,586 | 128,959 | 85,828 | |
Depreciation & amortization | 25,345 | 51,141 | 72,715 | |
Capital expenditure | 0 | 0 | 0 | |
Segment assets | 5,988,364 | 1,424,333 | 2,071,215 | |
Segment profit | 203,157 | (149,755) | ||
EV [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Cost of revenue | 6,636,402 | |||
Gross profit | 1,942,586 | |||
Interest Expenses | 136,161 | |||
Depreciation & amortization | 299,075 | |||
Capital expenditure | 8,061 | |||
Segment assets | 49,474,923 | |||
Segment profit | (2,513,613) | 734,126 | ||
External customers [Member] | Consolidation, Eliminations [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 43,084,397 | 40,532,595 | 46,814,536 | |
External customers [Member] | Consumer product [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 32,675,933 | 39,978,902 | 43,235,065 | |
External customers [Member] | Trading [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 1,829,475 | 553,693 | 3,579,471 | |
External customers [Member] | EV [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 8,578,988 | |||
Intersegment [Member] | Consolidation, Eliminations [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | (2,760,754) | 588,647 | 748,515 | |
Intersegment [Member] | Consumer product [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | (2,736,204) | 576,302 | 736,527 | |
Intersegment [Member] | Trading [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | (24,550) | $ 12,345 | $ 11,988 | |
Intersegment [Member] | EV [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 0 | |||
[1] | On August 16, 2016, the Company entered into a short-term loan agreement with Shanghai Pudong Development Bank to borrow $1,439,710 (RMB 10 million) for a year with fixed annual interest rate of 5.046%. The purpose of the loan is to fund working capital needs. The loan was guaranteed by Tantech Energy and three related parties, Yefang Zhang, Zhengyu Wang and Forasen Group. The loan was repaid on maturity date in 2017. |
Segment information (Details 1)
Segment information (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 43,084,397 | $ 40,532,595 | $ 46,814,536 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 43,084,397 | 39,976,470 | 46,114,044 |
Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 0 | $ 556,125 | $ 700,492 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) ¥ in Thousands, bbl in Thousands | Jan. 10, 2018USD ($) | Jan. 10, 2018CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017USD ($)a | Dec. 31, 2016USD ($)bbl | Dec. 31, 2015USD ($) | Mar. 30, 2018USD ($) | Jan. 31, 2018CNY (¥) | Jul. 12, 2017 | Dec. 31, 2016CNY (¥)bbl | Jun. 30, 2016bbl |
Subsequent Event [Line Items] | ||||||||||||
Notes Payable to Bank, Current | $ | $ 6,975,526 | $ 1,727,652 | ||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 70.00% | ||||||||||
Estimated Reserves Of Ores | bbl | 3,740 | 3,740 | 4,020 | |||||||||
Mineral Rights | ¥ | ¥ 664,740 | |||||||||||
Percentage Of Restricted Cash Deposit Required To Maintain On Notes Payable | 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. | |||||||||||
Area of Land | a | 1,650 | |||||||||||
Payments to Acquire Businesses, Gross | $ | $ 4,552,240 | $ 3,372,925 | $ 8,030,000 | |||||||||
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Notes Payable to Bank, Current | $ | $ 599,430 | |||||||||||
Business Combination, Consideration Transferred First Installment | ¥ | ¥ 25,000 | |||||||||||
Business Combination, Consideration Transferred Final Payment | ¥ | ¥ 95,000 | |||||||||||
Subsequent Event [Member] | Lishui Xincai Industrial [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Business Combination, Consideration Transferred | $ 18,200,000 | ¥ 120,000 | ||||||||||
Payments to Acquire Businesses, Gross | $ 18,400,000 | ¥ 120,000 | ||||||||||
Subsequent Event [Member] | Libo Haokun [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 18.00% | 18.00% |