Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | TANTECH HOLDINGS LTD |
Entity Central Index Key | 0001588084 |
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 | 28,853,242 |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Current Assets | ||
Cash and cash equivalents | $ 7,748,416 | $ 9,717,909 |
Restricted cash | 2,121,377 | 3,901,526 |
Notes receivable | 0 | 15,370 |
Accounts receivable, net | 32,495,361 | 44,832,946 |
Inventories, net | 1,957,058 | 2,572,558 |
Advances to suppliers, net | 14,387,228 | 11,217,764 |
Prepaid value-added taxes | 2,136,988 | 2,969,656 |
Prepaid expenses and other receivables, net | 954,362 | 1,685,120 |
Current assets from discontinued operations | 8,513,154 | 12,332,035 |
Total current assets | 70,313,944 | 89,244,884 |
Property, plant and equipment, net | 3,240,620 | 3,374,879 |
Other Assets | ||
Advances to suppliers - non-current | 0 | 2,109,005 |
Manufacturing rebate receivable | 9,795,512 | 9,269,118 |
Intangible assets, net | 15,268,062 | 15,976,144 |
Long-term Investment | 18,156,000 | 0 |
Goodwill | 8,861,361 | 9,001,924 |
Non-current assets from discontinued operations | 8,558,515 | 9,511,772 |
Total Assets | 134,194,014 | 138,487,726 |
Current Liabilities | ||
Short-term bank loans | 7,683,014 | 5,208,893 |
Bank acceptance notes payable | 2,121,377 | 6,975,526 |
Accounts payable | 2,524,462 | 5,335,363 |
Due to related parties | 2,102,175 | 2,995,228 |
Customer deposits | 865,615 | 1,001,726 |
Taxes payable | 344,563 | 542,392 |
Due to third parties | 3,253,253 | 708,864 |
Accrued liabilities and other payables | 1,598,104 | 1,564,336 |
Liabilities from discontinued operations | 1,662,252 | 2,456,934 |
Total Current Liabilities | 22,154,815 | 26,789,262 |
Deferred tax liability | 2,053,512 | 2,086,086 |
Total Liabilities | 24,208,327 | 28,875,348 |
Stockholders' Equity | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 28,853,242 and 28,703,242 shares issued and outstanding as of December 31, 2018 and 2017, respectively | 28,853 | 28,703 |
Additional paid-in capital | 39,310,178 | 39,067,328 |
Statutory reserves | 6,461,788 | 6,461,788 |
Retained earnings | 58,333,136 | 56,356,369 |
Accumulated other comprehensive loss | (2,066,364) | (1,101,270) |
Total Stockholders' Equity attributable to the Company | 102,067,591 | 100,812,918 |
Noncontrolling interest | 7,918,096 | 8,799,460 |
Total Equity | 109,985,687 | 109,612,378 |
Total Liabilities and Stockholders' Equity | $ 134,194,014 | $ 138,487,726 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 28,853,242 | 28,703,242 |
Common Stock, Shares Outstanding | 28,853,242 | 28,703,242 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 29,561,399 | $ 42,297,612 | $ 39,902,342 |
Cost of revenues | 21,532,319 | 31,741,753 | 26,879,316 |
Gross Profit | 8,029,080 | 10,555,859 | 13,023,026 |
Operating expenses | |||
Selling expenses | 320,479 | 730,834 | 621,818 |
General and administrative expenses | 4,971,804 | 4,625,563 | 3,613,289 |
Research and development expenses | 386,628 | 627,577 | 136,626 |
Total operating expenses | 5,678,911 | 5,983,974 | 4,371,733 |
Income from operations | 2,350,169 | 4,571,885 | 8,651,293 |
Other income (expenses) | |||
Interest income | 56,894 | 18,648 | 571 |
Interest expense | (626,343) | (551,044) | (470,656) |
Government subsidy income | 0 | 0 | 52,597 |
Other income, net | 247,069 | 436,095 | 99,025 |
Total other income (expenses) | (322,380) | (96,301) | (318,463) |
Income before provision for income taxes | 2,027,789 | 4,475,584 | 8,332,830 |
Provision for income taxes | 1,031,158 | 1,528,003 | 1,367,270 |
Net income from continuing operations | 996,631 | 2,947,581 | 6,965,560 |
Discontinued operation: | |||
Net income (loss) from discontinued operations, net of tax | 83,367 | 65,550 | (2,357,867) |
Net income | 1,079,998 | 3,013,131 | 4,607,693 |
Less: net income (loss) attributable to the noncontrolling interest from continuing operations | (896,769) | (754,084) | 308,442 |
Net income attributable to common stockholders of Tantech Holdings Ltd. | 1,976,767 | 3,767,215 | 4,299,251 |
Net income | 1,079,998 | 3,013,131 | 4,607,693 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (949,689) | 4,341,324 | (5,448,209) |
Comprehensive income (loss) | 130,309 | 7,354,455 | (840,516) |
Less: Comprehensive income (loss) attributable to noncontrolling interest | (881,364) | (784,186) | 70,029 |
Comprehensive income (loss) attributable to common stockholders of Tantech Holdings Ltd. | $ 1,011,673 | $ 8,138,641 | $ (910,545) |
Earnings (loss) per share - Basic and Diluted , Continuing operations | $ 0.07 | $ 0.15 | $ 0.19 |
Earnings (loss) per share - Basic and Diluted , Discontinued operations | $ 0 | $ 0 | $ (0.10) |
Weighted Average Shares Outstanding - Basic and diluted, Continuing operations and discontinued operations | 28,745,571 | 25,971,912 | 23,019,185 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | Non Controlling Interest [Member] |
Balance at Dec. 31, 2015 | $ 73,089,485 | $ 21,600 | $ 15,134,752 | $ (262,900) | $ 6,401,235 | $ 48,350,456 | $ 3,444,342 |
Balance (In Shares) at Dec. 31, 2015 | 21,600,000 | ||||||
Issuance of common stock | 7,957,100 | $ 1,693 | 7,955,407 | 0 | 0 | 0 | 0 |
Issuance of common stock (in shares) | 1,693,000 | ||||||
Issuance of common stock for service | 0 | ||||||
Appropriation of retained earnings to statutory reserve fund | 0 | $ 0 | 0 | 0 | 60,553 | (60,553) | |
Foreign currency translation adjustment | (5,448,209) | 0 | 0 | (5,209,796) | 0 | 0 | (238,413) |
Net income (loss) | 4,607,693 | 0 | 0 | 0 | 0 | 4,299,251 | 308,442 |
Stock issuance for minority interest buyback | 0 | $ 1,019 | 2,159,123 | 0 | 0 | 0 | (2,160,142) |
Stock issuance for minority interest buyback (in shares) | 1,018,935 | ||||||
Gain on minority interest buyback | 0 | $ 0 | 1,354,229 | 0 | 0 | 0 | (1,354,229) |
Balance at Dec. 31, 2016 | 80,206,069 | $ 24,312 | 26,603,511 | (5,472,696) | 6,461,788 | 52,589,154 | 0 |
Balance (In Shares) at Dec. 31, 2016 | 24,311,935 | ||||||
Issuance of common stock for service | 0 | ||||||
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 adjustment | 4,341,324 | 4,371,426 | (30,102) | ||||
Net income (loss) | 3,013,131 | 3,767,215 | (754,084) | ||||
Noncontrolling interest through acquisition | 9,583,646 | 9,583,646 | |||||
Balance at Dec. 31, 2017 | 109,612,378 | $ 28,703 | 39,067,328 | (1,101,270) | 6,461,788 | 56,356,369 | 8,799,460 |
Balance (In Shares) at Dec. 31, 2017 | 28,703,242 | ||||||
Issuance of common stock for service | 243,000 | $ 150 | 242,850 | ||||
Issuance of common stock for service (in shares) | 150,000 | ||||||
Foreign currency translation adjustment | (949,689) | (965,094) | 15,405 | ||||
Net income (loss) | 1,079,998 | 1,976,767 | (896,769) | ||||
Noncontrolling interest through acquisition | 0 | ||||||
Balance at Dec. 31, 2018 | $ 109,985,687 | $ 28,853 | $ 39,310,178 | $ (2,066,364) | $ 6,461,788 | $ 58,333,136 | $ 7,918,096 |
Balance (In Shares) at Dec. 31, 2018 | 28,853,242 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 1,079,998 | $ 3,013,131 | $ 4,607,693 |
Net (income) loss from discontinued operations | (83,367) | (65,550) | 2,357,867 |
Net income from continuing operations | 996,631 | 2,947,581 | 6,965,560 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Allowance for doubtful accounts - accounts receivable | 910,811 | 2,632,813 | 239,487 |
Allowance for doubtful accounts - advance to suppliers | 777,848 | (45,507) | 927,218 |
Allowance for doubtful accounts – other receivables | 66,305 | (16,827) | 59,742 |
Allowance for doubtful accounts - due from related party | 364,288 | 0 | 0 |
Inventory reserve (recovery) | 700,379 | 13,908 | (84,414) |
Depreciation expense | 628,144 | 576,953 | 497,970 |
Amortization of intangible asset | 443,318 | 201,647 | 6,842 |
Amortization of prepaid consulting expense | 102,263 | 0 | 0 |
Gain from disposal of property, plant and equipment | (44,814) | (1,875,493) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable - non-related party | 7,023,546 | (1,001,613) | (6,272,566) |
Accounts receivable - related party | 3,249,359 | 0 | 0 |
Advances to suppliers | (3,555,851) | 2,826,316 | (7,354,381) |
Advances to supplier non current | 1,558,916 | 6,839,953 | (451,731) |
Inventory | (147,485) | 804,763 | (317,545) |
Other receivables | 767,849 | (829,716) | 9,424 |
Government rebate receivable | (644,959) | (2,942,190) | 0 |
Accounts payable | (2,621,226) | (532,039) | (893,016) |
Accrued liabilities and other payables | 49,492 | (1,489,128) | 362,212 |
Customer deposits | (115,771) | (247,059) | 58,122 |
Taxes payable | 573,660 | (1,927,737) | 174,817 |
Deferred tax liability | 0 | 0 | (98,473) |
Net cash provided by (used in) continuing operations | 11,082,703 | 5,936,625 | (6,170,732) |
Net cash provided by (used in) discontinued operations | 3,582,177 | (3,785,614) | (898,699) |
Net cash provided by (used in) operating activities | 14,664,880 | 2,151,011 | (7,069,431) |
Cash flows from investing activities | |||
Acquisition of property, plant and equipment | (559,038) | (1,302,721) | (8,282) |
Proceeds from disposal of property, plant and equipment | 54,089 | 662,144 | 0 |
Additions to intangible assets | (2,585) | 0 | 0 |
Payment for business acquisition | 0 | (4,552,240) | (3,372,925) |
Payment for investment | (17,448,000) | 0 | 0 |
Cash acquired from business acquisition | 0 | 35,707 | 0 |
Changes in deposit for asset acquisition | 0 | 443,400 | 0 |
Net cash used in continuing operations | (17,955,534) | (4,713,710) | (3,381,207) |
Net cash provided by (used in) discontinued operations | (39,976) | 1,220,458 | 1,503,233 |
Net cash used in investing activities | (17,995,510) | (3,493,252) | (1,877,974) |
Cash flows from financing activities | |||
Proceeds from (repayment of) loans from third party | 2,455,806 | (187,706) | 885,694 |
Note receivable | 14,540 | (14,780) | 0 |
Bank acceptance notes payable, net of repayment | (4,560,185) | 4,911,990 | 1,806,924 |
Proceeds from bank loans | 10,291,412 | 10,093,262 | 7,001,831 |
Repayments of bank loans | (7,835,606) | (11,957,020) | (8,251,620) |
Repayment of loans from related parties | (1,175,971) | (477,565) | 0 |
Proceeds from issuance of common stocks | 0 | 5,968,208 | 7,957,100 |
Net cash provided by (used in) continuing operations | (810,004) | 8,336,389 | 9,399,929 |
Net cash provided by discontinued operations | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (810,004) | 8,336,389 | 9,399,929 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 390,992 | 424,298 | (491,196) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (3,749,642) | 7,418,446 | (38,672) |
Cash, restricted cash and cash equivalents, beginning of year | 13,619,435 | 6,200,989 | 6,239,661 |
Cash, restricted cash and cash equivalents, end of year | 9,869,793 | 13,619,435 | 6,200,989 |
Supplemental disclosure information: | |||
Income taxes paid | 1,044,480 | 1,156,976 | 696,435 |
Interest paid | 608,048 | 479,358 | 261,625 |
Supplemental non-cash activities: | |||
Common shares issued for service | 243,000 | 0 | 0 |
Common shares issued for Minority interest buyback | 0 | 0 | 2,160,142 |
Common shares issued for acquisition of Shangchi Automobile | 0 | 6,500,000 | 0 |
Net book value of assets and liabilities of Shangchi Automobile acquired | $ 0 | $ 11,122,410 | $ 0 |
Organization and nature of busi
Organization and nature of business | 12 Months Ended |
Dec. 31, 2018 | |
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% owned subsidiary in Hong Kong, USCNHK Group Limited (“USCNHK”), its 100% owned operating subsidiaries located in the People’s Republic of China (“China” or “PRC”), Zhejiang Tantech Bamboo Technology Co., Ltd. (“Tantech Bamboo” or “Bamboo”), Tantech is engaged in the research and development, production and distribution of various products made from bamboo. In addition, Tantech Bamboo also has the five wholly-owned subsidiaries: Zhejiang Tantech Bamboo Charcoal Co., Ltd. (“Tantech Charcoal” or “Charcoal”) was established on September 5, 2002, and is engaged in the trading business, including the export of charcoal products. Zhejiang Babiku Charcoal Co., Ltd. (“Tantech Babiku” or “Babiku”), established by Tantech Bamboo on October 20, 2015, and is engaged in the production and sales of low emission BBQ charcoal. Lishui Zhongzhu Charcoal Co., Ltd. (“LishuiZhongzhu” or “Zhongzhu”), established by Tantech Bamboo on November 18, 2015. It changed its name to Zhejiang Zhongzhu Tourism Development Co., Ltd. on May 17, 2017. Zhejiang Tantech Energy Tech Co., Ltd. (“Tantech Energy” or “Energy”), was established on September 24, 2008. Hangzhou Tanbo Tech Co., Ltd. (“Tanbo Tech” or “Tanbo”), established by Tantech Bamboo on December 8, 2015, is exploring 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”). As of December 31, 2018, the Company closed Lishui Zhongzhu and Tantech Babiku, and is planning to close Tantech Energy due to business strategy change. As a result, the assets and liabilities for these discontinued entities were reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all these discontinued operations, less applicable income taxes (benefit), were reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. 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% equity interest in Tantech Bamboo. On April 7, 2016, LishuiTantech was registered in Lishui, China under the PRC law. On June 24, 2016, Tantech BVI, through LishuiTantech, entered into an equity purchase agreement with the five individual holders of the remaining 5% interest of Tantech Bamboo, to acquire the 5% interest of Tantech Bamboo for 1,018,935 shares of the Company’s common stock. The transfer of the 5% equity interest was completed on December 28, 2016. On July 12, 2017, the Company acquired 70% 70% equity interest include 19% equity interest owned directly through Hangzhou Jiyi Trading Co., Ltd (“Jiyi”) and 51% equity interest owned through a series of contractual agreement with the owners of Hanzhou Wangbo Investment Management Co., Ltd (“Wangbo”). Jiyi is 100% owned through Shanghai Jiamu Investment Management Co., Ltd (“Jiamu”), who is, in turn, wholly owned by Euroasia International Capital (“Euroasia”), a 100% owned subsidiary of the Company. These agreements include a Technical Consultation and Services Agreement, a Business Cooperation Agreement, an Equity Pledge Agreement, a Share Disposal Agreement and a Voting Rights Proxy Agreement (collectively “VIE Agreements”). Pursuant to the above VIE Agreements, Jiamu has the exclusive right to provide Wangbo consulting services related to business operations including technical and management consulting services. All the above contractual agreements obligate Jiamu to absorb a majority of the risk of loss from Wangbo’s activities and entitle Jiamu to receive a majority of their residual returns. In essence, Jiamu has gained effective control over Wangbo. Therefore, the Company believes that Wangbo should be considered as a Variable Interest Entity (“VIE”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation”. On November 13, 2018, the Company established Shenzhen E-Motors New Energy Sales Co., Ltd. (“Shenzhen E-Motors”), a sales subsidiary through Shangchi Automobile (formerly known as Suzhou E-Motors). As a result, the Company ultimately controls 70% |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 – Summary of significant accounting policies Principal of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of Tantech BVI and its subsidiaries, and entities controlled through a series of agreements known as variable interest agreements <“VIE”> (collectively, the “Company”). All significant inter-company balances and transactions are eliminated upon consolidation. Non-controlling interest Non-controlling interest represents 30% 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. The following assets and liabilities of the consolidated VIE are included in the accompanying consolidated financial statements of the Company as of December 31, 2018 December 31, December 31, Current assets $ 6,415,138 $ 16,760,444 Non-current assets 35,102,432 36,352,228 Total assets $ 41,517,570 $ 53,112,672 Current liabilities $ (13,724,904 ) $ (21,695,054 ) Non-current liabilities (2,053,512 ) (2,086,086 ) Total liabilities $ (15,778,416 ) $ (23,781,140 ) Business Combinations Business combinations are accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. Discontinued operation In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations (which we presented as operations to be disposed and operations disposed), less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting year. Significant items subject to such estimates and assumptions include the fair value estimates used in the purchase price allocation, the useful lives of property and equipment; allowances pertaining to the allowance for doubtful accounts and suppliers; the valuation of inventories; and the realizability of deferred tax assets. Fair Value of Financial Instruments The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements”, defines fair value, establishes a three-level valuation hierarchy for fair value measurements and enhances disclosure requirements. The three levels are defined as follows: Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, other receivables, accounts payable, customer deposits, accrued expenses, short term bank loans and banker’s acceptance notes payable approximates their recorded values due to their short-term maturities. Cash and cash equivalents For purposes of the statements of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less and money market accounts to be cash equivalents. All cash balances are in bank accounts in PRC and Hong Kong and are not insured by the Federal Deposit Insurance Corporation or other programs. Restricted Cash Restricted cash represents required cash deposits as a part of collateral for bank acceptance notes payable and letters of credit. The Company is required to maintain 0% to 100% of the balance of the bank acceptance notes payable in restricted cash to ensure future credit availability. The Company earns interest at a variable rate per month on this restricted cash. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. The Company adopted the new standard effective January 1, 2018, using the retrospective transition method. Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, trade accounts receivable and advances to suppliers. All of the Company’s cash is maintained with banks within the People’s Republic of China 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 Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. Inventory The Company values its inventories at the lower of cost, determined on a weighted average basis, or net realizable value. The Company reviews its inventories periodically to determine if any reserves are necessary for potential obsolescence or if a write-down is necessary if the carrying value exceeds net realizable value. Advances to Suppliers In order to ensure a steady supply of raw materials, the Company is required from time to time to make cash advances when placing its purchase orders. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to refund an advance or provide supplies to the Company. Property and Equipment and Construction in Progress Property and equipment are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows: Buildings 20 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years Repairs and maintenance costs are normally charged to earnings in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Construction in progress includes direct costs of construction or acquisition of equipment, interest expense associated with the loans used for the construction and design fees incurred. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until it is completed and ready for its intended use. Intangibles 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. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Goodwill Indefinite Licenses and permit Indefinite Software 5 - 10 years Land use right 50 years Patents 10 years 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 at least annually or whenever indicators of impairment are present. There was no intangible assets impairment as of December 31, 2018 and 2017. Long term investment The Company accounts for investment in equity investees over which it has significant influence but does not own a majority of the equity interest or lack of control using the equity method. For investment in equity investees over which the Company does not have significant influence or the underlying shares the Company invested in are not considered in-substance common stock and have no readily determinable fair value, the cost method accounting is applied. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company records the cost method investments at historical cost and subsequently record any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Investment in equity investees are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Customer Deposits Customer deposits represent amounts received from customers in advance of shipments relating to the sales of the Company’s products. Due to third parties Due to third parties represent amounts the Company borrowed from third parties for working capital purpose. The due to third parties balance are unsecured, interest-free and due upon demand. As of December 31, 2018 and 2017, the due to third parties balance amounted to $3,253,253 and $708,864, respectively. 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 The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective approach. Revenues for the year ended December 31, 2018 were presented under ASC 606, and revenues for the years ended December 31, 2017 and 2016 were not adjusted and continue to be presented under ASC Topic 605, Revenue Recognition. There is no adjustment to the opening balance of retained earnings at January 1, 2018 since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Company’s revenues are primarily derived from the following sources: Sales of products: The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time the product is delivered to the customer and control is transferred (point of sale). The Company records shipping and handling costs in cost of sales. 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 Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or market adjustments is also recorded in cost of revenues. Subsidy Income The Company periodically receives various government grants such as “High Technology Projects Subsidy” and “Scientific Research Grant”. There is no guarantee the Company will continue to receive such grants in the future. Foreign Currency Translation The Company’s financial information is presented in U.S. dollars. The functional currency of the Company’s subsidiaries in the PRC is the RMB, the currency of the PRC. Any subsidiary transactions, which are denominated in currencies other than RMB, are translated into RMB at the exchange rate quoted by the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of 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. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2018 December 31, 2017 December 31, 2016 US$:RMB exchange rate Period End $ 0.1513 Period End $ 0.1537 Period End $ 0.1440 Average $ 0.1454 Average $ 0.1478 Average $ 0.1506 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 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, 2018, 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, 2018 and 2017. All tax returns since the Company’s inception are subject to examination by tax authorities. Value Added Tax (“VAT”) The Company is subject to VAT for selling merchandise. The applicable VAT rate is 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of taxes which is determined to be late or deficient, with any penalty being expensed in the period when a determination is made by the tax authorities that a penalty is due. During the reporting periods, the Company had no dispute with PRC tax authorities and there was no tax penalty incurred. Earnings (loss) per Share (“EPS”) The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”), and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of December 31, 2018 and 2017, there were 1,078,045 warrants not included in the diluted loss per share as they would be anti-dilutive. Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets Reclassification For the year ended December 31, 2018, the Company closed Lishui Zhongzhu and Tantech Babiku, and is planning to sell Tantech Energy’s remaining operation, due to business strategy change. In connection with the discontinued operations of the business, certain prior period amounts have been reclassified to conform to the current period presentation. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions are denominated in RMB, and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. The Company does not carry any business interruption insurance, products liability insurance or any other insurance policy except for a limited property insurance policy. As a result, the Company may incur uninsured losses, increasing the possibility that investors would lose their entire investment in the Company. Recent accounting pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 specifies the accounting for leases. For operating leases, ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. ASU 2016-02 is effective for public business entities for annual reporting periods and interim periods within those years beginning after December 15, 2018. The Company does not expect this guidance will have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act. The Company does not expect this guidance will have a material impact on its consolidated financial statements. Recent accounting pronouncements 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. On June 20, 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU No. 2018-07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The new standard is effective for us on January 1, 2019. Early adoption is permitted, including in interim periods, and should be applied to all new awards granted after the date of adoption. The Company does not expect this guidance will have a material impact on its consolidated financial statements. In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect this guidance will have a material impact on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2018 | |
Liquidity Requirements [Abstract] | |
Liquidity Requirements Disclosure [Text Block] | Note 3 — Liquidity For the years ended December 31, 2018 and 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 Shangchi Automobile (formerly known as Suzhou E-Motors) to enter into the electric vehicle (“EV”) business; closed Babiku and Zhongzhu and propose to close Energy due to business strategic changes. 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. Due to a successful equity financing which resulted in net proceeds of $5.6 million in September 2017, the Company still had approximately $7.7 million cash on hand as of December 31, 2018. Although the Company maintains a positive working capital as of December 31, 2018 and generated positive cash flows from its continued operations during the year ended $7.7 million and $5.2 $2.1 million and $7.0 The Company currently plans to fund its operations mainly through cash flow from its operations, renewal of bank borrowings, additional equity financing and the continuing financial support by its shareholders and its affiliates controlled by its principal shareholder, if necessary, in the near future to ensure sufficient working capital. The Company has implemented a stricter policy on sales to supermarkets and less credible customers and continues to improve its collection efforts on accounts with outstanding balances. The Company is actively working with other customers and suppliers and expects to fully collect or utilize the rest of prepayment balance in 2018. The Company is also working closely with the local government to speed up the collection process of the outstanding government rebate balance 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 Shangchi Automob
Acquisition of Shangchi Automobile | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 4 – Acquisition of Shangchi Automobile (formerly known as Suzhou 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% $15,861,840 (RMB 103,200,000) and a share consideration of 2,500,000 restricted shares of Tantech’s common stock with fair value of $6,500,000. The Company believes that the acquisition brings new advanced technologies and economic synergies in electric vehicle market and broaden the Company’s customer base and cross-selling opportunities. 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. 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 The intangible assets mainly include Shangchi Automobile’s electronic vehicles registered license of $13,907,238 with an indefinite life. The goodwill is mainly attributable to the excess of the consideration paid over the fair value of the net assets acquired that cannot be recognized separately as identifiable assets under U.S. GAAP. |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 5 – Discontinued operations On December 14, 2017, the Company entered into a sale agreement and related agreements (the “EDLC Agreements”) to transfer its Electric Double-Layer Capacitor (“EDLC”) carbon business (including intellectual property rights and equipment) to Zhejiang Apeikesi Energy Co., Ltd. (the “Buyer”), a PRC start-up company controlled by Dr. Zaihua Chen, the Registrant’s former CTO. Pursuant to the EDLC Agreements, total purchase price $2.5 (RMB 16 million) (the “Purchase Price”). The purchase price is payable in ten years with initial payment of approximately $0.7 million (RMB 4.48 million) due in fiscal 2017. The remaining purchase price shall be paid in nine equal installments in the following nine years. The Buyer is required to pay annual interest on the remaining purchase price at the PRC prime borrowing rate. During the year ended December 31, 2018, the Company further closed the business operation of Lishui Zhongzhu and Tantech Babiku, and is planning to sell Tantech Energy’s remaining operation, due to business strategy change. In connection with the discontinued operations of the above businesses, certain assets and liabilities as of December 31, 2017 and 2016, the revenue and expenses for the years ended December 31, 2017 and 2016 have been retrospectively reclassified as discontinued operations. The aggregated financial results of the discontinued business are set forth below. December 31 December 31 2018 2017 Cash and cash equivalent $ 32,919 $ 223,131 Accounts receivable 5,257,684 5,422,031 Inventory 475,827 218,157 Advances to suppliers 2,647,415 6,303,201 Prepaid value-added taxes 72,742 162,010 Other receivables 26,567 3,505 Total current assets from discontinued operations 8,513,154 12,332,035 Accounts receivable from EDLC business 1,235,489 1,502,518 Property, plant and equipment, net 6,012,285 6,508,968 Intangible assets, net 1,310,741 1,500,286 Total non-current assets from discontinued operations 8,558,515 9,511,772 Total assets from discontinued operations 17,071,669 21,843,807 Accounts payable 1,038,888 1,851,442 Customer deposits 337,743 196,935 Taxes payable 140,212 253,790 Accrued liabilities and other payables 145,409 154,767 Total current liabilities from discontinued operations 1,662,252 2,456,934 Total liabilities from discontinued operations $ 1,662,252 $ 2,456,934 Years ended December 31, 2018 2017 2016 Revenue $ 9,107,922 $ 4,189,190 $ 7,763,332 Cost of revenues 9,116,707 2,097,436 7,242,578 Gross profit (loss) (8,785 ) 2,091,754 520,754 Operating expenses 1,687,287 4,187,168 2,876,556 Loss from operations (1,696,072 ) (2,095,414 ) (2,355,802 ) Other income (expense), net 1,779,439 2,168,132 (2,065 ) Net income (loss) before tax 83,367 72,718 (2,357,867 ) Income taxes - 7,168 - Net income (loss) from discontinued operations, net of tax $ 83,367 $ 65,550 $ (2,357,867 ) |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables [Text Block] | Note 6 – Accounts receivable Accounts receivable consisted of the following: December 31 2018 December 31, 2017 Accounts receivable – non-related parties $ 37,177,953 $ 45,192,166 Accounts receivable – related parties * - 3,434,845 Subtotal 37,177,953 48,627,011 Allowance for doubtful accounts (4,682,592 ) (3,794,065 ) Accounts receivable, net $ 32,495,361 $ 44,832,946 * $3,434,845 $3.3 million (RMB 21.8 The movement of allowance for doubtful accounts are as follows for the years ended December 31, 2018 and 2017: Years ended December 31, 2018 2017 Balance at beginning of year $ 3,794,065 $ 881,359 Addition to allowance for doubtful accounts 947,770 2,853,147 Translation adjustments (59,243 ) 59,559 Balance at end of year $ 4,682,592 $ 3,794,065 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 7 – Inventory Inventory consisted of the following: December 31, 2018 December 31, 2017 Raw materials $ 1,619,504 $ 1,513,306 Finished products 261,283 876,003 Work in process 76,271 183,249 Total Inventory $ 1,957,058 $ 2,572,558 For the years ended December 31, 2018, 2017 and 2016, the Company recorded inventory write –offs in the amounts of $700,379, $13,908 and a recovery of 84,414, respectively. |
Advances to suppliers
Advances to suppliers | 12 Months Ended |
Dec. 31, 2018 | |
Advances To Suppliers [Abstract] | |
Advances To Suppliers [Text Block] | Note 8 – Advances to suppliers December 31, 2018 December 31, 2017 Advances to suppliers $ 15,813,997 $ 13,953,920 Allowance for doubtful accounts (1,426,769 ) (627,151 ) Advances to suppliers, net 14,387,228 13,326,769 Less: Advances to suppliers, non-current - (2,109,005 ) Advances to suppliers, current $ 14,387,228 $ 11,217,764 The movement of allowance for doubtful accounts are as follows for the years ended December 31, 2018 and 2017: Years ended December 31, 2018 2017 Balance at beginning of year $ 627,151 $ 611,033 Addition to allowance for doubtful accounts 809,411 58,791 Deduction – utilization or return of advances - (83,963 ) Translation adjustments (9,793 ) 41,290 Balance at end of year $ 1,426,769 $ 627,151 Advances to suppliers – non-current December 31, 2018 December 31, 2017 Zhejiang Longquanzhixin Commercial & Trade Co., Ltd * $ - $ 1,647,905 Zhibo Jieli Special Battery Material Co., Ltd ** 453,900 461,100 Subtotal 453,900 2,109,005 Allowance for doubtful accounts (453,900 ) - Advances to suppliers – non-current, net $ - $ 2,109,005 * 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. ** representing the prepayments made to acquire machinery. |
Manufacturing Rebate Receivable
Manufacturing Rebate Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Manufacturing Rebate Receivable [Abstract] | |
Manufacturing Rebate Receivable [Text Block] | Note 9 – Manufacturing rebate receivable On September 13, 2013, $29,400 and $60,200 and 2016, respectively. The Company applied 109 and 100 $2,942,190 $9,795,512 $3,011,862 $671,130 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 10 – Property, plant and equipment, net Property, plant and equipment stated at cost less accumulated depreciation consisted of the following: December 31, 2018 December 31, 2017 Building $ 5,473,555 $ 5,089,190 Machinery and Production equipment 2,012,061 2,167,877 Electronic equipment 203,491 201,731 Office equipment 55,407 55,467 Automobiles 527,485 550,577 Construction in progress 121,255 11,943 Subtotal 8,393,254 8,076,785 Less: Accumulated depreciation (5,152,634 ) (4,701,906 ) Property, plant and equipment, net $ 3,240,620 $ 3,374,879 Depreciation expense was $1,049,274, $613,296 and $534,252 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Note 11 – Intangible assets, net December 31, 2018 December 31, 2017 Software $ 25,619 $ 23,292 Electronic vehicle registered license (Note 4) 13,690,078 13,907,238 Land use rights* 303,232 308,042 Patents** 4,539,000 4,611,000 Subtotal 18,557,929 18,849,572 Less: Accumulated amortization (3,289,867 ) (2,873,428 ) Intangible assets, net $ 15,268,062 $ 15,976,144 *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, 2018, and 2017, land use rights with net book value of $1,521,993 (among which $211,252 from continuing operations and $1,310,741 from discontinued operations) and $1,585,794 (among which $220,764 from continuing operations and $1,365,030 from discontinued operations), 50 5 $443,318, $201,647 and $6,842 ** |
Short-term bank loans
Short-term bank loans | 12 Months Ended |
Dec. 31, 2018 | |
Loans Payable [Member] | |
Short-term Debt [Line Items] | |
Short-term Debt [Text Block] | Note 12 – Short-term bank loans The Company’s short-term bank loans consist of the following: December 31 , 2018 December 31 , 2017 Loan payable to Bank of China Lishui Branch $ 4,808,314 $ 5,208,893 Loan payable to SPD bank 2,874,700 - Total $ 7,683,014 $ 5,208,893 On August 16, 2018 and August 20, 2018, Tantech Bamboo entered into two short-term loan agreements with Bank of China (Lishui Branch) to borrow $1,513,000 (RMB 10 million) and $1,328,414 (RMB 8.78 million) for seven months with a fixed annual interest rate of 6.01% and 6.06%, respectively. The purpose of the loans is to fund working capital needs. The loans were collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $3.9 million (RMB25,570,000) as of December 31, 2018. These two loans were also guaranteed by two individual related parties, Zhengyu Wang, CEO of the Company and his wife, Yefang Zhang. In addition, loan principal of $1,513,000 (RMB 10 million) was further guaranteed by a related party, Lishui Jiuanju Trading Co., Ltd., the president of which was also the COO of the Company. These two loans were fully repaid upon maturity in March 2019. On November 23, 2018, Tantech Bamboo entered into a short-term loan agreement with Shanghai Pudong Development Bank to borrow $2,874,700 (RMB 19 million) for a year with fixed annual interest rate of 6.96%. The purpose of the loan is to fund working capital needs. The loan was collateralized by building and land use right of Tantech Energy with maximum guaranteed amount up to approximately $4.4 million (RMB29,250,000) as of December 31, 2018. The loan was also guaranteed by three related parties, Zhengyu Wang, CEO and his wife, Yefang Zhang and Forasen Group Co., Ltd., a company owned by Zhengyu Wang and Yefang Zhang. On July 25, 2018, Tantech Bamboo entered into a short-term loan agreement with Shanghai Pudong Development Bank to borrow $3,026,000 (RMB 20 million) for four months due on November 24, 2018 with fixed annual interest rate of 6.525%. The purpose of the loan is to fund working capital needs. The loan was collateralized by building and land use right of Tantech Energy with maximum guaranteed amount up to approximately $4.4 million (RMB29,170,000). The loan was also guaranteed by three related parties, Zhengyu Wang, CEO and his wife, Yefang Zhang and Forasen Group Co., Ltd., a company owned by Zhengyu Wang and Yefang Zhang. The loan was fully repaid upon maturity in November 2018. On August 1, 2018, Tantech Charcoal entered into a short term loan agreement with Bank of China (Lishui Branch) to borrow $1,966,900 (RMB 13 million) for seven months with a fixed annual interest rate of 6.1%. The purpose of the loan was for working capital needs. The loan was guaranteed by Tantech Bamboo, two individual related parties, Zhengyu Wang and Yefang Zhang and a third party, Zhejiang Meifeng Tea Industry Co., Ltd. The loan was also collateralized by a property owned by Zhengyu Wang and Yefang Zhang. The loan was fully repaid upon maturity in February 2019. As of December 31, 2018, total bank loans payable amounted to $7,683,014. On September 26, 2017, Tantech Bamboo entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $3,057,093 (RMB 19.89 million) for a year with a fixed annual interest rate of 5.83%. The purpose of the loan was to fund working capital needs. The loan was collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $3.9 million (RMB25,570,000). The loan was also guaranteed by three related parties, Zhengyu Wang, CEO of the Company and his wife, Yefang Zhang and Lishui Jiuanju Trading Co., Ltd., the president of which was also the COO of the Company. The loan was fully repaid upon maturity in August 2018. On September 26, 2017, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $2,151,800 (RMB 14 6.10%. On March 30, 2017, Bamboo entered into a short term loan agreement with Bank of China (Lishui Branch) to borrow $3,074,000 (RMB 20 million) for half year period with a fixed annual interest rate of 5.66%. The purpose of the loan was for working capital purpose. The loan was guaranteed by a related party, Lishui Jiuanju Trading Co., Ltd. and the Company’s CEO Mr. Zhengyu Wang and his wife Ms. Yefang Zhang. The loan was fully repaid upon maturity on September 29, 2017. On March 30, 2017, the Company entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $2,213,280 (RMB 14.4 million) for half a year due on September 29, 2017 with fixed annual interest rate of 5.66%. The purpose of the borrowing was for working capital purpose. 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. 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. As of December 31, 2017, total bank loans payable amounted to $5,208,893. For the years ended December 31, 2018, 2017 and 2016, the interest expense related to bank loans was $378,857, $479,358 and $388,007, respectively. |
Bank acceptance notes payable
Bank acceptance notes payable | 12 Months Ended |
Dec. 31, 2018 | |
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% to 100% of the balances of the bank acceptance notes. As of December 31, 2018, and 2017, deposits of $2,121,377 and $3,901,526 were reported as restricted cash on balance sheet. Bank acceptance notes payable consisted of the following: December 31 , 2018 December 31 , 2017 Letter of credit issued by Shanghai Pudong Development Bank Lishui Branch (a) $ - $ 3,074,000 Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch (b) 2,121,377 3,901,526 Total $ 2,121,377 $ 6,975,526 (a) Letter of credit of $3,074,000 was issued on August 15, 2017 and due on August 14, 2018. $4.5 (b) Bank acceptance notes payable of $2,121,377 (RMB14,021,000) issued by Bank of Zhang Jiagang Yule Branch with due dates from February 7, 2019 to June 28, 2019. The Company is required to maintain restricted cash deposits at 100% Bank acceptance notes payable of $3,901,526 (RMB 25,384,032) 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. The bank acceptance notes were paid in full upon maturity. |
Convertible Note
Convertible Note | 12 Months Ended |
Dec. 31, 2018 | |
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, which can be converted into the Company’s common stock after six months following the effective date, at 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. On September 27, 2017, the parties mutually agreed to terminate the Convertible Note Agreement, effective immediately. From the date the parties entered into the Convertible Note Agreement through the dated of termination, no funds were advanced under the Convertible Note Agreement, and no amounts were due. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 15 – Related Party Transactions The balances due to related parties were as follows: December 31, 2018 December 31, 2017 Dr. Henglong Chen and its affiliates * $ 1,227,773 $ 240,462 Mr. Yulong Chen, a shareholder of the Company - 1,537,000 Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and CEO of the Company 874,402 1,217,766 Total $ 2,102,175 $ 2,995,228 * 70% 2,500,000 As of December 31, 2018 and 2017, the Company also borrowed $874,402 and $1,217,766 from Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and CEO of the Company, for working capital purpose. For the year ended December 31, 2017, the Company borrowed $1,537,000 from Mr. Yulong Chen, a shareholder of the Company for working capital purpose. The balance was fully repaid during the year ended December 31, 2018. All balances of due to the related parties were unsecured, interest-free and due upon demand. As of December 31, 2018 and 2017, the Company had total accounts receivable balances of $0 and $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 11 and 12). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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 (RMB 57,070,000) by pledging the Company’s building with carrying value approximately of $8.8 million as the collateral for the loan and notes. The guaranty will expire on July 23, 2020. As of December 31, 2016, the Company provided a guaranty on behalf of Forasen Group’s outstanding line of credit of $8,645,459 (RMB 60,050,000) by pledging the Company’s building with a net book value of approximately $4.0 million as the collateral for the loan and notes. The guaranty on the line of credit expired on April 8, 2017. Operating lease Shangchi Automobile leased certain factory facilities under operating leases through May 2019. The annual rent under operating lease agreement was approximately $150,000 (RMB 1 million). Shenzhen E-Motors leased office space under operating leases for one year from November 12, 2018 to November 11, 2019 with annual rent of approximately $14,000 (RMB93,600). The rental expense for the years ended December 31, 2018 and 2017 were $139,507 and $73,184 |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2018 | |
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 shares of its common stock at $4.70 per share for $7,957,100 to various purchasers in a private placement transaction. On December 28, 2016, the Company issued 1,018,935 shares of the Company’s common stock to acquire the 5% minority interest of Tantech Bamboo from five individual holders. Please refer to Note 18. On July 12, 2017, in connection of the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors), the Company issued 2,500,000 $6,500,000 $2.6 on July 12, 2017. On September 27, 2017, the Company and certain institutional investors entered into a securities purchase agreement in connection with the September 2017 Offering, pursuant to which the Company agreed to sell an aggregate of 1,891,307 common shares and warrants to initially purchase an aggregate of 1,078,045 common shares, consisting of 945,654 investor warrants and 132,391 placement agent warrants. The common share purchase price was $3.45 per common share. On September 29, 2017, the Company completed the September 2017 Offering. After deducting offering expenses, the Company received $5,968,208 in net proceeds from the sale of the common shares. On September 19, 2018, the Company issued 150,000 shares of common stock to three individuals for consulting services to be provided for the period from September 19, 2018 to May 18, 2019, which were valued at $243,000 based on the quoted market price at issuance. The entire cost of $243,000 was amortized over the 8-month service period using straight line method. Warrants registered in September 2017 Offering In connection with the September 2017 offering, the Company registered and issued warrants to purchase an aggregate of 1,078,045 132,391 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, 2018, the total number of warrants outstanding was 1,078,045 with weighted average remaining life of 4 |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | Note 18 – Noncontrolling Interests A reconciliation of non-controlling interest as of December 31, 2018 and 2017 is as follows: December 31 , 2018 December 31 , 2017 Beginning Balance $ 8,799,460 $ - Noncontrolling interest through acquisition of Shangchi Automobile (Note 4) - 9,583,646 Proportionate shares of net income (loss) (896,769 ) (754,084 ) Foreign currency translation adjustment 15,405 (30,102 ) Total $ 7,918,096 $ 8,799,460 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. As of December 31, 2018 and 2017, the noncontrolling interests balances represented the noncontrolling shareholder’s 30% equity interests in Shangchi Automobile (formerly known as Suzhou E-Motors) (see Note 4). |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Taxes [Abstract] | |
Taxes Disclosure [Text Block] | Note 19 – Taxes Taxes Payable Taxes payable as of December 31, 2018 and 2017 consist of the following: December 31, 2018 December 31, 2017 Corporation income tax payable $ 227,386 $ 416,579 Other tax payable 117,177 125,813 Total $ 344,563 $ 542,392 Corporation Income Tax (“CIT”) Tantech BVI was incorporated in the BVI and is not subject to income taxes under the current laws of BVI. USCNHK and Euroasia are holding companies registered in Hong Kong and has no operating profit for tax liabilities. Tantech Bamboo was registered in the PRC and is subject to corporate income tax at a reduced rate of 15% starting from 2008 when it was approved by local government as a high-tech company. Tantech Energy was registered in the PRC and is also subject to corporate income tax at a reduced rate of 15% starting from 2013 when it was approved by local government as a high-tech company. Lishui Tantech Energy, Jiamu, Jiyi, Wangbo, Bamboo Tourism, Tantech Charcoal, Tantech Babiku and Tanbo Tech are all subject to income tax at unified rate of 25%. Shangchi Automobile was approved by local government as a high –Tech company on December 7, 2017 and was subject to income tax rate of 15%. The impact of the tax holidays noted above decreased foreign taxes by $158,424, $899,503 and $906,131 for the years ended December 31, 2018, 2017 and 2016, respectively. The benefit of the tax holidays on net income per The following table reconciles PRC statutory rates to the Company’s effective tax rates for the years ended December 31, 2018, 2017 and 2016: Years ended December 31, 2018 2017 2016 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (a) (8 )% (10 )% (10 )% Permanent difference and others (1 )% 2 % 1 % Changes of deferred tax assets valuation allowances 35 % 17 % - % Total 51 % 34 % 16 % (a) Three of the Company’s subsidiaries, Tantech Bamboo, Shangchi Automobile and Tantech Energy are subject to tax rate of 15%. The provision for income tax consisted of the following: Years ended December 31, 2018 2017 2016 Current $ 1,031,158 $ 1,334,254 $ 1,465,744 Deferred - 193,749 (98,474 ) Total $ 1,031,158 $ 1,528,003 $ 1,367,270 Significant components of deferred tax assets and liabilities are as follows: December 31, 2018 December 31, 2017 Deferred tax assets: Allowance for doubtful accounts and other reserves $ 2,389,719 $ 1,682,706 Valuation allowance (2,389,719 ) (1,682,706 ) Total $ - $ - Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 2,053,512 $ 2,086,086 Total $ 2,053,512 $ 2,086,086 At December 31, 2018 and 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. $2,389,719 and $1,682,706, $707,013, $1,212,303 and $73,516 for the years ended December 31, 2018, 2017 and 2016, respectively. The Company’s management reviews this valuation allowance periodically and makes adjustments as necessary. |
Major customers and suppliers
Major customers and suppliers | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018, 2017 and 2016, two major customers accounted for approximately 49%, 47% and 27% 45%, 13% and 11% 43% of the Company’s accounts receivable balance. The Company also had certain major suppliers whose purchases individually represented 10% or more of the Company’s total purchases. 61% 88% |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2018 | |
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. The following table presents summary information by segment for the years ended December 31, 2018, 2017 and 2016, respectively. Consumer product Trading EV Total 2018 2017 2016 2018 2017 2016 2018 2017 2018 2017 2016 Revenue from external customers $ 22,388,827 $ 31,889,149 $ 39,348,649 $ 3,776,842 $ 1,829,475 $ 553,693 $ 3,395,730 8,578,988 29,561,399 $ 42,297,612 $ 39,902,342 Revenue from inter segment (7,790,931 ) (2,736,204 ) 576,302 - (24,550 ) 12,345 - - (7,790,931 ) (2,760,754 ) 588,647 Cost of revenue 14,347,896 23,693,289 26,853,812 3,290,089 1,412,062 25,504 3,894,334 6,636,402 21,532,319 31,741,753 26,879,316 Gross profit 8,040,931 8,195,860 12,494,837 486,753 417,413 528,189 (498,604 ) 1,942,586 8,029,080 10,555,859 13,023,026 Interest Expenses 292,996 290,383 341,464 126,030 124,587 129,192 207,317 136,162 626,343 551,044 470,656 Depreciation & amortization 420,301 454,178 453,671 - 25,345 51,141 526,725 299,075 947,026 778,598 504,812 Capital expenditure 13,512,820 74,202 10,819 209,721 - - 792,981 8,061 14,515,522 82,263 10,819 Segment assets 116,847,478 83,024,439 92,878,334 5,756,612 5,988,364 1,424,333 11,589,924 49,474,923 134,194,014 138,487,726 94,302,667 Segment profit $ 4,135,969 $ 5,258,037 $ 7,109,315 $ (134,511 ) $ 203,157 $ (149,755 ) $ (3,004,827 ) (2,513,613 ) 996,631 $ 2,947,581 $ 6,959,560 All of the Company's long-lived assets are located in the PRC. Geographic information about the revenues, which are classified based on customers, is set out as follows: Years ended December 31, 2018 2017 2016 Revenue from China $ 29,561,399 $ 42,297,612 $ 39,346,217 Revenue directly from foreign countries - - 556,125 Total Revenue $ 29,561,399 $ 42,297,612 $ 39,902,342 |
Long term investment
Long term investment | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Investments [Abstract] | |
Investment [Text Block] | Note 22 – Long term investment On January. 10, 2018, the Company invested approximately $18.2 million (or RMB 120 million) to acquire 18% equity interest in Libo Haokun Stone Co., Ltd. (“Libo Haokun”). Libo Haokun holds a government-issued permit and has the exclusive right to mine a 0.11-square-kilometer marble quarry in the southwestern province of Guizhou province, China. Libo Haokun obtained the permit to mine the quarry from the local government in September 2016. As the Company did not have significant influence over the equity investee, the investment was accounted for using the cost method. For the year ended December 31, 2018, the Company did not recognize any impairment losses for the long term investment. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 23 – Subsequent events On February 26, 2019, Tantech Charcoal entered into a short term loan agreement with Bank of China (Lishui Branch) to borrow approximately $1.5 million (RMB 10 million) for one year with annual interest rate of 4.35%. The purpose of the loan was for working capital needs. The loan was guaranteed by Tantech Bamboo, two individual related parties, Zhengyu Wang and Yefang Zhang and a third party, Zhejiang Meifeng Tea Industry Co., Ltd. The loan was also collateralized by two properties owned by Zhengyu Wang and Yefang Zhang. On March 18, 2019, Tantech Bamboo entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow approximately $2.8 million (RMB 18.78 million) with annual interest rate of 6.05%. Principal of approximately $150,000 (RMB 1 million) will be due on January 14, 2020 and the remaining principal of approximately $2.7 million (RMB17,780,000) will be due on March 17, 2020. The purpose of the loan was to fund working capital needs. The loan was collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $3.9 million (RMB25,960,000). The loan was also guaranteed by three related parties, Zhengyu Wang, CEO of the Company and his wife, Yefang Zhang and Lishui Jiuanju Trading Co., Ltd., the president of which was also the COO of the Company. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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, and entities controlled through a series of agreements known as variable interest agreements <“VIE”> (collectively, the “Company”). All significant inter-company balances and transactions are eliminated upon consolidation. |
Non Controlling Interest [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. The following assets and liabilities of the consolidated VIE are included in the accompanying consolidated financial statements of the Company as of December 31, 2018 December 31, December 31, Current assets $ 6,415,138 $ 16,760,444 Non-current assets 35,102,432 36,352,228 Total assets $ 41,517,570 $ 53,112,672 Current liabilities $ (13,724,904 ) $ (21,695,054 ) Non-current liabilities (2,053,512 ) (2,086,086 ) Total liabilities $ (15,778,416 ) $ (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 0% to 100% of the balance of the bank acceptance notes payable in restricted cash to ensure future credit availability. The Company earns interest at a variable rate per month on this restricted cash. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. The Company adopted the new standard effective January 1, 2018, using the retrospective transition method. |
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. |
Inventory, Policy [Policy Text Block] | Inventory The Company values its inventories at the lower of cost, determined on a weighted average basis, or net realizable value. The Company reviews its inventories periodically to determine if any reserves are necessary for potential obsolescence or if a write-down is necessary if the carrying value exceeds net realizable value. |
Advances To Suppliers [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. The estimated useful lives for significant property and equipment are as follows: Buildings 20 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years Repairs and maintenance costs are normally charged to earnings in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Construction in progress includes direct costs of construction or acquisition of equipment, interest expense associated with the loans used for the construction and design fees incurred. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until it is completed and ready for its intended use. |
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. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Goodwill Indefinite Licenses and permit Indefinite Software 5 - 10 years Land use right 50 years Patents 10 years 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 at least annually or whenever indicators of impairment are present. There was no intangible assets impairment as of December 31, 2018 and 2017. |
Investment, Policy [Policy Text Block] | Long term investment The Company accounts for investment in equity investees over which it has significant influence but does not own a majority of the equity interest or lack of control using the equity method. For investment in equity investees over which the Company does not have significant influence or the underlying shares the Company invested in are not considered in-substance common stock and have no readily determinable fair value, the cost method accounting is applied. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company records the cost method investments at historical cost and subsequently record any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Investment in equity investees are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. |
Customer Deposits [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. |
Due to third parties [Policy Text Block] | Due to third parties Due to third parties represent amounts the Company borrowed from third parties for working capital purpose. The due to third parties balance are unsecured, interest-free and due upon demand. As of December 31, 2018 and 2017, the due to third parties balance amounted to $3,253,253 and $708,864, respectively. |
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 adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective approach. Revenues for the year ended December 31, 2018 were presented under ASC 606, and revenues for the years ended December 31, 2017 and 2016 were not adjusted and continue to be presented under ASC Topic 605, Revenue Recognition. There is no adjustment to the opening balance of retained earnings at January 1, 2018 since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Company’s revenues are primarily derived from the following sources: Sales of products: The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time the product is delivered to the customer and control is transferred (point of sale). The Company records shipping and handling costs in cost of sales. 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. 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. |
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. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2018 December 31, 2017 December 31, 2016 US$:RMB exchange rate Period End $ 0.1513 Period End $ 0.1537 Period End $ 0.1440 Average $ 0.1454 Average $ 0.1478 Average $ 0.1506 |
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, 2018, 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, 2018 and 2017. 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 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of taxes which is determined to be late or deficient, with any penalty being expensed in the period when a determination is made by the tax authorities that a penalty is due. During the reporting periods, the Company had no dispute with PRC tax authorities and there was no tax penalty incurred. |
Earnings (loss) per Share ("EPS") [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, 2018 and 2017, there were 1,078,045 warrants not included in the diluted loss per share as they would be anti-dilutive. |
Statement Of Cash Flows [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 For the year ended December 31, 2018, the Company closed Lishui Zhongzhu and Tantech Babiku, and is planning to sell Tantech Energy’s remaining operation, due to business strategy change. In connection with the discontinued operations of the business, certain prior period amounts have been reclassified to conform to the current period presentation. |
Risks And Uncertainties [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 The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 specifies the accounting for leases. For operating leases, ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. ASU 2016-02 is effective for public business entities for annual reporting periods and interim periods within those years beginning after December 15, 2018. The Company does not expect this guidance will have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S. federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act. The Company does not expect this guidance will have a material impact on its consolidated financial statements. Recent accounting pronouncements 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. On June 20, 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU No. 2018-07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The new standard is effective for us on January 1, 2019. Early adoption is permitted, including in interim periods, and should be applied to all new awards granted after the date of adoption. The Company does not expect this guidance will have a material impact on its consolidated financial statements. In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect this guidance will have a material impact on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, December 31, Current assets $ 6,415,138 $ 16,760,444 Non-current assets 35,102,432 36,352,228 Total assets $ 41,517,570 $ 53,112,672 Current liabilities $ (13,724,904 ) $ (21,695,054 ) Non-current liabilities (2,053,512 ) (2,086,086 ) Total liabilities $ (15,778,416 ) $ (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 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years |
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 5 - 10 years Land use right 50 years Patents 10 years |
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, 2018 December 31, 2017 December 31, 2016 US$:RMB exchange rate Period End $ 0.1513 Period End $ 0.1537 Period End $ 0.1440 Average $ 0.1454 Average $ 0.1478 Average $ 0.1506 |
Acquisition of E-Motors (Tables
Acquisition of E-Motors (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The aggregated financial results of the discontinued business are set forth below. December 31 December 31 2018 2017 Cash and cash equivalent $ 32,919 $ 223,131 Accounts receivable 5,257,684 5,422,031 Inventory 475,827 218,157 Advances to suppliers 2,647,415 6,303,201 Prepaid value-added taxes 72,742 162,010 Other receivables 26,567 3,505 Total current assets from discontinued operations 8,513,154 12,332,035 Accounts receivable from EDLC business 1,235,489 1,502,518 Property, plant and equipment, net 6,012,285 6,508,968 Intangible assets, net 1,310,741 1,500,286 Total non-current assets from discontinued operations 8,558,515 9,511,772 Total assets from discontinued operations 17,071,669 21,843,807 Accounts payable 1,038,888 1,851,442 Customer deposits 337,743 196,935 Taxes payable 140,212 253,790 Accrued liabilities and other payables 145,409 154,767 Total current liabilities from discontinued operations 1,662,252 2,456,934 Total liabilities from discontinued operations $ 1,662,252 $ 2,456,934 Years ended December 31, 2018 2017 2016 Revenue $ 9,107,922 $ 4,189,190 $ 7,763,332 Cost of revenues 9,116,707 2,097,436 7,242,578 Gross profit (loss) (8,785 ) 2,091,754 520,754 Operating expenses 1,687,287 4,187,168 2,876,556 Loss from operations (1,696,072 ) (2,095,414 ) (2,355,802 ) Other income (expense), net 1,779,439 2,168,132 (2,065 ) Net income (loss) before tax 83,367 72,718 (2,357,867 ) Income taxes - 7,168 - Net income (loss) from discontinued operations, net of tax $ 83,367 $ 65,550 $ (2,357,867 ) |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 December 31, 2017 Accounts receivable – non-related parties $ 37,177,953 $ 45,192,166 Accounts receivable – related parties * - 3,434,845 Subtotal 37,177,953 48,627,011 Allowance for doubtful accounts (4,682,592 ) (3,794,065 ) Accounts receivable, net $ 32,495,361 $ 44,832,946 * $3,434,845 $3.3 million (RMB 21.8 |
Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Allowance For Doubtful Accounts [Table Text Block] | The movement of allowance for doubtful accounts are as follows for the years ended December 31, 2018 and 2017: Years ended December 31, 2018 2017 Balance at beginning of year $ 3,794,065 $ 881,359 Addition to allowance for doubtful accounts 947,770 2,853,147 Translation adjustments (59,243 ) 59,559 Balance at end of year $ 4,682,592 $ 3,794,065 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consisted of the following: December 31, 2018 December 31, 2017 Raw materials $ 1,619,504 $ 1,513,306 Finished products 261,283 876,003 Work in process 76,271 183,249 Total Inventory $ 1,957,058 $ 2,572,558 |
Advances to suppliers (Tables)
Advances to suppliers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Advances to suppliers [Line Items] | |
Schedule Of Advances To Suppliers, Current [Table Text Block] | December 31, 2018 December 31, 2017 Advances to suppliers $ 15,813,997 $ 13,953,920 Allowance for doubtful accounts (1,426,769 ) (627,151 ) Advances to suppliers, net 14,387,228 13,326,769 Less: Advances to suppliers, non-current - (2,109,005 ) Advances to suppliers, current $ 14,387,228 $ 11,217,764 |
Schedule Of Advances To Suppliers, Non-Current [Table Text Block] | December 31, 2018 December 31, 2017 Zhejiang Longquanzhixin Commercial & Trade Co., Ltd * $ - $ 1,647,905 Zhibo Jieli Special Battery Material Co., Ltd ** 453,900 461,100 Subtotal 453,900 2,109,005 Allowance for doubtful accounts (453,900 ) - Advances to suppliers – non-current, net $ - $ 2,109,005 * 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. ** 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] | The movement of allowance for doubtful accounts are as follows for the years ended December 31, 2018 and 2017: Years ended December 31, 2018 2017 Balance at beginning of year $ 627,151 $ 611,033 Addition to allowance for doubtful accounts 809,411 58,791 Deduction – utilization or return of advances - (83,963 ) Translation adjustments (9,793 ) 41,290 Balance at end of year $ 1,426,769 $ 627,151 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Building $ 5,473,555 $ 5,089,190 Machinery and Production equipment 2,012,061 2,167,877 Electronic equipment 203,491 201,731 Office equipment 55,407 55,467 Automobiles 527,485 550,577 Construction in progress 121,255 11,943 Subtotal 8,393,254 8,076,785 Less: Accumulated depreciation (5,152,634 ) (4,701,906 ) Property, plant and equipment, net $ 3,240,620 $ 3,374,879 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | December 31, 2018 December 31, 2017 Software $ 25,619 $ 23,292 Electronic vehicle registered license (Note 4) 13,690,078 13,907,238 Land use rights* 303,232 308,042 Patents** 4,539,000 4,611,000 Subtotal 18,557,929 18,849,572 Less: Accumulated amortization (3,289,867 ) (2,873,428 ) Intangible assets, net $ 15,268,062 $ 15,976,144 *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, 2018, and 2017, land use rights with net book value of $1,521,993 (among which $211,252 from continuing operations and $1,310,741 from discontinued operations) and $1,585,794 (among which $220,764 from continuing operations and $1,365,030 from discontinued operations), 50 5 $443,318, $201,647 and $6,842 ** |
Short-term bank loans (Tables)
Short-term bank loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The Company’s short-term bank loans consist of the following: December 31 , 2018 December 31 , 2017 Loan payable to Bank of China Lishui Branch $ 4,808,314 $ 5,208,893 Loan payable to SPD bank 2,874,700 - Total $ 7,683,014 $ 5,208,893 |
Bank acceptance notes payable (
Bank acceptance notes payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Bank acceptance notes payable consisted of the following: December 31 , 2018 December 31 , 2017 Letter of credit issued by Shanghai Pudong Development Bank Lishui Branch (a) $ - $ 3,074,000 Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch (b) 2,121,377 3,901,526 Total $ 2,121,377 $ 6,975,526 (a) Letter of credit of $3,074,000 was issued on August 15, 2017 and due on August 14, 2018. $4.5 (b) Bank acceptance notes payable of $2,121,377 (RMB14,021,000) issued by Bank of Zhang Jiagang Yule Branch with due dates from February 7, 2019 to June 28, 2019. The Company is required to maintain restricted cash deposits at 100% |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | The balances due to related parties were as follows: December 31, 2018 December 31, 2017 Dr. Henglong Chen and its affiliates * $ 1,227,773 $ 240,462 Mr. Yulong Chen, a shareholder of the Company - 1,537,000 Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and CEO of the Company 874,402 1,217,766 Total $ 2,102,175 $ 2,995,228 * 70% 2,500,000 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Reconciliation of non controlling interest [Table Text Block] | A reconciliation of non-controlling interest as of December 31, 2018 and 2017 is as follows: December 31 , 2018 December 31 , 2017 Beginning Balance $ 8,799,460 $ - Noncontrolling interest through acquisition of Shangchi Automobile (Note 4) - 9,583,646 Proportionate shares of net income (loss) (896,769 ) (754,084 ) Foreign currency translation adjustment 15,405 (30,102 ) Total $ 7,918,096 $ 8,799,460 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxes [Abstract] | |
Schedule Of Taxes Payable [Table Text Block] | Taxes payable as of December 31, 2018 and 2017 consist of the following: December 31, 2018 December 31, 2017 Corporation income tax payable $ 227,386 $ 416,579 Other tax payable 117,177 125,813 Total $ 344,563 $ 542,392 |
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, 2018, 2017 and 2016: Years ended December 31, 2018 2017 2016 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (a) (8 )% (10 )% (10 )% Permanent difference and others (1 )% 2 % 1 % Changes of deferred tax assets valuation allowances 35 % 17 % - % Total 51 % 34 % 16 % (a) Three of the Company’s subsidiaries, Tantech Bamboo, Shangchi Automobile 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, 2018 2017 2016 Current $ 1,031,158 $ 1,334,254 $ 1,465,744 Deferred - 193,749 (98,474 ) Total $ 1,031,158 $ 1,528,003 $ 1,367,270 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of deferred tax assets and liabilities are as follows: December 31, 2018 December 31, 2017 Deferred tax assets: Allowance for doubtful accounts and other reserves $ 2,389,719 $ 1,682,706 Valuation allowance (2,389,719 ) (1,682,706 ) Total $ - $ - Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 2,053,512 $ 2,086,086 Total $ 2,053,512 $ 2,086,086 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents summary information by segment for the years ended December 31, 2018, 2017 and 2016, respectively. Consumer product Trading EV Total 2018 2017 2016 2018 2017 2016 2018 2017 2018 2017 2016 Revenue from external customers $ 22,388,827 $ 31,889,149 $ 39,348,649 $ 3,776,842 $ 1,829,475 $ 553,693 $ 3,395,730 8,578,988 29,561,399 $ 42,297,612 $ 39,902,342 Revenue from inter segment (7,790,931 ) (2,736,204 ) 576,302 - (24,550 ) 12,345 - - (7,790,931 ) (2,760,754 ) 588,647 Cost of revenue 14,347,896 23,693,289 26,853,812 3,290,089 1,412,062 25,504 3,894,334 6,636,402 21,532,319 31,741,753 26,879,316 Gross profit 8,040,931 8,195,860 12,494,837 486,753 417,413 528,189 (498,604 ) 1,942,586 8,029,080 10,555,859 13,023,026 Interest Expenses 292,996 290,383 341,464 126,030 124,587 129,192 207,317 136,162 626,343 551,044 470,656 Depreciation & amortization 420,301 454,178 453,671 - 25,345 51,141 526,725 299,075 947,026 778,598 504,812 Capital expenditure 13,512,820 74,202 10,819 209,721 - - 792,981 8,061 14,515,522 82,263 10,819 Segment assets 116,847,478 83,024,439 92,878,334 5,756,612 5,988,364 1,424,333 11,589,924 49,474,923 134,194,014 138,487,726 94,302,667 Segment profit $ 4,135,969 $ 5,258,037 $ 7,109,315 $ (134,511 ) $ 203,157 $ (149,755 ) $ (3,004,827 ) (2,513,613 ) 996,631 $ 2,947,581 $ 6,959,560 |
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, 2018 2017 2016 Revenue from China $ 29,561,399 $ 42,297,612 $ 39,346,217 Revenue directly from foreign countries - - 556,125 Total Revenue $ 29,561,399 $ 42,297,612 $ 39,902,342 |
Organization and nature of bu_2
Organization and nature of business (Details Textual) - shares | 1 Months Ended | |||
Dec. 28, 2016 | Dec. 31, 2018 | Jul. 12, 2017 | Aug. 19, 2015 | |
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | 70.00% | 70.00% | |
Equity Method Investment, Ownership Percentage | 70.00% | 70.00% | 95.00% | |
Euroasia [Member] | ||||
Equity Method Investment, Ownership Percentage | 100.00% | |||
Hangzhou Jiyi Trading Co., Ltd [Member] | ||||
Equity Method Investment, Ownership Percentage | 100.00% | |||
USCNHK [Member] | ||||
Equity Method Investment, Ownership Percentage | 100.00% | |||
Tantech Bamboo [Member] | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,018,935 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||
Equity Method Investment, Ownership Percentage | 100.00% | |||
Hangzhou Jiyi Trading Co., Ltd [Member] | ||||
Equity Method Investment, Ownership Percentage | 19.00% | |||
Hanzhou Wangbo Investment Management Co., Ltd ("Wangbo") [Member] | ||||
Equity Method Investment, Ownership Percentage | 51.00% |
Summary of significant accoun_4
Summary of significant accounting policies (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | $ 70,313,944 | $ 89,244,884 |
Total Assets | 134,194,014 | 138,487,726 |
Current liabilities | (22,154,815) | (26,789,262) |
Total Liabilities | (24,208,327) | (28,875,348) |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets | 6,415,138 | 16,760,444 |
Non-current assets | 35,102,432 | 36,352,228 |
Total Assets | 41,517,570 | 53,112,672 |
Current liabilities | (13,724,904) | (21,695,054) |
Non-current liabilities | (2,053,512) | (2,086,086) |
Total Liabilities | $ (15,778,416) | $ (23,781,140) |
Summary of significant accoun_5
Summary of significant accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
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] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Transportation equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 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] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary of significant accoun_6
Summary of significant accounting policies (Details 2) | 12 Months Ended |
Dec. 31, 2018 | |
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 | 5 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 accoun_7
Summary of significant accounting policies (Details 3) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Foreign Currency Translation [Abstract] | |||
Foreign Currency Exchange Rate, Translation | 0.1513 | 0.1537 | 0.1440 |
Foreign Currrency Average Exchange Rate Translation | 0.1454 | 0.1478 | 0.1506 |
Summary of significant accoun_8
Summary of significant accounting policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Value Added Tax Description | The Company is subject to VAT for selling merchandise. The applicable VAT rate is 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. | |
Due to Third Parties, Current | $ 3,253,253 | $ 708,864 |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Restricted Cash Minimum Balance Maintain Percentage | 100.00% | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Restricted Cash Minimum Balance Maintain Percentage | 0.00% | |
Warrant [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,078,045 | |
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 | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 01, 2018USD ($) | Aug. 01, 2018CNY (¥) | |
Proceeds from Issuance of Common Stock | $ 5,600,000 | $ 0 | $ 5,968,208 | $ 7,957,100 | ||
Cash and Cash Equivalents, at Carrying Value | 7,748,416 | 9,717,909 | ||||
Short-term Bank Loans and Notes Payable | 7,683,014 | 5,208,893 | $ 1,966,900 | ¥ 13 | ||
Notes Payable to Bank, Current | $ 2,121,377 | $ 6,975,526 |
Acquisition of E-Motors (Detail
Acquisition of E-Motors (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill | $ 8,861,361 | $ 9,001,924 |
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 (Deta_2
Acquisition of E-Motors (Details Textual) | Jul. 12, 2017USD ($)shares | Jul. 12, 2017CNY (¥)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 28, 2016 |
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 70.00% | 5.00% | |||
Payments to Acquire Businesses, Gross | $ 0 | $ 4,552,240 | $ 3,372,925 | |||
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 |
Discontinued operations (Detail
Discontinued operations (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalent | $ 32,919 | $ 223,131 |
Accounts receivable | 5,257,684 | 5,422,031 |
Inventory | 475,827 | 218,157 |
Advances to suppliers | 2,647,415 | 6,303,201 |
Prepaid value-added taxes | 72,742 | 162,010 |
Other receivables | 26,567 | 3,505 |
Total current assets from discontinued operations | 8,513,154 | 12,332,035 |
Accounts receivable from EDLC business | 1,235,489 | 1,502,518 |
Property, plant and equipment, net | 6,012,285 | 6,508,968 |
Intangible assets, net | 1,310,741 | 1,500,286 |
Total non-current assets from discontinued operations | 8,558,515 | 9,511,772 |
Total assets from discontinued operations | 17,071,669 | 21,843,807 |
Accounts payable | 1,038,888 | 1,851,442 |
Customer deposits | 337,743 | 196,935 |
Taxes payable | 140,212 | 253,790 |
Accrued liabilities and other payables | 145,409 | 154,767 |
Total current liabilities from discontinued operations | 1,662,252 | 2,456,934 |
Total liabilities from discontinued operations | $ 1,662,252 | $ 2,456,934 |
Discontinued operations (Deta_2
Discontinued operations (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | $ 9,107,922 | $ 4,189,190 | $ 7,763,332 |
Cost of revenues | 9,116,707 | 2,097,436 | 7,242,578 |
Gross profit (loss) | (8,785) | 2,091,754 | 520,754 |
Operating expenses | 1,687,287 | 4,187,168 | 2,876,556 |
Loss from operations | (1,696,072) | (2,095,414) | (2,355,802) |
Other income (expense), net | 1,779,439 | 2,168,132 | (2,065) |
Net income (loss) before tax | 83,367 | 72,718 | (2,357,867) |
Income taxes | 0 | 7,168 | 0 |
Net income (loss) from discontinued operations, net of tax | $ 83,367 | $ 65,550 | $ (2,357,867) |
Discontinued operations (Deta_3
Discontinued operations (Details Textual) ¥ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 14, 2017USD ($) | Dec. 14, 2017CNY (¥) |
Operating Leases, Future Minimum Payments Receivable, Current | $ 0 | |||||
Operating Leases, Future Minimum Payments Receivable, in Two Years | $ 0 | |||||
Electric Double Layer Capacitor [Member] | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 2,500 | ¥ 16 | ||||
Disposal Group, Including Discontinued Operation Initial Down Payment Due | $ 700,000 | ¥ 4,480 |
Accounts receivable (Details)
Accounts receivable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable – non-related parties | $ 37,177,953 | $ 45,192,166 | |
Accounts receivable – related parties | [1] | 0 | 3,434,845 |
Subtotal | 37,177,953 | 48,627,011 | |
Allowance for doubtful accounts | (4,682,592) | (3,794,065) | |
Accounts Receivable, Net | $ 32,495,361 | $ 44,832,946 | |
[1] | As of December 31, 2017, the Company had total accounts receivable balances of $3,434,845 due from the two affiliates of the original shareholders of Shangchi Automobile (formerly known as Suzhou E-Motors). Shangchi Automobile did not have related party’s sales to these two related parties after being acquired by the Company on July 12, 2017. The Company collected back approximately $3.3 million (RMB 21.8 million) from one of the two related parties during the year ended December 31, 2018. In addition, the balance of the other related party of approximately 77,000 (RMB506,725) was included in the balance of accounts receivable – non-related parties as of December 31, 2018 as this customer was no longer a related party for the year ended December 31, 2018. |
Accounts receivable (Details 1)
Accounts receivable (Details 1) - Accounts Receivable [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of year | $ 3,794,065 | $ 881,359 |
Addition to doubtful accounts expense | 947,770 | 2,853,147 |
Deduction - collection of doubtful accounts | 0 | 0 |
Translation adjustments | (59,243) | 59,559 |
Balance at end of year | $ 4,682,592 | $ 3,794,065 |
Accounts receivable (Details Te
Accounts receivable (Details Textual) | May 06, 2018USD ($) | May 06, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts Receivable, Related Parties | [1] | $ 0 | $ 3,434,845 | |||
Cash Collected From Related Party In Payment Of Accounts Receivable | $ 3,300,000 | ¥ 21,800,000 | ||||
Accounts Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Due from Other Related Parties, Current | $ 77,000 | ¥ 506,725 | ||||
Suzhou E Motors Co Ltd [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts Receivable, Related Parties | $ 3,434,845 | |||||
[1] | As of December 31, 2017, the Company had total accounts receivable balances of $3,434,845 due from the two affiliates of the original shareholders of Shangchi Automobile (formerly known as Suzhou E-Motors). Shangchi Automobile did not have related party’s sales to these two related parties after being acquired by the Company on July 12, 2017. The Company collected back approximately $3.3 million (RMB 21.8 million) from one of the two related parties during the year ended December 31, 2018. In addition, the balance of the other related party of approximately 77,000 (RMB506,725) was included in the balance of accounts receivable – non-related parties as of December 31, 2018 as this customer was no longer a related party for the year ended December 31, 2018. |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 1,619,504 | $ 1,513,306 |
Finished products | 261,283 | 876,003 |
Work in process | 76,271 | 183,249 |
Total Inventory | $ 1,957,058 | $ 2,572,558 |
Inventory (Details Textual)
Inventory (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory [Line Items] | |||
Inventory, LIFO Reserve, Period Charge | $ 700,379 | $ 13,908 | $ (84,414) |
Advances to suppliers (Details)
Advances to suppliers (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Advances to suppliers [Line Items] | ||
Advances to suppliers | $ 15,813,997 | $ 13,953,920 |
Allowance for doubtful accounts | (1,426,769) | (627,151) |
Including: | ||
Advances to suppliers from continuing operations, net | 14,387,228 | 13,326,769 |
Less: Advances to suppliers, non-current | 0 | (2,109,005) |
Advances to suppliers, current | $ 14,387,228 | $ 11,217,764 |
Advances to suppliers (Details
Advances to suppliers (Details 1) - Advances to suppliers [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Advances to suppliers [Line Items] | ||
Balance at beginning of year | $ 627,151 | $ 611,033 |
Addition to doubtful accounts expense | 809,411 | 58,791 |
Deduction - utilization or return of advances | 0 | (83,963) |
Translation adjustments | (9,793) | 41,290 |
Balance at end of year | $ 1,426,769 | $ 627,151 |
Advances to suppliers (Detail_2
Advances to suppliers (Details 2) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Subtotal | $ 453,900 | $ 2,109,005 | |||
Allowance for doubtful accounts | (453,900) | 0 | |||
Advances to suppliers – non-current, net | 0 | 2,109,005 | |||
Zhejiang Longquanzhixin Commercial & Trade Co., Ltd [Member] | |||||
Subtotal | [1] | 0 | 1,647,905 | ||
Advances to suppliers – non-current, net | $ 8,638,260 | ¥ 60,000,000 | |||
Zhibo Jieli Special Battery Material Co., Ltd [Member] | |||||
Subtotal | [2] | $ 453,900 | $ 461,100 | ||
[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 $8,638,260 million (RMB 60,000,000) as of December 31, 2016. The purpose of the prepayment is to support ZLCT to purchase local bamboo forests (approximately 1,650 acres) and expand its operations. Meanwhile, the Company is guaranteed to receive steady supplies from ZLCT of minimum 13,000 tons of charcoal raw material annually with a fixed purchase price for the next three years. As of December 31, 2018, the advances were fully utilized. | ||||
[2] | representing the prepayments made to acquire machinery. |
Advances to suppliers (Detail_3
Advances to suppliers (Details Textual) | 12 Months Ended | |||
Dec. 31, 2017USD ($)at | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Advances On Inventory Purchases, Non Current | $ | $ 2,109,005 | $ 0 | ||
Number Of Guaranteed Supplies | t | 13,000 | |||
Area of Land | a | 1,650 | |||
Zhejiang Longquanzhixin Commercial & Trade Co., Ltd [Member] | ||||
Advances On Inventory Purchases, Non Current | $ 8,638,260 | ¥ 60,000,000 |
Manufacturing Rebate Receivab_2
Manufacturing Rebate Receivable (Details Textual) | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Manufacturing Rebate Receivables | $ 9,269,118 | $ 9,795,512 | $ 9,269,118 | ||||
Number of Qualified Electric Buses Sold | 100 | 109 | |||||
Increase Decrease In Manufacturing Rebate Receivable | $ 644,959 | 2,942,190 | $ 0 | ||||
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Sixteen | 6,112,520 | ¥ 40,400,000 | |||||
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Seventeen | $ 3,011,862 | 3,011,862 | ¥ 19,906,560 | ||||
Manufacturing Rebate Receivables Related to Fiscal Year Two Thousand Eighteen | 671,130 | 671,130 | ¥ 4,435,755 | ||||
Suzhou E-Motor [Member] | |||||||
Manufacturing Rebate Receivables | $ 29,400 | $ 6,000 | $ 29,400 | $ 60,200 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ 8,393,254 | $ 8,076,785 |
Less: Property, plant and equipment, net for discontinued operations | (5,152,634) | (4,701,906) |
Property Plant And Equipment Net Include Discontinued Operations | 3,240,620 | 3,374,879 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 5,473,555 | 5,089,190 |
Machinery and Production equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 2,012,061 | 2,167,877 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 203,491 | 201,731 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 55,407 | 55,467 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 527,485 | 550,577 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 121,255 | $ 11,943 |
Property, plant and equipment_4
Property, plant and equipment, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 628,144 | $ 576,953 | $ 497,970 |
Discontinued Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,049,274 | $ 613,296 | $ 534,252 |
Intangible assets, net (Details
Intangible assets, net (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Subtotal | $ 18,557,929 | $ 18,849,572 | |
Less: Accumulated amortization | (3,289,867) | (2,873,428) | |
Intangible assets, net | 15,268,062 | 15,976,144 | |
Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Subtotal | 25,619 | 23,292 | |
Electronic Vehicle Registered License [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Subtotal | 13,690,078 | 13,907,238 | |
Land Use Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Subtotal | [1] | 303,232 | 308,042 |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Subtotal | [2] | $ 4,539,000 | $ 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, 2018, and 2017, land use rights with net book value of $1,521,993 (among which $211,252 from continuing operations and $1,310,741 from discontinued operations) and $1,585,794 (among which $220,764 from continuing operations and $1,365,030 from discontinued operations), 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 totaled $602,959, $201,647 and $39,659 for the years ended December 31, 2018, 2017 and 2016, respectively, among which $443,318, $201,647 and $6,842 were for continuing operations. | ||
[2] | Patents on specialty electric vehicles resulted from the acquisition of Shangchi Automobile (formerly known as Suzhou E-Motors) (Note 4). |
Intangible assets, net (Detai_2
Intangible assets, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 1,521,993 | $ 1,585,794 | |
Amortization of Intangible Assets | 443,318 | 201,647 | $ 6,842 |
Continuing Operations [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 443,318 | 201,647 | 6,842 |
Discontinued Operations [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 602,959 | 201,647 | $ 39,659 |
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] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 50 years | ||
Land Use Rights [Member] | Continuing Operations [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 211,252 | 220,764 | |
Land Use Rights [Member] | Discontinued Operations [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 1,310,741 | $ 1,365,030 |
Short-term bank loans (Details)
Short-term bank loans (Details) ¥ in Millions | Dec. 31, 2018USD ($) | Aug. 01, 2018USD ($) | Aug. 01, 2018CNY (¥) | Dec. 31, 2017USD ($) |
Short-term Bank Loans and Notes Payable | $ 7,683,014 | $ 1,966,900 | ¥ 13 | $ 5,208,893 |
Loan payable One [Member] | Bank of China Lishui Branch [Member] | ||||
Short-term Bank Loans and Notes Payable | 5,208,893 | |||
Loan payable Two [Member] | SPD Bank [Member] | ||||
Short-term Bank Loans and Notes Payable | $ 2,874,700 | $ 0 |
Short-term bank loans (Details
Short-term bank loans (Details Textual) | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 26, 2019 | Dec. 31, 2018CNY (¥) | Nov. 23, 2018USD ($) | Nov. 23, 2018CNY (¥) | Aug. 16, 2018USD ($) | Aug. 16, 2018CNY (¥) | Aug. 01, 2018USD ($) | Aug. 01, 2018CNY (¥) | Jul. 25, 2018USD ($) | Jul. 25, 2018CNY (¥) | Sep. 26, 2017USD ($) | Sep. 26, 2017CNY (¥) | Mar. 30, 2017CNY (¥) | Aug. 16, 2016USD ($) | Aug. 16, 2016CNY (¥) | |
Short-term Debt [Line Items] | |||||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 7,683,014 | $ 5,208,893 | $ 1,966,900 | ¥ 13,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 6.10% | 6.10% | ||||||||||||||||
Debt Instrument, Maturity Date | Sep. 29, 2017 | ||||||||||||||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 608,048 | 479,358 | $ 261,625 | ||||||||||||||||
Bank Loan [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 378,857 | $ 479,358 | $ 388,007 | ||||||||||||||||
Tantech Bamboo [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 2,874,700 | ¥ 19,000,000 | $ 1,439,710 | ¥ 10,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.96% | 6.96% | 5.046% | 5.046% | |||||||||||||||
Debt Instrument, Collateral Amount | 4,400,000 | ¥ 29,250,000 | |||||||||||||||||
Building And Land Use Right [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Debt Instrument, Collateral Amount | 3,900,000 | 25,570,000 | |||||||||||||||||
Lishui Jiuanju Trading Co Ltd [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Debt Instrument, Collateral Amount | $ 1,513,000 | ¥ 10,000,000 | |||||||||||||||||
Loans Payable [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.66% | 5.66% | |||||||||||||||||
Short Term Debt One [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 2,213,280 | $ 1,513,000 | ¥ 10,000,000 | $ 2,151,800 | ¥ 14,000,000 | ¥ 14,400,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.01% | 6.01% | 6.10% | 6.10% | |||||||||||||||
Short Term Debt One [Member] | Bamboo [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 3,074,000 | ¥ 20,000,000 | |||||||||||||||||
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 | $ 1,328,414 | ¥ 8,780,000 | $ 3,057,093 | ¥ 19,890,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.06% | 6.06% | 5.83% | 5.83% | |||||||||||||||
Debt Instrument, Collateral Amount | $ 3,900,000 | ¥ 25,570,000 | |||||||||||||||||
Shanghai Pudong Development Bank [Member] | Tantech Bamboo [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Short-term Bank Loans and Notes Payable | $ 3,026,000 | ¥ 20,000,000 | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.525% | 6.525% | |||||||||||||||||
Shanghai Pudong Development Bank [Member] | Building And Land Use Right [Member] | Tantech Bamboo [Member] | |||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||
Debt Instrument, Collateral Amount | $ 4,400,000 | ¥ 29,170,000 |
Bank acceptance notes payable_2
Bank acceptance notes payable (Details) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 15, 2017USD ($) | Aug. 15, 2017CNY (¥) | |||
Bank acceptance notes payable | $ 2,121,377 | $ 6,975,526 | |||||
Letter of credit issued by Shanghai Pudong Development Bank Lishui Branch [Member] | |||||||
Bank acceptance notes payable | 0 | [1] | 3,074,000 | [1] | $ 3,074,000 | ¥ 20,000,000 | |
Bank acceptance notes payable issued by Bank of Zhang Jiagang Yule Branch [Member] | |||||||
Bank acceptance notes payable | [2] | $ 2,121,377 | $ 3,901,526 | ||||
[1] | Letter of credit of $3,074,000 (RMB20,000,000) 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 $4.5 million and three related parties, Forasen Group, Zhengyu Wang, and Yefang Zhang. | ||||||
[2] | Bank acceptance notes payable of $2,121,377 (RMB14,021,000) issued by Bank of Zhang Jiagang Yule Branch with due dates from February 7, 2019 to June 28, 2019. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. |
Bank acceptance notes payable_3
Bank acceptance notes payable (Details Textual) | Aug. 15, 2017USD ($) | Mar. 30, 2017 | Feb. 07, 2019USD ($) | Feb. 07, 2019CNY (¥) | Dec. 31, 2018USD ($) | Apr. 20, 2018USD ($) | Apr. 20, 2018CNY (¥) | Dec. 31, 2017USD ($) | Aug. 15, 2017CNY (¥) | Dec. 31, 2016 | ||
Restricted Cash and Cash Equivalents, Current | $ 2,121,377 | $ 3,901,526 | ||||||||||
Debt Instrument, Maturity Date | Sep. 29, 2017 | |||||||||||
Notes Payable to Bank, Current | 2,121,377 | $ 6,975,526 | ||||||||||
Shanghai Pudong Development Bank [Member] | ||||||||||||
Debt Instrument, Collateral Amount | 4,500,000 | |||||||||||
Bank of Zhang Jiagang Yule Branch [Member] | ||||||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||
Notes Payable to Bank, Current | $ 2,121,377 | ¥ 14,021,000 | $ 3,901,526 | ¥ 25,384,032 | ||||||||
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] | ||||||||||||
Debt Instrument, Maturity Date | Aug. 14, 2018 | |||||||||||
Notes Payable to Bank, Current | $ 3,074,000 | $ 0 | [1] | $ 3,074,000 | [1] | ¥ 20,000,000 | ||||||
[1] | Letter of credit of $3,074,000 (RMB20,000,000) 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 $4.5 million and three related parties, Forasen Group, Zhengyu Wang, and Yefang Zhang. |
Convertible Note (Details Textu
Convertible Note (Details Textual) - Convertible Notes Payable [Member] | Feb. 09, 2017USD ($) |
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 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. |
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, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Hong Kong Clean Energy Ltd. | $ 2,102,175 | $ 2,995,228 | |
Dr. Henglong Chen and its affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Hong Kong Clean Energy Ltd. | [1] | 1,227,773 | 240,462 |
Mr. Yulong Chen, a shareholder of the Company [Member] | |||
Related Party Transaction [Line Items] | |||
Hong Kong Clean Energy Ltd. | 0 | 1,537,000 | |
Forasen Group and its affiliates controlled by Mr Zhengyu Wang Chairman and CEO of the Company [Member] | |||
Related Party Transaction [Line Items] | |||
Hong Kong Clean Energy Ltd. | $ 874,402 | $ 1,217,766 | |
[1] | Dr. Henglong Chen is the original shareholder of Shangchi Automobile (formerly known as Suzhou E-Motors) (Note 4). The Company acquired his 70% equity interest in Shangchi Automobile and issued 2,500,000 restricted shares of Tantech’s common stock to him in connection with the acquisition of Shangchi Automobile. For the years ended December 31, 2018 and 2017, Dr. Henglong Chen and its affiliates advanced $1227,773 and $240,462 to the Company for its working capital purpose, respectively. |
Related Party Transactions (D_2
Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Jul. 12, 2017 | Dec. 28, 2016 | ||
Related Party Transaction [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 70.00% | 5.00% | ||
Accounts Receivable, Related Parties | [1] | $ 0 | $ 3,434,845 | ||
Due to Related Parties, Current | $ 2,102,175 | 2,995,228 | |||
Restricted Stock [Member] | |||||
Related Party Transaction [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,500,000 | ||||
Dr. Henglong Chen and its affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties, Current | [2] | $ 1,227,773 | 240,462 | ||
Forasen Group, controlled by Mr. Zhengyu Wang, Chairman and CEO of the Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties, Current | 874,402 | 1,217,766 | |||
Mr. Yulong Chen, a shareholder of the Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties, Current | $ 0 | $ 1,537,000 | |||
[1] | As of December 31, 2017, the Company had total accounts receivable balances of $3,434,845 due from the two affiliates of the original shareholders of Shangchi Automobile (formerly known as Suzhou E-Motors). Shangchi Automobile did not have related party’s sales to these two related parties after being acquired by the Company on July 12, 2017. The Company collected back approximately $3.3 million (RMB 21.8 million) from one of the two related parties during the year ended December 31, 2018. In addition, the balance of the other related party of approximately 77,000 (RMB506,725) was included in the balance of accounts receivable – non-related parties as of December 31, 2018 as this customer was no longer a related party for the year ended December 31, 2018. | ||||
[2] | Dr. Henglong Chen is the original shareholder of Shangchi Automobile (formerly known as Suzhou E-Motors) (Note 4). The Company acquired his 70% equity interest in Shangchi Automobile and issued 2,500,000 restricted shares of Tantech’s common stock to him in connection with the acquisition of Shangchi Automobile. For the years ended December 31, 2018 and 2017, Dr. Henglong Chen and its affiliates advanced $1227,773 and $240,462 to the Company for its working capital purpose, respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2019USD ($) | May 31, 2019CNY (¥) | Nov. 30, 2018USD ($) | Nov. 30, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Commitments and Contingencies [Line Items] | |||||||||
Operating Leases, Rent Expense | $ 139,507 | $ 73,184 | |||||||
Lessor Operating Lease Annual Rent | $ 150,000 | ¥ 1,000,000 | $ 14,000 | ¥ 93,600 | |||||
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. 19, 2018 | Sep. 27, 2017 | Dec. 28, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 |
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 | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 5.00% | 70.00% | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,078,045 | ||||||||
Description Warrants Exercise Term | The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Company’s common shares. | ||||||||
Class of Warrant or Right, Outstanding | 1,078,045 | ||||||||
Weighted Average Remaining Life of Warrants | 4 years | ||||||||
Stock Issued During Period, Shares, Issued for Services | 150,000 | ||||||||
Stock Issued During Period, Value, Issued for Services | $ 243,000 | $ 243,000 | $ 0 | $ 0 | |||||
September 2017 Offering [Member] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,078,045 | ||||||||
Class of Warrant or Right, Outstanding | 945,654 | ||||||||
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 | ||||||||
Class of Warrant or Right, Outstanding | 132,391 | ||||||||
E Motors [Member] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 6,500,000 | ||||||||
Business Acquisition, Share Price | $ 2.6 | ||||||||
Shangchi Automobile [Member] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,500,000 | ||||||||
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 | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning Balance | $ 8,799,460 | $ 0 | |
Noncontrolling interest through acquisition of Shangchi Automobile (Note 4) | 0 | 9,583,646 | |
Proportionate shares of net income (loss) | (896,769) | (754,084) | $ 308,442 |
Foreign currency translation adjustment | 15,405 | (30,102) | |
Total | $ 7,918,096 | $ 8,799,460 | $ 0 |
Noncontrolling Interests (Det_2
Noncontrolling Interests (Details Textual) - shares | 1 Months Ended | |||
Dec. 28, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 19, 2015 | |
Shangchi Automobile [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | 30.00% | ||
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% |
Taxes (Details)
Taxes (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Corporation income tax payable | $ 227,386 | $ 416,579 |
Other tax payable | 117,177 | 125,813 |
Total | $ 344,563 | $ 542,392 |
Taxes (Details 1)
Taxes (Details 1) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statutory PRC income tax rate | 25.00% | 25.00% | 25.00% | |
Favorable tax rate impact | [1] | (8.00%) | (10.00%) | (10.00%) |
Permanent difference and others | (1.00%) | 2.00% | 1.00% | |
Changes of deferred tax assets valuation allowances | 35.00% | 17.00% | 0.00% | |
Total | 51.00% | 34.00% | 16.00% | |
[1] | Three of the Company’s subsidiaries, Tantech Bamboo, Shangchi Automobile and Tantech Energy are subject to tax rate of 15%. |
Taxes (Details 2)
Taxes (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | $ 1,031,158 | $ 1,334,254 | $ 1,465,744 |
Deferred | 0 | 193,749 | (98,474) |
Total | $ 1,031,158 | $ 1,528,003 | $ 1,367,270 |
Taxes (Details 3)
Taxes (Details 3) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for doubtful accounts and other reserves | $ 2,389,719 | $ 1,682,706 |
Valuation allowance | (2,389,719) | (1,682,706) |
Total | 0 | 0 |
Deferred tax liability: | ||
Increase in fair value of intangible assets acquired through acquisition | 2,053,512 | 2,086,086 |
Total | $ 2,053,512 | $ 2,086,086 |
Taxes (Details Textual)
Taxes (Details Textual) - USD ($) | Dec. 07, 2017 | Feb. 09, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | ||
Deferred Tax Assets, Valuation Allowance | $ 2,389,719 | $ 1,682,706 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 707,013 | 1,212,303 | $ 73,516 | ||
Income Tax Holiday, decreased foreign taxes | $ 158,424 | $ 899,503 | $ 906,131 | ||
Tax Holidays Benefit On Net Income Per Share | $ 0.03 | $ 0.01 | $ 0.03 | ||
Shangchi Automobile [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% |
Major customers and suppliers (
Major customers and suppliers (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales Revenue, Net [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Two Major Customers [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk, Percentage | 49.00% | 47.00% | 27.00% |
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 | 73.00% | ||
One Customers [Member] | Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 451311.00% | 43.00% | |
Major Suppliers [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Major Suppliers [Member] | Cost of Goods, Total [Member] | |||
Concentration Risk, Percentage | 61.00% |
Segment information (Details)
Segment information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 29,561,399 | $ 42,297,612 | $ 39,902,342 |
Cost of revenue | 21,532,319 | 31,741,753 | 26,879,316 |
Gross profit | 8,029,080 | 10,555,859 | 13,023,026 |
Interest Expenses | 608,048 | 479,358 | 261,625 |
Capital expenditure | 559,038 | 1,302,721 | 8,282 |
Segment assets | 134,194,014 | 138,487,726 | |
Segment profit | 1,079,998 | 3,013,131 | 4,607,693 |
Consolidation, Eliminations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 21,532,319 | 31,741,753 | 26,879,316 |
Gross profit | 8,029,080 | 10,555,859 | 13,023,026 |
Interest Expenses | 626,343 | 551,044 | 470,656 |
Depreciation & amortization | 947,026 | 778,598 | 504,812 |
Capital expenditure | 82,263 | 10,819 | |
Segment assets | 134,194,014 | 138,487,726 | 94,302,667 |
Segment profit | 996,631 | 2,947,581 | 6,959,560 |
Consumer product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 14,347,896 | 23,693,289 | 26,853,812 |
Gross profit | 8,040,931 | 8,195,860 | 12,494,837 |
Interest Expenses | 292,996 | 290,383 | 341,464 |
Depreciation & amortization | 420,301 | 454,178 | 453,671 |
Capital expenditure | 13,512,820 | 74,202 | 10,819 |
Segment assets | 116,847,478 | 83,024,439 | 92,878,334 |
Segment profit | 4,135,969 | 5,258,037 | 7,109,315 |
Trading [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 3,290,089 | 1,412,062 | 25,504 |
Gross profit | 486,753 | 417,413 | 528,189 |
Interest Expenses | 126,030 | 124,587 | 129,192 |
Depreciation & amortization | 0 | 25,345 | 51,141 |
Capital expenditure | |||
Segment assets | 5,756,612 | 5,988,364 | 1,424,333 |
Segment profit | (134,511) | 203,157 | |
EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 3,894,334 | 6,636,402 | |
Gross profit | (498,604) | 1,942,586 | |
Interest Expenses | 207,317 | 136,162 | |
Depreciation & amortization | 526,725 | 299,075 | |
Capital expenditure | 8,061 | ||
Segment assets | 11,589,924 | 49,474,923 | |
Segment profit | (3,004,827) | (2,513,613) | (149,755) |
External customers [Member] | Consolidation, Eliminations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 29,561,399 | 42,297,612 | 39,902,342 |
External customers [Member] | Consumer product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 23,136,194 | 31,889,149 | 39,348,649 |
External customers [Member] | Trading [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,776,842 | 1,829,475 | 553,693 |
External customers [Member] | EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,395,730 | 8,578,988 | |
Intersegment [Member] | Consolidation, Eliminations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | (7,790,931) | (2,760,754) | 588,647 |
Intersegment [Member] | Consumer product [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | (7,790,931) | (2,736,204) | 576,302 |
Intersegment [Member] | Trading [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | (24,550) | $ 12,345 | |
Intersegment [Member] | EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 0 |
Segment information (Details 1)
Segment information (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 29,561,399 | $ 42,297,612 | $ 39,902,342 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 29,561,399 | 42,297,612 | 39,346,217 |
Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 556,125 |
Long term investment (Details t
Long term investment (Details textual) ¥ in Millions, $ in Millions | Jan. 10, 2018USD ($) | Jan. 10, 2018CNY (¥) | Dec. 31, 2018 | Jul. 12, 2017 | Dec. 28, 2016 |
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 70.00% | 5.00% | ||
Libo Haokun [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 18.00% | 18.00% | |||
Business Combination, Consideration Transferred | $ 18.2 | ¥ 120 |
Subsequent events (Details Text
Subsequent events (Details Textual) | Mar. 18, 2019USD ($) | Mar. 18, 2019CNY (¥) | Feb. 26, 2019USD ($) | Feb. 26, 2019CNY (¥) | Aug. 01, 2018 |
Subsequent Event [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | 6.10% | ||
Bank of China [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,800,000 | ¥ 18,780,000 | $ 1,500,000 | ¥ 10,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | 6.05% | |||
Debt Instrument, Collateral Amount | $ 3,900,000 | ¥ 25,960,000 | |||
Bank of China [Member] | Debt Instrument, Redemption, Period One [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Face Amount | 150,000 | 1,000,000 | |||
Bank of China [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Face Amount | $ 2,700,000 | ¥ 17,780,000 |