Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2017 | Apr. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TDH Holdings, Inc. | |
Entity Central Index Key | 1,684,425 | |
Amendment Flag | false | |
Trading Symbol | PETZ | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,017 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,423,750 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,346,109 | $ 1,145,103 |
Restricted cash, current | 797,668 | 707,120 |
Accounts receivable | 1,932,924 | 865,491 |
Advances to suppliers | 633,554 | 711,751 |
Inventories | 9,135,332 | 5,973,124 |
Due from related parties | 361,961 | 35,842 |
Prepayments and other current assets | 371,796 | 383,932 |
Total current assets | 15,579,344 | 9,822,363 |
NON-CURRENT ASSETS: | ||
Restricted cash, non-current | 500,000 | |
Property, plant and equipment, net | 3,520,373 | 3,306,735 |
Land use rights, net | 211,023 | 110,821 |
Total non-current assets | 4,231,396 | 3,417,556 |
Total assets | 19,810,740 | 13,239,919 |
CURRENT LIABILITIES: | ||
Accounts payable | 4,734,110 | 3,262,375 |
Account payable - related parties | 152,298 | 111,139 |
Notes payable | 1,377,106 | 1,414,232 |
Advances from customers | 231,230 | 802,339 |
Advances from customers - related party | 7,520 | |
Short term loans | 1,402,514 | 1,728,185 |
Taxes payable | 13,562 | 124,829 |
Due to related parties | 345,873 | 1,120,702 |
Other current liabilities | 392,435 | 409,571 |
Total current liabilities | 8,656,648 | 8,973,372 |
NON-CURRENT LIABILITIES: | ||
Deferred tax liabilities | 5,810 | 13,795 |
Total liabilities | 8,662,458 | 8,987,167 |
STOCKHOLDERS' EQUITY | ||
Common stock ($0.001 par value; 200,000,000 shares authorized; 9,423,750 and 7,900,000 shares issued and outstanding at December 31, 2017 and 2016) | 9,424 | 7,900 |
Additional paid-in capital | 9,947,084 | 4,406,561 |
Stock subscription receivable | (100,000) | (927,730) |
Statutory reserves | 160,014 | 140,570 |
Retained earnings | 823,474 | 727,807 |
Accumulated other comprehensive income (loss) | 308,286 | (102,356) |
Total stockholders' equity | 11,148,282 | 4,252,752 |
Total liabilities and stockholders' equity | $ 19,810,740 | $ 13,239,919 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 9,423,750 | 7,900,000 |
Common stock, shares outstanding | 9,423,750 | 7,900,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net revenues | $ 28,473,016 | $ 24,443,736 | $ 16,312,274 |
Net revenues - related party | 506,495 | ||
Total revenues | 28,979,511 | 24,443,736 | 16,312,274 |
Cost of revenues | 20,283,321 | 17,368,249 | 12,289,773 |
Cost of revenues - related party | 399,177 | ||
Total cost of revenues | 20,682,498 | 17,368,249 | 12,289,773 |
Gross profit | 8,297,013 | 7,075,487 | 4,022,501 |
Operating expenses: | |||
Selling expense | 4,882,367 | 3,439,843 | 1,820,700 |
General and administrative expense | 2,095,676 | 1,407,787 | 931,107 |
Research and development expense | 1,051,665 | 1,076,568 | 593,962 |
Total operating expenses | 8,029,708 | 5,924,198 | 3,345,769 |
Income from operations | 267,305 | 1,151,289 | 676,732 |
Interest expense | (82,946) | (102,274) | (117,366) |
Government subsidies | 414 | 21,912 | 22,116 |
Other income | 19,305 | 51,535 | 156,908 |
Other expense | (144,069) | (23,490) | (2,056) |
Total other income (expenses) | (207,296) | (52,317) | 59,602 |
Income before income taxes provision (benefit) | 60,009 | 1,098,972 | 736,334 |
Income tax provision (benefit) | (55,102) | 89,801 | 269,581 |
Net income | 115,111 | 1,009,171 | 466,753 |
Comprehensive income | |||
Net income | 115,111 | 1,009,171 | 466,753 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | 410,642 | (221,418) | (143,434) |
Total comprehensive income | $ 525,753 | $ 787,753 | $ 323,319 |
Earnings per common share | |||
Basic | $ 0.01 | $ 0.13 | $ 0.06 |
Diluted | $ 0.01 | $ 0.13 | $ 0.06 |
Weighted average common shares outstanding | |||
Basic | 8,303,853 | 7,900,000 | 7,900,000 |
Diluted | 8,303,853 | 7,900,000 | 7,900,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Shares | Additional Paid-in Capital | Stock Subscription Receivable | Statutory Reserves | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2014 | $ 2,354,073 | $ 7,900 | $ 2,691,224 | $ (607,547) | $ 262,496 | ||
Balance, shares at Dec. 31, 2014 | 7,900,000 | ||||||
Net income | 466,753 | 466,753 | |||||
Issuance of common shares | 10 | 10 | |||||
Statutory Reserves | 39,923 | (39,923) | |||||
Foreign currency translation adjustment | (143,434) | (143,434) | |||||
Balance at Dec. 31, 2015 | 2,677,402 | $ 7,900 | 2,691,234 | 39,923 | (180,717) | 119,062 | |
Balance, shares at Dec. 31, 2015 | 7,900,000 | ||||||
Net income | 1,009,171 | 1,009,171 | |||||
Issuance of common shares | 4,687,153 | 4,687,153 | |||||
Collection of stock subscription receivable | |||||||
Statutory Reserves | 100,647 | (100,647) | |||||
Foreign currency translation adjustment | (221,418) | (221,418) | |||||
Stock subscription receivable | (927,730) | (927,730) | |||||
Distribution in connection with acquisition of a subsidiary | (2,880,000) | (2,880,000) | |||||
Liabilities assumed in connection with acquisition of a subsidiary | (91,826) | (91,826) | |||||
Balance at Dec. 31, 2016 | 4,252,752 | $ 7,900 | 4,406,561 | (927,730) | 140,570 | 727,807 | (102,356) |
Balance, shares at Dec. 31, 2016 | 7,900,000 | ||||||
Net income | 115,111 | 115,111 | |||||
Issuance of common shares | 5,542,047 | $ 1,524 | 5,540,523 | ||||
Issuance of common shares, shares | 1,523,750 | ||||||
Collection of stock subscription receivable | 827,730 | 827,730 | |||||
Statutory Reserves | 19,444 | (19,444) | |||||
Foreign currency translation adjustment | 410,642 | 410,642 | |||||
Balance at Dec. 31, 2017 | $ 11,148,282 | $ 9,424 | $ 9,947,084 | $ (100,000) | $ 160,014 | $ 823,474 | $ 308,286 |
Balance, shares at Dec. 31, 2017 | 9,423,750 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 115,111 | $ 1,009,171 | $ 466,753 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization expense | 364,170 | 256,104 | 266,534 |
Bad debt provision | 18,201 | ||
Deferred income tax liability | (8,581) | (127) | 15,513 |
Loss on disposal of property, plant and equipment | 1,783 | 7,410 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (971,831) | (609,099) | 336,193 |
Accounts receivable - related party | (10,817) | ||
Inventories | (2,658,359) | (3,316,762) | (2,136,489) |
Due to related parties | 5,920 | ||
Advances to suppliers | 121,360 | (610,215) | 492,800 |
Prepayments and other current assets | 18,197 | (223,632) | 167,519 |
Accounts payable | 1,174,363 | 1,321,954 | (482,510) |
Accounts payable - related parties | 32,440 | ||
Notes payable | (127,275) | 284,510 | 32,109 |
Taxes payable | (115,219) | (85,139) | 139,153 |
Advances from customers | (601,855) | 513,456 | (92,736) |
Advances from customers - related party | 7,241 | ||
Other current liabilities | (39,785) | (29,339) | 87,013 |
Net cash used in operating activities | (2,674,936) | (1,489,118) | (700,738) |
Cash flows from investing activities | |||
Payments to acquire property, plant and equipment | (227,900) | (9,002) | (231,939) |
Proceeds from disposal of property, plant and equipment | 2,012 | ||
Payments to acquire land use rights | (103,596) | ||
Loans to related parties | (533,242) | (2,543,946) | (5,941,665) |
Repayments from related parties | 15,443 | 3,400,799 | 5,790,092 |
Change in restricted cash | (541,426) | 96,337 | 73,851 |
Net cash provided by (used in) investing activities | (1,388,709) | 944,188 | (309,661) |
Cash flows from financing activities | |||
Proceeds from issuance of common shares | 5,542,047 | 3,759,423 | 10 |
Collection of stock subscription receivable | 827,730 | ||
Capital distribution in connection with acquisition of a subsidiary | (2,880,000) | ||
Proceeds from related parties | 1,073,961 | 3,503,190 | 971,575 |
Repayments to related parties | (1,767,391) | (3,310,849) | (56) |
Proceeds from short term loans | 2,077,219 | 1,806,411 | 3,243,000 |
Repayments of short term loans | (2,494,793) | (1,806,411) | (2,713,203) |
Net cash provided by financing activities | 5,258,773 | 1,071,764 | 1,501,326 |
Effect of exchange rate changes on cash and cash equivalents | 5,878 | (33,411) | (29,581) |
Net change in cash and cash equivalents | 1,201,006 | 493,423 | 461,346 |
Cash and cash equivalents, beginning of the year | 1,145,103 | 651,680 | 190,334 |
Cash and cash equivalents, end of the year | 2,346,109 | 1,145,103 | 651,680 |
Supplemental cash flow information | |||
Interest paid | 82,234 | 102,274 | 117,366 |
Income taxes paid | 59,927 | 102,036 | 103,436 |
Non-cash investing and financial activities | |||
Operating expenses paid by related parties | 85,837 | 68,679 | 84,842 |
Property, plant and equipment transferred from construction in progress | 34,721 | 44,819 | |
Liabilities assumed in connection with purchase of property, plant and equipment | 133,229 | 295,280 | 46,786 |
Liabilities assumed in connection with acquisition of a subsidiary | 91,826 | ||
Accounts payable settled with loans to related parties | 490,388 | ||
Receivables from related parties settled with payables to related parties | 169,906 | 92,402 | |
Debt paid by the related party in lieu of repayment to the Company | $ 125,225 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization [Abstract] | |
ORGANIZATION | Note 1 – ORGANIZATION TDH Holdings, Inc. (“TDH Holdings”) was incorporated on September 30, 2015 under the laws of the British Virgin Islands. On November 4, 2015, TDH Holdings incorporated a wholly owned subsidiary, TDH HK Limited (“TDH HK”) in Hong Kong for the purpose of being a holding company for the equity interest in Qingdao Tiandihui Foodstuffs Co., Ltd. (“Tiandihui”). On September 9, 2016, TDH Holdings incorporated TDH Petfood LLC, a Nevada limited liability company, which TDH Holdings holds 99% equity interest. TDH Petfood LLC does not own any material assets or liabilities. Other than the equity interest in TDH HK and TDH Petfood LLC, TDH Holdings does not conduct any operations or own any material assets or liabilities. TDH HK does not conduct any operations or own any material assets or liabilities except for cash and the 100% of the equity interest of Tiandihui which it acquired on February 21, 2016. Tiandihui was founded in Qingdao City, Shandong Province, People’s Republic of China (“PRC”) on April 22, 2002 as a limited liability company. As of December 31, 2017, Tiandihui had two wholly owned subsidiaries: Beijing Chongai Jiujiu Cultural Communication Co., Ltd. (“Chongai jiujiu”), which was incorporated on March 3, 2011, in Beijing City, the Capital of PRC, and Qingdao Kangkang Development Co., Ltd. (“Kangkang Development”), which was incorporated on August 9, 2016, in Qingdao City, Shandong Province, PRC. Tiandihui and its wholly owned subsidiaries are engaged in the business of development, manufacture, sales of high quality pet food under our own formula patent. Our products are produced at Tiandihui facility and sold to the pet owners in PRC and to the retailers and wholesalers throughout worldwide. On February 21, 2016, TDH HK entered into an equity transfer agreement with Rongfeng Cui and his wife Yanjuan Wang, the shareholders of Tiandihui at the time, to acquire 100% of the equity interests in Tiandihui (“reorganization”). On July 19, 2016, Tiandihui acquired 100% shares of Chongai Jiujiu from Rongfeng Cui and Yanjuan Wang with a consideration of $87,849 (RMB610,000). The acquisition of Chongai Jiujiu is a transaction between entities under common control. On November 14, 2017, a 55% owned subsidiary of the Company, Yichong (Qingdao) Technology Co., Ltd. (“Yichong”) was incorporated in Qingdao City, PRC. Yichong had no operation during the year ended December 31, 2017. On November 29, 2017, a 55% owned subsidiary of the Company, Qingdao Lingchong Information Technology Co., Ltd. (“Lingchong”) was incorporated in Qingdao City, PRC. Lingchong had no operation during the year ended December 31, 2017. As a result, TDH HK, TDH Petfood LLC, Tiandihui, Chongai Jiujiu, Kangkang Development, Yichong and Lingchong are referred to as subsidiaries. TDH Holdings and its consolidated subsidiaries are collectively referred to herein as the “Company”, “we” and “us”, unless specific reference is made to an entity. Immediately before and after the reorganization, the shareholders of Tiandihui controlled Tiandihui and TDH Holdings. Therefore, for accounting purposes, the reorganization is accounted for as a transaction of entities under common control. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying audited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC (“PRC GAAP”), the accounting standards used in the places of their domicile. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company to present them in conformity with U.S. GAAP. The accompanying consolidated financial statements as of December 31, 2017 and 2016 consolidate the financial statements of TDH Holdings, its 100% owned subsidiary TDH HK, 99% owned subsidiary TDH Petfood LLC, 100% owned subsidiary Tiandihui, and Tiandihui’s 100% owned subsidiaries Chongai Jiujiu and Kangkang Development, 55% owned subsidiaries Yichong and Lingchong. No noncontrolling interest was recognized since TDH Petfood LLC, Lingchong and Yichong did not have any operations during the years ended December 31, 2017 and 2016, and all significant intercompany accounts and transactions have been eliminated. Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollar (“$”), which is the reporting currency of the Company. The functional currency of TDH Holdings, TDH HK and TDH Petfood LLC is United States dollar. The functional currency of Tiandihui, Chongai Jiujiu, Kangkang Development, Yichong and Lingchong is Renminbi (“RMB”). For the subsidiaries whose functional currencies are RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income or loss. Transaction gains and losses are reflected in the consolidated statements of income. The consolidated balance sheet amounts, with the exception of equity at December 31, 2017 and 2016 were translated at RMB 6.5064 and RMB 6.9437 to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to consolidated statements of income and cash flows for the years ended December 31, 2017 and 2016 were RMB 6.7570 and RMB 6.6430 to $1.00, respectively. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings or financial position. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, valuation of inventories and income taxes including the valuation allowance for deferred tax assets. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash in time deposits and highly liquid investments purchased with original maturities of three months or less. The Company has no cash equivalents balances as of December 31, 2017 and 2016. Restricted Cash Restricted cash, current mainly represents bank deposits used to pledge the bank acceptance notes and bank letters of credit. The Company entered into credit agreements with commercial banks in China (“endorsing banks”) which agree to provide credit within stipulated limits. Within the stipulated credit limits, the Company can issue bank acceptance notes and letters of credit to its suppliers as payments for the purchases. In order to issue bank acceptance notes and letters of credit, the Company is generally required to make initial deposits to the endorsing banks in amounts of certain percentage of the face amount of the bank acceptance notes or letters of credit to be issued by the Company. The cash in such accounts is restricted for use over the terms of the bank acceptance notes and letters of credits, which are normally three to six months. Restricted cash, non-current represents deposits in an escrow account pursuant to an escrow indemnification agreement in connection with the Company’s initial public offering to satisfy the potential indemnification obligations arising during an escrow period of two years following September 25, 2017. Accounts Receivable Accounts receivable consists principally of amounts due from trade customers. Credit is extended based on an evaluation of the customer’s financial condition and collateral is not generally required. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the 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, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. As of December 31, 2017 and 2016, the Company had accounts receivable of $1,932,924 and $865,491, respectively. The Company had no allowance for doubtful accounts as of December 31, 2017 and 2016, and had no bad debt expenses for trading accounts receivables occurred for the years then ended. Inventories Inventories, consisting of raw materials, low-valued consumables, work in progress, goods sold in transit and finished goods, are stated at the lower of cost or market value utilizing the weighted average method. The valuation of inventory requires us to estimate excess and slow-moving inventory. We evaluate the recoverability of our inventory based on assumption about expected demand and market conditions. Property, Plant and Equipment Property, plant and equipment, are stated at cost less depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. Depreciation of property, plant and equipment is calculated based on cost, less their estimated residual value, if any, using the straight-line method over their estimated useful lives. Estimated useful lives are as follows: Machinery equipment 5 - 20 years Computer software 10 years Electronic equipment 5 - 10 years Office equipment 5 - 10 years Motor vehicles 5 - 10 years Buildings 20 - 50 years Construction in progress mainly represents expenditures with respect of the Company’s factory under construction. All direct costs relating to the acquisition or construction of the Company’s factory are capitalized as construction in progress. Construction in progress is not depreciated until the asset is placed in service. Land Use Rights According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods the rights are granted. Impairment of Long-Lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For the years ended December 31, 2017 and 2016, the Company did not record any impairment charges on long-lived assets. Fair Value of Financial Instruments ASC 825 requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which fair value option was not elected. For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, current, accounts receivable, inventories, advances to suppliers, prepayments and other current assets, accounts payable, notes payables to vendors, advances from customers, taxes payable, other current liabilities and short-term loans, the carrying amounts approximate their fair values due to the short maturities. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2017 and 2016. Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the lease period. Earnings per Share Basic earnings per common share is computed by dividing net earnings attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common shareholders by the sum of the weighted average number of common shares outstanding and dilutive potential common shares during the period. Potentially dilutive common shares consist of common shares warrants using the treasury stock method. Common equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive. Revenue Recognition Pursuant to the guidance of ASC Topic 605 and ASC Topic 360, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured. Revenue consists of the invoiced value for the sales net of value-added tax (“VAT”), business tax, applicable local government levies and returns. The Company does not provide rebate, pricing protection or any other concessions to its customers. For the years ended December 31, 2017, 2016 and 2015, the Company had immaterial sales returns and no discounts. Government Grants Government grants include cash subsidies as well as other subsidies received from the PRC government by the subsidiaries of the Company. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. The government grant is recognized in the consolidated statements of income and comprehensive income when cash is received and the relevant performance criteria specified in the grant are met. Research and Development Research and development costs are expensed as incurred. The costs primarily consist of raw materials used and salaries paid for the development and improvement of the Company’s products. Selling Expenses Selling expenses consist primarily of advertising, salaries and shipping and handling costs incurred during the selling activities. Advertising and transportation expenses are charged to expense as incurred. Shipping and handling expenses amounted to $1,162,827, $836,561 and $516,409 for the years ended December 31, 2017, 2016 and 2015, respectively. Advertising costs amounted to $215,399, $84,667 and $56,544 for the years ended December 31, 2017, 2016 and 2015, respectively. Income Taxes The Company accounts for income taxes under the provision of FASB ASC 740-10, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Comprehensive Income/Loss ASC 220 “Comprehensive Income” established standards for reporting and display of comprehensive income/loss, its components and accumulated balances. Components of comprehensive income/loss include net income/loss and foreign currency translation adjustment. As of December 31, 2017 and 2016, the only component of accumulated other comprehensive income/loss was foreign currency translation adjustment. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash, restricted cash, and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company routinely assesses the financial strength of the customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. Related Parties Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Segment Reporting 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. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by marketing channel. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)” The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company elected adopting the standard using the modified retrospective method. The Company has identified its revenue streams and assessed each for the impacts. The Company expects the adoption of Topic 606 will have impact on one revenue stream. Specifically, under the standard the Company expects to recognize revenue generated from products sold to certain E-commerce platforms at the time products are delivered rather than when the price is determined and mutually agreed upon between the Company and the E-commerce platforms, usually at a later time after products delivery. The Company planned to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. The Company does not expect this adjustment to be material. In November 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” The standard will be effective for the Company beginning January 1, 2019, with early adoption permitted. The Company plans to adopt the standard effective January 1, 2019. The Company anticipates this standard will have a material impact on the Company’s consolidated balance sheets. However, the Company does not expect adoption will have a material impact on the Company’s consolidated statements of income. While the Company is continuing to assess potential impacts of the standard, the Company currently expects the most significant impact will be the recognition of ROU assets and lease liabilities for operating leases. In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323)”. 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” |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2017 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | Note 3 – RESTRICTED CASH Restricted cash, current Restricted cash, current represents the bank deposits used to pledge the bank acceptance notes and letters of credit issued by the Company. The cash is restricted for use over the terms of the bank acceptance notes and was used directly to settle the liabilities when the bank acceptance notes or letters of credit became due. As of December 31, 2017 and 2016, the Company had notes payable of $1,377,106 and $1,414,232, respectively. The notes payable issued during the year ended December 31, 2017 were secured by the land use right and real property of Qingdao Saike Environmental Technology Co., Ltd., a related party, and real property of Rongfeng Cui, Principal shareholder, Chairman of the Board and CEO of the Company, and Yanjuan Wang, CEO’s wife, and guaranteed by Rongfeng Cui. The notes payable issued during the year ended December 31, 2016 were secured by the land use right and real property of Qingdao Saike Environmental Technology Co., Ltd. As of December 31, 2017 and 2016, the Company had non-cancellable letters of credit outstanding in the amount of $97,200, and $0, respectively. Restricted cash, non-current In connection with its initial public offering, the Company agreed to deposit $500,000 in a non-interest bearing escrow account to satisfy the potential indemnification obligations for two years following September 25, 2017, which is presented as restricted cash, non-current. Also see Note 10. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
INVENTORIES | Note 4 – INVENTORIES As of December 31, 2017 and 2016, inventories consisted of the following: December 31, December 31, Raw materials $ 2,392,731 $ 1,822,614 Work in progress 4,106,837 1,911,656 Finished goods 2,635,764 2,238,854 Total $ 9,135,332 $ 5,973,124 The work in progress and finished goods held by third parties were $1,356,461 and $208,731 as of December 31, 2017, respectively. The work in progress and finished goods held by third parties were $308,742 and $103,024 as of December 31, 2016, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | Note 5 – PROPERTY, PLANT AND EQUIPMENT, NET As of December 31, 2017 and 2016, property, plant and equipment consisted of the following: December 31, December 31, 2017 2016 Machinery equipment $ 3,357,637 $ 3,095,665 Electronic equipment 70,421 65,412 Office equipment 229,978 201,533 Vehicles 79,385 102,024 Buildings 964,504 903,761 Leasehold Improvement 262,648 - Total property, plant and equipment 4,964,573 4,368,395 Less: accumulated depreciation (1,444,200 ) (1,061,660 ) Property, plant and equipment, net $ 3,520,373 $ 3,306,735 Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $349,887, $252,957 and $263,177, respectively. As of December 31, 2017 and 2016, a building with net book values of $555,070, and $533,935, respectively, was pledged as collateral under certain loan arrangements (see Note 7). |
Land Use Rights
Land Use Rights | 12 Months Ended |
Dec. 31, 2017 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS | Note 6 – LAND USE RIGHTS December 31, December 31, Land use rights $ 232,550 $ 117,094 Accumulated depreciation (21,527 ) (6,273 ) Land use rights, net $ 211,023 $ 110,821 During the years ended December 31, 2017, 2016 and 2015, amortization expense amounted to $14,283, $3,147 and $3,357, respectively. The Company expects to record amortization expense of $5,000, $5,000, $5,000, $5,000, $5,000 and $157,000 for 2018, 2019, 2020, 2021, 2022 and thereafter, respectively. As of December 31, 2017 and 2016, land use right with net book values of $115,056 and $110,821, respectively, was pledged as collateral under certain loan arrangements (see Note 7). |
Short Term Loans
Short Term Loans | 12 Months Ended |
Dec. 31, 2017 | |
Short Term Loans [Abstract] | |
SHORT TERM LOANS | Note 7 – SHORT TERM LOANS Short term loans and related guarantees are comprised of the following: Guarantors December 31, December 31, Industrial & Commercial Bank of China - Qingdao Shinan Second Branch Rongfeng Cui, Principal shareholder, $ 430,345 705,676 Bank of China, Qingdao HK Road Branch Rongfeng Cui, Principal shareholder, - 158,417 China Postal Savings Bank - Qingdao Branch Rongfeng Cui, Principal shareholder, - 864,092 China Postal Savings Bank - Weihai Rd. Sub Branch Rongfeng Cui, Principal shareholder, 922,169 - TAIJ Capital Limited None 50,000 - $ 1,402,514, $ 1,728,185 Short-term bank loans On January 29, 2015, the Company borrowed a one-year loan of $308,086 (RMB2,000,000) with interest rate of 7.56% from Industrial Bank – Qingdao Branch, which was repaid in full on January 18, 2016. This loan was secured by the real property of Qingdao Saike Environmental Technology Co., Ltd., a related party, and guaranteed by Rongfeng Cui and Yanjuan Wang. During the year ended December 31, 2015, the Company borrowed short term loans for an aggregate amount of $1,401,790 (RMB9,100,000) with annual interest rates ranging from 5.75% to 7.5% from Industrial & Commercial Bank of China Qingdao Qingdao Shinan 2 nd On August 15, 2016, the Company borrowed a one-year revolving loan of $705,676 (RMB4,900,000) with interest rate of 5.22% from Industrial and Commercial Bank - Qingdao Shinan 2 nd The Company repaid the loan on June 19, 2017. On June 20, 2017, the Company borrowed another one-year revolving loan of $719,508 (RMB4,900,000) from the same bank with interest rate of 5.22% and repaid this loan in full on July 6, 2017. On July 14, 2017, the Company borrowed a one-year loan of $412,998 (RMB2,800,000) from the same bank with interest rate of 5.22%. The loans from Industrial and Commercial Bank – Qingdao Shinan 2 nd On May 12, 2015, the Company borrowed a one-year loan of $169,447 (RMB1,100,000) with interest rate of 5.655% from Bank of China, Qingdao Hongkong Road Sub Branch. The Company repaid the loan in full on May 11, 2016. On May 16, 2016, the Company continued to borrow a one-year loan of $158,417 (RMB1,100,000) with annual interest rate of 5.655% from the same bank. The Company repaid the loan in full on April 27, 2017. The loans from Qingdao Hongkong Road Sub Branch were secured by the real property of Rongfeng Cui and Yanjuan Wang and guaranteed by Rongfeng Cui and Yanjuan Wang. On March 29, 2016, the Company borrowed a one-year loan of $288,031 (RMB2,000,000) with annual interest rate of 6.09% from Postal Savings Bank – Qingdao Branch. The Company repaid the loan in full on March 24, 2017. This loan was guaranteed by Rongfeng Cui and Yanjuan Wang. On January 16, 2015, the Company borrowed a one-year loan of $616,171 (RMB4,000,000) with annual interest of 7% from China Postal Savings Bank - Qingdao Branch. The Company repaid the loan on November 23, 2015. The Company continued to borrow another one-year loan of $616,171 (RMB4,000,000) with annual interest of 6.09% on November 30, 2015. The Company repaid this loan in full on November 23, 2016. On November 28, 2016, the Company borrowed another one-year loan of $576,062 (RMB4,000,000) with an interest rate 5.655% from Postal Savings Bank – Qingdao Branch. The Company repaid the loan in full on November 21, 2017. These loans were secured by land use right and real property of the Company and guaranteed by Rongfeng Cui and Yanjuan Wang. On March 29, 2017, the Company borrowed a one-year loan of $290,255 (RMB2,000,000), with annual interest rate of $6.09% from Qingdao Weihai Road Sub Branch. The loan was guaranteed by Rongfeng Cui and Yanjuan Wang. On December 13, 2017, the Company borrowed another one-year loan of $604,458 (RMB4,000,000) with annual interest rate 5.655% from Qingdao Weihai Road Sub Branch. The loan was secured by real property of the Company and guaranteed by Rongfeng Cui and Yanjuan Wang. Short-term loans from unrelated party On September 8, 2017, the Company borrowed unsecured, non-interest bearing funds from a third party in the amount of $50,000. The Company repaid this loan in full on February 1, 2018. The total interest expenses for the years ended December 31, 2017, 2016 and 2015 were $82,946, $102,274, and $117,366, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 8 – RELATED PARTY TRANSACTIONS The related parties had transactions for the years ended December 31, 2017, 2016 and 2015 consist of the following: Name of Related Party Nature of Relationship Rongfeng Cui Principal shareholder, Chairman of the Board and Chief Executive Officer (“CEO”) Rongbing Cui Principal shareholder, Director, Chief Financial Officer (“CFO”), Rongfeng Cui’s brother Yanjuan Wang Principal shareholder, Rongfeng Cui’s wife Runrang Cui Father of Rongfeng Cui, and owner of Huangdao Dinggezhuang Kangkang Family Farm Xiaomei Wang Rongbing Cui’s wife Phillip Zou Brother of Hayden Zou, former director of TDH Holdings, Inc. Qingdao Kangkang Pet Supplies Co., Ltd. (“Kangkang”). Controlled by Rongfeng Cui, through owning 85% of its equity interest Tide (Shanghai) Industrial Co. Ltd. (“Tide”). Owned by Rongfeng Cui and Yanjuan Wang Qingdao Like Pet Supplies Co., Ltd. (“Like”). Rongfeng Cui served as CEO, and Shuhua Cui, the sister of Rongfeng Cui, served as the legal person. On May 26, 2016, both Rongfeng Cui and Shuhua Cui resigned from their positions, but still have significant influence on Like. Qingdao Like Electronic Commerce Co., Ltd. (“Like E-commerce”). Rongfeng Cui was the former supervisor and shareholder, but still has significant influence on Like. Qingdao Saike Environmental Technology Co., Ltd. (“Saike”). Owned by Rongfeng Cui and Yanjuan Wang Huangdao Ding Ge Zhuang Kangkang Family Farm (“Kangkang Family Farm”) Controlled by Rongfeng Cui’s father TDH Group BVBA A European company solely owned by Rongfeng Cui Qingdao Yinhe Jiutian Information Technology Co., Ltd. (“Yinhe Jiutian”) Solely owned by Xiaomei Wang Zhenyu Trading (Qingdao) Co., Ltd. (“Zhenyu”) Owner of 45% equity interest in Yichong Technology (Qingdao) Co., Ltd. Beijing Quanmin Chongai Information Technology Co., Ltd. (“Quanmin Chongai”) Controlled by Anqi Zhou, a close relative of Rongfeng Cui Due from related parties Due from related parties consisted of the following: December 31, December 31, 2017 2016 Tide (Shanghai) Industrial Co. Ltd. $ 46 $ - TDH Group BVBA 329,237 35,842 Rongfeng Cui 32,678 - Total $ 361,961 $ 35,842 I) Operating expenses paid on behalf of related parties During the year ended December 31, 2017, the Company paid operating expenses on behalf of Quanmin Chongai in the amount of $272, and Quanmin Chongai repaid the Company in full. During the years ended December 31, 2017, 2016 and 2015, the Company paid operating expenses on behalf of Tide in the amount of $44, $246,598 and $6,422, respectively, and Tide repaid the Company in the amount of $0, $252,847 and $0, respectively. During the year ended December 31, 2017, the Company paid operating expense on behalf of TDH Group BVBA in the amount of $444. II) Collection of accounts receivable by related parties The balances of due from TDH Group BVBA and Rongfeng Cui represent overseas trade receivables collected by the two parties on behalf of the Company. During the years ended December 31, 2017 and 2016, TDH Group BVBA collected overseas sales receivables on behalf of the Company in the amount of $280,602 and $130,364, among which $852 and $94,552 was transferred back to the Company, respectively. In April 2018, TDH Group BVBA transferred additional $236,742 to the Company. During the years ended December 31, 2017 and 2016, Rongfeng Cui collected overseas trade receivables on behalf of the Company in the amount of $194,062 and $113,774, among which $3,506 and $0 was transferred to the Company, respectively. During the years ended December 31, 2017 and 2016, due from Rongfeng Cui was settled with payables to Rongfeng Cui in the amount of $72,685, and $113,774, respectively. In addition, the Company, Rongfeng Cui and Yanjuan Wang agreed to settle the balance due from Rongfeng Cui with payables to Yanjuan Wang in the amount of $86,405. III) Loans to related parties During the years ended December 31, 2016 and 2015, the Company made loans to Kangkang in the amount of $3,462 and $1,207,002, respectively, and Kangkang repaid the loans to the Company in the amount of $592,752 and $1,348,414, respectively. During the years ended December 31, 2016 and 2015, the Company made loans to Like in the amount of $2,157,621 and $2,446,338, respectively, and Like repaid the loans to the Company in the amount of $2,456,402 and $1,412,790, respectively. During the year ended December 31, 2015, the Company directly made loans to Rongfeng Cui in the amount of $2,281,903, and instructed Kangkang and Like to make additional loans to Rongfeng Cui in the amount of $658,233 and $1,412,790, respectively, in lieu of repaying to the Company. Certain loans made to Kangkang, Like, and Rongfeng Cui prior to August 2016 were lack of business purpose in nature. Per Section 402 of Sarbanes-Oxley Act of 2002, loans to certain related parties were deemed as prohibited transactions for U.S. public companies. The loans were made prior to the Company filing a registration statement with the SEC to go public in the U.S. The loans were repaid to the Company in full as of December 31, 2016. Due to related parties Due to related parties consisted of the following: December 31, December 31, 2017 2016 Huangdao Ding Ge Zhuang Kangkang Family Farm $ - $ 387 Qingdao Saike Environmental Technology Co., Ltd. 6,148 - Phillip Zou 1,000 - Yanjuan Wang 29,878 783,291 Rongfeng Cui 308,847 284,602 Xiaomei Wang - 52,422 Total $ 345,873 $ 1,120,702 The balance of due to related parties represents expenses incurred by related parties in the ordinary course of business, expense paid by related parties on behalf of the Company as well as loans the Company obtained from related parties for working capital purposes. The loans owed to the related parties are unsecured, non-interest bearing and payable on demand. During the years ended December 31, 2017 and 2016, the Company obtained loans from Yanjuan Wang in the amount of $0 and $2,694,566, respectively, and the Company repaid Yanjuan Wang in the amount of $594,939, and $1,752,220, respectively. During the years ended December 31, 2017, 2016 and 2015, the Company obtained loans from Rongfeng Cui in the amount of $1,109,960, $443,871 and $951,906, and repaid Rongfeng Cui in the amount of $1,092,138, $1,203,819 and $0, respectively. Rongfeng Cui paid the expenses on behalf of the Company in the amount of $59,790 and $41,859 during the years ended December 31, 2017 and 2016, respectively. Sales to related party and advance from related party The Company made sales to Like in the amount of $506,495 and incurred corresponding cost of sales of $399,177 during the year ended December 31, 2017, which was included in cost of revenues – related party. Account receivable in the amount of $576,520 from Like was collected, and the Company, Like and Yanjuan Wang agreed to settle balance of account receivable of $11,233 from Like with payable to Yanjuan Wang during the year ended December 31, 2017. Like also made prepayment to the Company for future purchases and the balance of advance from customer - Like was $7,520 as of December 31, 2017. Purchase from related parties and accounts payable to related parties During the year ended December 31, 2016, the Company consigned Like to process raw materials. The total consignment processing cost was $490,388, which was settled with loans to Like in full. The Company purchased financial application software from Yinhe Jiutian in the amount of $5,059 and $138,943 during the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, the payables to Yinhe Jiutian was $120,020 and $111,139, respectively. The Company purchased raw materials from Kangkang Family Farm in the amount of $30,191 and $13,818 during the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, the balance of payables to Kangkang Family Farm was $31,354 and $0, respectively. During the years ended December 31, 2017 and 2016, raw materials purchased from Kangkang Family Farm in the amount of $740 and $6,616, respectively, were included in cost of revenues. The Company purchased finished goods from Zhenyu in the amount of $163,127 during the year ended December 31, 2017. As of December 31, 2017, the balance of payables to Zhenyu was $924. During the year ended December 31, 2017, $43,762 of finished goods purchased from Zhenyu was sold and included in cost of revenues. Operating lease with related parties On December 31, 2014, the Company entered into a lease agreement with Runrang Cui, CEO’s father, to lease a 2,000 square meters factory, located at Big Cuijiazhuang Village, Zhangjialou Town, Huangdao District, Qingdao City, Shandong Province, PRC. The lease starts from January 1, 2015 with a term of three years. The lease payment is RMB36,000 (approximately $5,800) for the year ended December 31, 2015, RMB38,160 (approximately $5,700) for the year ended December 31, 2016 and RMB40,450 (approximately $6,000) for the year ended December 31, 2017. The Company renewed the lease on January 1, 2018 with a lease term of three years. The annual lease payment is RMB160,000 (approximately $23,700) for the year ended December 31, 2018, RMB169,600 (approximately $25,100) for the year ended December 31, 2019 and RMB179,776 (approximately $26,600) for the year ended December 31, 2020. On December 31, 2014, the Company entered into a lease agreement with Rongfeng Cui to lease a 136.8 square meters office space, located at Room 722, Block B, World Trade Center, Hongkong Zhong Road, Shinan District, Qingdao City, Shandong Province, PRC. The lease starts from January 1, 2015 with a term of three years. The lease payment is RMB12,000 (approximately $1,900) for the year ended December 31, 2015, RMB12,720 (approximately $1,900) for the year ended December 31, 2016 and RMB13,483 (approximately $2,000) for the year ended December 31, 2017. The Company renewed the lease on January 1, 2018 with a lease term of three years. The annual lease payment is RMB66,000 (approximately $9,800) for the year ended December 31, 2018, RMB69,960 (approximately $10,400) for the year ended December 31, 2019 and RMB74,158 (approximately $11,000) for the year ended December 31, 2020. On December 25, 2015, the Company entered into a lease agreement with Rongfeng Cui to lease a 133.19 square meters office located at Room 07E, Floor 7, Block B, Shilibao Jia #3, Chaoyang District, Beijing City, PRC. The lease starts from January 1, 2016 with a term of two years. The lease payment is RMB144,000 (approximately $23,100) per annum for the years ended December 31, 2016 and 2017. The Company renewed the lease on January 1, 2018 with a lease term of three years. The annual lease payment is RMB190,000 (approximately $28,100) for the year ended December 31, 2018, RMB201,400 (approximately $29,800) for the year ended December 31, 2019 and RMB213,484 (approximately $31,600) for the year ended December 31, 2020. On December 25, 2015, the Company entered into a lease agreement with Rongfeng Cui to lease a 406.97 square meters office located at Room 1902 - 1903, Financial Square, 215 Zhuhai East Road, Jiaonan District, Qingdao City, PRC. The lease starts from January 1, 2016 with a term of two years. The lease payment is RMB180,000 (approximately $27,100) for the year ended December 31, 2016 and RMB190,800 (approximately $28,200) for the year ended December 31, 2017. The Company renewed the lease on January 1, 2018 with a lease term of three years. The annual lease payment is RMB190,800 (approximately $28,200) for the year ended December 31, 2018, RMB202,248 (approximately $29,900) for the year ended December 31, 2019 and RMB214,383 (approximately $31,700) for the year ended December 31, 2020. On January 5, 2016, the Company entered into a lease agreement with Rongbing Cui, the CFO of the Company, to lease a 406.97 square meters office located at Room 1809, Financial Square, 215 Zhuhai East Road, Huangdao District, Qingdao City, PRC. The lease starts from January 1, 2016 with a term of three years. The lease payment is RMB140,000 (approximately $21,000) per annum. In September 2017, the Company signed a lease agreement with Saike to lease a 2,793.05 square meters plant located at 201Shiqian Village, Ducun Town, Jiaozhou City, Shandong Province, PRC. The lease starts from September 11, 2017 to September 10, 2027. The annual rent is RMB120,000 (approximately $18,000) throughout the lease term. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
INCOME TAXES | Note 9 – INCOME TAXES British Virgin Islands (“BVI”) Under the current laws of BVI, TDH Holdings is not subject to tax on income or capital gain. In addition, payments of dividends by the Company to their shareholders are not subject to withholding tax in the BVI. Hong Kong The Company’s subsidiary, TDH HK, is incorporated in Hong Kong and has no operating profit or tax liabilities during the period. TDH HK is subject to tax at 16.5% on the assessable profits arising in or derived from Hong Kong. United State The Company’s subsidiary, TDH Petfood LLC, is incorporated in the State of Nevada and is subject to the United States Federal and state income tax at a statutory rate of 21%. No provision for the U.S. Federal income tax has been made as TDH Petfood LLC had no taxable income in this jurisdiction for the reporting periods. PRC The Company’s subsidiaries, Tiandihui, Chongai Jiujiu, Kangkang Development, Yichong and Lingchong were incorporated in the PRC and are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. On March 16, 2007, the National People’s Congress enacted a new enterprise income tax law, which took effect as of January 1, 2008. The law applies a uniform 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. According to the tax law, entities that qualify as high and new technology enterprises (“HNTE”) supported by the PRC government are allowed a 15% preferential tax rate instead of the uniform tax rate of 25%. On December 2, 2016, Tiandihui was granted the HNTE designation jointly by Qingdao science and Technology Bureau, Qingdao Municipal Finance Bureau, Qingdao Municipal State Taxation Bureau, Qingdao Local Taxation Bureau, and is qualified for a preferential tax rate of 15% for the years ended December 31, 2016, 2017 and 2018. The provision for income taxes consists of the following: For the Years Ended December 31, 2017 2016 2015 Current $ (46,521 ) $ 89,928 $ 254,068 Deferred (8,581 ) (127 ) 15,513 Total $ (55,102 ) $ 89,801 $ 269,581 The reconciliations of the statutory income tax rate and the Company’s effective income tax rate are as follows: For the Years Ended December 31, 2017 2016 2015 HK statutory income tax rate 16.50 % 16.50 % 16.50 % PRC statutory income tax rate difference -1.50 % -1.50 % 8.50 % Effect of additional deduction on R&D expense and salary for disabled workers -127.75 % -7.69 % -0.84 % Effect of expenses not deductible for tax purposes 1.10 % 0.40 % 0.57 % Effect of change of tax rate for temporary difference - - -1.40 % Valuation allowance recognized with respect to the loss in subsidiaries 19.83 % -0.03 % 13.28 % Others - 0.49 % - Total -91.82 % 8.17 % 36.61 % Accounting for Uncertainty in Income Taxes The tax authority of the PRC Government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. Therefore, the Company’s PRC entities’ tax filings results are subject to change. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s PRC entities’ tax filings, which may lead to additional tax liabilities. ASC 740 requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax positions and concluded that no provision for uncertainty in income taxes was necessary as of December 31, 2017 and 2016. Deferred tax assets and liabilities as of December 31, 2017 and 2016 are composed of the following: As of December 31, 2017 2016 Deferred tax assets, non-current Net operating loss carrying forward $ 274,073 $ 202,959 Total deferred tax assets Valuation allowance (274,073 ) (202,959 ) Total $ - $ - As of December 31, 2017 2016 Deferred tax liabilities, non-current Property, plant and equipment $ 5,810 $ 13,795 Total $ 5,810 $ 13,795 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or are utilized. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholder's Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Note 10 – STOCKHOLDERS’ EQUITY On September 30, 2015, TDH Holdings was incorporated in the British Virgin Islands. On the same day, the Company issued 10,000 common shares at $0.001 per share to its incorporator with cash proceeds of $10. On August 8, 2016, a total of 7,518,908 shares were issued at $0.5 per share, to nineteen individuals and seven companies with total cash proceeds of $3,759,454, among which $2,880,000 was distributed to the former owners of Tiandihui to acquire 100% of its equity interest. On December 31, 2016, a total of 371,092 common shares were issued at $2.5 per share to Fulcan Capital Partners, LLC, Xiumei Lan and Zhonghua Liu with cash proceeds of $827,730 received during the year ended December 31, 2017. The Company collected the remaining subscription receivable of $100,000 on April 10, 2018. On September 25, 2017, the Company completed its initial public offering on the NASDAQ Capital Market under the symbol of “PETZ”. The Company offered 1,523,750 common shares at $4.25 per share. Net proceeds raised by the Company from the initial public offering amounted to $5,542,047 after deducting underwriting discounts and commissions and other offering expenses. Out of the $5.5 million net proceeds, $500,000 was deposited into an escrow account to satisfy the initial $500,000 in potential indemnification obligations arising during an escrow period of two years following the closing date of September 25, 2017 and was presented as restricted cash, non-current. As of the filing date, there is a total number of 9,423,750 common shares outstanding and 200,000,000 authorized. As of December 31, 2017 and 2016, the Company had statutory reserve in the amount of $160,014 and $140,570, respectively, representing Tiandihui’s statutory reserves. In accordance with the relevant laws and regulations of the PRC, Tiandihui, Chongai Jiujiu, Kangkang Development, Yichong and Lingchong are required to set aside at least 10% of their respective after-tax net profits each year determined in accordance with PRC GAAP and if any, to fund the statutory reserve until the balance of the reserve reaches 50% of their respective registered capital. The statutory reserve is not distributable in the form of cash dividends and can be used to make up cumulative prior year losses. Chongai Jiujiu, Kangkang Development, Yichong and Lingchong did not make any appropriation to statutory reserve as Chongai Jiujiu and Kangkang Development incurred losses and Yichong and Lingchong did not have any operations during the years ended December 31, 2017 and 2016. |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Concentrations of Credit Risk and Major Customers [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | Note 11 – CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS Customers For the years ended December 31, 2017, 2016 and 2015, customers accounting for 10% or more of the Company’s revenue were as follows: For the Years Ended December 31, Customer 2017 2016 2015 Customer A * % 12.00 % * % Customer B 10.89 % 12.67 % 12.54 % * As of December 31, 2017, Customer B, and Customer F accounted for 14.77% and 15.76% of the Company’s total current outstanding accounts receivable, respectively. As of December 31, 2016, Customer A and Customer C, accounted for 24.07% and 10.99% of the Company’s total current outstanding accounts receivable, respectively. Suppliers For the years ended December 31, 2017, 2016 and 2015, suppliers accounting for 10% or more of the Company’s purchase were as follows: For the Years Ended Supplier 2017 2016 2015 Supplier A 10.65 % 14.12 % * Supplier B 13.23 % 13.39 % 15.51 % * As of December 31, 2017 and 2016, no supplier’s balance accounted for over 10% of the Company’s total accounts payable and notes payable. |
Segmental and Revenue Analysis
Segmental and Revenue Analysis | 12 Months Ended |
Dec. 31, 2017 | |
Segmental and Revenue Analysis [Abstract] | |
SEGMENTAL AND REVENUE ANALYSIS | Note 12 – SEGMENTAL AND REVENUE ANALYSIS The Company is solely engaged in the business of manufacturing and selling of pet food. Since the nature, the production processes and the marketing channel of the products are substantially similar, the Company is considered as operating in a single reportable segment with revenues derived from multiple product lines, marketing channels and countries. Certain entity-wide disclosures relating to revenues for the years ended December 31, 2017, 2016 and 2015 are as follows: The net revenues generated from different marketing channels consist of the following: For the Years Ended December 31, 2017 2016 2015 Overseas sales $ 21,190,063 $ 18,882,589 $ 13,987,822 Domestic sales 2,086,462 1,129,133 701,425 Electronic commerce 5,734,121 4,461,504 1,645,765 Less: Sale tax and addition (31,135 ) (29,490 ) (22,738 ) Total net revenues $ 28,979,511 $ 24,443,736 $ 16,312,274 The net revenues generated from different product lines are set forth as following: For the Years Ended December 31, 2017 2016 2015 Pet chews $ 9,614,426 $ 10,316,841 $ 6,581,597 Dried pet snacks 14,851,868 11,204,517 7,902,104 Wet canned pet food 3,035,196 1,926,455 1,444,143 Dental health snacks 856,875 606,648 321,711 Baked pet biscuits 8,226 123,898 85,457 Others 644,055 294,867 - Less: Sale tax and addition (31,135 ) (29,490 ) (22,738 ) Total net revenues $ 28,979,511 $ 24,443,736 $ 16,312,274 The net revenues generated from different countries are set forth as following: For the Years Ended December 31, 2017 2016 2015 South Korea $ 5,397,982 $ 5,299,721 $ 4,689,733 China 6,553,715 5,073,272 2,347,190 United Kingdom 3,213,303 3,227,619 289,228 Germany 3,585,535 3,204,314 3,309,266 Other countries 10,260,111 7,668,300 5,699,595 Less: Sale tax and addition (31,135 ) (29,490 ) (22,738 ) Total net revenues $ 28,979,511 $ 24,443,736 $ 16,312,274 “Other countries” are comprised of all countries whose revenues, individually, were less than 10% of the Company’s total revenues. All of the Company’s long-lived assets are located in the PRC. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 13 – COMMITMENTS AND CONTINGENCIES The Company has entered into multiple lease agreements for the lease of premises for factory buildings, office spaces and warehouses. Also see Note 8 for operating leases with related parties. Rental expense, including operating leases with related parties, for the years ended December 2017, 2016 and 2015 was $163,497, $161,136 and $95,843, respectively. The Company has future minimum lease obligations as of December 31, 2017 as follows: 2018 $ 198,927 2019 203,947 2020 214,489 2021 37,655 2022 18,443 Thereafter 92,217 Total $ 765,678 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 14 – SUBSEQUENT EVENTS Lease renewal On January 1, 2018, the Company renewed a lease agreement with Rongfeng Cui to lease a 136.8 square meters office space, located at Room 722, Block B, World Trade Center, Hongkong Zhong Road, Shinan District, Qingdao City, Shandong Province, PRC. The lease starts from January 1, 2018 with a term of three years. The annual lease payment is RMB66,000 (approximately $10,000) and will increase at 6% each year starting from 2019. On January 1, 2018, the Company renewed a lease agreement with Rongfeng Cui to lease a 133.19 square meters office located in Room 07E, Floor 7, Block B, Shilibao Jia #3, Chaoyang District, Beijing City, PRC. The lease starts from January 1, 2018 with a term of three years. The lease payment is RMB190,000 (approximately $28,000) and will increase at 6% each year starting from 2019. On January 1, 2018, the Company renewed a lease agreement with Rongfeng Cui to lease a 406.97 square meters office located in Room 1902 - 1903, Financial Square, 215 Zhuhai East Road, Jiaonan District, Qingdao City, PRC. The lease starts from January 1, 2018 with a term of three years. The annual lease payment is RMB190,800 (approximately $28,000) and will increase at 6% each year starting from 2019. On January 1, 2018, the Company renewed a lease agreement with Runrang Cui to lease a 2,000 square meters factory, located at Big Cuijiazhuang Village, Zhangjialou Town, Huangdao District, Qingdao City, Shandong Province, China. The lease starts from January 1, 2018 with a term of three years. The annual lease payment is RMB160,000 (approximately $24,000) and will increase 6% each year starting from 2019. On March 16, 2018, the Company entered into a lease agreement to lease a 6,000 square meters warehouse in Qingdao City, PRC. The lease is valid from March 16, 2018 to March 15, 2021. The lease payment is RMB540,000 (approximately $80,000) for the year ended March 15, 2019, RMB570,000 (approximately $84,000) for the year ended March 15, 2020 and RMB600,000 (approximately $89,000) for the year ended March 15, 2021. Investments in subsidiaries On January 3, 2018, the Company established a wholly-owned subsidiary, Qingdao Lile Pet Foodstuffs Co., Ltd. (“Lile”) in Qingdao City, PRC. On January 13, 2018, Shandong Tide Food Co., Ltd was established in Zhucheng City, PRC. The Company owns 37% equity interest in this newly established company. As of filing date, the register capital has not been paid. On February 2, 2018, the Company acquired 10% equity interest of Liujiayi Pet Technology (Beijing) Co., Ltd. for a cash consideration of $79,436 (RMB500,000). Subsequent borrowing and repayment On January 15, 2018, the Company borrowed a one-year loan of $464,579 (RMB3,000,000) with annual interest rate of 3% from an individual. On March 16, 2018, the Company repaid the loan of $307,390 (RMB2,000,000) to Postal Savings Bank - Qingdao Weihai Rd. Sub Branch. On March 21, 2018, the Company borrowed another one-year loan of $307,390 (RMB2,000,000) from the same bank with an interest rate of 6.96%. The loan was guaranteed by Rongfeng Cui and Yanjuan Wang. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying audited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC (“PRC GAAP”), the accounting standards used in the places of their domicile. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company to present them in conformity with U.S. GAAP. The accompanying consolidated financial statements as of December 31, 2017 and 2016 consolidate the financial statements of TDH Holdings, its 100% owned subsidiary TDH HK, 99% owned subsidiary TDH Petfood LLC, 100% owned subsidiary Tiandihui, and Tiandihui’s 100% owned subsidiaries Chongai Jiujiu and Kangkang Development, 55% owned subsidiaries Yichong and Lingchong. No noncontrolling interest was recognized since TDH Petfood LLC, Lingchong and Yichong did not have any operations during the years ended December 31, 2017 and 2016, and all significant intercompany accounts and transactions have been eliminated. |
Foreign Currency Translation | Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollar (“$”), which is the reporting currency of the Company. The functional currency of TDH Holdings, TDH HK and TDH Petfood LLC is United States dollar. The functional currency of Tiandihui, Chongai Jiujiu, Kangkang Development, Yichong and Lingchong is Renminbi (“RMB”). For the subsidiaries whose functional currencies are RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income or loss. Transaction gains and losses are reflected in the consolidated statements of income. The consolidated balance sheet amounts, with the exception of equity at December 31, 2017 and 2016 were translated at RMB 6.5064 and RMB 6.9437 to $1.00, respectively. The equity accounts were stated at their historical rate. The average translation rates applied to consolidated statements of income and cash flows for the years ended December 31, 2017 and 2016 were RMB 6.7570 and RMB 6.6430 to $1.00, respectively. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings or financial position. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, valuation of inventories and income taxes including the valuation allowance for deferred tax assets. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash in time deposits and highly liquid investments purchased with original maturities of three months or less. The Company has no cash equivalents balances as of December 31, 2017 and 2016. |
Restricted Cash | Restricted Cash Restricted cash, current mainly represents bank deposits used to pledge the bank acceptance notes and bank letters of credit. The Company entered into credit agreements with commercial banks in China (“endorsing banks”) which agree to provide credit within stipulated limits. Within the stipulated credit limits, the Company can issue bank acceptance notes and letters of credit to its suppliers as payments for the purchases. In order to issue bank acceptance notes and letters of credit, the Company is generally required to make initial deposits to the endorsing banks in amounts of certain percentage of the face amount of the bank acceptance notes or letters of credit to be issued by the Company. The cash in such accounts is restricted for use over the terms of the bank acceptance notes and letters of credits, which are normally three to six months. Restricted cash, non-current represents deposits in an escrow account pursuant to an escrow indemnification agreement in connection with the Company’s initial public offering to satisfy the potential indemnification obligations arising during an escrow period of two years following September 25, 2017. |
Accounts Receivable | Accounts Receivable Accounts receivable consists principally of amounts due from trade customers. Credit is extended based on an evaluation of the customer’s financial condition and collateral is not generally required. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the 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, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. As of December 31, 2017 and 2016, the Company had accounts receivable of $1,932,924 and $865,491, respectively. The Company had no allowance for doubtful accounts as of December 31, 2017 and 2016, and had no bad debt expenses for trading accounts receivables occurred for the years then ended. |
Inventories | Inventories Inventories, consisting of raw materials, low-valued consumables, work in progress, goods sold in transit and finished goods, are stated at the lower of cost or market value utilizing the weighted average method. The valuation of inventory requires us to estimate excess and slow-moving inventory. We evaluate the recoverability of our inventory based on assumption about expected demand and market conditions. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, are stated at cost less depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. Depreciation of property, plant and equipment is calculated based on cost, less their estimated residual value, if any, using the straight-line method over their estimated useful lives. Estimated useful lives are as follows: Machinery equipment 5 - 20 years Computer software 10 years Electronic equipment 5 - 10 years Office equipment 5 - 10 years Motor vehicles 5 - 10 years Buildings 20 - 50 years Construction in progress mainly represents expenditures with respect of the Company’s factory under construction. All direct costs relating to the acquisition or construction of the Company’s factory are capitalized as construction in progress. Construction in progress is not depreciated until the asset is placed in service. |
Land Use Rights | Land Use Rights According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods the rights are granted. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For the years ended December 31, 2017 and 2016, the Company did not record any impairment charges on long-lived assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 825 requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which fair value option was not elected. For certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, current, accounts receivable, inventories, advances to suppliers, prepayments and other current assets, accounts payable, notes payables to vendors, advances from customers, taxes payable, other current liabilities and short-term loans, the carrying amounts approximate their fair values due to the short maturities. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2017 and 2016. |
Operating Leases | Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the lease period. |
Earnings per Share | Earnings per Share Basic earnings per common share is computed by dividing net earnings attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common shareholders by the sum of the weighted average number of common shares outstanding and dilutive potential common shares during the period. Potentially dilutive common shares consist of common shares warrants using the treasury stock method. Common equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive. |
Revenue Recognition | Revenue Recognition Pursuant to the guidance of ASC Topic 605 and ASC Topic 360, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured. Revenue consists of the invoiced value for the sales net of value-added tax (“VAT”), business tax, applicable local government levies and returns. The Company does not provide rebate, pricing protection or any other concessions to its customers. For the years ended December 31, 2017, 2016 and 2015, the Company had immaterial sales returns and no discounts. |
Government Grants | Government Grants Government grants include cash subsidies as well as other subsidies received from the PRC government by the subsidiaries of the Company. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. The government grant is recognized in the consolidated statements of income and comprehensive income when cash is received and the relevant performance criteria specified in the grant are met. |
Research and Development | Research and Development Research and development costs are expensed as incurred. The costs primarily consist of raw materials used and salaries paid for the development and improvement of the Company’s products. |
Selling Expenses | Selling Expenses Selling expenses consist primarily of advertising, salaries and shipping and handling costs incurred during the selling activities. Advertising and transportation expenses are charged to expense as incurred. Shipping and handling expenses amounted to $1,162,827, $836,561 and $516,409 for the years ended December 31, 2017, 2016 and 2015, respectively. Advertising costs amounted to $215,399, $84,667 and $56,544 for the years ended December 31, 2017, 2016 and 2015, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes under the provision of FASB ASC 740-10, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. |
Comprehensive Income/Loss | Comprehensive Income/Loss ASC 220 “Comprehensive Income” established standards for reporting and display of comprehensive income/loss, its components and accumulated balances. Components of comprehensive income/loss include net income/loss and foreign currency translation adjustment. As of December 31, 2017 and 2016, the only component of accumulated other comprehensive income/loss was foreign currency translation adjustment. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash, restricted cash, and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company routinely assesses the financial strength of the customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. |
Related Parties Transactions | Related Parties Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Segment Reporting | Segment Reporting 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. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by marketing channel. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)” The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company elected adopting the standard using the modified retrospective method. The Company has identified its revenue streams and assessed each for the impacts. The Company expects the adoption of Topic 606 will have impact on one revenue stream. Specifically, under the standard the Company expects to recognize revenue generated from products sold to certain E-commerce platforms at the time products are delivered rather than when the price is determined and mutually agreed upon between the Company and the E-commerce platforms, usually at a later time after products delivery. The Company planned to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. The Company does not expect this adjustment to be material. In November 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” The standard will be effective for the Company beginning January 1, 2019, with early adoption permitted. The Company plans to adopt the standard effective January 1, 2019. The Company anticipates this standard will have a material impact on the Company’s consolidated balance sheets. However, the Company does not expect adoption will have a material impact on the Company’s consolidated statements of income. While the Company is continuing to assess potential impacts of the standard, the Company currently expects the most significant impact will be the recognition of ROU assets and lease liabilities for operating leases. In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323)”. 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” |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of property and equipment estimated useful lives | Machinery equipment 5 - 20 years Computer software 10 years Electronic equipment 5 - 10 years Office equipment 5 - 10 years Motor vehicles 5 - 10 years Buildings 20 - 50 years |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Schedule of inventories | December 31, December 31, Raw materials $ 2,392,731 $ 1,822,614 Work in progress 4,106,837 1,911,656 Finished goods 2,635,764 2,238,854 Total $ 9,135,332 $ 5,973,124 |
Property, Plant and Equipment24
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property, plant and equipment | December 31, December 31, 2017 2016 Machinery equipment $ 3,357,637 $ 3,095,665 Electronic equipment 70,421 65,412 Office equipment 229,978 201,533 Vehicles 79,385 102,024 Buildings 964,504 903,761 Leasehold Improvement 262,648 - Total property, plant and equipment 4,964,573 4,368,395 Less: accumulated depreciation (1,444,200 ) (1,061,660 ) Property, plant and equipment, net $ 3,520,373 $ 3,306,735 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | December 31, December 31, Land use rights $ 232,550 $ 117,094 Accumulated depreciation (21,527 ) (6,273 ) Land use rights, net $ 211,023 $ 110,821 |
Short Term Loans (Tables)
Short Term Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short Term Loans [Abstract] | |
Schedule of short term loans and related guarantees | Guarantors December 31, December 31, Industrial & Commercial Bank of China - Qingdao Shinan Second Branch Rongfeng Cui, Principal shareholder, $ 430,345 705,676 Bank of China, Qingdao HK Road Branch Rongfeng Cui, Principal shareholder, - 158,417 China Postal Savings Bank - Qingdao Branch Rongfeng Cui, Principal shareholder, - 864,092 China Postal Savings Bank - Weihai Rd. Sub Branch Rongfeng Cui, Principal shareholder, 922,169 - TAIJ Capital Limited None 50,000 - $ 1,402,514, $ 1,728,185 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of related parties | Name of Related Party Nature of Relationship Rongfeng Cui Principal shareholder, Chairman of the Board and Chief Executive Officer (“CEO”) Rongbing Cui Principal shareholder, Director, Chief Financial Officer (“CFO”), Rongfeng Cui’s brother Yanjuan Wang Principal shareholder, Rongfeng Cui’s wife Runrang Cui Father of Rongfeng Cui, and owner of Huangdao Dinggezhuang Kangkang Family Farm Xiaomei Wang Rongbing Cui’s wife Phillip Zou Brother of Hayden Zou, former director of TDH Holdings, Inc Qingdao Kangkang Pet Supplies Co., Ltd. (“Kangkang”). Controlled by Rongfeng Cui, through owning 85% of its equity interest Tide (Shanghai) Industrial Co. Ltd. (“Tide”). Owned by Rongfeng Cui and Yanjuan Wang Qingdao Like Pet Supplies Co., Ltd. (“Like”). Rongfeng Cui served as CEO, and Shuhua Cui, the sister of Rongfeng Cui served as the legal person. On May 26, 2016, both Rongfeng Cui and Shuhua Cui resigned from their positions, but still have significant influence on Like. Qingdao Like Electronic Commerce Co., Ltd. (“Like E-commerce”). Rongfeng Cui was the former supervisor and shareholder, but still has significant influence on Like. Qingdao Saike Environmental Technology Co., Ltd. (“Saike”). Owned by Rongfeng Cui and Yanjuan Wang Huangdao Ding Ge Zhuang Kangkang Family Farm (“Kangkang Family Farm”) Controlled by Rongfeng Cui’s father TDH Group BVBA A European company solely owned by Rongfeng Cui Qingdao Yinhe Jiutian Information Technology Co., Ltd. (“Yinhe Jiutian”) Solely owned by Xiaomei Wang Zhenyu Trading (Qingdao) Co., Ltd. (“Zhenyu”) Owner of 45% equity interest in Yichong Technology (Qingdao) Co., Ltd. Beijing Quanmin Chongai Information Technology Co., Ltd. (“Quanmin Chongai”) Controlled by Anqi Zhou, a close relative of Rongfeng Cui |
Schedule of due from related parties | December 31, December 31, 2017 2016 Tide (Shanghai) Industrial Co. Ltd. $ 46 $ - TDH Group BVBA 329,237 35,842 Rongfeng Cui 32,678 - Total $ 361,961 $ 35,842 |
Schedule of due to related parties | December 31, December 31, 2017 2016 Huangdao Ding Ge Zhuang Kangkang Family Farm $ - $ 387 Qingdao Saike Environmental Technology Co., Ltd. 6,148 - Phillip Zou 1,000 - Yanjuan Wang 29,878 783,291 Rongfeng Cui 308,847 284,602 Xiaomei Wang - 52,422 Total $ 345,873 $ 1,120,702 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of provision for income taxes | For the Years Ended December 31, 2017 2016 2015 Current $ (46,521 ) $ 89,928 $ 254,068 Deferred (8,581 ) (127 ) 15,513 Total $ (55,102 ) $ 89,801 $ 269,581 |
Schedule of reconciliations of the statutory income tax rate and the Company's effective income tax rate | For the Years Ended December 31, 2017 2016 2015 HK statutory income tax rate 16.50 % 16.50 % 16.50 % PRC statutory income tax rate difference -1.50 % -1.50 % 8.50 % Effect of additional deduction on R&D expense and salary for disabled workers -127.75 % -7.69 % -0.84 % Effect of expenses not deductible for tax purposes 1.10 % 0.40 % 0.57 % Effect of change of tax rate for temporary difference - - -1.40 % Valuation allowance recognized with respect to the loss in subsidiaries 19.83 % -0.03 % 13.28 % Others - 0.49 % - Total -91.82 % 8.17 % 36.61 % |
Schedule of deferred tax assets and liabilities | As of December 31, 2017 2016 Deferred tax assets, non-current Net operating loss carrying forward $ 274,073 $ 202,959 Total deferred tax assets Valuation allowance (274,073 ) (202,959 ) Total $ - $ - As of December 31, 2017 2016 Deferred tax liabilities, non-current Property, plant and equipment $ 5,810 $ 13,795 Total $ 5,810 $ 13,795 |
Concentrations of Credit Risk29
Concentrations of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Customers [Member] | |
Concentration Risk [Line Items] | |
Summary of customers and suppliers | For the Years Ended December 31, Customer 2017 2016 2015 Customer A * % 12.00 % * % Customer B 10.89 % 12.67 % 12.54 % * |
Suppliers [Member] | |
Concentration Risk [Line Items] | |
Summary of customers and suppliers | For the Years Ended Supplier 2017 2016 2015 Supplier A 10.65 % 14.12 % * Supplier B 13.23 % 13.39 % 15.51 % * |
Segmental and Revenue Analysis
Segmental and Revenue Analysis (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segmental and Revenue Analysis [Abstract] | |
Schedule of net revenues generated from different reportable segment | For the Years Ended December 31, 2017 2016 2015 Overseas sales $ 21,190,063 $ 18,882,589 $ 13,987,822 Domestic sales 2,086,462 1,129,133 701,425 Electronic commerce 5,734,121 4,461,504 1,645,765 Less: Sale tax and addition (31,135 ) (29,490 ) (22,738 ) Total net revenues $ 28,979,511 $ 24,443,736 $ 16,312,274 For the Years Ended December 31, 2017 2016 2015 Pet chews $ 9,614,426 $ 10,316,841 $ 6,581,597 Dried pet snacks 14,851,868 11,204,517 7,902,104 Wet canned pet food 3,035,196 1,926,455 1,444,143 Dental health snacks 856,875 606,648 321,711 Baked pet biscuits 8,226 123,898 85,457 Others 644,055 294,867 - Less: Sale tax and addition (31,135 ) (29,490 ) (22,738 ) Total net revenues $ 28,979,511 $ 24,443,736 $ 16,312,274 For the Years Ended December 31, 2017 2016 2015 South Korea $ 5,397,982 $ 5,299,721 $ 4,689,733 China 6,553,715 5,073,272 2,347,190 United Kingdom 3,213,303 3,227,619 289,228 Germany 3,585,535 3,204,314 3,309,266 Other countries 10,260,111 7,668,300 5,699,595 Less: Sale tax and addition (31,135 ) (29,490 ) (22,738 ) Total net revenues $ 28,979,511 $ 24,443,736 $ 16,312,274 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Schedule of future minimum lease obligations | 2018 $ 198,927 2019 203,947 2020 214,489 2021 37,655 2022 18,443 Thereafter 92,217 Total $ 765,678 |
Organization (Details)
Organization (Details) | Nov. 14, 2017 | Jul. 19, 2016USD ($) | Jul. 19, 2016CNY (¥) | Feb. 21, 2016 | Nov. 29, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 09, 2016 | Aug. 08, 2016 |
Organization (Textual) | |||||||||
Interest, percentage | 100.00% | 100.00% | |||||||
Acquire percentage, description | On November 14, 2017, a 55% owned subsidiary of the Company, Yichong (Qingdao) Technology Co., Ltd. ("Yichong") was incorporated in Qingdao city, PRC. Yichong had no operation during the year ended December 31, 2017. | On November 29, 2017, a 55% owned subsidiary of the Company, Qingdao Lingchong Information Technology Co., Ltd. ("Lingchong") was incorporated in Qingdao City, PRC. Lingchong had no operation during the year ended December 31, 2017. | |||||||
TDH Holdings [Member] | |||||||||
Organization (Textual) | |||||||||
Interest, percentage | 99.00% | ||||||||
TDH HK [Member] | |||||||||
Organization (Textual) | |||||||||
Interest, percentage | 100.00% | 100.00% | |||||||
Acquire percentage, description | TDH HK entered into an equity transfer agreement with Rongfeng Cui and his wife Yanjuan Wang, the shareholders of Tiandihui at the time, to acquire 100% of the equity interests in Tiandihui ("reorganization"). | ||||||||
Tiandihui [Member] | |||||||||
Organization (Textual) | |||||||||
Acquire percentage, description | Tiandihui acquired 100% shares of Chongai Jiujiu from Rongfeng Cui and Yanjuan Wang with a consideration of $87,849 (RMB610,000). The acquisition of Chongai Jiujiu is a transaction between entities under common control. | Tiandihui acquired 100% shares of Chongai Jiujiu from Rongfeng Cui and Yanjuan Wang with a consideration of $87,849 (RMB610,000). The acquisition of Chongai Jiujiu is a transaction between entities under common control. | |||||||
Consideration of business acquisition | $ 87,849 | ¥ 610,000 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Machinery equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Computer software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Electronic equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Motor vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 50 years |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 08, 2016 | Feb. 21, 2016 | |
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of effective ownership | 100.00% | 100.00% | |||
Accounts receivable | $ 1,932,924 | $ 865,491 | |||
Shipping and handling expenses | 1,162,827 | 836,561 | $ 516,409 | ||
Advertising costs | $ 215,399 | $ 84,667 | $ 56,544 | ||
Exception of equity translated amount, description | The average translation rates applied to consolidated statements of income and cash flows for the years ended December 31, 2017 and 2016 were RMB 6.7570 and RMB 6.6430 to $1.00. | ||||
Average translation to income statements and cash flows, description | The exception of equity at December 31, 2017 and 2016 were translated at RMB 6.5064 and RMB 6.9437 to $1.00. | ||||
TDH HK [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of effective ownership | 100.00% | 100.00% | |||
TDH Petfood LLC [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of effective ownership | 99.00% | 99.00% | |||
Tiandihui, and Tiandihui's [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of effective ownership | 100.00% | 100.00% | |||
Chongai Jiujiu, and Kangkang Development [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of effective ownership | 100.00% | 100.00% | |||
Yichong and Lingchong [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of effective ownership | 55.00% | 55.00% |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash (Textual) | ||
Notes payable | $ 1,377,106 | $ 1,414,232 |
Non-cancellable letters of credit outstanding | 97,200 | 0 |
Restricted cash - non-current | $ 500,000 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Raw materials | $ 2,392,731 | $ 1,822,614 |
Work in progress | 4,106,837 | 1,911,656 |
Finished goods | 2,635,764 | 2,238,854 |
Total | $ 9,135,332 | $ 5,973,124 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories (Textual) | ||
Work in progress | $ 4,106,837 | $ 1,911,656 |
Finished goods | 2,635,764 | 2,238,854 |
Third Parties [Member] | ||
Inventories (Textual) | ||
Work in progress | 1,356,461 | 308,742 |
Finished goods | $ 208,731 | $ 103,024 |
Property, Plant and Equipment38
Property, Plant and Equipment, Net (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 4,964,573 | $ 4,368,395 |
Less: accumulated depreciation | (1,444,200) | (1,061,660) |
Property, plant and equipment, net | 3,520,373 | 3,306,735 |
Machinery equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 3,357,637 | 3,095,665 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 70,421 | 65,412 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 229,978 | 201,533 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 79,385 | 102,024 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 964,504 | 903,761 |
Leasehold Improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 262,648 |
Property, Plant and Equipment39
Property, Plant and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment, Net (Textual) | |||
Depreciation expense | $ 349,887 | $ 252,957 | $ 263,177 |
Pledged as collateral under loan arrangements | $ 555,070 | $ 533,935 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of intangible assets | ||
Land use rights | $ 232,550 | $ 117,094 |
Accumulated depreciation | (21,527) | (6,273) |
Land use rights, net | $ 211,023 | $ 110,821 |
Land Use Rights (Details Textua
Land Use Rights (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Land Use Rights (Textual) | |||
Amortization expense | $ 14,283 | $ 3,147 | $ 3,357 |
2,018 | 5,000 | ||
2,019 | 5,000 | ||
2,020 | 5,000 | ||
2,021 | 5,000 | ||
2,022 | 5,000 | ||
Thereafter | 157,000 | ||
Land use right, net book values | 211,023 | 110,821 | |
Collateral Pledged [Member] | |||
Land Use Rights (Textual) | |||
Land use right, net book values | $ 115,056 | $ 110,821 |
Short Term Loans (Details)
Short Term Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short term loans and related guarantees [Abstract] | ||
Short term loans | $ 1,402,514 | $ 1,728,185 |
Industrial & Commercial Bank of China - Qingdao Shinan Second Branch [Member] | ||
Short term loans and related guarantees [Abstract] | ||
Guarantors | Rongfeng Cui, Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO"). Yanjuan Wang, Principal shareholder, Rongfeng Cui's wife. | Rongfeng Cui, Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO"). Yanjuan Wang, Principal shareholder, Rongfeng Cui's wife. |
Short term loans | $ 430,345 | $ 705,676 |
Bank of China, Qingdao HK Road Branch [Member] | ||
Short term loans and related guarantees [Abstract] | ||
Guarantors | Rongfeng Cui, Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO"). Yanjuan Wang, Principal shareholder, Rongfeng Cui's wife. | Rongfeng Cui, Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO"). Yanjuan Wang, Principal shareholder, Rongfeng Cui's wife. |
Short term loans | $ 158,417 | |
China Postal Savings Bank - Qingdao Branch [Member] | ||
Short term loans and related guarantees [Abstract] | ||
Guarantors | Rongfeng Cui, Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO"). Yanjuan Wang, Principal shareholder, Rongfeng Cui's wife. | Rongfeng Cui, Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO"). Yanjuan Wang, Principal shareholder, Rongfeng Cui's wife. |
Short term loans | $ 864,092 | |
China Postal Savings Bank - Weihai Rd. Sub Branch [Member] | ||
Short term loans and related guarantees [Abstract] | ||
Guarantors | Rongfeng Cui, Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO"). Yanjuan Wang, Principal shareholder, Rongfeng Cui's wife. | Rongfeng Cui, Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO"). Yanjuan Wang, Principal shareholder, Rongfeng Cui's wife. |
Short term loans | $ 922,169 | |
TAIJ Capital Limited [Member] | ||
Short term loans and related guarantees [Abstract] | ||
Guarantors | None. | None. |
Short term loans | $ 50,000 |
Short Term Loans (Details Textu
Short Term Loans (Details Textual) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 13, 2017USD ($) | Dec. 13, 2017CNY (¥) | Sep. 08, 2017USD ($) | Jul. 14, 2017USD ($) | Jul. 14, 2017CNY (¥) | Jun. 20, 2017USD ($) | Jun. 20, 2017CNY (¥) | Mar. 29, 2017USD ($) | Mar. 29, 2017CNY (¥) | Nov. 28, 2016USD ($) | Nov. 28, 2016CNY (¥) | Aug. 15, 2016USD ($) | Aug. 15, 2016CNY (¥) | May 16, 2016USD ($) | May 16, 2016CNY (¥) | Mar. 29, 2016USD ($) | Mar. 29, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Nov. 30, 2015USD ($) | Nov. 30, 2015CNY (¥) | May 12, 2015USD ($) | May 12, 2015CNY (¥) | Jan. 29, 2015USD ($) | Jan. 29, 2015CNY (¥) | Jan. 16, 2015USD ($) | Jan. 16, 2015CNY (¥) | |
Short Term Loans (Textual) | |||||||||||||||||||||||||||||
Total interest expenses | $ 82,946 | $ 102,274 | $ 117,366 | ||||||||||||||||||||||||||
Third-party [Member] | |||||||||||||||||||||||||||||
Short Term Loans (Textual) | |||||||||||||||||||||||||||||
Short-term bank loans borrowed | $ 50,000 | ||||||||||||||||||||||||||||
Industrial & Commercial Bank of China - Qingdao Shinan Second Branch [Member] | |||||||||||||||||||||||||||||
Short Term Loans (Textual) | |||||||||||||||||||||||||||||
Short-term bank loans borrowed | $ 1,401,790 | $ 412,998 | ¥ 2,800,000 | $ 719,508 | ¥ 4,900,000 | $ 705,676 | ¥ 4,900,000 | ¥ 9,100,000 | $ 308,086 | ¥ 2,000,000 | |||||||||||||||||||
Short-term bank loans annual interest rate | 5.22% | 5.22% | 5.22% | 5.22% | 5.22% | 5.22% | 7.56% | 7.56% | |||||||||||||||||||||
Bank of China, Qingdao HK Road Branch [Member] | |||||||||||||||||||||||||||||
Short Term Loans (Textual) | |||||||||||||||||||||||||||||
Short-term bank loans borrowed | $ 158,417 | ¥ 1,100,000 | $ 169,447 | ¥ 1,100,000 | |||||||||||||||||||||||||
Short-term bank loans annual interest rate | 5.655% | 5.655% | 5.655% | 5.655% | |||||||||||||||||||||||||
China Postal Savings Bank - Qingdao Branch [Member] | |||||||||||||||||||||||||||||
Short Term Loans (Textual) | |||||||||||||||||||||||||||||
Short-term bank loans borrowed | $ 290,361 | ¥ 2,000,000 | $ 576,062 | ¥ 4,000,000 | $ 288,031 | ¥ 2,000,000 | $ 616,171 | ¥ 4,000,000 | $ 616,171 | ¥ 4,000,000 | |||||||||||||||||||
Short-term bank loans annual interest rate | 6.09% | 6.09% | 5.655% | 5.655% | 6.09% | 6.09% | 6.09% | 6.09% | 7.00% | 7.00% | |||||||||||||||||||
Qingdao Weihai Road Sub Branch [Member] | |||||||||||||||||||||||||||||
Short Term Loans (Textual) | |||||||||||||||||||||||||||||
Short-term bank loans borrowed | $ 604,458 | ¥ 4,000,000 | $ 290,255 | ¥ 2,000,000 | |||||||||||||||||||||||||
Short-term bank loans annual interest rate | 5.655% | 5.655% | 6.09% | 6.09% | |||||||||||||||||||||||||
Maximum [Member] | Industrial & Commercial Bank of China - Qingdao Shinan Second Branch [Member] | |||||||||||||||||||||||||||||
Short Term Loans (Textual) | |||||||||||||||||||||||||||||
Short-term bank loans annual interest rate | 7.50% | 7.50% | |||||||||||||||||||||||||||
Minimum [Member] | Industrial & Commercial Bank of China - Qingdao Shinan Second Branch [Member] | |||||||||||||||||||||||||||||
Short Term Loans (Textual) | |||||||||||||||||||||||||||||
Short-term bank loans annual interest rate | 5.75% | 5.75% |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Rongfeng Cui [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Principal shareholder, Chairman of the Board and Chief Executive Officer ("CEO") |
Rongbing Cui [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Principal shareholder, Director, Chief Financial Officer ("CFO"), Rongfeng Cui's brother |
Yanjuan Wang [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Principal shareholder, Rongfeng Cui's wife |
Runrang Cui [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Father of Rongfeng Cui, and owner of Huangdao Dinggezhuang Kangkang Family Farm |
Xiaomei Wang [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Rongbing Cui's wife |
Phillip Zou [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Brother of Hayden Zou, former director of TDH Holdings, Inc |
Qingdao Kangkang Pet Supplies Co., Ltd. ("Kangkang"). [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Controlled by Rongfeng Cui, through owning 85% of its equity interest |
Tide (Shanghai) Industrial Co. Ltd. ("Tide"). [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Owned by Rongfeng Cui and Yanjuan Wang |
Qingdao Like Pet Supplies Co., Ltd. ("Like"). [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Rongfeng Cui served as CEO, and Shuhua Cui, the sister of Rongfeng Cui served as the legal person. On May 26, 2016 both Rongfeng Cui and Shuhua Cui resigned from their positions, but still have significant influence on Like. |
Qingdao Like Electronic Commerce Co., Ltd. ("Like E-commerce"). [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Rongfeng Cui was the former supervisor and shareholder, but still has significant influence on Like. |
Qingdao Saike Environmental Technology Co., Ltd. ("Saike"). [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Owned by Rongfeng Cui and Yanjuan Wang |
Huangdao Ding Ge Zhuang Kangkang Family Farm ("Kangkang Family Farm") [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Controlled by Rongfeng Cui's father |
TDH Group BVBA [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | A European company solely owned by Rongfeng Cui |
Qingdao Yinhe Jiutian Information Technology Co., Ltd. ("Yinhe Jiutian") [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Solely owned by Xiaomei Wang |
Zhenyu Trading (Qingdao) Co., Ltd. ("Zhenyu") [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Owner of 45% equity interest in Yichong Technology (Qingdao) Co., Ltd. |
Beijing Quanmin Chongai Information Technology Co., Ltd. ("Quanmin Chongai") [Member] | |
Related Party Transaction [Line Items] | |
Nature of Relationship | Controlled by Anqi Zhou, a close relative of Rongfeng Cui |
Related Party Transactions (D45
Related Party Transactions (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 361,961 | $ 35,842 |
Tide (Shanghai) Industrial Co. Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 46 | |
TDH Group BVBA [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 329,237 | 35,842 |
Rongfeng Cui [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | $ 32,678 |
Related Party Transactions (D46
Related Party Transactions (Details 2) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 345,873 | $ 1,120,702 |
Huangdao Ding Ge Zhuang Kangkang Family Farm [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 387 | |
Qingdao Saike Environmental Technology Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 6,148 | |
Phillip Zou [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 1,000 | |
Yanjuan Wang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 29,878 | 783,291 |
Rongfeng Cui [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 308,847 | 284,602 |
Xiaomei Wang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 52,422 |
Related Party Transactions (D47
Related Party Transactions (Details Textual) - USD ($) | Jan. 05, 2016 | Sep. 30, 2017 | Dec. 25, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions (Textual) | |||||||
Loans to related party | $ 1,073,961 | $ 3,503,190 | $ 971,575 | ||||
Repaid loans to related party | 1,767,391 | 3,310,849 | 56 | ||||
Due from related parties | 361,961 | 35,842 | |||||
Sales to related parties | 576,520 | ||||||
Description of lease agreement | The Company entered into a lease agreement with Rongfeng Cui, to lease a 406.97 square meters office located at Room 1902 - 1903, Financial Square, 215 Zhuhai East Road, Jiaonan District, Qingdao City, China. The lease starts from January 1, 2016 with a term of two years. The lease payment is RMB180,000 (approximately $27,100) for the year ended December 31, 2016 and RMB190,800 (approximately $28,200) for the year ended December 31, 2017. The Company renewed the lease on January 1, 2018 with a lease term of three years. The annual lease payment is RMB190,800 (approximately $28,200) for the year ended December 31, 2018, RMB202,248 (approximately $29,900) for the year ended December 31, 2019 and RMB214,383 (approximately $31,700) for the year ended December 31, 2020. | ||||||
Operating expenses | 8,029,708 | 5,924,198 | 3,345,769 | ||||
Cost of revenues | 20,283,321 | 17,368,249 | 12,289,773 | ||||
Rongfeng Cui [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Loans to related party | 1,109,960 | 443,871 | 951,906 | ||||
Repaid loans to related party | 1,092,138 | 1,203,819 | 0 | ||||
Due from related parties | $ 32,678 | ||||||
Related party transaction, description | During the years ended December 31, 2017 and 2016, Rongfeng Cui collected overseas sales receivables on behalf of the Company in the amount of $194,062 and $113,774, among which $3,506 and $0 was transferred to the Company, respectively. During the year ended December 31, 2017 and 2016, due from Rongfeng Cui was settled with payables to Rongfeng Cui in the amount of $72,685, and $113,774, respectively. In addition, the Company, Rongfeng Cui and Yanjuan Wang agreed to settle the balance due from Rongfeng Cui with payables to Yanjuan Wang in the amount of $86,405. | ||||||
Payment expenses on behalf in amount | $ 59,790 | 41,859 | |||||
Description of lease agreement | The Company entered into a lease agreement with Rongfeng Cui, to lease a 133.19 square meters office located at Room 07E, Floor 7, Block B, Shilibao Jia #3, Chaoyang District, Beijing City, China. The lease starts from January 1, 2016 with a term of two years. The lease payment is RMB144,000 (approximately $23,100) per annum for the years ended December 31, 2016 and 2017. The Company renewed the lease on January 1, 2018 with a lease term of three years. The annual lease payment is RMB190,000 (approximately $28,100) for the year ended December 31, 2018, RMB201,400 (approximately $29,800) for the year ended December 31, 2019 and RMB213,484 (approximately $31,600) for the year ended December 31, 2020. | The Company entered into a lease agreement with Rongfeng Cui, to lease a 136.8 square meters office space, located at Room 722, Block B, World Trade Center, Hongkong Zhong Road, Shinan District, Qingdao City, Shandong Province, China. The lease starts from January 1, 2015 with a term of three years. The lease payment is RMB12,000 (approximately $1,900) for the year ended December 31, 2015, RMB12,720 (approximately $1,900) for the year ended December 31, 2016 and RMB13,483 (approximately $2,000) for the year ended December 31, 2017. The Company renewed the lease on January 1, 2018 with a lease term of three years. The annual lease payment is RMB66,000 (approximately $9,800) for the year ended December 31, 2018, RMB69,960 (approximately $10,400) for the year ended December 31, 2019 and RMB74,158 (approximately $11,000) for the year ended December 31, 2020. | |||||
Rongbing Cui [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Description of lease agreement | The Company entered into a lease agreement with Rongbing Cui, the CFO of the Company, to lease a 406.97 square meters office located at Room 1809, Financial Square, 215 Zhuhai East Road, Huangdao District, Qingdao City, China. The lease starts from January 1, 2016 with a term of three years. The lease payment is RMB140,000 (approximately $21,000) per annum. | ||||||
Yanjuan Wang [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Repaid loans to related party | 594,939 | 1,752,220 | |||||
Due from related parties | 0 | 2,694,566 | |||||
Runrang Cui [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Description of lease agreement | The Company entered into a lease agreement with Runrang Cui, CEO's father, to lease a 2,000 square meters factory, located at Big Cuijiazhuang Village, Zhangjialou Town, Huangdao District, Qingdao City, Shandong Province, China. The lease starts from January 1, 2015 with a term of three years. The lease payment is RMB36,000 (approximately $5,800) for the year ended December 31, 2015, RMB38,160 (approximately $5,700) for the year ended December 31, 2016 and RMB40,450 (approximately $6,000) for the year ended December 31, 2017. The Company renewed the lease on January 1, 2018 with a lease term of three years. The annual lease payment is RMB160,000 (approximately $23,700) for the year ended December 31, 2018, RMB169,600 (approximately $25,100) for the year ended December 31, 2019 and RMB179,776 (approximately $26,600) for the year ended December 31, 2020. | ||||||
Tide [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Loans to related party | 44 | 246,598 | 6,422 | ||||
Repaid loans to related party | 0 | 252,847 | 0 | ||||
Due from related parties | 46 | ||||||
Like [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Due from related parties | 1,412,790 | ||||||
Consignment processing cost | 490,388 | ||||||
Payment expenses on behalf in amount | 0 | ||||||
Sales to related parties | 506,495 | ||||||
Corresponding cost | 399,177 | ||||||
Accounts payable to related parties | 11,233 | ||||||
Advance from customer | 7,520 | ||||||
Saike [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Description of lease agreement | The Company signed a lease agreement with Saike to lease a 2,793.05 square meters plant located at 201 Shiqian Village, Ducun Town, Jiaozhou City, Shandong Province, China. The lease starts from September 11, 2017 to September 10, 2027. The annual rent is RMB120,000 (approximately $18,000) throughout the lease term. | ||||||
Kangkang Family [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Due from related parties | $ 658,233 | ||||||
Purchased raw materials from related party | 30,191 | 13,818 | |||||
Purchased raw materials from related party balance | 31,354 | 0 | |||||
Finished goods purchased from related parties | |||||||
TDH Group BVBA [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Loans to related party | 444 | ||||||
Repaid loans to related party | 852 | 98,801 | |||||
Due from related parties | $ 329,237 | 35,842 | |||||
Related party transaction, description | During the year ended December 31, 2017 and 2016, TDH Group BVBA collected overseas sales receivables on behalf of the Company in the amount of $280,602 and $130,364, among which $852 and $94,552 was transferred back to the Company, respectively. In April 2018, TDH Group BVBA transferred additional $236,742 to the Company. | ||||||
Qingdao Yinhe Jiutian Information Technology Co., Ltd. ("Yinhe Jiutian") [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Accounts payable to related parties | $ 120,020 | 111,139 | |||||
Purchased financial application software | 5,059 | 138,943 | |||||
Zhenyu [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Purchased raw materials from related party balance | 924 | ||||||
Finished goods purchased from related parties | 163,127 | ||||||
Cost of revenues | 43,762 | ||||||
Beijing Quanmin Chongai Information Technology Co., Ltd. ("Quanmin Chongai") [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Loans to related party | 272 | ||||||
Kangkang Family Farm [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Finished goods purchased from related parties | $ 740 | $ 6,616 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Current | $ (46,521) | $ 89,928 | $ 254,068 |
Deferred | (8,581) | (127) | 15,513 |
Total | $ (55,102) | $ 89,801 | $ 269,581 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
HK statutory income tax rate | 16.50% | 16.50% | 16.50% |
PRC statutory income tax rate difference | (1.50%) | (1.50%) | 8.50% |
Effect of additional deduction on R&D expense and salary for disabled workers | 127.75% | (7.69%) | (0.84%) |
Effect of expenses not deductible for tax purposes | 1.10% | 0.40% | 0.57% |
Effect of change of tax rate for temporary difference | (1.40%) | ||
Valuation allowance recognized with respect to the loss in subsidiaries | 19.83% | (0.03%) | 13.28% |
Others | 0.49% | ||
Total | 91.82% | 8.17% | 36.61% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets, non-current | ||
Net operating loss carrying forward | $ 274,073 | $ 202,959 |
Total deferred tax assets | ||
Valuation allowance | (274,073) | (202,959) |
Total |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax liabilities, non-current | ||
Property, plant and equipment | $ 5,810 | $ 13,795 |
Total | $ 5,810 | $ 13,795 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes (Textual) | |||
Hong Kong tax rate | 16.50% | 16.50% | 16.50% |
Federal and state income tax at statutory rate | 21.00% | ||
Preferential tax rate percentage, description | The law applies a uniform 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. According to the tax law, entities that qualify as high and new technology enterprises ("HNTE") supported by the PRC government are allowed a 15% preferential tax rate instead of the uniform tax rate of 25%. | On December 2, 2016, Tiandihui was granted the HNTE designation jointly by Qingdao science and Technology Bureau, Qingdao Municipal Finance Bureau, Qingdao Municipal State Taxation Bureau, Qingdao Local Taxation Bureau, and would be qualified for a preferential tax rate of 15% for the years ended December 31, 2016, 2017 and 2018. |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Aug. 08, 2016 | Sep. 25, 2017 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 21, 2016 |
Stockholder's Equity (Textual) | |||||||
Issuance of common shares, shares | 7,518,908 | ||||||
Shares issued, price share | $ 0.5 | $ 4.25 | |||||
Issuance of cash proceeds amount | $ 3,759,454 | $ 5,542,047 | $ 4,687,153 | $ 10 | |||
Owners to acquire equity interest | 100.00% | 100.00% | |||||
Initial public offering shares | 1,523,750 | ||||||
Net proceeds from initial public offering | $ 5,540,523 | ||||||
Escrow account description | Out of the $5.5 million net proceeds, $500,000 was deposited into an escrow account to satisfy the initial $500,000 in potential indemnification obligations arising during an escrow period of two years following the closing date of September 25, 2017 and was presented as long term restricted cash. | ||||||
Deposited into an escrow account | $ 500,000 | ||||||
Common stock, shares outstanding | 9,423,750 | 7,900,000 | |||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | |||||
Statutory reserve amount | $ 160,014 | $ 140,570 | |||||
Description of equity interest | In accordance with the relevant laws and regulations of the PRC, Tiandihui, Chongai Jiujiu, Kangkang Development, Yichong and Lingchong are required to set aside at least 10% of their respective after-tax net profits each year determined in accordance with PRC GAAP and if any, to fund the statutory reserve until the balance of the reserve reaches 50% of their respective registered capital. | ||||||
TDH Group BVBA [Member] | |||||||
Stockholder's Equity (Textual) | |||||||
Issuance of common shares, shares | 10,000 | ||||||
Shares issued, price share | $ 0.001 | ||||||
Issuance of cash proceeds amount | $ 10 | ||||||
Fulcan Capital Partners, LLC [Member] | |||||||
Stockholder's Equity (Textual) | |||||||
Issuance of common shares, shares | 371,092 | ||||||
Shares issued, price share | $ 2.5 | ||||||
Issuance of cash proceeds amount | $ 752,730 | ||||||
Remaining subscription receivable | $ 175,000 | ||||||
Xiumei Lan [Member] | |||||||
Stockholder's Equity (Textual) | |||||||
Issuance of common shares, shares | 371,092 | ||||||
Shares issued, price share | $ 2.5 | ||||||
Issuance of cash proceeds amount | $ 827,730 | ||||||
Remaining subscription receivable | $ 100,000 | ||||||
Zhonghua Liu [Member] | |||||||
Stockholder's Equity (Textual) | |||||||
Issuance of common shares, shares | 371,092 | ||||||
Shares issued, price share | $ 2.5 | ||||||
Issuance of cash proceeds amount | $ 827,730 | ||||||
Remaining subscription receivable | $ 100,000 | ||||||
Former owners of Tiandihui [Member] | |||||||
Stockholder's Equity (Textual) | |||||||
Issuance of cash proceeds amount | $ 2,880,000 |
Concentrations of Credit Risk54
Concentrations of Credit Risk and Major Customers (Details) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Customer, concentration risk percentage | [1] | 12.00% | [1] | ||
Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Customer, concentration risk percentage | 10.89% | 12.67% | 12.54% | ||
[1] | Less than 10% |
Concentrations of Credit Risk55
Concentrations of Credit Risk and Major Customers (Details 1) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Supplier A [Member] | ||||
Concentration Risk [Line Items] | ||||
Supplier, concentration risk percentage | 10.65% | 14.12% | [1] | |
Supplier B [Member] | ||||
Concentration Risk [Line Items] | ||||
Supplier, concentration risk percentage | 13.23% | 13.39% | 15.51% | |
[1] | Less than 10% |
Concentrations of Credit Risk56
Concentrations of Credit Risk and Major Customers (Details Textual) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Customers [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Customer, concentration risk, description | Customers accounting for 10% or more | Customers accounting for 10% or more | Customers accounting for 10% or more | ||
Concentration risk, percentage | [1] | 12.00% | [1] | ||
Customer [Member] | Accounts Receivable [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Concentration risk, percentage | 24.07% | ||||
Customer B [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Concentration risk, percentage | 10.89% | 12.67% | 12.54% | ||
Customer B [Member] | Accounts Receivable [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Concentration risk, percentage | 14.77% | ||||
Customer C [Member] | Accounts Receivable [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Concentration risk, percentage | 10.99% | ||||
Customer E [Member] | Accounts Receivable [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Concentration risk, percentage | 15.76% | ||||
Suppliers [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Supplier, concentration risk, description | Suppliers accounting for 10 | Suppliers accounting for 10% or more | Suppliers accounting for 10% or more | ||
Concentration risk, percentage | 10.65% | 14.12% | [1] | ||
Suppliers [Member] | Account Payable [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
Suppliers [Member] | Notes Payable [Member] | |||||
Concentrations of Credit Risk and Major Customers (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
[1] | Less than 10% |
Segmental and Revenue Analysi57
Segmental and Revenue Analysis (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total net revenues | $ 28,979,511 | $ 24,443,736 | $ 16,312,274 |
Marketing channels [Member] | |||
Segment Reporting Information [Line Items] | |||
Less: Sale tax and addition | (31,135) | (29,490) | (22,738) |
Total net revenues | 28,979,511 | 24,443,736 | 16,312,274 |
Marketing channels [Member] | Overseas sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 21,190,063 | 18,882,589 | 13,987,822 |
Marketing channels [Member] | Domestic sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 2,086,462 | 1,129,133 | 701,425 |
Marketing channels [Member] | Electronic commerce [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 5,734,121 | 4,461,504 | 1,645,765 |
Different product lines [Member] | |||
Segment Reporting Information [Line Items] | |||
Less: Sale tax and addition | (31,135) | (29,490) | (22,738) |
Total net revenues | 28,979,511 | 24,443,736 | 16,312,274 |
Different product lines [Member] | Pet chews [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 9,614,426 | 10,316,841 | 6,581,597 |
Different product lines [Member] | Dried pet snacks [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 14,851,868 | 11,204,517 | 7,902,104 |
Different product lines [Member] | Wet canned pet food [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 3,035,196 | 1,926,455 | 1,444,143 |
Different product lines [Member] | Dental health snacks [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 856,875 | 606,648 | 321,711 |
Different product lines [Member] | Baked pet biscuits [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 8,226 | 123,898 | 85,457 |
Different product lines [Member] | Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 644,055 | 294,867 | |
Different countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Less: Sale tax and addition | (31,135) | (29,490) | (22,738) |
Total net revenues | 28,979,511 | 24,443,736 | 16,312,274 |
Different countries [Member] | South Korea [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 5,397,982 | 5,299,721 | 4,689,733 |
Different countries [Member] | China [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 6,553,715 | 5,073,272 | 2,347,190 |
Different countries [Member] | United Kingdom [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 3,213,303 | 3,227,619 | 289,228 |
Different countries [Member] | Germany [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 3,585,535 | 3,204,314 | 3,309,266 |
Different countries [Member] | Other countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | $ 10,260,111 | $ 7,668,300 | $ 5,699,595 |
Segmental and Revenue Analysi58
Segmental and Revenue Analysis (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
Other Countries [Member] | |
Segmental and Revenue Analysis (Textual) | |
Description of other countries revenue | "Other countries" is comprised of all countries whose revenues, individually, were less than 10% of the Company's revenues. |
Commitments and Contingencies59
Commitments and Contingencies (Details) | Dec. 31, 2017USD ($) |
Commitments and Contingencies [Abstract] | |
2,018 | $ 198,927 |
2,019 | 203,947 |
2,020 | 214,489 |
2,021 | 37,655 |
2,022 | 18,443 |
Thereafter | 92,217 |
Total | $ 765,678 |
Commitments and Contingencies60
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies (Textual) | |||
Rental expense, operating lease | $ 163,497 | $ 161,136 | $ 95,843 |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 01, 2018CNY (¥)m² | Feb. 10, 2017USD ($) | Jan. 06, 2017CNY (¥)m² | Nov. 11, 2014CNY (¥) | Apr. 25, 2014CNY (¥)m² | Jul. 28, 2009CNY (¥)m² | Mar. 16, 2009CNY (¥)m² | Mar. 16, 2018USD ($)m² | Mar. 16, 2018CNY (¥)m² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 21, 2018USD ($) | Mar. 21, 2018CNY (¥) | Feb. 02, 2018USD ($) | Feb. 02, 2018CNY (¥) | Jan. 15, 2018USD ($) | Jan. 15, 2018CNY (¥) | Jan. 13, 2018 | Aug. 08, 2016 | Feb. 21, 2016 |
Subsequent Events (Textual) | |||||||||||||||||||||
Percentage of effective ownership | 100.00% | 100.00% | |||||||||||||||||||
Lease agreement, space | 12,549 | 53.75 | 13,305 | 5,310 | |||||||||||||||||
Lease agreement, description | The lease agreement was early terminated in March, 2018 and the Company was exempted from the lease payment for the period from January, 2018 to March, 2018. | The renewed lease is valid until December 17, 2016 and the Company ceased to renew the lease after its expiration. | |||||||||||||||||||
Annual lease payments | $ 130,738 | ¥ 365,356 | ¥ 40,000 | ¥ 39,696 | ¥ 100,000 | ¥ 230,000 | |||||||||||||||
Repaid loans to related party | $ | $ 1,767,391 | $ 3,310,849 | $ 56 | ||||||||||||||||||
Rongfeng Cui [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Repaid loans to related party | $ | $ 1,092,138 | $ 1,203,819 | $ 0 | ||||||||||||||||||
Subsequent Events [Member] | Shandong Tide Food Co Ltd [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Percentage of effective ownership | 37.00% | ||||||||||||||||||||
Subsequent Events [Member] | Qingdao [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Lease agreement, space | 6,000 | 6,000 | |||||||||||||||||||
Lease agreement, description | The lease is valid from March 16, 2018 to March 15, 2021. The lease payment is RMB540,000 (approximately $80,000) for the year ended March 15, 2019, RMB570,000 (approximately $84,000) for the year ended March 15, 2020 and RMB600,000 (approximately $89,000) for the year ended March 15, 2021. | The lease is valid from March 16, 2018 to March 15, 2021. The lease payment is RMB540,000 (approximately $80,000) for the year ended March 15, 2019, RMB570,000 (approximately $84,000) for the year ended March 15, 2020 and RMB600,000 (approximately $89,000) for the year ended March 15, 2021. | |||||||||||||||||||
Subsequent Events [Member] | Liujiayi Pet Technology (Beijing) Co., Ltd. [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Percentage of effective ownership | 10.00% | 10.00% | |||||||||||||||||||
Paid to shareholders | $ 79,436 | ¥ 500,000 | |||||||||||||||||||
Subsequent Events [Member] | Individual [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Borrowed amount | $ 464,579 | ¥ 3,000,000 | |||||||||||||||||||
Short-term bank loans annual interest rate | 3.00% | 3.00% | |||||||||||||||||||
Subsequent Events [Member] | Postal Savings Bank [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Borrowed amount | $ 307,390 | ¥ 2,000,000 | |||||||||||||||||||
Short-term bank loans annual interest rate | 6.96% | 6.96% | |||||||||||||||||||
Repaid loans to related party | $ 307,390 | ¥ 2,000,000 | |||||||||||||||||||
Subsequent Events [Member] | Lease Agreement [Member] | Rongfeng Cui [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Lease agreement, space | 136.8 | ||||||||||||||||||||
Lease agreement, description | The lease starts from January 1, 2018 with a term of three years. The annual lease payment is RMB66,000 (approximately $10,000) and will increase at 6% each year starting from 2019. | ||||||||||||||||||||
Annual lease payments | ¥ | ¥ 66,000,000 | ||||||||||||||||||||
Subsequent Events [Member] | Lease Agreement One [Member] | Rongfeng Cui [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Lease agreement, space | 133.19 | ||||||||||||||||||||
Lease agreement, description | The lease starts from January 1, 2018 with a term of three years. The lease payment is RMB190,000 (approximately $28,000) and will increase at 6% each year starting from 2019. | ||||||||||||||||||||
Annual lease payments | ¥ | ¥ 190,000 | ||||||||||||||||||||
Subsequent Events [Member] | Lease Agreement Two [Member] | Rongfeng Cui [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Lease agreement, space | 406.97 | ||||||||||||||||||||
Lease agreement, description | The lease starts from January 1, 2018 with a term of three years. The annual lease payment is RMB190,800 (approximately $28,000) and will increase at 6% each year starting from 2019. | ||||||||||||||||||||
Annual lease payments | ¥ | ¥ 190,800 | ||||||||||||||||||||
Subsequent Events [Member] | Lease Agreement Three [Member] | Rongfeng Cui [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Lease agreement, space | 2,000 | ||||||||||||||||||||
Lease agreement, description | The lease starts from January 1, 2018 with a term of three years. The annual lease payment is RMB160,000 (approximately $24,000) and will increase 6% each year starting from 2019. | ||||||||||||||||||||
Annual lease payments | ¥ | ¥ 160,000 | ||||||||||||||||||||
Subsequent Events [Member] | Lease Payment First Year [Member] | Qingdao [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Annual lease payments | 80,000 | 540,000 | |||||||||||||||||||
Subsequent Events [Member] | Lease Payment Second Year [Member] | Qingdao [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Annual lease payments | 84,000 | 570,000 | |||||||||||||||||||
Subsequent Events [Member] | Lease Payment Third Year [Member] | Qingdao [Member] | |||||||||||||||||||||
Subsequent Events (Textual) | |||||||||||||||||||||
Annual lease payments | $ 89,000 | ¥ 600,000 |