Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ECMOHO Ltd |
Entity Central Index Key | 0001763197 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity File Number | 001-39121 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 3rd Floor, 1000 Tianyaoqiao Road |
Entity Address, Address Line Two | Xuhui District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200030 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 3rd Floor, 1000 Tianyaoqiao Road |
Entity Address, Address Line Two | Xuhui District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200030 |
Contact Personnel Name | Zoe Wang |
City Area Code | +86 |
Local Phone Number | 21 6113 2270 |
Contact Personnel Email Address | ir@ecmoho.com |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 63,567,099 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00001 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 75,150,400 |
American Depositary Shares ("ADS") | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representing four Class A ordinary shares |
Trading Symbol | MOHO |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 49,098,841 | $ 10,336,467 |
Restricted cash | 2,000,054 | 2,628,392 |
Accounts receivable, net | 49,829,419 | 33,839,528 |
Inventories, net | 49,894,514 | 53,683,391 |
Prepayments and other current assets | 21,366,262 | 11,259,410 |
Total current assets | 172,189,090 | 111,747,188 |
Property and equipment, net | 1,428,979 | 1,476,512 |
Intangible assets | 1,311,653 | 1,502,231 |
Operating lease right-of-use assets | 1,203,961 | |
Deferred tax assets | 787,697 | 1,056,211 |
Other non-current assets | 1,538,996 | 1,990,266 |
Total assets | 178,460,376 | 117,772,408 |
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT | ||
Short term borrowings | 34,515,953 | 21,956,149 |
Accounts payable | 26,439,191 | 23,539,964 |
Amounts due to related parties | 16,233,461 | 17,423,200 |
Operating lease liabilities, current | 1,052,046 | |
Advances from customers | 1,043,004 | 2,957,026 |
Salary and welfare payable (including salary and welfare payable of the consolidated VIEs and VIE’s subsidiary without recourse to the Company of US$ 39,585 and US$ 21,695 as of December 31, 2018 and 2019, respectively) | 718,698 | 1,751,571 |
Tax payable (including tax payable of the consolidated VIEs and VIE’s subsidiary without recourse to the Company of US$ 1,848 and US$ 1,010 as of December 31, 2018 and 2019, respectively) | 3,042,834 | 2,906,972 |
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the consolidated VIEs and VIE’s subsidiary without recourse to the Company of US$ 8,781 and US$ 7,238 as of December 31, 2018 and 2019, respectively) | 10,516,988 | 4,294,370 |
Total current liabilities | 93,562,175 | 74,829,252 |
Deferred taxes liabilities | 138,406 | 210,076 |
Other non-current liabilities | 108,594 | |
Operating lease liabilities, non-current | 69,347 | |
Total liabilities | 93,769,928 | 75,147,922 |
Commitments and contingencies (Note 26) | ||
Mezzanine equity: | ||
Redeemable non-controlling interests (redemption amount of US$ 6,993,038 as of December 31, 2018) | 6,393,530 | |
Total mezzanine equity | 74,847,036 | |
Stockholders’ (deficit)/equity: | ||
Additional paid-in capital | 105,944,278 | |
Subscription receivables | (9,261,300) | |
Accumulated other comprehensive loss | (2,264,635) | (1,420,369) |
Accumulated deficit | (19,556,137) | (21,852,692) |
Total ECMOHO Limited shareholders’ (deficit)/equity | 84,124,893 | (32,533,454) |
Non-controlling interests | 565,555 | 310,904 |
Total shareholders’ (deficit)/equity | 84,690,448 | (32,222,550) |
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity | 178,460,376 | 117,772,408 |
Class A-1 Convertible Redeemable Preferred Shares | ||
Mezzanine equity: | ||
Convertible Redeemable Preferred Shares | 19,495,152 | |
Class A-2 Convertible Redeemable Preferred Shares | ||
Mezzanine equity: | ||
Convertible Redeemable Preferred Shares | 26,083,210 | |
Series A Convertible Redeemable Preferred Shares | ||
Mezzanine equity: | ||
Convertible Redeemable Preferred Shares | 22,875,144 | |
Class A Ordinary Shares | ||
Stockholders’ (deficit)/equity: | ||
Ordinary Shares | 635 | 155 |
Total shareholders’ (deficit)/equity | 635 | 155 |
Class B Ordinary Shares | ||
Stockholders’ (deficit)/equity: | ||
Ordinary Shares | 752 | 752 |
Total shareholders’ (deficit)/equity | $ 752 | $ 752 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Salary and welfare payable | $ 718,698 | $ 1,751,571 |
Tax payable | 3,042,834 | 2,906,972 |
Accrued liabilities and other current liabilities | $ 10,516,988 | 4,294,370 |
Redeemable non-controlling interests redemption amount | $ 6,993,038 | |
Treasury stock, par value | $ 0.00001 | $ 0.00001 |
Treasury stock, shares | 0 | 2,846,600 |
Class A-1 Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 9,519,000 | |
Convertible redeemable preferred shares issued | 9,519,000 | |
Convertible redeemable preferred shares outstanding | 9,519,000 | |
Convertible redeemable preferred shares redemption amount | $ 7,641,780 | |
Class A-2 Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 13,663,700 | |
Convertible redeemable preferred shares issued | 10,817,100 | |
Convertible redeemable preferred shares outstanding | 10,817,100 | |
Convertible redeemable preferred shares redemption amount | $ 22,011,640 | |
Series A Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 7,938,915 | |
Convertible redeemable preferred shares issued | 7,938,915 | |
Convertible redeemable preferred shares outstanding | 7,938,915 | |
Convertible redeemable preferred shares redemption amount | $ 22,926,600 | |
Class A Ordinary Shares | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 4,880,496,457 | 4,880,496,457 |
Common stock, shares issued | 63,567,099 | 18,377,600 |
Common stock, shares outstanding | 63,567,099 | 15,531,000 |
Class B Ordinary Shares | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 75,150,400 | 75,150,400 |
Common stock, shares issued | 75,150,400 | 75,150,400 |
Common stock, shares outstanding | 75,150,400 | 75,150,400 |
Consolidated VIEs and VIE's Subsidiary | ||
Salary and welfare payable | $ 21,695 | $ 39,585 |
Tax payable | 1,010 | 1,848 |
Accrued liabilities and other current liabilities | $ 7,238 | $ 8,781 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total net revenues | $ 329,479,916 | $ 199,015,036 | $ 98,237,569 |
Total cost of revenue | (257,431,074) | (140,153,462) | (69,124,047) |
Gross profit | 72,048,842 | 58,861,574 | 29,113,522 |
Operating expenses: | |||
Fulfillment expenses | (16,956,520) | (13,096,731) | (6,217,307) |
Sales and marketing expenses | (40,205,943) | (27,461,813) | (15,528,891) |
General and administrative expenses | (8,496,574) | (9,068,864) | (4,004,065) |
Research and development expenses | (1,808,422) | (1,669,323) | (484,089) |
Other operating income | 34,761 | ||
Total operating expenses | (67,432,698) | (51,296,731) | (26,234,352) |
Operating income | 4,616,144 | 7,564,843 | 2,879,170 |
Finance expense, net | (2,513,847) | (925,543) | (144,811) |
Foreign exchange loss, net | (392,955) | (306,730) | 105,976 |
Other income, net | 475,195 | 234,421 | (36,121) |
Income before income tax expenses | 2,184,537 | 6,566,991 | 2,804,214 |
Income taxes expenses | (249,639) | (417,124) | (80,576) |
Net income | 1,934,898 | 6,149,867 | 2,723,638 |
Less: Net income/(loss) attributable to the non-controlling interest shareholders and redeemable non-controlling interest shareholders | (361,657) | 25,877 | (101,819) |
Net income attributable to ECMOHO Limited | 2,296,555 | 6,123,990 | 2,825,457 |
Less: Accretion on convertible redeemable preferred shares to redemption value | (1,022,461) | (3,038,407) | (3,972,281) |
Less: Accretion to redemption value of redeemable non-controlling interests | (311,757) | (129,896) | |
Less: Extinguishment of convertible redeemable preferred shares | (24,763,245) | ||
Net (loss)/income attributable to ECMOHO Limited’s ordinary shareholders | 962,337 | (21,807,558) | (1,146,824) |
Net income | 1,934,898 | 6,149,867 | 2,723,638 |
Other comprehensive loss: | |||
Foreign currency translation adjustment, net of nil tax | (887,407) | (681,407) | 798,988 |
Less: Comprehensive income attributable to non-controlling interests | (404,798) | 14,543 | (94,976) |
Comprehensive income attributable to ECMOHO Limited | $ 1,452,289 | $ 5,453,917 | $ 3,617,602 |
Net (loss)/earnings per share attributable to ECMOHO Limited’s ordinary shareholders | |||
—basic | $ 0.01 | $ (0.26) | $ (0.01) |
—diluted | $ 0.01 | $ (0.26) | $ (0.01) |
Weighted average number of Ordinary Shares | |||
—basic | 98,104,216 | 84,970,000 | 81,162,400 |
—diluted | 115,644,864 | 84,970,000 | 81,162,400 |
Product Sales | |||
Total net revenues | $ 302,098,523 | $ 176,097,737 | $ 95,572,904 |
Total cost of revenue | (242,972,621) | (128,845,948) | (68,262,115) |
Services | |||
Total net revenues | 27,381,393 | 22,917,299 | 2,664,665 |
Total cost of revenue | (14,458,453) | (11,307,514) | (861,932) |
Round A Convertible Redeemable Preferred Shares | |||
Operating expenses: | |||
Less: Accretion on convertible redeemable preferred shares to redemption value | (1,018,493) | (1,559,285) | |
Round B Convertible Redeemable Preferred Shares | |||
Operating expenses: | |||
Less: Accretion on convertible redeemable preferred shares to redemption value | (1,574,737) | $ (2,412,996) | |
Series A Convertible Redeemable Preferred Shares | |||
Operating expenses: | |||
Less: Accretion on convertible redeemable preferred shares to redemption value | $ (1,022,461) | $ (445,177) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY - USD ($) | Total | Class A Ordinary Shares | Class B Ordinary Shares | Treasury Stocks | Additional Paid-in Capital | Subscription Receivable | Accumulated Other Comprehensive Loss | Accumulated Deficit | Non-Controlling Interests |
Balances at Dec. 31, 2016 | $ (19,875,597) | $ 60 | $ 752 | $ (1,542,441) | $ (18,804,327) | $ 470,359 | |||
Balance, shares at Dec. 31, 2016 | 6,012,000 | 75,150,400 | |||||||
Accretion to redemption value of convertible redeemable preferred shares | (3,972,281) | (3,972,281) | |||||||
Acquisition of non-controlling interests | (48,704) | (23,993) | (24,711) | ||||||
Sale of equity interests in a subsidiary to non-controlling interests | 16,235 | 78,404 | (62,169) | ||||||
Foreign currency translation adjustment, net of nil tax | 798,988 | 792,145 | 6,843 | ||||||
Net income | 2,723,638 | 2,825,457 | (101,819) | ||||||
Balances at Dec. 31, 2017 | (20,357,721) | $ 60 | $ 752 | (750,296) | (19,896,740) | 288,503 | |||
Balance, shares at Dec. 31, 2017 | 6,012,000 | 75,150,400 | |||||||
Issuance of treasury stock (Note 18) | 2,846,600 | ||||||||
Share-based compensation expense (Note 21) | 356,549 | $ 356,549 | |||||||
Capital contribution from non-controlling interests shareholders | 104,159 | 104,159 | |||||||
Accretion to redemption value of convertible redeemable preferred shares | (3,038,407) | (356,549) | (2,681,858) | ||||||
Accretion to redemption value of redeemable non-controlling interests and income attribution (Note 17) | (226,197) | (129,896) | (96,301) | ||||||
Convertible redeemable preferred shares exchanged to Class A Ordinary Shares(Note 16) | 19,495,152 | $ 95 | 19,495,057 | ||||||
Convertible redeemable preferred shares exchanged to Class A Ordinary Shares(Note 16), shares | 9,519,000 | ||||||||
exchanged to Class A Ordinary Shares | (9,261,300) | $ (9,261,300) | |||||||
(Note 16) | (24,763,245) | (19,495,057) | (5,268,188) | ||||||
Foreign currency translation adjustment, net of nil tax | (681,407) | (670,073) | (11,334) | ||||||
Net income | 6,149,867 | 6,123,990 | 25,877 | ||||||
Balances at Dec. 31, 2018 | (32,222,550) | $ 155 | $ 752 | (9,261,300) | (1,420,369) | (21,852,692) | 310,904 | ||
Balance, shares at Dec. 31, 2018 | 15,531,000 | 75,150,400 | 2,846,600 | ||||||
Cancellation of treasury stock (Note 18) | (2,846,600) | ||||||||
Share-based compensation expense (Note 21) | 1,575,029 | 1,575,029 | |||||||
Capital contribution from non-controlling interests shareholders | 29,196 | 29,196 | |||||||
Accretion to redemption value of convertible redeemable preferred shares | (1,022,461) | (1,022,461) | |||||||
Accretion to redemption value of redeemable non-controlling interests and income attribution (Note 17) | (284,689) | (311,757) | 27,068 | ||||||
Acquisition of redeemable non-controlling interests (Note 17) | 1,296,171 | 1,296,171 | |||||||
Convertible redeemable preferred shares exchanged to Class A Ordinary Shares(Note 16) | 69,565,189 | $ 293 | 69,564,896 | ||||||
Convertible redeemable preferred shares exchanged to Class A Ordinary Shares(Note 16), shares | 29,336,099 | ||||||||
exchanged to Class A Ordinary Shares | 9,261,300 | $ 9,261,300 | |||||||
Acquisition of non-controlling interests | (170,324) | (180,784) | 10,460 | ||||||
Sale of equity interests in a subsidiary to non-controlling interests | 595,482 | 2,757 | 592,725 | ||||||
Issuance of ordinary shares upon Initial Public Offering (“IPO”) and over-allotment option, net of cost of issuance (Note 18) | 35,020,614 | $ 187 | 35,020,427 | ||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and over-allotment option, net of cost of issuance (Note 18), shares | 18,700,000 | ||||||||
Foreign currency translation adjustment, net of nil tax | (887,407) | (844,266) | (43,141) | ||||||
Net income | 1,934,898 | 2,296,555 | (361,657) | ||||||
Balances at Dec. 31, 2019 | $ 84,690,448 | $ 635 | $ 752 | $ 105,944,278 | $ (2,264,635) | $ (19,556,137) | $ 565,555 | ||
Balance, shares at Dec. 31, 2019 | 63,567,099 | 75,150,400 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 1,934,898 | $ 6,149,867 | $ 2,723,638 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 996,715 | 605,578 | 505,828 |
Provision for allowance of doubtful accounts | 93,737 | 61,959 | 66,630 |
Inventory write down | 1,194,496 | 639,679 | 1,211,131 |
Deferred tax (expenses)/benefit | 192,741 | (1,086,380) | (144,092) |
Share-based compensation | 1,575,029 | 356,549 | |
Amortization of right-of-use asset and interest of lease liabilities | 1,636,237 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (17,164,688) | (23,245,962) | 269,686 |
Inventory | 2,497,477 | (37,639,680) | (9,737,761) |
Prepayments and other current assets | (11,008,829) | (7,701,073) | 2,283,341 |
Other non-current assets | (374,253) | 347,501 | (813,825) |
Accounts payable | 3,648,039 | 12,364,048 | 1,405,523 |
Amount due to related parties | 488,186 | 561,907 | 225,152 |
Advance from customers | (1,911,843) | 2,341,006 | (709,079) |
Tax payable | 177,502 | 1,207,501 | 1,098,265 |
Salary and welfare payable | (1,058,214) | 952,748 | 79,745 |
Operating lease liabilities, current | (1,494,644) | ||
Accrued liabilities and other current liabilities | 4,498,900 | 3,471,502 | (1,157,860) |
Other non-current liabilities | (110,431) | (142,266) | 249,821 |
Net cash used in operating activities | (14,188,945) | (40,755,516) | (2,443,857) |
Cash flows from investing activities: | |||
Payments for acquisition of business license | (122,854) | (172,936) | |
Purchases of property and equipment | (557,627) | (1,423,064) | (52,477) |
Payments for software procurement | (255,380) | (201,866) | (282,811) |
Net cash used in investing activities | (813,007) | (1,747,784) | (508,224) |
Cash flows from financing activities: | |||
Cash payments for acquisition of equity interests of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) | (4,261,580) | (14,475,846) | |
Subscription fees received from the Founders of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) | 9,261,300 | 6,000,376 | |
Subscription fees received from the Round A and Round B Investors of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) | 89,222 | 3,386,528 | |
Cash receipts from issuance of Series A Convertible Redeemable Preferred Shares, net of issuance costs (Note 16) | 22,429,967 | ||
Proceeds from borrowings | 50,434,437 | 41,529,327 | 4,819,106 |
Repayments of borrowings | (37,295,468) | (23,469,501) | (5,233,691) |
Cash received from maturity of loan deposits (Note 8) | 861,268 | ||
Cash payment for loan deposits (Note 8) | (854,188) | (437,114) | |
Contribution from non-controlling interests shareholders | 29,196 | 104,159 | |
Payment for acquisition of non-controlling interests | (170,324) | ||
Payment for acquisition of redeemable non-controlling interests (Note 17) | (2,215,392) | ||
Proceeds from issuance of ordinary shares upon Initial Public Offering and over-allotment option, net of payment of cost of issuance/(Payment of Initial Public Offering costs) | 35,020,614 | (522,072) | |
Capital injection from non-controlling interests shareholders | 595,482 | 16,235 | |
Proceeds of borrowings from related parties | 4,000,000 | 3,000,000 | 3,000,000 |
Proceeds of advances from related parties | 9,436,151 | 8,964,847 | 15,304 |
Repayment of advances to related parties | (10,593,662) | (2,474,371) | (1,033,740) |
Net cash provided by financing activities | 54,337,056 | 44,036,300 | 1,583,214 |
Effects of exchange rate changes on cash and cash equivalents | (1,201,068) | 742,397 | (20,479) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 38,134,036 | 2,275,397 | (1,389,346) |
Cash, cash equivalents and restricted cash at beginning of year | 12,964,859 | 10,689,462 | 12,078,808 |
Cash, cash equivalents and restricted cash at end of year | 51,098,895 | 12,964,859 | 10,689,462 |
Supplemental disclosure of cash flow information: | |||
Interests paid | (2,531,209) | (445,689) | (165,001) |
Non-cash financing and investing activities | |||
Accretion to redemption value of convertible redeemable preferred shares | 1,022,461 | 3,038,407 | 3,972,281 |
Accretion to redemption value of redeemable non-controlling interests | 311,757 | 129,896 | |
Extinguishment of convertible redeemable preferred shares (Note 16) | 24,763,245 | ||
Capital contribution from non-controlling interests shareholders (Note 13) | 107,129 | ||
Subscription receivables due from Founders of ECMOHO Shanghai for Reorganization purpose (Note 24) | 9,261,300 | ||
Subscription receivables due from Round B Investor of ECMOHO Shanghai for Reorganization purpose (Note 24) | 89,222 | ||
Payables due to shareholders of ECMOHO Shanghai for Reorganization purpose (Note 24) | $ (4,261,580) | ||
Payables for assets and business acquisition (Note 14) | $ (168,766) | ||
Payables for the acquisition of redeemable non-controlling interests (Note 17) | $ (3,120,583) |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. (a) Ecmoho Limited (the “Company”), an exempted company with limited liability incorporated in the Cayman Islands, together with (i) its various equity-owned consolidated subsidiaries, (ii) its controlled affiliate Shanghai Yibo Medical Device Co., Ltd (“Yibo or Yibo VIE”) and Yang Infinity (Shanghai) Biotechnology Co., Limited (“Yang or Yang VIE”) and Yang VIE’s subsidiary are collectively referred to as the “Group”. The Company serves as an investment holding company with no operations of its own. The Group is primarily engaged in e-commerce business and sells products to consumers and retailers. The Group also provides services including online store operating services, promotion and marketing services to its brand partners and other brand customers. As of December 31, 2019, the Company’s principal subsidiaries and VIEs are as follows: Name of subsidiaries and VIEs Date of establishment/acquisition Place of incorporation Percentage of direct or indirect ownership Principle activities Subsidiaries of the Company: ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) Established on June 27, 2018 Hong Kong 100.00 % Investment holding Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) Established on December 23, 2011 PRC 100.00 % Product sales and services Jianyikang Health Technology (Shanghai) Co., Limited Established on May 21, 2018 PRC 100.00 % Product sales Ecmoho (Hong Kong) Limited Established on April 1, 2015 Hong Kong 100.00 % Product sales and services Import It Corp. Established on September 4, 2012 BVI 100.00 % Product sales and services Shanghai Tonggou Information Technology Co., Limited Established on May 20, 2013 PRC 100.00 % Product sales and services Yijiasancan (Shanghai) E-commerce Co., Ltd. Established on August 21, 2013 PRC 100.00 % Product sales and services Shanghai Hengshoutang Health Technology Co., Limited Established on April 11, 2016 PRC 70.00 % Product sales Qinghai Hengshoutang Plateau Medicine Co., Limited Acquired on March 21, 2017 PRC 70.00 % Product sales Shanghai Jieshi Technology Co., Limited Acquired on December 16, 2016 PRC 100.00 % Product sales Shanghai ECMOHO Health Technology Co., Limited Established on May 5, 2015 PRC 100.00 % Product sales Hangzhou Duoduo Supply Chain Management Co., Limited Acquired on April 25, 2017 PRC 100.00 % Bonded area warehousing ECMOHO Co., Ltd. (Korea) Established on August 27, 2018 Korea 100.00 % Product sales Yi Ling (Shanghai) Information Technology Co., Limited Established on August 30, 2018 PRC 100.00 % Intercompany services Xianggui (Shanghai) Biotechnology Co., Ltd. Established on September 28, 2018 PRC 60.00 % Product sales and services Shanghai Yuyun Information Technology Co., Ltd. Established on October 15, 2018 PRC 100.00 % Startup Yipinda (Shanghai) Health Technology Co., Ltd. Established on February 27, 2019 PRC 100.00 % Product sales ECMOHO Co., Ltd. (Japan) Established on July 15, 2016 Japan 100.00 % Inactive Variable Interest Entity (“VIE”): Shanghai Yibo Medical Device Co., Ltd (“Yibo or Yibo VIE”)* Established on April 21, 2017 PRC 100.00 % Operates the Company’s own online e-commerce platform Yang Infinity (Shanghai) Biotechnology Co., Limited (“Yang or Yang VIE”) Established on November 15, 2018 PRC 60.00 % Product sales Subsidiary of Variable Interest Entity (“VIE subsidiary”): Yinchuan Xianggui Internet Hospital Co., Ltd Established on May 17, 2019 PRC 60.00 % Product sales (b) The Group commenced its operations in December 2011 through ECMOHO Shanghai, a People's Republic of China ("the PRC") company established by Ms. Zoe Wang and Mr. Leo Zeng, who are in spousal relationship (collectively known as “the Founders”). In 2015 and 2016, ECMOHO Shanghai offered 19% and 12% of its equity interests with preferential rights to Round A and Round B Investors with the consideration of US$ 13,081,880 and US$ 24,000,000, respectively (Note 16). In April 2018, one of the Round A Investors (“Exit Investor”) sold all its 8.36% equity interest with preferential rights to the Founders for cash (Note 16). To facilitate offshore financing, an offshore corporate structure was formed in August 2018 (the “Reorganization”), which was carried out as follows: 1) In June 2018, the Company was incorporated in the Cayman Islands by the Founders. 2) In June 2018, ECMOHO HK was incorporated in Hong Kong with 100% ownership by the Company. 3) In July 2018, ECMOHO HK legally acquired 97.5% of the equity interest of ECMOHO Shanghai from the Founders and most of the Investors, except for 2.5% equity interests held by certain of the Investors (“NCI holders”), with the cash consideration of US$ 18,737,426. Such consideration shall be used by these Founders and Investors to subscribe ordinary shares and preferred shares of the Company to exchange its equity interests of ECMOHO Shanghai for Reorganization purpose. As of December 31, 2018, consideration of US$14,475,846 has been paid, and consideration of US$ 4,261,580 remained outstanding and was presented as amounts due to related parties on the consolidated balance sheets. The remaining consideration of US$ 4,261,580 was fully paid in 2019. 4) In August 2018, the Founders subscribed 9,519,000 Class A Ordinary Shares and 75,150,400 Class B Ordinary Shares of the Company with the cash consideration of US$ 15,261,676 (part of the above mentioned cash consideration of US$ 18,737,426), in the same proportions as the percentage of equity interest they held in ECMOHO Shanghai before the Reorganization. As of December 31, 2018, consideration of US$ 6,000,376 has been received, and consideration of US$ 9,261,300 remained outstanding and was presented as subscriptions receivable, a contra-equity balance on the consolidated balance sheets. The remaining consideration of US$ 9,261,300 was fully received in 2019. The 9,519,000 Class A Ordinary Shares were in connection with the 8.36% equity interests the Founder purchased from the Exit Investor. The Founders gave up the preferential rights associated with the equity interests simultaneously with the issuance of such Class A Ordinary Shares (Note 16). In August 2018, the Founders sold 8,880,894 out of the 9,519,000 Class A Ordinary Shares to third party investors (Note 18). 5) In September 2018, the Round A and Round B Investors, except for the NCI holders, subscribed for 9,519,000 10,817,000 The Reorganization was a recapitalization with no substantial changes in the shareholding of the Company. Therefore, it was accounted for using historical costs with assets and liabilities reflected at carryover basis. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods. (c) To comply with the relevant PRC laws and regulations, the Company operates its internet-based business in which foreign investment is restricted or prohibited through its Yibo VIE. To provide the Company the control of the Yibo VIE, ECMOHO Shanghai entered into a series of contractual arrangements with the Yibo VIE or its equity holders as follows: Exclusive Technology Consulting and Service Agreement Under the exclusive technology consulting and service agreement between ECMOHO Shanghai and Yibo VIE, ECMOHO Shanghai has the exclusive right to provide to Yibo VIE consulting and services related to, among other things, research and development, system operation, advertising, internal training and technical support. ECMOHO Shanghai has the exclusive ownership of intellectual property rights created as a result of the performance of this agreement. In exchange, Yibo VIE agrees to pay ECMOHO Shanghai an annual service fee, at an amount that is agreed by ECMOHO Shanghai. Unless ECMOHO Shanghai provides valid notice of termination 90 days prior to the term of agreement ending, this agreement will remain effective for 10-years to be automatically renewed for another 10 years thereafter. Powers of Attorney The shareholders of Yibo VIE, have each executed a power of attorney to irrevocably appoint ECMOHO Shanghai or its designated person as their attorney-in-fact to exercise all of their rights as shareholders of Yibo VIE, including, but not limited to, the right to convene and attend shareholder meetings, vote on any resolution that requires a shareholder vote, such as the appointment or removal of directors and executive officers, and other voting rights pursuant to the then-effective articles of association of Yibo VIE. The power of attorney will remain in force for so long as the controlling shareholders remain the shareholders of Yibo VIE. Equity Pledge Agreement Pursuant to the equity pledge agreement among ECMOHO Shanghai, Yibo VIE, and the shareholders of Yibo VIE, the shareholders pledged all of their equity interests in Yibo VIE to guarantee their and Yibo VIE’s performance of their obligations under the contractual arrangements including the exclusive technology consulting and service agreement, the exclusive option agreement and the power of attorney. In the event of a breach by Yibo VIE or its shareholders of contractual obligations under these agreements, ECMOHO Shanghai, as pledgee, will have the right to dispose of the pledged equity interests in Yibo VIE. The shareholders of Yibo VIE also undertake that, during the term of the equity pledge agreement, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests. During the term of the equity pledge agreement, ECMOHO Shanghai has the right to receive all of the dividends and profits distributed on the pledged equity interests. As of the date of this prospectus, the equity pledge for the Company’s variable interest equity has been registered with local PRC authorities. Spousal Consent Letters Pursuant to the spousal consent letter, each of the respective spouse of the shareholders of Yibo VIE, unconditionally and irrevocably agreed that the equity interest in Yibo VIE held by and registered in the name of his/her spouse will be disposed of pursuant to the equity pledge agreement, the exclusive call option agreement and the power of attorney. The spouse agreed not to assert any rights over the equity interest in Yibo VIE held by his/her spouse. In addition, in the event that the spouse obtains any equity interest in Yibo VIE held by his/her spouse for any reason, the spouse agreed to be bound by the contractual arrangements. Exclusive Call Option Agreement Pursuant to the exclusive call option agreement between ECMOHO Shanghai, Yibo VIE and its shareholders, the shareholders of Yibo VIE irrevocably grant ECMOHO Shanghai an exclusive option to purchase, at its discretion, or have its designated person to purchase, to the extent permitted under PRC law, all or part of the equity interests in Yibo VIE. The purchase price shall be the lowest price permitted by applicable PRC law. In addition, Yibo VIE has granted ECMOHO Shanghai an exclusive option to purchase, at its discretion, or have its designated person to purchase, to the extent permitted under PRC law, all or part of Yibo VIE’s assets at the book value of such assets, or at the lowest price permitted by applicable PRC law, whichever is higher. The shareholders of Yibo VIE undertake that, without the Company’s prior written consent or the prior written consent of ECMOHO Shanghai, they may not increase or decrease the registered capital, dispose of its assets, incur any debt or guarantee liabilities, enter into any material purchase agreements, conduct any merger, acquisition or investments, amend its articles of association or provide any loans to third parties. The exclusive call option agreement will remain effective until all equity interest in Yibo VIE held by its shareholders and all assets of Yibo VIE are transferred or assigned to ECMOHO Shanghai or its designated representatives. Yibo VIE, under Generally Accepted Accounting Principles in the United States (“US GAAP”), is considered to be a consolidated VIE in which the Company, or its subsidiaries, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or one of its subsidiaries is the primary beneficiary of the entity. Through the aforementioned contractual agreements, the Company has the ability to: • exercise control over Yibo VIE whereby having the power to direct Yibo VIE’s activities that most significantly drive the economic results of Yibo VIE; • receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from the Yibo VIE as if it was their sole shareholder; and • have an exclusive option to purchase all of the equity interests in Yibo VIE. In June 2019, Yang VIE entered into the VIE Agreements, including Exclusive Technology Support and Consulting Services Agreement, Powers of Attorney, Equity Pledge Agreement, Spousal Consent Letters and Exclusive Call Option Agreement which contain terms substantially similar to those entered into between Yibo VIE and ECMOHO Shanghai in 2018. Management therefore concluded that the Company, through the above contractual arrangements, has the power to direct the activities that most significantly impact the VIEs’ economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs, and therefore the Company is the ultimate primary beneficiary of the VIEs. Consequently, the financial results of the VIEs were included in the Group’s consolidated financial statements. The following table sets forth the assets, liabilities, results of operations and cash flows of VIEs and its subsidiary, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and VIE subsidiary are eliminated in the balances presented below: As of December 31, 2018 2019 US$ US$ Assets Current assets Cash and cash equivalents 11,092 61,456 Amount due from subsidiaries of the Company 21,856 720,588 Inventory — 6,608 Prepayments and other current assets 1,899 — Total current assets 34,847 788,652 Total assets 34,847 788,652 Liabilities Current liabilities Salary and welfare payable 39,585 21,695 Accounts payable — 26,485 Advance from customers — 1,816 Tax payable 1,848 1,010 Amount due to subsidiaries of the Company 399,735 105,342 Accrued liabilities and other current liabilities 8,781 7,238 Total current liabilities 449,949 163,586 Total liabilities 449,949 163,586 Year Ended December 31, 2018 2019 US$ US$ Net revenues 21,384 29,122 Net losses (430,519) (544,953) Year Ended December 31, 2018 2019 US$ US$ Net cash provided by/(used in) operating activities 11,092 (434,616) Net cash provided by financing activities — 484,980 Net increase in cash and cash equivalents 11,092 50,364 In accordance with the aforementioned VIE agreements, the Company has power to direct activities of the VIEs, and can have assets transferred out of VIEs. Therefore, the Company considers that there is no asset in VIEs that can be used only to settle obligations of the VIEs, except for registered capital, as of December 31, 2018 and 2019. As the VIEs and their subsidiaries were incorporated as limited liability Company under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of the VIEs. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting certain businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. There is no VIE where the Company has variable interest but is not the primary beneficiary. The Group believes that the contractual arrangements among its shareholders and ECMOHO Shanghai comply with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders of the VIEs were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms. The Company’s ability to control the VIEs also depends on the voting rights proxy and the effect of the share pledge under the Equity Pledge Agreement and ECMOHO Shanghai has to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this voting right proxy is legally enforceable but may not be as effective as direct equity ownership. |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies | 2. (a) The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Reorganization was a recapitalization with no substantial changes in the shareholding of the Company. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. (b) The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, its VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, through contractual agreements, has the power to direct activities of, (c) The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company believes that revenue recognition, sales return, sales incentive, inventory write-down, rebates, realization of deferred tax assets, assessment for useful life and impairment of long-lived assets, allowance for doubtful accounts, and valuation of ordinary shares and preferred shares requires significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. On an ongoing basis, management evaluates its estimates based on information that is currently available. Changes in circumstances, facts and experience may cause the Company to revise its estimates. Changes in estimates are recorded in the period in which they become known. Actual results could materially differ from these estimates. (d) The Group uses United States dollars ("US$" or "USD") Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are translated at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income as foreign exchange related gains. The financial statements of the Group’s entities using functional currency other than US$ are translated from the functional currency to the reporting currency, US$. Assets and liabilities of the Group’s subsidiaries incorporated in PRC are translated into US$ at balance sheet date exchange rates, Income and expense items are translated at average exchange rates prevailing during the fiscal year, representing the index rates stipulated by the People’s Bank of China. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as accumulated other comprehensive income/(loss) on the consolidated financial statement. The exchange rates used for translation on December 31, 2018 and 2019 were US$1.00=RMB 6.8632 and US$1.00=RMB 6.9762, respectively, representing the index rates stipulated by the People’s Bank of China. (e) Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Group’s financial instruments consist principally of cash and cash equivalents , restricted cash, As of December 31, 2018 and 2019, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, deposits, loan deposits, accounts payable, operating lease liabilities, accrued liabilities and other current liabilities, short-term borrowings, amounts due to related parties and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. (f) Cash and cash equivalents include cash in bank and time deposits placed with banks, other financial institutions and third party payment processors Restricted cash mainly represents secured deposits held in designated bank accounts for drawdown of bank loans. Cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on the consolidated balance sheet as follows: As of December 31, 2017 2018 2019 US$ US$ US$ Cash and cash equivalents 10,689,462 10,336,467 49,098,841 Restricted cash - 2,628,392 2,000,054 Total 10,689,462 12,964,859 51,098,895 (g) Accounts receivable are presented net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. (h) I Inventories are stated at the lower of cost or market. Cost is determined using the weighted average method. Provisions are made for excessive, slow moving, expired and obsolete inventories as well as for inventories with carrying values in excess of market. Certain factors could impact the realizable value of inventory, so the Group continually evaluates the recoverability based on assumptions about customer demand and market conditions. The evaluation may take into consideration historical usage, inventory aging, expiration date, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, and other factors. The reserve or write-down is equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves or write-downs may be required that could negatively impact the Group’s gross margin and operating results. If actual market conditions are more favorable, the Group may have higher gross margin when products that have been previously reserved or written down are eventually sold. (i) Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the following estimated useful lives, taking into account any estimated residual value. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. The estimated useful lives and residual rates are as follows: Classification Useful years Residual rate Warehouse equipment 3 years 5% Furniture, computer and office equipment 2 - 5 years 0%-5% Leasehold improvement Over the shorter of the expected life of leasehold improvements or the lease term 0% Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. (j) I Software purchased from third parties are initially recorded at cost and amortized on a straight-line basis over the shorter of the useful economic lives or stipulated period in the contract, which is usually 5 years. Other separately identifiable intangible assets that have finite lives and continue to be amortized consist primarily of trademark and business license purchased from third parties in the years of 2017, 2018 and 2019. The Company amortizes these intangible assets on a straight-line basis over their estimated useful lives, which are 5 to 10 years. The estimated life of amortized intangibles is reassessed if circumstances occur that indicate the life has changed. (k) For long-lived assets including property and equipment, intangible assets and other non-current assets, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. (l) Certain third party customers pay in advance to purchase product goods. Cash proceeds received from customers are initially recorded as advances from customers and are recognized as revenues when revenue recognition criteria are met. (m) Deferred equity offering costs The Company capitalizes certain legal, professional accounting and other third-party fees that are incremental and directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of an equity financing, these costs are recorded in shareholders' (deficit)/equity as a reduction of additional paid-in capital generated as a result of the offering. Should the in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the consolidated statements of comprehensive income. As of December 31, 2018 and 2019, deferred offering costs of US$ 522,072 and nil were recorded in the consolidated balance sheet (Note 12). (n) Mezzanine equity Mezzanine equity represents the Round A, Round B, Class A-1, Class A-2 and Series A convertible redeemable preferred shares (collectively known as “Preferred Shares”) issued by the Company as well as redeemable non-controlling interests. Preferred Shares are redeemable at the holders' option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Company's control. Therefore, the Group classifies the Preferred Shares as mezzanine equity (Note 16). Redeemable non-controlling interests are redeemable at the holders' option under certain events, which are not solely within the control of the Company, and are recorded and accounted for outside of permanent equity (o) Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") and subsequently, the FASB issued several amendments which amends certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as "ASC 606"). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group adopted ASC 606 for all periods presented. Consistent with the criteria of Topic 606, the Group follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group’s revenues are primarily derived from (i) product sales and (ii) services including online store operating services, promotion and marketing services to its brand partners and other brand customers. Refer to Note 19 to the consolidated financial statements for disaggregation of the Group's revenue for the years ended December 31, 2017, 2018 and 2019. When either party to a contract has performed, the Group presents the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. A contract asset is recorded when the Group has transferred products or services to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance or other factors in the contract. No contract asset was recorded as at December 31, 2018 and 2019. If the Group recognizes a receivable before it transfers products to the customer, the Group will defer revenue, which is also defined as a contract liability under the new revenue guidance. A contract liability is recorded when the Group’s obligation to transfer goods or services to a customer has not yet occurred but for which the Group has received consideration from the customer. The Group presents such amounts as advances from customers on the consolidated balance sheet. Product Sales The Group selects, purchases and obtains direct control of the goods from its brand partners and/or their authorized distributors and sells goods directly to end consumers through online stores its operates or to secondary distributors in accordance with distribution agreements. Revenue is recognized when consumers or secondary distributors physically accept the products after delivery, which is when the control of products is transferred, and is recorded net of return allowances, value added tax and sales incentives, if any. A majority of the Group’s consumers make online payments through third-party payment platforms when they place orders on the Group’s online stores. The funds will not be released to the Group by these third-party payment platforms until the consumers accept the products on the online platform. Shipping and handling charges paid by customers are included in net revenues. The Group typically does not charge shipping fees on orders exceeding a certain sale amount. Shipping and handling costs incurred by the Group are considered to be fulfillment activities which are presented as part of the Group’s operating expenses. Product Sales Consignment arrangement The Group also enters into arrangement with online platforms, where the Group retains control over the goods until a sale is made to the end consumer. The Group considers the arrangement meet the indicators of consignment arrangement under ASC 606-10-55-80, because (i) The Group does not relinquish control of the products, even though the online platform has physical possession of the goods. The products are considered to be the Group’s own inventory until they are sold to the end consumers; (ii) The Group retains the right to require the return of the goods held with the online platform; (iii) The online platforms have no obligation to pay for the products that are in its physical possession. Revenue under consignment arrangements is recognized when a sale is made to the end customer and control is transferred to the end customer upon their acceptance in accordance with the sales report provided by the online platforms. Such revenues reflect the consideration paid by end consumers and do not take into account the sales commissions the Group pays to the relevant online platform, which are recorded as sales and marketing expenses. Services The Group offers its brand partners and other brand customers marketing solutions tailored to their needs and charge fixed project-based fees, including designing and operating online stores, running online promotional events, organizing online and offline marketing campaigns featuring social media influencers and circulating marketing messages to end consumers. For services provided to customers of the Group, depending on the terms of the contract and the laws that apply to the contract, control of the services may be transferred over time or at a point in time. Control of the services is transferred over time if the Group’s performance: • provides all of the benefits received and consumed simultaneously by the customer; • creates and enhances an asset that the customer controls as the Group performs; or • does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of the services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of services. With respect to the Group’s marketing services, length of the periods over which services are provided are generally within months or less, the Group recognizes such revenues when service is rendered and service report is delivered to the customer (point in time), which marks the time when control of the service output has passed to the customer. Consideration from brand partners of the Group is considered to be in exchange for distinct service that the Group transfers to the brand partners, as i) services provided to brand partners can be sufficiently separable from the Company’s procurement of products from those brand partners ii) consideration from the brand partner represents the standalone selling price of such service, and iii) the fees do not represent reimbursement of costs incurred by the Company to sell the brand partner’s products. The Group accounts for the service in the same way that it accounts for sales to other customers and revenues generated from these service arrangements are recognized on a gross basis and presented as services revenue on the consolidated statements of comprehensive income. Practical expedients and exemption Upon the election of the practical expedient under ASC 340-40-25-4, the incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. For the years ended December 31, 2017, 2018 and 2019, no incremental cost was capitalized as assets. The Group also selected to apply the practical expedients allowed under ASC Topic 606 to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less. For the years ended December 31, 2017, 2018 and 2019, all contracts of the Group were with an original expected duration within one year. Based on the considerations that there is no difference between the amount of promised consideration and the cash selling price of product sales and promised services, in addition the actual length of time between when the Group transfers products or promised services to the consumers and when the consumers pays for those products or services has been within one year, the Group has assessed and concluded that there is no significant financing component in place within its products sales or service arrangements as a practical expedient in accordance with ASC 606-10-32-18. (p) Sales returns The Group offers online consumers an unconditional right of return for a period of seven days upon receipt of products and offers its secondary distributors various rights of return after the acceptance of products. Return allowances, which reduce revenue and cost of sales, are estimated by categories of return policies offered to online customers and secondary distributors, based on historical data the Group has maintained, and subject to adjustments to the extent that actual returns differ or are expected to differ. The Group records liabilities for return allowances in refund obligation of sales returns of “Accrued liabilities and other current liabilities” in the consolidated balance sheet (Note 14) and were US$ 858,536 and US$ 2,422,155 as of December 31, 2018 and 2019, respectively. The Group recorded assets as “Sales return assets” included in “Prepayments and other current assets” in the consolidated balance sheet (Note 8) of US$ 639,846 and US$ 1,802,499 as of December 31, 2018 and 2019 for its right to recover products from customers associated with settling the refund liability. (q) Sales incentives The Group provides sales rebates to certain third-party online platforms/secondary distributors based on their purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to the third-party online platforms/secondary distributors considering the contracted rebate rates and estimated sales volume based on significant management judgments based on historical experience such as likelihood of reaching the purchase thresholds and sales forecasts, and account for it as a reduction of the transaction price. For the years ended December 31, 2017, 2018 and 2019, sales rebates provided by the Group amounted to US$ 929,339, US$ 2,509,679 and US$ 4,839,595 respectively. (r) Value added taxes Value added taxes ("VAT") on sales is calculated at 9% ~16% on revenue from products and 6% on revenue provided from services. The Group reports revenue net of VAT. Subsidiaries and VIEs of the Group that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. (s) Cost of revenue consist of cost of product sales of US$ 68,262,115, US$ 128,845,948 and US$ 242,972,621 for the years ended December 31, 2017, 2018 and 2019, respectively, and cost of services of US$ 861,932, US$ 11,307,514 and US$ 14,458,453 for the years ended December 31, 2017, 2018 and 2019, respectively. Cost of product sales comprise the purchase price of products, purchase rebates, shipping charges to receive products from the suppliers when they are embedded in the purchase price and inventory write-downs. Cost of products does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses. Cost of service consists of the advertising and promotion costs, employee wages and benefits in connection with the Group’s provision of promotion and marketing services including fees the Group paid to third party vendors for advertising and promotion on various online and offline channels. (t) R The Group periodically receives consideration from certain vendors, representing rebates for products sold over a period of time. The Group accounts for the rebates received from its vendors as a reduction to the price it pays for the products purchased. Rebates are earned based on reaching minimum purchased thresholds for a specified period. When volume rebates can be reasonably estimated based on the Group’s past experience, current forecasts and purchase volume, a portion of the rebate is recognized as the Group makes progress towards the purchase threshold. (u) Fulfillment expenses Fulfillment costs primarily represent warehousing, shipping and handling expenses for dispatching and delivering products to consumers, employee wages and benefits for the relevant personnel, and customs clearance expenses. (v) Sales and marketing expenses primarily consist of advertising costs for the products the Group offers, employee wages and benefits for sales and marketing staff, storefront fees paid to e-commerce platforms, and travel and entertainment expenses. Advertising costs consist primarily of costs for product marketing. The Group expenses all advertising costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2017, 2018 and 2019, advertising and marketing costs totaled US$ 445,256, US$ 573,272 and US$ 560,894, respectively. (w) General and administrative expenses consist of employee wages and benefits for corporate employees, rental expenses, audit and legal fees, amortization of both intangible assets and leasehold improvement, and other corporate overhead costs. (x) Research and development expenses primarily consist of employee wages and benefits for research and development personnel, general expenses and depreciation expenses associated with research and development activities. (y) - Leases, including leases of offices and warehouses, where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are recognized as an expense on a straight-line basis over the lease term. The Group had no capital leases for any of the years stated herein. - The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) elect for each lease not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component; (ii) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements; and (iii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs. (z) Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. (aa) Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statements recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under other expenses in its statements of operations and comprehe |
Risks and Concentration
Risks and Concentration | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Risks and Concentration | 3. (a) The Group’s sales, purchase and expense transactions in domestic subsidiaries are generally denominated in RMB and a significant portion of the Group’s assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China. In addition, the Group’s cash denominated in US$ subject the Group to risks associated with changes in the exchange rate of RMB against US$ and may affect the Group’s results of operations going forward. (b) The Group’s credit risk arises from cash and cash equivalents, restricted cash, prepayments and other current assets, and accounts receivable. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The Group expects that there is no significant credit risk associated with the cash and cash equivalents and restricted cash which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentrations of credit risk with respect to its prepayments. Accounts receivable are typically unsecured and are derived from revenue earned through third party consumers. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them. (i) Concentration of revenues For the years ended December 31, 2017, 2018 and 2019, Customer A contributed 14%, 17% and 19% of total net revenue of the Group, respectively. For the years ended December 31, 2019, Customer C contributed 12% of total net revenue of the Group. For the years ended December 31, 2017, 2018 and 2019, the Group, as a principal, earned net revenue, representing 52%, 34% and 23% of its total net revenue, respectively, through a third party online platform. (ii) Concentration of accounts receivable The Group has not experienced any significant recoverability issue with respect to its accounts receivables. The Group conducts credit evaluations on the third party consumers and generally does not require collateral or other security from such consumers. The Group periodically evaluates the creditworthiness of the existing online platforms and distributors in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. The following table summarized customers with greater than 10% of the accounts receivables: Year Ended December 31, 2018 2019 Customer A 14 % 24 % Customer B 31 % 23 % |
Significant Equity Transactions
Significant Equity Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Significant Equity Transactions [Abstract] | |
Significant Equity Transactions | 4. Initial public offering In November 2019, the Company completed its initial public offering on the NASDAQ Global Select Market of 4,675,000 American Depositary Shares (“ADS”) (including 300,000 ADSs sold upon the exercise of the underwriters’ over-allotment option) (every ADS represents four Class A ordinary shares, for a total ordinary shares offering of 18,700,000 shares). The net proceeds raised from the IPO amounted to approximately US$35.0 million after deducting underwriting discounts and commissions and other offering expenses. Upon the completion of the IPO, 9,519,000 Class A-1 and 10,817,100 Class A-2 preferred shares were converted and designated as 20,336,100 Class A ordinary shares on a one-for-one basis, and 7,938,915 Series A preferred shares were converted and designated as 8,999,999 Class A ordinary shares on an average basis of 1-for-1.13 due to the adjustment of initial conversion ratio in accordance with the terms of Series A preferred shares. In respect of all matters subject to shareholders’ vote, each holder of Class A ordinary share is entitled to one and each holder of Class B ordinary share is entitled to ten votes. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5 . Cash and cash equivalents represent cash on hand and demand deposits placed with banks, other financial institutions and third party payment processors US$ US$ equivalent (RMB) US$ Equivalent (Others) Total in US$ Overseas PRC Overseas PRC Overseas PRC Non VIE VIE Non VIE VIE Non VIE VIE December 31, 2018 3,324,971 359,796 - 1,037,629 3,690,184 11,092 1,912,795 - - 10,336,467 December 31, 2019 44,865,166 103,214 - 997,219 2,177,509 61,456 894,277 - - 49,098,841 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 6 . As of December 31, 2018 2019 US$ US$ Accounts receivable, gross 33,979,863 50,063,491 Less: allowance for doubtful accounts (140,335 ) (234,072 ) Accounts receivable, net 33,839,528 49,829,419 Movement of allowance of doubtful accounts Year ended December 31, 2017 2018 2019 US$ US$ US$ At beginning of period 11,746 78,376 140,335 Addition 79,068 114,913 483,130 Reversal (12,438) (52,954 ) (389,393 ) At end of period 78,376 140,335 234,072 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 7 . Inventories consist of the following: As of December 31, 2018 2019 US$ US$ Products 53,628,508 49,621,935 Packaging materials and others 54,883 272,579 Total 53,683,391 49,894,514 Inventories write-down are recorded in cost of product sale in the consolidated statement of comprehensive income, which were US$ 1,211,131, US$ 639,679 and US$ 1,194,496 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense And Other Assets [Abstract] | |
Prepayments and Other Current Assets | 8 . The prepayments and other current assets consist of the following: As of December 31, 2018 2019 US$ US$ Prepayments for products procurement (a) 7,645,974 11,445,152 Prepayments for service procurement (b) 17,761 2,102,793 Prepaid online platform promotion fees (c) 493,418 1,131,082 Deposits 1,355,401 1,531,033 Loan deposits (Note 13) 437,114 430,034 Value-added tax (“VAT”) recoverable (d) 60,369 2,354,309 Employee advances (e) 49,550 85,495 Rental prepayments 157,046 107,521 Sales return assets 639,846 1,802,499 Others (f) 402,931 376,344 Total 11,259,410 21,366,262 (a) Prepayments for products procurement represent cash prepaid to the Group’s third party brand partners for the procurement of products. (b) Prepayments for service procurement represent cash prepaid to the Group’s third party suppliers for the procurement of services in connection with the Group’s service revenue. These services have not been rendered and will be provided within one year from the respective balance sheet dates. (c) Prepaid promotion fees represent prepayments made to online platforms for future services to promote the Group’s products through online advertising. Such online platforms charge monthly expenses based on activities during the month, and once confirmed by the Group, the monthly expenses will be deducted from the prepayments made by the Group. (d) Value-added tax recoverable represented the balances that the Group can utilize to deduct its value-added tax liabilities within the next 12 months. (e) As of December 31, 2018 and 2019, all of the employee advances were business related, interest-free, not collateralized and will be repaid or settled within one year from the respective balance sheet dates. (f) Others mainly represent prepayments made by the Group to certain of its logistic service providers. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 9 . Property and equipment consist of the following: As of December 31, 2018 2019 US$ US$ Cost: Warehouse equipment 952,104 983,218 Furniture and office equipment 647,752 885,327 Leasehold improvements 385,726 614,302 Total cost 1,985,582 2,482,847 Less: Accumulated depreciation (509,070 ) (1,053,868 ) Property and equipment, net 1,476,512 1,428,979 Depreciation expense recognized for the years ended December 31, 2017, 2018 and 2019 were US$ 149,355, US$ 185,969 and US$ 559,063, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 10. The Company leases facilities under non-cancellable operating leases expiring on different dates. The terms of substantially all of these leases are two years or less. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. All of the Company’s leases qualify as operating leases. With the adoption of the new leasing standard, the Company has recorded a right-of-use asset and corresponding lease liability, by calculating the present value of future lease payments, discounted at 6.2%, the Company’s incremental borrowing rate, over the expected term. Variable lease cost and short-term leases (lease terms less than 12 months) are recognized as incurred. (a) The components of lease expenses were as follows: Year ended December 31, 2019 US$ Lease cost: Amortization of right-of-use assets 1,529,913 Interest of lease liabilities 106,324 Expenses for short-term lease within 12 months 187,741 Total lease cost 1,823,978 (b) Supplemental cash flow information related to leases was as follows: Year ended December 31, 2019 US$ Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases 1,494,644 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities 680,773 (c) Supplemental balance sheet information related to leases was as follows: December 31, 2019 US$ Operating Leases Operating lease right-of-use assets 1,203,961 Operating lease liability, current (1,052,046 ) Operating lease liabilities, non-current (69,347 ) Total operating lease liabilities (1,121,393 ) December 31, 2019 Weighted-average remaining lease term Operating leases 1.01 years Weighted-average discount rate Operating leases 6.2 % (d) Maturities of lease liabilities were as follows: December 31, 2019 US$ 2020 1,079,860 2021 70,080 Total undiscounted lease payments 1,149,939 Less: imputed interest (28,546 ) Total lease liabilities 1,121,393 (e) Future minimum lease payments for the Company’s operating leases were as follows: December 31, 2018 US$ 2019 1,698,358 2020 1,245,774 2021 70,080 2022 and thereafter - 3,014,212 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 11 . As of December 31, 2018 2019 US$ US$ Cost: Business license (a) 461,086 453,617 Trademark (b) (c) 1,370,920 1,388,361 Software 518,713 737,184 Total cost 2,350,719 2,579,162 Less: Accumulated amortization (848,488 ) (1,267,509 ) Intangible assets, net 1,502,231 1,311,653 Intangible assets of the Group were mainly as follows: (a) In April 2017, the Group consummated an acquisition of all the equity interest of Hangzhou Duoduo Supply Chain Management Co., Limited with a total cash consideration of RMB 1.9 million (US$ 295,790). As the total net liabilities of the acquired company was nil, in applying the screen test in accordance with ASU 2017-01, the Group determined that substantially all of the fair value of the gross assets acquired was concentrated in the business license held by the supply chain company. As a result, the screen test was met to support the conclusion of asset acquisition. The fair values of the business license with amount of RMB 2.6 million (US$ 394,386) is amortized over 5 years on a straight-line basis. Deferred tax liability of RMB 0.6 million (US$ 98,596) is recognized in associated with the identifiable intangible asset. (b) In April 2016, non-controlling interest shareholders of Shanghai Heng Shou Tang Health Technology Co., Limited (“Shanghai Heng Shou Tang”) contributed trademarks as their investment in Shanghai Heng Shou Tang. The trademarks with a cost of RMB 3 million (US$ 464,475) is amortized over 10 years on a straight-line basis. (c) On December 16, 2016, the Group consummated a n acquisition of 70% of the equity interest of Shanghai Jieshi Technology Co., Limited (“Shanghai Jieshi”) with the cash consideration of RMB 0.7 million (US$ 100,908). Management concluded such transaction as a business acquisition. The financial results of Shanghai Jieshi have been consolidated by the Company since the acquisition date. The net liabilities acquired based on their fair values was RMB 3.8 million (US$ 543,505). The newly identifiable intangible assets were RMB 6.4 million (US$ 916,879) which primarily consist of trademarks. Deferred tax liability of RMB1.6 million (US$ 229,220) as recognized in associated with the identifiable intangible assets. Fair values of the trademarks with amount of RMB 6.4 million (US$ 916,879) is amortized over 5 years on a straight-line basis. Amortization costs recognized for the years ended December 31, 2017, 2018 and 2019 were US$ 356,473, US$ 419,609 and US$ 437,652, respectively. As of December 31, 2019, amortization expenses related to the intangible assets for future periods were estimated to be as follows: December 31, 2019 US$ 2020 478,476 2021 454,246 2022 186,679 2023 117,285 2024 and thereafter 74,967 1,311,653 |
Other Non-current Assets
Other Non-current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Non-current Assets | 12 . Other non-current assets consisted of the following: As of December 31, 2018 2019 US$ US$ Online store and other deposits 1,167,807 1,308,858 Prepayments for royalty fee (a) - 218,325 Prepayments for equipment and software procurement 83,199 11,813 Deferral of initial public offering costs 522,072 - Rental prepayments 217,188 - Total 1,990,266 1,538,996 (a) In June 2019, the Group entered into agreement with a third party business partner for the usage of the business partner's images of characters on the products to be sold by the Group during the period from September 1, 2019 to September 30, 2020. Pursuant to the agreement, the Group shall pay the business partner royalty fees based on certain percentage of the sales of related products during the contract period not lower than an agreed minimum royalty fee. The Group prepaid the minimum royalty fee to the business partner with the amount of US$ 339,215 in June 2019 which will be used to settle its future royalty fees. Prepaid royalty fee of US$ 96,424 was amortized and recognized as sales and marketing expenses in the year of 2019. |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | 1 3 . Short-term borrowings - Bank borrowings As of December 31, 2018 and 2019, the total short-term bank borrowings balance of the Group was US$ 12,500,392 and US$ 23,253,294, respectively. The short-term bank borrowings outstanding as of December 31, 2018 and 2019 carried a weighted average interest rate of 6.28% and 6.38% per annum, respectively. a) The Group’s bank facility arrangements are summarized as follows: On October 18, 2018, two fully owned subsidiaries of the Group obtained a three-year revolving loan facility in an aggregate principal amount not exceeding US$25.0 million from Taipei Fubon Commercial Bank Co. Ltd., Hong Kong Branch. Borrowings drawn down from the loan facility were charged by account receivables, bank accounts as well as inventories of these subsidiary and are also charged by certain of the Class B ordinary shares held by the Founders. As of December 31, 2019, short-term bank borrowings with the amount of US$ 14,695,000 were from such revolving loan facility. On October 29, 2018, one of the fully owned subsidiaries of the Group obtained a two-year revolving loan facility in an aggregate principal amount not exceeding US$ 4,000,000 from The Hongkong and Shanghai Banking Corporation Limited. • As of December 31, 2019, borrowings drawn down from the loan facility were charged by certain accounts receivables with the carrying value of US$ 3,239,987 and bank deposits of US$ 2,000,000 which was classified as restricted cash and are also charged by the other two fully owned subsidiaries of the Group and the Founders. As of December 31, 2019, short-term bank borrowings with the amount of US$ 3,983,355 were from such revolving loan facility. On March 18, 2019, one of the fully owned subsidiaries of the Group obtained a one-year revolving loan facility in an aggregate principal amount not exceeding US$ 2,150,168 (RMB 15,000,000) from China Merchants Bank, Shanghai Tianyaoqiao Branch. Borrowings drawn down from the loan facility were charged by the other fully owned subsidiary of the Group and the Founders. As of December 31, 2019, short-term bank borrowings with the amount of US$ 1,433,445 (RMB 10,000,000) were from such revolving loan facility. On May 6, 2019, one of the fully owned subsidiaries of the Group obtained a one-year revolving loan facility in an aggregate principal amount not exceeding US$ 286,689 (RMB 2,000,000) from Ningbo Commerce Bank, Shanghai Branch. Borrowings drawn down from the loan facility were guaranteed by the Founders. As of December 31, 2019, short-term bank borrowings with the amount of US$ 274,603 (RMB 1,915,688) were from such revolving loan facility. b) The Group’s other bank borrowings are summarized as follows: As of December 31, 2019, bank borrowings of US$ 716,723 (RMB 5,000,000) were guaranteed by the Founders. As of December 31, 2019, bank borrowings of US$ 716,723 (RMB 5,000,000) were guaranteed by one of the subsidiaries of the Group. • As of December 31, 2019, bank borrowings of US$ 1,433,445 (RMB 10,000,000) were collateralized by bank deposits of US$ 430,034 placed in the third party bank account which was - Other borrowings - As of December 31, 2018 and 2019, the total other borrowings of the Group was US$ 9,455,757 and US$ 11,262,659, respectively. In August 2017, the Group’s subsidiary, Shanghai Jieshi Technology Co., Limited (“Shanghai Jieshi”), entered into an interest-free loan agreement with one of its non-controlling interest shareholders in the amount of US$ 107,129 (RMB 700,000). In 2018, the loan was contributed by the non-controlling interest shareholder as capital contribution into Shanghai Jieshi. In September and October 2018, the Group entered into six-month loan agreements with a third-party company with a total principal amount of US$ 5,360,000 and annual interest rates from 7% to 9%. The loans have been repaid as of December 31, 2019. In October 2018, the Group entered into a 1-year loan agreement In December 2018, the Group entered into one-year loan agreements with a third-party company with a principle amount of US$ 1,618,778 (RMB 11,110,000) and annual interest rate of 10.90%. The borrowings were collateralized by certain accounts receivables with the carrying value of US$ 1,798,100. The loan has been repaid as of December 31, 2019. On December 25, 2018, the Group entered into a three-month loan agreement with From July to December 2019, the Group entered into several one-year loan agreements with a third-party company with a total principal amount of US$ 4,466,687 and annual interest rates of 10.9%. The loans were collateralized by certain accounts receivable with carrying value of US$ 5,739,895. From September to December 2019, the Group entered into four-month loan agreements with a third-party company with a total principal amount of US$ 205,983 and annual interest rates of 10%. The loans were collateralized by certain accounts receivable with the carrying value of US$ 271,068. From September to December 2019, the Group entered into six-month loan agreements with a third-party company, with a principal amount of US$ 4,812,000 and annual interest rate of 7.8%. From October to December 2019, the Group entered into six-month loan agreements with a third-party company with a principal amount of US$ 1,777,989 and annual interest rate of 7%. The loans were collateralized by certain accounts receivable with the carrying value of US$ 2,214,141. - Bank and other borrowings: There exists no restrictive financial covenants attached to all of the Group’s short-term borrowings. The short-term borrowings outstanding as of December 31, 2018 and 2019 carried a weighted average interest rate of 7.09% and 7.18% per annum, respectively. Interest expenses of bank and other borrowings were US$ 216,576, US$ 978,477 and US$ 2,605,167 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Accrued Liabilities and Other Current Liabilities | 1 4 . Accrued liabilities and other current liabilities Accrued liabilities and other current liabilities consist of the following: As of December 31, 2018 2019 US$ US$ Logistics expenses payables 824,743 1,103,398 Deposits from distributors 292,641 312,469 Redeemable non-controlling interests acquisition payables (Note 17) - 3,120,583 Business acquisition payables 43,711 43,003 Payables for service procurement in connection with service revenue 1,611,123 2,284,011 Refund obligation of sales return 858,536 2,422,155 Others 663,616 1,231,369 Total 4,294,370 10,516,988 |
Tax Payable
Tax Payable | 12 Months Ended |
Dec. 31, 2019 | |
Tax Payable [Abstract] | |
Tax Payable | 15 . As of December 31, 2018 2019 US$ US$ Value added tax liabilities 1,149,913 1,237,365 Income tax payable 1,672,196 1,698,132 Urban maintenance and construction tax 31,324 14,160 Surtax for education expenses 13,525 7,555 Individual income tax withholding 35,432 6,052 Others 4,582 79,570 Total 2,906,972 3,042,834 The Group’s product revenues are subject to value-added tax at the rate ranging from 9% to 16%, and the Group’s service revenues are subject to value-added tax at the rate of 6%. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Shares | 12 Months Ended |
Dec. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Shares | 16 . In August 2015, ECMOHO Shanghai received a total capital contribution of US$ 13,081,880 from third-party investors (the “Round A Investors”) in exchange for 19% equity interests with preferential rights in ECMOHO Shanghai (the “Round A convertible redeemable preferred shares” or “Round A preferred shares”). In April 2016, ECMOHO Shanghai received a total capital contribution of US$ 24,000,000 from third-party investors (the “Round B Investors”) in exchange for 12% equity interest with preferential rights in ECMOHO Shanghai (the “Round B convertible redeemable preferred shares” or “Round B preferred shares”). According to the investment agreements with Round A Investors and Round B Investors, the equity interest held by them have the following preferential rights over the equity interests held by the Founders: a. In the event of liquidation, Round B Investors have preference over the interests held by Round A Investors, followed by Founders. The liquidation amount is 150% of the original investment amount plus all declared but unpaid dividends (if applicable) plus its pro rata share of undistributed earnings. b. In the event of a significant breach of contract by ECMOHO Shanghai or the Founders, both Round A and Round B Investors have the right to put the equity interest back to ECMOHO Shanghai or the Founders. The put price shall be 110% of the original investment amount plus 15% compound interest per annum. c. In the event that the Company does not achieve a public listing before August 2021, both Round A and Round B Investors have the right to put the equity interest back to ECMOHO Shanghai or the Founders. The put price shall be 110% of the original investment amount plus 10% interest per annum. d. Both Round A and Round B Investors are entitled to dividends in the same manner as the other equity interest of ECMOHO Shanghai. e. Both Round A and Round B Investors have rights to appoint directors on the board of ECMOHO Shanghai. In April 2018, the Founders entered into an agreement with one of the Round A Investors (“Exit Investor”) to purchase all of its 8.36% equity interests with preferential rights in ECMOHO Shanghai at fair value. During the Reorganization process (Note 1(b)), preferential rights associated with the 8.36% equity interest acquired by the Founders were removed and exchanged into 9,519,000 Class A Ordinary Shares of the Company in August 2018, which was considered as an extinguishment of the preferential rights. Subsequently in the same month, the Founders sold 8,880,894 Class A Ordinary Shares out of the 9,519,000 shares to third-party investors (Note 18). As described in Note 1(b), during the Reorganization process, after ECMOHO HK purchased 97.5% equity interest of ECMOHO Shanghai, on September 27, 2018, the Company issued 9,519,000 and 10,817,100 number of Class A-1 and Class A-2 Ordinary Shares with preferential rights (the “Class A-1 and Class A-2 convertible redeemable preferred shares” or “Class A-1 and Class A-2 preferred shares”) to its Round A and Round B Investors, all in the same proportions, on an as converted basis, as the percentage of equity interest they held in ECMOHO Shanghai before the Reorganization. Except for the NCI holders, who remained to hold collectively 2.5% equity interests of ECMOHO Shanghai, preferential rights associated with the Round A and Round B preferred shares set forth above were removed and replaced by the terms as described below during the Reorganization. In August and September 2018, the Company issued 7,938,915 number of Series A convertible redeemable preferred shares (“Series A preferred shares”) with US$ 2.8341 per share for a total cash consideration of US$ 22,500,000. The issuance costs were US$ 70,033. The key terms of the Class A-1, Class A-2 and Series A Preferred Shares issued by the Company are as follows: Conversion rights Optional Conversion Each Series A Preferred Share shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of Class A Ordinary Shares as is determined by dividing the Series A Preferred Shares Original Issue Price by the Series A Preferred Share Conversion Price in effect at the time of conversion. The Series A Preferred Share Conversion Price shall initially be the resulting in an initial conversion ratio for the Series A Preferred Shares of 1:1, and shall be subject to adjustment and readjustment from Mandatory Conversion Upon either (a) a Qualified IPO or (b) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of the Series A Preferred Shares, then all outstanding Series A Preferred Shares shall automatically be converted into Class A Ordinary Shares, at the then effective conversion rate. Upon a Qualified IPO, all outstanding Class A-1 and Class A-2 Preferred Shares shall automatically be converted into Class A Ordinary Shares, at the then effective Class A-1 Conversion Price and Class A-2 Conversion Price. The Class A-1 and Class A-2 Conversion Price shall initially be the Class A-1 and Class A-2 Original Issue Price, resulting in an initial conversion ratio for the Class A-1 and A-2 Ordinary Shares of 1:1, and shall be subject to adjustment and readjustment from time to time, including but not limited to additional equity securities issuance, share dividends, distribution, subdivisions, redemptions, combinations, or consolidation of ordinary shares. A Qualified IPO means a firm-commitment underwritten initial public offering by the Company of its Ordinary Shares (or the ADSs thereof) on the New York Stock Exchange or NASDAQ Stock Market in the United States, the Hong Kong Stock Exchange or any other exchange in any other jurisdiction (or any combination of such exchanges and jurisdictions) acceptable to the Company, in any case with a pre-initial public offering valuation of at least US$600,000,000 and with aggregate offering proceeds (before deduction of underwriting fees, commissions or expenses) to the Company of not less than US$120,000,000 (or any cash proceeds of other currency of equivalent value). The Company determined that there were no beneficial conversion features identified for any of the Preferred Shares during any of the periods. In making this determination, the Company compared the fair value of the ordinary shares into which the Preferred Shares are convertible with the respective effective conversion price at the issuance date. In all instances, the effective conversion price was greater than the fair value of the ordinary shares. To the extent a conversion price adjustment occurs, as described above, the Company will re-evaluate whether or not a beneficial conversion feature should be recognized. Voting rights Each holder of Class A-1, Class A-2 and Series A Preferred Shares is entitled to cast the number of votes equal to the number of Class A Ordinary Share on an as-converted basis. Dividend rights Each holder of Series A Preferred Shares is entitled to receive dividends at the rate per annum of 6% of the Series A Original issue price. The dividends is accrued from day to day, whether or not declared, and is non-cumulative. Liquidation preference In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, and in the event of a Deemed Liquidation Event (for example, a merger, share exchange, amalgamation or consolidation, etc.), the consideration payable to shareholders in such liquidation shall be distributed among the holders of the outstanding shares in the following order and manner: Firstly, the holders of Series A Preferred Shares then outstanding shall be entitled to be paid, pari passu as between themselves, an amount per Share equal to 100% of the Series A Original Issue Price, plus all declared but unpaid dividends (if applicable) on such Series A Preferred Share (the “Series A Liquidation Amount”). Secondly, the holders of Class A-2 Preferred Shares then outstanding shall be entitled to be paid, pari passu as between themselves, an amount per Share equal to 100% of the applicable Class A-2 Original Issue Price (as adjusted), plus all declared but unpaid dividends (if applicable) on such Class A-2 Preferred Share (the “Class A-2 Liquidation Amount”). Thirdly, the holders of Class A-1 Preferred Shares then outstanding shall be entitled to be paid, pari passu as between themselves, an amount per Share equal to 100% of the applicable Class A-1 Original Issue Price (as adjusted), plus all declared but unpaid dividends (if applicable) on such Class A-1 Preferred Share (the “Class A-1 Liquidation Amount”). Lastly, if there are any assets or funds remaining after the aggregate of the Series A Liquidation Amount, Class A-2 Liquidation Amount and Class A-1 Liquidation Amount has been distributed or paid in full to the applicable holders of Series A Preferred Shares, Class A-2 Preferred Shares, Class A-1 Preferred Shares, respectively, the holders of the Series A Preferred Shares, Class A-1 Preferred Shares, Class A-2 Preferred Shares, Class A Ordinary Shares and Class B Ordinary Shares shall be entitled to be paid, pari passu as between themselves, an amount per Share equal to the remaining assets and funds of the Company available for distribution to the Shareholders divided by the number of Shares held by such Shareholders on an as converted basis (the “Remaining Liquidation Amount”). Redemption right Series A Preferred Shares shall be redeemed by the Company at a price equal to the Series A Original Issue Price per share, plus the amount which would accrue on the Series A Original Issue Price at the annual rate of six percent (6%) from the date of the Series A Original Issue Date up to and including such date as the Series A Liquidation Amount is paid with respect to such Series A Preferred Share (the “Series A Redemption Price”), in thirty-six (36) monthly instalments within three (3) years commencing not more than 90 days after receipt by the Company at any time on or after the fifth anniversary of the date of the Series A Original Issue Date from any holder of the Series A Preferred Shares of written notice requesting redemption of all Series A Preferred Shares (the “Series A Redemption Request”) held by such holder or on a payment schedule mutually agreed by the Company and such holder of the Series A Preferred Shares requesting redemption. After the payment in full of the Series A Redemption Price for all outstanding Series A Redemption Request, Class A-2 Preferred Shares shall be redeemed by the Company at a price equal to the Class A-2 Original Issue Price per share, plus the amount which would accrue on the Class A-2 Original Issue Price at the annual rate of six percent (6%) from the date of the Class A-2 Original Issue Date up to and including such date as the Class A-2 Liquidation Amount is paid with respect to such Class A-2 Preferred Share (the “Class A-2 Redemption Price”), in thirty-six (36) monthly instalments within three (3) years commencing not more than 90 days after receipt by the Company at any time on or after the fifth anniversary of the date of the Series A Original Issue Date from any holder of Class A-2 Preferred Shares of written notice requesting redemption of all Class A-2 Preferred Shares (the “Class A-2 Redemption Request”) held by such holder or on a payment schedule mutually agreed by the Company and such holder of Class A-2 Preferred Shares requesting redemption. After the payment in full of (i) the Series A Redemption Price for all outstanding Series A Redemption Request and (ii) the Class A-2 Redemption Price for all outstanding Class A-2 Redemption Request, Class A-1 Preferred Shares shall be redeemed by the Company at a price equal to the Class A-1 Original Issue Price per share, plus the amount which would accrue on the Class A-1 Original Issue Price at the annual rate of six percent (6%) from the date of the Class A-1 Original Issue Date up to and including such date as the Class A-1 Liquidation Amount is paid with respect to such Class A-1 Preferred Share (the “Class A-1 Redemption Price”), in thirty-six (36) monthly instalments within three (3) years commencing not more than 90 days after receipt by the Company at any time on or after the fifth anniversary of the date of the Series A Original Issue Date from any holder of Class A-1 Preferred Shares of written notice requesting redemption of all Class A-1 Preferred Shares (the “Class A-1 Redemption Request”) held by such holder or on a payment schedule mutually agreed by the Company and such holder of Class A-1 Preferred Shares requesting redemption. Accounting of Preferred Shares The Company classified the Round A, Round B, Class A-1, Class A-2 and Series A preferred shares (collectively as the “Preferred Shares”) as mezzanine equity in the consolidated balance sheets because they were redeemable at the holders' option any time after a certain date or were contingently redeemable upon the occurrence of certain liquidation events outside of the Company's control. The Preferred Shares are recorded initially at fair value, net of issuance costs. For each reporting period, the Company recorded accretions on the Preferred Shares to the respective redemption value by using the effective interest rate method from the issuance dates to the earliest redemption dates as set forth in the original issuance. The accretion is recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in-capital, or in the absence of additional paid-in-capital, by charges to accumulated deficit. The accretion of the Preferred Shares was US$ 3,972,281, US$ 3,038,407 and US$ 1,022,461 for the years ended December 31, 2017, 2018 and 2019. When the preferred shareholders converted their preferred shares to ordinary shares upon completion of the IPO in November 2019, the Company calculated the accretion value of the preferred share through the IPO date and the difference between the carrying value of the preferred shares on the IPO date and the paid-in capital of ordinary share converted into were recognized in the additional paid-in capital. Extinguishment of preferred shares The Company assesses whether amendments to the terms of its Preferred Shares is an extinguishment or a modification from both quantitative and qualitative perspectives. i. Extinguishment of Round A and Round B preferred shares during Reorganization As described above, prior to the Reorganization, the equity interests of ECMOHO Shanghai held by the Round A and Round B Investors were with liquidation preference and also were redeemable at the holders' option any time after a certain date or breach of contract by ECMOHO Shanghai or the Founders. Upon completion of the Reorganization, Round A and Round B Investors’ equity interests with preferential rights, except for the 2.5% held by NCI holder, in ECMOHO Shanghai were exchanged into 9,519,000 Class A-1 and 10,817,100 Class A-2 Preferred Shares of the Company, respectively. The most significant changes in the preferential rights of the Round A and Round B Investors are in respect with the redemption right and liquidation preference. From both quantitative and qualitative perspectives, the Company assessed the impact of the above amendments and concluded that these amendments represent extinguishment rather than modification of Round A and Round B preferred shares. The Company concluded that there is no accretion to be recognized for Class A-1 and Class A-2 preferred shares because carrying amount is greater than the redemption value as of December 31, 2018 and 2019 . Therefore, no adjustment will be made to the initial carrying amount of the Class A-1 and Class A-2 preferred shares until the redemption amount exceeds the carrying amount. As of December 31, 2018 and 2019, US$ 89,222 and nil of the subscription consideration for Class A-2 preferred shares ii. Extinguishment of 8.36% Round A preferred shares during the Reorganization As described above, preferential rights associated with the 8.36% equity interest acquired by the Founders were removed during the Reorganization process and exchanged into 9,519,000 Class A Ordinary Shares of the Company. From accounting perspective, the Founders exchanged their preferred equity interests in ECMOHO Shanghai into the preferred shares of the Company and immediately exercise its conversion right to convert the preferred shares into Class A Ordinary Shares. Changes from the preferred equity interests in ECMOHO Shanghai to preferred shares of the Company were also considered as an extinguishment. Therefore, at the time of the extinguishment, the Round A preferred shares with the carrying amount of US$ 8,754,168 held by the Founders were derecognized, and corresponding preferred shares were measured at its fair value with the amount of US$ 19,495,152 on the extinguishment date, with the difference amounted to US$ 10,740,984 charged to additional paid-in capital. Simultaneously, the Founders converted the preferred shares to exchange 9,519,000 Class A Ordinary Shares of the Company (Note 18). The preferred shares with the carrying amount of US$ 19,495,152 were derecognized, and the corresponding Class A Ordinary Shares were increased by US$ 95 and US$ 19,495,057 in par value and additional paid-in capital, respectively. Conversion of Preferred Shares upon IPO Upon completion of the Company’s IPO in November 2019, 9,519,000 Class A-1 and 10,817,100 Class A-2 preferred shares were converted and designated as 20,336,100 Class A ordinary shares on a one-for-one basis, and 7,938,915 Series A preferred shares were converted and designated as 8,999,999 Class A ordinary shares on an average basis of 1-for-1.13 due to the adjustment of initial conversion ratio in accordance with the terms of Series A preferred shares (Note 4). The Company’s Preferred Shares activities for the years ended December 31, 2017, 2018 and 2019 are summarized below: Round A Preferred Shares Round B Preferred Shares Class A-1 Preferred Shares Class A-2 Preferred Shares Series A Preferred Shares Number of shares Amount (US$) Number of shares Amount (US$) Number of shares Amount (US$) Number of shares Amount (US$) Number of shares Amount (US$) Balances as of January 1, 2017 19,038,000 14,537,499 13,663,700 25,463,814 - - - - - - Accretion on convertible redeemable preferred shares to redemption value - 1,559,285 - 2,412,996 - - - - - - Balances as of December 31, 2017 19,038,000 16,096,784 13,663,700 27,876,810 - - - - - - Accretion on convertible redeemable preferred shares to redemption value - Before Reorganization 1,018,493 - 1,574,737 - - *Reorganization - Extinguishment of 8.36% Round A preferred shares and exchanged into Class A Ordinary Shares (9,519,000 ) (8,754,168 ) - - - - - - - - *Reorganization - Preferred shares exchanged into redeemable non-controlling interests (Note 17) - - (2,846,600 ) (6,167,333 ) - - - - - - *Reorganization - Extinguishment of Round A and Round B preferred shares (9,519,000 ) (8,361,109 ) (10,817,100 ) (23,284,214 ) 9,519,000 19,495,152 10,817,100 26,172,432 - - *Reorganization - Subscription receivables - - - (89,222 ) - - Issuance of convertible redeemable preferred shares, net of issuance costs - - - - - - - - 7,938,915 22,429,967 Accretion on convertible redeemable preferred shares to redemption value - After Reorganization - - - - - - - - - 445,177 Balances as of December 31, 2018 - - - - 9,519,000 19,495,152 10,817,100 26,083,210 7,938,915 22,875,144 *These were transactions occurred during the Reorganization process of the Group, details please refer to Note 1(b), Note 16 and Note 17. The Company’s Preferred Shares activities for the years ended December 31, 2017, 2018 and 2019 are summarized below (continued): Round A Preferred Shares Round B Preferred Shares Class A-1 Preferred Shares Class A-2 Preferred Shares Series A Preferred Shares Number of Amount Number of Amount Number of Amount Number of Amount Number of Amount shares (US$) shares (US$) shares (US$) shares (US$) shares (US$) *Reorganization - Subscription receivables - - - - - - - 89,222 - - Accretion on convertible redeemable preferred shares to redemption value - After Reorganization - - - - - - - - - 1,022,461 Conversion of preferred shares to Class A ordinary shares - - - - (9,519,000 ) (19,495,152 ) (10,817,100 ) (26,172,432 ) (7,938,915 ) (23,897,605 ) Balances as of December 31, 2019 - - - - - - - - - - *These were transactions occurred during the Reorganization process of the Group, details please refer to Note 1(b), Note 16 and Note 17. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interests and Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest and Non-Controlling Interests | 1 7 . (a) Redeemable non-controlling interests As described in Note 1(b) and Note 16 above, certain Round B Investors who collectively held 2.5% equity interests in ECMOHO Shanghai with preferential rights remained as the shareholders of ECMOHO Shanghai after the completion of the Reorganization. The 2.5% equity interests in ECMOHO Shanghai held by these Round B Investors are with liquidation preference and also are redeemable at the holders' option under certain events, which are not solely within the control of ECMOHO Shanghai. Accordingly, such 2.5% equity interests in ECMOHO Shanghai are recorded and accounted for as redeemable non-controlling interests outside of permanent equity in the Group’s consolidated balance sheets in accordance with ASC 480-10-S99-3A. Subsequently, the redeemable non-controlling interests should be carried at the higher of (1) the carrying amount after the attribution of net income or loss of ECMOHO Shanghai (2) the expected redemption value. T retained earnings, or in the absence of retained earnings, by charges against additional paid-in-capital, or in the absence of additional paid-in-capital, by charges to accumulated deficit. On June 25, 2019, the Group entered into agreements to acquire the 2.5% of the equity interest of ECMOHO Shanghai from its non-controlling shareholders at a total cash consideration of US$ 5,382,048 (RMB 36,999,967). Out of the total consideration, US$ 2,215,392 (RMB 15,230,156) is payable within 15 days from the date of the agreement. The remaining US$ 3,120,583 (RMB 21,769,811) is subject to the following payment terms: 1) if the Company completes an IPO before June 25, 2020, the consideration is payable within 60 days after the IPO; or 2) if the Company does not complete an IPO before June 25, 2020, the consideration is payable in two equal installments in two years after the agreement date plus an interest at an annual rate of eight percent accruing from the date of the agreement. Upon completion of the above acquisition in June 2019, redeemable non-controlling interests with the carrying amount of US$ 6,678,219 were derecognized, and differences between the carrying amount and the consideration amounted to US$ 1,296,171 were charged to additional paid-in capital. Upon completion of the Company’s initial public offering in November 2019, the payment schedule was accelerated. Based on the Group’s negotiation with the non-controlling shareholders, payment of the consideration of US$ 3,120,583 was extended and shall be paid by the end of 2020. As of December 31, 2019, consideration of US$ 2,215,392 (RMB 15,230,156) has been paid, and consideration of US$ 3,120,583 (RMB 21,769,811) remained outstanding and was recorded as “Accrued liabilities and other current liabilities”. The change in the carrying amount of redeemable non-controlling interests for the year ended December 31, 2017, 2018 and 2019 is as follows: Redeemable non-controlling interests US$ Beginning Balance at January 1, 2018 - Preferred shares exchanged into redeemable non-controlling interests 6,167,333 Net income attributable to redeemable non-controlling interests 96,301 Accretion to redemption value of redeemable non-controlling interests 129,896 Ending Balance at December 31, 2018 6,393,530 Net loss attributable to redeemable non-controlling interests (27,068 ) Accretion to redemption value of redeemable non-controlling interests 311,757 Acquisition of redeemable non-controlling interests (6,678,219 ) Ending Balance at December 31, 2019 - (b) Non-controlling interests Non-controlling interests mainly represent the Group’s subsidiary’s cumulative results of operations and changes in deficit attributable to non-controlling shareholders. - Shanghai Jieshi In 2016, the Group consummated a n acquisition of 70% of the equity interest of Shanghai Jieshi. In June 2017, the Group acquired the rest of the 30% equity interest of Shanghai Jieshi with a consideration of RMB 0.3 million (US$ 48,704). The difference between the consideration and the carrying amount of such non-controlling interests was recorded in accumulated deficit in the amount of US$ (23,993). The Group sold 10% of the equity interest to a third-party investor with a consideration of RMB 0.1 million (US$ 16,235) afterwards in July 2017. The difference between the consideration and the carrying amount of such equity interests was recorded in accumulated deficit in the amount of US$ 78,404. In 2018 and 2019, the non-controlling interests shareholder made proportional cash capital injection with the amount of RMB 700,000 (US$ 104,159) and RMB 200,000 (US$ 29,196) into Shanghai Jieshi, respectively. In August 2019, the Group acquired 10% of the equity interest of Shanghai Jieshi with a consideration of RMB 1.2 million (US$ 170,324). The difference between the consideration and the carrying amount of such non-controlling interests was recorded in additional paid-in-capital in the amount of US$ (180,784). - Xianggui (Shanghai) Biotechnology Co., Ltd (“Xianggui”) The Group established Xiangui as a fully owned subsidiary in 2018. The operation of Xianggui was at a very preliminary stage and had immaterial impact to the consolidated financials of the Group’s business. |
Ordinary Share
Ordinary Share | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Ordinary Share | 1 8 . The Company was incorporated as a limited liability company with authorized share capital of US$50,000 divided into (i) 4,880,496,457 Class A Ordinary Shares of a par value of US$0.00001 each, (ii) 9,519,000 Class A-1 Ordinary Shares with preferential rights (“Class A-1 preferred shares”) of a par value of US$0.00001 each, (iii) 13,663,700 Class A-2 Ordinary Shares with preferential rights (“Class A-2 preferred shares) of a par value of US$0.00001 each, (iv) 75,150,400 Class B Ordinary Shares of a par value of US$0.00001 each and (iii) 21,170,443 Series A Preferred Shares of a par value of US$0.00001 each. On August 2, 2018, the Founders subscribed for 9,519,000 Class A Ordinary Shares and 75,150,400 Class B Ordinary Shares of the Company with the cash consideration of US$ 15,261,676, in the same proportions as the percentage of equity interest they held in ECMOHO Shanghai before the Reorganization. As of December 31, 2018, consideration of US$6,000,376 has been received, and consideration of US$ 9,261,300 remained outstanding and was presented as subscriptions receivable, a contra-equity balance on the consolidated balance sheets. The remaining consideration of US$9,261,300 was fully received in 2019. As described in Note 1(b) and Note 16, upon the consummation of the above subscription, preferential rights associated with the 8.36% equity interest acquired by the Founders in ECMOHO Shanghai were removed and exchanged into 9,519,000 preferred shares of the Company, which was considered as an extinguishment of the original preferential rights (Note 16). Simultaneously, the Founders converted the preferred shares to exchange 9,519,000 Class A Ordinary Shares of the Company, and sold 8,880,894 Class A Ordinary Shares out of the 9,519,000 shares to third party investors (Note 16). In September 2018, the Founders established a trust to hold 2,846,600 of the Company’s issued Class A Ordinary Shares. These ordinary shares were issued by the Company and held in trust for future potential subscription of new investors based on the discretion of the board of directors of the Company. The ordinary shares issued to the trust are accounted for as treasury shares of the Company and presented as such for all periods presented. In August 2019, all the Class A Ordinary Shares held in trust were cancelled. The trust does not hold any other assets or liabilities as at December 31, 2018 and 2019, nor earn any income or incur any expenses for the years ended December 31, 2018 and 2019 In November 2019, the Company completed its initial public offering on the NASDAQ Global Select Market of 4,675,000 American Depositary Shares (“ADS”) (including 300,000 ADSs sold upon the exercise of the underwriters’ over-allotment option) (every ADS represents four Class A ordinary shares, for a total ordinary shares offering of 18,700,000 shares). The net proceeds raised from the IPO amounted to approximately US$35.0 million after deducting underwriting discounts and commissions and other offering expenses. Upon the completion of the IPO, 9,519,000 Class A-1 and 10,817,100 Class A-2 preferred shares were converted and designated as 20,336,100 Class A ordinary shares on a one-for-one basis, and 7,938,915 Series A preferred shares were converted and designated as 8,999,999 Class A ordinary shares on an average basis of 1-for-1.13 due to the adjustment of initial conversion ratio in accordance with the terms of Series A preferred shares. The Company has a dual class voting structure under which majority of the ordinary shares held by the Founders are designated as Class B Ordinary Shares and all of the other ordinary shares, including the shares held by others shareholders and the conversion of outstanding Preferred Shares, are designated as Class A Ordinary Shares. Each holder of outstanding Class A Ordinary Shares shall be entitled to cast the number of votes equal to the number of whole Class A Ordinary Shares held by such holder and each holder of outstanding Class B Ordinary Shares shall be entitled to cast the number of votes equal to ten times the number of whole Class B Ordinary Shares held by such holder. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Revenues | 19 . The Group's revenues for the respective periods are detailed as follows: Year ended December 31, 2018 2019 US$ US$ Product Sales 167,136,099 273,202,495 Product Sales - Consignment arrangement 8,961,638 28,896,028 Services 22,917,299 27,381,393 Total 199,015,036 329,479,916 The Group’s breakdown of product sales revenue by product category for the respective periods are detailed as follow: Year ended December 31, 2018 2019 US$ US$ Health Supplements and Food 80,317,631 116,975,344 Mother and Child Care Products 69,269,605 131,926,890 Personal Care Products 11,289,494 24,293,333 Others 15,221,007 28,902,946 Total 176,097,737 302,098,523 |
Finance Expense, Net
Finance Expense, Net | 12 Months Ended |
Dec. 31, 2019 | |
Finance Expense Net [Abstract] | |
Finance Expense, Net | 20. Finance expense, net Year ended December 31, 2017 2018 2019 US$ US$ US$ Interest expense (216,576 ) (978,477 ) (2,605,167 ) Interest income 71,765 52,934 91,320 Total (144,811 ) (925,543 ) (2,513,847 ) |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Share-based Compensation | 21 . Share-based compensation On September 30, 2018, the Company adopted its 2018 Omnibus Incentive Plan (the “2018 Plan”), which permits the grant of restricted shares, restricted share units, options and stock appreciation rights to the employees and directors of the Company. The Company granted share options/restricted shares under the 2018 Plan to its employees and directors. Under the plan, a total of 11,386,410 Class A Ordinary Shares were initially reserved for issuance. The 2018 Plan is valid and effective for a term of 10 years commencing from its adoption. Under the 2018 Plan, the Company granted 3,971,453 restricted share units to its employees on September 30, 2018 and June 30, 2019, respectively. Restricted share units granted with service condition are commonly vested over a period of four years of continuous service, one fourth (1/4) of which vest upon the first anniversary of the stated vesting commencement date and the remaining vest ratably over the following 36 months. The Group recognizes respective compensation expense on a straight-line basis over the vesting term of the awards, net of estimated forfeitures. For restricted share units granted with performance conditions whose vesting is contingent upon meeting company-wide performance goals, respective compensation cost is recognized over the requisite service period using graded-vesting method if it is probable that the performance target will be achieved. The Group will reassess the probability of achieving the performance conditions at each reporting period and record a cumulative catch-up adjustment for any changes to its assessment. For restricted share units granted with market condition whose vesting is contingent on the Company’s market value exceeding a specific amount, the Group adopted Monte Carlo simulation to determine the fair value and requisite service period, respective compensation expense is recognized using the straight-line method over the estimated requisite service period unless the market condition is satisfied before the end of the initially estimated requisite service period. Upon completion of the Company’s IPO in November 2019, share-based compensation expenses related to the restricted share units granted with performance condition of the occurrence of IPO was recognized immediately with the amount of US$ 209,764. The following table summarizes activities of the Company’s restricted share units under the 2018 and 2019 Plan Number of Restricted Share Units Outstanding Weighted Average Grant Date Fair Value US$ Unvested at January 1, 2018 - - Granted 3,971,453 1.96 Unvested at December 31, 2018 3,971,453 1.96 Granted 472,220 2.64 Vested (746,660 ) 1.96 Forfeited (1,033,446 ) 2.13 Unvested at December 31, 2019 2,663,567 1.98 As of December 31, 2019, there were US$ 3,785,259 of unrecognized compensation expenses related to restricted share units granted by the Company to the employees, which were expected to be recognized over 0.75 to 6.27 years. To the extent the actual forfeiture rate is different from the Company’s estimate, the actual share-based compensation related to these awards may be different from the expectation. Share-based compensation expenses of nil, US$ 356,549 and US$ 1,575,029 related to restricted share units granted was recognized for the year ended December 31, 2017, 2018 and 2019. The fair value of each restricted share units granted with market condition under the Company’s 2018 Plan during the year ended December 31, 2018 was estimated on the date of grant using Monte Carlo model with the assumptions (or ranges thereof) in the following table: Year ended December 31, 2018 US$ Expected volatility (a) 50.0 % Risk-free interest rate (b) 4.1 % Expected dividend yield (c) 0 % Contractual term 10 Notes: (a) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (b) The risk-free interest rate of periods within the contractual life of the share option is based on the market yield of the U.S. treasury bonds with a maturity life equal to the expected life to expiration. (c) The Company has no history or expectation of paying dividends on its ordinary shares. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |
Employee Benefits | 22 . The full-time employees of the Company’s subsidiaries and VIEs that are incorporated in the PRC are entitled to staff welfare benefits including medical insurance, basic pensions, unemployment insurance, work injury insurance, maternity insurance and housing funds. These companies are required to contribute to these benefits based on certain percentages of the employees’ salaries in accordance with the relevant regulations and charge the amount contributed to these benefits to the consolidated statements of comprehensive income. The total amounts charged to the consolidated statements of comprehensive income for such employee benefits amounted to US$ 981,149, US$ 1,767,987 and US$ 3,080,729 for the years ended December 31, 2017, 2018 and 2019, respectively. The PRC government is responsible for the welfare and medical benefits and ultimate pension liability to these employees. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 2 3 . (a) Cayman Islands Under the current tax laws of Cayman Islands, the Company is not subject to income, corporation or capital gains tax, and no withholding tax is imposed upon the payment of dividends. (b) Hong Kong Profits Tax Before the year of 2019, the Company’s subsidiaries incorporated in Hong Kong are subject to Hong Kong profit tax at the rate of 16.5%. Effective since the year of 2019, the applicable income tax rate was changed to 8.25% for profit of up to HK$2.0 million and 16.5% for the remainder of taxable income. Dividends income received from subsidiaries in China are not subject to Hong Kong profits tax. (c) PRC Enterprise Income Tax (“EIT”) On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to EIT at a uniform rate of 25%. The EIT law became effective on January 1, 2008. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% if the immediate holding company in Hong Kong owns directly at least 25% of the shares of the FIE and could be recognized as a Beneficial Owner of the dividend from PRC tax perspective. A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Year Ended December 31, 2017 2018 2019 PRC statutory income tax rates 25.00 % 25.00 % 25.00 % Change in valuation allowance (23.48 %) (15.08 %) 86.99 % Effect of permanent differences 5.78 % 2.55 % 25.70 % Additional tax deduction for qualified research and development expenses - (2.68 %) (10.84 %) Effect of tax holiday* - - (115.48 %) Difference in tax rate of subsidiaries outside the PRC (4.43 %) (3.44 %) 0.06 % Total 2.87 % 6.35 % 11.43 % *Yi Ling (Shanghai) Information Technology Co., Limited, fully owned subsidiary of the Group, obtained its software enterprise certificate in June 2019 and is entitled to a one year tax exemption from Corporate Income Tax (“CIT”) in the year of 2019 and a 50% CIT reduction for the succeeding three years thereafter. Composition of income tax expense The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income are as follows: Year Ended December 31, 2017 2018 2019 US$ US$ US$ Current income tax expense 224,668 1,503,504 56,898 Deferred tax expense/(benefit) (144,092 ) (1,086,380 ) 192,741 Income tax expense, net 80,576 417,124 249,639 Deferred tax assets and liabilities Deferred taxes were measured using the enacted tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2018 and 2019 are as follows: Year Ended December 31, 2018 2019 US$ US$ Deferred tax assets: Tax loss carry-forwards 2,030,373 3,706,113 Inventory provision 137,652 66,042 Allowance for doubtful accounts 24,033 46,883 Unrealized Profit 3,719 6,473 Other deductible temporary difference - 2,112 Total deferred tax assets 2,195,777 3,827,623 Less: Valuation allowance (1,139,566 ) (3,039,926 ) Net deferred tax assets 1,056,211 787,697 Deferred tax liabilities: Recognition of intangible assets arising from asset acquisition and business combination (210,076 ) (138,406 ) Net deferred tax liabilities (210,076 ) (138,406 ) As of December 31, 2018 and 2019, the PRC entities of the Group had tax loss carryforwards of approximately US$ 2,030,373 and US$ 3,706,113, which can be carried forward to offset taxable income. The carryforwards period for net operating losses under the EIT Law is five years. The net operating loss carry forward of the Group will expire in varying amounts between 2020 and 2024. Other than the expiration, there are no other limitations or restrictions upon the Group’s ability to use these operating loss carryforwards. There is no expiration for the advertising expenses carryforwards. Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. If events occur in the future that allow the Group to realize part or all of its deferred income tax, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. As of December 31, 2018 and 2019, valuation allowances of US$ 1,139,566 and US$ 3,039,926 were provided because it was more likely than not that the Group will not be able to utilize certain tax losses carry forwards and other deferred tax assets generated by its subsidiaries and VIEs. Movement of valuation allowance is as follows: Year Ended December 31, 2017 2018 2019 US$ US$ US$ Beginning balance 2,788,084 2,129,655 1,139,566 Current year additions 249,225 423,742 2,108,356 Reversal of valuation allowances (907,654 ) (1,413,831 ) (207,996 ) Ending balance 2,129,655 1,139,566 3,039,926 |
Related Party transactions
Related Party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party transactions | 24 . Transactions with related parties and balances amount due to related parties were as follows: Year Ended December 31, 2017 2018 2019 US$ US$ US$ Transaction with related parties Repayment of advances to related parties (ii) (1,033,740) (2,474,371 ) (10,593,662 ) Proceeds of advances from related parties (ii) 15,304 8,964,847 9,436,151 Proceeds of borrowings from related parties (iv) 3,000,000 3,000,000 6,000,000 Repayment of borrowings from related parties(iv) - - (2,000,000 ) Reimbursement to related parties 180,152 201,907 331,956 Acquisition of equity interests of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) - (18,737,426 ) - Subscription fees from the Founders of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) - 15,261,676 - As of December 31, 2018 2019 US$ US$ Balance amount with related parties Subscription receivables due from Founders of ECMOHO Shanghai for Reorganization purpose (i) 9,261,300 - Payable due to related parties (ii) (6,756,620 ) (5,511,642 ) Payables due to shareholders of ECMOHO Shanghai for Reorganization purpose (iii) (4,261,580 ) - Borrowings and interests due from related parties (iv) (6,405,000 ) (10,721,819 ) (i) As described in Note 1(b), total subscription fee of US$ 15,261,676 for Class A and Class B Ordinary Shares was received by US$ 6,000,376 and US$ 9,261,300 during the years ended December 31, 2018 and 2019, respectively. As of December 31, 2018, the remaining consideration of US$ 9,261,300 was presented as subscriptions receivable, a contra-equity balance. (ii) The Group drawn down interest free advances from Founders, members of Founders immediate families and special purpose vehicles controlled by the Founders and Shareholders during the periods presented. As of December 31, 2018 and 2019, payables due to these related parties amounted to US$ 6,756,620 and US$ 5,511,642, respectively. (iii) As described in Note 1(b), on July 8, 2018, ECMOHO HK legally acquired 97.5% of the equity interest of ECMOHO Shanghai from the Founders and most of the Investors, except for 2.5% equity interests held by certain of the Investors (“NCI holders”), with the consideration of US$ 18,737,426. In 2018, consideration of US$ 14,475,846 was paid, and the outstanding consideration of US$ 4,261,580 was presented as amounts due to related parties on the consolidated balance sheets as of December 31, 2018. The remaining consideration was fully paid in 2019. (iv) On September 18 and October 17, 2017, April 11, 2018 and November 12, 2019, the Group entered into loan agreements with a fully owned subsidiary of one of the investors of Class A-2 (Round B) preferred shares, who became Class A ordinary shareholder after the Company’s IPO in November 2019, with the principle amount of US$ 1,500,000, US$ 1,500,000, US$ 3,000,000 and US$ 2,000,000 and interest rate of 6.00%, 6.00%, 6.00% and 8.00%, respectively. Such borrowings shall be repaid upon the lender’s request. On December 26, 2019, the Group entered into loan agreements with the fully owned subsidiary of one of Class A ordinary shareholders, with the principle amount of US$ 2,000,000 and interest rate of 10.00%, and such borrowing has been repaid subsequently on February 21, 2020. |
Basic and Diluted Net Earnings_
Basic and Diluted Net Earnings/(Loss) per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Earnings/(Loss) per Share | 2 5 . Basic earnings/(loss) per share and diluted earnings/(loss) per share have been calculated in accordance with ASC 260 on computation of earnings per share for the years ended December 31, 2017, 2018 and 2019 as follows: Year Ended December 31, 2017 2018 2019 Numerator: Net income attributable to ECMOHO Limited 2,825,457 6,123,990 2,296,555 Accretion on convertible redeemable preferred shares to redemption value (Note 15) (3,972,281 ) (3,038,407 ) (1,022,461 ) Accretion to redemption value of redeemable non-controlling interests (Note 17) - (129,896 ) (311,757 ) Extinguishment of convertible redeemable preferred shares (Note 16) - (24,763,245 ) - Net income/(loss) attributable to ordinary shareholders-Basic (1,146,824 ) (21,807,558 ) 962,337 Net income/(loss) attributable to ordinary shareholders-Diluted (1,146,824 ) (21,807,558 ) 962,337 Denominator: Denominator for basic (loss)/earnings per share weighted-average ordinary shares outstanding 81,162,400 84,970,000 98,104,216 Dilutive impact of Class A-1 preferred shares conversion - - 7,954,232 Dilutive impact of Class A-2 preferred shares conversion - - 9,038,947 Dilutive impact of restricted share units - - 547,469 Denominator for dilutive earnings/(loss) per share weighted-average ordinary shares outstanding 81,162,400 84,970,000 115,644,864 Basic earnings/(loss) per ordinary share: (0.01 ) (0.26 ) 0.01 Diluted earnings/(loss) per ordinary share: (0.01 ) (0.26 ) 0.01 Denominator: Denominator for basic earnings/(loss) per ADS weighted-average ADS outstanding 20,290,600 21,242,500 24,526,054 Denominator for dilutive earnings/(loss) per share weighted-average ADS outstanding 20,290,600 21,242,500 28,911,216 Basic earnings/(loss) per ADS: (0.06 ) (1.03 ) 0.04 Diluted earnings/(loss) per ADS: (0.06 ) (1.03 ) 0.03 Note: (1) Vested but unregistered restricted share units are included in the denominator of basic earnings/(loss) per share calculation once there were no further vesting conditions or contingencies associated with them, as they are considered contingently issuable shares. Accordingly, the weighted average number of shares of nil, nil and 164,279 (41,070 ADSs) related to these restricted share units are included in the denominator for the computation of basic EPS for the years ended December 31, 2017, 2018 and 2019, respectively. For the years ended December 31, 2017 and 2018, assumed conversion of the Preferred Shares have not been reflected in the dilutive calculations pursuant to ASC 260, “Earnings Per Share,” due to the anti-dilutive effect. For the year ended December 31, 2019, assumed conversion of the Series A Preferred Shares have not been reflected in the dilutive calculations pursuant to ASC 260, “Earnings Per Share,” due to the anti-dilutive effect. For the year ended December 31, 2018 , the Company also had potential ordinary shares related to its granted restricted share units, which were anti-dilutive and excluded from the dilutive calculations. The following ordinary shares equivalent were excluded from the computation of diluted net earnings/(loss) per ordinary share for the periods presented because including them would have had an anti-dilutive effect: Year Ended December 31, 2017 2018 2019 Preferred shares — weighted average 32,701,700 30,265,462 6,633,889 Restricted share units — weighted average — 95,446 — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 26 . (a ) As of December 31, 2018 and 2019, no purchase commitments was related to the products procurement from third party brand partners. ( b ) As of December 31, 2018 and 2019, no capital commitments was related to leasehold improvement and purchase of equipment. ( c ) In March 2016, the Group entered into a cooperation framework agreement to establish a joint venture with several joint venture partners. As part of the agreement, the joint venture partners agreed to contribute their ownership in certain brands to the joint venture. However, only a portion of such trademarks have been transferred to the Group. In October 2018, the Group filed a civil claim against the joint venture partners in the Shanghai Xuhui People’s Court to enforce the transfer of the remaining trademarks, claim damages amounting to RMB7.19 million (US$1.05 million) and request that the joint venture partners be enjoined from using the brand name “Heng Shou Tang” in all categories. On January 10, 2019, the joint venture partners filed a counterclaim to rescind the agreement and allege damages amounting to RMB3.25 million (US$ 0.47 million). In July 2019, the Shanghai Xuhui People’s Court ruled that the Group shall pay damages in the amount of RMB3.25 million (US$0.47 million) to the joint venture partners for breaching its contractual obligation to contribute capital to the joint venture, and that the joint venture partners shall continue to perform their contractual obligations by transferring the remaining trademarks to the joint venture and cease to use the brand name “Heng Shou Tang” in all categories. Both the Group and the joint venture partners have appealed against this ruling with the Shanghai First Intermediate People's Court. Despite the appeal filed by the Group, as of June 30, 2019, the Group made a provision of RMB3.25 million (US$ 0.47 million), representing the entire amount awarded to the joint venture partners by the ruling from the Court. In November 2019, the Shanghai First Intermediate People's Court delivered its judgment, which provides, amongst other matters, that the Group shall not pay damages to the joint venture partners and the joint venture partners shall continue to perform their contractual obligations by transferring the remaining trademarks to the joint venture. Pursuant to the final judgement, the Group reversed the above provision as of December 31, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 27. Subsequent events - -Impact of COVID-19 The outbreak of a novel strain of coronavirus that causes the disease now known as COVID-19, was first identified in Wuhan, China, in December 2019. Since late-January 2020, the Chinese government has imposed a series of strict and protracted containment measures, including lock-downs across the Hubei province and in many other parts of the country. Despite these efforts, the disease has continued to spread globally and, in March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic and recommended the implementation of containment and mitigation measures worldwide. The Group’s operations and financial performance have been, and continue to be, affected by significant increases in international freight costs in light of the COVID-19 pandemic and such increases have had an impact on the Group’s fulfillment expenses. In addition, during the first quarter of calendar year 2020 some of the Group’s third-party business partners in China, in particular domestic logistics and transport services providers, experienced temporary shut-downs or worker absenteeism and were unable to meet their obligations to the Group. This has had an adverse impact on the Group’s ability to promptly provide its customers with the products they purchased, which, in turn, has affected the Group’s financial performance. The Group has experienced and expects to continue to experience disruptions to its supply chains if its brand partners, especially international brand partners based in the United States and Europe, are severely impacted by the COVID-19 pandemic or government-imposed containment measures. The Group is currently unable to predict with certainty the duration and severity of the COVID-19 pandemic, and its ultimate impact on its business, financial condition, liquidity and results of operations, as these depend on rapidly evolving and uncertain developments and factors that are beyond control. Such factors include, the speed of the contagion, the ultimate effect of the various containment measures imposed, the development of effective medical treatment solutions, financial and market reactions to the foregoing and general consumer sentiment. - -Disposal of Xianggui In April 2020, the Group disposed 60% equity interests of Xianggui to an entity fully owned by the Founders of the Company with the consideration of RMB 3.4 million (Note 17). - Supplementary loan agreements In May 2020, the Group entered into supplementary loan agreements with a fully owned subsidiary of one of its Class A ordinary shareholders, pursuant to which the borrower agreed to, with respect to its existing loans to the Group with the principle amount of US$ 8,000,000, waive certain interests thereon and adjust the repayment schedule. In addition, Mr. Leo Zeng has agreed to enter into certain share charges with the shareholder in respect of 4,000,000 Class B ordinary shares to guarantee the Group’s payment obligations under the loan agreements. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 2 8 . Relevant PRC laws and regulations permit payments of dividends by the Group’s subsidiary and the VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s subsidiary and the VIEs in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group’s subsidiary and the VIE subsidiary incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances. There are no significant differences between US GAAP and PRC accounting standards in connection with the reported net assets of the legally owned subsidiary in the PRC and the VIEs. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to our shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Group’s subsidiary and the VIEs to satisfy any obligations of the Company. As of December 31, 2018 and 2019, the total restricted net assets of the Company’s subsidiaries and VIEs incorporated in PRC and subjected to restriction amounted to approximately US$ 34,910,244 and US$ 34,626,132 respectively. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. There is no other restriction on the use of proceeds generated by the Company’s subsidiaries, VIEs and VIE subsidiary to satisfy any obligations of the Company. |
Additional Information_ Condens
Additional Information: Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Additional Information: Condensed Financial Statements of Parent Company | ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY Rules 12-04(a) and 4-08(e)(3) of Regulation S-X require condensed financial information as to the financial position, cash flows and results of operations of a parent company as of and for the same periods for which the audited consolidated financial statements have been presented when the restricted net assets of the consolidated and unconsolidated subsidiaries together exceed 25% of consolidated net assets as of the end of the most recently completed fiscal year. The following condensed financial statements of the Parent Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Parent Company used the equity method to account for its investment in its subsidiaries and VIEs. Such investment is presented on the separate condensed balance sheets of the Parent Company as “Investments in and advances to subsidiaries, VIEs and VIE’s subsidiary”. The Parent Company, its subsidiaries and VIEs were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Parent Company’s share of income from its subsidiaries and VIEs is reported as share of income from subsidiaries and VIEs in the condensed financial statements. The Parent Company is a Cayman Islands company and, therefore, is not subjected to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As of December 31, 2019, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. As the Group’s business was operated through ECMOHO Shanghai prior to the Parent Company being incorporated in 2018, no Parent Company financial information of 2017 is presented. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY BALANCE SHEETS As of December 31, 2018 As of December 31, 2019 US$ US$ ASSETS Current assets: Cash and cash equivalents 3,941 43,806,283 Total current assets 3,941 43,806,283 Investments in subsidiaries, VIEs and VIEs’ subsidiary 42,485,754 50,520,768 Other non-current assets 401,109 - Total assets 42,890,804 94,327,051 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT Current liabilities: Accrued expenses and other current liabilities 577,222 6,178,925 Amounts due to related parties - 4,023,233 Total liabilities 577,222 10,202,158 Commitments and contingencies (Note 26) Mezzanine equity: Class A-1 convertible redeemable preferred shares (US$ 0.00001 par value; 9,519,000 shares authorized, issued and outstanding as of December 31, 2018; redemption amount of US$ 7,641,780 as of December 31, 2018) 19,495,152 - Class A-2 convertible redeemable preferred shares (US$0.00001 par value; 13,663,700 shares authorized, 10,817,100 shares issued and outstanding as of December 31, 2018; redemption amount of US$ 22,011,640 as of December 31, 2018) 26,083,210 - Series A convertible redeemable preferred shares (US$0.00001 par value; 7,938,915 shares authorized, issued and outstanding as of December 31, 2018; redemption amount of US$ 22,926,600 as of December 31, 2018) 22,875,144 - Redeemable non-controlling interests (redemption amount of US$ 6,993,038 as of December 31, 2018) 6,393,530 - Total of mezzanine equity 74,847,036 - Shareholders’ (deficit)/equity: Class A Ordinary Shares, US$ 0.00001 par value; 4,880,496,457 shares authorized at December 31, 2018 and December 31, 2019; 18,377,600 and 63,567,099 shares issued at December 31, 2018 and December 31, 2019, respectively; 15,531,000 and 63,567,099 shares outstanding at December 31, 2018 and December 31, 2019, respectively) 155 635 Class B Ordinary Shares, US$ 0.00001 par value; 75,150,400 shares authorized, issued and outstanding at December 31, 2018 and December 31, 2019) 752 752 Additional paid-in capital - 105,944,278 Treasury stock (US$0.00001 par value; 2,846,600 shares and nil at December 31, 2018 and 2019, respectively) - - Subscription receivables (9,261,300 ) - Accumulated other comprehensive loss (1,420,369 ) (2,264,635 ) Accumulated deficit (21,852,692 ) (19,556,137 ) Total shareholders’ (deficit)/equity (32,533,454 ) 84,124,893 Total liabilities, mezzanine equity and shareholders’ (deficit)/equity 42,890,804 94,327,051 CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2018 2019 US$ US$ Operating expenses: General and administrative (521,616 ) (616,906 ) Total operating expenses (521,616 ) (616,906 ) Loss from operations (521,616 ) (616,906 ) Equity in income of subsidiaries and VIEs 6,515,710 2,601,704 Net income 5,994,094 1,984,798 Less: Accretion on Round A convertible redeemable preferred shares to redemption value (1,018,493 ) — Less: Accretion on Round B convertible redeemable preferred shares to redemption value (1,574,737 ) — Less: Accretion on Series A convertible redeemable preferred shares to redemption value (445,177 ) (1,022,461 ) Less: Extinguishment of convertible redeemable preferred shares (Note 16) (24,763,245 ) — Net income/(loss) attributable to ordinary shareholders (21,807,558 ) 962,337 Net income 5,994,094 1,984,798 Foreign currency translation adjustment, net of nil tax (670,073 ) (844,266 ) Comprehensive income 5,324,021 1,140,532 Note: In the Company’s statements of comprehensive income for the years ended December 31, 2018 and 2019, accretion to redemption value of redeemable non-controlling interests amounted to US$ 129,896 and US$ 311,757 were treated as the subsidiary’s cost and accordingly were included in the equity in income of subsidiaries and VIEs in the Company’s statements of comprehensive income for the years ended December 31, 2018 and 2019, respectively. STATEMENTS OF CASH FLOWS Year Ended December 31, 2018 2019 US$ US$ Net cash used in operating activities (165,067 ) (567,446 ) Net cash used in investing activities (31,816,817 ) (10,502,538 ) Net cash provided by financing activities 31,985,825 54,872,326 Net increase in cash and cash equivalents 3,941 43,802,342 Cash and cash equivalents, beginning of year — 3,941 Cash and cash equivalents, end of year 3,941 43,806,283 |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Preparation | (a) The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Reorganization was a recapitalization with no substantial changes in the shareholding of the Company. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Basis of Consolidation | (b) The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, its VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, through contractual agreements, has the power to direct activities of, |
Use of Estimates | (c) The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company believes that revenue recognition, sales return, sales incentive, inventory write-down, rebates, realization of deferred tax assets, assessment for useful life and impairment of long-lived assets, allowance for doubtful accounts, and valuation of ordinary shares and preferred shares requires significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. On an ongoing basis, management evaluates its estimates based on information that is currently available. Changes in circumstances, facts and experience may cause the Company to revise its estimates. Changes in estimates are recorded in the period in which they become known. Actual results could materially differ from these estimates. |
Functional Currency and Foreign Currency Translation | (d) The Group uses United States dollars ("US$" or "USD") Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are translated at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income as foreign exchange related gains. The financial statements of the Group’s entities using functional currency other than US$ are translated from the functional currency to the reporting currency, US$. Assets and liabilities of the Group’s subsidiaries incorporated in PRC are translated into US$ at balance sheet date exchange rates, Income and expense items are translated at average exchange rates prevailing during the fiscal year, representing the index rates stipulated by the People’s Bank of China. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as accumulated other comprehensive income/(loss) on the consolidated financial statement. The exchange rates used for translation on December 31, 2018 and 2019 were US$1.00=RMB 6.8632 and US$1.00=RMB 6.9762, respectively, representing the index rates stipulated by the People’s Bank of China. |
Fair Value of Financial Instruments | (e) Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Group’s financial instruments consist principally of cash and cash equivalents , restricted cash, As of December 31, 2018 and 2019, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, deposits, loan deposits, accounts payable, operating lease liabilities, accrued liabilities and other current liabilities, short-term borrowings, amounts due to related parties and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. |
Cash, Cash Equivalents and Restricted Cash | (f) Cash and cash equivalents include cash in bank and time deposits placed with banks, other financial institutions and third party payment processors Restricted cash mainly represents secured deposits held in designated bank accounts for drawdown of bank loans. Cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on the consolidated balance sheet as follows: As of December 31, 2017 2018 2019 US$ US$ US$ Cash and cash equivalents 10,689,462 10,336,467 49,098,841 Restricted cash - 2,628,392 2,000,054 Total 10,689,462 12,964,859 51,098,895 |
Accounts Receivable, Net | (g) Accounts receivable are presented net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. |
Inventories | (h) I Inventories are stated at the lower of cost or market. Cost is determined using the weighted average method. Provisions are made for excessive, slow moving, expired and obsolete inventories as well as for inventories with carrying values in excess of market. Certain factors could impact the realizable value of inventory, so the Group continually evaluates the recoverability based on assumptions about customer demand and market conditions. The evaluation may take into consideration historical usage, inventory aging, expiration date, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, and other factors. The reserve or write-down is equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves or write-downs may be required that could negatively impact the Group’s gross margin and operating results. If actual market conditions are more favorable, the Group may have higher gross margin when products that have been previously reserved or written down are eventually sold. |
Property and Equipment, Net | (i) Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the following estimated useful lives, taking into account any estimated residual value. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. The estimated useful lives and residual rates are as follows: Classification Useful years Residual rate Warehouse equipment 3 years 5% Furniture, computer and office equipment 2 - 5 years 0%-5% Leasehold improvement Over the shorter of the expected life of leasehold improvements or the lease term 0% Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. |
Intangible Assets, Net | (j) I Software purchased from third parties are initially recorded at cost and amortized on a straight-line basis over the shorter of the useful economic lives or stipulated period in the contract, which is usually 5 years. Other separately identifiable intangible assets that have finite lives and continue to be amortized consist primarily of trademark and business license purchased from third parties in the years of 2017, 2018 and 2019. The Company amortizes these intangible assets on a straight-line basis over their estimated useful lives, which are 5 to 10 years. The estimated life of amortized intangibles is reassessed if circumstances occur that indicate the life has changed. |
Impairment of Long-lived Assets | (k) For long-lived assets including property and equipment, intangible assets and other non-current assets, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Advances from Customers | (l) Certain third party customers pay in advance to purchase product goods. Cash proceeds received from customers are initially recorded as advances from customers and are recognized as revenues when revenue recognition criteria are met. |
Deferred Equity Offering Costs | (m) Deferred equity offering costs The Company capitalizes certain legal, professional accounting and other third-party fees that are incremental and directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of an equity financing, these costs are recorded in shareholders' (deficit)/equity as a reduction of additional paid-in capital generated as a result of the offering. Should the in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the consolidated statements of comprehensive income. As of December 31, 2018 and 2019, deferred offering costs of US$ 522,072 and nil were recorded in the consolidated balance sheet (Note 12). |
Mezzanine Equity | (n) Mezzanine equity Mezzanine equity represents the Round A, Round B, Class A-1, Class A-2 and Series A convertible redeemable preferred shares (collectively known as “Preferred Shares”) issued by the Company as well as redeemable non-controlling interests. Preferred Shares are redeemable at the holders' option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Company's control. Therefore, the Group classifies the Preferred Shares as mezzanine equity (Note 16). Redeemable non-controlling interests are redeemable at the holders' option under certain events, which are not solely within the control of the Company, and are recorded and accounted for outside of permanent equity |
Revenue Recognition | (o) Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") and subsequently, the FASB issued several amendments which amends certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as "ASC 606"). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group adopted ASC 606 for all periods presented. Consistent with the criteria of Topic 606, the Group follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group’s revenues are primarily derived from (i) product sales and (ii) services including online store operating services, promotion and marketing services to its brand partners and other brand customers. Refer to Note 19 to the consolidated financial statements for disaggregation of the Group's revenue for the years ended December 31, 2017, 2018 and 2019. When either party to a contract has performed, the Group presents the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. A contract asset is recorded when the Group has transferred products or services to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance or other factors in the contract. No contract asset was recorded as at December 31, 2018 and 2019. If the Group recognizes a receivable before it transfers products to the customer, the Group will defer revenue, which is also defined as a contract liability under the new revenue guidance. A contract liability is recorded when the Group’s obligation to transfer goods or services to a customer has not yet occurred but for which the Group has received consideration from the customer. The Group presents such amounts as advances from customers on the consolidated balance sheet. Product Sales The Group selects, purchases and obtains direct control of the goods from its brand partners and/or their authorized distributors and sells goods directly to end consumers through online stores its operates or to secondary distributors in accordance with distribution agreements. Revenue is recognized when consumers or secondary distributors physically accept the products after delivery, which is when the control of products is transferred, and is recorded net of return allowances, value added tax and sales incentives, if any. A majority of the Group’s consumers make online payments through third-party payment platforms when they place orders on the Group’s online stores. The funds will not be released to the Group by these third-party payment platforms until the consumers accept the products on the online platform. Shipping and handling charges paid by customers are included in net revenues. The Group typically does not charge shipping fees on orders exceeding a certain sale amount. Shipping and handling costs incurred by the Group are considered to be fulfillment activities which are presented as part of the Group’s operating expenses. Product Sales Consignment arrangement The Group also enters into arrangement with online platforms, where the Group retains control over the goods until a sale is made to the end consumer. The Group considers the arrangement meet the indicators of consignment arrangement under ASC 606-10-55-80, because (i) The Group does not relinquish control of the products, even though the online platform has physical possession of the goods. The products are considered to be the Group’s own inventory until they are sold to the end consumers; (ii) The Group retains the right to require the return of the goods held with the online platform; (iii) The online platforms have no obligation to pay for the products that are in its physical possession. Revenue under consignment arrangements is recognized when a sale is made to the end customer and control is transferred to the end customer upon their acceptance in accordance with the sales report provided by the online platforms. Such revenues reflect the consideration paid by end consumers and do not take into account the sales commissions the Group pays to the relevant online platform, which are recorded as sales and marketing expenses. Services The Group offers its brand partners and other brand customers marketing solutions tailored to their needs and charge fixed project-based fees, including designing and operating online stores, running online promotional events, organizing online and offline marketing campaigns featuring social media influencers and circulating marketing messages to end consumers. For services provided to customers of the Group, depending on the terms of the contract and the laws that apply to the contract, control of the services may be transferred over time or at a point in time. Control of the services is transferred over time if the Group’s performance: • provides all of the benefits received and consumed simultaneously by the customer; • creates and enhances an asset that the customer controls as the Group performs; or • does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of the services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of services. With respect to the Group’s marketing services, length of the periods over which services are provided are generally within months or less, the Group recognizes such revenues when service is rendered and service report is delivered to the customer (point in time), which marks the time when control of the service output has passed to the customer. Consideration from brand partners of the Group is considered to be in exchange for distinct service that the Group transfers to the brand partners, as i) services provided to brand partners can be sufficiently separable from the Company’s procurement of products from those brand partners ii) consideration from the brand partner represents the standalone selling price of such service, and iii) the fees do not represent reimbursement of costs incurred by the Company to sell the brand partner’s products. The Group accounts for the service in the same way that it accounts for sales to other customers and revenues generated from these service arrangements are recognized on a gross basis and presented as services revenue on the consolidated statements of comprehensive income. Practical expedients and exemption Upon the election of the practical expedient under ASC 340-40-25-4, the incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. For the years ended December 31, 2017, 2018 and 2019, no incremental cost was capitalized as assets. The Group also selected to apply the practical expedients allowed under ASC Topic 606 to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less. For the years ended December 31, 2017, 2018 and 2019, all contracts of the Group were with an original expected duration within one year. Based on the considerations that there is no difference between the amount of promised consideration and the cash selling price of product sales and promised services, in addition the actual length of time between when the Group transfers products or promised services to the consumers and when the consumers pays for those products or services has been within one year, the Group has assessed and concluded that there is no significant financing component in place within its products sales or service arrangements as a practical expedient in accordance with ASC 606-10-32-18. |
Sales Returns | (p) Sales returns The Group offers online consumers an unconditional right of return for a period of seven days upon receipt of products and offers its secondary distributors various rights of return after the acceptance of products. Return allowances, which reduce revenue and cost of sales, are estimated by categories of return policies offered to online customers and secondary distributors, based on historical data the Group has maintained, and subject to adjustments to the extent that actual returns differ or are expected to differ. The Group records liabilities for return allowances in refund obligation of sales returns of “Accrued liabilities and other current liabilities” in the consolidated balance sheet (Note 14) and were US$ 858,536 and US$ 2,422,155 as of December 31, 2018 and 2019, respectively. The Group recorded assets as “Sales return assets” included in “Prepayments and other current assets” in the consolidated balance sheet (Note 8) of US$ 639,846 and US$ 1,802,499 as of December 31, 2018 and 2019 for its right to recover products from customers associated with settling the refund liability. |
Sales Incentives | (q) Sales incentives The Group provides sales rebates to certain third-party online platforms/secondary distributors based on their purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to the third-party online platforms/secondary distributors considering the contracted rebate rates and estimated sales volume based on significant management judgments based on historical experience such as likelihood of reaching the purchase thresholds and sales forecasts, and account for it as a reduction of the transaction price. For the years ended December 31, 2017, 2018 and 2019, sales rebates provided by the Group amounted to US$ 929,339, US$ 2,509,679 and US$ 4,839,595 respectively. |
Value Added Taxes | (r) Value added taxes Value added taxes ("VAT") on sales is calculated at 9% ~16% on revenue from products and 6% on revenue provided from services. The Group reports revenue net of VAT. Subsidiaries and VIEs of the Group that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. |
Cost of Revenue | (s) Cost of revenue consist of cost of product sales of US$ 68,262,115, US$ 128,845,948 and US$ 242,972,621 for the years ended December 31, 2017, 2018 and 2019, respectively, and cost of services of US$ 861,932, US$ 11,307,514 and US$ 14,458,453 for the years ended December 31, 2017, 2018 and 2019, respectively. Cost of product sales comprise the purchase price of products, purchase rebates, shipping charges to receive products from the suppliers when they are embedded in the purchase price and inventory write-downs. Cost of products does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses. Cost of service consists of the advertising and promotion costs, employee wages and benefits in connection with the Group’s provision of promotion and marketing services including fees the Group paid to third party vendors for advertising and promotion on various online and offline channels. |
Rebates | (t) R The Group periodically receives consideration from certain vendors, representing rebates for products sold over a period of time. The Group accounts for the rebates received from its vendors as a reduction to the price it pays for the products purchased. Rebates are earned based on reaching minimum purchased thresholds for a specified period. When volume rebates can be reasonably estimated based on the Group’s past experience, current forecasts and purchase volume, a portion of the rebate is recognized as the Group makes progress towards the purchase threshold. |
Fulfillment Expenses | (u) Fulfillment expenses Fulfillment costs primarily represent warehousing, shipping and handling expenses for dispatching and delivering products to consumers, employee wages and benefits for the relevant personnel, and customs clearance expenses. |
Sales and Marketing Expenses | (v) Sales and marketing expenses primarily consist of advertising costs for the products the Group offers, employee wages and benefits for sales and marketing staff, storefront fees paid to e-commerce platforms, and travel and entertainment expenses. Advertising costs consist primarily of costs for product marketing. The Group expenses all advertising costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2017, 2018 and 2019, advertising and marketing costs totaled US$ 445,256, US$ 573,272 and US$ 560,894, respectively. |
General and Administrative Expenses | (w) General and administrative expenses consist of employee wages and benefits for corporate employees, rental expenses, audit and legal fees, amortization of both intangible assets and leasehold improvement, and other corporate overhead costs. |
Research and Development Expenses | (x) Research and development expenses primarily consist of employee wages and benefits for research and development personnel, general expenses and depreciation expenses associated with research and development activities. |
Lease | (y) - Leases, including leases of offices and warehouses, where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are recognized as an expense on a straight-line basis over the lease term. The Group had no capital leases for any of the years stated herein. - The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) elect for each lease not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component; (ii) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements; and (iii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs. |
Employee Social Security and Welfare Benefits | (z) Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. |
Income Taxes | (aa) Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statements recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under other expenses in its statements of operations and comprehensive income. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended December 31, 2017, 2018 and 2019. As of December 31, 2018 and 2019, the Group did not have any significant unrecognized uncertain tax positions. The Company adopted ASC 740-270-30-36 approach for interim period tax computation and reporting. Interim period tax (or benefit) related to consolidated ordinary income (or loss) for the year to date is computed using one overall estimated annual effective tax rate, except for jurisdiction if a subsidiary anticipates an ordinary loss for the fiscal year or has an ordinary loss for the year to date. |
Government Grants | (ab) Government grants are recognized as other income when received. For the years ended December 31, 2017, 2018 and 2019, the Group recognized government grants of US$ 125,718 US$ 211,411 US$ 463,253 |
Share-Based Compensation | (ac) Share-based compensation costs are measured at the grant date. The share-based compensation expenses have been categorized as either fulfillment expenses, sales and marketing expenses, general and administrative expenses or research and development expenses depending on the job functions of the grantees. For the restricted share units granted with service conditions, compensation expense is recognized using the straight-line method over the requisite service period. Forfeitures are estimated at the time of grant, with such estimate updated periodically and with actual forfeitures recognized currently to the extent they differ from the estimate. For the restricted share units granted with performance conditions whose vesting is contingent upon meeting company-wide performance goals, compensation expenses are recognized using graded vesting method over the requisite For granted with service conditions and the occurrence of an initial public offering (“IPO”) as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service condition will be recorded upon the completion of the IPO, using the graded vesting method. For the restricted share units granted with market condition whose vesting is contingent on the Company’s market value exceeding a specific amount, Monte Carlo simulation has been applied to determine the fair value and requisite service period, compensation expense is recognized using the straight-line method over the estimated requisite service period unless the market condition is satisfied before the end of the initially estimated requisite service period. |
Statutory Reserves | (ad) The Group’s subsidiaries, consolidated VIEs incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”). Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as setting off the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group has not done so. Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances. As the Group’s subsidiaries in PRC had accumulated deficits in their functional currency, RMB, for the years ended December 31, 2017, 2018 and 2019, no statutory reserve was recorded as of December 31, 2018 and 2019. |
Related Parties | (ae) Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Dividends | (af) Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2018 and 2019, respectively. The Group does not have any present plan to pay any dividends on ordinary shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business. |
Earnings/Loss Per Share | (ag) Basic earnings/loss per share is computed by dividing net profit/loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two class method. Using the two class method, net profit/loss is allocated between ordinary shares and other participating securities (i.e. preferred shares) based on their participating rights. Diluted earnings/loss per share is calculated by dividing net profit/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year/period. Dilutive equivalent shares are excluded from the computation of diluted earnings/loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares using the if-converted method, and ordinary shares issuable upon the conversion of the stock options, using the treasury stock method. Except for voting rights, the Class A and Class B ordinary shares have all the same rights and therefore the earning/loss per share for both classes of shares are identical. |
Comprehensive Income | (ah) Comprehensive income is defined as the change in shareholders’ (deficit)/equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders, distributions to shareholders, accretions on convertible redeemable preferred shares and extinguishment of convertible redeemable preferred shares. Comprehensive income is reported in the consolidated statements of comprehensive income. Accumulated other comprehensive income of the Group include the foreign currency translation adjustments. |
Segment Reporting | (ai) Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Group does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Group has only one operating segment and one reportable segment. |
Recently Issued Accounting Pronouncements | (aj) i. New and amended standards adopted by the Group: In February 2016, the FASB issued ASU No. Leases (Topic 842 ) (“ ”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., and lessors). The new standard requires lessees to classify leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized over the lease term based on an effective interest method for financing leases or on a straight-line basis for operating leases. A lessee is also record a and a lease liability for all leases with a term of greater than 12 months regardless of their classification. public entities, the guidance was effective for annual reporting periods beginning after December 15, 2018 and for interim periods within those fiscal years. ASU 2016-02 initially required adoption using a modified retrospective approach, under which all years presented in the financial statements would be prepared under the revised guidance. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), which added an optional transition method under which financial statements may be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities will recognize a cumulative catch-up adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASC 842 using the modified retrospective approach with an effective date of January 1, 2019 for leases that existed on that date. Prior period results continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods. This standard provides a number of optional practical expedients in transition. The Company applied certain practical expedients to leases that commenced prior to the effective date as follows: (i) elect for each lease not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component ; (ii) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company 1. elected not to apply ASC 842 recognition requirements; and (iii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs. In connection with the adoption of ASC 842, on January 1, 2019, the Company recorded an impact of US$ 1,735,966 on its assets and US$ 1,735,966 on its liabilities for the recognition of operating lease right-of-use-assets and operating lease liabilities, respectively, which are primarily related to the lease of the Group’s offices and warehouses. The adoption of ASC 842 did not have a material impact on the Company’s results of operations or cash flows. 1. ii. New and amended standards not yet adopted by the Group: In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), to provide financial statement users with more useful information about expected credit losses. ASU 2016-13 also changes how entities measure credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2023 for the Company, with early adoption permitted. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements and associated disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This standard eliminates, adds and modifies certain disclosure requirements for fair value measurements in ASC 820, Fair Value Measurement, as part of its disclosure framework project. ASU 2018-13 is effective for the Company beginning January 1, 2020. The amendments in ASU 2018-13 that relate to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments in ASU 2018-13 should be applied retrospectively to all periods presented upon their effective date. The adoption of this standard is not expected to have a material impact on the Company’s disclosures. In December 2019, the FASB issued ASU 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company beginning on January 1, 2021. Early adoption of the amendments is permitted. The Company is currently evaluating the impact of ASU 2019-12 on its consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Principal Subsidiaries and VIEs | As of December 31, 2019, the Company’s principal subsidiaries and VIEs are as follows: Name of subsidiaries and VIEs Date of establishment/acquisition Place of incorporation Percentage of direct or indirect ownership Principle activities Subsidiaries of the Company: ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) Established on June 27, 2018 Hong Kong 100.00 % Investment holding Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) Established on December 23, 2011 PRC 100.00 % Product sales and services Jianyikang Health Technology (Shanghai) Co., Limited Established on May 21, 2018 PRC 100.00 % Product sales Ecmoho (Hong Kong) Limited Established on April 1, 2015 Hong Kong 100.00 % Product sales and services Import It Corp. Established on September 4, 2012 BVI 100.00 % Product sales and services Shanghai Tonggou Information Technology Co., Limited Established on May 20, 2013 PRC 100.00 % Product sales and services Yijiasancan (Shanghai) E-commerce Co., Ltd. Established on August 21, 2013 PRC 100.00 % Product sales and services Shanghai Hengshoutang Health Technology Co., Limited Established on April 11, 2016 PRC 70.00 % Product sales Qinghai Hengshoutang Plateau Medicine Co., Limited Acquired on March 21, 2017 PRC 70.00 % Product sales Shanghai Jieshi Technology Co., Limited Acquired on December 16, 2016 PRC 100.00 % Product sales Shanghai ECMOHO Health Technology Co., Limited Established on May 5, 2015 PRC 100.00 % Product sales Hangzhou Duoduo Supply Chain Management Co., Limited Acquired on April 25, 2017 PRC 100.00 % Bonded area warehousing ECMOHO Co., Ltd. (Korea) Established on August 27, 2018 Korea 100.00 % Product sales Yi Ling (Shanghai) Information Technology Co., Limited Established on August 30, 2018 PRC 100.00 % Intercompany services Xianggui (Shanghai) Biotechnology Co., Ltd. Established on September 28, 2018 PRC 60.00 % Product sales and services Shanghai Yuyun Information Technology Co., Ltd. Established on October 15, 2018 PRC 100.00 % Startup Yipinda (Shanghai) Health Technology Co., Ltd. Established on February 27, 2019 PRC 100.00 % Product sales ECMOHO Co., Ltd. (Japan) Established on July 15, 2016 Japan 100.00 % Inactive Variable Interest Entity (“VIE”): Shanghai Yibo Medical Device Co., Ltd (“Yibo or Yibo VIE”)* Established on April 21, 2017 PRC 100.00 % Operates the Company’s own online e-commerce platform Yang Infinity (Shanghai) Biotechnology Co., Limited (“Yang or Yang VIE”) Established on November 15, 2018 PRC 60.00 % Product sales Subsidiary of Variable Interest Entity (“VIE subsidiary”): Yinchuan Xianggui Internet Hospital Co., Ltd Established on May 17, 2019 PRC 60.00 % Product sales |
Summary of Assets, Liabilities, Results of Operations and Cash Flows of VIEs and its Subsidiary | The following table sets forth the assets, liabilities, results of operations and cash flows of VIEs and its subsidiary, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and VIE subsidiary are eliminated in the balances presented below: As of December 31, 2018 2019 US$ US$ Assets Current assets Cash and cash equivalents 11,092 61,456 Amount due from subsidiaries of the Company 21,856 720,588 Inventory — 6,608 Prepayments and other current assets 1,899 — Total current assets 34,847 788,652 Total assets 34,847 788,652 Liabilities Current liabilities Salary and welfare payable 39,585 21,695 Accounts payable — 26,485 Advance from customers — 1,816 Tax payable 1,848 1,010 Amount due to subsidiaries of the Company 399,735 105,342 Accrued liabilities and other current liabilities 8,781 7,238 Total current liabilities 449,949 163,586 Total liabilities 449,949 163,586 Year Ended December 31, 2018 2019 US$ US$ Net revenues 21,384 29,122 Net losses (430,519) (544,953) Year Ended December 31, 2018 2019 US$ US$ Net cash provided by/(used in) operating activities 11,092 (434,616) Net cash provided by financing activities — 484,980 Net increase in cash and cash equivalents 11,092 50,364 |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on the consolidated balance sheet as follows: As of December 31, 2017 2018 2019 US$ US$ US$ Cash and cash equivalents 10,689,462 10,336,467 49,098,841 Restricted cash - 2,628,392 2,000,054 Total 10,689,462 12,964,859 51,098,895 |
Estimated Useful Lives and Residual Rates | The estimated useful lives and residual rates are as follows: Classification Useful years Residual rate Warehouse equipment 3 years 5% Furniture, computer and office equipment 2 - 5 years 0%-5% Leasehold improvement Over the shorter of the expected life of leasehold improvements or the lease term 0% |
Risks and Concentration (Tables
Risks and Concentration (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Schedules of Customers with Greater than 10% of Accounts Receivables | The following table summarized customers with greater than 10% of the accounts receivables: Year Ended December 31, 2018 2019 Customer A 14 % 24 % Customer B 31 % 23 % |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table sets forth a breakdown of cash and cash equivalents by currency denomination and jurisdiction as of December 31, 2018 and 2019: US$ US$ equivalent (RMB) US$ Equivalent (Others) Total in US$ Overseas PRC Overseas PRC Overseas PRC Non VIE VIE Non VIE VIE Non VIE VIE December 31, 2018 3,324,971 359,796 - 1,037,629 3,690,184 11,092 1,912,795 - - 10,336,467 December 31, 2019 44,865,166 103,214 - 997,219 2,177,509 61,456 894,277 - - 49,098,841 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Net | As of December 31, 2018 2019 US$ US$ Accounts receivable, gross 33,979,863 50,063,491 Less: allowance for doubtful accounts (140,335 ) (234,072 ) Accounts receivable, net 33,839,528 49,829,419 |
Summary of Movement of Allowance of Doubtful Accounts | Year ended December 31, 2017 2018 2019 US$ US$ US$ At beginning of period 11,746 78,376 140,335 Addition 79,068 114,913 483,130 Reversal (12,438) (52,954 ) (389,393 ) At end of period 78,376 140,335 234,072 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following: As of December 31, 2018 2019 US$ US$ Products 53,628,508 49,621,935 Packaging materials and others 54,883 272,579 Total 53,683,391 49,894,514 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense And Other Assets [Abstract] | |
Schedule of Prepayments and Other Current Assets | The prepayments and other current assets consist of the following: As of December 31, 2018 2019 US$ US$ Prepayments for products procurement (a) 7,645,974 11,445,152 Prepayments for service procurement (b) 17,761 2,102,793 Prepaid online platform promotion fees (c) 493,418 1,131,082 Deposits 1,355,401 1,531,033 Loan deposits (Note 13) 437,114 430,034 Value-added tax (“VAT”) recoverable (d) 60,369 2,354,309 Employee advances (e) 49,550 85,495 Rental prepayments 157,046 107,521 Sales return assets 639,846 1,802,499 Others (f) 402,931 376,344 Total 11,259,410 21,366,262 (a) Prepayments for products procurement represent cash prepaid to the Group’s third party brand partners for the procurement of products. (b) Prepayments for service procurement represent cash prepaid to the Group’s third party suppliers for the procurement of services in connection with the Group’s service revenue. These services have not been rendered and will be provided within one year from the respective balance sheet dates. (c) Prepaid promotion fees represent prepayments made to online platforms for future services to promote the Group’s products through online advertising. Such online platforms charge monthly expenses based on activities during the month, and once confirmed by the Group, the monthly expenses will be deducted from the prepayments made by the Group. (d) Value-added tax recoverable represented the balances that the Group can utilize to deduct its value-added tax liabilities within the next 12 months. (e) As of December 31, 2018 and 2019, all of the employee advances were business related, interest-free, not collateralized and will be repaid or settled within one year from the respective balance sheet dates. (f) Others mainly represent prepayments made by the Group to certain of its logistic service providers. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: As of December 31, 2018 2019 US$ US$ Cost: Warehouse equipment 952,104 983,218 Furniture and office equipment 647,752 885,327 Leasehold improvements 385,726 614,302 Total cost 1,985,582 2,482,847 Less: Accumulated depreciation (509,070 ) (1,053,868 ) Property and equipment, net 1,476,512 1,428,979 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Components of Lease Expenses | (a) The components of lease expenses were as follows: Year ended December 31, 2019 US$ Lease cost: Amortization of right-of-use assets 1,529,913 Interest of lease liabilities 106,324 Expenses for short-term lease within 12 months 187,741 Total lease cost 1,823,978 |
Summary of Supplemental Cash Flow Information | (b) Supplemental cash flow information related to leases was as follows: Year ended December 31, 2019 US$ Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases 1,494,644 Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities 680,773 |
Schedule of Supplemental Balance Sheet Information Related to Leases | (c) Supplemental balance sheet information related to leases was as follows: December 31, 2019 US$ Operating Leases Operating lease right-of-use assets 1,203,961 Operating lease liability, current (1,052,046 ) Operating lease liabilities, non-current (69,347 ) Total operating lease liabilities (1,121,393 ) |
Schedule of Weighted Average Operating Leases | December 31, 2019 Weighted-average remaining lease term Operating leases 1.01 years Weighted-average discount rate Operating leases 6.2 % |
Schedule of Maturities of Lease Liabilities | (d) Maturities of lease liabilities were as follows: December 31, 2019 US$ 2020 1,079,860 2021 70,080 Total undiscounted lease payments 1,149,939 Less: imputed interest (28,546 ) Total lease liabilities 1,121,393 |
Schedule of Future Minimum Rental Payments for Operating Leases | (e) Future minimum lease payments for the Company’s operating leases were as follows: December 31, 2018 US$ 2019 1,698,358 2020 1,245,774 2021 70,080 2022 and thereafter - 3,014,212 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | As of December 31, 2018 2019 US$ US$ Cost: Business license (a) 461,086 453,617 Trademark (b) (c) 1,370,920 1,388,361 Software 518,713 737,184 Total cost 2,350,719 2,579,162 Less: Accumulated amortization (848,488 ) (1,267,509 ) Intangible assets, net 1,502,231 1,311,653 Intangible assets of the Group were mainly as follows: (a) In April 2017, the Group consummated an acquisition of all the equity interest of Hangzhou Duoduo Supply Chain Management Co., Limited with a total cash consideration of RMB 1.9 million (US$ 295,790). (b) In April 2016, non-controlling interest shareholders of Shanghai Heng Shou Tang Health Technology Co., Limited (“Shanghai Heng Shou Tang”) contributed trademarks as their investment in Shanghai Heng Shou Tang. (c) On December 16, 2016, the Group consummated a n acquisition of 70% of the equity interest of Shanghai Jieshi Technology Co., Limited (“Shanghai Jieshi”) with the cash consideration of RMB 0.7 million (US$ 100,908). Management concluded such transaction as a business acquisition. The financial results of Shanghai Jieshi have been consolidated by the Company since the acquisition date. |
Summary of Future Amortization Expenses | As of December 31, 2019, amortization expenses related to the intangible assets for future periods were estimated to be as follows: December 31, 2019 US$ 2020 478,476 2021 454,246 2022 186,679 2023 117,285 2024 and thereafter 74,967 1,311,653 |
Other Non-current Assets (Table
Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Non-current Assets | Other non-current assets consisted of the following: As of December 31, 2018 2019 US$ US$ Online store and other deposits 1,167,807 1,308,858 Prepayments for royalty fee (a) - 218,325 Prepayments for equipment and software procurement 83,199 11,813 Deferral of initial public offering costs 522,072 - Rental prepayments 217,188 - Total 1,990,266 1,538,996 (a) In June 2019, the Group entered into agreement with a third party business partner for the usage of the business partner's images of characters on the products to be sold by the Group during the period from September 1, 2019 to September 30, 2020. Pursuant to the agreement, the Group shall pay the business partner royalty fees based on certain percentage of the sales of related products during the contract period not lower than an agreed minimum royalty fee. The Group prepaid the minimum royalty fee to the business partner with the amount of US$ 339,215 in June 2019 which will be used to settle its future royalty fees. Prepaid royalty fee of US$ 96,424 was amortized and recognized as sales and marketing expenses in the year of 2019. |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued liabilities and other current liabilities consist of the following: As of December 31, 2018 2019 US$ US$ Logistics expenses payables 824,743 1,103,398 Deposits from distributors 292,641 312,469 Redeemable non-controlling interests acquisition payables (Note 17) - 3,120,583 Business acquisition payables 43,711 43,003 Payables for service procurement in connection with service revenue 1,611,123 2,284,011 Refund obligation of sales return 858,536 2,422,155 Others 663,616 1,231,369 Total 4,294,370 10,516,988 |
Tax Payable (Tables)
Tax Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tax Payable [Abstract] | |
Schedule of Tax Payable | As of December 31, 2018 2019 US$ US$ Value added tax liabilities 1,149,913 1,237,365 Income tax payable 1,672,196 1,698,132 Urban maintenance and construction tax 31,324 14,160 Surtax for education expenses 13,525 7,555 Individual income tax withholding 35,432 6,052 Others 4,582 79,570 Total 2,906,972 3,042,834 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Preferred Shares Activities | The Company’s Preferred Shares activities for the years ended December 31, 2017, 2018 and 2019 are summarized below: Round A Preferred Shares Round B Preferred Shares Class A-1 Preferred Shares Class A-2 Preferred Shares Series A Preferred Shares Number of shares Amount (US$) Number of shares Amount (US$) Number of shares Amount (US$) Number of shares Amount (US$) Number of shares Amount (US$) Balances as of January 1, 2017 19,038,000 14,537,499 13,663,700 25,463,814 - - - - - - Accretion on convertible redeemable preferred shares to redemption value - 1,559,285 - 2,412,996 - - - - - - Balances as of December 31, 2017 19,038,000 16,096,784 13,663,700 27,876,810 - - - - - - Accretion on convertible redeemable preferred shares to redemption value - Before Reorganization 1,018,493 - 1,574,737 - - *Reorganization - Extinguishment of 8.36% Round A preferred shares and exchanged into Class A Ordinary Shares (9,519,000 ) (8,754,168 ) - - - - - - - - *Reorganization - Preferred shares exchanged into redeemable non-controlling interests (Note 17) - - (2,846,600 ) (6,167,333 ) - - - - - - *Reorganization - Extinguishment of Round A and Round B preferred shares (9,519,000 ) (8,361,109 ) (10,817,100 ) (23,284,214 ) 9,519,000 19,495,152 10,817,100 26,172,432 - - *Reorganization - Subscription receivables - - - (89,222 ) - - Issuance of convertible redeemable preferred shares, net of issuance costs - - - - - - - - 7,938,915 22,429,967 Accretion on convertible redeemable preferred shares to redemption value - After Reorganization - - - - - - - - - 445,177 Balances as of December 31, 2018 - - - - 9,519,000 19,495,152 10,817,100 26,083,210 7,938,915 22,875,144 *These were transactions occurred during the Reorganization process of the Group, details please refer to Note 1(b), Note 16 and Note 17. The Company’s Preferred Shares activities for the years ended December 31, 2017, 2018 and 2019 are summarized below (continued): Round A Preferred Shares Round B Preferred Shares Class A-1 Preferred Shares Class A-2 Preferred Shares Series A Preferred Shares Number of Amount Number of Amount Number of Amount Number of Amount Number of Amount shares (US$) shares (US$) shares (US$) shares (US$) shares (US$) *Reorganization - Subscription receivables - - - - - - - 89,222 - - Accretion on convertible redeemable preferred shares to redemption value - After Reorganization - - - - - - - - - 1,022,461 Conversion of preferred shares to Class A ordinary shares - - - - (9,519,000 ) (19,495,152 ) (10,817,100 ) (26,172,432 ) (7,938,915 ) (23,897,605 ) Balances as of December 31, 2019 - - - - - - - - - - *These were transactions occurred during the Reorganization process of the Group, details please refer to Note 1(b), Note 16 and Note 17. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interests and Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of Change in Carrying Amount of Redeemable Non-Controlling Interests | The change in the carrying amount of redeemable non-controlling interests for the year ended December 31, 2017, 2018 and 2019 is as follows: Redeemable non-controlling interests US$ Beginning Balance at January 1, 2018 - Preferred shares exchanged into redeemable non-controlling interests 6,167,333 Net income attributable to redeemable non-controlling interests 96,301 Accretion to redemption value of redeemable non-controlling interests 129,896 Ending Balance at December 31, 2018 6,393,530 Net loss attributable to redeemable non-controlling interests (27,068 ) Accretion to redemption value of redeemable non-controlling interests 311,757 Acquisition of redeemable non-controlling interests (6,678,219 ) Ending Balance at December 31, 2019 - |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Schedule of Revenues | The Group's revenues for the respective periods are detailed as follows: Year ended December 31, 2018 2019 US$ US$ Product Sales 167,136,099 273,202,495 Product Sales - Consignment arrangement 8,961,638 28,896,028 Services 22,917,299 27,381,393 Total 199,015,036 329,479,916 |
Schedule of Breakdown of Product Sales Revenue by Product Category | The Group’s breakdown of product sales revenue by product category for the respective periods are detailed as follow: Year ended December 31, 2018 2019 US$ US$ Health Supplements and Food 80,317,631 116,975,344 Mother and Child Care Products 69,269,605 131,926,890 Personal Care Products 11,289,494 24,293,333 Others 15,221,007 28,902,946 Total 176,097,737 302,098,523 |
Finance Expense, Net (Tables)
Finance Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Finance Expense Net [Abstract] | |
Schedule of Finance Expense, Net | Year ended December 31, 2017 2018 2019 US$ US$ US$ Interest expense (216,576 ) (978,477 ) (2,605,167 ) Interest income 71,765 52,934 91,320 Total (144,811 ) (925,543 ) (2,513,847 ) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Summary of Activities of Restricted Stock Units | The following table summarizes activities of the Company’s restricted share units under the 2018 and 2019 Plan Number of Restricted Share Units Outstanding Weighted Average Grant Date Fair Value US$ Unvested at January 1, 2018 - - Granted 3,971,453 1.96 Unvested at December 31, 2018 3,971,453 1.96 Granted 472,220 2.64 Vested (746,660 ) 1.96 Forfeited (1,033,446 ) 2.13 Unvested at December 31, 2019 2,663,567 1.98 |
Summary of Fair Value of Each Restricted Share Units Granted With Market Condition | The fair value of each restricted share units granted with market condition under the Company’s 2018 Plan during the year ended December 31, 2018 was estimated on the date of grant using Monte Carlo model with the assumptions (or ranges thereof) in the following table: Year ended December 31, 2018 US$ Expected volatility (a) 50.0 % Risk-free interest rate (b) 4.1 % Expected dividend yield (c) 0 % Contractual term 10 Notes: (a) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (b) The risk-free interest rate of periods within the contractual life of the share option is based on the market yield of the U.S. treasury bonds with a maturity life equal to the expected life to expiration. (c) The Company has no history or expectation of paying dividends on its ordinary shares. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Reconciliation Between Effective Income Tax Rate And PRC Statutory Income Tax Rate | A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Year Ended December 31, 2017 2018 2019 PRC statutory income tax rates 25.00 % 25.00 % 25.00 % Change in valuation allowance (23.48 %) (15.08 %) 86.99 % Effect of permanent differences 5.78 % 2.55 % 25.70 % Additional tax deduction for qualified research and development expenses - (2.68 %) (10.84 %) Effect of tax holiday* - - (115.48 %) Difference in tax rate of subsidiaries outside the PRC (4.43 %) (3.44 %) 0.06 % Total 2.87 % 6.35 % 11.43 % |
Summary of Current and Deferred Portions of Income Tax Expenses | The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income are as follows: Year Ended December 31, 2017 2018 2019 US$ US$ US$ Current income tax expense 224,668 1,503,504 56,898 Deferred tax expense/(benefit) (144,092 ) (1,086,380 ) 192,741 Income tax expense, net 80,576 417,124 249,639 |
Summary of Deferred Tax Assets | The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2018 and 2019 are as follows: Year Ended December 31, 2018 2019 US$ US$ Deferred tax assets: Tax loss carry-forwards 2,030,373 3,706,113 Inventory provision 137,652 66,042 Allowance for doubtful accounts 24,033 46,883 Unrealized Profit 3,719 6,473 Other deductible temporary difference - 2,112 Total deferred tax assets 2,195,777 3,827,623 Less: Valuation allowance (1,139,566 ) (3,039,926 ) Net deferred tax assets 1,056,211 787,697 Deferred tax liabilities: Recognition of intangible assets arising from asset acquisition and business combination (210,076 ) (138,406 ) Net deferred tax liabilities (210,076 ) (138,406 ) |
Summary of Movement of Valuation Allowance | Movement of valuation allowance is as follows: Year Ended December 31, 2017 2018 2019 US$ US$ US$ Beginning balance 2,788,084 2,129,655 1,139,566 Current year additions 249,225 423,742 2,108,356 Reversal of valuation allowances (907,654 ) (1,413,831 ) (207,996 ) Ending balance 2,129,655 1,139,566 3,039,926 |
Related Party transactions (Tab
Related Party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Transactions and Balances Amount Due to Related Parties | Transactions with related parties and balances amount due to related parties were as follows: Year Ended December 31, 2017 2018 2019 US$ US$ US$ Transaction with related parties Repayment of advances to related parties (ii) (1,033,740) (2,474,371 ) (10,593,662 ) Proceeds of advances from related parties (ii) 15,304 8,964,847 9,436,151 Proceeds of borrowings from related parties (iv) 3,000,000 3,000,000 6,000,000 Repayment of borrowings from related parties(iv) - - (2,000,000 ) Reimbursement to related parties 180,152 201,907 331,956 Acquisition of equity interests of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) - (18,737,426 ) - Subscription fees from the Founders of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) - 15,261,676 - As of December 31, 2018 2019 US$ US$ Balance amount with related parties Subscription receivables due from Founders of ECMOHO Shanghai for Reorganization purpose (i) 9,261,300 - Payable due to related parties (ii) (6,756,620 ) (5,511,642 ) Payables due to shareholders of ECMOHO Shanghai for Reorganization purpose (iii) (4,261,580 ) - Borrowings and interests due from related parties (iv) (6,405,000 ) (10,721,819 ) (i) As described in Note 1(b), total subscription fee of US$ 15,261,676 for Class A and Class B Ordinary Shares was received by US$ 6,000,376 and US$ 9,261,300 during the years ended December 31, 2018 and 2019, respectively. As of December 31, 2018, the remaining consideration of US$ 9,261,300 was presented as subscriptions receivable, a contra-equity balance. (ii) The Group drawn down interest free advances from Founders, members of Founders immediate families and special purpose vehicles controlled by the Founders and Shareholders during the periods presented. As of December 31, 2018 and 2019, payables due to these related parties amounted to US$ 6,756,620 and US$ 5,511,642, respectively. (iii) As described in Note 1(b), on July 8, 2018, ECMOHO HK legally acquired 97.5% of the equity interest of ECMOHO Shanghai from the Founders and most of the Investors, except for 2.5% equity interests held by certain of the Investors (“NCI holders”), with the consideration of US$ 18,737,426. In 2018, consideration of US$ 14,475,846 was paid, and the outstanding consideration of US$ 4,261,580 was presented as amounts due to related parties on the consolidated balance sheets as of December 31, 2018. The remaining consideration was fully paid in 2019. (iv) On September 18 and October 17, 2017, April 11, 2018 and November 12, 2019, the Group entered into loan agreements with a fully owned subsidiary of one of the investors of Class A-2 (Round B) preferred shares, who became Class A ordinary shareholder after the Company’s IPO in November 2019, with the principle amount of US$ 1,500,000, US$ 1,500,000, US$ 3,000,000 and US$ 2,000,000 and interest rate of 6.00%, 6.00%, 6.00% and 8.00%, respectively. Such borrowings shall be repaid upon the lender’s request. On December 26, 2019, the Group entered into loan agreements with the fully owned subsidiary of one of Class A ordinary shareholders, with the principle amount of US$ 2,000,000 and interest rate of 10.00%, and such borrowing has been repaid subsequently on February 21, 2020. |
Basic and Diluted Net Earning_2
Basic and Diluted Net Earnings/(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Earnings/(Loss) per Share and Diluted Earnings/(Loss) per Share | Basic earnings/(loss) per share and diluted earnings/(loss) per share have been calculated in accordance with ASC 260 on computation of earnings per share for the years ended December 31, 2017, 2018 and 2019 as follows: Year Ended December 31, 2017 2018 2019 Numerator: Net income attributable to ECMOHO Limited 2,825,457 6,123,990 2,296,555 Accretion on convertible redeemable preferred shares to redemption value (Note 15) (3,972,281 ) (3,038,407 ) (1,022,461 ) Accretion to redemption value of redeemable non-controlling interests (Note 17) - (129,896 ) (311,757 ) Extinguishment of convertible redeemable preferred shares (Note 16) - (24,763,245 ) - Net income/(loss) attributable to ordinary shareholders-Basic (1,146,824 ) (21,807,558 ) 962,337 Net income/(loss) attributable to ordinary shareholders-Diluted (1,146,824 ) (21,807,558 ) 962,337 Denominator: Denominator for basic (loss)/earnings per share weighted-average ordinary shares outstanding 81,162,400 84,970,000 98,104,216 Dilutive impact of Class A-1 preferred shares conversion - - 7,954,232 Dilutive impact of Class A-2 preferred shares conversion - - 9,038,947 Dilutive impact of restricted share units - - 547,469 Denominator for dilutive earnings/(loss) per share weighted-average ordinary shares outstanding 81,162,400 84,970,000 115,644,864 Basic earnings/(loss) per ordinary share: (0.01 ) (0.26 ) 0.01 Diluted earnings/(loss) per ordinary share: (0.01 ) (0.26 ) 0.01 Denominator: Denominator for basic earnings/(loss) per ADS weighted-average ADS outstanding 20,290,600 21,242,500 24,526,054 Denominator for dilutive earnings/(loss) per share weighted-average ADS outstanding 20,290,600 21,242,500 28,911,216 Basic earnings/(loss) per ADS: (0.06 ) (1.03 ) 0.04 Diluted earnings/(loss) per ADS: (0.06 ) (1.03 ) 0.03 |
Schedule of Share Equivalent Excluded from Computation of Diluted Net Earnings/(Loss) per Ordinary Share | The following ordinary shares equivalent were excluded from the computation of diluted net earnings/(loss) per ordinary share for the periods presented because including them would have had an anti-dilutive effect: Year Ended December 31, 2017 2018 2019 Preferred shares — weighted average 32,701,700 30,265,462 6,633,889 Restricted share units — weighted average — 95,446 — |
Organization and Principal Ac_3
Organization and Principal Activities - Summary of Principal Subsidiaries and VIEs (Details) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2019 | |
ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Jun. 27, 2018 | |
Place of incorporation | Hong Kong | |
Percentage of direct or indirect ownership | 100.00% | 100.00% |
Principle activities | Investment holding | |
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Dec. 23, 2011 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales and services | |
Jianyikang Health Technology (Shanghai) Co., Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | May 21, 2018 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales | |
Ecmoho (Hong Kong) Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Apr. 1, 2015 | |
Place of incorporation | Hong Kong | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales and services | |
Import It Corp. | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Sep. 4, 2012 | |
Place of incorporation | BVI | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales and services | |
Shanghai Tonggou Information Technology Co., Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | May 20, 2013 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales and services | |
Yijiasancan (Shanghai) E-commerce Co., Ltd. | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Aug. 21, 2013 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales and services | |
Shanghai Hengshoutang Health Technology Co., Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Apr. 11, 2016 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 70.00% | |
Principle activities | Product sales | |
Shanghai ECMOHO Health Technology Co., Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | May 5, 2015 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales | |
ECMOHO Co., Ltd. (Korea) | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Aug. 27, 2018 | |
Place of incorporation | Korea | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales | |
Yi Ling (Shanghai) Information Technology Co., Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Aug. 30, 2018 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Intercompany services | |
Xianggui (Shanghai) Biotechnology Co., Ltd. | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Sep. 28, 2018 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 60.00% | |
Principle activities | Product sales and services | |
Shanghai Yuyun Information Technology Co., Ltd. | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Oct. 15, 2018 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Startup | |
Yipinda (Shanghai) Health Technology Co., Ltd. | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Feb. 27, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales | |
ECMOHO Co., Ltd. (Japan) | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment | Jul. 15, 2016 | |
Place of incorporation | Japan | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Inactive | |
Shanghai Yibo Medical Device Co., Ltd (“Yibo or Yibo VIE”) | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment, VIE | Apr. 21, 2017 | |
Place of incorporation, VIE | PRC | |
Percentage of direct or indirect ownership, VIE | 100.00% | |
Principle activities, VIE | Operates the Company’s own online e-commerce platform | |
Yang Infinity Shanghai Biotechnology Co., Limited (“Yang or Yang VIE”) | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment, VIE | Nov. 15, 2018 | |
Place of incorporation, VIE | PRC | |
Percentage of direct or indirect ownership, VIE | 60.00% | |
Principle activities, VIE | Product sales | |
Yinchuan Xianggui Internet Hospital Co., Ltd | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of establishment, VIE | May 17, 2019 | |
Place of incorporation, VIE | PRC | |
Percentage of direct or indirect ownership, VIE | 60.00% | |
Principle activities, VIE | Product sales | |
Qinghai Hengshoutang Plateau Medicine Co., Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of acquisition | Mar. 21, 2017 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 70.00% | |
Principle activities | Product sales | |
Shanghai Jieshi Technology Co.,Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of acquisition | Dec. 16, 2016 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Product sales | |
Hangzhou Duoduo Supply Chain Management Co., Limited | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Date of acquisition | Apr. 25, 2017 | |
Place of incorporation | PRC | |
Percentage of direct or indirect ownership | 100.00% | |
Principle activities | Bonded area warehousing |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Details) - USD ($) | Sep. 27, 2018 | Aug. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Apr. 30, 2016 | Aug. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 02, 2018 | Apr. 30, 2018 |
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Cash consideration | $ 18,737,426 | |||||||||||||
Cash payments for acquisition of equity interests | $ 4,261,580 | $ 14,475,846 | ||||||||||||
Cash payments for acquisition of equity interests outstanding | 4,261,580 | |||||||||||||
Exclusive Technology Consulting and Service Agreement | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Agreement termination notice period | 90 days | |||||||||||||
Agreement period | 10 years | |||||||||||||
Agreement automatic renewal period | 10 years | |||||||||||||
ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Ownership percentage | 100.00% | 100.00% | ||||||||||||
Cash consideration | $ 3,475,750 | $ 18,737,426 | ||||||||||||
ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | August Two Thousand Eighteen Reorganization | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Cash payments for acquisition of equity interests | $ 9,261,300 | 6,000,376 | ||||||||||||
Cash payments for acquisition of equity interests outstanding | 9,261,300 | |||||||||||||
ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | September Two Thousand And Eighteen | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Cash payments for acquisition of equity interests | $ 89,222 | 3,386,528 | ||||||||||||
Cash payments for acquisition of equity interests outstanding | $ 89,222 | |||||||||||||
ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | Founders | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Cash consideration | $ 15,261,676 | |||||||||||||
Founders | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 8.36% | 8.36% | ||||||||||||
Founders | ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 8.36% | 8.36% | ||||||||||||
ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Ownership percentage | 97.50% | |||||||||||||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 2.50% | 8.36% | ||||||||||||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | Founders | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 8.36% | |||||||||||||
Round A Investors | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Capital contribution from investors | $ 13,081,880 | $ 13,081,880 | ||||||||||||
Percentage of exchange equity interests | 19.00% | |||||||||||||
Round A Investors | Founders | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 8.36% | |||||||||||||
Round B Investors | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Capital contribution from investors | $ 24,000,000 | $ 24,000,000 | ||||||||||||
Percentage of exchange equity interests | 12.00% | |||||||||||||
Class A Ordinary Shares | ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | Founders | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 9,519,000 | |||||||||||||
Class A Ordinary Shares | Founders | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 9,519,000 | |||||||||||||
Class A Ordinary Shares | Founders | Third Party Investors | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 8,880,894 | |||||||||||||
Class A Ordinary Shares | Founders | ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 9,519,000 | |||||||||||||
Class A Ordinary Shares | Founders | ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | Third Party Investors | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 8,880,894 | |||||||||||||
Class B Ordinary Shares | ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | Founders | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 75,150,400 | |||||||||||||
Class A-1 Ordinary Shares | Round A and Round B Investors | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 9,519,000 | |||||||||||||
Class A-1 Ordinary Shares | ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | Round A and Round B Investors | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 9,519,000 | |||||||||||||
Class A-2 Ordinary Shares | Round A and Round B Investors | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 10,817,100 | |||||||||||||
Class A-2 Ordinary Shares | ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | Round A and Round B Investors | ||||||||||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | 10,817,000 |
Organization and Principal Ac_5
Organization and Principal Activities - Summary of Assets, Liabilities, Results of Operations and Cash Flows of VIEs and its Subsidiary (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 49,098,841 | $ 10,336,467 | $ 10,689,462 |
Inventories, net | 49,894,514 | 53,683,391 | |
Prepayments and other current assets | 21,366,262 | 11,259,410 | |
Total current assets | 172,189,090 | 111,747,188 | |
Total assets | 178,460,376 | 117,772,408 | |
Current liabilities | |||
Salary and welfare payable | 718,698 | 1,751,571 | |
Accounts payable | 26,439,191 | 23,539,964 | |
Advances from customers | 1,043,004 | 2,957,026 | |
Tax payable | 3,042,834 | 2,906,972 | |
Amounts due to related parties | 16,233,461 | 17,423,200 | |
Accrued liabilities and other current liabilities | 10,516,988 | 4,294,370 | |
Total current liabilities | 93,562,175 | 74,829,252 | |
Total liabilities | 93,769,928 | 75,147,922 | |
Total net revenues | 329,479,916 | 199,015,036 | 98,237,569 |
Net income | 1,934,898 | 6,149,867 | 2,723,638 |
Net cash provided by/(used in) operating activities | (14,188,945) | (40,755,516) | (2,443,857) |
Net cash provided by financing activities | 54,337,056 | 44,036,300 | 1,583,214 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 38,134,036 | 2,275,397 | $ (1,389,346) |
VIE | |||
Current assets: | |||
Cash and cash equivalents | 61,456 | 11,092 | |
Amount due from subsidiaries of the Company | 720,588 | 21,856 | |
Inventories, net | 6,608 | ||
Prepayments and other current assets | 1,899 | ||
Total current assets | 788,652 | 34,847 | |
Total assets | 788,652 | 34,847 | |
Current liabilities | |||
Salary and welfare payable | 21,695 | 39,585 | |
Accounts payable | 26,485 | ||
Advances from customers | 1,816 | ||
Tax payable | 1,010 | 1,848 | |
Amounts due to related parties | 105,342 | 399,735 | |
Accrued liabilities and other current liabilities | 7,238 | 8,781 | |
Total current liabilities | 163,586 | 449,949 | |
Total liabilities | 163,586 | 449,949 | |
Total net revenues | 29,122 | 21,384 | |
Net income | (544,953) | (430,519) | |
Net cash provided by/(used in) operating activities | (434,616) | 11,092 | |
Net cash provided by financing activities | 484,980 | ||
Net increase/(decrease) in cash, cash equivalents and restricted cash | $ 50,364 | $ 11,092 |
Principal Accounting Policies -
Principal Accounting Policies - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Principle Accounting Policies [Line Items] | ||||||
Exchange rate translation with USD | ¥ | ¥ 6.9762 | ¥ 6.8632 | ||||
Deferred offering costs | $ 0 | $ 522,072 | ||||
Contract asset | 0 | 0 | ||||
Incremental costs capitalized | $ 0 | 0 | $ 0 | |||
unconditional right of return period in days | 7 days | |||||
Sales return assets | $ 1,802,499 | 639,846 | ||||
Sales rebates | $ 4,839,595 | 2,509,679 | 929,339 | |||
Percentage of value added taxes on revenue from services | 6.00% | |||||
Cost of revenue | $ 257,431,074 | 140,153,462 | 69,124,047 | |||
Advertising and marketing costs | 560,894 | 573,272 | 445,256 | |||
Government grants | 463,253 | 211,411 | 125,718 | |||
Statutory reserve | 0 | 0 | ||||
Dividends declared | $ 0 | 0 | ||||
Number of operating segments | Segment | 1 | |||||
Number of reportable segments | Segment | 1 | |||||
Total right-of-use assets | $ 1,203,961 | |||||
Total lease liabilities | 1,121,393 | |||||
ASU 2016-02 | ||||||
Principle Accounting Policies [Line Items] | ||||||
Total right-of-use assets | $ 1,735,966 | |||||
Total lease liabilities | $ 1,735,966 | |||||
Product Sales | ||||||
Principle Accounting Policies [Line Items] | ||||||
Cost of revenue | 242,972,621 | 128,845,948 | 68,262,115 | |||
Services | ||||||
Principle Accounting Policies [Line Items] | ||||||
Cost of revenue | 14,458,453 | 11,307,514 | $ 861,932 | |||
Accrued Liabilities and Other Current Liabilities | ||||||
Principle Accounting Policies [Line Items] | ||||||
Refund obligation of sales return | 2,422,155 | 858,536 | ||||
Prepayments and Other Current Assets | ||||||
Principle Accounting Policies [Line Items] | ||||||
Sales return assets | $ 1,802,499 | $ 639,846 | ||||
Minimum | ||||||
Principle Accounting Policies [Line Items] | ||||||
Percentage of value added taxes on sales revenue from products | 9.00% | |||||
Percentage of after tax net income to be allocated to general reserve under PRC law | 10.00% | |||||
Maximum | ||||||
Principle Accounting Policies [Line Items] | ||||||
Percentage of value added taxes on sales revenue from products | 16.00% | |||||
Percentage of required general reserve registered capital ratio to de force compulsory net profit allocation to general reserve | 50.00% | |||||
Purchased Software | ||||||
Principle Accounting Policies [Line Items] | ||||||
Intangible asset, useful life | 5 years | |||||
Purchased Trademark and Business License | Minimum | ||||||
Principle Accounting Policies [Line Items] | ||||||
Intangible asset, useful life | 5 years | |||||
Purchased Trademark and Business License | Maximum | ||||||
Principle Accounting Policies [Line Items] | ||||||
Intangible asset, useful life | 10 years |
Principal Accounting Policies_3
Principal Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 49,098,841 | $ 10,336,467 | $ 10,689,462 | |
Restricted cash | 2,000,054 | 2,628,392 | ||
Total | $ 51,098,895 | $ 12,964,859 | $ 10,689,462 | $ 12,078,808 |
Principal Accounting Policies_4
Principal Accounting Policies - Estimated Useful Lives and Residual Rates (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Warehouse Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Residual rate | 5.00% |
Leasehold Improvement | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | Over the shorter of the expected life of leasehold improvements or the lease term |
Residual rate | 0.00% |
Minimum | Furniture, Computer and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 2 years |
Residual rate | 0.00% |
Maximum | Furniture, Computer and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate | 5.00% |
Risks and Concentration - Addit
Risks and Concentration - Additional Information (Detail) - Customer Concentration Risk - Net Revenue | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | 17.00% | 14.00% |
Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | ||
Third Party Online Platform | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 23.00% | 34.00% | 52.00% |
Risks and Concentration - Sched
Risks and Concentration - Schedules of Customers with Greater than 10% of Accounts Receivables (Detail) - Accounts Receivable - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 24.00% | 14.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 23.00% | 31.00% |
Significant Equity Transactio_2
Significant Equity Transactions - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2019USD ($)sharesVote | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Class A Ordinary Shares | |||
Significant Equity Transactions [Line Items] | |||
Shares issued in IPO | 18,700,000 | 18,700,000 | |
Preferred shares, conversion basis | one-for-one basis | ||
Preferred shares conversion ratio | 100.00% | ||
Shares issued upon conversion of preferred shares | 20,336,100 | 29,336,099 | 9,519,000 |
Number of voting rights | Vote | 1 | ||
Class A Ordinary Shares | Average Basis | |||
Significant Equity Transactions [Line Items] | |||
Preferred shares, conversion basis | 1-for-1.13 | ||
Preferred shares conversion ratio | 113.00% | ||
Shares issued upon conversion of preferred shares | 8,999,999 | ||
Class A1 Preferred Shares | |||
Significant Equity Transactions [Line Items] | |||
Convertible preferred shares | 9,519,000 | ||
Class A2 Preferred Shares | |||
Significant Equity Transactions [Line Items] | |||
Convertible preferred shares | 10,817,100 | ||
Series A Preferred Shares | |||
Significant Equity Transactions [Line Items] | |||
Convertible preferred shares | 7,938,915 | (7,938,915) | |
Shares issued upon conversion of preferred shares | 7,938,915 | ||
Class B Ordinary Shares | |||
Significant Equity Transactions [Line Items] | |||
Number of voting rights | Vote | 10 | ||
American Depositary Shares ("ADS") | Initial Public Offering | |||
Significant Equity Transactions [Line Items] | |||
Shares issued in IPO | 4,675,000 | ||
Net proceeds from IPO | $ | $ 35 | ||
American Depositary Shares ("ADS") | Underwriters' Over Allotment Option | |||
Significant Equity Transactions [Line Items] | |||
Shares issued in IPO | 300,000 | ||
American Depositary Shares ("ADS") | Class A Ordinary Shares | |||
Significant Equity Transactions [Line Items] | |||
Number of ordinary shares representing for each American Depositary shares | 4 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedules of Cash and Cash Equivalents (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019HKD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018HKD ($) | Dec. 31, 2017USD ($) |
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 49,098,841 | $ 10,336,467 | $ 10,689,462 | ||||
VIE | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 61,456 | 11,092 | |||||
Overseas | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 44,865,166 | ¥ 997,219 | $ 894,277 | 3,324,971 | ¥ 1,037,629 | $ 1,912,795 | |
China | Non VIE | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 103,214 | 2,177,509 | $ 359,796 | 3,690,184 | |||
China | VIE | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | ¥ | ¥ 61,456 | ¥ 11,092 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 50,063,491 | $ 33,979,863 |
Less: allowance for doubtful accounts | (234,072) | (140,335) |
Accounts receivable, net | $ 49,829,419 | $ 33,839,528 |
Accounts Receivable, Net - Sc_2
Accounts Receivable, Net - Schedule Movement of Allowance of Doubtful Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Beginning balance | $ 140,335 | $ 78,376 | $ 11,746 |
Addition | 483,130 | 114,913 | 79,068 |
Reversal | (389,393) | (52,954) | (12,438) |
Ending balance | $ 234,072 | $ 140,335 | $ 78,376 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Products | $ 49,621,935 | $ 53,628,508 |
Packaging materials and others | 272,579 | 54,883 |
Total | $ 49,894,514 | $ 53,683,391 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |||
Inventory write-down | $ 1,194,496 | $ 639,679 | $ 1,211,131 |
Prepayments and Other Current_3
Prepayments and Other Current Assets - Schedule of Prepayments and Other Current Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Prepayment and other current assets | ||
Prepayments for products procurement | $ 11,445,152 | $ 7,645,974 |
Prepayments for service procurement | 2,102,793 | 17,761 |
Prepaid online platform promotion fees | 1,131,082 | 493,418 |
Deposits | 1,531,033 | 1,355,401 |
Loan deposits | 430,034 | 437,114 |
Value-added tax (“VAT”) recoverable | 2,354,309 | 60,369 |
Employee advances | 85,495 | 49,550 |
Rental prepayments | 107,521 | 157,046 |
Sales return assets | 1,802,499 | 639,846 |
Others | 376,344 | 402,931 |
Total | $ 21,366,262 | $ 11,259,410 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,482,847 | $ 1,985,582 |
Less: Accumulated depreciation | (1,053,868) | (509,070) |
Property and equipment, net | 1,428,979 | 1,476,512 |
Warehouse Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 983,218 | 952,104 |
Furniture and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 885,327 | 647,752 |
Leasehold Improvement | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 614,302 | $ 385,726 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 559,063 | $ 185,969 | $ 149,355 |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 31, 2019 |
Lessee Lease Description [Line Items] | |
Operating lease discounted rate | 6.20% |
Maximum | |
Lessee Lease Description [Line Items] | |
Lease term | 2 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expenses (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease cost: | |
Amortization of right-of-use assets | $ 1,529,913 |
Interest of lease liabilities | 106,324 |
Expenses for short-term lease within 12 months | 187,741 |
Total lease cost | $ 1,823,978 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Leases (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash outflows for operating leases | $ 1,494,644 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating lease liabilities | $ 680,773 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Information Related to Leases (Details) | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 1,203,961 |
Operating lease liability, current | (1,052,046) |
Operating lease liabilities, non-current | (69,347) |
Total operating lease liabilities | $ (1,121,393) |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Operating Leases (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating leases, Weighted-average remaining lease term | 1 year 3 days |
Operating leases, Weighted-average discount rate | 6.20% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 1,079,860 |
2021 | 70,080 |
Total undiscounted lease payments | 1,149,939 |
Less: imputed interest | (28,546) |
Total lease liabilities | $ 1,121,393 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 1,698,358 |
2020 | 1,245,774 |
2021 | 70,080 |
Operating leases, Future minimum lease payments | $ 3,014,212 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Cost: | ||
Business license | $ 453,617 | $ 461,086 |
Trademark | 1,388,361 | 1,370,920 |
Software | 737,184 | 518,713 |
Total cost | 2,579,162 | 2,350,719 |
Less: Accumulated amortization | (1,267,509) | (848,488) |
Intangible assets, net | $ 1,311,653 | $ 1,502,231 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Intangible Assets (Parenthetical) (Details) ¥ in Millions | Dec. 16, 2016USD ($) | Dec. 16, 2016CNY (¥) | Apr. 30, 2017USD ($) | Apr. 30, 2017CNY (¥) |
Hangzhou Duoduo Supply Chain Management Co., Limited | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Acquisition of equity interest, cash consideration | $ 295,790 | ¥ 1.9 | ||
Shanghai Jieshi Technology Co.,Limited | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Acquisition of equity interest, cash consideration | $ 100,908 | ¥ 0.7 | ||
Acquisition of equity interest, percentage | 70.00% | 70.00% |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) ¥ in Millions | Dec. 16, 2016USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 30, 2017CNY (¥) | Dec. 16, 2016CNY (¥) | Apr. 30, 2016CNY (¥) |
Finite Lived Intangible Assets [Line Items] | |||||||||
Deferred tax liabilities, net | $ 138,406 | $ 210,076 | |||||||
Intangible assets, net | 1,311,653 | 1,502,231 | |||||||
Amortization costs | $ 437,652 | $ 419,609 | $ 356,473 | ||||||
Trademarks | Shanghai Hengshoutang Health Technology Co., Limited | |||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||
Intangible asset, useful life | 10 years | ||||||||
Intangible assets, net | $ 464,475 | ¥ 3 | |||||||
Hangzhou Duoduo Supply Chain Management Co., Limited | Business License | |||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||
Intangible assets, fair value | $ 394,386 | ¥ 2.6 | |||||||
Intangible asset, useful life | 5 years | ||||||||
Deferred tax liabilities, net | $ 98,596 | ¥ 0.6 | |||||||
Shanghai Jieshi Technology Co.,Limited | |||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||
Business combination, liabilities acquired on fair value | $ 543,505 | ¥ 3.8 | |||||||
Shanghai Jieshi Technology Co.,Limited | Trademarks | |||||||||
Finite Lived Intangible Assets [Line Items] | |||||||||
Intangible assets, fair value | $ 916,879 | 6.4 | |||||||
Intangible asset, useful life | 5 years | ||||||||
Deferred tax liabilities, net | $ 229,220 | 1.6 | |||||||
Intangible assets, net | $ 916,879 | ¥ 6.4 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Future Amortization Expenses (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2020 | $ 478,476 | |
2021 | 454,246 | |
2022 | 186,679 | |
2023 | 117,285 | |
2024 and thereafter | 74,967 | |
Intangible assets, net | $ 1,311,653 | $ 1,502,231 |
Other Non-current Assets - Sche
Other Non-current Assets - Schedule of Other Non-current Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Other Non Current Assets [Line Items] | ||
Other non-current assets | $ 1,538,996 | $ 1,990,266 |
Online Store and Other Deposits | ||
Other Non Current Assets [Line Items] | ||
Other non-current assets | 1,308,858 | 1,167,807 |
Prepayments for Royalty Fee | ||
Other Non Current Assets [Line Items] | ||
Other non-current assets | 218,325 | |
Prepayments For Equipment And Software Procurement | ||
Other Non Current Assets [Line Items] | ||
Other non-current assets | $ 11,813 | 83,199 |
Deferral of Initial Public Offering Costs | ||
Other Non Current Assets [Line Items] | ||
Other non-current assets | 522,072 | |
Rental Prepayments | ||
Other Non Current Assets [Line Items] | ||
Other non-current assets | $ 217,188 |
Other Non-current Assets - Sc_2
Other Non-current Assets - Schedule of Other Non-current Assets (Parenthetical) (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2019 | |
Other Non Current Assets [Line Items] | ||
Minimum royalty fee prepaid | $ 339,215 | |
Sales and Marketing Expenses | ||
Other Non Current Assets [Line Items] | ||
Prepaid royalty fee amortized | $ 96,424 |
Short-term Borrowings - Additio
Short-term Borrowings - Additional Information (Details) | May 06, 2019USD ($) | Mar. 18, 2019USD ($) | Dec. 25, 2018USD ($) | Oct. 31, 2018USD ($) | Oct. 29, 2018USD ($) | Oct. 18, 2018USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019CNY (¥) | May 06, 2019CNY (¥) | Mar. 18, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 25, 2018CNY (¥) | Oct. 31, 2018CNY (¥) | Aug. 31, 2017USD ($) | Aug. 31, 2017CNY (¥) |
Short Term Debt [Line Items] | ||||||||||||||||||||||
Short-term bank borrowings | $ 12,500,392 | $ 23,253,294 | $ 23,253,294 | $ 23,253,294 | $ 23,253,294 | $ 12,500,392 | ||||||||||||||||
Weighted average interest rate | 6.28% | 6.38% | 6.38% | 6.38% | 6.38% | 6.28% | 6.38% | 6.28% | ||||||||||||||
Other borrowings | $ 9,455,757 | $ 11,262,659 | $ 11,262,659 | $ 11,262,659 | $ 11,262,659 | $ 9,455,757 | ||||||||||||||||
Weighted average interest rate | 7.09% | 7.18% | 7.18% | 7.18% | 7.18% | 7.09% | 7.18% | 7.09% | ||||||||||||||
Interest expenses | $ 2,605,167 | $ 978,477 | $ 216,576 | |||||||||||||||||||
Interest Free Loan Agreement | Shanghai Jieshi | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Principle amount | $ 107,129 | ¥ 700,000 | ||||||||||||||||||||
Six Month Loan Agreements | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument maturity period | 6 months | 6 months | ||||||||||||||||||||
Principle amount | $ 5,360,000 | $ 5,360,000 | $ 1,777,989 | $ 1,777,989 | $ 1,777,989 | $ 1,777,989 | ||||||||||||||||
Annual interest rates | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |||||||||||||||||
Six Month Loan Agreements | Accounts Receivable | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Collateral amount | $ 2,214,141 | 2,214,141 | ||||||||||||||||||||
Six Month Loan Agreements | Minimum | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Annual interest rates | 7.00% | 7.00% | 7.00% | |||||||||||||||||||
Six Month Loan Agreements | Maximum | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Annual interest rates | 9.00% | 9.00% | 9.00% | |||||||||||||||||||
One Year Loan Agreement | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument maturity period | 1 year | |||||||||||||||||||||
Principle amount | $ 728,523 | $ 728,523 | ¥ 5,000,000 | |||||||||||||||||||
Annual interest rates | 12.00% | 12.00% | 12.00% | |||||||||||||||||||
One Year Loan Agreements | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument maturity period | 1 year | 1 year | ||||||||||||||||||||
Principle amount | $ 1,618,778 | $ 4,466,687 | $ 4,466,687 | $ 4,466,687 | $ 4,466,687 | $ 1,618,778 | ¥ 11,110,000 | |||||||||||||||
Annual interest rates | 10.90% | 10.90% | 10.90% | 10.90% | 10.90% | 10.90% | 10.90% | 10.90% | ||||||||||||||
One Year Loan Agreements | Accounts Receivable | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Collateral amount | $ 1,798,100 | $ 5,739,895 | $ 5,739,895 | $ 5,739,895 | $ 5,739,895 | $ 1,798,100 | ||||||||||||||||
Three Month Loan Agreement | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument maturity period | 3 months | |||||||||||||||||||||
Principle amount | $ 1,748,456 | ¥ 12,000,000 | ||||||||||||||||||||
Annual interest rates | 18.00% | 18.00% | ||||||||||||||||||||
Four Month Loan Agreements | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument maturity period | 4 months | |||||||||||||||||||||
Principle amount | 205,983 | 205,983 | ||||||||||||||||||||
Annual interest rates | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |||||||||||||||||
Four Month Loan Agreements | Accounts Receivable | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Collateral amount | $ 271,068 | $ 271,068 | ||||||||||||||||||||
Six Month Loan Agreements | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument maturity period | 6 months | |||||||||||||||||||||
Principle amount | $ 4,812,000 | $ 4,812,000 | $ 4,812,000 | $ 4,812,000 | ||||||||||||||||||
Other Bank Borrowings | Guaranteed by the Founders | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Bank borrowings | 716,723 | 716,723 | 716,723 | 716,723 | ¥ 5,000,000 | |||||||||||||||||
Other Bank Borrowings | Guaranteed by One of the Subsidiaries of the Group | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Bank borrowings | 716,723 | 716,723 | 716,723 | 716,723 | 5,000,000 | |||||||||||||||||
Prepayments and Other Current Assets | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Collateral amount | 430,034 | 430,034 | 430,034 | 430,034 | ||||||||||||||||||
Bank borrowings | 1,433,445 | 1,433,445 | 1,433,445 | 1,433,445 | 10,000,000 | |||||||||||||||||
Taipei Fubon Commercial Bank Co. Ltd | Revolving Loan Facility | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Short-term bank borrowings | 14,695,000 | 14,695,000 | 14,695,000 | 14,695,000 | ||||||||||||||||||
Debt instrument, term | 3 years | |||||||||||||||||||||
Aggregate principal amount maximum borrowing capacity | $ 25,000,000 | |||||||||||||||||||||
The Hongkong and Shanghai Banking Corporation Limited | Revolving Loan Facility | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Short-term bank borrowings | 3,983,355 | 3,983,355 | 3,983,355 | 3,983,355 | ||||||||||||||||||
Aggregate principal amount maximum borrowing capacity | $ 4,000,000 | |||||||||||||||||||||
Debt instrument maturity period | 2 years | |||||||||||||||||||||
The Hongkong and Shanghai Banking Corporation Limited | Revolving Loan Facility | Restricted Cash | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Collateral amount | 3,239,987 | 3,239,987 | 3,239,987 | 3,239,987 | ||||||||||||||||||
Bank borrowings | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||||||||||
China Merchants Bank, Shanghai Tianyaoqiao Branch | Revolving Loan Facility | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Short-term bank borrowings | 1,433,445 | 1,433,445 | 1,433,445 | 1,433,445 | 10,000,000 | |||||||||||||||||
Aggregate principal amount maximum borrowing capacity | $ 2,150,168 | ¥ 15,000,000 | ||||||||||||||||||||
Debt instrument maturity period | 1 year | |||||||||||||||||||||
Ningbo Commerce Bank, Shanghai Branch | Revolving Loan Facility | ||||||||||||||||||||||
Short Term Debt [Line Items] | ||||||||||||||||||||||
Short-term bank borrowings | $ 274,603 | $ 274,603 | $ 274,603 | $ 274,603 | ¥ 1,915,688 | |||||||||||||||||
Aggregate principal amount maximum borrowing capacity | $ 286,689 | ¥ 2,000,000 | ||||||||||||||||||||
Debt instrument maturity period | 1 year |
Accrued Labilities and Other Cu
Accrued Labilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Logistics expenses payables | $ 1,103,398 | $ 824,743 |
Deposits from distributors | 312,469 | 292,641 |
Redeemable non-controlling interests acquisition payables (Note 17) | 3,120,583 | |
Business acquisition payables | 43,003 | 43,711 |
Payables for service procurement in connection with service revenue | 2,284,011 | 1,611,123 |
Refund obligation of sales return | 2,422,155 | 858,536 |
Others | 1,231,369 | 663,616 |
Total | $ 10,516,988 | $ 4,294,370 |
Tax Payable - Schedule of Tax P
Tax Payable - Schedule of Tax Payable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Tax Payable [Abstract] | ||
Value added tax liabilities | $ 1,237,365 | $ 1,149,913 |
Income tax payable | 1,698,132 | 1,672,196 |
Urban maintenance and construction tax | 14,160 | 31,324 |
Surtax for education expenses | 7,555 | 13,525 |
Individual income tax withholding | 6,052 | 35,432 |
Others | 79,570 | 4,582 |
Total | $ 3,042,834 | $ 2,906,972 |
Tax Payable - Additional Inform
Tax Payable - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Tax Payable [Line Items] | |
Percentage of value added taxes on revenue from services | 6.00% |
Minimum | |
Tax Payable [Line Items] | |
Percentage of value added taxes on sales revenue from products | 9.00% |
Maximum | |
Tax Payable [Line Items] | |
Percentage of value added taxes on sales revenue from products | 16.00% |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Shares - Additional Information (Details) | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 27, 2018shares | Aug. 31, 2018USD ($)$ / sharesshares | Nov. 30, 2019shares | Aug. 31, 2018USD ($)$ / sharesshares | Apr. 30, 2016USD ($) | Aug. 31, 2015USD ($) | Dec. 31, 2019USD ($)Installmentshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Class Of Stock [Line Items] | ||||||||||||||
Preferred shares convertible, beneficial conversion feature | $ 0 | |||||||||||||
Accretion to redemption value of convertible redeemable preferred shares | 1,022,461 | $ 3,038,407 | $ 3,972,281 | |||||||||||
Temporary equity accretion adjustment to initial carrying amount | 1,022,461 | 3,038,407 | 3,972,281 | |||||||||||
Minimum | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Pre-initial public offering valuation amount to qualify IPO | 600,000,000 | |||||||||||||
Maximum | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Pre-initial public offering valuation amount to qualify IPO | $ 120,000,000 | |||||||||||||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 2.50% | 8.36% | ||||||||||||
Founders | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 8.36% | 8.36% | ||||||||||||
Temporary equity shares carrying value derecognized | $ 19,495,152 | |||||||||||||
Temporary equity increase in preferred stock value | 95 | |||||||||||||
Temporary equity shares fair value | $ 19,495,057 | |||||||||||||
Shanghai ECMOHO Health Technology Co., Limited | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 97.50% | |||||||||||||
NCI Holder | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 2.50% | |||||||||||||
Round A and Round B Investors | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Percentage of put price of original investment amount | 110.00% | |||||||||||||
Percentage of put price of original investment amount plus compound interest | 15.00% | |||||||||||||
Percentage of put price of original investment amount not achieve in public listing before August 2021 | 110.00% | |||||||||||||
Percentage of put price of original investment amount plus compound interest not achieve in public listing before August 2021 | 10.00% | |||||||||||||
Remaining equity method investment ownership percentage of equity interest held in before reorganization | 2.50% | |||||||||||||
Round A Investors | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Capital contribution from investors | $ 13,081,880 | $ 13,081,880 | ||||||||||||
Percentage of exchange equity interests | 19.00% | |||||||||||||
Round A Investors | Founders | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 8.36% | |||||||||||||
Round A Convertible Redeemable Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Percentage of exchange equity interests | 19.00% | |||||||||||||
Temporary equity accretion adjustment to initial carrying amount | 1,018,493 | 1,559,285 | ||||||||||||
Round B Investors | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Capital contribution from investors | $ 24,000,000 | $ 24,000,000 | ||||||||||||
Percentage of exchange equity interests | 12.00% | |||||||||||||
Percentage of liquidation on investment | 150.00% | |||||||||||||
Round B Convertible Redeemable Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Percentage of exchange equity interests | 12.00% | |||||||||||||
Temporary equity accretion adjustment to initial carrying amount | $ 1,574,737 | $ 2,412,996 | ||||||||||||
Class A Ordinary Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Shares issued upon conversion of preferred shares | shares | 20,336,100 | 29,336,099 | 9,519,000 | |||||||||||
Preferred shares, conversion basis | one-for-one basis | |||||||||||||
Preferred shares conversion ratio | 100.00% | |||||||||||||
Class A Ordinary Shares | Average Basis | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Shares issued upon conversion of preferred shares | shares | 8,999,999 | |||||||||||||
Preferred shares, conversion basis | 1-for-1.13 | |||||||||||||
Preferred shares conversion ratio | 113.00% | |||||||||||||
Class A Ordinary Shares | Founders | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | shares | 9,519,000 | |||||||||||||
Shares issued upon conversion of preferred shares | shares | 9,519,000 | |||||||||||||
Class A Ordinary Shares | Third Party Investors | Founders | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | shares | 8,880,894 | |||||||||||||
Class A-1 Ordinary Shares | Round A and Round B Investors | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | shares | 9,519,000 | |||||||||||||
Equity interests with preferential rights. exchanged to shares of preferred stock | shares | 9,519,000 | |||||||||||||
Class A-2 Ordinary Shares | Round A and Round B Investors | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | shares | 10,817,100 | |||||||||||||
Equity interests with preferential rights. exchanged to shares of preferred stock | shares | 10,817,100 | |||||||||||||
Series A Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity stock issued during period shares new issues | shares | 7,938,915 | 7,938,915 | ||||||||||||
Temporary equity, redemption price per share | $ / shares | $ 2.8341 | $ 2.8341 | $ 2.8341 | |||||||||||
Proceeds from issuance of convertible redeemable preferred shares including issuance cost | $ 22,500,000 | $ 22,500,000 | ||||||||||||
Debt issuance costs | $ 70,033 | $ 70,033 | $ 70,033 | |||||||||||
Initial conversion ratio | 1 | |||||||||||||
Preferred shares, dividend rate percentage | 6.00% | |||||||||||||
Preferred stock, liquidation preference percentage | 100.00% | |||||||||||||
Preferred stock shares redemption price annual rate in addition to issuance price | 6.00% | |||||||||||||
Preferred stock shares redemption price, number of monthly installments | Installment | 36 | |||||||||||||
Period to commencement of redemption price | 3 years | |||||||||||||
Shares issued upon conversion of preferred shares | shares | 7,938,915 | |||||||||||||
Conversion of Preferred Shares | shares | 7,938,915 | (7,938,915) | ||||||||||||
Class A-1 and A-2 Ordinary Shares | Qualified Initial Public Offering | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Initial conversion ratio | 1 | |||||||||||||
Class A-2 Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, liquidation preference percentage | 100.00% | |||||||||||||
Preferred stock shares redemption price annual rate in addition to issuance price | 6.00% | |||||||||||||
Preferred stock shares redemption price, number of monthly installments | Installment | 36 | |||||||||||||
Period to commencement of redemption price | 3 years | |||||||||||||
Temporary equity shares fair value | $ 26,172,432 | |||||||||||||
Accumulated deficit | 5,268,188 | |||||||||||||
Temporary equity accretion adjustment to initial carrying amount | 0 | |||||||||||||
Temporary equity subscription receivable | $ 0 | $ 89,222 | ||||||||||||
Conversion of Preferred Shares | shares | 10,817,100 | (10,817,100) | ||||||||||||
Class A-1 Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred stock, liquidation preference percentage | 100.00% | |||||||||||||
Preferred stock shares redemption price annual rate in addition to issuance price | 6.00% | |||||||||||||
Preferred stock shares redemption price, number of monthly installments | Installment | 36 | |||||||||||||
Period to commencement of redemption price | 3 years | |||||||||||||
Temporary equity shares fair value | $ 19,495,152 | |||||||||||||
Accumulated deficit | 8,754,073 | |||||||||||||
Temporary equity accretion adjustment to initial carrying amount | $ 0 | |||||||||||||
Conversion of Preferred Shares | shares | 9,519,000 | (9,519,000) | ||||||||||||
Round A Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity shares carrying value derecognized | $ 8,361,109 | |||||||||||||
Temporary equity accretion adjustment to initial carrying amount | $ 1,018,493 | |||||||||||||
Percentage of extinguishment of shares during reorganization | 8.36% | 8.36% | ||||||||||||
Round A Preferred Shares | Founders | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity shares carrying value derecognized | $ 8,754,168 | |||||||||||||
Temporary equity shares fair value | 19,495,152 | |||||||||||||
Preferred shares fair value measurement difference charged to additional paid in capital | 10,740,984 | |||||||||||||
Round B Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Temporary equity shares carrying value derecognized | 23,284,214 | |||||||||||||
Temporary equity accretion adjustment to initial carrying amount | $ 1,574,737 | |||||||||||||
Class A One Class A Two And Series A Preferred Shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Preferred shares fair value measurement difference charged to additional paid in capital | $ 14,022,261 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Shares - Summary of Preferred Shares Activities (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||||
Accretion on convertible redeemable preferred shares to redemption value - Before Reorganization | $ 1,022,461 | $ 3,038,407 | $ 3,972,281 | |
Issuance of convertible redeemable preferred shares, net of issuance costs | 69,565,189 | 19,495,152 | ||
Round A Preferred Shares | ||||
Class Of Stock [Line Items] | ||||
Balances | $ 16,096,784 | $ 14,537,499 | ||
Balances, shares | 19,038,000 | 19,038,000 | ||
Accretion on convertible redeemable preferred shares to redemption value | $ 1,559,285 | |||
Accretion on convertible redeemable preferred shares to redemption value - Before Reorganization | $ 1,018,493 | |||
Reorganization - Extinguishment of 8.36% Round A preferred shares and exchanged into Class A Ordinary Shares | $ (8,754,168) | |||
Reorganization - Extinguishment of 8.36% Round A preferred shares and exchanged into Class A Ordinary Shares, shares | (9,519,000) | |||
Reorganization - Extinguishment of Round A and Round B preferred shares | $ (8,361,109) | |||
Reorganization - Extinguishment of Round A and Round B preferred shares, shares | (9,519,000) | |||
Balances | $ 16,096,784 | |||
Balances, shares | 19,038,000 | |||
Round B Preferred Shares | ||||
Class Of Stock [Line Items] | ||||
Balances | $ 27,876,810 | $ 25,463,814 | ||
Balances, shares | 13,663,700 | 13,663,700 | ||
Accretion on convertible redeemable preferred shares to redemption value | $ 2,412,996 | |||
Accretion on convertible redeemable preferred shares to redemption value - Before Reorganization | $ 1,574,737 | |||
Reorganization - Preferred shares exchanged into redeemable non-controlling interests (Note 15) | $ (6,167,333) | |||
Reorganization - Preferred shares exchanged into redeemable non-controlling interests, shares | (2,846,600) | |||
Reorganization - Extinguishment of Round A and Round B preferred shares | $ (23,284,214) | |||
Reorganization - Extinguishment of Round A and Round B preferred shares, shares | (10,817,100) | |||
Balances | $ 27,876,810 | |||
Balances, shares | 13,663,700 | |||
Class A-1 Preferred Shares | ||||
Class Of Stock [Line Items] | ||||
Balances | $ 19,495,152 | |||
Balances, shares | 9,519,000 | |||
Accretion on convertible redeemable preferred shares to redemption value - Before Reorganization | $ 0 | |||
Reorganization - Extinguishment of Round A and Round B preferred shares | $ 19,495,152 | |||
Reorganization - Extinguishment of Round A and Round B preferred shares, shares | 9,519,000 | |||
Conversion of preferred shares to Class A ordinary shares | $ (19,495,152) | |||
Conversion of preferred shares to Class A ordinary shares, shares | 9,519,000 | (9,519,000) | ||
Balances | $ 19,495,152 | |||
Balances, shares | 9,519,000 | |||
Class A-2 Preferred Shares | ||||
Class Of Stock [Line Items] | ||||
Balances | $ 26,083,210 | |||
Balances, shares | 10,817,100 | |||
Accretion on convertible redeemable preferred shares to redemption value - Before Reorganization | $ 0 | |||
Reorganization - Extinguishment of Round A and Round B preferred shares | $ 26,172,432 | |||
Reorganization - Extinguishment of Round A and Round B preferred shares, shares | 10,817,100 | |||
Reorganization - Subscription receivables | 89,222 | $ (89,222) | ||
Conversion of preferred shares to Class A ordinary shares | $ (26,172,432) | |||
Conversion of preferred shares to Class A ordinary shares, shares | 10,817,100 | (10,817,100) | ||
Balances | $ 26,083,210 | |||
Balances, shares | 10,817,100 | |||
Series A Preferred Shares | ||||
Class Of Stock [Line Items] | ||||
Balances | $ 22,875,144 | |||
Balances, shares | 7,938,915 | |||
Issuance of convertible redeemable preferred shares, net of issuance costs | $ 22,429,967 | |||
Shares issued upon conversion of preferred shares | 7,938,915 | |||
Accretion on convertible redeemable preferred shares to redemption value - After Reorganization | $ 1,022,461 | $ 445,177 | ||
Conversion of preferred shares to Class A ordinary shares | $ (23,897,605) | |||
Conversion of preferred shares to Class A ordinary shares, shares | 7,938,915 | (7,938,915) | ||
Balances | $ 22,875,144 | |||
Balances, shares | 7,938,915 |
Redeemable Convertible Prefer_5
Redeemable Convertible Preferred Shares - Summary of Preferred Shares Activities (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Round A Preferred Shares | ||
Class Of Stock [Line Items] | ||
Percentage of extinguishment of shares during reorganization | 8.36% | 8.36% |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interests and Non-Controlling Interests - Additional Information (Details) | Jun. 25, 2019USD ($)Installment | Jun. 25, 2019CNY (¥) | Apr. 30, 2020CNY (¥) | Aug. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jul. 31, 2017USD ($) | Jul. 31, 2017CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jun. 25, 2019CNY (¥)Installment | Jul. 31, 2018 | Apr. 30, 2018 | Dec. 31, 2016 |
Minority Interest [Line Items] | ||||||||||||||||||||||
Payment for acquisition of redeemable non-controlling interests | $ 2,215,392 | ¥ 15,230,156 | ||||||||||||||||||||
Redeemable noncontrolling interest carrying amount derecognized | $ 6,678,219 | $ 6,393,530 | ||||||||||||||||||||
Non-controlling interest sold | 595,482 | $ 16,235 | ||||||||||||||||||||
Capital contribution from non-controlling interests shareholders | 29,196 | 104,159 | ||||||||||||||||||||
Contribution from non-controlling interests shareholders | 29,196 | 104,159 | ||||||||||||||||||||
Capital injection from non-controlling interests shareholders | 595,482 | 16,235 | ||||||||||||||||||||
Accumulated Deficit | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Non-controlling interest sold | $ 78,404 | |||||||||||||||||||||
Additional Paid-in Capital | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Non-controlling interest sold | 2,757 | |||||||||||||||||||||
Accrued Liabilities and Other Current Liabilities | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Remaining consideration payable | $ 3,120,583 | ¥ 21,769,811 | ||||||||||||||||||||
Scenario Forecast | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Remaining consideration payable | $ 3,120,583 | |||||||||||||||||||||
Redeemable Non-Controlling Interests | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Additional paid in capital | 1,296,171 | |||||||||||||||||||||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Equity interests percentage | 2.50% | 8.36% | ||||||||||||||||||||
Agreement to acquire equity interest percentage | 2.50% | 2.50% | ||||||||||||||||||||
Payment for acquisition of redeemable non-controlling interests | $ 5,382,048 | ¥ 36,999,967 | ||||||||||||||||||||
Consideration payable with in fifteen days | 2,215,392 | ¥ 15,230,156 | ||||||||||||||||||||
Remaining consideration payable | $ 3,120,583 | ¥ 21,769,811 | ||||||||||||||||||||
Number of equal installments | Installment | 2 | 2 | ||||||||||||||||||||
Annual interest rate on non-controlling shareholders cash consideration payable noncurrent | 8.00% | 8.00% | ||||||||||||||||||||
Round B Investors | Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Equity interests percentage | 2.50% | 2.50% | ||||||||||||||||||||
Shanghai Jieshi Technology Co.,Limited | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Non-controlling ownership Percentage | 70.00% | |||||||||||||||||||||
Acquired non-controlling interest percentage | 10.00% | 10.00% | 30.00% | 30.00% | ||||||||||||||||||
Acquisition of non-controlling interest | $ 1,200,000 | ¥ 170,324 | $ 300,000 | ¥ 48,704 | ||||||||||||||||||
Percentage of non-controlling interest sold | 10.00% | 10.00% | ||||||||||||||||||||
Non-controlling interest sold | $ 16,235 | ¥ 100,000 | ||||||||||||||||||||
Capital contribution from non-controlling interests shareholders | $ 29,196 | ¥ 200,000 | $ 104,159 | ¥ 700,000 | ||||||||||||||||||
Shanghai Jieshi Technology Co.,Limited | Accumulated Deficit | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Acquisition of non-controlling interest | $ (23,993) | |||||||||||||||||||||
Non-controlling interest sold | $ 78,404 | |||||||||||||||||||||
Shanghai Jieshi Technology Co.,Limited | Additional Paid-in Capital | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Acquisition of non-controlling interest | $ (180,784) | |||||||||||||||||||||
Xianggui | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Contribution from non-controlling interests shareholders | 893,223 | ¥ 6,000,000 | ||||||||||||||||||||
Xianggui | Employees | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Capital injection from non-controlling interests shareholders | $ 595,482 | ¥ 4,000,000 | ||||||||||||||||||||
Minority Interest ownership percentage | 40.00% | |||||||||||||||||||||
Xianggui | Founder | Subsequent Event | ||||||||||||||||||||||
Minority Interest [Line Items] | ||||||||||||||||||||||
Percentage of non-controlling interest sold | 60.00% | |||||||||||||||||||||
Non-controlling interest sold | ¥ | ¥ 3,400,000 |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interests and Non-Controlling Interests - Schedule of Change in Carrying Amount of Redeemable Non-Controlling Interests (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | ||
Beginning Balance at January 1, 2018 | $ 6,393,530 | |
Preferred shares exchanged into redeemable non-controlling interests | $ 6,167,333 | |
Net income (loss) attributable to redeemable non-controlling interests | (27,068) | 96,301 |
Accretion to redemption value of redeemable non-controlling interests | 311,757 | 129,896 |
Ending Balance at December 31, 2018 | $ 6,393,530 | |
Acquisition of redeemable non-controlling interests | $ (6,678,219) |
Ordinary Share - Additional Inf
Ordinary Share - Additional Information (Details) - USD ($) | Sep. 30, 2018 | Aug. 31, 2018 | Aug. 02, 2018 | Nov. 30, 2019 | Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2018 |
Class Of Stock [Line Items] | ||||||||
Ordinary shares, authorized amount | $ 50,000 | |||||||
Cash consideration | $ 18,737,426 | |||||||
Consideration received on subscription fee for reorganization purpose | $ 9,261,300 | 6,000,376 | ||||||
Consideration outstanding on subscription fee for reorganization purpose | $ 9,261,300 | |||||||
Treasury stock, shares | 0 | 2,846,600 | ||||||
Ordinary share voting rights | Each holder of outstanding Class A Ordinary Shares shall be entitled to cast the number of votes equal to the number of whole Class A Ordinary Shares held by such holder and each holder of outstanding Class B Ordinary Shares shall be entitled to cast the number of votes equal to ten times the number of whole Class B Ordinary Shares held by such holder. | |||||||
American Depositary Shares ("ADS") | Initial Public Offering | ||||||||
Class Of Stock [Line Items] | ||||||||
Shares issued in IPO | 4,675,000 | |||||||
Net proceeds from IPO | $ 35,000,000 | |||||||
American Depositary Shares ("ADS") | Underwriters' Over Allotment Option | ||||||||
Class Of Stock [Line Items] | ||||||||
Shares issued in IPO | 300,000 | |||||||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||
Class Of Stock [Line Items] | ||||||||
Equity method investment, ownership percentage | 2.50% | 8.36% | ||||||
Founders | ||||||||
Class Of Stock [Line Items] | ||||||||
Treasury stock, shares | 2,846,600 | |||||||
Founders | Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||
Class Of Stock [Line Items] | ||||||||
Equity method investment, ownership percentage | 8.36% | |||||||
Founders | Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||
Class Of Stock [Line Items] | ||||||||
Cash consideration | $ 15,261,676 | |||||||
Class A Ordinary Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock, shares authorized | 4,880,496,457 | 4,880,496,457 | ||||||
Common stock, par value | $ 0.00001 | $ 0.00001 | ||||||
Shares issued upon conversion of preferred shares | 20,336,100 | 29,336,099 | 9,519,000 | |||||
Shares issued in IPO | 18,700,000 | 18,700,000 | ||||||
Preferred shares, conversion basis | one-for-one basis | |||||||
Preferred shares conversion ratio | 100.00% | |||||||
Class A Ordinary Shares | Average Basis | ||||||||
Class Of Stock [Line Items] | ||||||||
Shares issued upon conversion of preferred shares | 8,999,999 | |||||||
Preferred shares, conversion basis | 1-for-1.13 | |||||||
Preferred shares conversion ratio | 113.00% | |||||||
Class A Ordinary Shares | American Depositary Shares ("ADS") | ||||||||
Class Of Stock [Line Items] | ||||||||
Number of ordinary shares representing for each American Depositary shares | 4 | |||||||
Class A Ordinary Shares | Founders | Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||
Class Of Stock [Line Items] | ||||||||
Shares issued upon conversion of preferred shares | 9,519,000 | |||||||
Class A Ordinary Shares | Founders | Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||
Class Of Stock [Line Items] | ||||||||
Temporary equity stock issued during period shares new issues | 9,519,000 | |||||||
Class A Ordinary Shares | Founders | Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | Third Party Investors | ||||||||
Class Of Stock [Line Items] | ||||||||
Temporary equity stock issued during period shares new issues | 8,880,894 | |||||||
Class A-1 Ordinary Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible redeemable preferred shares authorized | 9,519,000 | |||||||
Convertible redeemable preferred shares par value | $ 0.00001 | |||||||
Class A-2 Ordinary Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible redeemable preferred shares authorized | 13,663,700 | |||||||
Convertible redeemable preferred shares par value | $ 0.00001 | |||||||
Class B Ordinary Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock, shares authorized | 75,150,400 | 75,150,400 | ||||||
Common stock, par value | $ 0.00001 | $ 0.00001 | ||||||
Class B Ordinary Shares | Founders | Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||
Class Of Stock [Line Items] | ||||||||
Temporary equity stock issued during period shares new issues | 75,150,400 | |||||||
Series A Preferred Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible redeemable preferred shares authorized | 7,938,915 | |||||||
Convertible redeemable preferred shares par value | $ 0.00001 | |||||||
Ordinary shares, authorized | 21,170,443 | |||||||
Authorized share capital, par value | $ 0.00001 | |||||||
Class A1 Preferred Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible preferred shares | 9,519,000 | |||||||
Class A2 Preferred Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Convertible preferred shares | 10,817,100 | |||||||
Series A Preferred Shares | ||||||||
Class Of Stock [Line Items] | ||||||||
Temporary equity stock issued during period shares new issues | 7,938,915 | 7,938,915 | ||||||
Shares issued upon conversion of preferred shares | 7,938,915 | |||||||
Convertible preferred shares | 7,938,915 | (7,938,915) |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 329,479,916 | $ 199,015,036 | $ 98,237,569 |
Product Sales | |||
Revenues | 273,202,495 | 167,136,099 | |
Product Sales | |||
Revenues | 302,098,523 | 176,097,737 | 95,572,904 |
Product Sales | Consignment Arrangement | |||
Revenues | 28,896,028 | 8,961,638 | |
Services | |||
Revenues | $ 27,381,393 | $ 22,917,299 | $ 2,664,665 |
Revenues - Schedule of Breakdow
Revenues - Schedule of Breakdown of Product Sales Revenue by Product Category (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total net revenues | $ 329,479,916 | $ 199,015,036 | $ 98,237,569 |
Sales Revenue | |||
Total net revenues | 302,098,523 | 176,097,737 | |
Sales Revenue | Health Supplements and Food | |||
Total net revenues | 116,975,344 | 80,317,631 | |
Sales Revenue | Mother and Child Care Products | |||
Total net revenues | 131,926,890 | 69,269,605 | |
Sales Revenue | Personal Care Products | |||
Total net revenues | 24,293,333 | 11,289,494 | |
Sales Revenue | Others | |||
Total net revenues | $ 28,902,946 | $ 15,221,007 |
Finance Expense, Net - Schedule
Finance Expense, Net - Schedule of Finance Expense, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance Expense Net [Abstract] | |||
Interest expense | $ (2,605,167) | $ (978,477) | $ (216,576) |
Interest income | 91,320 | 52,934 | 71,765 |
Total | $ (2,513,847) | $ (925,543) | $ (144,811) |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) | Nov. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation | $ 1,575,029 | $ 356,549 | ||||
Restricted Stock Units (RSUs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted shares, granted | 472,220 | 3,971,453 | ||||
Share-based compensation | $ 1,575,029 | $ 356,549 | $ 0 | |||
Unrecognized compensation expenses | $ 3,785,259 | |||||
Restricted Stock Units (RSUs) | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Period for recognition | 9 months | |||||
Restricted Stock Units (RSUs) | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Period for recognition | 6 years 3 months 7 days | |||||
Restricted Stock Units (RSUs) | IPO | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation | $ 209,764 | |||||
Service Condition | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting period | 4 years | |||||
Stock based compensation, award vesting description | one fourth (1/4) of which vest upon the first anniversary of the stated vesting commencement date and the remaining vest ratably over the following 36 months. | |||||
2018 Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Valid and effective term | 10 years | |||||
2018 Plan | Restricted Stock Units (RSUs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted shares, granted | 3,971,453 | 472,220 | ||||
2018 Plan | Class A Ordinary Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares initially reserved for issuance | 11,386,410 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Activities of Restricted Stock Units (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average Grant Date Fair Value, Outstanding, Beginning balance | $ 1.96 | |
Weighted average Grant Date Fair Value, Granted | 2.64 | $ 1.96 |
Weighted average Grant Date Fair Value, Vested | 1.96 | |
Weighted average Grant Date Fair Value, Forfeited | 2.13 | |
Weighted average Grant Date Fair Value, Outstanding, Ending balance | $ 1.98 | $ 1.96 |
Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Restricted Share Units, Outstanding, Beginning balance | 3,971,453 | |
Number of Restricted Share Units, Granted | 472,220 | 3,971,453 |
Number of Restricted Share Units, Vested | (746,660) | |
Number of Restricted Share Units, Forfeited | (1,033,446) | |
Number of Restricted Share Units, Outstanding, Ending balance | 2,663,567 | 3,971,453 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Fair Value of Each Restricted Share Units Granted With Market Condition (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Expected volatility | 50.00% |
Risk-free interest rate | 4.10% |
Expected dividend yield | 0.00% |
Contractual term | 10 years |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |||
Amount incurred for employee benefits | $ 3,080,729 | $ 1,767,987 | $ 981,149 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | Mar. 16, 2007 | Dec. 31, 2019USD ($) | Dec. 31, 2019HKD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Income Taxes [Line Items] | ||||||
Effective profit tax rate | 11.43% | 11.43% | 6.35% | 2.87% | ||
Net income | $ 1,934,898 | $ 6,149,867 | $ 2,723,638 | |||
Tax loss carryforwards | $ 3,706,113 | 2,030,373 | ||||
Carryforwards period for net operating losses under The EIT law | 5 years | 5 years | ||||
Valuation allowance | $ 3,039,926 | 1,139,566 | $ 2,129,655 | $ 2,788,084 | ||
Domestic | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance | $ 1,413,831 | |||||
Hong Kong Profits Tax | ||||||
Income Taxes [Line Items] | ||||||
Effective profit tax rate | 8.25% | 8.25% | 16.50% | |||
Net income | $ 2 | |||||
Effective profit tax rate for remainder of the taxable income | 16.50% | 16.50% | ||||
PRC Enterprise Income Tax | ||||||
Income Taxes [Line Items] | ||||||
Effective profit tax rate | 25.00% | 25.00% | 25.00% | |||
Income tax effective date | Jan. 1, 2008 | Jan. 1, 2008 | ||||
Withholding income tax rate on dividends distributed by foreign investment enterprise | 10.00% | 10.00% | ||||
Minimum withholding tax rate recognized dividend from FIE | 25.00% | 25.00% | ||||
PRC Enterprise Income Tax | Maximum | ||||||
Income Taxes [Line Items] | ||||||
Withholding tax rate | 5.00% | 5.00% |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation Between Effective Income Tax Rate And PRC Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
PRC statutory income tax rates | 25.00% | 25.00% | 25.00% |
Change in valuation allowance | 86.99% | (15.08%) | (23.48%) |
Effect of permanent differences | 25.70% | 2.55% | 5.78% |
Additional tax deduction for qualified research and development expenses | (10.84%) | (2.68%) | |
Effect of tax holiday* | (115.48%) | ||
Difference in tax rate of subsidiaries outside the PRC | 0.06% | (3.44%) | (4.43%) |
Total | 11.43% | 6.35% | 2.87% |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation Between Effective Income Tax Rate And PRC Statutory Income Tax Rate (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Corporate income tax rate | 50.00% |
Income Taxes - Summary of Curre
Income Taxes - Summary of Current and Deferred Portions of Income Tax Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ 56,898 | $ 1,503,504 | $ 224,668 |
Deferred tax expense/(benefit) | 192,741 | (1,086,380) | (144,092) |
Income tax expense, net | $ 249,639 | $ 417,124 | $ 80,576 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||||
Tax loss carry-forwards | $ 3,706,113 | $ 2,030,373 | ||
Inventory provision | 66,042 | 137,652 | ||
Allowance for doubtful accounts | 46,883 | 24,033 | ||
Unrealized Profit | 6,473 | 3,719 | ||
Other deductible temporary difference | 2,112 | |||
Total deferred tax assets | 3,827,623 | 2,195,777 | ||
Less: Valuation allowance | (3,039,926) | (1,139,566) | $ (2,129,655) | $ (2,788,084) |
Net deferred tax assets | 787,697 | 1,056,211 | ||
Deferred tax liabilities: | ||||
Recognition of intangible assets arising from asset acquisition and business combination | (138,406) | (210,076) | ||
Net deferred tax liabilities | $ (138,406) | $ (210,076) |
Income Taxes - Summary of Movem
Income Taxes - Summary of Movement of Valuation Allowance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 1,139,566 | $ 2,129,655 | $ 2,788,084 |
Current year additions | 2,108,356 | 423,742 | 249,225 |
Reversal of valuation allowances | (207,996) | (1,413,831) | (907,654) |
Ending balance | $ 3,039,926 | $ 1,139,566 | $ 2,129,655 |
Related Party transactions - Tr
Related Party transactions - Transactions and Balances Amount Due to Related Parties (Details) - USD ($) | Jul. 08, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Transaction with related parties | ||||
Repayment of advances to related parties | $ (10,593,662) | $ (2,474,371) | $ (1,033,740) | |
Proceeds of advances from related parties | 9,436,151 | 8,964,847 | 15,304 | |
Proceeds of borrowings from related parties | 4,000,000 | 3,000,000 | 3,000,000 | |
Reimbursement to related parties | 331,956 | 201,907 | 180,152 | |
Balance amount with related parties | ||||
Consideration outstanding on subscription fee for reorganization purpose | 9,261,300 | |||
Payables due to shareholders for Reorganization purpose | (4,261,580) | |||
Founders, Members of Founders Immediate Families and Special Purpose Vehicles Controlled by Founders and Shareholders | ||||
Transaction with related parties | ||||
Repayment of advances to related parties | (10,593,662) | (2,474,371) | (1,033,740) | |
Proceeds of advances from related parties | 9,436,151 | 8,964,847 | 15,304 | |
Balance amount with related parties | ||||
Payable due to related parties | (5,511,642) | (6,756,620) | ||
Investor Subsidiary | Class A-2 (Round B) Preferred Shares | ||||
Transaction with related parties | ||||
Proceeds of borrowings from related parties | 6,000,000 | 3,000,000 | $ 3,000,000 | |
Repayment of borrowings from related parties(iv) | (2,000,000) | |||
Balance amount with related parties | ||||
Borrowings and interests due from related parties (iv) | $ (10,721,819) | (6,405,000) | ||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||
Transaction with related parties | ||||
Acquisition of equity interests of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) | $ (18,737,426) | (18,737,426) | ||
Subscription fees from the Founders of ECMOHO Shanghai for Reorganization purpose (Note 1(b)) | 15,261,676 | |||
Balance amount with related parties | ||||
Consideration outstanding on subscription fee for reorganization purpose | 9,261,300 | |||
Payables due to shareholders for Reorganization purpose | $ (4,261,580) |
Related Party transactions - _2
Related Party transactions - Transactions and Balances Amount Due to Related Parties (Parenthetical) (Details) - USD ($) | Jul. 08, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 26, 2019 | Nov. 12, 2019 | Apr. 11, 2018 | Oct. 17, 2017 | Sep. 18, 2017 |
Related Party Transaction [Line Items] | ||||||||
Consideration received on subscription fee for reorganization purpose | $ 9,261,300 | $ 6,000,376 | ||||||
Consideration outstanding on subscription fee for reorganization purpose | 9,261,300 | |||||||
Consideration settled on acquisition of equity interests for reorganization purpose | 4,261,580 | 14,475,846 | ||||||
Consideration outstanding on acquisition of equity interests for reorganization purpose | 4,261,580 | |||||||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ||||||||
Related Party Transaction [Line Items] | ||||||||
Subscription fee for reorganization purpose | 15,261,676 | |||||||
Consideration outstanding on subscription fee for reorganization purpose | 9,261,300 | |||||||
Consideration on acquisition of equity interests for reorganization purpose | $ 18,737,426 | 18,737,426 | ||||||
Consideration settled on acquisition of equity interests for reorganization purpose | 4,261,580 | 14,475,846 | ||||||
Consideration outstanding on acquisition of equity interests for reorganization purpose | 4,261,580 | |||||||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”) | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity interest, ownership percentage | 97.50% | |||||||
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”) | Class A and Class B Ordinary Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Consideration received on subscription fee for reorganization purpose | 9,261,300 | 6,000,376 | ||||||
Founders, Members of Founders Immediate Families and Special Purpose Vehicles Controlled by Founders and Shareholders | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payables due to related parties | $ 5,511,642 | $ 6,756,620 | ||||||
Investors | Shanghai ECMOHO Health Technology Co., Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Minority Interest ownership percentage | 2.50% | |||||||
Investor Subsidiary | Class A-2 (Round B) Preferred Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principle amount of loan | $ 2,000,000 | $ 3,000,000 | $ 1,500,000 | $ 1,500,000 | ||||
Interest rate of loan | 8.00% | 6.00% | 6.00% | 6.00% | ||||
Investor Subsidiary | Class A Ordinary Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principle amount of loan | $ 2,000,000 | |||||||
Interest rate of loan | 10.00% |
Basic and Diluted Net Earning_3
Basic and Diluted Net Earnings/(Loss) per Share - Schedule of Basic Earnings/(Loss) per Share and Diluted Earnings/(Loss) per Share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||
Net income attributable to ECMOHO Limited | $ 2,296,555 | $ 6,123,990 | $ 2,825,457 |
Less: Accretion on convertible redeemable preferred shares to redemption value | (1,022,461) | (3,038,407) | (3,972,281) |
Less: Accretion to redemption value of redeemable non-controlling interests | (311,757) | (129,896) | |
Less: Extinguishment of convertible redeemable preferred shares | (24,763,245) | ||
Net (loss)/income attributable to ECMOHO Limited’s ordinary shareholders | 962,337 | (21,807,558) | (1,146,824) |
Net income/(loss) attributable to ordinary shareholders-Diluted | $ 962,337 | $ (21,807,558) | $ (1,146,824) |
Denominator: | |||
Denominator for basic (loss)/earnings per share weighted-average ordinary shares outstanding | 98,104,216 | 84,970,000 | 81,162,400 |
Dilutive impact of restricted share units | 547,469 | ||
Denominator for dilutive earnings/(loss) per share weighted-average ordinary shares outstanding | 115,644,864 | 84,970,000 | 81,162,400 |
Basic earnings/(loss) per ordinary share: | $ 0.01 | $ (0.26) | $ (0.01) |
Diluted earnings/(loss) per ordinary share: | $ 0.01 | $ (0.26) | $ (0.01) |
ADS | |||
Denominator: | |||
Denominator for basic (loss)/earnings per share weighted-average ordinary shares outstanding | 24,526,054 | 21,242,500 | 20,290,600 |
Denominator for dilutive earnings/(loss) per share weighted-average ordinary shares outstanding | 28,911,216 | 21,242,500 | 20,290,600 |
Basic earnings/(loss) per ordinary share: | $ 0.04 | $ (1.03) | $ (0.06) |
Diluted earnings/(loss) per ordinary share: | $ 0.03 | $ (1.03) | $ (0.06) |
Class A-1 Convertible Redeemable Preferred Shares | |||
Denominator: | |||
Dilutive impact of preferred shares conversion | 7,954,232 | ||
Class A-2 Convertible Redeemable Preferred Shares | |||
Denominator: | |||
Dilutive impact of preferred shares conversion | 9,038,947 |
Basic and Diluted Net Earning_4
Basic and Diluted Net Earnings/(Loss) per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Basic And Diluted [Line Items] | |||
Weighted average number of shares | 98,104,216 | 84,970,000 | 81,162,400 |
Restricted Stock Units (RSUs) | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Weighted average number of shares | 164,279 | 0 | 0 |
Restricted Stock Units (RSUs) | ADS | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Weighted average number of shares | 41,070 |
Basic and Diluted Net Earning_5
Basic and Diluted Net Earnings/(Loss) per Share - Schedule of Share Equivalent Excluded from Computation of Diluted Net Loss per Ordinary Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Preferred Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average | 6,633,889 | 30,265,462 | 32,701,700 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average | 95,446 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) ¥ in Thousands | Jan. 10, 2019USD ($) | Jan. 10, 2019CNY (¥) | Oct. 31, 2018USD ($) | Oct. 31, 2018CNY (¥) | Jul. 31, 2019USD ($) | Jul. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Dec. 31, 2018USD ($) |
Commitment And Contingencies Disclosure [Line Items] | ||||||||||
Purchase commitments | $ 0 | $ 0 | ||||||||
Capital commitments | $ 0 | $ 0 | ||||||||
Pending Litigation | Joint Venture Partners | ||||||||||
Commitment And Contingencies Disclosure [Line Items] | ||||||||||
Amount of litigation claim on damages against other party | $ 1,050,000 | ¥ 7,190 | ||||||||
Amount of litigation counterclaim on damages by other party | $ 470,000 | ¥ 3,250 | ||||||||
Judicial Ruling | Joint Venture Partners | ||||||||||
Commitment And Contingencies Disclosure [Line Items] | ||||||||||
Amount of damages awarded | $ 470,000 | ¥ 3,250 | ||||||||
Provision made for loss contingency | $ 470,000 | ¥ 3,250 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ¥ in Millions | 1 Months Ended | 12 Months Ended | |||
May 31, 2020USD ($)shares | Apr. 30, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 26, 2019USD ($) | |
Subsequent Event [Line Items] | |||||
Sale of equity interests in a subsidiary to non-controlling interests | $ 595,482 | $ 16,235 | |||
Investor Subsidiary | Class A Ordinary Shares | |||||
Subsequent Event [Line Items] | |||||
Principle amount | $ 2,000,000 | ||||
Subsequent Event | Investor Subsidiary | Class A Ordinary Shares | Loan Agreements | |||||
Subsequent Event [Line Items] | |||||
Principle amount | $ 8,000,000 | ||||
Subsequent Event | Founder | Loan Agreements | |||||
Subsequent Event [Line Items] | |||||
Number of ordinary shares to guarantee the group's payment obligations | shares | 4,000,000 | ||||
Subsequent Event | Founder | Xianggui | |||||
Subsequent Event [Line Items] | |||||
Percentage of non-controlling interest sold | 60.00% | ||||
Sale of equity interests in a subsidiary to non-controlling interests | ¥ | ¥ 3.4 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Details) - VIE - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Net Assets Disclosure [Line Items] | ||
Percentage of transfer of net income after tax to statutory general reserve | 10.00% | |
Percentage of reserve funds that reached registered capital | 50.00% | |
Total restricted net assets | $ 34,626,132 | $ 34,910,244 |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY BALANCE SHEETS (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 49,098,841 | $ 10,336,467 | $ 10,689,462 | |
Total current assets | 172,189,090 | 111,747,188 | ||
Other non-current assets | 1,538,996 | 1,990,266 | ||
Total assets | 178,460,376 | 117,772,408 | ||
Current liabilities | ||||
Accrued expenses and other current liabilities | 10,516,988 | 4,294,370 | ||
Amounts due to related parties | 16,233,461 | 17,423,200 | ||
Total liabilities | 93,769,928 | 75,147,922 | ||
Commitments and contingencies (Note 26) | ||||
Mezzanine equity: | ||||
Redeemable non-controlling interests (redemption amount of US$ 6,993,038 as of December 31, 2018) | $ 6,678,219 | 6,393,530 | ||
Total mezzanine equity | 74,847,036 | |||
Stockholders’ (deficit)/equity: | ||||
Subscription receivables | (9,261,300) | |||
Accumulated other comprehensive loss | (2,264,635) | (1,420,369) | ||
Accumulated deficit | (19,556,137) | (21,852,692) | ||
Total ECMOHO Limited shareholders’ (deficit)/equity | 84,124,893 | (32,533,454) | ||
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity | 178,460,376 | 117,772,408 | ||
Class A-1 Convertible Redeemable Preferred Shares | ||||
Mezzanine equity: | ||||
Convertible Redeemable Preferred Shares | 19,495,152 | |||
Class A-2 Convertible Redeemable Preferred Shares | ||||
Mezzanine equity: | ||||
Convertible Redeemable Preferred Shares | 26,083,210 | |||
Series A Convertible Redeemable Preferred Shares | ||||
Mezzanine equity: | ||||
Convertible Redeemable Preferred Shares | 22,875,144 | |||
Class A Ordinary Shares | ||||
Stockholders’ (deficit)/equity: | ||||
Ordinary Shares | 635 | 155 | ||
Class B Ordinary Shares | ||||
Stockholders’ (deficit)/equity: | ||||
Ordinary Shares | 752 | 752 | ||
ECMOHO LIMITED | ||||
Current assets: | ||||
Cash and cash equivalents | 43,806,283 | 3,941 | ||
Total current assets | 43,806,283 | 3,941 | ||
Investments in subsidiaries, VIEs and VIEs’ subsidiary | 50,520,768 | 42,485,754 | ||
Other non-current assets | 401,109 | |||
Total assets | 94,327,051 | 42,890,804 | ||
Current liabilities | ||||
Accrued expenses and other current liabilities | 6,178,925 | 577,222 | ||
Amounts due to related parties | 4,023,233 | |||
Total liabilities | 10,202,158 | 577,222 | ||
Commitments and contingencies (Note 26) | ||||
Mezzanine equity: | ||||
Redeemable non-controlling interests (redemption amount of US$ 6,993,038 as of December 31, 2018) | 6,393,530 | |||
Total mezzanine equity | 74,847,036 | |||
Stockholders’ (deficit)/equity: | ||||
Additional paid in capital | 105,944,278 | |||
Subscription receivables | (9,261,300) | |||
Accumulated other comprehensive loss | (2,264,635) | (1,420,369) | ||
Accumulated deficit | (19,556,137) | (21,852,692) | ||
Total ECMOHO Limited shareholders’ (deficit)/equity | 84,124,893 | (32,533,454) | ||
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity | 94,327,051 | 42,890,804 | ||
ECMOHO LIMITED | Class A-1 Convertible Redeemable Preferred Shares | ||||
Mezzanine equity: | ||||
Convertible Redeemable Preferred Shares | 19,495,152 | |||
ECMOHO LIMITED | Class A-2 Convertible Redeemable Preferred Shares | ||||
Mezzanine equity: | ||||
Convertible Redeemable Preferred Shares | 26,083,210 | |||
ECMOHO LIMITED | Series A Convertible Redeemable Preferred Shares | ||||
Mezzanine equity: | ||||
Convertible Redeemable Preferred Shares | 22,875,144 | |||
ECMOHO LIMITED | Class A Ordinary Shares | ||||
Stockholders’ (deficit)/equity: | ||||
Ordinary Shares | 635 | 155 | ||
ECMOHO LIMITED | Class B Ordinary Shares | ||||
Stockholders’ (deficit)/equity: | ||||
Ordinary Shares | $ 752 | $ 752 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY BALANCE SHEETS (Parenthetical) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Redeemable non-controlling interests redemption amount | $ 6,993,038 | |
Treasury stock, par value | $ 0.00001 | $ 0.00001 |
Treasury stock, shares | 0 | 2,846,600 |
Class A-1 Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 9,519,000 | |
Convertible redeemable preferred shares issued | 9,519,000 | |
Convertible redeemable preferred shares outstanding | 9,519,000 | |
Convertible redeemable preferred shares redemption amount | $ 7,641,780 | |
Class A-2 Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 13,663,700 | |
Convertible redeemable preferred shares issued | 10,817,100 | |
Convertible redeemable preferred shares outstanding | 10,817,100 | |
Convertible redeemable preferred shares redemption amount | $ 22,011,640 | |
Series A Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 7,938,915 | |
Convertible redeemable preferred shares issued | 7,938,915 | |
Convertible redeemable preferred shares outstanding | 7,938,915 | |
Convertible redeemable preferred shares redemption amount | $ 22,926,600 | |
Class A Ordinary Shares | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 4,880,496,457 | 4,880,496,457 |
Common stock, shares issued | 63,567,099 | 18,377,600 |
Common stock, shares outstanding | 63,567,099 | 15,531,000 |
Class B Ordinary Shares | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 75,150,400 | 75,150,400 |
Common stock, shares issued | 75,150,400 | 75,150,400 |
Common stock, shares outstanding | 75,150,400 | 75,150,400 |
ECMOHO LIMITED | ||
Redeemable non-controlling interests redemption amount | $ 6,993,038 | |
Treasury stock, par value | $ 0.00001 | $ 0.00001 |
Treasury stock, shares | 0 | 2,846,600 |
ECMOHO LIMITED | Class A-1 Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 9,519,000 | |
Convertible redeemable preferred shares issued | 9,519,000 | |
Convertible redeemable preferred shares outstanding | 9,519,000 | |
Convertible redeemable preferred shares redemption amount | $ 7,641,780 | |
ECMOHO LIMITED | Class A-2 Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 13,663,700 | |
Convertible redeemable preferred shares issued | 10,817,100 | |
Convertible redeemable preferred shares outstanding | 10,817,100 | |
Convertible redeemable preferred shares redemption amount | $ 22,011,640 | |
ECMOHO LIMITED | Series A Convertible Redeemable Preferred Shares | ||
Convertible redeemable preferred shares par value | $ 0.00001 | |
Convertible redeemable preferred shares authorized | 7,938,915 | |
Convertible redeemable preferred shares issued | 7,938,915 | |
Convertible redeemable preferred shares outstanding | 7,938,915 | |
Convertible redeemable preferred shares redemption amount | $ 22,926,600 | |
ECMOHO LIMITED | Class A Ordinary Shares | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 4,880,496,457 | 4,880,496,457 |
Common stock, shares issued | 63,567,099 | 18,377,600 |
Common stock, shares outstanding | 63,567,099 | 15,531,000 |
ECMOHO LIMITED | Class B Ordinary Shares | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 75,150,400 | 75,150,400 |
Common stock, shares issued | 75,150,400 | 75,150,400 |
Common stock, shares outstanding | 75,150,400 | 75,150,400 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - STATEMENTS OF COMPREHENSIVE INCOME (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expenses: | |||
General and administrative | $ 8,496,574 | $ 9,068,864 | $ 4,004,065 |
Total operating expenses | (67,432,698) | (51,296,731) | (26,234,352) |
Loss from operations | 4,616,144 | 7,564,843 | 2,879,170 |
Net income attributable to ECMOHO Limited | 2,296,555 | 6,123,990 | 2,825,457 |
Less: Accretion on convertible redeemable preferred shares to redemption value | (1,022,461) | (3,038,407) | (3,972,281) |
Less: Extinguishment of convertible redeemable preferred shares | (24,763,245) | ||
Net (loss)/income attributable to ECMOHO Limited’s ordinary shareholders | 962,337 | (21,807,558) | (1,146,824) |
Net income | 2,296,555 | 6,123,990 | 2,825,457 |
Foreign currency translation adjustment, net of nil tax | (887,407) | (681,407) | 798,988 |
Comprehensive income attributable to ECMOHO Limited | 1,452,289 | 5,453,917 | $ 3,617,602 |
ECMOHO LIMITED | |||
Operating expenses: | |||
General and administrative | (616,906) | (521,616) | |
Total operating expenses | (616,906) | (521,616) | |
Loss from operations | (616,906) | (521,616) | |
Equity in income of subsidiaries and VIEs | 2,601,704 | 6,515,710 | |
Net income attributable to ECMOHO Limited | 1,984,798 | 5,994,094 | |
Less: Extinguishment of convertible redeemable preferred shares | (24,763,245) | ||
Net (loss)/income attributable to ECMOHO Limited’s ordinary shareholders | 962,337 | (21,807,558) | |
Net income | 1,984,798 | 5,994,094 | |
Foreign currency translation adjustment, net of nil tax | (844,266) | (670,073) | |
Comprehensive income attributable to ECMOHO Limited | 1,140,532 | 5,324,021 | |
ECMOHO LIMITED | Round A Convertible Redeemable Preferred Shares | |||
Operating expenses: | |||
Less: Accretion on convertible redeemable preferred shares to redemption value | (1,018,493) | ||
ECMOHO LIMITED | Round B Convertible Redeemable Preferred Shares | |||
Operating expenses: | |||
Less: Accretion on convertible redeemable preferred shares to redemption value | (1,574,737) | ||
ECMOHO LIMITED | Series A Convertible Redeemable Preferred Shares | |||
Operating expenses: | |||
Less: Accretion on convertible redeemable preferred shares to redemption value | $ (1,022,461) | $ (445,177) |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
ECMOHO LIMITED | ||
Accretion to redemption value of redeemable non-controlling interests | $ 311,757 | $ 129,896 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - STATEMENTS OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net cash provided by/(used in) operating activities | $ (14,188,945) | $ (40,755,516) | $ (2,443,857) |
Net cash used in investing activities | (813,007) | (1,747,784) | (508,224) |
Net cash provided by financing activities | 54,337,056 | 44,036,300 | 1,583,214 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 38,134,036 | 2,275,397 | (1,389,346) |
Cash, cash equivalents and restricted cash at beginning of year | 12,964,859 | 10,689,462 | 12,078,808 |
Cash, cash equivalents and restricted cash at end of year | 51,098,895 | 12,964,859 | $ 10,689,462 |
ECMOHO LIMITED | |||
Net cash provided by/(used in) operating activities | (567,446) | (165,067) | |
Net cash used in investing activities | (10,502,538) | (31,816,817) | |
Net cash provided by financing activities | 54,872,326 | 31,985,825 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 43,802,342 | 3,941 | |
Cash, cash equivalents and restricted cash at beginning of year | 3,941 | ||
Cash, cash equivalents and restricted cash at end of year | $ 43,806,283 | $ 3,941 |